Tax Breaks for Switch Clears Senate

The Senate passed SB 616 and SB 617, which allows tax breaks for Switch, a Nevada-based data company, and data colocation centers. The bill passed by a 21-15 vote with minimal discussion on the Senate floor.

The bills provide a 15-year exemption from the sales tax and the use taxes at the full rate of 6 percent, different from the 4 percent provision passed in the Senate Michigan Competitiveness Committee. Senate Majority Leader Arlan Meekhof (R-West Olive) said the change from 4 to 6 percent was intended to reflect what they believe the House would end up doing, the bills also specifically define “internet data center,” “data center equipment,” and “collocated business.”

The chamber also passed SB 618, a bill to provide a 10-year exemption for eligible Internet data center property, pending approval from local governments no later than March 31 of the first year the eligible Internet data center property would be subject to the taxes, or if the local government failed to reject the exemption by April 1, 2016. This bill passed on a 21-15 vote.

The House has not voted on similar legislation in its chamber, but is expected to soon.

posted by PAA Online , Friday, December 4, 2015 12:03 PM
LINK DIRECTLY TO THIS ARTICLE

Energy Legislation Moves Forward

Representative Aric Nesbitt (R-Lawton), chairman of the House Energy Policy Committee, is working with members this week in hopes of voting on his energy policy on the House floor next week. The Senate, by contrast, isn’t likely to see a vote until the beginning of 2016.

Representative Nesbitt’s plan cleared committee earlier this month and includes provisions that keep the 10-percent set aside for energy choice and a renewable energy goal. Several spokespersons have commented on the need for the House to vote on this legislation before the end of the year. Nine coal plants will close in April 2016 and utilities need to be assured that the market is reliable and affordable; otherwise the state will not have energy available at its fingertips.

Senator Mike Nofs (R-Battle Creek), chair of the Senate Energy and Technology Committee, has drafted a revised version of legislation regarding energy policy. The main difference between the Nofs plan and the Nesbitt plan is that Senator Nofs is in strong favor of keeping the choice market, something Representative Nesbitt’s legislation keeps at a minimum. Senator Nofs is also in favor of alternative suppliers having a role in the game too. As of right now, it is unclear if the Senate will be able to vote on an energy solution before the end of the year.

posted by PAA Online , 12:02 PM
LINK DIRECTLY TO THIS ARTICLE

Juvenile Justice Reform Hears Testimony

A nearly 20-bill package to reform the juvenile justice system in Michigan received its first testimony on Tuesday. This legislation seeks to end automatically trying 17-year-olds as adults and to no longer house youth prisoners with adults. Public oversight and monitoring of youth would also be required. The full package of bills include: HB 4947 through HB 4966.

If passed, this brings Michigan in line with 41 other states in their practices of trying 17-year-olds as minors. Representative Peter Lucido (R-Shelby Township), sponsor of one of the bills, believes Michigan should be a leader in the nation, not a minority, when it comes to juvenile sentencing.

HB 4964 allocates an additional 25 percent to counties from the County Child Care Fund for community home services for juveniles. Currently, the state and county split these costs 50-50. HB 4964 raises this to 75 percent state and 25 percent county split. Concerns arose from counties about the overall costs, Dana Gill from the Michigan Association of Counties testified that the legislation does not address court capacity, community-based programming, and cost demands for a shift in handling 17-year-old sentencing. Former Supreme Court Justice Mary Beth Kelly said Michigan, having 83 counties, could create a disparity as a county cannot always afford to rehabilitate a juvenile, and therefore would be admitted to the Department of Corrections.

Committee Chair Representative Kurt Heise (R-Plymouth) announced the committee will hear more testimony next week and the bills will not be reported until next year.

posted by PAA Online , 12:02 PM
LINK DIRECTLY TO THIS ARTICLE

Voter Bills Up in Committee

Unexpectedly, the House Elections Committee considered a bill to allow anyone to vote absentee in person and appears to have informally tied this bill to separate legislation that aims to end straight-ticket voting, HB 4724, the bill to adapt a “no-reason” absentee voting was not on the committee’s agenda.

Committee Chair Representative Lisa Posthumus Lyons (R-Alto) brought the bill before the panel following a couple of recesses. This was the sole bill on the agenda that passed. All five Republicans voted yes with all three Democrats abstaining. This bill requires those not currently qualified for an absentee ballot to go to their local clerk offices to apply for one and present a photo ID for each election they wish to vote absentee. Current persons eligible are those who are 60 and older, those who will be absent from home on Election Day, those with a physical disability that requires assistance going to the polls, and a few others.

The bills are currently not linked, however Representative Lyons has expressed this is an option. If the House passes both bills, the Senate could possibly let no-reason absentee voting die and send the elimination of straight ticket voting to Governor Rick Snyder. Both Senate Majority Leader Arlan Meekhof (R-West Olive) and Chairman of the Senate Elections and Government Reform Committee Senator Dave Robertson (R-Grand Blanc) have opposed no-reason absentee voting.

posted by PAA Online , 12:00 PM
LINK DIRECTLY TO THIS ARTICLE

PAAdvisory Briefs

Rubio Endorsed by Huizenga

U.S. Representative Bill Huizenga (R-Zeeland) has endorsed U.S. Senator Marco Rubio (R-Florida) for the Republican presidential nomination. Representative Huizenga was named co-chair of the Rubio Michigan efforts along with other co-chair U.S. Representative John Moolenaar (R-Midland).

New SEIU Contract with State

Four of five state employee unions have approved a new Service Employee International Union Local 517M contract for Michigan. The three bargaining units in Local 517M approved the contract with 86 percent of the vote with 46 percent of union membership returned. There would be a one-year contract for wages and health care beginning October 1, 2016 with a 1 percent base wage increase and 1.5 percent lump sum payment for employees. United Auto Workers Local 6000 is the final union to vote and expects to count ballots December 11.

1-94 No More Prone to Crashes Than Normal

Following a 193 vehicle pile-up in January, Senator Margaret O’Brien (R-Portage) requested a study be conducted to see if the I-94 stretch near Kalamazoo was more prone to crashes than average freeways. The Michigan Department of Transportation (MDOT), along with state and federal agencies, concluded this was not the case. The winter crash rate in years with harsh winters is 24 percent higher than other statewide freeways. 65 percent of the winter crashes involved a vehicle driving too fast.

posted by PAA Online , 12:00 PM
LINK DIRECTLY TO THIS ARTICLE

This Week's Newsletter

Past Newsletters