Michigan Senate Votes for New Funding for Transportation!

There are many transit options in Michigan and a complete transportation funding program would support all of them.

There are many transit options in Michigan and a complete transportation funding program would support all of them.

In a huge vote, the Michigan Senate has just passed HB 5477, a bill that would phase in a new percentage-based gasoline tax that will result in an additional $1.2 billion for transportation funding by 2019. Revenue from other bills in this package result in transportation increases as high as $1.5 billion annually once fully phased in.

The bill would replace the current cents per gallon structure, which is 19 cents per gallon on gasoline and 15 cents per gallon on diesel fuel. Under the bill, the percentage tax on gas would start at 9.5 percent as of April 1, 2015. It would increase to 11.5 percent on January 1, 2016; to 13.5 percent on January 1, 2017; and to 15.5 percent on January 1, 2018.

Thank you to all of our members who reached out to their Senator asking them to support this important legislation. The bill will now need to be approved by the House. Our advocacy efforts cannot end here. We encourage you to immediately begin reaching out to your House member and ask them to vote yes on House Bill 5477 as approved by the Senate.

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

House Considers Cancer Presumption Legislation with State Paying Increased Costs

The legislature is one again considering cancer presumption legislation. After being vetoed by Governor Engler in 1998 cancer presumption has returned in some form each legislative session.

This morning the House Insurance Committee heard testimony Senate Bill 211, a bill that creates a cancer presumption for firefighters. It is presumed that if a firefighter develops certain types of cancer that it occurred during the course of his or her employment.

The League has always opposed cancer presumption because in its previous versions it would more than double workers compensation premiums for communities with full-time firefighters.  We consider that a conservative estimate. In a time where communities’ budgets are still reeling from revenue sharing cuts and property tax declines, this is a cost our communities are unable to afford.

In the Senate-passed version the First Responder Presumed Coverage Fund is created in workers compensation but as a separate fund (similar to what the State has done with the silicosis or dust fund). Unlike the dust fund (where workers compensation providers are charged an assessment) the legislation indicates that the State will pay for claims submitted to the fund.

The bill indicates that the fund will not begin until the legislature appropriates money. If there is not enough money in the fund, claims will not be paid.

The committee did not vote on the legislation.

Samantha Harkins is the Director of State Affairs for the League. She can be reached at 517-908-0306 and sharkins at mml.org.

House Financial Liabilities Reform Committee Considers Municipal Security Legislation

This morning the House Financial Liabilities Reform Committee heard testimony on House Bill 5650, legislation that would amend the Revised Municipal Finance Act to provide for a statutory first lien on all taxes subject to an unlimited tax pledge for a municipal security authorized or issued before December 23, 1978, or approved by the electors of a municipality. This would apply to an unlimited tax pledge made prior to or after the date of enactment of the bill.

Current law requires that the taxes be set aside as collected for the payment of the principal and interest on the municipal securities divided pro rata among the various sinking funds and debt retirement funds in accordance with the amount levied. Upon collection and prior to dividing the funds pro rata, House Bill 5650 would require the funds set aside to be held in trust for the owners of the municipal security.

The committee did not vote on the legislation.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

House Considers Legislation to Allow More Local Bonding for Pension/OPEB Costs

This morning the House Financial Liability Reform Committee heard testimony on House Bill 5279, legislation that would allow communities with an A credit rating to bond for pension and other post employment benefit (OPEB) costs if that community obtains bond insurance.

In 2012 the Governor signed Senate Bill 1129, legislation that allows communities with a AA bond rating or better to bond for the costs of switching from a defined benefit to a defined contribution plan or for OPEB costs. This tool is very important for communities.

A number of communities with A bond ratings wanted to be included, and it was made clear by the Department of Treasury in 2012 that the administration would not expand the scope. The Department is opposed to HB 5279 as well, but we will continue to push forward.

The committee did not vote on the legislation.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

Contact Michigan Senators Today to Urge Their Support of Transportation Funding Increase

There are many transit options in Michigan and a complete transportation funding program would support all of them.

There are many transit options in Michigan and a complete transportation funding program would support all of them.

Discussions are currently taking place in Lansing on finding a way to raise new revenue for Michigan’s transportation network during the current lame duck legislative session.

House Bill 5477 is a key pieces to this new revenue.

It would switch the current cents per gallon tax on fuel to a percentage based tax on the wholesale price and gradually increase that percentage over the next several years.

The proposed funding solution is a nine-bill package that would provide yearly increases to transportation funding and would reach $1.5 billion in new annual revenue by 2020.

