House Committee Moves Blues Reform Sans Abortion Language

The House Insurance Committee moved the Blue Cross Blue Shield reform legislation Thursday without the controversial abortion language included. Senate Bills 61 and 62 moved to the House floor on 11-0-3 votes, with Representatives Theresa Abed (D-Grand Ledge), Tom Cochran (D-Mason) and Ellen Cogen Lipton (D-Huntington Woods) abstaining.

The legislation essentially mirrors the package from last session and 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, PA 350 would be repeated and the Attorney General would no longer be involved in rate increase requests. Further, the proposal calls for the Blues to pay $1.5 billion over 18 years into an independent nonprofit working towards the overall improvement of the state’s health.

Committee Chairman Representative Pete Lund (R-Shelby Township) has remained consistent in his statement that the abortion language would be added only if an agreement could be reached. Stand-alone bills have been introduced to require the purchase of an optional rider for abortion coverage.

It is yet unclear when the legislation will see action on the House floor.

posted by PAA Online , Friday, February 22, 2013 11:07 AM
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Emergency Manager Close for Detroit

As expected, the state-appointed financial review team for the City of Detroit concluded their work and provided their report to Governor Snyder this week, unanimously recommending an emergency manager be appointed to assume power in the city. The state’s new emergency manager law, Public Act 436 of 2012, takes effect March 28^th and provides enhanced powers to the appointee.

The report’s recommendations for the appointment of an emergency manager are based on the findings of a cash deficit set to hit $100 million by June 30^th of this year, long-term liabilities of more than $14 billion, a 2011-2012 fiscal year budget deficit of more than $325 million and a government structure preventing change.

The report indicated the most striking number was what the city’s overall, cumulative deficit would be had long-term borrowing not been used to conceal annual deficits: $937 million. Further, State Treasurer Andy Dillon and others point not just to spending problems, but extreme variances over estimates of revenues. Other media outlets reported this week that less than half the city’s homeowners pay their property taxes.

The Governor has 30 days to make a decision regarding the findings of the report; however, he has indicated he will be deciding within a week or so.

posted by PAA Online , 11:06 AM
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Liquor Reform Legislation Introduced

State Senator Howard Walker (R-Traverse City) has introduced a lengthy reform bill to change the way the state regulates alcohol delivery. Senate Bill 216 encompasses last year’s recommendations from Governor Rick Snyder’s advisory committee on the issue.

One of the more substantive and controversial provisions in the nearly 150-page bill would allow some microbreweries and smaller wineries to direct ship their product rather than being required to contract with a wholesaler. Senator Walker’s interest in championing the measure comes from the local distilleries, wineries and breweries in his northern Michigan district.

The legislation promises to face what pundits are already predicting may be one of the year’s fiercest legislative battles given the expected opposition of wholesalers.

posted by PAA Online , 11:05 AM
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Bills Go After Out-of-State Returnables

House Bills 4051 and 4092 introduced by Representative Kenneth Kurtz (R-Coldwater) were the topic of a hearing before the House Regulatory Reform Committee this week, although the panel did not vote on the measure.

The legislation, applies the same penalties for “attempting to return” non-deposit cans that currently apply to those who successfully in return the non-deposit cans. Attempting to do so is already illegal; however, carries no penalties.

Committee members spent the hearing discussing the appropriate use of penalties such as fines and jail time, as well as how the law would be enforced and the costs of enforcement. Members representing border districts, such as Representative Kurtz and Representative Ed McBroom (R-Vulcan) describe the issue as often becoming large scale in their districts.

posted by PAA Online , 11:04 AM
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Last Week's Survery Results

In the February 15^th edition of PAAdvisory, readers were asked if they believe the Michigan Democratic Party will elect a new Chairperson (Lon Johnson) at the convention later this month, or will long-time Chair Mark Brewer retain his position:

71 percent think Lon Johnson will prevail and defeat longtime incumbent Chairperson Mark Brewer while 29 percent believe Brewer will hold on to the post.

posted by PAA Online , 11:04 AM
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PAAdvisory Briefs

Olumba Leaves House Democratic Caucus

At a news conference earlier this week, State Representative John Olumba (D-Detroit) announced that he will be leaving the House Democratic Caucus as he feels his constituents are not well represented by the Caucus’ policies. Further, Representative Olumba introduced House Resolution 31, asking the House to recognize the Independent Urban Democracy Caucus. The move leaves the Democrats in a 59-50-1 minority.

Mental Health Boards Created

Governor Snyder announced the creation of two new boards this week, charged with improving the state’s mental health system. The Mental Health and Wellness Commission, formed by Executive Order 2013-6, will have until December 20^th to report recommendations to the Governor regarding overall improvements to mental health care. The Mental Health Diversion Council, formed by Executive Order 2013-7, will focus on providing treatment for those with substance abuse issues without incarceration.

DreamWorks Receives Film Credit

DreamWorks has received a $1.37 million film incentive to film “Need for Speed” in Michigan, as announced by the Michigan Film Office this week. The project carries an expected Michigan expenditure of $5 million, including the hiring of 111 Michigan workers.

Johnson Picking Up More Endorsements

Heading into this weekend’s Democratic Party Convention at Cobo Center in Detroit, Lon Johnson’s challenge of long-time incumbent Party Chair Mark Brewer appears to be picking up steam. More current office holders have come out in support of Johnson, including Lansing Mayor Virg Bernero, and State Representatives Tom Cochran (D-Mason) and Andy Schor (D-Lansing). The race may lie in the hands of the Party’s Rules and Credentials Committee, which is expected to rule on whether nearly 1,400 new members submitted by the United Auto Workers will be allowed to vote. The UAW has endorsed Johnson.

posted by PAA Online , 11:03 AM
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Question of the Week 2/22/2013

posted by PAA Online , 10:44 AM
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