Detroit Public Schools Trust Fund Moves to Senate Floor

The Senate Appropriations Committee reported a bill creating the Detroit Public Schools Trust Fund to the full Senate on Wednesday.

SB 895 does not include an appropriation, however bill sponsor Senator Geoff Hansen (R-Hart) commented the bill would be a vehicle for SB 819, a bill that provides per-pupil allocations to what would be the Detroit Community Schools. Senator Hansen added the specific allocations are dependent on a House and Senate agreement of what the future Detroit Public Schools (DPS) looks like, both financially and operationally. Several members of the Senate have expressed concerns regarding the House proposal, feeling the primary focus is away from the students.

Governor Rick Snyder has recommended earmarking $72 million annually from tobacco settlement revenue to the district over a period of 10 years. The full Senate plan includes $715 million to pay down the district’s debt and provides $200 million in transition costs for a new school district. In addition, a Detroit Education Commission will be established to oversee school openings.

Over the weekend, AT&T announced its support for the Senate plan, joining the Detroit Regional Chamber of Commerce and Business Leaders for Michigan. President of AT&T Michigan, Jim Murray, voiced the company’s support to the Detroit News saying that this plan is one of the rare bipartisan legislative efforts efforts for DPS.

posted by PAA Online , Friday, May 20, 2016 11:21 AM
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Federal Overtime Regulations Unveiled

The US Department of Labor (DOL) issued its final overtime rule this week, making a change to the minimum salary paid to qualify an employee as exempt from overtime requirements set by the federal Fair Labor Standards Act (FLSA).

The DOL made the change from $23,660 annually, or $455 per week to $47,476 annually, or $913 per week. The rule includes no carve-outs and takes effect December 1, 2016. The salary threshold is tied to the 40^th percentile for full-time salaried workers in the lowest income census region and updated every three years. In addition, the salary level for employees who qualify for the highly compensated employee exemption rises from $100,000 per year to $134,004 per year beginning in December 2016, the rate equating to the 90^th percentile of full-time salaried workers nationally.

The DOL estimates that over 100,000 employees will become eligible for overtime when the rule takes effect. Some job providers can manage their compliance costs by absorbing the cost of the increase by either paying more employees overtime or increasing their salaries to over $47,476. Employers can also consider converting employees from exempt status to hourly therefore eliminating overtime hours or adjusting other fringe benefit packages.

The Michigan Chamber of Commerce recommends employers seek legal help if looking to manage their costs.

posted by PAA Online , 11:20 AM
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House Immunity Waived

House staff members, including the general counsel, will be subject to testify at the preliminary hearing for former Representatives Todd Courser and Cindy Gamrat. This decision comes after much debate regarding the immunity provided in the speech and debate clause of the Constitution.

Dickinson Wright attorney Ryan Shannon commented the staffers are not required to testify under this constitutional provision, however the Department of Attorney General disagreed stating the House waived those privileges when approving HR 145. Judge Hugh Clark Jr. in the 54-A District Court, ruled House Speaker Kevin Cotter (R-Mount Pleasant) may have to testify and that he was not convinced by the argument. After negotiations, Mr. Shannon and attorneys with the Department of Attorney General Denise Hart and Gregory Townsend agreed to have staff members, with the exception of Brock Swartzle and Hassan Beydoun, testify, but are not waiving Constitutional protections.

Staffers testifying include House Business Office Director Tim Bowlin, House financial operations director Deborah Wroubel, House Clerk Gary Randall, and Doug Simon who was director of committee clerks during the Courser-Gamrat proceedings. The preliminary exam is scheduled for May 25^th and May 26^th at 9 a.m.

Attorney General Bill Schuette has filed one count of perjury against Mr. Courser in relation to his select committee testimony and three felony counts of misconduct in the office. Those three counts are for asking a staffer to sign a blue back, lying to the House Business Office investigators and asking a staffer to send a false flag email. Ms. Gamrat has been charged with two felony charges of misconduct in the office for also instructing a staffer to sign a blue back and lying to the House Business Office investigators.

posted by PAA Online , 11:20 AM
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Petition Signature Bill Passed

The House passed Senate legislation on Wednesday that prohibits the state from counting signatures for ballot proposals and constitutional amendments outside the 180-day window.

SB 776 passed 57-52 with House Democrats and Republican legislators Representative John Bizon (R-Battle Creek), Representative Edward Canfield (R-Sebewaing), Representative Martin Howrylak (R-Troy), Representative Holly Hughes (R-White River Township), Representative Ed McBroom (R-Vulcan) and Representative Lisa Posthumus Lyons (R-Alto) voting against the measure. The House Elections Committee adopted an amendment to extend the effective date to January 1, 2017, however the House passed the Senate version of the bill that does not include this language.

Starting immediately, petition signatures collected more than 180 days before the constitutional amendments or initiated legislation proposals are turned into the state will not be counted. House Minority Floor Leader Sam Singh (D-East Lansing) attempted two amendments to reinstate the 2017 language into the bill, but was unsuccessful. Representative Singh also tried to get a roll call vote on the immediate effect on the bill, stating the two-thirds threshold was not met.

SB 776 has been sent to Governor Rick Snyder for approval.

posted by PAA Online , 11:19 AM
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PAAdvisory Briefs

House to Remain in Session During Mackinac Conference

House members will be most likely unable to attend the Detroit Regional Chamber’s Mackinac Policy Conference in two weeks due to the House following their typical Tuesday-Wednesday-Thursday session schedule. In the past, neither the House nor the Senate would meet on Thursday, allowing legislators to attend part of the conference if they wish. Currently, the Senate has a tentative session scheduled on Thursday, but are not expected to meet.

Oral Health Coalition Reveals New Plan

The Oral Health Coalition and the Department of Health and Human Services announced a 2020 Michigan State Oral Health Plan aimed at increasing access to oral health care to underserved populations, awareness of the importance of oral health and the integration of oral health, medical and social service providers. Chair of the Oral Health Coalition board Carol Lutey said this plan will serve as a roadmap to better health care initiatives in the next five years.

Kraft Heinz Company Expands

With the help of a strategic fund grant, the Grey Poupon mustard brand will expand its Holland facilities and be produced solely in Michigan. The Kraft Heinz Company is expected to create 50 jobs in Holland and generate $17.2 million in private investment. The company is receiving a $500,000 performance based grant for the expansion.

Veteran Ombudsman Bill

The Senate unanimously passed SB 809, establishing a veterans’ ombudsman. The legislation follows an audit of the Grand Rapids Home for Veterans that was deemed not sufficient on member care services and moderately effective on investigating complaints. Changes made to an earlier version of the bill include language that clarifies the ombudsman is not required to conduct an investigation on a complaint and expands the definition of a residential veteran.

posted by PAA Online , 11:18 AM
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