LARA and TIA Changes

Governor Rick Snyder made some leadership changes in both the Talent Investment Agency (TIA) and the Department of Licensing and Regulatory Affairs (LARA) on Wednesday.

Stephanie Comai, previous head of the Talent Investment Agency, will now join the Department of Licensing and Regulatory Affairs to become part of a new leadership team. Director Shelly Edgerton will remain as director of LARA. Replacing Ms. Comai as the director of TIA will be Wanda Stokes. Ms. Stokes is a current deputy director at LARA and her responsibilities included litigation risk management and providing oversight to the Bureau of Employment Relations, the Michigan Administrative Hearing System, the Michigan Occupational Safety and Health Administration, the Workers’ Compensation Agency and administration of the Freedom of Information Act.

Ms. Stokes new responsibilities at TIA will include helping the Unemployment Insurance Agency and the Workforce Development Agency. Ms. Comai’s new responsibilities have not been determined, as the agency is in the process of reorganizing.

posted by PAA Online , Friday, July 22, 2016 10:43 AM
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Straight Ticket Voting Halted

U.S. District Judge Gershwin Drain placed a preliminary injunction on PA 268 of 2015, legislation that would eliminate the straight ticket voting option on the August 2016 election ballot.

Justice Drain felt this law could have disproportionate affects on African-American voters, as they are more likely to use the straight ticket option. In his decision he sighted data submitted that read of the 15 cities in Michigan where at least 65 percent of voters used the straight ticket option, only two were majority white. He also allowed for the party vignettes to remain on the ballot.

Several Democrats, including House Minority Leader Tim Greimel (D-Auburn Hills), praised Judge Drain on his decision. Several Republicans, including sponsor of the bill Senator Marty Knollenberg (R-Troy), opposed the decision.

John Sellek, a spokesperson for Attorney General Bill Schuette, commented Mr. Schuette and Secretary of State Ruth Johnson planned to file an appeal to the 6^th U.S. Circuit Court of Appeals.

posted by PAA Online , 10:43 AM
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Loan Board Rejects DPS Board Plan

The Local Emergency Financial Assistance Loan Board approved three resolutions to transfer assets from the Detroit Public Schools (DPS) to the new Detroit Community Schools and to allow bonds for some refinancing and start-up funds for the district.

DPS board members and members of the community urged the loan board to reject the proposals and instead, have the state borrow the $235 million and give it to the district rather than transferring the assets and refinancing existing debt. Among complaints are the potential of an up to 18 percent interest rate in a bonding provision. In response, Treasurer and chair of the loan board Nick Khouri said the interest rate would likely be market for the district at between 2 and 4 percent.

Aside from Mr. Khouri’s remarks, the board held no discussion before adopting the resolutions.

posted by PAA Online , 10:42 AM
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PAAdvisory Briefs

Transportation Refund Bonds

The state has gone to the market with a $607 million bond refunding issue to pay off transportation bonds and provide for potential improvements. The state anticipates $600 million in new revenues for road and transportation projects from the bonds. Coupled with transfers out of the General Fund and gas and registration tax increases, there is an expected $1.2 billion in revenues when fully implemented. The bonds do not carry the full faith and credit of the state, and are slated for numerous maturity dates, beginning March 2018 and ending March 2027.

Employment and Unemployment Rates Fall

Michigan’s unemployment rate fell by 0.1 percent in June to 4.6 percent due to a shrinking labor force. The Department of Technology, Management and Budget released data showing the total employment for the month of June fell by 25,000. There was a 5,000 drop in unemployment as well, creating the 0.1 percent decline in rate.

DNC Speakers

The Democratic National Convention is being held next week in Philadelphia and several local figures are expected to be present. Hillary Clinton’s campaign has confirmed that Detroit Mayor Mike Duggan, former Governor Jennifer Granholm, and Flint Mayor Karen Weaver are expected to speak at the convention. Details surrounding the dates and topics of the speeches have not been released.

Tobacco Tax Decision

The Court of Appeals ruled on Friday that Michigan’s tobacco tax act is not vague, officially overturning a Wayne County Circuit Court decision. In the case, Fady Assy was found not having proper documentation for tobacco at a hookah shop he managed and was charged with manufacturing tobacco products without a license and possession exceeding $250 without proper invoices. The trial court rejected the case stating the law was too vague, to which Judge Michael Riordan, Judge Henry Saad and Judge Michael Kelly concurred there was nothing vague regarding the law, rejecting the trial court’s claim.

posted by PAA Online , 10:41 AM
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