Under the Dome

Capitol Update, June 1-June 24, 2010

Cynthia Ann Paul

House Labor Committee Took Up Urban Cooperation Act Reform-The House Labor Committee Took up a package of bills (SB 1085, SB 1086) that would enable local governments interested in merging to provide a shared service to avoid having to pay the highest rate to both communities’ employees. The committee amended the bill to keep employees whole with respect to sonority, wages, and benefits for those employees until a new collective bargaining agreement is entered into.  This package passed the Senate nearly unanimously by a vote of 32/2.

Public Transit- The House passed a two-bill package requiring local governments to consider public transportation in their master plans, HBs 5211 and 5212. Both bills passed the House 69-37.  Legislation allowing the creation of municipal study committees to look at public transit issues (HBs 5977 and 5979) was reported out of the Intergovernmental and Regional Affairs Committee.

Driver Responsibility Fee Cuts Taken up in the Senate- The Senate Judiciary took up a bill that would eliminate the fee for those who drive without a valid license or without proof of insurance.  The bill would also allow those assessed multiyear fines to pay both years at once and would allow those with delinquent fine to pay 75% during a set window and have the fine, and any later fees considered paid.   Eliminating the above fine categories would cost the state $23.6 million and the one time amnesty portion would cost the state $8.5 million.  A complete repeal would cost the state $120 million in the general fund and $ 8million to the fire protection fund.

MIS Gets Tax Credit Extension- The Michigan International Speedway's business tax credit was extended until 2016 and would set the annual limit to $1.5 million, HB 6235.  This bill passed the House by 92-12.

House Appropriations Reports Out Alternative Incarceration Sunset Removal- The House Appropriations committee reported out a substitute for HB 4538 that removes the sunset on the special alternative incarceration program within the Department of Corrections, allowing the department to avoid opening two correctional facilities, saving the state $32 million in 2011 and $49 million in 2012.  This bill is currently on the House floor.

Senior Financial Protection- The House Senior Health, Security and Retirement Committee reported out a package of bills to provide senior citizens greater protections against financial exploitation.  It requires financial institutions to provide customers with a disclosure that both parties can access joint accounts and requires bank employee to report if they suspect a senior citizen is a victim of financial exploitation.

House Education Committee Kicks out College Training Pay- House Education Committee reported out HB 5957 that amends the law allowing community colleges that partner w/ local businesses to offer job training programs to new employees.  This training is finance from directing income tax withholdings to the colleges instead of state coffers, which in turn the colleges can use to issue bonds.  Under current law a new employee has to be paid 175% of the state minimum wage, $12.95 per hour, the new law changes this to 150% of the federal minimum wage, $10.88 per hour, but the employers must provide healthcare benefits.

Senate Education Committee Reports out School Gun Safety and Firefighter Training Courses- The Senate Education reported out SB 1402 that would enable schools to offer gun safety courses, the Department of Education would develop a model program based upon a course by the NRA.  Schools would also be able to offer beginning firefighter training for credit and the department would have to approve of the program for it to count toward high school graduation, under SB 1077.

108 Schools Eligible for Federal Money- Some 108 schools, including 49 in Detroit are eligible for $119 million in federal funds designed to help boost student performance.  An eligible school can apply for $2-million over two years.  This was part of the 2009 stimulus money.

Race to the Top AG Opinion- The Attorney General issued an opinion clarifying the new section of the Race to the Top Law that requires school employers to provide non-instructional school employees an opportunity to bid on a third party contract for those services on an equal basis as other bidders, or else they forfeit the following prohibitions under PERA: The decision of whether or not to contract out non-instructional school work; the procedures for obtaining the contract; the identity of the third party; the impact of the contract on individual employees or the bargaining unit. Thus, these would become negotiable issues.

MEA Files Lawsuit Against School Retirement Bill-  MEA has filed a lawsuit in the court of claims seeking injunctive relief, challenging the provision in the retirement bill that requires school employees who do not take the retirement to pay 3% of their wages into the IRS 115 Trust.  The complaint contends that it violates the contract formed when the Michigan Public School Employees Retirement System was set up in 1980, it is an impairment of existing contracts and abridges the pension system's financial liabilities.  AFSCME will soon be filing a similar lawsuit and will include all of the above, plus, a unique takings argument.

Binding Arbitration Reform Bills- The House Labor Committee reported out SB 1072 and House Bill 6154.

• SB 1072 helps to streamline the binding arbitration process by putting a six-month time limit on resolving the arbitration and requiring that when a dispute is certified a mediator must create a list of issues to present to the arbitrator.  It also clarifies the law to cover fire and police authorities.  This bill has passed the House by a vote of 62/42, with Geiss, Bledsoe and Robert Jones being the only Democrats opposing it and Republicans, Horn, Walsh and Rocca supporting it.

• House Bill 6154- Creates a separate act to provide county correctional officers binding arbitration rights similar to PA 312.  This also remains on the House floor.

House Great Lakes and Environment Committee Reports out Constitutional Ban on Drilling in the Great Lakes- The House Great Lakes and Environment Committee Reported out a Constitutional Ban on drilling for oil or natural gas in the great lakes, HJR GGG. The Committee also approved a measure urging other great lakes states and the province of Ontario to ban any new oil and gas drilling in the lakes and include a ban in the Great Lakes Water Quality Agreement, HR 303, HR 306, HCR 59 and HCR 60.

