Legislative Report

October 2010

The completion of the state budget by September 30 was the order of the month in the halls of the legislature during the month of September. To its credit, the legislature achieved its goal. That achievement does not speak to the quality of the work product, however. The 2010-11 budget represents a continuation of the cobbling together of one time fixes consisting of some questionable proposals coupled with federal stimulus dollars which allows all stakeholders to technically meet their legal mandate to pass a balanced budget. The next governor will have to deal with the consequences and fallout from what occurred in September, 2010. Michigan’s structural deficit still reigns!

We can only hope that the new legislators and the new governor will have the foresight and the political will to address a lingering problem which has plagued the state for the last fifteen to twenty years: The obvious imbalance between state revenues and state expenditures. As voters, we must try as hard as we can to elect those whose common sense and understanding and problem solving capabilities outweigh their political ideology. We should elect politicians who are willing to do the right thing and lead their constituents rather than follow them. Oh, if there were but a litmus test which encompasses all the qualities needed to lead us out of the financial morass we find ourselves in as citizens of Michigan.

Speaking of elections, we must not forget the ballot questions we will vote on next month. Proposal 1 is extremely important. It deals with the question of whether we should have a constitutional convention to rewrite Michigan’s constitution. Those who argue for one believe our 47 year old constitution is outdated and should be rewritten. It cannot be adequately repaired on a piecemeal basis. They believe that the estimated $46 million cost is well worth the benefit to be gained and a relatively minor amount as far as state expenditures go. Finally they argue that if a new constitution is not acceptable, voters can defeat it when it is presented for ratification. The opposition to a constitutional convention argues that the cost is too much given the state’s economic condition, The economic recovery of the state would be put on hold and stymied until businesses and others know what impact the provisions of a new constitution will have on them. Everything would be at a standstill for a couple of years. The final argument put forth by those opposed is that the political climate would lend itself to reversing many of the sound provisions currently contained in the constitution. You will hear and read many arguments both for and against a convention. Please weigh them carefully and cast your vote accordingly.

Finally, the Supreme Court race in which we elect two justices, is not one which gets a lot of attentions during the campaign. The Supreme Court impacts our lives in very significant ways by the decisions it renders. You would be well advised to study the backgrounds and judicial philosophies of the candidates who are seeking election. The Democratic nominated candidates who run as nonpartisan candidates on the ballot are Justice Alton Thomas and Denise Langford Morris. The Republican nominated candidates, also carried as nonpartisan on the ballot, are Justice Robert Young and Mary Beth Kelly. Two of the four will be elected to the Court. By all means, please do not forget to vote for the Supreme Court candidates!

Note: I have intentionally not mentioned various individuals who are running for the top state offices and the legislative offices. You should know who they are by now and be well versed in their respective positions on issues. Please become an informed voter and go to the polls on November 2!

The following is a report on several bills which were acted on during the month of September and may be of interest to seniors/retirees:

Early retirement inducement for state employees — SB 1226 which had been stalled in the House for several months finally passed. The bill was a critical component of the Governor’s budget balancing proposals for 2011. The major provisions of the bill which is on its way to the Governor for signature are: 1) Those with a combined age and years of service totaling eighty are able to retire and have their pension computed using a 1.55% factor (an .05% increase in the factor). 2) Those whose age and service credits allow them to take a regular retirement will be able to retire using a 1.6% factor (a .1% increase in the factor). In both cases, the multiplier applies to the first $90,000 only. 3) Those wishing to retire November 1 must declare their intent by October 22. Those wishing to retire January 1 must declare their intent by November 5. At the request of department directors and agency heads and with the approval of the Director of the Office of the State Employer and the Budget Director, certain employees may continue to work. The time worked during the extension period would not accrue for the purpose of determining which multiplier a retiree would receive. These employees extended time would be at the normal 1.5% multiplier. An approved extension could last until July 1, 2011. The provisions of this bill also extend to judiciary and legislative employees. Starting with the first pay date in November, employees on the payroll would have to pay 3% of their annual compensation into an account established under the Public Health Care Funding Act (Act 77 of 2010.) This 3% payment would continue until September 30, 2013 when it would sunset for all affected employees. The bill is expected to generate $81 million in 2011. Some unions are threatening to file a lawsuit regarding the mandated 3% payment. Unions believe this provision should have been subject to collective bargaining.

