IIJA Funding Resource: Capitalizing on New Federal Funding Opportunities: A Webinar Series

The Sustainable States Network (SSN) and the American Council for an Energy-Efficient Economy (ACEEE) have organized three upcoming webinars that will explore key opportunities for cities to act on climate change through energy efficiency investments—including by capitalizing on new federal funding. You can learn more about these webinars and register through the links below:  

New Federal Funding Opportunities for Affordable Housing Retrofits                                                                              

Thursday, August 4 | 2:00pm-3:00pm ET 

This ACEEE webinar will explore how state and local governments can leverage a historic influx of federal funding to increase investments in retrofits for low- and moderate-income housing. Two jurisdictions that are already taking these steps will share early insights. 

Taking Advantage of Federal Funds: Local Energy Efficiency Policies and Programs to Consider 

Tuesday, September 20 | 2:00pm-3:00pm ET 

This ACEEE/SSN webinar will showcase leading energy efficiency programs from across the country that communities can learn from and replicate as they prepare to leverage new federal funding opportunities. 

ACEEE’s Self-Scoring Tool: Results from the Community Energy Challenge                                      

Thursday, September 29 | 1:00pm-2:00pm ET  

This ACEEE/SSN webinar will show communities how they can use ACEEE’s latest self-scoring tool to measure their energy efficiency and clean energy progress, and highlight results from the most recent cohort of SSN’s Community Energy Challenge. 

SSN Webinar Poster

Herasanna Richards is a legislative associate handling energy, environmental, elections, and external municipal services for the League. She can be reached at hrichards@mml.org or 517-908-0309.

That’s A Wrap – 100th Legislative Session Finalized

With the expiration of 14-days on the Governor’s desk this past week, the last bills presented from December’s lame duck legislative action brought the 100th Legislative Session to an official close.

All told, nearly 300 new bills were introduced between the House and the Senate during the lame duck period, following the November election.  A total of 402 bills became new Public Acts (PAs) in 2020, with 158 of those PAs being finalized during lame duck, mainly during the month of December.  In addition to the volume of new laws, the Governor leaned heavily on her veto pen during the final days of the 100th Legislative Session.  All told, 36 bills were either directly vetoed or expired without signature, resulting in a pocket veto. The legislative action of 2020 stands in stark contrast to the activity of 2019, where only 178 new PAs were signed and no bills were vetoed. 

The following updates summarize many of the main issues that League staff were engaged with during this lame duck period and those issues that we expect to see returning during the 2021-2022 legislative term.

Signed By The Governor:

  • COVID Extension to Boards of Review: HB 5824 and 5825 (PAs 251 & 297 of 2020) – The League supported these two bills which codify the Governor’s now nullified Executive Order that had extended the March 2020 Boards of Review and allowed certain additional appeals and valuation changes during the July 2020 Boards of Review.
  • Poverty exemption: SB 1234 (PA 253 of 2020) – This bill amends the current residential property tax poverty exemption to assist with various COVID-related impacts that low-income residents are facing as they attempt to apply for the exemption. Upon determination of the local unit of government, existing poverty exemption applications may remain in effect for up to three years to counteract personal and public facility limitations due to COVID-19.  A similar, 3-year extension is also authorized for local units that choose to offer the extension for eligible residents on fixed income from public assistance. The League and the City of Detroit testified in support of these bills.  Treasury negotiated a number of amendments as a condition of their support prior to passage, including requiring each local unit’s poverty exemption policy and guidelines be posted on their website and bringing uniformity to the allowance of any partial exemptions, less than 100%, unless authorized by the State Tax Commission.
  • Personal Property Tax COVID Location Freeze: SB 1203 (PA 352 of 2020) – Amends the General Property Tax Act to freeze the location of all personal property being used by remote workers as assessable only at the business’s ordinary location for the 2021 tax year.
  • Tax Foreclosure Proceeds: SB 6761137 (PAs 255 & 256 of 2020) – These bills were passed in response to the recent Michigan Supreme Court Rafaeli decision that found that all “excess” proceeds from a tax foreclosure sale must be paid to the former owner of the property. This decision could have a long-term harmful impact on County Delinquent Tax Revolving Funds that will lead to chargebacks being assessed to local taxing jurisdictions. Communities that also leverage their right of first refusal to acquire these foreclosed properties for the minimum bid may also face a more expensive path to acquiring these parcels as the court decision also puts the ability to acquire parcels for the minimum bid at risk. Following months of work group discussions and negotiations with local units, the County Treasurers Association, and the Michigan Department of Treasury, the League secured amendments to retain a process for local units to continue acquiring some parcels for the minimum bid and language providing for an annual  local fiscal impact analysis from Treasury to help evaluate and make recommendations to address any increase in chargebacks to local units.
  • OMA Virtual Meetings: SB 1246 (PA 254 of 2020)Senate Bill 1246 amends the Open Meetings Act to allow communities to continue meeting virtually due to the pandemic through March 31, 2021. The prior allowance had allowed communities to meet virtually only through the end of 2020, so this extension was a high priority for the League. This new legislation also makes technical changed requested by the League to allow a local state of emergency or state of disaster to be declared pursuant to a local ordinance (in addition to those declared under law or charter in the current law) and adds a local chief administrative officer (in addition to a local official or local governing body) as a person who may declare the local state of emergency. In addition, the bill sets requirements a public body shall follow if a meeting is held in person before April 1, 2021, including adherence to social distancing and mitigation measures recommended by the Centers for Disease Control and Prevention for purposes of preventing the spread of COVID-19 and adopting heightened standards of facility cleaning. Read this blog for additional details.
  • Historic Preservation Tax Credit: SB 54 (PA 343 of 2020) – The League has fought for a number of years to restore Michigan’s state-level Historic Preservation Tax Credit program that was repealed under former Governor Snyder. The new program will provide a 25% credit on rehabilitation expenses against state income tax. For homeowners in historic districts, this credit helps offset the costs of repairing older homes while retaining their historic attributes. SB 54 caps the total number of credits per year at $5 million in order to have minimal initial impact on the State budget. The necessary $5 million for funding of the first year of the credit was already appropriated in the current state fiscal year in anticipation of this bill’s passage.
  • COVID critical infrastructure worker: SB 1258 (PA 339 of 2020) – Public Act 238 of 2020,  adopted earlier in 2020, established certain employee protections related to exposure to COVID-19. One aspect of that law required employees to quarantine for 14 days following certain instances of exposure. Specific classes of employees/businesses are exempt from that 14-day quarantine, like health care employees and first responders. Officials from the cities of Oak Park and St. Clair Shores joined the League in advocating for language in SB 1258, which would extend the specific employee/business exemption from the quarantine requirement to include critical infrastructure employees in the energy industry and other critical municipal service categories like water and wastewater operations.  During final negotiations, the bills was amended to allow the Dept of Health & Human Services Director to designate certain categories of employees for critical infrastructure deemed necessary to preserve public health or public safety. The bill also provides additional flexibility for returning to work with negative test results and time periods for isolation and/or quarantine as determined appropriate by the CDC, as opposed to designating a specific number of days in statute. The League and other local units have submitted a letter (view it here) to the Department Director requesting the immediate designation of critical municipal operations pursuant to the language in the new law.
  • Movable Bridge Public-Private Partnerships: SB 12151218 (PAs 353-356 of 2020) – The League and Bay City officials testified in support of this package of bills that will help Bay City address the replacement of two city-owned movable bridges. Due to the unique nature of these bridges and the extraordinarily high cost of replacement, this package will provide statutory authority for Bay City to enter into a public-private partnership that will provide for the replacement of both bridges and free up substantial city resources that can be invested in other infrastructure projects.
  • Water Shut-Offs: SB 241 (PA 252 of 2020) – A new version of this bill was adopted to codify the Governor’s previous Executive Order related to water shut-offs. In early July Governor Whitmer issued Executive Order 144 that placed a moratorium on water shutoffs until December 31st of this year. Following the nullification of the Governor’s E.O.s by the Michigan Supreme Court, the Administration and the Legislature negotiated the language in SB 241 to codify the intent of that E.O. into statute. This agreement in this bill reinstates the moratorium on water shutoffs and extends the date to March 31, 2021
  • Supplemental Budget Appropriation/CARES Hazard Pay Grant Extension: SB 748 (PA 257 of 2020) – Separate from the political grappling between the Legislature and Governor over state spending for COVID relief and unemployment benefits, language was included at the League’s request to extend the time period for local units to have issued first responder hazard pay premiums under the state’s Coronavirus Relief Fund grant program and be eligible for a reimbursement.  The original language had required payroll be issued by 10/31/2020, this change allowed communities to issue their payroll by 12/29/2020 and still be eligible for reimbursement.
  • Brownfield Redevelopment Authority Administrative Change: HB 4159 (PA 259 of 2020) – Provides technical changes and oversight to brownfield redevelopment authorities. Additional amendments were adopted to section 13b to increase the number of active projects that an authority may have at one time and also allow for a corresponding increase in expenditures for administrative and operating costs relative to the number of projects. This change is also consistent with the recently updated MEDC strategic plan and their revised Community Revitalization Program guidelines.
  • Small Cell Road Commission Fix: SB 1256 (PA360 of 2020) – Late in lame duck SB 1256 was introduced and moved without a committee hearing, receiving bi-partisan support in both chambers. This bill added country roads commission to the definition of authority and clarifies the original intention of the legislation. As a result of this change, all entities within the right of way would operate on a level playing field. The League did not support this legislation but did request, and have secured a commitment from the bill sponsor (Sen Dan Lauwers), to provide additional clarification that the rate will be paid exclusively to cities, villages, and townships. A bill addressing this clarification will be introduced early in 2021 and we anticipate it being taken up shortly after committees begin to meet.

