Bipartisan Deal Includes Indexing to Inflation; Activists to Continue Proposal

Governor Snyder signed Senate Bill 934 raising the state’s minimum wage to $9.25 per hour on Tuesday evening. The bill, which required bipartisan support, passed the House 76-34 and the Senate 24-12. SB 934 repeals the current minimum wage law possibly negating the ballot initiative being circulated.

SB 934 was passed with immediate effect and will see the first increase in the minimum wage occur on September 1 of this year when it will rise to $8.15 per hour. The increases will continue to $8.50, $8.90, and $9.25 on January 1 of 2016, 2017, and 2018 respectively. After 2018 the raise in minimum wage is tied to the five-year rolling average of the Consumer Price Index (CPI) for the Midwest done by the U.S. Bureau of Labor Statistics. This increase from the CPI would take place on April 1 of every year and is capped at 3.5%. According to the bill, increases will be stopped if the state unemployment rate reaches 8.5% in the prior year. SB 934 addressed tipped employees as well making their minimum wage 38% of the regular minimum wage.

The passage of this bill was something to celebrate for Democrats as their gubernatorial candidate Mark Schauer had pushed for similar legislation last year. Minority House Leader Tim Greimel (D-Auburn Hills) and Senate Minority Leader Gretchen Whitmer (D-East Lansing) joined in the celebration. Greimel and Whitmer both remarked on how tying the minimum wage to the Consumer Price Index was a victory for minimum wage workers throughout the state.

Republicans had a hard time accepting the bill but viewed it as the only viable option as a ballot initiative garnering support would have raised minimum wage to $10.10 per hour and raised tipped minimum wage to 100% of the regular minimum wage. Representative Tom McMillin (R-Rochester Hills) spoke against the bill on the floor saying, “This legislation treats businesses like they’re the bad guys again.” He was joined in his opposition by 31 other Republicans and 2 Democrats in the House as well as 10 Senate Republicans and 2 Senate Democrats. Senate Majority Leader Randy Richardville (R-Monroe) and Senate Minority Leader Gretchen Whitmer (D-East Lansing) agreed at the Governor’s news conference that the bill was a good example of bipartisanship and the negotiations involved give and take from both sides of the aisle.

Both the Michigan Restaurant Association (MRA) and the Michigan League for Public Policy commented after the passage of the bill. The MRA considered the bill a sensible compromise while the League for Public Policy claimed that the ballot initiative would have been a better approach for Michigan workers and that this bill did not raise the minimum wage to an acceptable level.

posted by PAA Online , Friday, May 30, 2014 10:48 AM
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Land, Peters Make Statements at Mackinac, Spar Over Bailouts

Wednesday at the Mackinac Policy Conference, Democratic U.S. Representative Gary Peters took a jab at his opponent, Republican Terri Land, on her opposition to the bailout of GM and Chrysler. Later, when asked whether or not Ms. Land would have voted for the bailout, Ms. Land failed to directly answer the question, stating that she supports the industry and its employees.

Ms. Land proceeded to praise Governor Snyder’s fiscal responsibility and stated that he needs a partner in Washington, D.C. Ms. Land called for more bipartisanship in D.C., claiming that her experience as Michigan’s Secretary of State alongside a Democratic governor and Democratic majority in the state house make her an ideal candidate to work alongside colleagues on the other side of the aisle. She also emphasized her opposition to the Affordable Care Act, citing 225,000 individuals who lost coverage after its implementation.

In a statement, Congressman Peters touted his own success in battling for the Detroit auto-bailouts. He, like Ms. Land, also called for increased bipartisanship in Congress. When asked about his previous support for cap-and-trade policies, he indicated dealing with climate change is a necessity, and he supports incentivizing current technology in order to reduce carbon emissions.

Congressman Peters also touched on his desire to make Michigan a transportation hub, given our location between Chicago and Toronto. He and Ms. Land both support the New International Trade Crossing, but he went a step further and called for the Detroit-Windsor rail tunnel to be redone. He said he would like to see the tunnel repurposed as a high-speed passenger train route. Congressman Peters noted that he is working with the federal government to secure funds for the customs plaza at the new crossing, stating that he believes the federal government should provide the funding.

posted by PAA Online , 10:47 AM
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96 House Members Co-Sponsor Constitutional Amendment

Under a proposed amendment to the State Constitution, HJR FF, all bills signed into law would take effect 90 days after enactment. The House has previously allowed, under both Democratic and Republican majorities, the presiding officer to grant immediate effect bills on a voice vote. The presiding officer would do so even when it was obvious that 1/3 of the House opposed immediate effect, and the practice was previously upheld by the State Supreme Court. The Legislature could still grant a bill immediate effect under the proposal, but it would require a 2/3 majority roll call vote in both the House and the Senate. This is the process currently used in the Senate.