Legislators have an incredible opportunity to solve Michigan’s transportation needs and develop a comprehensive solution for investing in Michigan’s infrastructure.

Michigan can no longer wait for a comprehensive transportation funding plan.

Michigan can no longer wait for a comprehensive transportation funding plan.

This plan would not only invest in roads and bridges, but would provide additional funds for public transit, trails, ports, and rail. Download the Michigan’s Can’t Wait flyer.

The Senate could take this up for a vote as soon as Thursday (Nov. 13, 2014) and we need your help. Please contact your Senator and let them know that you are supportive of increasing transportation revenue and the positive impact it will have on your community. We are on the verge transforming our transportation system and you can help ensure its successful passage.

To make it as easy as possible for you, we’ve drafted a sample email that you can edit and send to your senators.

To access this tool, go to our action center here and click on the item in the blue Action Alert! box.

A comprehensive transportation funding system is one of the four key parts of the Michigan Municipal League’s Partnership for Place initiative released in 2013. Read more about why this is important here.

This blog post was by John LaMacchia II, legislative associate for the Michigan Municipal League. John can be reached at jlamacchia@mml.org and 517-908-0303.

House Committee Approves Bill Enforcing Income Tax Collection from Lottery Winners

This morning the House Tax Policy Committee reported House Bill 5924, legislation that would require the Department of Treasury to withhold local income tax from a lottery winner at the time the winnings are claimed.

While a lottery winner is required to pay local income tax (if applicable), it can be very difficult to enforce. This would aid in that enforcement.

Thank you to Rep. Daley for introducing this legislation and to the committee chair, Rep. Farrington, for giving us a hearing so quickly.

The legislation now goes to the full House for consideration.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

EPA Proposed Regulation on Dental Amalgam Separation Could Cause Burden on Local Treatment Systems

The Environmental Protection Agency is having an open comment period until December 22nd, to allow individuals and organizations to respond to proposed new regulation of discharge of dental amalgam into publicly owned treatment works (POTWs) as part of the Clean Water Act. The regulation would classify dentists as an “industrial user” under part 23, which would require additional pretreatment measures that could be burdensome to locals due to the increased oversight requirements in this category. Michigan already has an amalgam separation law on the books, but this new provision would place dentists into a category (industrial user) that the DEQ does not have authorization over in order to modify the federal requirement to better align with the existing state law. If you would like to read about this issue further and/or submit comments, click here.

Summer Minnick is the Director of Policy Initiatives and Federal Affairs. She can be reached at 517-908-0301 or sminnick@mml.org.

Free webinar on New FCC Wireless Siting Rules on Nov. 5th

On November 5th from 1-2pm, BB&K telecommunications attorneys are providing a free webinar to provide an overview of the new FCC wireless siting rules, the timetable for responding to them, and the challenges and opportunities facing public bodies as they attempt to protect local interests, while complying with federal requirements governing zoning of wireless facilities.

The webinar will cover:

The FCC’s new rules, which are expected to affect both the substance and the process associated with wireless siting.

The effect of the new rules on contracts for use of publicly owned property

The legal issues raised by the rules and what local governments need to do if they wish to challenge, or obtain clarification of, the rules

Ways local governments can respond to the rules that provide the maximum protection to the public

To register for the webinar click here.

Summer Minnick is the Director of Policy Initiatives and Federal Affairs. She can be reached at 517-908-0301 or sminnick@mml.org.

West Michigan Environmental Council to Host Fracking in Michigan Conference

On Wednesday, December 3, 2014 the West Michigan Environmental Council will host a conference exploring Fracking in Michigan. The event will be held at the Kellogg Center in East Lansing beginning at 10 a.m.

The event will explore a number of issues around fracking including the impact on local government. For more information or if you are interested in attending, you can check out the event’s website.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

HAM Radio Legislation Passes Senate

Today SB 493, a bill dealing with amateur radio operations, passed the full Senate.  As it was introduced, it had a significant impact on local control and zoning.  However, through a workgroup process, the bill was made significantly better (substitute found here: SB 493 S2 (3)) and now mirrors the Federal regulations that our local communities are already required to adhere to.

It also discusses an advisory council made up of amateur radio industry folks and local government folks so anyone with a question can seek feedback and research from this group either at the industry level or the community level.

We appreciate the work the bill sponsor and his office put into the legislation and hearing our concerns from a local government perspective. Also, a big thank you to Tim Wolff, village manager of Lake Isabella, for attending the workgroup meetings with me and providing valuable feedback.

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