No-Fault Reform Legislation Voted Out of Committee

On Thursday afternoon, the House Insurance Committee reported a bill to reform Michigan's no-fault auto insurance system. Under the provisions of House Bill 4612, medical coverage for catastrophically injured car accident victims would be capped at $1 million after January 1, 2014. The bill would also reduce insurance rates by $125 per vehicle in the first year after the legislation is enacted. Limits were also placed on attendant care and home modifications to accommodate injuries. House Bill 4612 now heads to the full House for consideration.

On a related note, the Michigan Senate Democrats released a statement last week expressing their opposition to the proposed changes to the state’s auto no-fault system. The statement indicated that not one Democratic Senator will vote in support of the reform proposal in its current form.

posted by PAA Online , Friday, May 3, 2013 11:21 AM
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Majority of Michigan Voters Support Medicaid Expansion

A recent survey by Lansing-based EPIC-MRA showed that 60 percent of Michigan voters favor expanding Medicaid to cover individuals with income up to 133 percent of the federal poverty level. Support increases for the expansion when respondents were asked about instituting potential personal responsibility reforms (i.e. co-pays) to the Medicaid program.

The poll also highlighted political differences among respondents. According to the survey, Democrats tend to support Medicaid expansion; whereas, Republicans are likely to oppose it. The survey of 600 voters has a margin error of plus or minus four percentage points.

Gov. Rick Snyder wants to expand Medicaid through the federal Affordable Care Act; however, the Republican-controlled House did not include this provision in its budget plan. Sen. John Moolenaar, chair of the Senate Appropriations Department of Community Health, is working with Senate leadership on the Medicaid expansion issues.

posted by PAA Online , 11:21 AM
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Gary Peters Announces Michigan U.S. Senate Campaign

U.S. Rep. Gary Peters (D-Bloomfield Twp.) recently announced his candidacy to replace Carl Levin (D-Detroit) in the U.S. Senate. Sen. Levin, who has represented Michigan since 1979, announced in March he would not seek a seventh Senate term.

Peters was first elected to Congress in 2008, after beating U.S. Representative Joe Knollenberg. In 2012, his district was eliminated due to redistricting. Peters subsequently switched to the 14^th Congressional District and defeated former U.S. Rep Hansen Clarke in the primary. While in Congress, Peters has served on the House Financial Services Committee and House Small Business Committee. He also served in the Michigan Senate and as the Michigan Lottery Commissioner under Gov. Jennifer Granholm. Peters also unsuccessfully ran for attorney general in 2002.

At this time, the Republican field remains unclear. U.S. Rep. Mike Rogers (R-Brighton), chairman of the U.S. House Intelligence Committee, libertarian-leaning U.S. Rep. Justin Amash (R-Cascade Twp), and former Secretary of State Terri Lynn Land are all considering a bid.

Discussions have also begun on potential Democratic candidates to replace Peters in the 14^th Congressional District. Former U.S. Rep. Hansen Clarke, former state Senator Buzz Thomas, Sen. Vincent Gregory (D-Southfield), Sen. Bert Johnson (D-Highland Park) and House Minority Floor Leader Rudy Hobbs (D-Lathrup Village) are just a few of the individuals who could decide to run for this seat.

posted by PAA Online , 11:20 AM
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House Committee Begins Debate on Internet Sales Tax Collections

The House Tax Policy Committee began debate on a two-bill package that would require internet companies to collect sales tax on items sold to Michigan customers. The Michigan Main Street Fairness Act is co-sponsored by state Reps. Eileen Kowall (R-White Lake) and Jim Ananich (D-Flint).

Under current law, states can only collect sales taxes from retailers that have a physical presence in their state. Michigan residents are required to pay a 6 percent sales tax on online orders through their income tax form, however, many people fail to do so. The Michigan Main Street Fairness Act would require online retailers to collect sales tax or maintain an office, distribution facility, warehouse, storage place or similar place of business in the state to facilitate delivery to the buyer.

During the committee discussion, the House Fiscal Agency indicated that the state would not collect a great deal of revenue unless federal legislation is enacted. The U.S. Senate is considering a proposal to require all Internet companies to collect state and local sales taxes on purchases. In May of 2012, Gov. Snyder indicated his support for the federal Marketplace Fairness Act as a way to level the playing field between brick-and-mortar shops and online retailers.

