Transit Oriented Development Bill Gets Hearing in House Committee

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A bill, HB 4422, to allow for transit oriented development activities in business improvident zones received a hearing in the House Commerce and Trade committee this week. We thank Rep. Andy Schor for introducing this legislation!  Transit is vital to attracting and retaining talented individuals in our communities and having this financing option as a tool will be important in seeing economic development happen around those transit stops.

The League is fully supportive of this legislation.

Nikki Brown is a legislative associate for the League handling economic development, land use and municipal services issues.  She can be reached at nbrown@mml.org or 517-908-0305.

Michigan Legislature Tees Up Budget Deal; Revenue Sharing Numbers Reviewed

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Following the overall budget deal struck last week between the Governor and Legislative leaders, the House and Senate this week set conference committees in motion drafting the particulars of that deal. Nearly all of the conference reports have been approved and sent to the floors of the House and Senate. The conference report on the General Government budget, which includes Revenue Sharing (SB 122), was approved yesterday and awaits final action.

The conferees agreed to maintain statutory revenue sharing payments for all cities, villages and townships at current year levels for FY16, with $243 million in ongoing spending and $5.8 million in one-time funding that goes to support payments to 100 townships that would otherwise not have received a statutory revenue sharing payment.

In a new twist, the conference report includes a boilerplate section that calls for a legislative workgroup to be formed that will explore revisions to the distribution formula for statutory revenue sharing. Click here to view a spreadsheet showing anticipated revenue sharing dollars by community.

In talking with the Senate chairman, details on the structure and timeline for this new workgroup have not been developed yet, but will include input from the League.  The contents of each individual budget conference report will be combined into one, omnibus budget bill (SB 133), that will likely be voted on next week.  Please contact our office if you are interested in the estimated payment information for your community.

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

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Committee Hearings Continue on House Road Funding Plan

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The Roads and Economic Development committee held a second day of hearings on the House road funding plan. The committee first took testimony on HB 4615, HB 4614, and HB 4616 which would increase the diesel fuel tax to 19 cents per gallon on October 1, 2015 making it equal to the tax paid on gasoline, and beginning in 2016 would adjust the tax for inflation or by 5 percent, whichever is less. The changes would generate $45 million in new revenue. Next the committee heard testimony on HB 4612 would raise registration fees on hybrid and electric vehicle generating about $5 million in new revenue.

These four bills are the only bills that generate new revenue for roads. The League has continually stressed the point that our current infrastructure needs cannot be solved without a significant and dedicated source of new revenue and continue our opposition to any plan that does not address this concern.

Finally the committee took testimony on, and the League testified in opposition to, HB 4607 and HB 4608. These two bills would cut MEDC funding by $145 million and redistribute that revenue to roads. This redistribution of revenue would have a potentially devastating effect on the Community Revitalization Program, Public Spaces and Community Places program, and many other MEDC grant opportunities our members take advantage of. Additionally the funds that would be diverted to roads would bypass any additional funding for public transit further continuing the trend of not investing adequate resources to improver or entire transportation network.

Next week the committee will hold it final day of testimony and will discuss bills that will dedicate General Fund dollars to roads.

John LaMacchia is a Legislative Associate for the League handling transportation, infrastructure, and energy issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

Conference Committee Finalizes $400 Million in General Fund Spending on Roads

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The House and Senate conference committee on transportation today approved a $400 million contribution from the General Fund to go towards road fixes. Approximately $140 million will be used to ensure that the state can match all available federal aid highway funds. The remaining $240 million will be distributed to MDOT, county road commissions, and cities and villages. This is different from General Fund spending in each of the last two years when legislator we allowed to select projects throughout the state.

As a result of this budget agreement Cities and villages will receive and additional $56.8 million in FY 16. We will provide the breakdown of these additional dollars when they are available. Although more funding is being provided it still falls far short of the revenue needed and the Legislature cannot sustain the practice of one-time funding for a road fix long term.

John LaMacchia is a Legislative Associate for the League handling transportation, infrastructure, and energy issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

Committee Hearings Begin on House Transportation Proposal

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The newly formed Roads and Economic Development committee held the first of three committee hearings this morning on a package of bills introduced by House Republicans to fix Michigan’s crumbling roads.

HB 4610 allows townships contributing greater than 50% to a road project over $50,000 to require competitive bidding and the League has no position on this legislation due to it having no direct impact on our communities.

HB 4611 would require competitive bidding on all MDOT and local road projects over $100,000, and HB 4613 would require MDOT and local road agencies to secure warranties for projects over $1 million. We are currently opposed to these two bills as part of this package. The League believes we must find a sustainable long-term solution to the problem that includes new revenue that is dedicated to the entire transportation system.

The proposed package of bills only has $50 million in new revenue with the remaining billion coming from reprioritizing General Fund spending and projected growth. It neglects to make a much need investment in transit and jeopardizes economic development funding many of our communities benefit from. This plan impacts the long-term certainty our communities need to plan and one of the key factors for our opposition.

The League is committed to working with the legislature towards a long term solution and we are hopeful that solution can found sooner rather than later.

John LaMacchia is a Legislative Associate for the League handling transportation, infrastructure, and energy issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

 

Bill Prohibiting Local Regulation of Knives Passes Senate Committee

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This week, SB 305, a bill to prohibit local units of government from regulating the transportation, possession, sale, or licensing of a knife or knife making components, passed the Senate Local Government Committee.  This bill would also prohibit a local unit of government from regulating the manufacture of a knife more restrictively than the manufacture of any other commercial good.

