House Passes Revenue-Neutral Road Plan

The House passed bills Thursday to remove the sales tax from gasoline over six years, which would reallocate hundreds of millions in funding to roads that would otherwise be granted to schools and local governments. The sales tax would be replaced with an eventual 13.5 percent wholesale tax on gasoline. In light of criticism from Democrats and schools, House Republicans adopted an amendment that would eliminate the new taxation system and reestablish the 6 percent sales tax if the K-12 School Aid budget or funds for municipalities decrease year over year.

Governor Snyder currently supports the bipartisan plan passed by the Senate that would eventually raise the new percentage based gasoline tax to 15.5 percent while leaving the gasoline sales tax in place. Both proposals are projected to lead to $1 billion in additional funding to be put toward the state’s roads. The House, however, is seeking to do so without collecting any new revenue.

HB 4539 would remove the sales tax from gasoline and was passed 56-53 with all Democrats opposed as well as Representatives Bob Genetski (R-Saugatuck), Dave Pagel (R-Berrien Springs), and Paul Muxlow (R-Brown City). The substitute version of the bill would phase out the sales tax by a percentage point each year until it is eliminated in 2021. HB 5477 institutes the new wholesale tax over four years.

Ari Adler, speaking for Speaker Jase Bolger (R-Marshall) noted there were no discussions with Senate leadership on possible changes. Senate Majority Leader Randy Richardville (R-Monroe) said negotiations would be necessary.

posted by PAA Online , Friday, December 5, 2014 2:25 PM
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Truck Weight Changes Rejected By Senate

A proposal to reduce Michigan’s 164,000-pound gross weight limit for trucks to 80,000 pounds was rejected by the Senate on Tuesday. SB 1150 was rejected 15-22, with all Democrats voting to support the bill along with Republican Senators Jack Brandenburg (R-Harrison Township), Patrick Colbeck (R-Canton Township), and Tory Rocca (R-Sterling Heights). Senator Jim Marleau (R-Lake Orion) was absent and did not vote.

Senator Coleman Young II (D-Detroit) argued that truck weight limits resembling those of other states would be a step towards the “shared sacrifice” that Republicans have called for with regard to repairing state roads. Senator Steve Bieda (D-Warren) cited data showing that only five percent of all trucks using Michigan roads carry more than 80,000 pounds.

Senator Tom Casperson (R-Escanaba), who once ran a family log-hauling business, argued that the legislation would be a burden on small businesses and truckers. Senators Roger Kahn (R-Saginaw Township), John Pappageorge (R-Troy), and Mike Green (R-Mayville) opposed the bill as well, arguing the legislation could actually lead to greater damage to the roads due to spreading more weight over fewer axles. Senator Green argued the bill could harm the agriculture industry, a core constituency of his district. Senator Bieda responded by noting that trucks used for agriculture already pay less in truck fees.

Senate Majority Floor Leader Arlan Meekhof (R-West Olive) moved to reconsider the vote which struck down the bill, and then passed the item for the day. Senate Majority Leader Randy Richardville (R-Monroe) said the bill’s defeat did not necessarily mean that it will not be revisited at a later date, but did not say when the Senate would reconsider it or what changes may be made.

posted by PAA Online , 2:25 PM
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Senate Reports Main Street Fairness Bills, MEDC Changes To Floor

The Senate Economic Development Committee reported a pair of bills to the floor that, if passed, would require the sales tax to be added to online purchases made by consumers through retailers with an established location in Michigan. The committee also reported as separate package of bills intended to streamline various Michigan Economic Development Corporation (MEDC) initiatives.

SB 658 and SB 659, commonly referred to as Main Street Fairness bills by proponents, cleared the committee 5-0, with Senator Hansen (R-Hart) and Senator Hildenbrand (R-Lowell) abstaining. Senator Mike Nofs (R- Battle Creek) expressed his apprehension to supporting the bills, but said he would do so in order to see what others in the full Senate thought of the concepts.

The Michigan Municipal League, Michigan Association of Counties, Michigan Townships Association, Michigan Chamber of Commerce, Michigan Retailers Association, and Amway also advocated the passing of the proposed legislation.

