2013 Legislative Review

The 2013 legislative session is now competed. With over 277 public acts signed into law, 2013 will be remembered as yet another year of significant changes in Michigan law. Below is a review of some of the significant bills signed into law this year.

Balanced Budget: The State’s budget was balanced and presented months ahead of the constitutional deadline for the third year in a row.

Medicaid Expansion: One of the most significant and impactful new laws enacted in 2013 is Public Act (PA) 107 of 2013, the expansion and reform of Michigan’s Medicaid program. Once Governor Snyder decided to support the expansion of Medicaid to those with incomes up to 133 percent of the federal poverty level, the pressure then turned to the House and Senate for their approval of the program.

Blue Cross Blue Shield of Michigan: Governor Snyder surprised the Legislature in late December 2012 when he vetoed legislation that would have moved Blue Cross Blue Shield of Michigan into the Insurance Code and treated it like other insurers because of unrelated language limiting insurance coverage for abortions. Supporters of the legislation overhauling the Blues' structure moved quickly in 2013.

In March, Governor Snyder signed PA 4 of 2013 and PA 5 of 2013, setting up the Blues' conversion into a nonprofit mutual insurer and the Blues' agreement to put $1.56 billion during the next 18 years into health care efforts overseen by an independent board.

Sales tax on the Difference: Auto, RV, and boat dealers won a major battle they have been fighting for many years: removing the value of a trade-in when determining the sales tax a buyer paid when purchasing a new motor vehicle or boat. That changed with PA 159 of 2013 and PA 160 of 2013 once legislators agreed to extend the period of the phase out to placate Governor Snyder's concerns about the budget ramifications.

Automated Vehicles: Gov. Rick Snyder recently signed legislation allowing the testing of automated motor vehicles on Michigan roadways. The governor called for the measure in his 2013 state of the state address.

Senate Bill 169, sponsored by State Senator Mike Kowall (R-White Lake Township), allows automakers and up fitters to test automated motor vehicles, but requires a human to be in the driver’s seat to monitor performance and intervene if necessary. A companion measure, SB 663, also sponsored by Senator Kowall, protects original manufacturers from civil liability for damages caused by modified autonomous vehicles, unless the defect from which the damages resulted was present in the vehicle when it was manufactured. The bills are now Public Acts 231 and 251 of 2013.

Court of Claims: Legislative Republicans took just 20 days to introduce and then have Governor Rick Snyder sign fundamental changes in how lawsuits against the state are handled in PA 164 of 2013.

Since 1978, the Court of Claims had been housed in the Ingham County Circuit Court, handling all litigation against the state involving more than $1,000. The Ingham Circuit Court also handled non-monetary litigation against the state while other cases against state government took place in circuits across the state.

Beginning November 12, 2013, four judges from the Court of Appeals, selected by the Supreme Court, will function as the Court of Claims and handle any litigation against the state. The Supreme Court took some of the partisan fervor out of the change when they appointed two judges with Democratic backgrounds and two with Republican backgrounds to the new Court of Claims.

Indigent Defense: A multi-year effort to improve how Michigan provides criminal defense attorneys to those too poor to afford one culminated in overwhelming bipartisan support for PA 93 and PA 94 of 2013.

The laws set up a commission to recommend minimum standards on indigent defense, subject to approval by the Supreme Court, which have oversight of local indigent defense systems to ensure compliance. The laws also require the commission to ensure indigent defense counsels have an appropriate workload, in part through the power to set caseload controls and mandate that the state pick up all costs that exceed the counties' current share. Governor Snyder has estimated that cost will be in the millions. The issue brought together conservatives and liberals and even saw a representative of the American Civil Liberties Union of Michigan share the stage with Governor Snyder at the signing ceremony.

Abortion Insurance: Once it became clear that anti-abortion activists and Governor Snyder would not find a suitable compromise on legislation barring insurers from including abortion coverage in traditional medical coverage and instead requiring the purchase of an optional rider, Right to Life began collecting signatures to put the proposal before the Legislature as a voter-initiated act. Under the Constitution, the Governor does not ability to veto a voter-initiated act.

Insurers are revealing little at this point about how they will handle the new law when it takes effect March 14^th of 2014, Meanwhile, activists who support the legal right to an abortion are considering a petition drive to suspend the law and put it up for referendum on the 2014 ballot. They will need to gather more than 161,000 signatures before March 14th.