Vetoed By The Governor:

  • Solar Projects Tax Exemptions: SB 1105 & 1106 – These bills were vetoed by the Governor as premature, given the State Tax Commission’s ongoing ad hoc review committee and related analysis and recommendations were not considered in the development of the vetoed language. The League opposed these bills and submitted a letter requesting the Governor veto these bills. The two bills would have exempted all utility-grade solar projects from the industrial personal property tax and replaced that lost property tax revenue with a Payment In Lieu of Tax reimbursement of $4000 per megawatt, an arbitrary value that would have amounted to pennies on the dollar for many local units.  Local units would have also been required to approve every tax exemption application it received as long as the project matched the definition of an “qualified renewable energy facility”, regardless of local land use or economic development plans or support.  As stated in the League’s veto request letter, which you can read here, we support additional investment in alternative energy systems in Michigan, but any PILT proposal must be developed in conjunction with local government and provide a balance between promoting solar development and maintaining the services residents rely upon.
  • Meijer Warehouse Equipment PPT cut: SB 1153 – This bill, along with two other bills (SB 11491150) had proposed exempting consumer goods handling warehouse equipment from personal property, sales and use tax. The bills died on SB 1149 1150 1153 veto request letter 12.22.20the Governor’s desk when she declined to act on them before the 14 days expired at the end of the term. The League opposed all three bills and submitted a veto request letter to the Governor, which you can view here. These bills would have provided Meijer and other large commercial retailers with full sales, use, and personal property tax exemptions for all large-scale consumer goods handling warehouse distribution equipment. The League and all other local government and school groups, and the MI Department of Treasury testified in opposition to these bills and a separate three bill package that did not end up moving (SBs 1178, 1179, 1180) that would have provided similar sales, use, and personal property tax exemptions for so-called “micro-fulfillment” systems installed by retailers to facilitate filling online customer orders. The Governor had expressed concern publicly with SBs 1149, 1150, and 1153, questioning the unknown impact that these cuts would have on state and local revenues.
  • Summer Property Tax Deferral/Penalty & Interest Relief: SB 943 – Originally introduced this summer as part of the summer tax deferral proposal that was vetoed, a substitute version of SB 943 was quickly adopted and passed targeting a select number of industries hit hardest by the pandemic. This alternative approach would have allowed for the retroactive deferral of any delinquent summer tax bills and waiver of related penalties and interest from four specific industry segments, until Feb 15, 2021. The bill also provided for state reimbursement to local units for any forgiven penalties and interest owed on any of these deferred amounts.  Treasury had opposed the bill based upon concern over administering the program. The Governor declined to act on the bill before the expiration of the 14-day limit, resulting in a pocket veto.
  • Rental Inspections: SB 692 – The League was neutral on this bill as the change would have only impacted certain change of ownership situations and only for a limited time period, not indefinitely. This bill was also pocket vetoed based upon a limited rationale for the legislation.

