Detroit Bankruptcy Funding Package Sails Through House

In one of the year’s most overwhelmingly bipartisan actions, the House of Representatives passed an 11-bill package Thursday designed to get the City of Detroit out of bankruptcy and help protect pensioners in the process. Following the last vote, members of the House erupted in applause.

The foundation of the package is $194.8 million from the state’s Budget Stabilization Fund toward the “Grand Bargain” which also includes some $365 million from foundations, $100 million from the Detroit Institute of Arts (DIA), and additional funds from unions.

The only truly controversial bill in the package was the first one addressed, House Bill 5571, which prohibits the DIA from renewing the 2012 millage approved in Macomb, Oakland, and Wayne Counties. After several floor speeches in opposition, the measure passed 66-44 with all 59 Republicans joined by 7 Democrats in voting yes.

The other measures varied in ultimate vote totals from 74-36 to a couple passing 105-5, with all votes having both Republicans and Democrats in support.

The Senate will now address the package although the timetable is unknown.

posted by PAA Online , Friday, May 23, 2014 9:45 AM
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Richardville Proposal Calls for Drastic Transportation Funding Reform

As expected, the Senate had plans for the transportation and infrastructure funding reform package sent over by the House two weeks prior – significant plans. Senate Majority Leader Randy Richardville (R-Monroe) unveiled his plan Wednesday to increase the proposed new wholesale gas tax to 15.5 percent by 2018.

House Bill 5477, part of the multi-bill package of which a portion was approved this week by the Senate Infrastructure Modernization Committee, was the only measure changed. The bill repeals current fuel taxes – 15 cents per gallon on diesel and 19 cents per gallon on gasoline – and replaces those taxes with a percentage tax on the wholesale price.

Richardville’s proposed changes to HB 5477 move the percentage wholesale tax from 9.5 percent on January 1, 2015 to 11.5 percent in 2016, 13.5 percent in 2017, and 15.5 percent in 2018. This change would bring the overall package to a point of generating between $600 and $700 million from the start, and $1.4 to $1.5 billion when the percentage reaches its peak in 2018.

While poll after poll has shown that voters are demanding something be done relative to the state’s road conditions, a proposal of this magnitude is likely not to pass either legislative chamber without significant effort. The 15.5 percent wholesale tax, for example, is the equivalent of a roughly 45 cent per gallon tax under the current system.

posted by PAA Online , 9:45 AM
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Both Education Committees Back Testing Move to Treasury

In a move some saw as an attempt to punish the Department of Education, both the House and Senate education committees met Wednesday, as they brought up legislation aimed at moving state standardized testing back to the Department of Treasury. Two Democratic senators voted against Senate Bill 945 in the Senate Education Committee. Senator Coleman Young II (D-Detroit), part of the opposition, argued that the Legislature brought this issue upon itself when they passed the Common Core Standards. In the House Education Committee the Democratic caucus raised concerns regarding the new testing and ultimately refrained from casting their votes.

Many legislators spoke up during debate in the committees, and Representative Lisa Posthumus Lyons (R-Alto) claimed that the Department of Education had been wasting their time rather than coming up with a new test. Concerns about the Smarter Balanced Assessment Consortium (SBAC) becoming the standardized test if testing was not moved to Treasury were aired by Representative Bob Genetski (R-Saugatuck). After discussing Treasury’s possibility of contracting out the test to other companies Senator Bruce Caswell (R-Hillsdale) said that the state would get a test suited for its needs by moving the testing.

Representative Tom McMillin (R-Rochester) was among the opposition and he offered an amendment to House Bill 5581 that would bring standardized testing back to the Department of Education at the start of 2017; however, his amendment only garnered support from the Democrats in committee and was rejected.

While giving testimony on the bill Wendy Larvick, assistant director of the Office of Public and Government Affairs, said that the Department of Education was not contractually obligated to the SBAC and they had just entered a memorandum of understanding. She also disputed the argument that the department was not allowing the House enough access to the testing process.

posted by PAA Online , 9:44 AM
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House Panel OKs Certain Microbrewers to Sell at Farmers Market

The House Regulatory Reform Committee passed a package of bills Tuesday that would allow microbrewers to sell a set number of growlers and give away samples of their beers at farmers markets. House Bills 5426 and 5427 were passed out of committee on a 13-2 vote with opposition coming from both parties.

HB 5427 was altered to put a limit of two per person when selling the growlers at markets. The package would allow one permit for every 1,500 residents of the county to be given to microbrewers, by the Liquor Control Commission, allowing for the tasting and sales at farmers markets. Requirements for the permit include approval from the local police agency and market manager, a $25 permit fee, as well as a $70 inspection fee.

Testifying in opposition to the bill was the Michigan Licensed Beverage Association claiming that passing this legislation would put bars at a disadvantage to the microbrewers. Sponsor of the bill, Representative Andy Schor (D-Lansing), claimed that this bill would not remove patrons from the distribution loop.

HB 4573 which would allow for the quarterly prorating of liquor licensing and transfer fees was taken up by the committee as well. The bill had opposition from the Liquor Control Commission.

posted by PAA Online , 9:43 AM
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House Committee Debates Expanding Renewables

The House Energy and Technology Committee met Tuesday and began discussing legislation that would serve to expand the items considered renewable fuels under Michigan law.

House Bill 5205, sponsored by Committee Chair Aric Nesbitt (R-Lawton), would classify certain waste materials and plastics as renewables if they are converted to generate fuel. Opponents, however, contest that the measure would allow non-renewable materials to be considered renewable.

Proponents of the measure, including the American Chemistry Council and Waste Management, argue the proposal will both reduce the amount of materials that end up on landfills and ultimately reduce energy costs. Further, the legislation would serve to incentivize the building of energy extraction plants.

A substitute of the legislation adopted by the Committee Tuesday amended the list of chemicals considered renewable to remove petroleum coke.

posted by PAA Online , 9:43 AM
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Quote of the Week

“Let’s not be partially hypocritical – let’s go all the way!”

- Senator Billy Huffman, 1976

posted by PAA Online , 9:42 AM
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PAAdvisory Briefs

New Cafeteria in House Office Building Opens

Cora’s Café opened in the House Office Building this Tuesday, bringing a close to a lengthy period of time with no service in the building’s lobby space. The newly opened cafeteria is a training center for blind entrepreneurs. The Michigan Bureau of Services for Blind Persons has set up a training program in the Café for blind people to teach various skills in the food industry. Michigan food producers highlight the menu of the café.

Bentivolio Announces Campaign Manager, Vows Stronger Campaign

After a week of disaster for the campaign of U.S. Representative Kerry Bentivolio (R-Milford) and the departure of former campaign manager David Wilkinson, Barbara Bulic was named the new campaign manager. Bulic was previously the director of constituent services for U.S. Representative Candice Miller (R-Harrison Township). During the announcement the Bentivolio campaign also spoke of his primary opponent David Trott and criticized his endorsements.

Driver Responsibility Fee Phase-Out Clears House

House Bill 5414 and 5501 were passed out of the House of Representatives Wednesday with unanimous support. The bills would phase out driver responsibility fees, which were put in place over 10 years ago in an effort to discourage poor driving by fining people who were unsafe on the roads. The fees were wildly unpopular and even drew an unprecedented online petition encouraging the legislature to repeal the laws.

posted by PAA Online , 9:41 AM
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