Road Funding Package to Governor’s Desk

The House passed amended versions of the roads package late Tuesday evening, and the package now heads to Governor Snyder for approval. In a statement on Tuesday night, Governor Snyder praised the legislature on this $1.2 billion plan and is prepared to sign the bills.

The package includes HB 4614, HB 4616, HB 4370, HB 4736, HB 4737, HB 4738, and SB 414. This 600/600 proposal generates $600 million in new revenue and $600 million in existing revenue, mostly from the General Fund, by 2021. With some critics showing concern for the heavy reliance on the General Fund, Governor Snyder insists the fund will grow to accommodate the roads, preventing future program cuts.

HB 4616, dealing with diesel fuels, cleared the Senate 20-18 and the House 56-51. A Senate adopted substitute generates $200 million from a 20 percent increase in registration fees in HB 4736. This bill passed the Senate 20-18, and cleared the House 55-54. HB 4738 changes the gas tax from 19 cents per gallon to 26.3 cents per gallon beginning January 1, 2017. The bill passed the Senate with a vote of 20-18, and the House 55-52. The gas tax and diesel tax increases will begin January 1, 2022. Inflationary increases are indexed to the national Consumer Price Index.

HB 4614 applies sales tax to alternative fuels based on per-gallon equivalent to motor fuels, had no changes and passed the Senate 21-17 and the House 55-52. The amended version of SB 414 has the rollback tax occurring when General Fund growth exceeding the rate of inflation times 1.425. The legislators also compromised to hold off implementation until January 1, 2023. HB 4370 also did not see many changes, except for the income multiplier changing from 3.4 percent in tax year 2017 to 3.2 percent in tax year 2018. The measure passed the Senate 28-10 and the House 62-45. HB 4737, dealing with the Michigan Transportation Fund and MDOT, passed the Senate 27-11 and the House 73-34.

Senator Virgil Smith (D-Detroit) was the sole Democrat who sided with Republican legislators on any of these bills.

Senate Minority Leader Jim Ananich (D-Flint) and House Minority Leader Tim Greimel (D-Auburn Hills) were particularly critical of this plan. Mr. Ananich called this plan a “political plan” and doesn’t believe the roads will improve as the years continue. Mr. Greimel echoed these concerns, adding that, not only does this further burden families and seniors, but it also will not be implemented until 6 years from now.

Business groups mostly praised the package, including the Grand Rapids Regional Chamber of Commerce, the Michigan Chamber of Commerce, and the Small Business Association of Michigan. The Detroit Regional Chamber and Business Leaders for Michigan initially opposed this plan, but now offer tepid praise. The Michigan Municipal League viewed the plan as underwhelming; Karen Holcomb-Merrill of the Michigan League for Public Policy believes this plan jeopardizes other key services.

Governor Snyder has said he will take time to read and review these bills, however he is fully expected to sign them.

posted by PAA Online , Friday, November 6, 2015 11:46 AM
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Energy Bill to House Floor

The House Energy Policy Committee reported a package of bills late Thursday that include significant changes to the proposed renewable energy definitions. These bills also include a utilities goal of 30 percent production from renewable and energy efficiency. Attempts to expand choice were made, but were not successful.

The committee reported, HB 4297, HB 4298, and HB 4575. HB 4297 deals with environmental aspects of energy. The bill cleared the committee 21-3 with Representative Julie Plawecki (D-Dearborn Heights) abstaining. HB 4298 addresses choice and utility regulations, and passed 18-7 with Vice Chair Representative Gary Glenn (R-Midland), Representative Andrea LaFontaine (R-Columbus), Representative Holly Hughes (R-White River Township), Representative Tom Barrett (R-Potterville), Representative Peter Lucido (R-Shelby Township), Representative Derek Miller (D-Warren), and Representative Scott Dianda (D-Calumet) voting no.

Chairmen Aric Nesbitt (R-Lawton) wants to finish the bills before the year is over. He believes utilities are going to make investments and believes the state needs to deal with this increase proactively, not reactively. Mr. Nesbitt continually worked with House Democrats, specifically House Minority Floor Leader Sam Singh (D-East Lansing) and House Minority Leader Tim Greimel (D-Auburn Hills) to garner bipartisan support.

Representative Nesbitt included an amendment to HB 4297 to remove what the federal government does not consider renewable energy. Representative LaVoy (D-Monroe) presented an amendment that clarifies the definition of renewable energy and includes biomass and geothermal. Representative Hughes attempted to pass an amendment that would keep the choice market the same as it is currently, but this motion failed. Ms. Hughes also created an amendment to ensure pet coke, hazardous waste, coal waste, and scrap tires were not included in the definition of renewable energy. Representative Glenn also attempted to amend the 10 percent choice market, ensuring all schools, community colleges, and universities would not count against the cap.

Amendments were adopted to HB 4298 that require alternative energy consumers to remain with the utility for 15 years if it doesn’t cause increased cost. For those with an increased cost, it would be 20 years. Valerie Brader, Executive Director for the Michigan Agency for Energy, told the committee these changes would not go into effect unless there were extreme circumstances.

A Democratic amendment included language describing the Integrated Resource Plan that gave utilities a 30 percent of energy production goal through renewable energy and reduction of energy waste through energy efficiency goal by 2025. An additional amendment provided a financial incentive for utilities to reach an annual energy waste reduction between 1.5 and 3 percent.