Driver Responsibility Fees: Currently, the Michigan Vehicle Code accesses fees to drivers who accumulate a certain number of points on their licenses and for drivers who commit certain specified offenses. These fees are in addition to any penalties for committing the offenses. Four bills have passed the House which make significant modifications to the current law. HB 4098 eliminates some fees, while keeping other fees in place. The $1000 fee group of offenses remains unchanged. The $500 fee violations remain unchanged except for the elimination of the fees for the following infractions: driving without a license and violation of the mandatory insurance provisions in the Insurance Code. Other fees being eliminated are 1) the $150 fee per year for two consecutive years for operating without a valid license, having more than one license, or failing to surrender licenses from other states; 2) the $200 fee per year for two consecutive years for failure to produce proof of insurance; and the $100 fee per year for two consecutive years for the accumulation of seven or more points within a two-year period, and the extra $50 for each additional point over seven points. The bill also has a provision to allow anyone owing a fee as of the date the bill is enacted to pay 50% of the amount owed by January 1 and the balance would be waived. HB 4604 would permit a reduction of 25% of any amount owed for violations, other than the $1000 group of violations, if the other 75% is paid within sixty day of the effective date of the bill. There would also be a waiver of the fee for failure to pay the assessment in a timely manner if 75% of the fee is paid within the sixty days. HB 4101 would allow the driver responsibility to be assessed once, rather than for two consecutive years. All the bills have passed the House and gone to the Senate where they have been assigned to the Judiciary Committee.

Sobriety Interlock Pilot Project: SB 794 and HB 5273(now Public Acts 154 and 155, respectively) creates a three-year DWI/sobriety court interlock pilot project beginning on January 1, 2011, for individuals convicted of two or more violations of operating a vehicle while intoxicated or while impaired. In addition, the laws do the following: 1) require a participating sobriety court judge to certify to the Secretary of State that a person seeking a restricted license had been admitted to a DWI/sobriety court and that an interlock device had been placed on each vehicle owned or operated by that person. 2) Require a DWI/sobriety court judge to inform the Secretary of State if a program participant were terminated or committed certain violations and, therefore, require notification to result in suspension or revocation of the person’s restricted license. 3) Require DWI/sobriety courts participating in the pilot project to report annually to the Legislature, the Secretary of State, and the Supreme Court. DWI/sobriety courts are defined as the “specialized court programs established within judicial circuits and districts throughout Michigan that are designed to reduce recidivism among alcohol offenders and that comply with the 10 guiding principles of DWI courts as promulgated by the National Center for DWI Courts.” The bills have passed both chambers of the legislature and been signed into law by the Governor.

New classes of license for serving alcoholic beverages: HB 6007 would add “nonpublic continuing care retirement centers” to the class of vendors that may sell alcoholic liquor at retail, and allow a licensed center to sell and serve beer, wine, and spirits to residents and their guests for on-premises consumption. Also allowed are restaurants holding a liquor license to do outside catering and serve liquor, instate breweries and wineries to serve and charge for samples (and limits the amount of the product that can be consumed through the sale of samples), and permits several specific community colleges and Western Michigan University’s Grand Rapids Campus to hold liquor licenses. The bill shortens the period of the ban on the sale of spirits on Christmas Day by allowing sales from 11:59 p.m. Christmas Eve until 7 p.m. on Christmas Day, and permits liquor sales beginning at 7 p.m. on Sundays. There also are a number of provisions regarding implementation of the above and some non-consumer provisions regarding distributors. The bill has been enrolled and is on its way to the Governor for signature. As the bill went to the Senate, it addressed only the sale of spirits at retirement centers. All the other items were added in the Senate which made it a 60 page bill. The Governor may veto the bill because of its expansiveness.

Miscellany

Granholm administration violates labor laws— A state administrative law judge issued an opinion in early October finding that the Granholm administration violated the state’s labor law by refusing to give a 3% pay raise to some 15,000 non-unionized state employees. The unionized state employees collectively bargained for and received the 3% pay raise and the management personnel understood they would receive it before the administration changed its position. The hearing officer’s decision does not mean the non-union employees will automatically receive the pay raise, however. A lawsuit previously has been filed regarding the administration’s actions. The administrative law judge’s opinion will serve to support the plaintiff’s basis for the lawsuit. Had the pay raise been granted to the 15,000 employees, it would have cost some $45 million. The Granholm administration withheld the pay raise as a cost reduction measure. The hearing officer, William Hutchens, in his 40 page opinion, found that the labor law was intentionally violated when the administration representatives walked away from the discussions with those representing the employees in trying to reach a consensus agreement.

