QUOTE OF THE DAY:

“ We can’t lose a golf course to Mexico.”

— Rep. Mike PUMFORD (R-Newaygo) on why he believes expanding the Sales Tax base to include some services would create a more stable revenue base for Michigan Information & Research Service, Inc. the state.

Tuesday, January 20, 2004 Web Site: http://www.mirsnews.com Volume XXII, Issue 011

Capitol Capsule regulatory climate under which businesses and communities can thrive.” Granholm Sends Special Message To The proposed Water Legacy Act would be Lawmakers Over Water Protection “prospective” according to Granholm, and would Gov. today announced cover the Mecosta County Nestle water plant only that she sent a “special message” to the Michigan if the plant were to expand. The measure would Legislature asking them to take action to better cover any future “Nestle-type operations” accord- protect the state’s natural waters. ing to Granholm. The “special message,” a technique used often While a draft isn’t available of the new Michigan by former GOP Gov. William MILLIKEN to call Water Legacy Act, Granholm did say it would allow for action from the Legislature, requests lawmak- the Department of Environmental Quality to regulate ers adopt a six-point plan, the corner of which any water withdrawals that surpassed 2 million would be a Michigan Water Legacy Act to regulate gallons per day, or 100 million gallons per year. the withdrawal of water. Other components of the governor’s six-point The Water Legacy Act would be patterned water protection special message included: after the 1985 Charter. An agreement that the state signed onto, but never took the act of - Asking Attorney General Mike COX to join in a adopting a water withdrawal statute as called for lawsuit filed by the Northwest Environmental in the Charter. Advocates, or file a separate lawsuit, to force the federal Environmental Protection Agency (EPA) “The Great Lakes fuel our economy, color our to regulate ballast water discharge from ships character, and literally define the shape of our state,” and thereby better protect the Great Lakes from Granholm said. “They are our most vital resources new invasive species. which makes their preservation and protection all too important to approach haphazardly.” - Granholm signed an executive directive today prohibiting state agencies from authorizing the Currently, Michigan is the only state in the open water dumping of contaminated dredge Great Lakes basin without a comprehensive water materials into the Great Lakes. DEQ Director withdrawal statute. In her message, Granholm Steven CHESTER said he is aware that such vowed to deliver to the Legislature such a pro- posed statute by the end of February. MIRS Inside “Because we are the only state in the Great 2 Gov. To Appoint Superintendents Lakes basin without a statutory framework, our 3 Wenke: ‘We Should Look At That’ inability to effectively manage this resource leaves 4 Health Savings Accounts On Deck 5 Buzz Is Beaming, Dean Backer Questioning us vulnerable and without legal or moral authority 6 Senate Passes Theology Bills to meet future threats and protect our economy 7 Giving Sexully Active Kids A Break and our environment,” Granholm wrote in her HOUSE REPORT message. “A fair and balanced approach to water SENATE REPORT withdrawal will allow us to protect our water CAPITOL CALENDAR resources while also providing a predictable 910 Ottawa St • PO Box 19303 • Lansing, MI 48901-9303 • Phone (517) 482-2125 • FAX (517) 374-0949 • E-Mail [email protected] If You Don’t Read Us - You Just Don’t Get It! Page 2 MIRS Capitol Capsule Tuesday, January 20, 2004