EpiPens: Legislation mandating the state's public schools possess at least two epinephrine injection devices, known as EpiPens, to aid children who suffer sudden, severe allergic reactions, became a major headline issue during the year. House Bills 4352 and 4353, sponsored by Representative Lisa Posthumus Lyons (R-Alto), are now Public Acts 186 and 187 of 2013 and go into effect March 14, 2014. The measures also requires several reports on the use of EpiPens at schools that will help provide an overall picture statewide of how serious a problem allergic reactions are in schools at a time when most schools no longer have a registered nurse on staff.

Wolf Hunting: In what may be a never-ending voter referendum battle, Michigan did begin its first wolf hunting season this November. The battle began when animal rights activists mobilized to put a law passed in 2012 designating wolves as a game species for hunting on the 2014 ballot. Supporters of hunting wolves counterattacked with legislation enabling the Natural Resources Commission to determine which species can be hunted. The NRC quickly moved to designate wolves as a game species, rendering the referendum moot.

Wolf supporters are gathering signatures to put the new law, PA 21, also on the ballot for referendum. Just in case the second law also gets suspended and put up for referendum, hunting activists are gathering signatures for a voter-initiated act that again lets the NRC designate game species. The act contains an appropriation to immunize it from referendum.

School Dissolution: With two school districts, Buena Vista and Inkster, close to financial collapse, the Legislature and Governor Snyder dissolved both districts with PA 96 of 2013. Both districts were dissolved and the remaining students were sent to neighboring districts.

posted by PAA Online , Friday, January 3, 2014 10:51 AM
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Sweeping Campaign Finance Reform Approved In Time for 2014 Election

Although the major focus of a three-bill package of campaign finance reform was to double the maximum contributions allowed to candidates and political action committees, the Senate Republicans, in one of the most dramatic legislative days of the year, amended it to maintain anonymity for donors to groups running issue ads. These messages are those that praise or bash candidates without explicitly saying to vote for or against them.

Senate Bill 440 (now Public Act 258 of 2013) lowers the threshold for requiring electronic filing of campaign statements by a committee. Under previous law, any committee that spent or received more than $20,000 in one year must report electronically. Senate Bill 440 lowers that threshold to $5,000.

Senate Bill 441 (now Public Act 259 of 2013) permits county clerks to adopt a system of electronic filing, set thresholds for the requirement of electronic filing, and provide for internet disclosure of statements and reports.

Senate Bill 661 (now Public Act 252 of 2013) makes changes to two significant areas – campaign contribution limits and campaign statement filing requirements. With regard to contribution limits, the new law serves to double all limits as follows:

Prior Law	To:
Contribution From	State House Candidate	State Senate Candidate	Statewide Candidate
Period:	2 Years	4 Years	4 Years
Individual	$500	$1,000	$3,400
Independent PAC	$5,000	$10,000	$34,000

New Law Under SB 661	To:
Contribution From	State House Candidate	State Senate Candidate	Statewide Candidate
Period:	2 Years	4 Years	4 Years
Individual	$1,000	$2,000	$6,800
Independent PAC	$10,000	$20,000	$68,000

In addition, prior law provided that an independent PAC could contribute a maximum of $20,000 to a House or Senate political caucus campaign committee. The new statute doubles this contribution as well, to $40,000.

Finally beginning January of 2019, the Secretary of State will be required to adjust the contribution limits to the nearest $25 based on increase or decreases in the Detroit consumer price index (CPI).

With regard to campaign statement filing requirements, the SB 661 increases the frequency of required campaign filings. Prior law required a committee to file a pre-election report by the 11^th day before an election, with a closing day of the 16^th day prior to the election. Prior law also required a committee to file a post-election report within 30 days after the election, with a closing day of the 20^th day after the election. Under the bill, the committee is now also required, in years no election was held for the candidate the committee was supporting or opposing, to file a report on July 25^th, with a closing date of July 20^th, and on October 25^th, with a closing date of October 20^th.

posted by PAA Online , 10:51 AM
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Good News! Senate Fiscal Agency Report Shows Increasing Revenue

The Senate Fiscal Agency released a report showing preliminary final fiscal year 2012-13 General Fund and School Aid Fund combined revenue for the state is $433.5 million above the May 2013 revenue estimating conference numbers, and it also projected the state's economy could grow 3 percent in 2014.

