2014 Gubernatorial Election Not For Whitmer

Senate Democratic Leader Gretchen Whitmer (D-East Lansing) announced Wednesday that she will not challenge Governor Rick Snyder in 2014, opening the door to other interested candidates. Sen. Whitmer’s statement explained that she understands the magnitude of the upcoming election and the utmost effort required for victory. Thus, given her desire to do what is best for her daughters, ages 9 and 10, she feels she is not the proper fit to take on such a task. She did not, however, rule out the notion of running for another office and only time will tell what position she may seek.

With Senator Whitmer, certainly the odds-on favorite for the Democratic Party’s nomination, out of the running, three possible candidates have surfaced: former United States Representative Mark Schauer (D-Battle Creek), State Board of Education President John Austin (Ann Arbor) and United States Representative Gary Peters (D-Bloomfield Township).

At this point, more fingers seem to be pointing at former U.S. Rep. Mark Schauer, although some believe his major hurdle may be in his political base which does not include the metropolitan Detroit area. Mr. Austin, on the other hand, is not as experienced in major electoral politics and is not as well-known, which may give him a disadvantage. Finally, U.S. Congressman Gary Peters could take a shot at Mr. Snyder in 2014; however, it may be unlikely given he is positioned to hold his U.S. House of Representatives seat well into the future.

posted by PAA Online , Friday, February 1, 2013 11:01 AM
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Supreme Court Asked to Rule on Constitutionality of Right to Work Law

On Monday, Michigan Governor Rick Snyder filed a request with the Michigan Supreme Court asking for a ruling on the constitutionality of the recently passed right-to-work law.

The well-publicized law was put into place during the recent lame duck session. Mr. Snyder is requesting the Supreme Court to adjudicate on the right-to-work law prior to the end of its term in July. The timeframe is essential to be able to give ample time to allow the upcoming collective bargaining negotiations with state employees to comply with Public Act 349 (right-to-work). The negotiations will start in the upcoming summer months. Mr. Snyder requests the Court to decide whether the law affects state classified employees.

A disagreement exists between Mr. Snyder and members of the Civil Service Commission who believe that, under the Constitution, only they possess the ability to implement right-to-work rules on state classified employees.

Furthermore, Mr. Snyder requested rulings on whether the law (PA 349) violates the Equal Protection Clause of the U.S. Constitution and whether it represents a change of purpose that violates the Michigan Constitution.

The requests from Mr. Snyder come with much opposition from Democrats and unions. Some Democrats believe it shows a clear sign that Governor Snyder wants the case to be heard by the court once he appoints a Justice, a move that will give Republicans a 5-2 majority.

posted by PAA Online , 11:00 AM
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Senate Moves BC/BS Reform - Table Set for House Action

The State Senate approved the new Blue Cross Blue Shield reform package Thursday, without the abortion language that caused the measures’ early January veto by Governor Snyder. The legislation, Senate Bills 61 and 62, passed the Senate on unanimous votes of 36-0 and 37-0, respectively.

The legislation proposes to change the Blues into a nonprofit mutual company and treat it largely like any other insurer in the market. The company would lose its tax exempt status, repeal PA 350, and no longer have involvement from the Attorney General in its rate increase requests. Further, the proposal calls for the Blues to pay $1.5 billion over 18 years into an independent nonprofit, working toward the overall improvement of the state’s health.

Senate Bill 61 was amended twice on the Senate floor – most substantively by Senator Mark Jansen (R-Gaines Township) to ensure the new entity’s board would not include an employee, officer, board member or lobbyist for a health care corporation, insurer provider or third party administrator.

