Senate Passes Auto Insurance Reform with Amendments

On Thursday the full Senate reported an amended version of Senate Bill 248, legislation making sweeping changes to the state’s auto no-fault structure. The version of the bill passed out of the Senate chamber had four key provisions:

1. Establishing a new association to handle claims for catastrophic injuries;
2. Limiting attendant care payments;
3. Creating an auto insurance fraud authority; and
4. Reimbursing health care providers no more than that provider charges insurers for similar services, exempting Medicare and Medicaid rates.

During the Senate session many amendments were adopted and rejected, emotional stories presented, and spirited debate on both sides of the issue ensued. In the end, however, the Senate voted 21-17 to send a largely revised bill to the House.

The changes came in the form of five amendments sponsored by varying Senate Republicans.
1. Senator Joe Hune (R-Whitmore Lake), clarified language already in the bill regarding one's ability to seek greater reimbursement for attendant care.
2. Senator Mike Shirkey (R-Clarklake) amended the bill to ensure that members or self-insurers paying for the costs and administration of the Fraud Authority did not do so with premium revenues.
3. Senator Ken Horn (R-Frankenmuth) amended the bill to allow an injured person or his or her representative to request a medical review to determine care and treatment requirements, and if that review exceeded the limitations of reimbursement, making those payments allowable.
4. Senator Shirkey followed with another amendment subjecting the Fraud Authority to the Freedom of Information Act.
5. Senator Dave Robertson (R-Grand Blanc) removed a provision requiring injured persons receiving attendant care to pay a co-payment after the first 30 days of treatment of 20 percent up to a maximum of $200 a month.

On the other side of the aisle, 17 different amendments were offered but the Republican majority did not bite on any of them. In the end, Senate Bill 248 was passed on a 21-17 vote, with all Democrats voting no except Senator Virgil Smith (D-Detroit).

The other provision in the bill that raised some eyebrows included an appropriation of $150,000 for implementation purposes. Many opponents of the Senate Bill suggest this was added to make the bill referendum-proof (the Supreme Court has ruled that a bill containing an appropriation, no matter how small, makes it immune from referendum). The Senate Majority Leader suggested that money will go toward educating the public on the new changes.

After passage in the Senate, the bill was sent to the House Insurance Committee where a hearing has not yet been scheduled.

posted by PAA Online , Friday, April 17, 2015 12:10 PM
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House Tax Policy Committee Debates Tax Credits In

Spirited debate took place this week as some members feared Michigan would not be on a level playing field with other states if the Legislature took action to end certain tax incentives.

Committee members supportive of the Michigan Economic Growth Authority (MEGA) are concerned that House Bills 4333 and 4334 would prohibit any new MEGA agreements and other states would be able to take potential business investment away from Michigan.

Members of the House Tax Policy Committee on the other side of the debate suggest these bills are not ending all incentive to businesses thinking of relocating to Michigan, just the MEGA credits. There are other incentives the State can use to create a business friendly environment and persuade companies to make Michigan home.

House Bills 4333 and 4334, introduced last month by Representatives Lee Chatfield (R-Levering) and Gary Glenn (R-Midland), would prohibit MEGA tax credit extensions as currently allowed in the Michigan Economic Growth Authority Act.

Since the MEGA credits were greatly expanded in 2008, the program has accumulated a projected taxpayer liability of $9.38 billion. The Legislature and Governor ended MEGA in 2011, but even with the program’s demise, state law still allows the existing credits to be increased and extended. This bill package would prevent this from happening in the future.

Under this legislation, credits that have already been awarded will not be touched; however, future administrations and legislatures will no longer be able to make amendments to the credits in a way that would extend these tax credits and create financial liabilities to future generations of Michigan taxpayers.

The $9.38 billion estimated liability is projected to be incurred over the next 17 years. For the coming fiscal year, the credits created a $325 million state budget shortfall that legislators are currently working to solve.

Based on the debate in the House Tax Policy Committee meeting this week the committee did not take action on the bills and Representative Farrington (R-Utica), Chairman of the committee suggested they would not take the bills up again for several weeks as they continue to work out their differences.

posted by PAA Online , 12:08 PM
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Michigan Unemployment Rate Drops In March

Michigan's seasonally adjusted unemployment rate in March was 5.6 percent, slightly lower than the 5.9 percent in February, but slightly higher than the national average of 5.5 percent.

What seemed to move Michigan's percentages in March had more to do with the number of people who stopped looking for jobs, rather than the number now on a payroll. The number of unemployed in the state fell by 14,000 people, but total employment only grew by 2,000. That means there was a 12,000-person labor force reduction in March. Even though March saw a reduction in the labor force, the state of Michigan has seen more than 90,000 new jobs created year.

posted by PAA Online , 12:06 PM
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PAAdvisory Briefs

New State Superintendent Hired

The State Board of Education announced this week that Brian Whiston will officially take over as superintendent of public instruction on July 1. Mr. Whiston is scheduled to begin working on revising Michigan’s educational strategies next week, along with formally meeting Governor Snyder.

Michigan Association of Certified Public Accountants Announces New Hire

Dale Hull, a veteran to the legislative process and former House staffer, has been named Senior Director of Government Relations and Regulatory Affairs for the Michigan Association of Certified Public Accountants (MICPA). The Troy-based MICPA has 18,000 members statewide.

Incumbent Congressman Again in a Fundraising Fight

State Representative Gretchen Driskell (D-Saline), the announced candidate seeking to unseat incumbent U.S. Representative Tim Walberg, has raised $171,232 for the first quarter of 2015 according to her campaign finance report filed Wednesday. Congressman Walberg, in contrast, had net receipts of $165,929 for the quarter, his reports showed, and did not have to report any refunds. As an incumbent, Walberg had a leg up in overall funds, with $417,669 cash on hand while Representative Driskell had $149,860 in the bank. The reporting period ran from January 1 through March 31. This race will be one to watch as we near the 2016 election.

Former Rep. Neal Nitz Dead At 61

Former Rep. Neal Nitz, a Baroda Republican and former Chair of the House Agriculture Committee during his six years in the House, died Monday. He was 61. Representative Nitz served in the House from 2003-08. Burial will be at the Ruggles Cemetery in Baroda. A brother and a sister survive Mr. Nitz.

Emergency Managers Named for Two Michigan Communities

This week Governor Rick Snyder announced two successor emergency managers. Don Weatherspoon was named emergency manager in Highland Park, and Steve Schiller was named the emergency manager at Muskegon Heights. Weatherspoon is returning to Highland Park where he was once emergency manager. He was also formerly the emergency manager at Muskegon Heights and at Pontiac schools. Mr. Schiller is a former teacher at Muskegon Heights has been a past consultant to both Muskegon Heights and Highland Park.

posted by PAA Online , 12:04 PM
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