Regulations on Transportation Networks Approved by House Panel

Under legislation passed by the House of Representatives on Wednesday, private car companies such as Uber and Lyft would be exempt from local regulation; however, the companies would see a major increase in licensing fees each year. The legislation, which was reported from the House Commerce and Trade Committee, would raise yearly license costs for Transportation Network Companies well beyond the originally proposed price of $5,000 up to $30,000.

The package, which includes House Bill 4637, HB, 4638, HB 4639, HB 4640, and HB 4641, would still require drivers to carry minimum levels of insurance while on the job and would ban these services from operating in areas designated for taxi companies. An amendment proposed by Representative Erika Geiss (D-Taylor) to exempt airports from the new regulations was denied during committee hearings on Tuesday. Representative Andy Schor (D-Lansing) offered an amendment to exempt preexisting agreements between Uber and the city of Detroit; however, Mr. Schor’s amendment was also rejected during the committee hearing.

The House Commerce and Trade Committee reported the package of bills largely along partisan lines, with HB 4638, HB 4639, HB 4640 and HB 4641 passing by a 10-7 vote margin. Representatives LaTanya Garrett (D-Detroit) and Jeremy Moss (D-Southfield) abstained from voting. Representatives Garrett and Moss were joined by fellow Democrat Representative Leslie Love (D-Detroit) in abstention on HB 4637, leaving the measure to pass on a 10-6 margin.

The full House saw a slightly less divisive passage of the bills, with HB 4640 seeing the slimmest margin of passage, 70 ayes to 40 nays. The main bill, HB 4637 passed on a 71-39 vote, while HB 4638 and HB 4639 saw identical 73-37 margins of victory. The final bill, HB 4641 saw the largest spread with a final vote of 74 representatives in support, while 36 opposed the legislation.

posted by PAA Online , Friday, June 19, 2015 9:50 AM
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Early Balanced Budget Celebrated by Governor and Legislators

After finalizing the budget for the 2015-16 fiscal year, Governor Rick Snyder stated that administration had passed a balanced budget, with increased education funding. The signing of Senate Bill 133 and House Bill 4115, the omnibus and education budgets respectively, ensured that the Governor’s administration has passed a balanced budget well before the end of the fiscal year in all five years.

Speaker of the House Kevin Cotter (R-Mount Pleasant) celebrated the passage of the budget, saying that this budget was one heavy on investment as many of the issues that have ailed the state have already been addressed. The budget was praised by other leaders in the legislature, including Representative Al Pscholka (R-Stevensville), the chair of the House Appropriations Committee. Representative Pscholka said that he hopes the legislature is able to continue finishing balanced budgets before their deadline long after he has left the chamber.

Governor Snyder did use his line-item veto power; however, he said that the veto was minor and the Prepaid Inpatient Health Plan funds were addressed in a separate section of the budget. Mr. Snyder also found that three sections of the budget were unable to be enforced, those sections being: cost sharing for road construction, administering the GED-to-school program, and the examination of livestock that have been killed by predators.

The budget does not have a provision for a permanent solution to the state’s transportation problem; however, according to the Governor, there is enough funding to ensure transportation spending can continue until a solution is reached.

posted by PAA Online , 9:50 AM
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Bill Proposing Lower Minimum Wage for Select Individuals Passes Panel

On Wednesday, the Senate Commerce Committee reported Senate Bill 250, which would allow for individuals under the age of 20 to be paid 85 percent of the state minimum wage. The bill includes the caveat that if the federal minimum wage is higher than 85 percent of the state minimum wage, those affected by the bill must be paid at the federal level. The bill will also increase the hourly training wage, which currently sits at $4.25.

The bill was reported with four members of committee in support, while only Senator Curtis Hertel Jr. (D-East Lansing) opposed the measure. As worded, the legislation would increase the training hourly wage to $6.25, a $2 increase. Currently, employers can pay newly hired workers a training wage for 90 days, something that is not changed under SB 250.

Senator Margaret O’Brien (R-Portage), the sponsor of the bill, stated that this legislation will only be applicable to a small percentage of the state and would help promote the hiring of Michigan’s younger generation. Senator Hertel stated that his opposition stems from the fact that this legislation will affect a larger demographic than expected, and many of those who would fall under the new minimum wage are trying to put themselves through school or care for their families.

The committee also reported SB 98, SB 310, SB 369, and SB 370. These bills will allow for community colleges to award bachelor’s degrees in certain circumstances, create a Civil Air Patrol Employment Protection Act, and extend the use and sales tax exemption for industrial processing of alcohol to personal property for retailers.

posted by PAA Online , 9:49 AM
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Educator Evaluation Bill Opposed by the Governor

During testimony before the House Education Committee Karen McPhee, Governor Rick Snyder’s education advisor, told the committee that the Governor is not supportive of Senate Bill 103. The bill would establish standards for educator evaluations and training for those individuals conducting the evaluations throughout the state. Ms. McPhee originally stated that the Governor was supportive of the standards, without directly addressing his stance on SB 103, until eventually being pressed to give a direct stance by Representative Lee Chatfield (R-Levering).