Bills Opposed By The League That Died Without Action:

  • Zoning Preemption For Aggregate Mining: SB 431– The League strongly opposed this effort to preempt local units of government from virtually any zoning or other currently authorized regulation of gravel and aggregate mining.  This bill is expected to be reintroduced in 2021 and the League will continue to engage League members and work with our allies to block its passage.
  • Preempting Regulation Of Automated Delivery Devices: SB 892
  • Zoning Preemption For Certain Large Foster Care Facilities: HB 4095
  • Short-Term Rental Zoning Preemption: HB 4046

Legislation The League Will Continue To Pursue In 2021:

  • Headlee/Proposal A Reform: HB 6454 – This bill was introduced to address the negative interactions between Headlee and Proposal A before any property value reductions from the current pandemic recession could impact local budgets.  We are working with the bill sponsor to reintroduce this proposal in the new term.
  • Public Notice Reform: HB 6440 – This was the main bill in a more than 100-bill package that proposed reforming the current, obsolete public notice requirements throughout state law.  This is a reintroduction of a similar package that the League supported in the 2015-16 session.
  • Speed Limits: HB 4733 – This bill would have further clarified local government’s ability to adjust speed limit below the 85th percentile speed when demonstrating a situation with hazards to public safety through an engineering and safety study.
  • Stormwater Authority Creation: HB 4691 and Basement Back-Up Liability Protection: HB 4692
  • Dark Store Property Assessing Reform: SB 26 & 39
  • Veteran’s Property Tax Exemption: HB 4176

The League will also continue to prioritize restoration of cuts and additional protections for statutory revenue sharing, funding for municipal infrastructure at risk from high-water levels and shoreline erosion, and opportunities to improve funding for roads and underground infrastructure in the new term, among other priorities.

The 101st Legislature will officially be seated and commence action on Wednesday, January 13th. Since the House is re-forming under a new Republican Speaker (Jason Wentworth, R-Farwell), a new committee structure will be established, and new committee membership will need to be announced. At this point, only the incoming leadership team and the House Appropriations committee chairmanship (Thomas Albert, R-Lowell) have been revealed. Neither the House nor Senate leadership have revealed their policy agendas for the coming year. 

Following the ceremonial first day of session on the 13th, the state’s annual Consensus Revenue Estimating Conference is scheduled for 9 am on Friday, January 15th. This revenue conference will establish the baseline that the Governor’s budget team will utilize to craft her Executive Budget Recommendation that will likely be released in early February. The Governor’s State of the State address has been scheduled for Wednesday, January 27th at 7 pm.  That speech and the subsequent budget presentation will offer insight into the Administration’s legislative goals for the year. 

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and chackbarth@mml.org.

Lame Duck Round Up – Week 3…

With the Michigan Senate’s final action late Friday night, only Monday’s House session remains before the 100th Legislative Session comes to an end.

The Senate remained in session throughout the day Friday, concurring in bills that the House had sent over late on Thursday and working to formulate a deal on a year-end state budget supplemental.  As one of their final votes Friday night, the Senate passed SB 748, a $465 million appropriation bill aimed at providing additional, state-level Coronavirus relief.  Within the Senate-passed bill, $128 million is targeted at COVID-19  health-related programs funded through the Department of Health and Human Services, and over $278 million will run through the Department of Labor and Economic Opportunity to support an extension of state unemployment benefits and various small business grant offerings.  The League supported two items that were part of the appropriations for the Michigan Department of Treasury; a $5 million appropriation to cover the costs for any penalties or interest waived as part of the recently passed SB 943, which offers retroactive summer property tax deferrals to four specific industry segments harmed by pandemic shutdowns, and a change in the language outlining the First Responder Hazard Pay Premium program authorized earlier this summer, to extend the deadline for local units to have paid these hazard pay premiums to eligible employees out to December 29, 2020.

This appropriation bill now moves to the House for concurrence on Monday, along with a few remaining bills that the House was unable to act on last week.  The Governor has not indicated if she will support this supplemental appropriation.

The following are brief summaries of action during this third week of lame duck: 

OMA Virtual Meetings: The state House and Senate passed Senate Bill 1246 that would amend the Open Meetings Act to allow communities to continue meeting virtually due to the pandemic through March 31, 2021. The bill now heads to Governor Whitmer for approval. As you may recall the current law allows communities to meet virtually through the end of this month so getting this extension was a high priority for the League. This new legislation also allows a local state of emergency or state of disaster to be declared pursuant to a local ordinance (in addition to those declared under law or charter in the current law) and adds a local chief administrative officer (in addition to a local official or local governing body) as a person who may declare the local state of emergency. In addition, the bill sets requirements a public body shall follow if a meeting is held in person before April 1, 2021, including adherence to social distancing and mitigation measures recommended by the Centers for Disease Control and Prevention for purposes of preventing the spread of COVID-19 and adopting heightened standards of facility cleaning. Read this blog by the League’s Jennifer Rigterink with all the details. 

Solar Projects Tax Exemptions: SB 1105 & 1106 – Status: passed Houseboth bills now head to the governorThe League is opposed to these bills and is drafting a veto request letterThese two bills would exempt all utility-grade solar projects from the industrial personal property tax and replace that lost property tax revenue with a Payment In Lieu of Tax reimbursement that amounts to pennies on the dollar for many local units.  Local units would also be required to approve every tax exemption certificate application if the project matches the definition of an “qualified renewable energy facility”, regardless of local land use or economic development plans or support.

Summer tax deferral: SB 943 – Status: passed, heads to governor for approval. Originally introduced this summer as part of the summer tax deferral proposal that was vetoed, a substitute version of SB 943 was quickly adopted and passed by the Senate to target a select number of industries hit hardest by the pandemic. This new version allows for the retroactive deferral of any currently delinquent summer tax bills and waiver of related penalties and interest from four specific industry segments, until Feb 15, 2021. The bill also provides that the state will reimburse local units for the lost penalties and interest owed on any of these deferred amounts (see summary of SB 748-supplemental budget appropriation above). It is not known if the Governor will sign the bill. 

Poverty exemption: SB 1234  Status: passed House, heads to governor for approval. This bill amends the current residential property tax poverty exemption to assist with various COVID-related impacts that low-income residents are facing as they attempt to apply for the exemption. The League and the City of Detroit testified in support of these bills in both the House and Senate Treasury negotiated a number of amendments as a condition of their support prior to passage.

Meijer Warehouse Equipment PPT cut: SB 1153 – Status: passed House along with two other bills (SB 11491150exempting this equipment from sales and use tax.  All three bills now head to the governor. The League opposed these three bills and is drafting veto request letter. These bills would provide Meijer and other commercial retailers with full sales, use, and personal property tax exemptions for all large-scale consumer goods handling warehouse distribution equipment. The League and all other local government and school groups, and the MI Department of Treasury  testified in opposition to these bills. 

Historic Tax Credit: SB 54 – Status: passed House, heads to governor. This proposal has long been supported by the League to restore Michigan’s state-level Historic Tax Credit program that was repealed under former Governor Snyder. The new program will provide a 25 percent credit on rehabilitation expenses against state income tax. For homeowners in historic districts, this credit helps offset the costs of repairing older homes while retaining their historic attributes. SB 54 caps the total number of credits per year at $5 million in order to have minimal initial impact on the State budgetThe necessary $5 million for funding of the first year of the credit was already appropriated in the current state fiscal year in anticipation of this bill’s passage.  