The measure now moves to the House Insurance Committee where Chairman Pete Lund (R-Shelby Township) has promised thorough discussion.

posted by PAA Online , 10:59 AM
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Ongoing Transportation Funding Debate Leads to New Committee

On Wednesday, Senate Appropriations Committee Chairman Roger Kahn (R-Saginaw) stated that Senate Majority Leader Randy Richardville would be forming a new committee to oversee the new legislation that will ultimately become the transportation and infrastructure funding reform package. The package of bills offers a variety of ideas on how to generate more revenue for the state’s infrastructure funding. The package is comprised of multiple Senate Bills (SB 84, SB 85, SB 86, SB 87, and SB 88) and a Senate Joint Resolution that would leave the decision on how to fix the problem up to voters across the state (SJR J).

Each of the Senate Bills presents a different idea on how to generate the $1.2 billion Governor Rick Snyder has called for to use toward road repairs and maintenance.

Sen. Kahn sponsored SB 87, which asks for the current gas tax (19 cents) to be relocated in a range between 37 cents and 50 cents. SB 87 may eventually include a proposal to adjust the current fuel tax to be based on a percentage of the wholesale price; however, this percentage has not yet been decided.

In related news, members of the House Committee on Transportation and Infrastructure, Chaired by Representative Wayne Schmidt (R-Traverse City) have indicated their openness and flexibility in finding a solution.

posted by PAA Online , 10:58 AM
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GOP House Caucus Campaign Committee Positions Set

The Chair of the House Republican Campaign Committee was set on Monday to be Representative Aric Nestbitt (Lawton). Representative Mike Shirkey (Jackson) and Representative Frank Foster (Petoskey) will co-Chair the Finance Committee.

Rep. Tom Leonard (DeWitt Township) and Rep. Al Pscholka (Stevenson) will co-Chair Recruitment on the Campaign Committee. More members of this committee include: Rep. Kevin Cotter (Mt. Pleasant), Rep. Brad Jacobsen (Oxford), Rep. Amanda Price (Park Township), Rep. Jeff Farrington (Utica) and Rep. Pete Lund (Shelby Township) as Chair Emeritus.

Rep. Mike Callton (Nashville) will serve as fundraising chair for the Finance Committee. Others on the Finance Committee include Rep. Lisa Posthumus-Lyons (Alto), Rep. Gail Haines (Waterford), Rep. Mike McCready (Bloomfield Hills), and Rep. Klint Kesto (Commerce Township). The co-Chairs of the Finance Committee are Rep. John Walsh (Livonia) and Rep. Joe Haveman (Holland).

posted by PAA Online , 10:57 AM
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PAAdvisory Briefs

Arwood Named LARA Director

Michigan Governor Rick Snyder named Steve Arwood as the new Director of the Department of Licensing and Regulatory Affairs (LARA) Thursday. Mr. Arwood had been serving as acting director since Steve Hilfinger departed to become Chief Operating Officer of the Michigan Economic Development Corporation (MEDC). Arwood had previously served as Director of the Unemployment Insurance Agency (UIA) and Deputy Director of LARA.

Former Justice Hathaway Pleads Guilty

Tuesday in Ann Arbor, former Michigan Supreme Court Justice Diane Hathaway pleaded guilty to bank fraud before a U.S. District Court Judge. The federal charge has her facing up to 18 months in prison, fines amounting to $30,000 and restitution of $90,000. She will be sentenced in May and could see all federal civil cases against her dropped if she pays all restitution.

Value of a Trade-In to be Exempt from Sales/Use Tax

Senate Bill 89 and Senate Bill 90 were unanimously reported from the Senate Finance Committee on Wednesday. The two bills introduce a 10-year phase out process that would exclude, from sales and use tax, the value of a trade-in on a new or used motor vehicle, watercraft, or recreational vehicle. Beginning June 1, 2013 exactly 10 percent of the agreed upon value will be exempt from taxation with the exemption amount increasing by 10 percent each year for 10 years. Senator Dave Robertson (R-Grand Blanc) is the sponsor of the legislation.

posted by PAA Online , 10:50 AM
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Question of the Week 2-1-13

posted by PAA Online , 10:33 AM
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