Legislators Approve Data Center Tax Breaks

After a nine-hour House session, both chambers passed bills to approve sales and use tax exemptions for collocated data centers in the state. Switch, a Nevada- based company looking to open an east coast hub in the Grand Rapids area, is among one of the companies affected.

SB 616 and SB 617 passed in the House 61-45 and concurred in the Senate 26-12. Amendments adopted from Representative Jim Townsend (D-Royal Oak) and Representative Winnie Brinks (D-Grand Rapids) require data centers throughout the state to create 400 jobs by 2022 and 1,000 by 2026. These increases are net increases. The sales and use tax exemption will sunset in 2035.

Representative Andy Schor (D-Lansing), sponsor of one of the House bills, commented “this important legislation will create good-paying technology jobs in Michigan and help stem the brain drain by ensuring that our talented workers can stay here in Michigan. It also provides excellent opportunities for our high-technology electrical workers, operating engineers, and other skilled trades.”

Governor Snyder’s press secretary, when asked if Snyder would sign the bills, commented that the governor plans to thoroughly review the bills before making his decision.

posted by PAA Online , Friday, December 18, 2015 11:19 AM
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Campaign Finance Bill Passed

Legislation aimed at clarifying campaign finance rules and establishing changes passed both chambers and heads to the governor for approval.

SB 571 offers several changes. The bill would prohibit public bodies from using public resources for communications 60 days prior to an election. It also codifies Department of State interpretations that identification and disclaimer are separate requirements. A candidate committee would be able to use a contribution that is not designated for a particular election cycle to help alleviate outstanding debts and obligations, and eliminates February filing deadlines for independent committees or political action committees. Campaign statement filing deadlines in the bill applying to candidate committees would be clarified and would require that a committee’s statement of organization include an email address. The Department of State is required to post on its website all dispositive materials regarding complaints about violations and alleged violations within 45 days. Language also clarifies an organization can include a request for a donation to their political action committee on the same form used to request dues.

Representative Lisa Posthumus Lyons (R-Alto) proposed amendments, which were adoped, that would outline that the treasurer of an incumbent judge or justice following their election or appointment are not required to file a written statement explaining the committee does not expect to receive or use an amount over $1,000.

The House adopted a floor substitute that took the bill from 12 to 53 pages. Democrats challenged this substitute as not being germane. Additionally, Minority Floor Leader Sam Singh (D-East Lansing) commented the Democrats were unable to amend the legislation because the substitute was not made available to them.

SB 571 passed the House 58-48 and the Senate 25-12.

posted by PAA Online , 11:18 AM
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Straight Ticket Voting Eliminated

House legislators passed SB 13, a bill eliminating the straight ticket option on ballots, in their last voting session before adjourning for the remainder of the year. Formal session will resume January 13.

SB 13 was at one point tie-barred to HB 4724, a bill allowing no-reason absentee ballot providing the voter picked up the ballot in person at a clerk’s office, but Senate Republicans broke the tie and passed SB 13 independently. Once back at the House, House Republicans concurred with the changes and straight-ticket elimination passed with no additional mention of no-reason absentee.

Main opponents of the legislation are Democratic legislators who feel the bill will create longer lines and is a tactic by Republicans to micro-manage voters. Statistically, straight ticket voting has aided Democrats more than Republicans. Republicans responded in other states there is minimal effect on voting lines. 40 other states currently do not offer a straight ticket option on their ballots.

SB 13 heads to Governor Snyder’s desk. No official stance has been released, but it is anticipated the governor will sign.

posted by PAA Online , 11:17 AM
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GM MEGA Credit Is Capped

The Michigan Strategic Fund board unanimously supported an amended agreement with General Motors to place a cap on its Michigan Economic Growth Authority credit the state provided in 2009. The details of this agreement have not been made available to the public. It was revealed that the state’s obligations under this credit would be capped as well, and include credits already issued.

General Motors becomes the last of the Detroit three automakers to engineer a deal with the state such as this. Fiat Chrysler Automobiles’ credit was capped at $1.9 billion for the entire life of the credit and $1.71 billion for the remaining duration of the credit. Ford Motor Company two credits were combined into one for a cap of $2.3 billion during the life of the credit.

The agreement with GM would reduce the state’s costs and would not increase any liability to the company. The Michigan Economic Development Corporation (MEDC) estimated the outstanding MEGA credit liability at $9.38 billion. After crafting the agreements with Chrysler, Ford, and GM, CEO of MEDC Steve Arwood commented he hopes this number will decrease.

posted by PAA Online , 11:16 AM
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PAAdvisory Briefs

State Continues to Sponsor Comerica Park

The Michigan Strategic Fund Board approved sponsorship agreements to continue featuring the Pure Michigan logo at Comerica Park and keep the main NASCAR race at the Michigan International Speedway the Pure Michigan 400. The board committed $325,000 a year for the next three fiscal years for the Comerica Park sponsorship. For the Pure Michigan 400 title sponsor, the state committed $700,000 for the 2016 race and $725,000 for 2017.

Winslow President of Restaurant Association

Justin Winslow, interim president and CEO of the Michigan Restaurant Association, has officially been named the organization’s president and CEO. Mr. Winslow has also served as a former legislative aid and was the chief lobbyist for the association for many years.

Unemployment Rate at 5.1 Percent

Michigan’s unemployment rate rose to 5.1 percent after an influx of people entering Michigan’s workforce. The October rate was 5 percent. 21,000 more people joined the workforce in November with the total labor force at 4.764 million. November’s jobless rate still remains lower than the 2015 average jobless rate of 5.4 percent. The 2014 rate was 7.3 percent.

Snyder Signs Retired Teacher Bill

Governor Snyder signed HB 4059, a bill that allows retired teachers to serve as substitutes. This negates an outstanding law that prohibits retired school employees from returning to work on a contract or part-time basis. In a statement, Governor Snyder commented he feels retired educators are an asset to the state and should be back in the classroom to fill critical shortage areas with their knowledge and expertise.

posted by PAA Online , 11:14 AM
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