Water Shut-Offs: SB 241 – Status: passed House, heads to governor for signature. A new version of this bill was adopted to codify the Governor’s previous Executive Order related to water shut-offs. In early July Governor Whitmer issued Executive Order 144 that placed a moratorium on water shutoffs until December 31st of this year. Following the nullification of the Governor’s E.O.s by the Michigan Supreme Court, the Administration and the Legislature negotiated the language in SB 241 to codify the intenof that E.O. in statute. This agreement in this bill would reinstate the moratorium on water shutoffs and extend the date to March 31, 2021. 

Tax foreclosure proceeds: SB 676 and 1137 – Status: passed House, heads to governor for approvalThese bills have been developed in response to the recent Michigan Supreme Court Rafaeli decision that found that all “excess” proceeds from a tax foreclosure sale must be paid to the former owner of the property. This court decision could have a long-term harmful impact on County Delinquent Tax Revolving Funds that will lead to chargebacks being assessed to local taxing jurisdictions. Communities that also leverage their right of first refusal to acquire these foreclosed properties for the minimum bid may also face a more expensive path to acquiring these parcels as the court decision also puts the ability to acquire parcels for the minimum bid at risk. Following months of work group discussions and negotiations with local units, the County Treasurers Association, and the Michigan Department of Treasury, the League secured amendments to retain a process for local units to continue acquiring some parcels for the minimum bid and language providing for a local fiscal impact analysis from Treasury to help evaluate and make recommendations to address any increase in chargebacks to local units.

COVID Extension to Boards of Review: HB 5824 and 5825 – Status: House concurred in Senate changes, heads to governor for approval. The League supported these two bills which codify the Governor’s now nullified Executive Order that had extended the March 2020 Boards of Review and allowed certain additional appeals and valuation changes during the July 2020 Boards of Review.

Rental Inspections: SB 692 – Status: passed House, heads to governor for approval. The League was neutral on the bill as the change only impacts certain change of ownership situations. 

COVID critical infrastructure worker: SB 1258 – Status: passed Senate this week and the House is scheduled to vote on this bill on Monday. A new law adopted this fall established certain employee protections related to exposure to COVID-19. One aspect of the new law requires employees to quarantine for 14 days following certain instances of exposure. Specific classes of employees/businesses are exempt from that 14-day quarantine, like health care employees and first responders. The League advocated for the amendments in SB 1258, which would extend the specific employee/business exemption from the quarantine requirement to include critical infrastructure employees in the energy industry and other critical employee categories necessary to preserve public health or public safety, as determined by the Dept of Health & Human Services DirectorThe bill also provides additional flexibility for returning to work with negative test results and time periods for isolation and/or quarantine as determined appropriate by the CDC, as opposed to designating a specific number of days in statute. 

The House is scheduled to commence session on Monday, December 21st at 10 a.m. and wrap up action on around a dozen bills before ending for the year.

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and chackbarth@mml.org.

Lame Duck Round Up – Week 1

This week kicked off the first full week of lame duck legislative activity since the November election.  The League’s advocacy team is engaged on multiple fronts to promote a number of pieces of legislation we have been supporting and defending against a host of proposals that will harm local control and local budgets.

While the full calendar of expected lame duck session days is still a bit murky, our team is preparing for this lame duck period to extend through December 17th, giving legislators and committees two more weeks to try and complete legislative priorities.

Given that limited schedule, this first week of action focused on putting a large number of bills in play so that they could have enough time to be completed before the final adjournment for the year.

The following is a brief summary of action that occurred this week on bills that the League’s State & Federal Affairs team is engaged with…

