HICA Sees Sunset Extension

On Tuesday, the House approved a bill to extend the state’s Health Insurance Claims Assessment (HICA) into 2025. The bill was passed with no discussion, but with opposition from outside groups including the Michigan Chamber of Commerce and the Michigan Manufacturers Association. HB 5105 passed on a vote of 83-23.

The 0.75 percent assessment fee is meant to reduce the impact on the General Fund, as the federal government ruled the state can no longer assess the use tax on Medicaid HMOs. Representative Al Pscholka (R-Stevensville), House Appropriations chair and bill sponsor, is continually challenging the federal government to continue the use tax, but commented the state will still need the 0.75 percent assessment fee.

The Michigan Chamber of Commerce referred to this extension as a $1.98 billion tax increase on businesses and individuals purchasing health insurance. Delaney McKinley, director of human resource policy and membership development at the Michigan Manufacturers Association, said Michigan is the only state to have such an assessment and in doing so makes the state uncompetitive.

HB 5105 would also strip a credit health care entities would receive if the General Fund and assessment revenues from the use tax exceed a revenue cap.

Under the current bill, the December 31, 2017 sunset would be extended to September 30, 2025.

posted by PAA Online , Friday, December 11, 2015 10:13 AM
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House Passes Straight Ticket Elimination and No-Reason Absentee

The House approved bills to eliminate straight ticket voting and to establish no-reason absentee voting. Both pieces of legislation received strong opposition by Democrats in a long session Wednesday.

SB 13 eliminates straight ticket voting by removing from the ballot a single box that can be checked to vote for all the candidates from one party. HB 4724 allows voters to bring identification to their local clerk’s office to receive an absentee ballot. SB 13 narrowly passed with a vote of 54-51 with Republican Representatives John Bizon (Battle Creek), Ben Glardon (Owosso), Martin Howrylak (Troy), Dave Pagel (Berrien Springs), and Phil Potvin (Cadillac) also voting no. HB 4724 passed with a vote of 59-46, with Democratic Representatives Jeff Irwin (Ann Arbor) and Derek Miller (Warren) voting yes, and Republican Representatives Thomas Hooker (Byron Center) and Phil Potvin again voting no.

SB 13 includes a $5 million appropriation making it referendum proof, a point of controversy for the chamber. Democrats in total attempted to amend this bill 19 times with all attempts failing. Representative Pam Faris (D-Clio) attempted to strip the appropriations and asked for a roll call vote. Her request was denied. Minority Floor Leader Sam Singh (D-East Lansing) called a point of order asking for a roll call vote. His motion was ruled not proper and his request was denied.

HB 4724 has been referred to the Senate Committee on Government Operations and SB 13 has returned to the Senate in order to vote in substitute H-2 that was passed in the House.

posted by PAA Online , 10:12 AM
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Senate Votes Out Campaign Finance Changes

The Senate Elections and Government Reform Committee reported a bill allowing the creation of independent expenditure committees and permitting these committees to make unlimited contributions to another such committee not subject to the Michigan Campaign Finance Act. This legislation passed the full chamber Wednesday and has currently been referred to the House Committee on Elections.

SB 638 was reported out of committee with a vote of 4-1 along party lines with Senate Minority Floor Leader Morris Hood III (D-Detroit) being the sole opposition. The chamber vote was 25-13, also along party lines.

A Senate Fiscal Agency analysis defines an independent expenditure committee in the bill as one that receives contributions and makes independent expenditures pursuant to the current law. An independent expenditure is defined as one by a person if the expenditure is not made in concert or cooperation with a ballot question committee or candidate, a candidate’s authorized political committee or political party committee or its agents, and is not a contribution made directly to a candidate’s authorized political or political party committee. This bill removes the February 15 campaign statement reporting date and extends the filing requirement to an independent expenditure committee.

Supporters of the bill view this as bringing Michigan up to date with current statutes set by the Department of State in court cases such as Citizens United and Austin vs. Chamber of Commerce. Those opposed view this bill as creating more loopholes to abuse existing campaign finance laws.

This bill is currently in the House Committee on Elections.

posted by PAA Online , 10:12 AM
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PAAdvisory Briefs

Lobbyist Passes Away

Dave Stafford, a lobbyist for 20 years for the Michigan Education Association, passed away Monday after battling cancer and pulmonary fibrosis. Stafford was 75 years old. A memorial service was held in Milford.

Dow Corning to Receive $1.2 Million

The Court of Claims declared Dow Corning is due $1.17 million in a Michigan Business Tax (MBT) refund because of carry-forward credits. Dow Corning initially claimed $2.479 million in refunds, but the Department of Treasury reduced this by refiguring the company’s claims under the investment tax credit and brownfield rehabilitation credit of the Single Business Tax. Dow Corning claims the department unlawfully required unused carry-forward credits be used to reduce the pre-surcharge MBT liability. Countering, the Treasury said under this argument, Dow would have no MBT liability. The court rejected the state’s position and ordered the refund; it is unclear if the state will appeal.

Cannon Injured

Democratic candidate for the 1^st U.S. House District Jerry Cannon was hospitalized following a car accident early Monday. Mr. Cannon encountered a patch of black ice and lost control of his vehicle, but is said to be in fair condition.

posted by PAA Online , 10:11 AM
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