Legislative Update
Following are some of the bills voted on by the House of Representatives in October that I thought would be of interest to you. For more information on these or other bills, please contact my office toll-free at (888) 833-6636.
Suspend Funding Restrictions on the 21st Century Jobs Fund: The House passed a plan to change the statutory funding restrictions on the 21st Century Jobs Fund. The funding restrictions on the 21st Century Jobs Fund would be suspended for only FY 09 and FY 10.
MBT Battery Credit Extension: The House passed a plan to increase the number of Michigan Business Tax (MBT) credits available for battery systems. The bill would require that the new credits be awarded for manufacturing of large scale power systems designed to convert renewable power into firm dispatchable power. Also included in the bill is a 500 job creation threshold, federal loan guarantee requirement, and a penalty for failure to meet the terms of the credit agreement.
Establish Animal Welfare Standards: The House passed a plan to add standards of care for "covered animals" to the Animal Industry Act.
Economic Development Loans-Federal Intermediate Re-lending Program: The House passed a plan that will make a series of technical changes in order to allow qualified rural communities to take advantage of the Federal Intermediate Re-lending Program, including allowing local units of government to accept federal loans for the assistance of business as well as allowing locals to issue loan revenue notes in addition to bonds.
Extending the Community Mental Health Program Sunset: This plan, which was signed into law, updates the Mental Health Code and to allow Community Mental Health Service Providers to continue to be able to carry forward up to 5 percent of their fund balance into the next fiscal year.
FY 2009-10 Supplemental Appropriation - Restore Various Budget Cuts: The House passed a plan to partially restore Fiscal Year 2009-10 cuts to the Michigan Promise Grant Program, State Aid to Libraries, the Department of Community Health, and to statutory revenue sharing. All together, the bill would appropriate $434.7 million ($173.6 federal, and $261.2 restricted). The restricted funds come from two newly-created sources: the "Michigan Future" fund and the "Michigan Health Care Rebate" fund.
Extending Special Alternative Incarceration Sunset: The House passed a plan that will extend the sunset of the special alternative incarceration program (SAI) until Sept. 30, 2010. The bill also changes eligibility requirements to allow prisoners serving their first sentences to participate in SAI programming.
Protecting Michigan's Wetlands: Identical to Senate Bill 785, The House passed a plan to amend the Wetlands Protection Act to: make state program requirements more consistent with federal requirements; streamline the permitting process for categories of activities that are likely to have minimal adverse affects on aquatic resources and for activities within areas of both state and federal jurisdiction; provide assistance for potential development of new cranberry production enterprises; foster new efforts to involve local governments and conservation districts in providing assistance in program administration; specify wetland mitigation requirements; and establish a Wetland Advisory Council to make recommendations for future program changes.
Freezing the Income Tax Personal Exemption Inflation Adjustment: The House passed a plan that will amend the Income Tax Act to freeze the inflationary adjustment that taxpayers make to their personal exemption for the 2009 and 2010 tax years. Taxpayers could again claim the adjustment when filing their taxes for the 2011 tax year.
Health Care Rebate: The House passed a plan to create the Michigan Health Care Rebate and assess and collect a quality assurance assessment on physicians to finance Medicaid physician services reimbursement payments. This will allow the state to leverage federal funding for health care.
MBT Credits for Certain Expenses for QAAP Taxpayers: The House passed a plan that will update the Michigan Business Tax to provide certain taxpayers under the Quality Assurance Assessment Program (QAAP) a credit for the portion of the Michigan Business Tax gross receipts liability attributable to the cost of medications administered either by injection or intravenously that were purchased from other persons.
Create the Guaranteed Asset Protection Act: The House passed a package of bills to create the Guaranteed Asset Protection Act and amend related parts of law to clarify the intention of this new Act. A Guaranteed Asset Protection waiver is a contractual agreement which can be added into, or onto a finance agreement. In the event that a vehicle is deemed a total loss or an unrecoverable theft, the creditor agrees to cancel or "waive" all or part of amounts due on a borrower's finance agreement.
Advance Tuition Payment Fund Contributions: The House passed a plan to update the Income Tax Act to create a new deduction for "charitable contributions" to the Advance Tuition Payment Fund in the Michigan Education Trust (MET) program for the 2010 tax year and thereafter. Prior to this bill, a deduction would only be allowed for payments made to a MET "advance tuition payment contract" specific to a particular child.
MBT Deduction for Advance Tuition Payment Fund Contribution: The House passed a plan that will amend the Michigan Business Tax Act by altering the definition of the business income tax base to create a new deduction for "charitable contributions" to the Advance Tuition Payment Fund (to the extent not already deducted federally) for the 2010 tax year and thereafter.
Allowing for Quicker Forfeiture Proceedings: The House passed a plan to allow for a request for expedited property forfeiture proceedings on the grounds that a building or structure subject to forfeiture constitutes a health or safety hazard. The bill would also allow a forfeited property to be donated to certain nonprofit and governmental organizations.
Expanding MEGA Credits for Businesses: The House passed a plan to make several updates to the Michigan Economic Growth Authority (MEGA) tax credits that are as economic incentives used to help keep businesses that are looking at re-locating outside of the state of Michigan from leaving the state.
Allow Minors in Possession of Alcohol Immunity if they Seek Emergency Medical Treatment: The House passed a plan that will allow minors to avoid being penalized for consuming alcohol if they call for emergency assistance or go to an emergency room for care. Minors would also avoid penalties if they accompanied a person to the emergency room. There have been several situations where individuals have died because friends were too worried about prosecution to contact 9-1-1.
Allow a Liquor License for Western Michigan University in Grand Rapids: The House passed a plan to amend the Michigan Liquor Control Code to allow the downtown Grand Rapids campus of Western Michigan University to be eligible for an on-premise license to sell liquor during regularly scheduled activities.
Allow a Liquor License for Henry Ford Community College, Jackson Community College, Monroe Community College and Washtenaw Community College: The House passed a plan to amend the Michigan Liquor Control Code to allow the Student Center Culinary Arts Building and the Administration Conference Center on the Dearborn Campus of the Henry Ford Community College; the George E. Potter Center and Community Events Center at Jackson Community College; the La-Z-Boy Center at Monroe County Community College; and the Washtenaw Community College Morris Lawrence Building to be eligible for an on-premise license to sell liquor during regularly scheduled activities.
To monitor legislation, visit www.legislature.mi.gov.