Representative Ed McBroom (R-Vulcan) sponsored an amendment to add a general taxpayer to the Public Service Commission and increase said commission from three members to five. It is unclear if this amendment will remain on the final version of the bill.

Terri Reid, President of the Michigan Freedom Fund, believes these bills were rushed and went through a secretive process and Executive Director of Energy Choice Now Wayne Kuipers commented the bills would kill electric choice. Environmental advocates don’t believe the bills go far enough.

Representative Nesbitt believes a majority of the House Republican caucus will be supportive of these bills, and looks forward to completing these bills before the end of the year.

posted by PAA Online , 11:45 AM
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Coalition Against Concealed Carry Bill

On Wednesday, a coalition of parents, mayors, and the Michigan Health and Hospital Association urged the Legislature to do away with the SB 442, which allows an individual to carry registered concealed weapons into gun-free zones. This bill has been reported by the Senate Judiciary Committee, but has received no further action.

Supporters of this bill wish to solve the problem of individuals openly carrying a gun into one of these zones, such as a school but with licensed concealed carry individuals being unable to do so. Under this legislation, open carry into gun-free zones would become illegal and concealed carry would be legalized. The idea is that school shootings and the like will be minimized if permitted individuals could conceal their gun as a means of protection.

Opponents of this bill disagree, and see this bill inviting guns into schools, universities, sports arenas, places of worship, and more. Lansing Mayor Virg Bernero, Kristen Moore, chapter leader with the Michigan chapter of Moms Demand Action for Gun Sense in America, Rob Casalou, regional president and CEO of Saint Joseph Mercy Health System, and Ruthann Jaquette, president of the Michigan Parent Teacher Association, have all spoken against this bill.

Mr. Casalou spoke of the emotion, stress, and safety of an emergency room environment and believes guns would taint this. Ms. Jaquette in her comments rejected the notion that shooters target gun-free zones, citing that less than 13 percent of mass shootings since 2009 have occurred in these zones.

Some have said SB 442 presents a compromise, but others disagree. Currently, it is unclear when SB 442 might be taken up.

posted by PAA Online , 11:45 AM
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LARA Announces Program to Connect Employers and Immigrants

The Department of Licensing and Regulatory Affairs (LARA) announced Monday plans to launch a program to connect foreign-born professionals and employers, focusing primarily on science, technology, engineering, and math.

The program, effectively named the Michigan International Talent Solutions program, was created by the Michigan Office for New Americans and will offer job-search training to skilled and work authorized individuals. This training includes professional resume development, job application assistance, marketing and networking skills, interview preparation, and salary negotiation. The program will work through Upwardly Global, a national nonprofit.

Interested candidates can apply online. No fee is required, but applicants must possess a green card or permanent work authorization, and have a bachelor’s degree or higher with two years professional work experience and proficiency in English language. To learn more information, contact Annie Fenton at fentona@michigan.gov or visit www.michigan.gov/mona

posted by PAA Online , 11:44 AM
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PAAdvisory Briefs

Special Election Results

Mary Whiteford of Casco Township and Gary Howell of North Branch defeated former Representatives Cindy Gamrat and Todd Courser in special election primaries for the 80^th and 82^nd House Districts, respectively. Ms. Whiteford with 90 percent of precincts reported late Tuesday, had 5,065 votes or 51.7 percent. Mr. Howell totaled 3,070 votes, far surpassing Mr. Courser’s 415 votes. David LaGrand, a Democrat from Grand Rapids, won the nomination for the 75^th House District in the special election. Mr. LaGrand received 4,085 votes.

Snyder Press Secretary Replaced by Murray

Governor Rick Snyder’s administration announced press secretary Sara Wurfel will be replaced by deputy press secretary Dave Murray. Ms. Wurfel has served as press secretary for five years, but is leaving to join the Truscott Rossman public relations firm as vice president for public affairs. Mr. Murray joined Snyder’s staff during the governor’s first term, and has previously been a reporter for The Flint Journal and The Grand Rapids Press.

State Clarifies Nexus Issue on Tax

A revenue administrative bulletin (RAB) was issued this week to clarify when a company in Michigan has nexus and must collect the taxes. RAB 2015-22 deals with PA 553 of 2014 and PA 554 of 2014, to help clarify this. Under this bulletin, a company has nexus if it uses employees in the state, has a customer pick up or return items at a company facility, maintains offices in Michigan, or delivers and repairs items.

Osmer Announces Candidacy for 106^th District

Jesse Osmer, a Republican, has announced his run for the 106^th House District. Mr. Osmer is the chair of the 1^st Congressional District Republican Party. Representative Peter Pettalia (R-Presque Isle) currently holds the seat, but cannot run for reelection due to term limits.

Former Legislature and Top Lobbyist Passed Away

Robert VanderLaan, 85, passed away on Sunday. Mr. VanderLaan began his career as a teacher at Christian high schools as well as Calvin College. Most notably, he served as both majority and minority leaders in the Senate and co-founded Government Consultant Services, Incorporated, one of the state’s top lobbying firms. The service was held Thursday in Grand Rapids.

posted by PAA Online , 11:43 AM
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