Governor continues to nominate individual for Senate confirmation — Governor Granholm submitted some 78 names of individuals for nomination to various boards and commissions requiring Senate confirmation. The Senate leadership previously had informed the Governor that they will not confirm anyone for an appointment to a position for a term starting after September 2, which is 60 days before the November 2 election, and ending after December 31, 2010. It is the Senate leadership’s position that the incoming governor should make such appointments/nominations. Thus, they have routinely rejected the Governor’s nominees. She defiantly continues to submit names. Of the 78 names recently submitted and rejected, six had been submitted twice and rejected twice and 25 had been submitted and rejected once. One of the names submitted was for an appointment to a recently vacated position to serve between now and December 31 when the current term ends. She then nominated the same person for the position for a term beginning January 1, 2011. The Senate approved the person for the four month vacancy, but rejected him for the new and longer term beginning January 1.

The Tea Party fails to get officially recognized The Tea Party’s attempt to get its candidates on the ballot failed after the State Board of Canvassers split on a 2-2 party-line vote to give approval to the petitions submitted. While the Tea Party has the required number of signatures, the wording on the petitions did not meet the legal requirements for technical reasons. Party officials appealed to the Court of Appeals for relief but failed in that effort. Their appeal to the Michigan Supreme Court was denied. Thus, there are no Tea Party candidates on the ballot. There is an investigation ongoing regarding whether the Democratic Party was behind the effort to get the Tea Party recognized based on the belief that the Tea Party candidates names on the ballot would hurt the Republican candidates’ election efforts.

People in the News

Ken Theis, Director of the Department of Technology, Management and Budget, has left that position to accept the position as Chief Operating Officer of Dewpoint, Inc., a Lansing based technology consulting firm. He will be replaced by Phyllis Mellon who has been named Interim Director of TDMB by Governor Granholm.

Chris DeWitt, a Democrat who has served a number of politicians during his career has joined the campaign staff of Republican gubernatorial candidate Rick Snyder. Mr. DeWitt has worked for Governor Granholm, former Attorney General Frank Kelly, Lt. Governor John Cherry and Senator Carl Levin. His joining a Republican candidate’s staff was a shock to many political operatives in Lansing.

Judy Emmons, a former legislator, has been chosen to be the Republican candidate in the 33rdSenate District to replace Brian Calley who won the nomination in the primary but then was selected to be the Lt. Governor candidate on the Republican ticket. The selection of Ms. Emmons was made by the Mid-Michigan Republican Party.

John Proos, a Republican state representative and current state senate candidate, is the presumptive choice to be the Majority Leader in the Senate next year after his chief competitors, Senators Mike Nofs and Mark Jansen withdrew and gave him their support.

Edward Sosnick, an Oakland County Circuit Judge, was selected as a One Man Grand Juror to investigate the role several Democratic officials in Oakland County played in getting several Tea Party candidates petitions certified as a part of a scheme to fraudulently get the Tea Party recognized.

Clarence Phillips, a former Democratic state representative and former mayor of Pontiac died recently at the age of 69. Mr. Phillips served on the House Appropriations Committee while in the legislature.

Hilda Gage, a former Court of Appeals judge, Civil Rights Commissioner and member of the Sentencing Guidelines Commission died recently at the age of 71. She had resigned from the Court of Appeals due to a long-term illness.

Ed Fenlon, believed to be the oldest living ex-legislator, died recently at the age of 106, a few weeks short of his 107th birthday. He was elected to the House more than 80 years ago and left in the late 1930s. He sponsored the Mackinac Bridge Authority legislation.

Andrew Shirvell, an Assistant Attorney General, made national news due to his outrageous behavior regarding the gay University of Michigan student body president, Chris Armstrong. Mr. Shirvell has written very disparaging comments regarding Mr. Armstrong, interrupted student body meetings chaired by Armstrong, picketed outside Armstrong’s home all of which led him to be banned from the campus of the University of Michigan. His boss, Attorney General Mike Cox, criticized his behavior but refused to fire or punish Mr. Shirvell. After much national publicity, Mr. Shirvell has taken a leave of absence from his state job. Armstrong is seeking a personal protection order against Shirvell.

Editor’s note: Alvin Whitfield is former President of the Lansing SERA Chapter and former Chairperson of the Michigan SERA Council and current Legislative Representative for both the Council and the Lansing Chapter. He may be contacted at 1241 Runaway Bay Drive, C-3, Lansing, Michigan 48917; phone 517/703-9666; e-mail: alwhit@worldnet.att.net.

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