dumping currently takes place in Lake Erie. That task force looked at the issue of water Granholm also called on the Legislature to withdrawal and exotic species control as well as enact a statute to permanently ban such open a number of other issues. (See Jan. 16, 2002 water dumping. edition of MIRS). - The governor also called on the Legislature to take Bill NOWLING, spokesman for Senate up and pass into law new permit fees to support Majority Leader Ken SIKKEMA (R-Wyoming), the National Pollution Discharge Elimination reiterated the importance of the Great Lakes System (NPDES) in Michigan. In last year’s Conservation Task Force report the senator put budget Granholm proposed fees to replace together in 2001-02. He said Sikkema is pleased general fund support for the NPDES program. the governor is using this roadmap to guide her Those fees remain in conference committee. water policies. “Each day they languish, our water and our “Everything the governor laid out today, she economy are in danger,” Granholm wrote to laid out from the Task Force report,” Nowling lawmakers. “It is essential that we enact this said. “You take out what Ken Sikkema has done legislation and make whole the budget to protect and what do you have? The governor’s announce- Michigan’s waters.” ment doesn’t happen today.” - The special message also called on the Legislature to enact a statewide sanitary code for septic systems. Presently, Michigan is the only Gubernatorial Appointment state in the country without such a code. of the Superintendent “Lack of an updated code costs our state Twenty-two Senate Republicans have signed precious federal dollars,” Granholm wrote. “With- off on a constitutional amendment giving the out an updated sanitary code, full federal funding governor authority to appoint the state’s school of the Coastal Zone Management Program is superintendent and the governor has blessed the seriously threatened. Michigan has more coastline concept, too.” than any other state, save Alaska, and yet we are our own impediment to greater federal assistance Because education is my top priority, I certainly for managing and protecting that coastline.” would be eager to support any enhancement to the governor’s ability to control education policies,” - Granholm also signed an Executive Directive Gov. Jennifer GRANHOLM told reporters. asking the DEQ to develop a rule to protect from Sen. Wayne KUIPERS (R-Holland), who has harm critical, isolated wetlands on state land. been waiting for weeks to learn where the gover- - The governor called for greater federal funding nor would land on this, was notified by MIRS of from the administration of President George W. her statements and he reacted positively. BUSH for Great Lakes coastal restoration projects. ”I’m pleased. We sort of threw out an olive “The past few Congresses and Presidential branch to the governor. I’m glad she’s come on administrations have focused billions of dollars on board,” he added. the restoration of the Everglades, the Chesapeake Bay and most recently there has been renewed Kuipers drafted the amendment aimed at centraliz- Congressional focus on Gulf of Mexico coastal ing accountability on the education issue. Under the erosion,” wrote Granholm. “The Great Lakes have current system, the State Board of Education picks the not received the same bold level of attention.” school superintendent. The West Michigan Republican said “it is important to have a point person to go to Granholm said she believes her plan should be when things are good. And when they are bad you very doable, since many of the six-points encom- need to know how it is going to be fixed.” pass recommendations that were included in the bipartisan Senate Great Lakes Task Force. The governor, disclosing her stance for the first time on a plan that she did not suggest, said, Tuesday, January 20, 2004 MIRS Capitol Capsule Page 3

