Volume XXXI - Issue 42 October 18, 2019

REASON FOR STALLED SUPPLEMENTAL? AD BOARD MANEUVER – In the ongoing saga of “will they, won’t they” regarding adjustments in funding for the 2019-20 Fiscal Year budget, Republican legislative leaders have now cited Governor Gretchen Whitmer’s choice to use the Administrative Board to move funds as the reason for not moving a supplemental thus far.

Noting it was the first time in almost 30 years that a Governor used the Board to move funds, leaders did not appreciate changes in funding being made without their input. Considering neither party was willing to concede on their proposals, forcing an almost shutdown of the state government, governmental insiders feel that argument is moot at this point.

As the year draws to a close, those affected by the vetoes and transfers are faced with the possibility of not knowing what monies they will or won’t have to start the new year. However, Republican leaders are telling residents to go to the Governor with their funding issues as the budget in their eyes is “done”, and Governor Whitmer is telling them to go to the Legislature with their concerns to urge supplemental consideration.

As of Thursday, speculation was rampant that Republicans could agree to move a supplemental if the Governor would agree to essentially neuter the transfer authority of the State Administrative Board. Republican leaders have been candid, expressing concerns about the potential repeat of an inter-department transfer bonanza when or if they send the Governor a supplemental. The Executive Office was quick to pan the idea of removing the Board’s ability to transfer, with Governor Whitmer stating, “I'm not going to change the scope and powers of the Executive Office…They've been there for 98 years. They should not change under my administration or for the next governor for that matter."

MHSA will continue to work with both the Executive Office and legislative leaders to ensure our clients are kept apprised of any changes.

JUDGE BLOCKS GOVERNOR’S VAPING BAN – In a major blow to Governor Gretchen Whitmer and those in opposition to “vaping”, a Court of Claims Judge ruled the state “failed to demonstrate grounds to use the emergency rules process” and halted Governor Whitmer’s ban on the sale and use of all flavored vaping products in the state.

In her decision, Judge Cynthia Stephens stated the injunction of the ban will “preserve the status quo so that a final hearing can be held without either party having been injured”. The ban, put into place in September via emergency rules by the Michigan Department of Health and Human Services (DHHS), required a misdemeanor charge punishable by up to six months in jail and a $200 fine if convicted of selling, giving, transporting, or otherwise distributing with the intent to sell flavored vapor or nicotine products.

The reasoning behind the ban, according to Governor Whitmer, health officials, and DHHS officials, is the flavors of certain “vaping” products are targeted to minors. Other states and President Donald Trump have followed suit on the ban, addressing the ongoing crisis of deaths related to vaping throughout the country.

Those in opposition to the ban, however, claim the products themselves are safe and not targeted toward any age specifically, noting purchasers must be 18 years or older. Current legislation being drafted in Michigan would increase the purchasing age to 21, to match that required to purchase alcohol.

Governor Whitmer responded to Judge Stephens’ decision, noting her plans to appeal the ruling to the Michigan Supreme Court.

PFAS & LEAD REQUIREMENTS DISCUSSED – Multiple alterations to the state’s current requirements for the testing and prevention of lead and poly and perfluoroalkyl substances (PFAS) in drinking water were discussed in both chambers on Tuesday.

Members of the House Natural Resources and Outdoor Recreation Committee discussed House Bills 4742-4750 and 4064, which call for, among other things: the codification of the Michigan PFAS Action Response Team (MPART); the creation of a testing and removal program for drinking water used by vulnerable populations (childcare centers, schools, etc.); the implementation of an annual $3 million appropriation to be used for geological surveys to test for the presence of PFAS in ground water or soil; and the creation of a nine-member commission to specifically address the prevention and control of childhood lead poisoning.

Despite a mostly supportive response, concerns were raised about the bills and their usage of current PFAS and lead level rules, as new ones are in the process of being determined. Officials urged sponsors of the bills to use “current” instead of a specific number when referring to levels, to allow for more flexibility as time goes on and more is learned about PFAS and lead. The bills remain in the Committee for further discussion.