  • HB 5824-5825 – These bills would codify the Governor’s Executive Order from earlier this year, that the court’s struck down, which extended the March and July Boards of Review.  The League supported these bills in Senate committee earlier this week and the full Senate voted today in unanimous support.
  • SB 1234 & HB 4828 – These bills are identical to each other and amend the current residential property tax poverty exemption to assist with various COVID-related impacts residents are facing as they attempt to apply for the exemption.  The League and the City of Detroit testified in support of these bills in both the House and Senate committees this week.  The full Senate reported SB 1234 unanimously this afternoon and further work is expected on the bills next week.
  • SB 11051106 – These two bills would exempt all utility-grade solar projects from the industrial personal property tax and replace that lost property tax revenue with a $3500/MW Payment In Lieu of Tax.  This amounts to pennies on the dolar for many local units versus the existing tax liability and would require mandatory approval of the exemption by all local units. The League previously testified in opposition to these bills, but did indicate a willingness to engage in discussions on a more reasonable PILT alternative that communities would have the option to employ, if this was a development they were choosing to incent. These bills were reported by the Senate in their original format earlier today along a mainly party-line vote and we continue to oppose.
  • SB 1153 & 1179 & HB 6198 & 6284 – These four bills are part of four identical tax exemption packages being considered by both the House and the Senate to provide Meijer and other commercial retailers with full sales, use, and personal property tax exemptions for all large-scale consumer goods handling warehouse distribution equipment and so-called “micro-fulfillment” system equipment used by retailers to assist with filling online orders.  The League and all other local government and school groups testified in both chambers in opposition to these bills.  The Senate reported the bills from committee yesterday and are expected to vote on the package later today.
  • SB 1203 – Would amend the General Property Tax Act to freeze the location of all personal property being used by remote workers as assessable only at the business’s ordinary location for the 2021 tax year. While the League took no position on this legislation, we are tracking its movement and making the argument that this proposal should be accompanied by a similar freeze in work location for remote workers whose ordinary work location falls within a city income tax community.
  • HB 6454 – This bill was introduced earlier this week to address the negative interactions between Headlee and Proposal A before any property value reductions from the current pandemic recession impact local budgets.
  • SB 676 & 1137 – These bills have been developed in response to a recent Michigan Supreme Court decision that found that all “excess” proceeds from a tax foreclosure sale must be paid to the former owner of the property.  This court  decision could have a long-term harmful impact on County Delinquent Tax Revolving Funds that will lead to chargebacks being assessed to local taxing jurisdictions.  Communities that also leverage their right of first refusal to acquire these foreclosed properties for the minimum bid may also face a more expensive path to acquiring these parcels as the court decision also puts the ability to acquire parcels for the minimum bid at risk.  Following months or work group discussions and negotiations with local units, the County Treasurers Association, and the Michigan Dept of Treasury, these bills were reported from the Senate this week by a unanimous vote.
  • SB 431 – The League continues to strongly oppose this blatant move to preempt local units of government from virtually any zoning or other currently authorized regulation of gravel and aggregate mining.  This bill is expected to be brought up for a vote on the Senate floor later today and the League is vigorously working with our allies to secure enough votes to block its passage.
  • HB 6207 and SB 1246 – This legislation extends the current Open Meetings Act allowance for remote meetings during the current pandemic.  The current sunset date of 12/31/2020 would be extended through March of 2021 under the bill. The League has made this change a primary focus of our advocacy during lame duck. The bill was reported by House committee earlier this week and is expected to move off the House floor early next week.
  • HB 5822 – This League supported this legislation in House committee earlier this week to allow the City of Grand Rapids to establish their own Land Bank Authority in light of the recent dissolution of Kent County’s Land Bank.
  • SB 54 – This bill would restore Michigan’s state-level Historic Tax Credit program that was repealed under former Governor Snyder.  This proposal has long been supported by the League and was reported unanimously from committee and overwhelmingly out of the Senate earlier today.
  • HB 6440 – This is the main bill in a more than 100-bill package that would reform the current, obsolete public notice requirements throughout state law.  This is a reintroduction of a similar package that the League supported in the 2015-16 session.  The package was brought up on the House floor where it awaits sufficient support for passage.
  • HB 4035 – Legislation that allows regulation of dangerous behavior of dogs without reference to breed.  The League is neutral on this bill following significant negotiations to achieve the current compromise language and the bill was reported from Senate committee earlier this week.
  • HB 6448 & 6467 – These bills provide amendments to the recently enacted COVID employment protections that were passed earlier this fall by expanding the types of critical infrastructure workers exempt from the new law’s 14 day quarantine requirements. The League testified in support of both HB 6448 and HB 6467 in the House Judiciary Committee along with officials from the cities of Oak Park and St. Clair Shores, while also stressing the importance of incorporating all critical municipal services, like water and wastewater, in the exemption from the quarantine requirements.  Both bills passed House Judiciary Committee and await action on the House floor.
  • SB 234 – This proposal would allow Police Academy enrollees to be held accountable for tuition support from a municipality if they do not end up working for that community.  The League supports this proposal and it was reported from committee earlier this week.
  • SB 714  – Bill provides for the erection of certain emergency structures to prevent shoreline erosion.  Following a number of months of workgroup negotiations with EGLE, the League supported the version that was reported by the House committee this week.  The compromise proposal will streamline the application and processing timeline and allow for coordinated application processing with the Army Corps of Engineers.
  • HB 4733 Speed Limits – This bill would further clarify local government’s ability to adjust speed limit below the 85th percentile speed when we are able to demonstrate a situation with hazards to public safety through an engineering and safety study. This bill was voted out of House Ways and Means Committee this week with the League’s support.
  • SB 12151218 Movable Bridges – The League and Bay City officials testified in support of a package of bills in Senate Economic and Small Business Development Committee this week that would help Bay City address the replacement of two city-owned movable bridges. Due to the unique nature of these bridges and the extraordinarily high cost of replacement, legislation was needed that would allow for Bay City to enter into a public-private partnership that will provide for the replacement of both bridges and free up substantial city resources that can be invested in other infrastructure projects. This package received bipartisan support this week as it moved unanimously out of the Senate.
  • HB 5762 – Provides for waste water or drinking water energy performance contracting projects to be funded by the state revolving loan fund. The League supported this legislation based on the added flexibility to this program that will continue to increase opportunities for funding for municipalities.  The bill was reported from House committee earlier this week and awaits final floor action.

Many of the bills outlined above will likely see continuing action next week.  League members are encouraged to connect with their legislators on these issues.  Please reach to anyone of the State & Federal Affairs team if you have questions on these or any other bills.  Thank you for your support!

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and chackbarth@mml.org.

Pre-Election Legislative Wrap Up & Lame Duck Predictions

Earlier this month the Legislature wrapped up its pre-election session schedule, meeting for nine days between Labor Day and the first week of October.  Both chambers recessed on October 4th until their scheduled return on November 7th, following the General Election.  While the Lame Duck session period technically begins on November 7th, most of the action on legislation is expected to occur during the 12 scheduled session days between November 27th and December 20th.

Most of the focus for the House and Senate centered on the legislative adoption of the minimum wage increase (PA 337 of 2018) and paid sick leave (PA 338 of 2018) proposals that had previously been approved for the ballot.  Legislative adoption of these proposals means these two initiatives will no longer appear on the ballot and will go into effect in early 2019.  Adoption by the Legislature also means that any future amendments to these new acts can be accomplished through a simple majority vote as opposed to a 3/4 vote requirement had the proposals been approved by voters in November.  Legislative amendments to these two acts are expected during lame duck.

In addition to the approval of the ballot initiatives, numerous bills were positioned for further activity following the election through work group meetings, committee hearings and initial legislative action in one of the chambers.  League staff tracked many of these bills and engaged in negotiations and public testimony on the following items:

