Road Funding Plan To See Conference Committees

Following a decision after a meeting of the Legislative Quadrant and Governor Snyder, House and Senate leaders have decided to form a conference committee in order to come to a compromise concerning additional road funding. Three road funding bills were sent to conference committees on Thursday.

HB 5477 would convert the state’s gasoline tax to a percentage-based tax of the wholesale price. The other bills include HB 4539, which would eliminate the sales tax on gasoline, and HB 4630, which deals with registration fees. Sending the bills to conference committee allows for the legislature to show signs of progress, while at the same time ensuring the bill that leaves the committee cannot be amended after they reach the floor.

The Senate plan would gradually increase the gasoline tax to 15.5 percent on the wholesale price, which would lead to more than double the revenue generated by the current 19 cents per gallon tax on gasoline and 15 cents per gallon tax on diesel. The House plan would phase in an increase to 13.5 percent over six years, but would phase out the 6 percent sales tax on gasoline over the same period, a revenue neutral change. The House plan is viewed as contentious due to the fact that it reapportions revenue that would normally go to K-12 schools and local governments.

Senate Majority Leader Randy Richardville (R-Monroe) named Senate Majority Floor Leader Arlan Meekhof (R-West Olive) the Senate chair of the conference committee on HB 5477, with Senator Mike Kowall (R-White Lake Township) and Senator Jim Ananich (D-Flint) joining him. Senator Richardville did not officially name the three to committees on the other two bills, but expected it would be the same people serving on each conference committee. Each of the three Senators named to the conference committee will assume leadership positions next Senate term. House Speaker Jase Bolger (R-Marshall) named House Majority Floor Leader Jim Stamas (R-Midland) as chair, with Representative Rob VerHeulen (R-Walker) and Representative Marilyn Lane (D-Frasier) joining him.

posted by PAA Online , Monday, December 15, 2014 10:36 AM
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Film Incentives Head To Gubernatorial Desk

The Senate voted on Tuesday to send a revised version of SB 1103 to the desk of the Governor. SB 1103 is aimed at increasing work in Michigan for those in the film industry and receiving some income tax from higher-paid producers or actors from certain successful projects. The bill had been changed by the House to include a seven-year sunset, a change that Senate Majority Leader Randy Richardville (R-Monroe) said he didn’t mind.

Senator Richardville said the buzz that has built around the Michigan film industry is “exciting” and helps keep young people in the state and attracts natives who may have left the state to join the film industry elsewhere. SB 1103 would require an eligible production company, affiliate entity or successor company to deal with residual payments not otherwise subject to withholding under the state’s Income Tax Act in one of two ways. The company can either elect for a period of at least 10 years following the theatrical release of the production to withhold taxes from the residual payments and pay the required amounts to the state, or require above-the-line personnel to register to do business under Michigan laws.

posted by PAA Online , 10:35 AM
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Recount Confirms O’Brien Victory

State Representative Margaret O’Brien (R-Portage) will officially assume the 20^th Senate District seat, defeating Democrat Representative Sean McCann (D-Kalamazoo). The certified recounted result yielded 36,645 votes for Ms. O’Brien, and 36,584 votes for Mr. McCann, a difference of 61 votes. Representative O’Brien gained 15 votes, Representative McCann gained 13, and Libertarian Lorence Wenke lost 92 votes. The uncovered clerical error in Mr. Wenke’s vote count illustrates the possibilities for error after the polls close.

Representative McCann congratulated Representative O’Brien, noting that the error justified his seeking of a recount. Representative McCann was heavily favored to win on Election Day, but as the vote tallies slowed Mr. McCann’s lead evaporated. The recount concludes one of the most dramatic legislative elections in recent history.

posted by PAA Online , 10:34 AM
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PAAdvisory Briefs

Detroit Bankruptcy

The city of Detroit formally exited bankruptcy on Wednesday, and Governor Snyder has removed the city from receivership and ended the financial emergency. Three cities and three school districts remain under the control of emergency managers, including Flint, which is increasingly seeing bankruptcy speculation.

Suspicion-Based Drug Testing

SB 275 and HB 4118, which would require suspicion-based drug testing for certain recipients of public assistance, will head to the desk of Governor Snyder. The bills would set up a one year pilot program to take place in three counties chosen by the Department of Human Services and would cut off assistance for those who test positive for illegal substances when receiving cash assistance.

Term Limits Change

Senate Majority Leader Randy Richardville (R-Monroe) introduced a proposal that would ease term limit requirements for legislators. The proposal allows for a term-limited legislator to serve for a total of 12 years in either chamber if that legislator collects enough signatures through a petition. SJR GG would require the legislator to collect 25 percent of the number of persons voting in the preceding gubernatorial election in the district in which the person is seeking office. The resolution would allow for one additional Senate term, or three additional House terms.

posted by PAA Online , 10:33 AM
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