EAA Legislation (Update)

Run over by right-to-work

Controversial legislation leaves other initiatives in the dust

By Kathleen Gray Free Press Staff Writer

   The controversial right-to-work legislation speeding through Lansing sucked most of the air out of the state Capitol last week, leaving the fate of several other key initiatives once thought sure to be dealt with in the lame-duck session in doubt.

   Legislation such as the repeal of the personal property tax, the creation of a lighting authority in Detroit, and the contentious Education Achievement Authority may now have to wait.

   However, two historic bills — one creating a regional transit authority that will work to coordinate and improve public transportation in southeast Michigan, and the other a restructuring of Blue Cross Blue Shield from a nonprofit to a mutual — passed the state House and Senate and are on their way to Gov. Rick Snyder.

   The transit authority barely made it through the House last week, passing with one vote to spare.

   It’s expected to help more than 150,000 existing daily bus riders in metro Detroit, as the federal government is now poised to inject millions into public transit in the region. The feds had declined to invest in transit in the region without a regional authority.

   The Blue Cross Blue Shield legislation has big implications for the insurance giant’s 1.4 million Michigan customers, who may see rate and service changes when the insurance giant no longer gets special tax breaks because it will lose its nonprofit status.

   Both the House and Senate are hoping to finish up their business on Thursday, but have scheduled another week of session, if necessary. However, that extra week is unlikely to materialize, officials in both chambers said.

   The condensed schedule means that some issues will fall by the wayside, the victim of rules that require bills that have been passed by one of the chambers to hold for five days before they can be considered by the other.

   • CONTACT KATHLEEN GRAY:

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Where the issues stand

   RIGHT-TO-WORK

   Expected to take up much of the debate in the House on Tuesday. Democrats are likely to use every parliamentary tool available, like long speeches and requests for reconsideration, to try to slow the progress of the legislation that would make it illegal to require financial support of a union as a condition of employment.

   Prospect: The House is expected to take final votes and pass the legislation Tuesday. If Democrats ask for a reconsideration, it would push final passage into Wednesday. Gov. Rick Snyder will have14 days to sign the bills and has said he intends to do so.

   DETROIT LIGHTING

   Would allow Detroit to create an authority that would have the ability to sell bonds to help illuminate the city. It was passed by the Senate after months of political maneuvering; the House has to concur on changes made by the Senate to the bill. Detroit has been plagued by broken streetlights that jeopardize public safety.

   Prospect: Could get caught up in the fallout of the right-to-work fight. Democrats say they like the lighting authority, but are unwilling to provide votes on bills that are important to Snyder — and this one is. It also doesn’t have universal Republican support.

   EDUCATION ACHIEVEMENT AUTHORITY

   The bill, which would give broad authority to the state over the bottom 5% of schools in the state, is stuck in the House Education Committee, unable to get the necessary votes to move to the full House.

   Prospect: Dies for the year. Even if it did get out of committee and was approved by the full House, there’s not enough time for it to be considered by the Senate.

   EMERGENCY MANAGER

   Would replace Public Act 4, which was repealed by voters on Nov. 6, and Public Act 72, the emergency financial manager law that has been in place for decades to help cities, like Detroit, get back on sound fiscal footing. The bill, which gives financially distressed cities four options for state intervention is to be voted on by the House this week. Because the House rewrote an existing bill, it’s possible that it can also get through the Senate.

   Prospect: Likely to pass. Snyder wants the bill in place before more action has to be taken in the city of Detroit.

   PERSONAL PROPERTY TAX

   Abill to eliminate the personal property tax businesses pay on things like office furniture, and replace it with a use tax, which is paid on things like hotel rooms. The switch would be subject to a 2014 statewide vote. Legislature and business interests claim the tax stymies economic growth. But community leaders depend on revenues generated by the tax to balance their budgets.

   Prospect: It could be voted on this week by both the House and Senate. But there still is significant opposition from local communities. This probably won’t happen this year.

   HEALTH EXCHANGES

   Dead for the year. Under pressure from tea party activists, the House Health Policy Committee rejected a state-based health exchange that would have created a database of insurance providers that residents could use to compare plans and rates on policies. Snyder is now pursuing a federal/state partnership for the exchange, which is required under the national Affordable Care Act.