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Blue Reform Passes Full House
Thursday, the full House of Representatives
passed the Blue Cross Blue Shield reform legislation, Senate Bills 61
and 62,
without the controversial abortion language that resulted in Governor Snyder’s
veto of the measures last session.
The legislation essentially mirrors the
package from last year 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would lose its tax exempt status, PA 350 would be repealed, and Blue Cross
would no longer have involvement from the Attorney General 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.
The 92-18 approval of the measure sends the
bills back to the Senate for concurrence in the House changes.
House Speaker Jase Bolger (R-Marshall) explained
that an agreement on language regarding the abortion rider had not been
reached; therefore the package moved without the language. Stand-alone bills
have been introduced to require the purchase of the optional rider.
Snyder Choses Viviano for Supreme Court
Michigan Governor Rick Snyder announced this
week that Macomb Chief Circuit Judge David Viviano would be appointed to the
Michigan Supreme Court to replace former Justice Diane Hathaway. Mr. Viviano’s
appointment will give the GOP a 5-2 edge on the State’s highest court.
The appointment will take effect today
(Friday) and Mr. Viviano will be on the bench when the Court returns to session
for arguments March 5th.
Mr. Viviano is a graduate of Hillsdale
College and the University of Michigan Law School. He previously practiced with
Dickinson Wright, served as City Attorney for the City of Center Line, and
comes from a family with two other judges, Mr. Viviano’s sister, Kathy, is also
a Macomb Circuit Judge, as was his father Antonio.
Viviano, 41, will have to run to complete Ms.
Hathaway’s term through 2016. Praise for Governor Snyder’s appointment came
quickly and from many directions, from Michigan Attorney General Bill Schuette,
to current Chief Justice Robert Young, to Macomb County Executive Mark Hackel.
Federal - State Health Insurance Exchange Funding Approved by House
The GOP-controlled Michigan House
of Representatives brought forward enough “yes” votes Thursday, when coupled
with 49 of the same from their Democratic colleagues, to pass the legislation
allocating the federal funding for the federal-state health insurance exchange
under the Affordable Care Act.
House
Bill 4111, sponsored by House Appropriations Chairman Joe Haveman
(R-Holland), ultimately passed 78-31. Thirty Republicans and one Democrat voted
against the measure, which accepts $30.67 million in federal grant money, to
complete the necessary work to build a platform for Michigan residents to
access insurance information.
House Speaker Jase Bolger
(R-Marshall) released a statement explaining that his caucus had done everything
they could to avoid the necessary step of passing this legislation; however,
following President Obama’s re-election and the U.S. Supreme Court upholding
the Affordable Care Act, the Michigan Legislature needed to act.
Sources Say Financial Emergency to be Declared in Detroit Friday - Emergency Manager to Follow
Governor Rick Snyder has scheduled an
announcement for Noon today at the Detroit Public Television offices – and
sources claim it is to formally declare a financial emergency in the City of
Detroit.
While this announcement will set the stage for the appointment of an emergency financial manager, reports indicate that the individual appointment will not be made for at least another week. Under the current statute, the City of Detroit has 10 days to appeal the declaration of a financial emergency.
Last week, Governor Snyder was presented with
the findings of the financial review team that had been dispatched to the City.
The review team’s report recommended the declaration of a financial emergency
and the appointment of an emergency manager. The report outlined a cash deficit
set to hit $100 million by June 30th 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.
Last Week's Survery Results
In
the February 22nd edition of PAAdvisory, readers were asked if they
believe the Legislature would be done with business and depart Lansing by their
unofficial and self-imposed June 1st deadline.
44
percent of readers replied that the Legislature would beat their timeline and
be gone by June 1st, 22 percent believe they’ll hit it right on the
nose and finish business exactly on June 1st, and 33 percent believe
we won’t be so lucky and session will extend past June 1st.
PAAdvisory Briefs
Extension
of Grand Jury Ordered for Schmidt Matter
Ingham County Circuit Judge Rosemarie
Aquilina, the one-person Grand Jury overseeing the criminal investigation of
the election and campaign scandal involving former State Representative Roy
Schmidt, extended the time allotment this week to August 22nd. Also
included in the order were the names of the special prosecutors involved in the
matter: Michael Ferency, former Ingham County assistant prosecutor, and John
Smietanka, twice GOP nominee for Michigan Attorney General in the 1990s and
former U.S. Attorney for Michigan’s Western District.
House
Panel Passes Bottle Return Reform
House Bills 4051
and 4092
passed the House Regulatory Reform Committee this week, moving now to the full
House of Representatives. The legislation, introduced by Representative Kenneth
Kurtz (R-Coldwater), applies the same penalties for attempting to return
non-deposit cans that currently apply to those actually in returning the
non-deposit cans. Attempting to do so is already illegal; however, carries no
penalties. Both bills passed 11-1 with Representative Theresa Abed (D-Grand
Ledge) the lone “nay.”
Polar
Plunge A Hit on Capitol Lawn
Nearly two dozen policymakers, including Lt.
Governor Brian Calley and members of both the House and Senate, took the Polar
Plunge on the Capitol lawn Thursday to raise money and awareness for the Special
Olympics. For pictures and videos, simply search your favorite social media
outlet as traffic is not light.
School
Contract Extensions Raise GOP Eyebrows
Some public school districts and even Wayne
State University have drawn the ire of some GOP legislators for recently
adopting lengthy union contract extensions the Republican lawmakers see as an
end-around the recently approved right-to-work law. The new statute does not
take effect until March 28, 2013, meanwhile the Taylor School District approved
a 10-year contract extension, and Wayne State an 8-year extension. While
noncommittal, lawmakers have indicated that funding levels could be examined
for those not complying with the spirit of the law.
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