The Michigan Economic Outlook and Budget Review also revised its revenue estimate for the current 2013-14 fiscal year upward by $328 million and the 2014-15 fiscal years by $514 million.

Preliminary numbers for the 2012-13 fiscal year show combined revenue totals of $20.8 billion, up 3.4 percent from 2011-12. The numbers constitute the official SFA forecast that will be part of the January 10, 2014 Consensus Revenue Estimating Conference with the House Fiscal Agency and the Department of Treasury.

"The increase reflects an improving economy, combined with lower-than-expected refunds under the Michigan Business Tax and an additional increase in individual income tax revenue from taxpayers receiving dividends and taking capital gains in anticipation of tax changes associated with the federal 'fiscal cliff" in December 2012," the report says.

Because of the robust revenue coming from the income tax, the General Fund is further ahead of expectations than the School Aid Fund. For the 2012-13 fiscal year that ended September 30, the General Fund was $376 million above the May forecast compared to $57 million above expectations for the School Aid Fund.

The economy is projected to grow more rapidly in the current fiscal year than it did in 2012-13, but the loss of one-time revenue from 2012-13 and increases in business tax credits will offset the potential increase in revenue, the report notes.

posted by PAA Online , 10:50 AM
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Phelps Receives Committee Assignments – Speaker Makes More Changes

Committee assignments for newly elected Representative Phil Phelps (D-Flushing) were announced by House Speaker Jase Bolger (R-Marshall) along with several other committee changes.

Speaker Bolger added two more seats to the House Energy & Technology Committee and the House Health Policy Committee, making them 22-member and 19-member committees, respectively. The House Oversight Committee was increased from six members to eight. Rep. Phelps will sit on all three.

Mr. Bolger also made some other changes to committees, moving some members around based on their schedules and interests. Mr. Bolger said all changes involving Democratic members were done in consultation with House Minority Leader Tim Greimel (D-Auburn Hills).

Mr. Bolger removed Rep. Martin Howrylak (R-Troy) from the House Appropriations Committee and added Rep. Mike Shirkey (R-Clarklake). Mr. Howrylak will now sit on the Energy & Technology Committee, the Health Policy Committee, the Oversight Committee, and the House Judiciary Committee.

Mr. Bolger also removed Rep. Brad Jacobsen (R-Oxford) from the Judiciary Committee and added him to the House Financial Liability Reform Committee. On the Financial Liability Reform Committee, Mr. Shirkey and Rep. Alberta Talabi (D-Detroit) were removed, and Rep. Vicki Barnett (D-Farmington Hills) was added. Ms. Tinsley-Talabi now has just one committee assignment.

House Minority Leader David Rutledge (D-Ypsilanti) was removed from the House Local Government Committee and will be replaced by Rep. Robert Kosowski (D-Westland). Rep. Woodrow Stanley will serve as the minority vice chair.

posted by PAA Online , 10:49 AM
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December 20th Survey Results

In the December 20th edition, PAAdvisory asked what readers believe will be the Legislature’s first significant accomplishment upon their return to session in January.

a. Road/infrastructure funding reform

b. Auto no-fault reform

c. Education reform, i.e. EAA expansion

d. Completion of the 2014/15 fiscal year budget

57 percent of respondents answered “c. education reform.” 29-percent believe the Legislature’s first significant accomplishment will be the 2014/2015 fiscal year budget (d), while another 14-percent believe it will be road/infrastructure funding (a). Readers are not optimistic with regard to auto no-fault reform.

posted by PAA Online , 10:49 AM
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PAAdvisory Briefs

CMS Approves Michigan’s Medicaid Expansion Plan

The federal Centers for Medicare and Medicaid Services late Monday gave its approval of Michigan's Medicaid eligibility expansion plan, meaning the state can move ahead with steps to enroll low-income individuals into the health care program. The approval means the state can now enroll people with incomes of up to 133 percent of the federal poverty level on April 1, 2014, into Medicaid. The program could mean as many as 477,000 people could enroll.

Population Growth for Michigan

After being the only state to lose population from 2000 to 2010, Michigan has now seen its second consecutive year of population growth according to the U.S. Census Bureau. The state saw an estimated population increase of 13,000 from 2012 – 2013. This follows growth of roughly 8,000 from 2011 – 2012.

posted by PAA Online , 10:48 AM
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Question of the Week 1-3-14

posted by PAA Online , 9:54 AM
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