Detroit Bankruptcy Hearing to Include Snyder Deposition

After negotiating for nearly a half-hour, attorneys for Attorney General Bill Schuette and for the American Federation of State, County and Municipal Employees (AFSCME) reached an agreement Tuesday that will have Governor Rick Snyder answering questions under oath relative to the bankruptcy filing for the City of Detroit.

The agreement entails that the deposition will be limited to three hours. There has been no specific date or time scheduled for the deposition due to Governor Snyder’s current Asian trade mission. The agreement also states that State Treasurer Andy Dillon and one of Snyder’s top aides, Richard Baird, may also be deposed depending on the Governor’s deposition.

Arguments were heard from both sides during the hearing before U.S. Bankruptcy Judge Steven Rhodes, based largely on the question of privilege and relevancy. Ultimately Judge Rhodes, clearly annoyed with the State’s late filing of a motion to quash the union’s request for deposition, decided to give both sides an opportunity to come to an agreement without ruling.

posted by PAA Online , Friday, September 13, 2013 10:50 AM
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“Main Street Fairness” Legislation Moves from Committee

House Bills 4202 and 4203 passed the House Tax Policy Committee this Wednesday on an interesting vote of 9-1 with 5 abstentions – 2 of the abstentions coming from Committee Chair Jeff Farrington (R-Utica) and Democratic Vice Chair Vicki Barnett (D-Farmington Hills).

The yes votes on the two bills came from Republican Representatives Kevin Cotter (R-Mt. Pleasant), Frank Foster (R-Petoskey), Tim Kelly (R-Saginaw), Lisa Posthumus Lyons (R-Alto), Margaret O’Brien (R-Portage), and Amanda Price (R-Park Township), and Democratic Representatives Harold Haugh (R-Roseville), Bill LaVoy (D-Monroe), and Jim Townsend (D-Royal Oak).

Chairman Farrington and Vice Chair Barnett were joined by Representatives Aric Nesbitt (R-Lawton), Pat Somerville (R-New Boston), and Jon Switalski (D-Warren) in abstaining.

The measures propose to require certain online retailers to collect and remit the Michigan 6 percent sales or use tax if they have a presence in the state; however, many feel the issue is a federal one and should be handled by Congress. A bill has passed the U.S. Senate and is awaiting action in the U.S. House, something others believe is highly unlikely to pass, resulting in the need for action at the state level.

“Brick and mortar” retailers essentially face a 6 percent disadvantage over online retailers who do not collect the sales tax – a fact the Department of Treasury backs-up by stating that an estimated roughly $289 million in uncollected sales and use tax for the fiscal year 2013-2014 is due to online sales.

posted by PAA Online , 10:49 AM
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House Reg Reform Hears Testimony on Micro Brewery Reform Legislation

The House Regulatory Reform Committee held a hearing Tuesday on a package of legislation intended to raise limits and expand the operations of Michigan’s craft beer industry.

House Bills 4709, 4710, and 4711, introduced by Representatives Kevin Cotter (R-Mt. Pleasant), Peter MacGregor (R-Cannon Township), and Andy Schor (D-Lansing), respectively, heard support from the Michigan Brewers Guild, the Michigan Restaurant Association, the Michigan Beer & Wine Wholesalers Association and Michigan Alcohol Policy.

The three-bill package proposes to modernize archaic restrictions governing the craft beer industry. HB 4709 would allow a Micro-brewery to grow past the current 30,000 barrel restriction, HB 4710 would allow for a brewpub owner to own a total of six brewpubs, three more than current law allows, and HB 4711 would allow the state’s largest breweries to open/own more than one restaurant.

The Chairman of the panel, Representative Hugh Crawford (R-Novi) intends to move the package upon the introduction of some remaining measures in October.

posted by PAA Online , 10:49 AM
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State’s School Deficit List Grows by Five

In a joint hearing Thursday of the House and Senate K-12, School Aid and Education Appropriations Subcommittees, State Superintendent of Public Instruction Mike Flanagan provided an update to the State’s list of school districts facing budget deficit – adding 5 new districts, and removing one, bring the total to 49.

The state categorizes the districts relative to their deficit situation as follows:

· Category 1: a district that will effectively eliminate its deficit by the end of the school year

· Category 2: a district that will reduce its deficit by the end of the school year

· Category 3: a district projecting an increase to its deficit

· Category 4: a district that begins the year with a positive fund balance but is projecting a year-end deficit

Alpena Public Schools, Beecher Community School District, Atlanta Community Schools, Durand Area Schools, and Lincoln Consolidated Schools were added to the list, all in category 4. South Lake Schools had been listed as a category 4, however, is now projecting no deficit at years-end.

posted by PAA Online , 10:48 AM
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September 6th Trivia Results

PAAdvisory started a new segment by asking a Michigan historical trivia question. Last week’s question was: “Michigan’s first state capital was Detroit. In 1847, the Michigan legislature moved the capital to Lansing in order to be more centrally located. What was in Lansing when the capital was moved there in 1847?”

a. A small town with a railroad depot

b. An Indian village with a ferry across the Grand River

c. A log cabin and a sawmill

62 percent of respondents answered “A small town with a railroad depot.”

33 percent answered “A log cabin and a sawmill.” This is the correct answer.

When the capital was moved to Lansing in 1847, it was literally the middle of the wilderness, consisting of a log cabin and a sawmill.

posted by PAA Online , 10:48 AM
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PAAdvisory Briefs

Smith vs. Tlaib Primary Coming

Earlier this week, State Representative Rashida Tlaib (D-Detroit) confirmed her intentions on running for the State Senate in 2014. The third-term House member will not be able to run for re-election to the House due to term limits and will be taking on incumbent Senator Virgil Smith in the 4^th Senate District, setting the stage for a tough Primary.

Hobbs Receives Endorsement from Granholm

State Representative Rudy Hobbs (D-Southfield) has been endorsed by former Governor Jennifer Granholm in his effort to win the 14^th U.S. House District seat. Representative Hobbs was an advisor to former Lieutenant Governor John Cherry in the Granholm administration and is running for the U.S. House seat being vacated by current U.S. Representative Gary Peters (D-Bloomfield Hills) for his U.S. Senate bid.

Barrett Announces Bid for 71^st State House Seat

Current Michigan Department of Treasury employee Tom Barrett has announced his intentions to run for State Representative in the seat currently held by Representative Theresa Abed (D-Grand Ledge). Barrett is a Western Michigan University graduate and Potterville resident.

posted by PAA Online , 10:47 AM
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Question of the Week 9/13/13

posted by PAA Online , 9:46 AM
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