If there is no effective date in the bill itself, and immediate effect is not imposed, the bill will take effect on the 91st day after enactment. Representative Ed McBroom (R-Vulcan) proposed the measure, which quickly saw other members rush to co-sponsor it. 96 of the other 109 members signed on to co-sponsor McBroom’s amendment. Speaker Bolger has referred the amendment to the House Government Operations Committee, where committee chair Representative Pete Lund (R- Shelby Township) has made no promises on a hearing or a vote.

posted by PAA Online , 10:47 AM
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U.S. Supreme Court Rules Michigan Cannot Sue Bay Mills

A 5-4 ruling by the U.S. Supreme Court dictates that because tribal sovereign immunity was not ended by the federal Indian Gaming Regulatory Act, the state cannot sue the Bay Mills Indian Community over its disputed Vanderbilt casino. The court left open the option of suing an individual tribal official of gambling without a license, rather than suing the tribe itself and stopping the casino. Justice Elena Kagan, who wrote the court’s opinion, was joined by Chief Justice John Roberts, Justice Anthony Kennedy, Justice Sonia Sotomayor, and Justice Stephen Breyer. The Supreme Court remanded the case back to the District Court, where Michigan Attorney General Bill Schuette has vowed to continue the state’s suit.

Aaron Payment, chair of the Sault St. Marie Tribe of Chippewa Indians, said the ruling means that they are within their rights to move forward on a Lansing casino. The decision could make it more difficult for the state to block the casino’s construction. Attorney General Bill Schuette has sought an appeal to the Supreme Court on the U.S. 6th District Court of Appeals’ ruling that the state cannot stop action on a Lansing casino because there was nothing to stop action on.

Bay Mills participated in the 1993 compact with Michigan that reached an agreement on revenue payments and regulations to the state from its first Indian casinos. Bay Mills’ Vanderbilt casino was subjected to an injunction by a federal district court, and the tribe stopped operations on the site. The U.S. Court of Appeals later overturned that ruling. Justice Kagan said tribal nations are domestic sovereign entities with inherent sovereign rights, and state suits cannot diminish those rights as they are strictly under the jurisdiction of the federal government.

posted by PAA Online , 10:46 AM
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Quote of the Week

“From now on I’m watching everything you do with a fine-toothed comb.”

–Senator Harry DeMaso, 1981

posted by PAA Online , 10:45 AM
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PAAdvisory Briefs

Brandenburg to Campaign for Senate Leadership Position

State Senator Jack Brandenburg (R-Harrison Township) has decided to campaign for either Senate Majority Leader or Senate Floor Leader. He plans to support fellow Republicans in competitive districts this summer in order to earn the support of his colleagues. Senate Majority Floor Leader Arlan Meekhof (R-West Olive) is also contending for the Senate’s top spot, and Senator Brandenburg stated that he and Senator Meekhof wished each other luck in the race.

Richardville Calls for $60M Film Incentive

Senate Majority Leader Randy Richardville (R-Monroe) is seeking enough money to incentivize film production in the state and to train under-employed adults in the state to gain experience in the film business. How much money will be allocated is to be discussed among Senate leadership.

House Transportation and Infrastructure Committee

M-1 Rail

The committee approved legislation this week that would allow the Regional Transit Authority to operate the proposed M-1 rail system in Detroit. HB 5168 and HB 5169 would allow the authority’s board to come to a 7-0 unanimous decision to take over the system after July 1, 2024. If the board agrees, the bill also allows the authority to receive all federal grant funds available for the operation.

Driver Education

The committee unanimously approved HB 5438, which would require driver education programs to provide additional time for instruction on being aware of motorcycles and bicycles. The Department of State was neutral on the bill, but raised concerns that additional time spent in one area would take away from other areas unless the Legislature also wanted to extend the course itself.

Governor’s Residence

The committee began discussion on SB 803, which would create a committee to oversee maintenance on the governor’s Lansing residence. Funds currently come out of the budget of the Department of Technology, Management, and Budget on an ad hoc basis. The bill would also provide $200,000 for current projects.

posted by PAA Online , 10:44 AM
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