Under the Dome

Capitol Update, October 16 through December 10, 2010

Cynthia A. Paul

Public Employee Pension Restrictions (Geiss)- House Bills 6332-6335 sponsored by Rep. Geiss would have amended the defined pensions for all local government employees, capping it at 55% of their base pay and prohibiting overtime, accrued sick leave, bonus pay, health insurance cost or other fringe benefits or one time lump sum payments from being utilized in determining the base pay calculation. Rep. Geiss withdrew his bills after nine hours of negotiation and kudos to Lynda Roberts (Secretary Treasurer of Local 517m) for her call.

Detroit Police and Firefighter Pension (HB 4917)- Sponsored by Representative Durhal, prohibits a charter of a city, village, or township with a population of 500,000 or more (Detroit) specifies the selection of a retiree member of the fire department, police department or a combined department pension or retirement board, the method of selection of that member would be a prohibited subject of bargaining. Thus, hamstringing the involved unions ability to solve problems through the collective bargaining process and opening up the Public Employee Relations Act (PERA).  This has passed both the House and Senate and has been ordered enrolled and presented to the Governor.

Binding Arbitration and Urban Cooperation Bills (SB 1072, 1085 and 1086)- SB 1072 would have amended PA 312 in PERA to shorten the arbitration time and require additional training of arbitrators as well as including local authorities under the purview PA 312 for police and firefighters. This passed the Senate, the House, but the Senate refused to transmit to the Governor for signing. They used this maneuver on the last day of session claiming that they would let the bill die unless the terms of the bill were renegotiated removing authorities and the employee protection language in the urban cooperation package (SB 1085-1086) was removed.  These bills died on the House and Senate floor.

Federal Education Money Disbursement-The House and Senate pass a new version of this bill, $246 million goes through the state funding formula with $222 per pupil going to the lowest funded districts and $111 going to the highest funded districts. The bill also includes $10 million of expected unspent money from the 2009-2010 school year to restore the $154 per pupil cut for all school districts. This has been sent to the Governor for her signature.

Robert Bobb Package (HB 6576-79)- This bill package was introduced by Representative Durhal for Robert Bobb, the Chief Financial Officer for Detroit Public Schools. The package would have used $400 million in tobacco securitization money to set up a trust fund that schools with a deficit could apply for to pay off their debts. Unfortunately, the bill contained negative reforms for school employees, including restricting seniority rights, tenure rights and other collective bargaining rights. This package died.

Tenure Package- SBs 1581 and 1582 would require teachers to be found effective under a new assessment program that ties teacher reviews to student performance to be granted tenure. Those with tenure found ineffective could be put under probation. Also, teachers would be automatically considered ineffective if the administrator does not complete the review on time. This package was reported out of the Senate Education Committee and died on the Senate floor.

Liquor Sales on Sunday- The Senate and House passed a bill allowing liquor sales on Sunday again, HB 6224. This new legislation passed the House 81-21 and the Senate 25-13 and omitted the language that Governor Granholm objected to in her veto message on the previously passed bill, that would have allowed restaurants to sell and deliver liquor at events they cater off-site and granted liquor licenses to a handful of community colleges and WMU. Under this current bill the sale liquor before noon would no longer be banned and would be legal unless a community voted to prohibit them. It would also shorten the prohibition ban during the Christmas holiday. The ban would only be from 11:59 on January 24th through noon on December 25th. Currently, it is banned from 9 PM January 24th through 7 AM December 26th. This has been sent to the Governor.