House Ethics and Elections Report Out and House Passed Criminal Oust Bill- Senate Joint Resolution V, which prohibits someone convicted in the past 20 years of a felony involving the breach of the public trust ineligible for state or local office, as well as any position with government where he or she would be in a policymaking role or have discretionary authority over public assets was reported out of the House Ethics and Elections Committee and passed the House.  Therefore it will be before the voters on November's ballot.

House Ethics and Elections Reports out and House Passed Independent Expenditure Reform Legislation- This bill package is intended to counter the Citizens United Supreme Court Case.  It requires corporations to disclose what they spent and take credit for any independent expenditures by reporting them.  Corporations would also be required to have the approval of investors to spend money on political campaigns and those investors could be liable for fines if there are any campaign finance violations.  Any company with foreign investors would not be able to make campaign contributions, nor would any receiving state or federal grants or contracts.  Ads sponsored by a company would have to clearly state the source of the ad, including disclaimer by the chief executive.  It prohibits corporations and unions from giving to a ballot initiative in violation of the above provisions.  Both unions and corporations would be imposed w/ an additional penalty of 4 X the independent expenditure for any independent expenditure in violation of the entire campaign finance act, (HBs 6182-6188).  This passed the House along party lines.

Senate Health Policy Committee Reports out Michigan Health Services Advisory Commission- to develop recommendations on changes needed to comply with or avoid, the new federal health care plan and would allow Blue Cross Blue Shield (BCBS) of Michigan to begin using behaviors, such as smoking, in setting rates on all of its policies, SBs 1242 and 1243.  Rep. Jacobs offered an amendment to strip out language that would allow the state to opt out of the federal health care reform.  The committee did strip out language that would allow BCBS to rate based upon age.  This bill package is currently on the Senate Floor.

House Abolishes Homeowner Construction Lien- The House passed a package of bills nearly unanimously that abolishes the Homeowner Construction Lien Recovery Act, HBs 5830-5834. HB 5830 would amend the Construction Lien Act to repeal provisions concerning the Homeowner Construction Lien Recovery Fund (HCLRF), which is essentially insolvent and cannot meet the demand for claims from the fund.  HB5831-5834 amends various building trades licensing acts to delete requirements that contractors pay into the HCLRF.  HB 5835 amends the Code of Criminal Procedure concerning the penalty for making false statements to receive payment from the HCLRF.  House Bill 5830 is tie-barred to all of the other bills, which are, in turn, tie-barred to HB 5830. 

House Democrats Proposed 2010 Budget Fix- House Democrats presented a budget proposal to close the $300 million general fund deficit for this current year, by tapping into available federal Medicaid matching dollars from a change in rates due to GMs VEBA, as well as another $94 million in other federal health care dollars.  

Kilpatrick Indicted on Federal Charges-The former Detroit Mayor currently serving a 14 month prison sentence was additional indicted on 19 federal charges involving mail fraud and tax evasion.

Senate Approves New State Police Head- The Senate unanimously approved the appointment of Eddie Washington as the new director of the Department of State Police.

 Constitutional Convention- On November 2, 2010, Michigan voters will be asked to decide if they want a Constitutional Convention to rewrite Michigan’s Constitution. 

Federal Level:

Jobs Bill Fails in the Senate- In its third attempt the Senate failed to garner enough votes to break the Senate Republican Filibuster (60) votes to extend federal unemployment benefits and the enhanced FMP.  The vote was 57/41 with Senator Ben Nelson voting with Republicans.  This bill would have provided $16 billion to the states for fiscal relief through an extension of the enhanced Medicaid match, including an estimated $380 million for Michigan.  Michigan’s unfinished state budget that starts Oct. 1 anticipated more than $500 million from the enhanced Medicaid match.  It also means that 1.3 million Americans will lose their benefits at the end of this week.

Domestic Partners Access Rights in Hospitals- The Centers for Medicare & Medicaid Services (CMS) today proposed new rules for hospitals that would protect patients’ rights to choose their own visitors during a hospital stay, including visitors who are same-sex domestic partners.  The new proposed rules implement an April 15, 2010, Presidential memorandum, in which the President tasked HHS with developing proposed standards for Medicare- and Medicaid-participating hospitals (including critical access hospitals) that would require them to preserve the rights of all patients to choose who may visit them when they are inpatients of a facility. Specifically, the proposed rules would add new requirements for hospitals and critical access hospitals to explain to all patients their right to choose who may visit them during their inpatient stay, regardless of whether the visitor is a family member, a spouse, or a domestic partner (including a same-sex domestic partner), as well as the right to withdraw such consent at any time.

Children Clarified Under the FMLA to Include Domestic Partners-The U.S. Department of Labor today clarified the definition of "son and daughter" under the Family and Medical Leave Act to ensure that an employee who assumes the role of caring for a child receives parental rights to family leave regardless of the legal or biological relationship. The FMLA allows workers to take up to 12 weeks of unpaid leave during any 12-month period to care for loved ones or themselves.  The 1993 law also allows employees to take time off for the adoption or the birth of a child.  The administrative interpretation issued by Nancy J. Leppink, deputy administrator of the department's Wage and Hour Division, "clarifies that these rights, which provide work-family balance, extend to the various parenting relationships that exist in today's world.  This action is a victory for many non-traditional families, including families in the lesbian-gay-bisexual-transgender community, who often in the past have been denied leave to care for their loved ones."