  • Combating Unfunded Mandates: HB 4679.  This legislation requires all legislation being considered in Lansing to have a detailed fiscal analysis that examines both state and local revenue and cost impacts, to the extent that the data is available and that the fiscal agencies have appropriate time to develop the analysis.  Signed by the Governor as PA 340 of 2018.
  • Residential Solar Improvements: HB 5143 & 5680.  This legislation addresses the question of how residential solar improvements are treated from a property tax assessment standpoint.  The League supported the revised versio of HB 5143, treating residential solar improvements similar to installation of a new furnace. Passed House and reported from Senate committee where it awaits further action.
  • Principal Shopping District & Business Improvement Zone Assessments: HB 5325 & 5720. This legislation provides additional flexibility to apply PSD and BIZ assessments on all property, including residential, within the designated district.  Bills passed the House and had an initial Senate committee hearing.
  • Creation of Building Code Advisory Committees: HB 5376. This proposal creates a series of sub-group advisory committees that include local building officials and inspectors in the Building Code development process at the state level.  The bill has passed the House.
  • Fireworks Regulatory Authority: HB 5939-5941. A bipartisan group of legislators is actively working with the League and other local government groups to develop changes to the existing fireworks law that would grant additional regulatory authority to local units of government and reduce the number of legal days and hours for fireworks usage.  The bills have had multiple work group meetings and an initial House committee hearing.
  • Economic Development Incentive Evaluations: HB 6052. This proposal calls for regular, independent evaluation analyses of state incentive programs.  The bill has passed the House.
  • Preemption of Local Advertising Flag/Banner Ordinances: HB 6063.  This bill is a reaction to the enforcement of a sign/banner ordinance on a restaurant that was displaying a number of banners and flags honoring fallen veterans and first responders that exceeded what was allowed under the local ordinance.  This bill has been reported by the House committee and awaits further action on the House floor.
  • State Infrastructure Bank: HB 6087. Clarifies municipal authority to borrow money from the state infrastructure bank.  HB 6088. Exempts loans from the state infrastructure bank from definition of municipal security under the revised municipal finance act. Both bills have had an initial House committee hearing.
  • Personal Property Tax Reimbursement Formula: HB 6348.  Bill is a reintroduction of a proposal earlier this year that seeks to rationalize the distribution to local units of any PPT reimbursement dollars remaining after all communities have been reimbursed for 100% of their losses. Passed out of the House
  • Elimination of Pension Rolling Amortization: HB 6371.  New proposal that seeks to implement one of the components of the OPEB and pension reform debate from last year that was dropped during the passage of PA 202 of 2017.  This bill would end the practice of “rolling” amortizations for pension plans and would require all plans to abide by a fixed schedule for paying down their unfunded liabilities.  This bill was recently introduced in the House.
  • Small Cell Technology Deployment Regulations: SB 637.  Legislation would preempt local regulatory authority on small cell telecommunication equipment in favor of a single, state-level standard for permitting and fees.  Passed the Senate earlier this year and was reported by the House committee where it now awaits further action by the full House.
  • Drones: SB 917, 918, 919, 921, and 922. Bills would add additional individuals to the list of public safety officials that drones are prohibited from interfering with. Also strengthens the language related to protecting key facilities, like prisons.  Passed out of the Senate.
  • PPT Exemption for Rented Heavy Equipment: SB 927. The League has opposed this bill that offers a complete personal property tax exemption for all rental heavy equipment, with no local government reimbursement mechanism. The bill would especially hit communities that host equipment rental companies or rental yards.  The bill passed the Senate earlier this year and had an initial House committee hearing.
  • Assessing Reform Proposal: SB 1025 & HB 6049.  Following an initial committee hearing before the summer recess, legislative sponsors and the State  Treasurer embarked on a listening tour around the state gathering feedback from local officials on this proposal.  Following those public forums, the League and other local government groups have participated in work group meetings designed to develop consensus around an alternate approach from what was introduced.  A new draft proposal is expected before the Legislature reconvenes in November.
  • Local Road Improvement Grant ProgramSB 1116. The MDOT budget provided a new $3 million grant program for road projects in communities that are less than 10,000 in population. This legislation provides the statutory structure for that grant program.  The bill was reported by Senate committee and awaits further action on the Senate floor.

Governor Snyder has also identified his Renew Michigan and Rebuild Michigan proposals as top priorities for his Administration before the end of the year.  The core pieces of legislation for these proposals center on increasing the state’s solid waste tipping fee at landfills (SB 943) to provide replacement revenue for the now expired Clean Michigan Initiative bond program that had been funding brownfield clean-up projects and creating a new water user fee (HB 5898) to fund emergency infrastructure needs and create a capital infrastructure grant and loan program.  The League has raised concerns with both of these proposals, as originally introduced, and we expect to be heavily engaged in any debate of these bills during the lame duck session.

We also continue to pursue legislative action before the end of the year on League member priorities for:

  • Basement Back-up Liability Protection: HB 4290.  This bill would create clear, data-based criteria that recognizes governmental immunity.  Awaiting action on the House floor.
  • Statutory Guidance for Storm Water Authorities: SB 756 & HB 4100.  This language will clarify existing ability to establish storm water authorities to align with Bolt v Lansing court decision and protect local governments from litigation.  Awaiting initial action in House and Senate committees.
  • Restore the State Historic Tax Credit: SB 469.  Legislation would re-create the previously eliminated state tax credit.  Passed Senate and awaiting final action on the House floor.
  • Below Market Housing Incentives: SB 110.  Bill clarifies local authority to negotiate certain housing incentives with developers.  Passed Senate and awaiting House committee action.
  • Veterans Exemption Cost Shift to the State: SB 1042 & HB 4986.  Proposals would repeal the current disabled veteran property tax exemption that local governments have been forced to pay for and shifts the exemption onto the state income tax as a state budget expense.  Awaiting initial House and Senate committee action.
  • Eligibility Expansion for Pension Bonding: SB 1129.  Bill would extend the end-of-year sunset for the existing bonding authority for AA-rated communities and expand bonding eligibility to A-rated communities under certain circumstances.  Awaiting initial Senate committee action.

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and chackbarth@mml.org.

Senate Committee Reports Utility Personal Property Exemption

The League, Treasury, and other local government organizations testified today in opposition to Senate Bill 1031.  As introduced, this bill would exempt all new electric, gas and water transmission and distribution system equipment from being subject to local taxation.  As drafted, the Senate Fiscal Agency estimates the total fiscal impact on local government and schools at $576 million.  Unlike the existing manufacturing and small taxpayer personal property exemptions, this new proposal does not currently include a local reimbursement mechanism.

The sponsor, however, opened his testimony with a statement that he views this bill and the committee’s consideration as the first step in a long-term discussion about how to address this issue…balancing investments in the utility network with the need to preserve local services.  He continued by stating that he looks forward to working with local governments and utilities over the summer to see if the groups could find some common ground.  Later testimony from industry supporters reiterated this position.  No immediate action is expected on the bill and further discussions will likely occur over the summer and fall months.

While the committee ended up reporting the bill this afternoon, there was extensive discussion among the legislators on the committee about the potential impact from a full exemption and the need to address the revenue concerns raised by local governments.  Sen. Marty Knollenberg (R-Troy) singled out that the legislation would need major changes to earn his support on the floor and he spoke passionately about the importance of preserving local services and the communities that rely on these dollars. The League will be fully engaged in any discussions on this topic and will continue working to protect local communities from additional revenue reductions.

Committee testimony from today’s hearing can be viewed here, starting at about the 11:30 minute mark.

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and chackbarth@mml.org.

Governor Continues Week of Policy Announcements

Following Governor Snyder’s eighth and final State of the State speech last week, his team has immediately moved into announcement mode, capitalizing on the initiatives he announced during his January 23rd speech to the Legislature.

A new announcement is planned for each day this week, in advance of next Wednesday’s (Feb 7th) FY 2018-19 state budget presentation.

On Monday, the Governor signed Executive Order 2018-2 in Port Huron, promoting the expansion of broadband internet service.  This E.O. creates a new state-level commission, the Michigan Consortium of Advanced Networks, to advise the Governor on the state’s broadband infrastructure needs, identifying gaps in coverage and capacity and recommending solutions for state and private sector investment to bridge those gaps.

On Tuesday, the Governor announced his Renew MI plan as a replacement for the former Clean Michigan Initiative bond program.  This $675 million bond program, approved by the state’s voters in the late ’90s, is nearly tapped of remaining bond capacity, so the Governor is proposing an increase in landfill tipping fees as a replacement for that bond revenue to avoid adding to the state’s long-term debt liabilities.  This new proposal would increase the tipping fee from the current .36/ton to $4.75/ton as a way to bring in an estimated $79 million per year to clean up contaminated sites, invest in recycling programming, assist with local solid waste management planning, and support ongoing water quality monitoring efforts at beaches, lakes, and rivers.

