News

A chaotic week of long nights ended with some fireworks. After Republican House members walked out of session demanding to vote on amendments to paid sick leave, tipped wages and road funding. Democrats then passes a series of bills that had unanimous support from their members.

It was a rough week for business with the Michigan Senate staying late into the night/early morning to pass legislation on party lines, and the House finalized a significant unemployment increase and benefits extension to the Governor.

Fixes to keep tipped wages and improve implementation of earned sick time are both now unfortunately unable to happen this year (unless an unlikely substitute is made for earned sick time in another bill).

We did see some wins as items that failed to move from one chamber to the other are now ‘dead’ for this session. But we still have significant concerns with a number of items that now sit in the house. The House & Senate reconvene Wednesday for the final days of Lame Duck.

 

Top line items – what is still in play:

• The Senate passed legislation allowing local units of government to mandate employer, contractor and subcontractor wages (and other employment requirements) for any private or public project that receives an incentive (including bond financing) or has a contract with a local government. The language of the bill creates incredible uncertainty that any private employer and project receiving any incentive would be subject mandates.

• • Joshua Lunger testified in opposition with a colleague from the Home Builders Association of Michigan with a focus on potential harm to housing development and revitalization of the metro areas of Michigan.

• So-called “Polluter Pay” bills that endanger community revitalization passed the Senate.The bills make it harder to bring blighted properties back to life, discouraging new owners from fixing them up, especially in places like Grand Rapids (SB 605-607).

• • Michigan’s clean-up standards, which have been pivotal for community revitalization and environmental protection, are under threat. Michigan’s effective law already requires polluters to pay. It is a best practice for redevelopment efforts particularly in urban communities – where contaminated properties have been restored to vibrant use.

 

Top line items – what is “dead” in Lame Duck:

• The Michigan Senate failed to advance major changes to workers’ compensation that may have increased premiums ~20 to 40 percent.

• The Michigan Senate also failed to advance the “Michigan Family Leave Optimal Coverage” Act with replacement language. This new program came with massive uncertainties in costs to employers and employees and would have been one of the most expansive in the country (SB 332-333).

• Bills that would virtually eliminate independent contracting in Michigan failed to move in the House (HB 4390).

• A significant expansion to Michigan’s Bottle Deposit Law to other liquids also failed to pass the Senate (SB 1112-1113).

 

What else moved this week (still alive):

• “Price Gouging” bills were voted out of both the Senate and are the House.

• • The price gouging legislation is extremely broad and would limit price increases to during a state of emergency for building materials, food, goods, lodging and more (defined as unjustified disparity in price or >10% increase). The House version was amended to 15%.

• The Senate passed a bill that would require collectors and processors of personal data to obtain consent from a consumer before processing the consumer’s personal data and provide a privacy notice concerning the purpose of that data processing (SB 659).

• The Senate passed productivity credits. This legislation helps individuals gain valuable skills and provides opportunities for life outside of prison, which reduces recidivism rates and keeps our communities safer. The bills passed the Senate yesterday. (SB 861-864)

• A bill that requires public employers to pay at least 80% of an employee’s healthcare benefits passed the Senate (SB 1129-1130) and House (HB 6058)

• • The current maximum of 80% would now be the floor and local governments, schools and more will see their costs increase.

• A bill that would require prevailing wages for broadband projects (including private projects) stalled in the House (HB 6051).

• Bills passed the House that would  eliminate mandatory overtime for nurses except in specific circumstances (HB 4551). Hospitals and Medicaid will see potentially significant cost increases to comply or be fined.

 

What is now “dead” because they failed to pass the first legislative chamber:

• We opposed the repeal of “Dark stores” legislation that could significantly increase property taxes on retailers. House Bill 5865-5868 would prohibit tax assessors from using vacant stores with deed restrictions as comparable real estate for open and operating stores. This hurt retailers and other businesses across the region as they try to balance tight margins, rising prices, decreasing consumer spending, and ever-increasing property tax evaluations.

• Medical malpractice legislation that could increase the cost of health care by expanding the circumstances and increasing the limits on damages for noneconomic loss. (House Bills 6085-6086; Senate Bills 1158-1159)

• Bills that would amend Michigan zoning including setting a max cap on mandated parking spaces per unit failed to move from the House after Republicans walked out to demand action on other items.

• • These caps can be used to make residential development financially unfeasible, and we support allowing the market to respond more to demand. These were expected to pass with bipartisan support.

• A bill failed to pass the House that will raise solid waste tip fees, raising the cost of disposal in the state (HB 5333). It was put up for a vote late and Rep. Shannon (D) voted no at first, before switching. Rep. Whitsett (D) at that time had left the House floor.

• A bill requiring new nurse-to-patient ratios at hospitals was moved forward with the elimination of mandatory overtime but was never taken up for a final vote (HB 4552).

 

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As always, please contact our team with your questions and concerns. We are happy to connect you with your legislator or to further expand on any legislative topic.