Unfunded Mandate Bill Package (HBs 5797, 5799, 5800 & 5801)- This bill package reflects the recommendations of the Commission on Unfunded mandates. It creates a fiscal note process to be conducted by a Local Government Mandate Panel, in order to determine if new legislation would require of local units any new or increased level of activities and services and, if so, the costs that would be imposed on local units as a result. Local units would not have to provide a new activity or service or an increased level of activity or service unless the state had prepared and published a fiscal note and provided for the funding of necessary costs to the local unit. It also requires the Mandate Panel, in consultation with local units of government, to adopt a process for monitoring the state's compliance with Section 29, Article IX, and to develop a process to review existing statutes and administrative rules and regulations imposing requirements on local units of government, as well as the state's compliance with funding obligations. This was taken up in House Judiciary Committee and reported out of committee and died on the House Floor.

Term Limits- The House Judiciary took up and reported out a bill that would revamp the current term limitations to allow legislators to serve a total of 14 years (HJR EEE), regardless of what chamber they serve, it would also require budgets to be adopted by July 1st. This was taken up in House Judiciary and reported out of committee and died on the House Floor.

Re-Districting Proposal (HB 5908)- The House Judiciary Committee took testimony on the Walsh bill that would turn the redistricting process over to the Legislative Service Bureau (LSB), LSB would get three tries at coming up with a plan that would have to pass both the House and Senate, if the third plan did not get adopted the House and Senate would be free to amend or substitute the plan. This never moved out of the Judiciary Committee.

Health Care Worker Criminal Background Check Bills Revamp- SB1253 would amend the Public Health Code to revise requirements related to criminal history checks of applicants for employment, an independent contract, or clinical privileges with a health facility or agency that is a nursing home, county medical care facility, hospice, hospital that provides swing bed services, home for the aged, or home health agency (AKA covered facility). Specifically, the bill would do the following: Eliminate a requirement that a person who has been the subject of a criminal history check undergo a new check when transferring to another covered facility under different ownership; and allow such a person also to transfer to an adult foster care facility or mental health facility without undergoing a new criminal history check. Require a covered facility or staffing agency to comply with the Code's criminal history check requirements if certain conditions regarding a previous criminal history check, continuous employment, and Michigan residency were not met. Require a covered facility or staffing agency that had made a good faith offer to an applicant to request criminal history record information from the relevant licensing or regulatory department and request that department to conduct a check of all relevant registries. Allow the facility or agency to rely on information from a licensing or regulatory department if the applicant met requirements regarding a previous criminal history check, continuous employment, and Michigan residency. Prohibit a covered facility from granting conditional employment, a contract, or clinical privileges to a person before obtaining criminal history information unless the facility did not allow the person to have regular direct access to or provide direct services to patients or residents without supervision; or the facility conducted a public records search on the person through the Michigan State Police's (MSP's) Internet Criminal History Access Tool, the person had been a Michigan resident for the preceding 12 months, and, if applicable, the person gave the MSP a set of fingerprints within 10 business days. Allow the Department of Community Health to charge a staffing agency a one-time fee of up to $100 for access to the Department's electronic web-based system that assists facilities required to check registries and conduct criminal history checks. SB 1254 would amend the Adult Foster Care Facility Licensing Act to make revisions to background check requirements applicable to an adult foster care facility, similar to the revisions proposed by Senate Bill 1253. SB1255 would amend the Mental Health Code to make revisions to background check requirements applicable to a psychiatric facility or intermediate care facility, similar to the revisions proposed by Senate Bill 1253. 

Certificate of Need (SB 1237) Revamp- Amends the current Certificate of Need to Require hospitals when deciding to re-locate beds to make sure public transportation is available to the patients. The bill was amended on the House floor to allow patients stay in hospitals, removing a requirement in law now that people must be moved into a nursing home with three days if a bed is free within 50 miles. This still remains on the House floor

Hospital Organizational Reform SBs 1115 & 1116- Both bill are sponsored by Senator Hardiman SB 1115 would amend the Municipal Health Facilities Corporations Act to allow a board of trustees or a subsidiary board to restructure its municipal health facilities corporation or subsidiary as a nonprofit corporation; Require a board of trustees or subsidiary board proposing a restructuring to adopt a restructuring plan, which would have to include the terms and conditions of the restructuring and the proposed articles of incorporation; Require the approval of the governing body of the local unit of government for a restructuring; Require the articles of incorporation to be filed with the Department of Energy, Labor, and Economic Growth (DELEG); Refer to a sale or transfer, rather than a reorganization, in provisions regarding a change in ownership or operation of a corporation or subsidiary or health care facilities and services. This bill has been sent to the Governor and ordered enrolled.