Wednesday’s announcement centers around efforts to curb invasive species, like Asian Carp from entering the Great Lakes.  On Thursday, the Governor is expected to announce his plans for investment in the state’s water infrastructure systems.  Finally, on Friday he is scheduled to detail his specific proposals for improving the state’s recycling efforts.

League staff have participated in briefings on these announcements and are reviewing the available information and awaiting the forthcoming announcements to determine the various impacts on local governments.  We will share additional details as the remaining initiatives are announced later this week.

Please contact our office if you have any questions.

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and chackbarth@mml.org.

Year-End Legislative Wrap-Up

While last week’s House and Senate adjournment merely marks the mid-point of this two-year legislative session, that did not mean that the Legislature coasted into their holiday break.

Highlighted by the intense activity surrounding OPEB reform, both legislative chambers pursued aggressive agendas in the final days before adjourning.  Numerous bills that the League was tracking and engaged with experienced some measure of action:

The now 13-bill OPEB package was signed by Governor Snyder this week as Public Acts 202-214 of 2017 and takes effect immediately.  New reporting requirements under the bill are expected to be phased in over the next year, with some reporting expected due as early as January 31, 2018.  The League will work to update member communities as more information becomes available in the next couple of weeks.

Senate Bill 110 clarifies that municipalities implementing plans to increase the supply of below market housing are not violating the Rent Control Act (PA 226 of 1988) by offering voluntary incentives. This League-supported legislation was introduced in February and received a committee hearing this last week of session. It’s anticipated the bill will receive another committee hearing in early 2018 and be voted out.

Two economic development proposals of key interest to municipalities were also voted out of the Senate during the last week of session.  Similar to legislation that died at the end of 2016, the Senate sponsor introduced Senate Bill 393, which consolidates all tax increment financing authorities, excluding Brownfield Redevelopment Authorities, into one act with added transparency and reporting requirements.  Senate Bill 469 would reinstate the Michigan Historic Preservation Tax Credit.  Both of these bills were voted out of committee and out of the Senate last week and have been referred to the House Tax Policy committee where they are expected to receive committee consideration in the new year.

The League was also pleased with the Governor’s signature on legislation allowing urban grocery store projects to access funding from the community revitalization program this week. The House and Senate coordinated efforts last week on House Bill 4207 to provide State Rep. Andy Schor with one last Public Act before he resigns to take over as mayor of the City of Lansing.

Three different proposals related to the new Personal Property Tax system also saw movement before the recess, with Senate Bills 570-573 being finalized and sent to the Governor.  These bills provide for a much needed local mechanism to address late-filed business exemption applications.  Senate Bills 590-593 were voted out of the Senate and were referred to the House Local Government committee.  These bills, promoted by the League and reported from the Senate committee earlier this fall, would essentially hold communities harmless from any reduction in their debt limit due to a reduction in their property tax base from now-exempt personal property.  Finally, House Bill 5086 was developed between local government groups and the Department of Treasury to address a host of technical and minor policy issues related to the continuing implementation of the new system and the need to align the statute with the practical realities of managing and administering the new law.  This bill moved nearly unanimously out of the House last week and will be considered by the Senate Finance committee in early 2018.

Finally, a League-supported proposal to allow for the voluntary coordination of election duties and functions moved this month as House Bill 4671 received overwhelming support in the House and is now awaiting further action before the Senate Elections & Government Reform committee.

Infrastructure and technology issues also experienced a flurry of lobbying and negotiation over these final weeks of 2017.

Our advocacy efforts combined with a broader coalition opposing legislation which would have preempted most local control over private telecommunication provider line relocation projects.  We were able to delay action on House Bill 5098 that was being pursued by the industry before the end of the year.  This proposal remains alive, however, and we will continue to work to block further action on this bill.

The discussions surrounding the proposed industry roll-out of small cell technology is quickly becoming a big issue for municipalities. Small cells are low-powered antenna nodes that have a range of up to 2 miles and are installed for the purpose of relieving congestion for wireless users. The term “small” refers to the footprint of the device. Small cell devices can be mounted on their own 40’ poles, or on existing utility or street light poles. Senate Bill 637 was recently introduced that would create a new act that allows for small cell technology to be consider a permitted use both inside and outside the right-of-way with limited exceptions. The bill would severely limit local control around siting, impair municipal ability to protect the public health, safety and welfare of residents, and hinder local government’s ability to manage the ROW, potentially leading to a significant increase in the number of new poles within our communities.  Supporters of this proposal are looking for a statewide regulatory structure that is similar to the Metro Act and the Video Franchise Act.

The League is opposed to the language as introduced but working with the Chairman, Senator Mike Nofs, of the Senate Energy and Technology Committee to improve the bill. To do that we have extensively researched legislative efforts in other states, discussed the issue with several communities and municipal attorneys, and looked at the Distributed Antenna System (DAS)/Small Cell License Agreement created by the Grand Valley Metro Council.

League staff have met with Chairman Nofs and presented alternative language based on our research and conversations with members. This viable alternative to the introduced legislation strikes a balance between local control and the nationwide deployment of this new technology. The telecommunications industry will continue its push for the bill when the legislature returns next year in the hopes of quick action . We have asked the Chairman that this issue not be rushed and that all parties be brought to the table to discuss this bill and our alternative.

The Michigan Municipal League is also participant on the Lead and Copper Rule Stakeholder Workgroup that is assisting MDEQ with recommendations to address modifications to the Administrative Rules promulgated pursuant to Michigan’s Safe Drinking Water Act, 1976 PA 399, as amended. The ongoing discussion continues to be about how to best protect the public from lead exposure.  Unfortunately, the preliminary draft rules add additional burdens to community water supply systems that run counter to the principles of asset management and may ultimately hinder the protection of public health. In addition to the League, there are more than a half dozen community water suppliers, the American Water Works Association, public health departments and others participating on this work group.

The draft rule would reduce the action level from 15 parts per billion down to 10 parts per billion, require communities to map their existing system to identify the presence of lead, require that a community water supplier be responsible for the replacement and cost of private lead service lines, along with many other requirements that could pose significant financial and logistic hardships on a community. The League has taken a stance that we are not opposed to determining how much lead is present in water systems or the need to systematically begin removing lead from systems, but it cannot be done in such a way that causes a financial hardship or conflicts with the Headlee Amendment or the Bolt decision.