In the Senate, members discussed and heard testimony on a plethora of bills dealing with mostly PFAS, though no action was taken as more details are to be ironed out. Members of the Senate Environmental Quality Committee brought House Bills 4389-4391 and Senate Bills 402 and 403 to the agenda, addressing: the issue of firefighting foam training (as it contains PFAS); reporting requirements for fire chiefs regarding the use of foam containing PFAS; promulgation of rules for the use of PFAS foams; the establishment of MPART within the Michigan Department of Environment, Great Lakes and Energy (EGLE) (counterpart to the aforementioned House Bill), and annual funding for the previously noted geological surveys (again, counterpart to the House Bill).

As legislative members continue to sift through existing legislation, rules and regulations, and discuss proposals updating those things, they also introduced another set of bills seeking to install water filtration systems in school buildings and day care centers by August 2021.

The package of bills, House Bills 5104-5105 and Senate Bills 589-590, calls for one station to be installed for every 100 occupants, and to be used for drinking and cooking water sources. EGLE would be tasked with oversight of the filter systems, and each facility would be required to test their systems annually as well as communicate with parents the strategy for the filters.

These bills were referred to their respective committees: House Natural Resources and Outdoor Recreation and Senate Environmental Quality.

RAISE THE AGE HEADS TO WHITMER – Both House and Senate members concurred in their own and each other’s changes to packages of legislation removing 17-year-old offenders in Michigan from being automatically charged as adults on Wednesday, sending the partner packages to Governor Gretchen Whitmer for consideration and signature.

The House package includes House Bills 4133-4136, 4142, 4143, 4145, 4443, and 4452, while the Senate package includes Senate Bills 84, 90, 97, and 99-102.

Under the 16-bill proposal, 100 percent reimbursement would be made to counties for 17-year-olds until October 1, 2025, at which point the Legislature will reevaluate the funding formula using data provided by said counties. Beginning October 1, 2021, 17-year-olds would no longer be treated as adults when being accused of the commission of a crime, allowing 4 years’ worth of data to be compiled for the funding formula.

The “Raise the Age” issue has been a bipartisan, bicameral one for many years. Commenting on the efforts by all involved, champion of the issue Senator Pete Lucido (R-Shelby Twp) said the changes are “overdue and needed.”

ELECTIONS

• Term-limited Representative ’s (D-Allen Park) younger brother announced his campaign to take his brother’s seat in the 13th House District next year and to keep it blue • Three Democratic Kalamazoo County Commissioners announced their campaigns for the 60th House District, currently held by term-limited Representative (D-Kalamazoo): Julie Rogers, Stephanie Moore, and Tracy Hall • , former gubernatorial candidate, announced his Democratic campaign for the 3rd House District, which is currently held by term-limited Representative (D-) • Christine Barnes, former Republican candidate who lost to Representative (D- Delta Twp) in last year’s election, announced she is running for the 71st House District again in 2020 • Representative Robert Wittenberg (D-Huntington Woods) announced his campaign for Oakland County Treasurer recently. Mr. Wittenberg cannot seek re-election to the House due to term-limits