Senate Bill 1116 amends the Nonprofit Corporation Act to Apply the Act to a domestic corporation formed by the conversion of municipal health facilities corporation to a nonprofit corporation. Allow a nonprofit organization (including a municipal health facilities corporation) to convert to a domestic corporation. Require a nonprofit organization proposing to convert to a domestic corporation to adopt a plan of conversion and file a certificate of conversion with DELEG. This was Not sent to the Governor and ordered enrolled.

Capitol Outlay Budget HB 5858- The Legislature passed a bill with nearly $1 billion in projects that would mean $383 million in state funding. The projects receiving approval (state share of cost in parentheses):
• Central Michigan University bio-sciences building ($30 million)
• Grand Valley State University classroom/office additions ($30 million)
• Lake Superior State University School of Business building ($15 million)
• Michigan State University plant science facilities/bioeconomy additions and renovations ($30 million)
• Northern Michigan University Jamrich Hall modernization ($25.425 million)
• Oakland University engineering center ($30 million)
• University of Michigan-Ann Arbor G.G. Brown Memorial Laboratories renovation ($30 million)
• University of Michigan-Dearborn science and computer information building renovations ($30 million)
• University of Michigan-Flint Murchie Science Laboratory Building renovations ($16.628 million)
• Wayne State University Multidisciplinary Biomedical Research Building ($30 million)
• Alpena Community College electrical power technology and training center ($2.5 million)
• Bay de Noc Community College nursing lab/lecture hall remodeling ($750,000)
• Delta College health and wellness F-wing renovations ($9.992 million)
• Gogebic Community College building renovation ($750,000)
• Grand Rapids Community College Cook Academic Hall Renovation ($5 million)
• Jackson Community College student services and instructional classrooms ($9.75 million)
• Lansing Community College arts and sciences building renovation ($9.975 million)
• Macomb Community College Health Science and Technology Building Phase II ($7.25 million)
• Mid-Michigan Community College Mount Pleasant campus unification ($8.852 million)
• North Central Michigan College Health Education and Science Center project ($5.214 million)
• Henry Ford Community College science building improvements project ($7.5 million)
• Monroe County Community College technology center project ($8.5 million)
• Ferris State University College of Pharmacy ($6.6 million)
• Detroit crime lab ($15 million)
This has been ordered enrolled and sent to the Governor.

Prisoner Deportation, Passed the Legislature and Sent to the Governor for Her Signature- HB 4130 sponsored by Rep. Smith will allow some prisoners that have deportation orders to go back to their country of origin after serving half of their sentence. Currently, there are about 155 prisoners that would be sent home under the bill, resulting in a $1 million savings to the state and about 55 more that could possibly qualify, depending on the status of their deportation orders, meaning the state could save up to $2 million and relieve some overcrowding issues. This bill has been ordered enrolled and sent to the Governor. 

Prison Ombudsman Access to Records (HBs 5958 & 5959)- This bill package would allow the Legislative Corrections ombudsman the right to prisoner health and mortality records cleared both the legislature and has been ordered enrolled and sent to the Governor.

Pure Michigan Funding Approved- The House and Senate passed House Bill 4817 that provides $10-million in funding for the Pure Michigan tourism campaign, utilizing the money from the 21st Century jobs fund. This has been ordered enrolled and sent to the Governor.

Snyder Plans to Submit- A 2- year budget.

Personnel Changes:

State Employees 4,755 Retire Under Recently Passed State Employee Retirement- The largest number of those left from the Department of Human Services.