Link to the Preliminary Draft Rule: 2017 Preliminary Draft Lead and Copper Rule

Link to the DEQ Summary Document: Summary Lead and Copper Rule Requirements

The Governor has requested this issue be placed on an aggressive timeline and a finalized draft rule is expected by the first of the year. Should our concerns not be addressed through the stakeholder process, communities will need to be prepared to offer public comments on the rule in early January. In the meantime we will continue to work with those stakeholders that have common concerns with the process and draft rules to make the necessary adjustment to help prevent exposure to lead while still allowing for the efficient management of our water supply systems.

The Legislature is scheduled to return to full session on January 10, 2018, with the Governor’s final State of the State message and the Fiscal Year 2018-19 budget presentation to follow shortly thereafter.

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and chackbarth@mml.org.

Legislative Committee Orientation Event at Capitol Teaches Ins and Outs of State Politics

League staff John LaMacchia and Chris Hackbarth at the Legislative Committee Kick-Off Orientation Thursday.

League staff John LaMacchia and Chris Hackbarth at the Legislative Committee Kick-Off Orientation Thursday.

(View more photos here)

About 60 local municipal officials from throughout the state were at the state Capitol Thursday in Lansing for the Michigan Municipal League’s Legislative Committee Kick-Off Orientation. The first-time event for the League was highly successful as members from the League’s various legislative policy committees heard from state lawmakers, League staff and communications experts.

The League makes policy decisions based on the input from its five League policy committees that are broken into topics – energy, environment and technology (chaired by Brighton City Manager Nate Geinzer); land use and economic development (chaired by Lake Isabella Village Manager Tim Wolff); municipal finance (chaired by Howell City Manager Shea Charles); municipal services (chaired by Novi City Manager Pete Auger); and transportation infrastructure (chaired by Farmington Hills Public Services Director Gary Mekjian).

The event was hosted by State Rep. Dan Lauwers in the Speakers Library in the Capitol across the street from the League’s Lansing office. Lauwers welcomed the group to the Capitol and was followed by League CEO and Executive Director Dan Gilmartin who thanked the members for their services on the policy committees and explained how important their work is to the League’s success as an organization.

State legislators speak at the Legislative Committee Kick-Off Orientation Thursday.

State legislators Rep. Christine Greig, Rep. James Lower and Sen. Ken Horn speak at the Legislative Committee Kick-Off Orientation Thursday. Kyle Melinn (left), co-owner of MIRS News Service, was moderator of the panel discussion.

Other event speakers were League staff members Chris Hackbarth, director of state and federal affairs; John LaMacchia, assistant director of state and federal affairs; Jennifer Rigterink, legislative associated; Emily Kieliszewski, member engagement specialist; and Shanna Draheim, policy director. There was also a panel discussion moderated by Kyle Melinn, news editor and co-owner of Michigan Information and Research Service (MIRS) and featuring State Rep. Christine Greig, House Democratic Floor Leader; State Rep. James Lower; and State Sen. Ken Horn.

Local officials listen to a presentation at the Legislative Committee Kick-Off Orientation Thursday.

Local officials listen to a presentation at the Legislative Committee Kick-Off Orientation Thursday.

Policy committee members from throughout the state attended representing the following communities: Village of Beverly Hills, City of Novi, City of Flushing, City of Gibraltar, City of Wyoming, Village of Copemish, City of Dexter, City of Center Line, City of Howell, City of Southgate, City of Grosse Pointe, Village of Chesaning, City of Livonia, City of Taylor,
City of Brighton, City of Charlotte, City of Westland, City of Woodhaven, City of Springfield, City of Dearborn Heights, City of Ann Arbor, Village of Mendon, City of Grand Blanc, City of Menominee, City of Midland, City of Berkley, City of St. Clair Shores, Village of St. Charles, City of Ovid, City of Monroe, City of Ann Arbor, City of Hazel Park, City of Douglas, City of Farmington Hills, City of Mt. Pleasant, City of Hamtramck, City of Alma, City of Hastings, City of Farmington Hills, City of Grandville, City of Dexter, City of Adrian, City of Rochester Hills, City of Orchard Lake, City of Cadillac, City of Rochester
City of Plymouth, City of Wayne, Village of Cassopolis, City of Dexter, City of Milan, City of Midland, Village of Sparta, City of Alpena, City of Saline, City of Gladstone, City of East Lansing, City of Clio, Village of Lake Isabella, Village of Blissfield, and Village of Quincy.

Dusty Fancher and Dave Waymire speak at the Legislative Committee Kick-Off Orientation Thursday.

Dusty Fancher and Dave Waymire speak at the Legislative Committee Kick-Off Orientation Thursday.

After lunch, the group heard about communications, public relations and the insider’s guide to lobbying from Dave Waymire, partner at Martin Waymire; and Dusty Fancher, partner with Midwest Strategy Group.

To learn about the latest legislative issues involving Michgian’s communities, subscribe to the League’s Inside 208 blog here: http://blogs.mml.org/wp/inside208/ (view subscribe box on right side of page). Learn more about the League’s policy committees here: http://www.mml.org/advocacy/committee/index.html. View additional photos from the event here.

Matt Bach is director of media relations for the League. He can be reached at mbach@mml.org and 734-669-6317.

Energy Deal Reached on the Last Day of Lame Duck

Legislation making major changes to how the state regulates energy, including the construction of new power plants, how customer choice is managed and increasing the percentage of electricity that must be generated from renewable sources finally passed the House and the Senate.

Passage came after a tentative framework of a deal came together between the state’s major utilities, Consumers Energy and DTE Energy, and those advocating greater customer choice, two groups long at odds on energy legislation.

The approved versions of SB 437 and SB 438 would put in place strict parameters as to how the Public Service Commission would calculate the charge alternative electric suppliers would pay Consumers or DTE if they did not reach a contract with an entity to supply them with power to sell to their customers.

The deal drops Senate language that would have meant a minimum 4-year charge and maximum 10-year charge on customers of alternative electric suppliers. The bills could also reduce the size of the choice market if those customers return in large numbers to utilities.

The legislation sets up a revised certificate of necessity process for utilities to win state approval of building new power plants or purchasing existing ones. And another major provision requires utilities to submit integrated resource plans to the state showing five-, 10- and 15-year projections of their load obligations and plans to meet those obligations.

The legislation would increase the percentage of electricity utilities must generate from renewable sources from 10 to 15 percent by 2021.

Finally, those who currently generate their own power through the net metering program would avoid having to pay a charge to support the grid for the first 10 years, but there would be a study on the subject with the PSC later implementing a tariff no sooner than 18 months from the bill’s effective date on new net metering users.

The Governor is expected to sign the bills.

John LaMacchia is the Assistant Director of State and Federal Affairs for the League handling transportation, infrastructure, energy and environment issues. He can be reached at jlamacchia@mml.org or 517-908-0303.