PPT Agreement Clears Senate Panel

A 10-bill package that proposes to provide 100 percent reimbursement to local governments for revenue lost as a result of the phasing out of the tax on industrial personal property was introduced Tuesday and unanimously passed by the Senate Finance Committee Wednesday.

Senate Bills 821 through 830 have bipartisan sponsors and co-sponsors, and have yet to receive anything other than the full-throated support of industry groups ranging from those representing local units of government to large manufacturers.

Under current law, local governments that lose an amount of revenue from the personal property tax changes equal to at least 2.3 percent of their total PPT revenues would see 80 percent of those revenues reimbursed. The new proposal provides 100 percent reimbursement for all services as a result of earmarking more use tax revenue than initially enacted. In addition, the state, rather than local government, would conduct essential services assessments. The 2.3 percent threshold is also removed so local governments that would see no reimbursement under the prior proposal will be made whole under the new plan.

Senator Jack Brandenburg, chair of the committee said that he hopes the momentum continues and the Senate takes the bills up next week.

posted by PAA Online , Friday, February 28, 2014 10:47 AM
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Bolger Auto Insurance Plan

Late last week, House Speaker Jase Bolger (R-Marshall) outlined an auto insurance overhaul that would provide 10 percent yearly savings in premiums for two years, a $10 million cap on catastrophic medical benefits, and more transparency within the Michigan Catastrophic Claims Association (MCCA). HB 4612 failed to pass the House last year with a $1 million benefit cap and rate relief of $125 per vehicle for one year. Speaker Bolger insists that he has addressed all of the opposition’s complaints about the previous proposal, though he still expects pushback, saying opponents will find “new excuses” to oppose the bill. The proposed $10 million cap would be 200 times higher than the next highest state, according to Mr. Bolger, but many House Republicans are opposed to any cap on catastrophic benefits. Without Republican support the bill is well short of the 56 votes needed for passage.

Speaker Bolger said the proposed cap would not affect 99.9% of people injured. He also argued that, with efficiencies provided for in the proposal, the cap wouldn’t affect anyone. The efficiencies Speaker Bolger said would save money in the system include guaranteeing payments of 125 percent of worker’s compensation rates if companies pay the claim within 30 days. Mr. Bolger said auto insurance companies will still pay the highest rates at 125 percent.

In addition to the 10 percent savings on premiums for two years, the proposal would create a $25 per-policy charge to eliminate the shortfall from the Health Insurance Claims Assessment (HICA), which raises money for Medicaid. Mr. Bolger said the proposal would save Michiganders $1.5 billion during the two years the rate rollback is guaranteed. A low-cost auto insurance policy also would be created under the proposal for those at or below 133 percent of the poverty line. The low-cost plan would provide a $50,000 limit and would not cover other individuals involved in a car accident.

Mr. Bolger also asserted that he would like to “beef up” enforcement for those who drive uninsured. He said he wanted to propose relief, citing the cyclical factors that keep individuals from being able to afford auto-insurance. He said he is in support of allowing an individual to purchase auto insurance rather than pay fines for driving uninsured.

The proposal would also require the MCCA to post financial data online and operate under requirements similar to the Open Meetings Act and Freedom of Information Act. The MCCA would also directly cover claims from providers instead of the current system where providers bill insurers, who then have to seek reimbursement from the MCCA.

Also included is a fraud authority to investigate and prosecute abuse in the system. The proposal would also continue coverage for “reasonably necessary” treatment, whereas the bill on the House floor included language for “medically necessary treatment. Speaker Bolger’s proposal also would establish what he called reasonable rates for attendant care while still allowing for around-the-clock care.

posted by PAA Online , 10:46 AM
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U.S. Representative John Dingell Retires

The longest serving member in the history of the United States Congress, U.S. Representative John Dingell (D-Dearborn), announced his retirement on Monday. The announcement drew media coverage from across nation, and U.S. President Barack Obama commended Congressman Dingell on his remarkable accomplishments during his 58-plus year tenure. Mr. Dingell has held his current seat since 1955, following the death of his father John Dingell, Sr.

Congressman Dingell supported many historic pieces of legislation throughout his career. He voted for the Civil Rights Act of 1964, Medicare, the Clean Air Act, Safe Drinking Water Act, and was an original author of the Affordable Care Act. His physical mobility has been diminished by age, but he remains a lively individual. He expressed his frustration with the present state of Congress as well as a desire to spend time with his loved ones as reasons behind his decision.

He did not dwell on the past, but looked toward to the future, stating that much more must be done. Crumbling infrastructure, tax reform, and election laws all made his list of things the nation must address. Mr. Dingell’s wife, Debbie Dingell, is the presumed frontrunner to succeed him. State Senator Rebekah Warren (D-Ann Arbor) may also decide to run in what would be a heated primary.