Representative Adam Zemke (R-Ann Arbor) refuted the estimate that training those conducting the evaluations could cost nearly $100 million, saying that the estimates prepared by the House and Senate Fiscal Agencies range from $8 to $30 million.

Senator Phil Pavlov (R-Saint Clair), sponsor of the bill, says that the proposal would allow for more local control than the proposal introduced by Representative Zemke last session. Opponents of the current proposal argue that the lack of local regulation will allow districts to continue their current evaluation processes, which many say are not working as they should be.

The Michigan Education Association and some Democrats, such as Representative Andy Schor (D-Lansing), questioned whether the proposed legislation is in the best interest of educators and children. Representative Ed McBroom (R-Vulcan) also questioned the bill, stating that a statewide set of standards may not be able to fairly evaluate educators throughout the diverse districts in the state.

posted by PAA Online , 9:49 AM
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Senate Road Funding Plan Sees Increased Debate

Senate Majority Leader Arlan Meekhof (R-West Olive) said that he plans to discuss road-funding solutions with every member of the Senate during the upcoming one-week break, before returning June 30. Sources throughout the Senate have said that a package could come before the chamber as early as the week of July 4. The solution will most likely include tax increases, according to Senate sources, as finding $1 billion in budget cuts does not seem plausible.

The Senate Republicans have had various meetings throughout the month of June in an attempt to find a viable solution that the caucus can support. According to Mr. Meekhof, progress has been made during the discussions and a solution will hopefully be presented during July. Currently he says that all options are still on the table regarding budget cuts, as his members are evaluating different ways to find the necessary $1 billion.

Multiple sources have reported that the Senate’s final proposal will include both an increase in the state’s gas tax, as well as cuts throughout the budget. Spokesperson for Majority Leader Meekhof, Amber McCann, refused to confirm these reports as she repeated that no plan has been finalized. The cuts have been rumored to be as small as $150 million and as large as $800 million, leaving a large margin for discussion.

The Senate’s proposal comes on the heels of Proposal 15-1’s defeat on the ballot in May, as well as the House of Representative’s plan, which was passed last week. The House plan has come under fire for various reasons, including the elimination of the Earned Income Tax Credit and the decrease in funding for the Michigan Economic Development Corporation.

posted by PAA Online , 9:48 AM
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PAAdvisory Briefs

Local Leaders Support Road Commissions

According to a poll conducted by the University of Michigan Gerald R. Ford School of Public Policy, 65 percent of local leaders believe the county road commission did high quality work, while 67 percent were satisfied by the county road operation. A small minority of those surveyed wanted to see the work of county road commissions absorbed by county commissions, something being considered by the legislature.

No-Reason Absentee Bill Introduced

Representative Lisa Posthumus Lyons (R-Alto) introduced legislation to allow for no-reason absentee ballot voting, on Tuesday. House Bill 4724 would ensure that absentee ballots could be acquired at the clerk’s office under the same requirements as when voting on Election Day. Secretary of State Ruth Johnson is a strong supporter of the legislation and testified before the House Elections Committee regarding the bill.

Unemployment Rate Rises in May

Michigan’s seasonally adjusted unemployment rate increased for the first time in 20 months as more Michiganders entered the workforce. According to the Department of Technology, Management and Budget the unemployment rate increased from 5.4 percent to 5.5 percent in the month of May. 4,000 more people began employment in May bringing the total number of employed citizens to 4.487 million; however, the number of unemployed people increased by 7,000 bringing that total up to 264,000.

Revenues Increase 1.9% Since Last May

The state saw an increase in revenue by $1.5 billion, as increases in the use tax and sales tax revenue made up for the loss in sales tax revenue. The state has now collected over $11 billion in School Aid Fund and General Fund revenues since the beginning of this fiscal year, a 2.7 percent increase in comparison to the amount raised last year. The revenue collected in May was up 1.9 percent when compared to May of last year. The state’s insurance tax revenue saw the largest increase by percentage, as it was up 280 percent, while the sales tax revenue saw a 4 percent decrease.

Term Limit Changes Introduced

Representative Ed McBroom (R-Vulcan) introduced three House Joint Resolutions (HJR), which would alter the current term limit system, Thursday. The resolutions would allow legislators to serve for a total of 16 years between the House of Representatives and the Senate. HJR V, HJR W, and HJR X would not only implement the term limit changes, but also would repeal current term limits and allow legislators to serve terms in non-concurrent fashion. All of the resolutions were referred to the House Elections Committee.

posted by PAA Online , 9:48 AM
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