Speaker Kevin Cotter Unveils House Road Plan

Fifty House Republicans this week stood with Speaker Kevin Cotter as the House rolled out a new road funding package. Coming on the heels of a resounding defeat of Proposal 15-1 at the polls, the House Republican road plan would generate $1.05 billion for roads with only $45 million coming from new revenue. The House also created a new Roads and Economic Development Committee to consider the plan.

The plan would raise the diesel tax from 15 cents to 19 cents to match the gas tax, then index both to inflation, and levy a user fee on hybrid, electric and other alternative-fuel vehicles. The Speaker also suggested his plan would raise more than $1 billion for roads by tapping into restricted funds that now support economic development programs such as, $75 million from the tobacco settlement in the 21st Century Jobs Fund, $60 million from the tribal gaming compact and $50 million from ending the film subsidies program, allocating a portion of the projected growth in the general fund, and eliminating the Earned Income Tax Credit for low-income families.

The Senate plans to take a more deliberative approach to coming up with a road funding proposal, announcing this week their plans for a summer session with roads as the top priority.

posted by PAA Online , Friday, May 15, 2015 1:56 PM
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Prevailing Wage Repeal Passes Senate

Thursday morning, the Senate passed a three-bill package, SB 1, SB 2, and SB 3, repealing prevailing wage. Each bill passed the full Senate on a 22-15 vote.

The package does not come without controversy as the Senate Committee on Michigan Competitiveness took testimony and sent them to the floor late Wednesday. The prevailing wage law currently sets union wage and benefit rates for workers on state projects.

Democrats in the Senate voiced their opposition to the bills stating that repealing this law will lower wages of Michigan workers and hurt Michigan families. The other side of the argument, however, disagrees, thinking that prevailing wage laws cost taxpayers hundreds of millions of dollars each year.

Before the vote in the Senate, Democrat Senator Rebekah Warren (D-Ann Arbor) attempted to introduce an amendment removing an appropriation from the package. She argued an appropriation passed in legislation prevents the legislation from potentially facing a voter referendum. The amendment failed, while the Republicans claim the monies will be used to educate the public about the significant change to the law.

A recent report offered by East Lansing based Anderson Economic Group, suggests that Michigan could save about $225 million a year if there was not a prevailing wage. The study was commissioned by the Associated Builders and Contractors who have been very supportive of this repeal.
Some of the opponents that fear public work will become about the price point and not the quality of work. Others suggest you will see less contractors bidding on public projects because they cannot compete with prices.

Supporters of the legislative package suggest that without the repeal, Michigan is at a competitive disadvantage as only a few states have a prevailing wage, and those without it, tend to attract a more skilled and competitive workforce.

Either way, the bill package now heads over to the House of Representatives where it will be reviewed in committee prior to all 110 members having the opportunity to vote on this package.

posted by PAA Online , 1:55 PM
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Senator Virgil Smith Faces Sanctions in Senate

State Senator Virgil Smith (D-Detroit) may be in trouble with his own caucus and face sanctions from Senate leadership after being charged with three felonies and one misdemeanor related to a weekend altercation with his ex-wife that allegedly ended up with her vehicle being shot.

Senator Smith was arraigned on charges of felonious assault, malicious destruction of personal property $20,000 or more, domestic violence assault and battery and felony firearm charges. All of the charges, except the domestic violence charge, are felonies, and, if convicted, he could face many years in prison.

After being arraigned this week at the 36^th District Court in Detroit, Senate Minority Leader Jim Ananich (D-Flint) announced Senator Virgil Smith was being removed from the Senate Democratic Caucus along with the five committees on which he serves.

Under Article IV, Section 16 of the Constitution, the Senate is the sole judge of the qualifications of its members. Through the years, this language has been used to force the resignation of members convicted of felonies, and even expel members who have not been convicted.

If Senator Smith is convicted of the charges before him, his days in the Legislature would likely be over. Michigan’s Constitution bars anyone convicted of a felony involving a breach of the public trust in the preceding 20 years from serving in the Legislature. Although this incident may not be considered a breach of the public trust, the Senate has long accepted that any member convicted of a felony while in office must resign or face expulsion.

Senator Smith’s official website has been taken down and replaced with a simple message saying "Senator Virgil Smith's office will continue to be open and available to assist constituents of the 4th Senate District," along with the office's email and phone number.

posted by PAA Online , 1:54 PM
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Asset Forfeiture Bills Get First Hearing In House Committee

The House Judiciary Committee this week took a big step in changing Michigan’s controversial asset forfeiture law by holding its first hearing on legislation designed to bring transparency and accountability to the state's civil asset forfeiture laws.

The committee took up HB 4500, HB 4503, HB 4504, HB 4506 and HB 4507.

The main bill in the package, HB 4504 would create a new act requiring annual reports to the Department of State Police from individual agencies regarding forfeited property. The other four bills in the package simply amend various statutes to reflect the transparency change and reporting requirements.

The reports required under this new act would include the number of forfeiture proceedings instituted in circuit court by the reporting agency; the number of forfeitures by the agency without a proceeding in circuit court; and the number of forfeiture proceedings subject to a plea or other agreement involving the property owner and agency.

Although the State Police believe the current asset forfeiture process is a bit antiquated, they have not taken a position on this package. If passed, the legislation would require an inventory of the property, the net proceeds of the property forfeited, and a statement as to how the monies from the forfeiture will be used.

posted by PAA Online , 1:53 PM
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PAADVISORY BRIEFS

Berden Elected New GOP Committeewoman

Kathy Berden was elected this past weekend as the Michigan Republican's new national committeewoman, Ms. Berden said she is looking forward to meeting with activists and helping ensure there is a "positive face" to Michigan Republicans. She defeated Mary Whiteford on the second ballot of the Michigan Republican State Committee to elect a successor to Ronna Romney McDaniel who is now the State party Chair.

House Speaker Names Representative Cox to National Committee

House Speaker Kevin Cotter has appointed Representative Laura Cox to the Budgets and Revenue Committee of the National Conference of State Legislatures for the 2015-2016 term. The Budgets and Revenue Committee is one of nine standing committees of the conference, and is responsible for protecting state interests in regard to federal decisions involving fiscal matters.

Compensation Commission Recommends Increase Pay for Judges

The State Officers Compensation Commission approved Wednesday a 3 percent pay increase for Judges in 2017 and 2018. This is the third straight report by the Commission where a pay increase was recommended. The Legislature has rejected the other two based on budget concerns. It is unclear what the Legislature will do with the recommendation this year.

Senate Majority Leader Names Replacements for Senator Smith

The Senate Majority Leader this week named other Democrats to succeed Senator Virgil Smith as he was officially stripped of his committee posts. Senator Bert Johnson (D-Highland Park) was named to the Senate Agriculture Committee; Senator Coleman Young II (D-Detroit) was tapped for Banking and Financial Services Committee. Senator Rebekah Warren (D-Ann Arbor) will now serve as minority vice chair and Senator Steve Bieda (D-Warren) will serve on the Energy and Technology Committee.

Enbridge Oil Spill Resolved

The State of Michigan and Enbridge Energy reached a settlement agreement this week with the energy company paying $75 million in addition to completing cleanup of the July 2010 oil spill on the Kalamazoo River. The settlement requires that Enbridge complete cleanup within five years of the spill, which released some 800,000 gallons of oil into Talmadge Creek and the Kalamazoo River.

posted by PAA Online , 1:52 PM
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