Under the Dome
Capitol Update, August 8 through October 12, 2009
Cynthia A. Paul
Detroit Living Wage Ordinance- Court of Appeals decision affirmed Circuit Court Judge’s Cynthia Stephen’s decision that the Lennane case is still precedent and controlling, but, views the Lennane decision as obsolete because of subsequent constitutional and legal developments and encouraged the Supreme Court to revisit and reconsider this issue.
Press Conference on State Employee Benefits- Releasing his study, Charles Ballard, a Michigan State University economics professor, said he wanted to debunk the myths that state workers receive lavish pay and benefits as policymakers make difficult decisions regarding the budget. The study compared state worker pay to that of the private sector, finding that public employees earn less on average than their private sector counterparts, particularly when education is considered. It also found that the state workforce shrank by 11,000. Combining that with savings in wages, including essentially a 2.4 percent cut with the six furlough days in the current fiscal year, the state saved $3.3 billion over the past eight years. A doubling of state worker health care premiums and earlier changes to the pension system made up the remaining $443 million.
CA Will Not Be Sending Prisoners to Standish- California Corrections Secretary Matthew Cate told Michigan Corrections Director Patricia Caruso in a letter late Monday that they will not be sending prisoners to the Standish Maximum Correctional Facility.
House Labor Committee Takes Up and Reported Out Correctional Officer Early Out Bill (HB 5197)- Isbe aimed at preventing layoffs of correctional officers due to the closure of more prisons. The measure would create an early retirement program for “covered” state employees that would include just correctional officers. Under the measure, those workers whose age and years of service equal at least 70 would be eligible for early retirement, and their retirement allowance would be based on a factor of 2 percent of their final compensation multiplied by their years of service until they turn 62 and afterwards would be based on a factor of 1.75 percent times their years of service. Currently, the retirement factor for retirees 62 and older is 1.5 percent of their compensation times their years of service. The bill also sets the time for the early retirement program from September 1 to December 31, 2010. Supporters of the bill said the extended period was to ensure that experienced workers could take over some of the jobs where officials now would likely retire. It was reported out of on a 6-4 vote with Democrats lined up in favor and Republicans opposing it. Please take action at http://seiuaction.org/campaign/supporthb5197earlyout
Public Employee Pooling Committee Set up- Byrnes chairing it with 12 back-up singers. House Speaker Andy Dillon appointed the other 12 members of the new Public Employee Healthcare Reform Committee to join Chairwoman Ms Byrnes (D-Chelsea), majority vice chair Rep. Tim Melton, Rep. Harold Haugh, Rep. Bert Johnson, Rep. Michael Lahti, Rep. Daniel Scripps, Rep. Kate Segal, Rep. Woodrow Stanley, minority vice chair Rep. Phil Pavlov, Rep. James Bolger, Rep. Bob Genetski II, Rep. Matt Lori and Rep. Bill Rogers.
House Judiciary Takes up Anti-Discrimination Package (HB 4192)- House Judiciary committee took up legislation that would extend the state’s anti-discrimination law to include protections for people based on their sexual orientation or gender identity. Under current law, discrimination based on religion, race, color, national origin, age, sex, height, weight, familial, marital or Vietnam veteran status is prohibited. Sixteen cities in Michigan and 33 other states spell out anti-discrimination protections for sexual orientation or gender identity.
Boot Camp Legislation- House Bill 5311 amends the Corrections Code (MCL 791.234a) to eliminate a sunset of September 30, 2009 on prisoner participation in the special alternative incarceration (SAI, or "boot camp") program. The Department of Corrections (DOC) estimates that continued use of this alternative incarceration program will save the state approximately $40 million per year.
Public Pension Disclosure Package Testimony Taken- The House Intergovernmental and Regional Affairs committee took testimony, but did not vote on HB 518, HB 5182, HB 5184 and HB 5214, this package of bills would require greater disclosure of spending by public pension boards, including travel expenses, received its first hearing Tuesday before the Committee.
Air Quality Fees- HB 5220 was discharged from the Appropriations Committee without a hearing and substituted on the floor. The legislation calls for the state’s air emission fees to be extended until 2013 – two years more than the current law – as well as increase the cost of those permits. This is absolutely needed for the air quality program to continue operations and take on the additional federal CO2 standards, SEIU Local 517M has approximately 121 people in the air quality program.