Meanwhile, the Michigan Department of Treasury indicated the state could potentially lose $491 million in the 2013-14 fiscal year from the lack of sales tax collection on mail-order and the Internet orders. House Tax policy Committee Chairman Rep. Jeff Farrington (R-Utica) indicated the panel could pass the legislation as early as May 15.

posted by PAA Online , 11:20 AM
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House Approves Welfare Drug Testing and Truancy Requirements

On Wednesday, the Michigan House passed legislation allowing drug testing for certain welfare recipients. Under the provisions of the legislation, the Michigan Department of Human Services would establish a screening process for individuals applying for the family independence assistance program. If there is reasonable suspicion that a person is using illegal drugs, the individual would be required to take a test.

If an individual tests positive for an illegal substance the first time, he or she would be referred to a treatment program but would continue receiving benefits. If an individual tests positive a second time or discontinues treatment, benefits would be eliminated. The program would initially start as a pilot project in select counties and expand statewide by 2016. The bills now move to the state Senate for consideration.

Additionally, legislation was passed to require children of welfare recipients to meet attendance requirements determined by each school district. If a child is truant, a family could risk losing their benefits.

posted by PAA Online , 11:19 AM
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Leadership Tension Over House Committee Assignments Eases

On Monday, House Speaker Jase Bolger (R-Marshall) removed eight House Democratic members from committee assignments due to unexcused absences. Speaker Bolger’s decision was in response to House Minority Leader Tim Greimel’s (D-Auburn Hills) request to remove Republican members who left early from a House Insurance Committee meeting on no-fault insurance reform. Bolger also instructed committee chairs to stop granting approved excuses unless the member notified the chair before the meeting commenced.

Democrats were removed from the House Agriculture Committee (Doug Geiss of Taylor and Jim Ananich of Flint); Commerce Committee (Stacy Erwin Oakes of Saginaw); Energy and Technology (Rudy Hobbs of Southfield and Marilyn Lane of Fraser); Criminal Justice (Oakes); Local Government (Woodrow Stanley of Flint); Health Policy (Kate Segal of Battle Creek); and Tax Policy (Rep. Harold Haugh of Roseville).

By the end of the week, tensions appeared to be easing between the House leaders. Five of the committee assignments were reinstated by Wednesday and the remaining members were reinstated on Thursday afternoon. In a prepared statement, Bolger and Greimel both pledged to move forward to address the issues facing the state.

posted by PAA Online , 11:17 AM
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Committee Addresses Adoption Legislation

The House Families, Children and Seniors Committee began testimony last week on a series of bills that would change the state adoption system. The bills would allow a birth mother to consent to adoption outside of the court process, provide a birth mother with 72 hours to rescind her consent, permit the court to finalize the adoption process in three months of placement, and ensure that custody of the child would be placed with the adoptive family or the mother, not the putative father, during the adoption proceedings.

While adoption agencies and attorneys primarily supported the legislation, modifications to the bills were presented to the committee chair, Rep. Ken Kurtz (R-Coldwater). Suggested changes included changing 72 hours to three days, having an advocate for the birth mother present when the paperwork is signed, limiting the birth mother’s right to rescind her consent, among others. Chairman Kurtz will take these changes under advisement before the committee reconvenes discussion on this legislation.

posted by PAA Online , 11:15 AM
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April 26th Survey Results

In the April 26th edition of PAAdvisory, readers were asked if the United States Senate rule requiring 60 votes to end debate on an issue and move a bill to final vote is a good rule or a bad rule.

82 percent of respondents believe the rule is bad, while only 18 percent of respondents like the rule.

posted by PAA Online , 11:14 AM
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PAAdvisory Briefs

Detroit Public Schools Emergency Manager Leaving

Roy Roberts, Detroit Public Schools Emergency Manager, announced he will step down when his contract expires on May 16, 2013. Roberts was appointed by Gov. Rick Snyder in May of 2011 to lead the turnaround of the state’s largest school district. Under his tenure, the district’s deficit was reduced and standardized test scores and graduation rates improved. However, Roberts also endured a contentious legal struggle with the elected school board over academic control of the district. Chief Financial Officer William Aldridge was promoted to chief financial and administrative officer to ensure continuity and stability during the transition period. Gov. Snyder has yet to announce a timeline to replace Roberts.

Immediate Effect Issue Rejected by Michigan Supreme Court

On Thursday, the Michigan Supreme Court rejected an appeal brought by former state House Minority Leader Richard Hammel challenging the Republican majority’s practice of giving legislation immediate effect without taking a record roll call vote. The Ingham County Circuit Court ordered a preliminary injunction; however, the Court of Appeals rejected the lawsuit and stated that taking a voice vote is in compliance with the House rules, which the courts do not oversee. Hammel then appealed the decision to the Supreme Court. The Supreme Court’s unanimous order confirms the Court of Appeals ruling rendered on Aug. 16, 2012.

posted by PAA Online , 11:13 AM
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Question of the Week 5/13/13

posted by PAA Online , 10:36 AM
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