The changes made in the substitutes include new language to include a seller who sells “tangible personal property” as well as a provision that presumes a seller to have a nexus in the state if it uses its employees, agents, representatives, or independent contractors to promote sales to purchasers. It also defines sellers as having a nexus if they share management, business systems, business practices, or employees with the seller, or in the case of an affiliated person, engages in intercompany transactions with the seller to establish or maintain the seller’s market. Sellers are also presumed to have a nexus if its total cumulative gross receipts from sales for storage, use, or consumption to purchasers in the state exceeded $50,000 in the past year.

The primary target of the proposed legislation is Amazon, a company that profits heavily from sales within the state. It is not immediately clear if or when the Senate would discuss the bills on the floor.

posted by PAA Online , 2:24 PM
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McLaren Expansion

SB 1073, which would allow McLaren Health Care to build a new hospital near Clarkston, was rejected by a wide margin on Thursday in the Senate. Detractors expected McLaren would abandon operations at its current facility in Pontiac if the bill were passed.

The Certificate of Need Commission previously rejected the proposal, and a court battle aimed at ensuring McLaren’s expansion failed. The Senate adopted a substitute that would require a healthcare facility to maintain at least 100 beds at a current facility before expanding, but the measure was defeated 11-26.

Opponents of the bill argued the bill subverts the Certificate of Need process that other health care providers must go through before expanding. Senate Majority Leader Randy Richardville (R-Monroe) maintains the bill is a necessary change due to the exclusivity of the current law. The Economic Alliance for Michigan, which works with the Friends of Certificate of Need coalition, praised the vote, saying an additional hospital with too few patients would lead to increased costs and financial stress on the local health care industry.

posted by PAA Online , 2:23 PM
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Cobb To Succeed Viventi As Senate Secretary, Hankwitz To Lead SBO

On Monday, the office of Senate Majority Floor Leader Arlan Meekhof (R-West Olive) announced Jeff Cobb will succeed Carol Viventi as the new Senate Secretary in the next term. Mr. Cobb is currently director of floor operations for Senator Meekhof. Jordan Hankwitz, who is currently serving as chief of staff to Senate Majority Leader Randy Richardville (R-Monroe), will take charge of the newly formed Senate Business Office.

The new Senate Business Office will handle the human resources functions of the State Senate, while the Senate Secretary’s office will focus on administrative duties. The office split is one of the first actions Senator Meekhof has made as majority leader-elect. Details pertaining to what secretary’s office could handle are not currently clear according to Senator Meekhof’s office.

Both Mr. Cobb and Mr. Hankwitz worked for former State Senator Gerald Van Woerkom. Mr. Cobb has also worked for former U.S. Rep Jim Ryun. Mr. Hankwtiz worked in the House of Representatives before assuming his current role.

posted by PAA Online , 2:22 PM
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PAAdvisory Briefs

Unemployment Drops in 16 of 17 State Labor Markets

Unemployment rates in all but one of Michigan’s labor markets fell from September to October according to new figures released by the Department of Technology, Management, and Budget. The Detroit-Warren-Livonia market, the largest in the state, remained unchanged at 8.1 percent. The Ann Arbor and Holland-Grand Haven markets tied for the lowest at 4.1 percent, and Wayne County had the highest jobless rate, 9.3 percent.

Peters Announces Top Staff

United States Senator-elect Gary Peters (D-Bloomfield Township) will keep his current chief of staff, Eric Feldman, and has announced Elise Lancaster, his former chief of staff, will be his state director in his Senate office.

MAPSA Advocating Authorizer Shopping Ban, Mandated Closure

The Michigan Association of Public School Academies (MAPSA) is promoting HB 5112, which would require changes to the state’s accountability system from color coding to letter grades. MAPSA is also pushing for a provision that would require schools consistently earning an F grade to shut down. An amendment proposed by Representative David Knezek (D-Dearborn Heights) would require charter schools closed under the aforementioned provision to remain closed, a measure that MAPSA supports.

posted by PAA Online , 2:22 PM
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