Natural Resource and Environment Director, Rebecca Humphries, Leaving- She will be heading to Ducks Unlimited at the end of the year.

Civil Service Commission- Governor appointed Charles Blockett Jr. to succeed Kelly Keenan, who resigned as an independent for a term expiring December 31, 2014.

Other Qualified Beneficiary Language- For State Employees (UAW, SEIU 517m and AFSCME Council 25 members) to be taken up before Civil Service Commission. This will provide health care benefits for domestic partners both same and opposite sex couples.  This proposal was tabled a the Civil Service Commission meeting held on 12/8/2010.

House Leadership: Control flips 63/47 from 42/64 (4- vacancies) Republicans picked up 20 seats.
House Speaker- Jason Bolger; Majority Floor Leader- Jim Stamas.
Minority Leader- Richard Hammel; Minority Floor Leader- Kate Segal.

Senate Leadership: Republicans gain a supermajority 26/12 from 22/16 Republicans picked up 4-seats.
Majority Leader-Randy Richardville; Majority Floor Leader- Arlan Meekhof.
Minority Leader- Gretchen Whitmer; Minority Floor Leader- Tupac Hunter.

Chuck Moss Named House Appropriations Chair.

Courts:

MI Supremes Hear Oral Arguments on Voluntary Public Employee PAC Check off- In MEA v. Secretary of State, Doc. # 137451, the Department of State issued a ruling saying that school districts could no longer collect fees from school employees and members of MEA, that were contributed to MEA's PAC, because those constituted an unlawful expenditure under Michigan's Campaign Finance Act. The trial court reversed the ruling, saying the decision was capricious and arbitrary. A split Court of Appeals panel reversed this ruling, arguing that school districts and other public bodies could not use public funds to make an expenditure under the Campaign Finance Act.

School Employee Privatization Lawsuit- The court, on a 5-2 split, (Michigan AFSCME Council 25 v. Woodhaven-Brownstown School District, SC docket No. 141732) reinstated an injunction preventing the district from hiring a contractor to cover the non-instructional tasks and ordered the Court of Appeals to conduct a more thorough examination of the case. The Court of Appeals found that there would be no irreversible harm to the employees by allowing the district to enter the contract.

State Employee Unions (Including SEIU 517m and 526m) Sue over Mandatory 3% Contribution in the Retirement Incentive Legislation signed into law.  A prospective injunction was granted by Inhgam County Circuit Court Judge Collette on December 8, 2010, placing the funds in an escrow account.

Federal Level:

CMS Patient Visitor Changes- Published officially on November 17 and set to go into effect on January 17, 2011. HHS Secretary, Kathleen Sebelius, sent letter to all Medicaid and Medicare hospitals encouraging them to comply with these new regulations that allow patient to choose their visitors, including domestic partners.

Extension of the Bush Tax Cuts- See attached deal negotiated by President Obama and Republican leaders. This was just negotiated and has not passed Congress or the Senate.

Unemployment Benefit Extension- See attached deal negotiated by President Obama and Republican leaders and factsheet put out by MLHS. This was just negotiated and has not passed Congress or the Senate.

Deficit Reduction Commission- See Attached spreadsheet on commission proposal. It is still not been reported out of the commission body itself because of lack of support.

Dream Act- This bill allows children of undocumented workers who are either in college or military service to become U.S. citizens.  This passed Congress 216/198 on December 8, 2010. The following Michigan Congressional Reps. voted yes: Dingell, Peters, Schauer, Conyers, Kilpatrick, S. Levin, Ehlers and Kildee; the following Michigan Congressional Reps. voted no: Stupak, Miller, Rogers, Hoekstra, Upton, McCotter and Camp.

Don't Ask, Don't Tell- A vote to move forward w/ debate on on a defense spending bill that contained language repealing "Don't Ask, Don't tell" failed by 3 votes (60 was needed) in the US Senate on December 9, 2010.