Omnibus Budget Passes the House

This week the House of Representatives took its first vote on the FY 2015-16 budget by passing an omnibus budget bill funding the state's departments and agencies.

House Bill 4102 cleared the House 59-51 with all Democrats voting no. One of the reasons the vote split down party lines was an amendment adopted that would disallow the Department of Health and Human Services from contracting with an organization providing elective abortions, abortion counseling or abortion referrals.

Other amendments adopted to the bill included one from Representative Ed McBroom (R-Vulcan), which prohibits the Department of Natural Resources from spending state or federal dollars on the enforcement of the decision from a federal court to put gray wolves back on the endangered species list.

The budget in total is $37.86 billion, with $8.099 billion coming from the General Fund. The budget also adds $112 million to the state's rainy day fund, bringing the total to $615.9 million.

There continues to be a few unresolved issues both chambers will continue to work on. One issue is the Detroit revenue sharing in the budget, which is below Governor Rick Snyder's recommendation yet larger than the previous year.

Another point the House and Senate will have to work out together is the Health Insurance Claims Assessment. In the Governor’s budget recommendation, he called for an increase in the tax on all health insurance claims, which through triggering additional federal matching funds, raises hundreds of millions for Medicaid. The House rejected the Governor’s proposal.

posted by PAA Online , Friday, May 1, 2015 11:42 AM
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Advanced Practice Registered Nurses (APRN) Bill Passes Committee

Senate Bill 68 was reported unanimously this week from the Senate Health Policy Committee which places advance practice registered nurses in the Public Health Code.

The committee adopted a substitute to the bill that requires APRNs to be part of a "patient care team," which, for the first five years of practice for an APRN, must include at least one physician. After that, APRNs are still able to be part of the team, but the degree of involvement of a physician is left to the discretion of that operating unit.

There were many amendments to the bill that were discussed and adopted in committee this week. One of the key changes adopted is the redefinition of "patient care team" as one consisting of health care providers, formed to collaborate in the best interest of patient health.

Another amendment also added language to one of several conditions that must be met for an APRN with five or more years of experience to perform a "task, function or duty included in the practice of medicine.”

The Michigan Council of Nurse Practitioners was very supportive of the introduced version of the bill but indicated they had not reviewed the substitute, which was adopted in committee. The bill will now head to the Senate floor to be voted on by all 38 members.

posted by PAA Online , 11:40 AM
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House Committee Supports Ban on MEGA Extensions

House Bills 4333 and 4334, introduced last month, were reported from the committee by a 12-0 vote. These two bills, sponsored by Representative Chatfield (R-Levering) and 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. This year, the credits created a $325 million state budget shortfall that legislators are currently working to solve.

A significant amendment to this legislation that was approved in committee was a measure to end altogether the Michigan Business Tax by December 31, 2031.

When Michigan was struggling economically and was looking at retaining business and job growth, the MEGA credits significantly helped. Many lawmakers now see these credits as an unnecessary burden on the state’s economy while in the midst of a national economic rebound.

posted by PAA Online , 11:39 AM
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House Approves K-12, Colleges, Higher Ed Budgets

The House passed its omnibus budget funding the state's universities, community colleges and K-12 schools this week, with all 47 Democrats voting in opposition.

House Bill 4115 contains $15.8 billion with $13.9 billion going to K-12 schools, $392.6 million going to community colleges and $1.5 billion going to universities.

The House budget also adds $100 million to the foundation allowance rather than adding the funds to at-risk funding as Governor Rick Snyder proposed. The House budget also does not include the $25 million proposed for third grade reading programs.

The House budget plan is less than the 2 percent increase Governor Snyder proposed for universities, passing a 1 percent increase in operations funding.

posted by PAA Online , 11:38 AM
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Medical Marijuana Bills Start Again In House Committee

House Bills 4209 and 4210, re-introductions of bills from last session that would permit medical marijuana provisioning centers and allow edible and topical forms of the drug, were taken up this week in the House Judiciary Committee.

