96th Legislature Adjourns After Marathon Lame Duck Session

The final gavel was pounded around 4:30AM Friday, December 14, 2013 and, with it, the session of the 96th Michigan Legislature has concluded.

Both the House and Senate adjourned session shortly prior to midnight on Thursday and called the respective chambers back to order shortly after midnight for what would turn out to be the last “day” of session.

Arguably the biggest surprise of the lame duck session came in the form of Senate Bill 810, the U.S. citizenship ballot question legislation previously vetoed by the Governor. The measure, sponsored by Senator Geoff Hansen (R-Hart), differs from the original attempt in that it includes an affirmative statement of citizenship in the signature line rather than a checkbox on the form.

Some initiatives died with the early morning adjournment such as efforts to circumvent the Certificate of Need process enabling McLaren to build a new hospital in Clarkston and the effort to cap catastrophic claims benefits in auto accidents.

posted by PAA Online , Friday, December 14, 2012 11:40 AM
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Personal Property Tax Phase-Out Finalized In Dramatic Fashion

Long the top priority of the Snyder Administration – and championed by Lt. Governor Brian Calley the effort to eliminate the industrial portion of the personal property tax finally won legislative approval near the end of the lame duck session, but with a twist. The entire deal is contingent on voter approval on the August 2014 primary ballot.

Lawmakers from both sides of the aisle had voiced their discomfort with the Administration’s proposal based on complexity and lack of 100% revenue replacement to local units of government – discomfort that had appeared, early in the week, to potentially knock the train off the tracks for approval during lame duck. However, a late alternative proposal initiated by Representative Jeff Farrington (R-Utica) and backed by portions of the business community and manufacturing lobby resulted in even greater discomfort among local units – so much so that it resulted in their ultimate support of the original plan.

The alternative proposal would have simply exempted all industrial personal property purchased after January 1, 2013 from the tax, creating an informal phase-out of the tax. Revenue replacement, however, was not a part of the plan.

The original plan, ultimately passed on close votes ranging from 58-51 to 56-53, is composed of House Bills 6022, 6024, 6025, 6026 and Senate Bills 1065, 1067, 1068, 1069, 1070 and 1071. Industrial personal property tax will be phased-out from 2016 to 2022 with 80 percent revenue replacement going to local governments provided that the lost revenue equates to at least 2.3 percent of the unit’s total property tax revenue. Local governments can also replace 100% of lost revenue to police, fire, ambulance and jail operations through special assessment.

Under the final version of the package, lost revenue to schools would also be replaced; however, through redistribution of use tax dollars. A change in the use tax distribution methods, under HB 6026, requires voter approval and since all bills are tie-barred to HB 6026, in essence the entire plan requires the same approval.

posted by PAA Online , 11:39 AM
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Public/Private Right To Work Measures Final - Signed

Following last week’s action, it seemed inevitable – even in the face of an estimated 12,500 protestors in downtown Lansing – and in the end, it was. After the significant failure of Proposal 12-2 to enshrine the right to collective bargaining in the state’s Constitution, the Legislature acted and Michigan will become the country’s 24^th “Right to Work” state.

Senate Bill 116, now Public Act 348 of 2012, prohibits union membership and fee/dues payment as a condition of employment in the private sector while House Bill 4003, now PA 349, does the same for public workers. The Governor signed the two bills less than an hour after their final passage. Since immediate effect was not achieved on the measures, both will go into effect 90 days after the Legislature adjourns sine die, likely at the end of March.

As expected, the measures exempt police officers and fire workers and contain an appropriation to the Department of Licensing & Regulatory Affairs (LARA) to implement the new statute, thereby making the law referendum-proof upon enactment.

Over 10 thousand protesters converged on Lansing as the legislature moved the measure to the Governor. With hundreds of State Police Troopers in full riot gear, relative calm was maintained given the magnitude of the crowd. Only three arrests were made, all near the Romney Building when protestors reportedly attempted to enter the building.