The League is opposed to this legislation and it is now before the full Senate.

Nikki Brown is a legislative associate for the League handling economic development, land use and municipal services issues.  She can be reached at nbrown@mml.org or 517-908-0305.

 

 

DEQ’s Road Right-of-Way Alternate Institutional Control Process Survey

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Michigan’s environmental cleanup laws allow for the use of institutional controls when environmental contamination is proposed to be left in-place at a property. Often times, this contamination has migrated onto property controlled or operated by local units of government, tribal government or other authority, such as, road right-of-ways. Institutional controls are generally administrative and legal tools that are created for the purpose of providing information regarding the risks associated with contamination and the activities that are to be restricted or prohibited to protect the public health, safety, and welfare and the environment.

In 2014, the Remediation and Redevelopment Division (RRD) of the Michigan Department of Environmental Quality (DEQ) introduced its Road Right-Of-Way Alternate Institutional Control as an instrument that may be used when contamination is proposed to be left in-place within a road right-of-way.

The DEQ-RRD has invited our members to complete a simple survey to provide them with an understanding of your knowledge, use, concerns or desire to learn more regarding the use of this instrument to control exposure and the risks associated with contamination within a road right-of-way. For a link to the survey please click here.

For questions regarding the survey, please contact Mr. Kevin Schrems at 517-284-5149 or schremsk@michigan.gov, or Mr. Dan Yordanich at 517-284-5174 or yordanichd@michigan.gov.

John LaMacchia is a Legislative Associate for the League handling transportation, infrastructure, and energy issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

 

Legislative Subpoena Authority Bills Move Out of Committee

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Yesterday, the House Oversight and Ethics committee passed out HB 4522 with only one legislator voting no.  A different substitute was adopted from last week requiring that at least one minority vote must be in favor of passing the subpoena resolution in an attempt to help limit abuse of the act.  It also stated an attorney must be consulted before passing the resolution and the normal 18 hour notice of a committee hearing must now be a 72 hour notice when a subpoena resolution will be on the agenda.

The ability to subpoena local records is already allowed under Act 118 of 1931 by a resolution of the full house/senate.  This legislation would give authority to the committee that receives and reviews auditor general reports (the Oversight committee in this case) to subpoena witnesses by a vote of the committee  and not the full house/senate.

The League along well the Michigan Townships Association, Michigan Association of Counties, Michigan Sheriff’s Association and school organizations are opposed to this legislation.

Nikki Brown is a legislative associate for the League handling economic development, land use and municipal services issues.  She can be reached at nbrown@mml.org or 517-908-0305.

 

Speaker Cotter Unveils House Republican Transportation Solutions

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At a press conference this afternoon Speaker Kevin Cotter released the House Republican transportation plan. The highlights are below.

  • This plan will generate $1.05 billion for transportation
  • $700 million from the General Fund
  • $185 million from Reprioritizing Restricted Funds
  • $162 million from Tax Fairness
  • Reforms and Efficiencies

General Fund: The $700 million the Speaker is proposing will come from expected future growth in revenues and additional anticipated revenue available based on the upcoming Consensus Revenue Estimating Conference. This portion of the plan lacked specifics so it is yet to be determined what impact this would have on the state budget moving forward but the Speaker said he would be able to do this without making cuts.

Reprioritizing Restricted Funds: Of the $185 million, $75 million will come from tobacco settlement dollars currently in the 21st Century Jobs Fund, $60 million from the states tribal gaming compact, and $50 million from eliminating the film tax credit.

Tax Fairness: The Speaker will achieve the projected $162 million through the creation of tax fairness by eliminating the Earned Income Tax Credit and using that $117 million for roads. The remaining $45 million will come from diesel parody and increased fees on electric and hybrid vehicles.

Reforms and Efficiencies: The plan will require competitive bidding on all MDOT and local road projects over $100,000, require MDOT and local road agencies to secure warranties for projects over $1 million, and allow townships contributing greater than 50% to a road project over $50,000 to require competitive bidding.

Other highlights in this plan include a phase in over four year with $522 million going to roads in FY 16, $697 million in FY 17, $872 million in FY 18, $1.05 billion in FY 19 and beyond. All of the new money would only be sent to MDOT, Counties, and Cities and Villages. None of the new money would go to transit operations. The current gas tax will remain at 19 cents but would be tied to inflation under this plan. A copy of the document Speaker Cotter provided can be found at the following link. House Republican Road Funding Plan

As the League gathers more details on this plan in the coming days we will be sure to update you with any new information.

John LaMacchia is a Legislative Associate for the League handling transportation, infrastructure, and energy issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

Senate Passes Mobile Home Legislation

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Today the full Senate unanimously passed HB 4054 this week, a bill that makes changes to the Mobile Home Commission Act.  HB 4054 is a reintroduction from last year by Rep. Andy Schor in an effort to address a situation that occurred in his district with the Life O’Riley Mobile Home Park. This legislation requires the DEQ to outline clear roles for local units of government and enforcement (a problem that occurred with the Life O’Riley mobile home park that ended being condemned and residents forced to seek housing elsewhere). In addition, there are more reporting requirements of the DEQ to local units of government of rules promulgated or when a mobile home is found to be in violation.

The League is supportive of this legislation.

Nikki Brown is a legislative associate for the League handling economic development, land use, and municipal services issues.  She can be reached at nbrown@mml.org or 517-908-0305.