House Bill 4209 sponsored by Representative Mike Callton (R-Nashville) allows access to medical grade marijuana for patients through a “Provisioning Center” or dispensary. The bill also allows caregivers to sell medical grade marijuana to provisioning center agents for distribution.

The bill further provides local municipalities the ability to decide whether they want to have provisioning centers. This bill, contrary to current Michigan Law, permits the municipality to zone-out completely a provisioning center; or will permit the municipality significant oversight, control and licensing authority over them.

House Bill 4210, sponsored by Representative Lisa Lyons (R-Alto) prevents a person from being penalized for manufacturing a marijuana-infused product if the person is a registered patient, a primary caregiver, or a medical marijuana-provisioning center. The bill also establishes a felony penalty of up to two years imprisonment and/or a maximum fine of $2,000 for the transfer of a marijuana-infused product by a patient to another individual, by a caregiver to someone other than a qualifying patient of the caregiver, or by a provisioning center to someone other than a qualifying patient or registered caregiver. The bills also would require testing of the products to ensure their safety.

Some legislators believe it is important to regulate marijuana provisioning centers because the state is on the verge of a legalization drive and regulating centers after legalization would be difficult. Representative Callton has not been in support of legalization.

posted by PAA Online , 11:37 AM
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Auto Insurance Reform is a Priority for House

House Speaker Kevin Cotter (R-Mt. Pleasant) did not call a vote this week on auto insurance reform indicating members needed more time to research the issue.

Last week the House Insurance Committee approved the measure by a vote of 9-6. Senate Bills 248 and 249 now sit on the House floor where all 110 members have an opportunity to weigh in on this important legislative package.

The bills would set attendant care pay limits for family members, a fee schedule for health care providers that is 150 percent of the Medicare reimbursement rate, and require a rate rollback of $100 per vehicle for the first two years.

House Speaker Kevin Cotter said in a statement insurance reform is a huge priority for him and the Republican Caucus.

posted by PAA Online , 11:35 AM
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PAAdvisory Briefs

Health and Human Services Appropriations Subcommittee Created, Marleau Chair

This week, the Senate created the Senate Appropriations Health and Human Services Subcommittee to reflect the merger of the departments of Community Health and Human Services into the Department of Health and Human Services. Senator James Marleau (R-Lake Orion) who chaired the DCH subcommittee will chair the new one. Senator Peter MacGregor (R-Rockford) who chaired the DHS subcommittee will serve as majority vice chair of the new subcommittee.

Flint Financial Emergency Ends

This week, Flint's financial emergency has been resolved, the city’s emergency manager status is completed, and now the City will continue moving toward self-governance and economic independence. A receivership transition advisory board has been named to assist the city to continue its transition to full local control.

Job Growth Continues in the Right Direction

The Michigan Strategic Fund approved two business expansions and one community revitalization project that expect to generate nearly $39 million in new investment and 151 new jobs. Atomic Object LLC has been awarded a $250,000 grant as part of plans to renovate a functionally obsolete building in Grand Rapids to serve as its new headquarters while also doubling its Ann Arbor location and leasing additional space in Detroit. Emhart Technologies LLC will receive a $350,000 grant as part of plans to construct a 30,000-square-foot expansion of its manufacturing operations in Chesterfield Township, converting the existing office space into manufacturing space.

Latest Polling has Proposal 1 Support At 29%

A newly released EPIC/MRA poll shows 29 percent of Michigan voters plan to vote yes on Tuesday, while 61 percent plan to vote no. Since the last poll in March and the millions of dollars being spent by supporters of the proposal, the number supporting the plan has only moved 4 percentage points. If the proposal passes Michigan’s sales tax will be raised as a part of a plan to increase road funding by $1.2 billion.

Michigan Names a New Medical Executive

This week the Department of Health and Human Services announced that Eden Wells will serve as the state's new chief medical executive, succeeding Matthew Davis. Ms. Wells was previously a medical consultant to the state in the Bureau of Epidemiology where she worked on helping prepare the state for potential bioterrorism incidents and major outbreaks of diseases such as flu.

posted by PAA Online , 11:34 AM
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