One of the more publicized incidents occurred when Lansing icon Clint Tarver, everyone’s favorite hot dog guy found vending on the corner of Capitol and Michigan nearly daily, reportedly had some of his catering equipment damaged when a tent collapsed on the Capitol lawn. In the following days, the Capitol community, and observers from around the nation, raised thousands of dollars for Clint to repair the damages.

posted by PAA Online , 11:38 AM
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New Emergency Manager Statute Headed To Governor's Desk

Following the citizen-initiative referendum and resulting repeal of Public Act 4 in November, Michigan reverted to the previously PA 72 for governance of emergency managers appointed to financially-strapped local units. The Snyder Administration believed; however, that stronger measures were still needed and got their wish Thursday.

The House version of Senate Bill 865, introduced by Senator Phil Pavlov (R-St. Clair), was concurred in by the Senate on a mostly party-line vote and will now be presented to the Governor for his expected signature. The measure passed 23-15 with Republican Senators Bruce Caswell (Hillsdale), Mike Kowall (White Lake Township) and Tonya Schuitmaker (Lawton) joining all Democrats in opposition.

The legislation provides failing local units (the measure would not affect school districts) with four options: a consent agreement, an emergency manager, mediation or Chapter 9 bankruptcy.

posted by PAA Online , 11:37 AM
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Lindley To Join PAA January 1

John D. Lindley currently the Vice president of Government Relations & Regulatory Affairs for the Michigan Association of CPAs (MACPA), will be joining the Public Affairs Associates team effective January 1, 2013. John brings a wealth of knowledge in state regulatory, licensing, and taxation issues and will provide immediate value to PAA clients with his expertise in association and organizational management.

Having spent the past eleven years with the 18,000-member MACPA, John brings to PAA tested success in political action committee (PAC) fundraising, strategy development, and grassroots relationship facilitation.

John graduated from James Madison College at Michigan State University and the U.S. Chamber of Commerce Institute for Organizational Management at the University of Wisconsin. He previously worked for the Michigan House of Representatives. John resides in Holt with his wife, Ann Marie and their daughter Abigail. Everyone as PAA is excited to welcome John to the team.

posted by PAA Online , 11:36 AM
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Last Week's Survey Results

The question in last week’s PAAdvisory asked readers who they believed the Democratic nominee to challenge Governor Rick Snyder will be in 2014.

37.5% believe it will be Lansing Mayor Virg Bernero, 25% believe it will be U.S. Representative Gary Peters, 12.5% believe it will be Senate Democratic Leader Gretchen Whitmer, and 25% voted for another candidate.

posted by PAA Online , 11:36 AM
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PAA Government Profiles

District 55

Adam Zemke (D)

Email: zemkeforstaterepresentative@gmail.com

Occupation: Automobile company engineer

Age: 28

Predecessor: Rick Olson (R)

District 67

Tom Cochran (D)

Email: www.votetomcochran.com

Occupation: K-12 School Board Member

Age: 59

Predecessor: Barb Byrum (D)

District 68

Andy Schor (D)

Email: andyschor@gmail.com

Occupation: MML Lobbyist

Age: 37

Predecessor: Joan Bauer (D)

District 69

Sam Singh (D)

Email: votesamsingh@gmail.com

Occupation: Former East Lansing Mayor

Age: 41

Predecessor: Tim Meadows (D)

posted by PAA Online , 11:34 AM
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PAAdvisory Briefs

Municipal Merger Nears

The State Boundary Commission Wednesday voted to support the merger of Saugatuck and Douglas into one city, moving one step closer to the first merger of local governmental units in 20 years. Steve Arwood, Acting Director of the Department of Licensing & Regulatory Affairs (LARA) will now review the merger, followed by a series of public votes.

Red Wings Arena Aid Addressed

Legislation permitting Detroit Downtown Development Authority Funds to be directed to a new downtown arena for the Detroit Red Wings received final passage in the House Thursday – barely. House Bill 5463, introduced by Representative John Walsh (R-Livonia) passed on a narrow 58-49 vote with members of the Democratic Caucus and the Detroit delegation split on the issue – some not voting. The bill now moves to the Governor for consideration.

Detroit Lighting Authority Package Passes

The Senate version of the Detroit Lighting Authority legislation received House approval Thursday, despite opposition from a number of Detroit lawmakers. House Bill 5688 and House Bill 5705 passed 60-49 and 61-48, respectively, and moved onto the Governor’s desk. Senate Bill 970 was also passed, 59-50, and was returned to the Senate for enrollment.

posted by PAA Online , 11:23 AM
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Question of the Week

posted by PAA Online , 10:50 AM
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