Wetlands Bill- The wetlands program was saved under HB 5463 and SB 785 that require the Department of Environmental Quality to work with the U.S. Army Corps of Engineers to take over some of the permitting the federal agency does on the Great Lakes and other navigable waters in the state. The DEQ would also work with the U.S. Environmental Protection Agency to expand the types of discharges that are exempt from federal permits. But the plan also requires that restricted funds be enacted to replace the current general fund support before any changes to the program are implemented. The bills create a Wetland Advisory Council, appointed by the governor, charged with finding ways to make the program more efficient and to have it work more cooperatively with federal agencies. The council is also charged with providing ideas to help homeowners and non-profit groups obtain permits. The bills also would require designation of up to 5,000 acres of land suitable for cranberry production in the state and sets 0out some of the processes for working with cranberry farmers. Substituting the bills on the House floor, Rep. Dan Scripps (D-Leland) said the legislation represents a compromise between the agricultural and environmental industries. It allows the state to continue its wetlands program while bringing greater accountability on how the Department of Environmental Quality processes permits. It passed the House 106-2, the Senate bill was enrolled after that chamber voted to accept the House changes by a 34-0 vote. But the bills, while not tie-barred, are reliant on lawmakers agreeing on a way to fund the wetlands program for a full year. Under HB 4446, which authorizes 2009-10 spending for the DEQ and Department of Natural Resources, the wetlands program was only funded for three months through the use of restricted funds paid for with uncollected bottle return monies.
HAL Eliminated through Two Executive Orders- Gov. Granholm issued an Executive Order (EO 2009-36) abolishing Department of History Arts and Libraries (HAL) effective October 1 and distributed its functions to different departments. The Senate rejected Governor Granholm’s executive order to eliminate HAL and disperse its programs among several state departments (20-14) with Senator Anderson and Thomas joining Senate Republicans. Days before the legislative deadline to reject her executive order to abolish HAL, Governor Granholm issued a new executive order providing stronger protections to ensure the Library of Michigan collections stay intact, that electronic services remain available and that the library and the State Historical Center remain open and accessible. The new Executive Order is EO 2009-43.
DEQ/DNR Merged Again-Governor Granholm issued orders (E.O. 2009-44 and E.O. 2009-45) creating a new Department of Natural Resources and Environment to encompass the duties of the current departments of Environmental Quality and Natural Resources as well as some functions of the Department of Agriculture. Administration officials estimated the changes, which would be effective January 16 unless rejected by the Legislature within 60 days, would save as much as $1.5 million through efficiencies and reduced duplication among the departments. The orders expand the duties of the Natural Resources Commission, but take away its authority to appoint the department director. They also vest that appointment authority from the Commission of Agriculture in its department with the governor. The move does not, however, merge the agriculture department into the new agency. The department does lose a number of boards and commissions, as well as the Office of Racing Commissioner. Horse racing oversight is moved to the Gaming Control Board, with the board’s executive director overseeing the tracks. Ms. Granholm appointed Bruce Rasher of Ann Arbor, head of the global brownfield practice for CB Richard Ellis, to oversee weaving the two departments back together. The orders eliminate or consolidate a number of the boards and commissions, particularly within the DNR. The Natural Resources Commission, currently formally the Commission of Natural Resources, absorbs the duties of the Citizens Commission on State Parks and the Water Resources Conservation Advisory Council. The order creating the department (2009-45) also provides for the governor to select the chair of the commission, calling into question the tenure of the current chair, Keith Charters (R-Traverse City). The order does not change the terms of appointments of any of the sitting members of the commission. The decisions of the commission would remain independent of the director and could only be appealed to the courts. The various trails oversight boards are consolidated into a new Trails Advisory Council that would oversee snowmobile and off-road vehicle trails as well as footpaths owned or operated by the state. But the council will have an advisory workgroup to specifically deal with snowmobile trails. The order also revives the Environmental Science Review Board within the new department. But rather than a standing board as the former was, the board would be constituted to look at specific issues as needed by the director and would consist of seven people with expertise in the various sciences as needed for the issue. From the DEQ, the Site Review Board is abolished and its duties are moved to the department. The Climate Action Council and the Aquatic Nuisance Species Council are eliminated (EO 2009-44). In the Department of Agriculture, the Agricultural Preservation Fund Board, the Family Farm Development Authority, and the Pesticide Advisory Committee are eliminated with the functions moved to the department. Ms. Granholm also altered the Great Lakes Wind Council, changing its membership to accommodate the loss of the DNR and DEQ directors and the gain of the DNRE director.