ODDS & ENDS

• The Michigan Department of Attorney General announced it has teamed up with Western Michigan University to receive two federal grants equaling more than $1 million to assist in reviewing 600 post-conviction claims of innocence. Attorney General Dana Nessel announced one of the country’s first statewide conviction integrity units earlier this year • Michigan Department of Health and Human Services (DHHS) officials announced the launch of regional forums regarding upcoming Medicaid work requirements set to begin January 2020. View the full list of forums here • According to rating agency Moody’s Investors Services, the 0.5 percent increase in funding for Michigan’s universities in Fiscal Year 2019-20 is a “credit negative” as it will “limit their ability to raise tuition” • Senate Bills 570-573 were introduced recently, with the bills outlining a bipartisan effort to implement stronger controls on “surprise billings” for patients. The Senate Bills have counterparts in the House, House Bills 4459 and 4460, which were discussed in the House Health Policy Committee on Thursday, but no movement was made • Representative (D-Brownstown Twp) introduced House Bill 5107 recently, with the bill calling for the allowance of the Michigan Department of Health and Human Services (DHHS) to import Canadian prescription medications via a wholesale program at participating pharmacies. PhRMA officials expressed concern over the legislation • The Michigan Automobile Insurance Placement Facility (which administers the Michigan Assigned Claims Plan) filed a lawsuit against the Michigan Department of Insurance and Financial Services (DIFS) on Monday, claiming orders DIFS issued in September “improperly attempt” to impose a new $250,000 cap on coverage before July 2, 2020. The Plan handles health insurance coverage for persons injured in traffic crashes with no coverage • The state’s contract with Fisher Investments to oversee the management of $600 million in pension assets has been terminated, after it was revealed the company’s CEO made offensive comments at an investment session recently. Mr. Fisher has been banned from any further gatherings hosted by the company as well • House Bill 4325, which calls for updates to the scope of practice for counselors, was reported out of the Senate Health Policy and Human Services Committee on Wednesday. The bill was then passed by the full Senate on Thursday via a 38-0 vote, moving it to Governor Gretchen Whitmer for signature • Secretary of State Jocelyn Benson announced the 16 advisory members of the Task Force on Women in Sports on Monday • The Michigan Department of Corrections (MDOC) announced Monday a new grant-supported program to train state inmates for skills applicable to life after prison. MDOC is partnering with Google for the program known as the Last Mile. The program will be implemented at the Vocational Village in Parnall Correctional Facility • Representative Larry Inman (R-Williamsburg) will stand trial on charges of solicitation of a bribe and attempted extortion, according to a ruling by U.S. District Court Judge Robert Jonker • Under House Bill 5097, as discussed by members of the House Regulatory Reform Committee on Tuesday, payday lenders (currently limited to loans of $600 or less) would be allowed to provide loans of $2,500 for a period of more than 90 days and with an allowable 11 percent service fee • House Bills 4516 and 4517 passed the House unanimously on Tuesday, with the bills calling for a requirement of new signs for designated parking spots to include a variation of the International Symbol of Access • According to the Michigan Economic Development Corporation (MEDC), the state has enough funds to run Pure Michigan advertisements through the end of this calendar year, though anything past that would be “suspended over the next few months” as funding for the campaign was eliminated in Governor Gretchen Whitmer’s line item veto action • The Michigan Department of Health and Human Services (DHHS) announced Public Policy Associates has been selected to collaborate with the Department in a four-year research project studying the effects of policy changes in the Child Care Block Grant Act of 2014 • House members unanimously passed House Bills 4540-4543 on Wednesday, with the bills calling for the codification of the allowance of the Michigan Department of Treasury to collect online sales tax and use tax from remote sellers • According to the Michigan Department of Technology, Management and Budget (DTMB), Michigan’s seasonally adjusted employment rate for September of this year was 4.2 percent, remaining the same as the previous month (the numbers remain the same, according to DTMB officials, as they were adjusted two days before the UAW/General Motors negotiations began) • Senate Bills 466-469 and Senate Bill 539 passed the Senate on Wednesday, with the bills calling for Michigan foster care services to be brought in line with the federal Family First Prevention Services Act • Governor Gretchen Whitmer is set to join former Michigan First Lady Sue Snyder for Michigan’s 5th Annual Let’s End Campus Sexual Assault Summit, where Governor Whitmer will serve as the keynote speaker • The Michigan Department of Environment, Great Lakes, and Energy (EGLE) announced on Friday of last week it is moving forward with formal rule making on previously announced limits for certain poly and perfluoroalkyl substances (PFAS) compounds in the state’s drinking water, following a review of the draft regulations by Governor Gretchen Whitmer