Congressman Dingell received support from members of both parties for his long legislative career. In addition to President Obama, Vice President Joe Biden, Governor Rick Snyder, former Governor Jennifer Granholm, and other state and national legislators all made statements commending the Congressman for his years of service.

posted by PAA Online , 10:46 AM
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House Financial Services Committee Action

The House Financial Services Committee reported HB 5277 to the floor on Wednesday. The bill would require those with a home in foreclosure to notify the lender at least 10 days in advance if they plan on vacating the home during the redemption period. Supporters said the goal of the bill is to give lenders the opportunity to secure the foreclosed property from vandals and metal scrappers.

State Representative Mike Callton (R-Nashville), Chair of the Committee and sponsor of the bill, noted that in the reported version homeowners may notify the lender by certified mail or email. This way a trail is created to prove the notification happened. If a home is damaged or put in a situation that could mean imminent damage, the lender could demand an emergency inspection. The bill also allows the lender regular monthly inspections during the redemption period to ensure the homeowners are not damaging the property.

The committee also began to discuss a package of legislation that would require financial institutions to notify those seeking to open a joint account that anyone named on the account, and possibly their creditors, could have access to the account’s funds.

Rep. Winnie Brinks (D-Grand Rapids), who sponsors the bill, said a person in her district had set up an account with her granddaughter and son with the intention of creating a college fund for her granddaughter. The account was instead attacked on behalf of one of the son’s other children for unpaid child support. She argued that a notice would have alerted her constituent to the possibility. Senior advocacy groups also supported the legislation, saying that it would make seniors aware of the implications of adding family members to accounts.

Representative Jeff Farrington (R-Utica) argued that the bills would not have a wide impact. The bills would only affect state-chartered institutions, which he said represent only about 10 percent of accounts in the state of Michigan. The bills instead, he said, would add to the already lengthy disclosures.

posted by PAA Online , 10:45 AM
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February 21st Trivia Results

In the February 21^st edition, PAAdvisory asked: Michigan has 83 counties. How many touch one of the Great Lakes?

53% of respondents answered correctly with 40. 33% answered 58, and 7% chose 26 and 7% answered 74.

posted by PAA Online , 10:44 AM
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PAAdvisory Briefs

Treasurer Clinton: ‘Main Street Fairness’ An Issue for 2014

In one of his first presentations since succeeding Andy Dillon, Treasurer Kevin Clinton told the House Appropriations General Government Subcommittee that the Department of Treasury wants to look into requiring Internet retailers who conduct business in the state to collect sales tax. House Speaker Jase Bolger (R-Marshall) and others have stated it is an issue for the federal government to deal with because the state passing legislation will only get a fraction of the sales and use taxes not recovered during online sales. A bill requiring all online retailers to collect sales tax has been passed by the US. Senate, but is pending in the U.S. House. The House Fiscal Agency analysis indicated $482.4 million could be uncollected in fiscal year 2013-2014, with 60 percent of that total coming from online sales.

House Appropriations Reports Year-Round Schooling Legislation

The House Appropriations Committee unanimously reported a $2 million pilot program for year-round schooling. The bill, HB 4982, would divide up the current 3-month summer break throughout the entire school year. State Representative Andy Schor (D-Lansing) originally called for a $10 million program, but it was reduced to $2 million to fall in line with Governor Snyder’s State of the State proposal. To qualify for a grant a district must be eligible for free and reduced lunches in the current school year and its school board must adopt a resolution to adopt a year-round calendar in at least one building for three years. Grants of no more than $750,000 will be awarded on a first-come, first-served basis. Districts with at least one school building designated a focus school, and having lower General Fund balances in comparison to total revenue, will be given priority.

Viviano, Zahra Announce Joint Election Campaign

This week, Supreme Court Justices Brian Zahra and David Viviano announced a joint campaign for the Supreme Court election. While they both will pursue the Republican nomination, both men described themselves as rule of law judges. Justice Zahra will run for a full eight-year term and Justice Viviano will run to fill the remainder of the term of former Justice Diane Hathaway. Both men were initially appointed to the bench by Governor Snyder. While it is unclear whom the Democrats will nominate to run against Mr. Viviano for the partial term, Attorney Richard Bernstein is widely expected to seek the Democratic nomination for one of the two full-term seats against Justice Zahra. Kent County Circuit Judge James Redford has said he will seek the other Republican nomination for one of the full-term seats.

Staffer Announces Run in 104^th House District

Long-time Republican staffer Jamie Callahan has announced his intention to run for the 104^th House District. The seat is currently held by State Representative Wayne Schmidt, who cannot seek re-election due to term limits. Mr. Callahan was also the Chief of Staff of former Secretary of State Terri Lynn Land and also the Chief of Staff of former State Senator Jason Allen.

posted by PAA Online , 10:43 AM
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Question of the Week 2/28/2014

posted by PAA Online , 10:18 AM
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