Agriculture Regional Offices Closed- Those wanting to reach the Department of Agriculture will have to call Lansing after the agency closed its offices outside the capital city. The department still has staff across the state, but they are working from home as of October 1. Regional offices in Detroit, Escanaba, Grand Rapids, Lansing, Saginaw, St. Joseph, and Traverse City, as well as the district office in Marquette, closed last week as part of an effort to save $600,000 in the current fiscal year. In place of the offices, residents can call (800) 292-3939 or email mda-info@michigan.gov to reach regional staff. Complaints are accepted at www.michigan.gov/mdacomplaints. The department also set up post office boxes for nursery fees (Michigan Dept. of Agriculture, PO Box 30746, Lansing, MI 48909) and other fees (Michigan Dept. of Agriculture, PO Box 30776, Lansing, MI 48909)
Credit Scoring Before Michigan’s the Supreme Court-The state said insurance companies have no legal authority to use credit scoring to help set rates, but insurance companies argued that to allow the Office of Financial and Insurance Regulation to bar the practice would allow the executive branch greater power than was intended constitutionally. The issue in the case dealt with one of the biggest consumer protection issues of Governor Granholm in 2003, she enacted a ban on the use of credit scores to set rates. The issue has had tremendous resonance in urban areas where residents tend to be poorer, have lower credit scores and already have much higher insurance rates. After efforts to reach an agreement with the Legislature on a ban failed, OFIR issued a rule banning the use of credit scoring. A circuit court ruled the agency was unable to make the rule, and issued an injunction against the rule. In a divided case, the Court of Appeals upheld the rule.
Kriener Case to be Tested by the Supreme Court- The court issued an order allowing an appeal to be made on a case that could overturn the Kreiner decision. The court issued the order in McCormick v. Carrier and Allied Automotive Group (SC docket 136738) over the objections of Justice Maura Corrigan who said the court decided to allow the appeal, on a 4-3 vote, simply because former Chief Justice Clifford Taylor was replaced by Justice Diane Hathaway in last year’s elections. Friday’s order in the case reverses an order the Supreme Court issued in October 2008 rejecting an appeal in the case. In the case, both the trial court and the Court of Appeals rejected Rodney McCormick’s argument that he is entitled to pain and suffering benefits based on injuries to his ankle because of the 2004 ruling in Kreiner. Richard Kreiner’s case was the lead in a consolidated review of the issue of noneconomic damages arising under the automotive no-fault law. The decision was issued on a 4-3 vote with Mr. Taylor writing the majority decision holding that noneconomic damages are not justified unless it can be shown the injuries caused a major impairment of a physical function that limits an individual’s normal course of life.
Bennett Recovering from a Brain Hemorrhage- Rep. Doug Bennett is in stable condition after suffering a brain hemorrhage.
Rep. Nerat Fighting Cancer- Rep. Judy Nerat (D-Wallace) has been diagnosed with multiple myeloma and is receiving treatment at Froedtert Hospital in Milwaukee, she said in a statement Wednesday.
Governor Granholm Recall Effort- The Ingham County Elections Commission approved Gov. Granholm's recall petition on a 2-1 vote. It is being spearheaded by Mr. Piche of Omer alleges Ms. Granholm neglected her duties by laying off Department of State Police troopers at the same time she is proposing releasing more prison inmates on parole. This is the Standish Maximum Security Prison corrections officer’s fourth attempt to have a recall petition approved and technically the eighth he had presented. The elections commission, which conducts clarity hearings on any recall petitions for statewide officials like the governor, had found the prior petitions unclear on their reasoning for the recall. This effort will at least have spiritual support from the Michigan Republican Party.