“I would look favorably upon anything that gives election year, but he feels there could be a basic the executive greater control over an area that is issue of fairness that broadening the Sales Tax her greatest priority.” base might address. However Granholm repeated twice that her “I do believe it’s unfair that when I sell a flat support of this GOP plan should in no way be seen of flowers in my greenhouse, I have to add the tax, as a repudiation of the current school superinten- while services don’t,” Wenke said. “I think there is dent and/or the state board. something to the idea that we need to consider spreading the burden.” “I support Tom WATKINS and the board 100 percent,” she stressed. The idea, which has been bandied about for nearly a year, would be to broaden the Sales Tax If she has fears that the GOP has a hidden base by including certain services (some believe agenda aimed of removing Watkins, Kuipers entertainment services, such as sports and theater dispels that. would be among the easiest to justify) and then He said if there were such an agenda, “We reducing the overall tax rate. The change would would have made it (the language) a little more initially be revenue neutral, but supposedly provide structured to do that.” In fact, Kuipers said, under a more stable and “possibly growing” revenue base. this plan, if the governor wanted to appoint Although he said he believes the concept Watkins, she could. deserves consideration, Wenke said he’s not “This is simply an issue of good governance,” planning on bringing the issue up in his committee he concluded. unless there are some actual bills introduced to look at and some direction provided from legisla- The proposed amendment would require a tive leadership. super majority of both houses to place it on the ballot for the electorate to decide. The governor “I’d certainly like to see some bills first,” has no veto power over it, but with her endorse- Wenke said. “I’d also want to get some guidance ment, it is expected to move soon. from the Leadership of both the House and Senate.” (Contributed by Senior Capitol Correspon- Last week when MIRS asked around about the dent, Tim SKUBICK). idea of taxing entertainment, the word from the office of Senate Majority Leader Ken SIKKEMA (R-Wyoming) was “no.” The response from the Wenke: ‘We Should Look At That office of House Speaker Rick JOHNSON (R- LeRoy) and Gov. Jennifer GRANHOLM was that ’Today, in response to a question posed by the question was too speculative to merit a re- MIRS, House Tax Policy Committee Chair sponse. (See MIRS Jan. 13). Lorence WENKE (R-Richland) said he believes the idea of broadening the state’s Sales Tax base Wenke was asked if politically the “tax shift” to include entertainment and other services concept would run into difficulty, not just with the deserves consideration. various business groups who have already come out against it, but with potentially powerful public Wenke stressed that he isn’t taking a position opinion shapers in the news media that could fear in favor of such a measure, just that it shouldn’t be the move to tax services would start a slippery dismissed out-of-hand. slope toward taxing advertising. “I think we should look at the idea and see if it “I wouldn’t even want to go there,” Wenke has merit,” Wenke said. “We are seeing Michigan’s said in response to the idea of taxing advertising. economy switch over from reliance on manufactur- “That would be so complex.” ing to a more service oriented businesses.” Wenke said, regardless of whether the Legisla- Wenke said he doubted that such a change ture visits the idea of extending the Sales Tax to would likely be adopted by the Legislature in an Page 4 MIRS Capitol Capsule Tuesday, January 20, 2004 services, the key element the state must consider were to broaden the base then it would still be that as it looks at its tax policy is competitiveness.“ way. If I chose to play on a golf course that costs me $11, than I’d pay a few cents more. If I chose to We have to make sure we’re not putting play on a course that costs $330, then that’s my Michigan businesses at any more of a disadvan- decision. I really doubt that someone will decide tage than they already have,” Wenke said. “We not to vacation in Michigan based on the difference have to make sure Michigan has a friendly busi- between paying $330 and paying $335.” ness advantage.” “It’s also more stable,” Pumford said. “We Mark FISK, press secretary to House Demo- can’t lose a golf course to Mexico.” cratic Leader Dianne BYRUM (D-Onondaga), told MIRS today that the issue of taxing entertainment hasn’t been formally discussed in the caucus.” Health Savings Accounts On Deck We really haven’t ever talked about it as a Today, House Health Policy Committee Chair caucus,” Fisk said. “But, I’d have to say, particu- Stephen EHARDT (R-Lexington) told MIRS that larly in light of the $1 billion deficit, that we’d discussion and work in regard to health savings consider this to be something that’s on the table. If accounts (HSA) are among his top ten agenda the Republicans introduce a bill on it, we’ll defi- items for the upcoming year. nitely bring it up.” Health savings accounts (HSAs) were part of Rep. Mike PUMFORD (R-Newaygo) said he the new Medicare Reform package that was passed favors the idea of broadening the Sales Tax base, by Congress in the fall. HSAs are tax-free accounts but doesn’t believe it should be considered in that must be paired with high-deductible health connection with the current budget deficit. insurance. The tradeoff would be higher deductibles (which could be paid for by employers) for lower “I think what’s happening is that we’re becom- premiums, more discretion and the ability to com- ing less consumers of commodities and more pile savings for future medical expenses. consumers of services,” Pumford said. “I think it’s a question of fairness. But I don’t want this to be “We want to do everything to encourage something connected with the current budget. If people to look at this option,” Ehardt said. “We that happens it could just turn people against it. It want do do what we can to take down what ever should be something we look at for the future.” barriers there may be in the system and provide incentives for people to consider [HSAs].” The Newaygo Republican said that many who are opposed to idea now, may warm up to it with time. Republicans inserted the HSA language into the Medicare reform bill in the hopes that the “The Single Business Tax (SBT) is a terrible accounts will help drastically reduce the future tax, and it’s supposed to be phased out by 2009,” costs of the Medicare program, which is expected Pumford said. “I really think we should consider to see an extra $400 billion in spending over the having this (a broader Sales Tax base) as part of next 10 years because of the prescription drug what we replace that with. A lot of businesses and benefit and other elements in the package. retailers in this state should like it. I also believe some of the people who were so adamant against Insurers see HSAs as a significant new option pausing the Income Tax rollback and other revenue that would give consumers the opportunity to enhancements will ultimately be open to this idea.” better plan for and fund their current and retiree health care expenses. The concept is that by Pumford added that expanding the Sales allowing people to build savings toward their Tax to certain services would be a move to- future medical expenses, some of the burden may ward a more discretionary tax base and a more be taken off Medicare to cover high-cost items, reliable revenue source. such as prescription drugs and long-term care. “To me the Sales Tax is the fairest tax we have, “This embodies the idea that patients should because it’s discretionary,” Pumford added. “If we take personal responsibility for their health care,” Tuesday, January 20, 2004 MIRS Capitol Capsule Page 5

Ehardt said. “It involves a paradigm shift. Right “I’m talking about replacing the references to now, under the current system, many young, MSAs with HSAs, things like that,” Sheen said. healthy people go without insurance. Meanwhile, less healthy people end up on state assistance. Both Sheen and Ehardt said they’re not pro- HSAs will encourage younger, healthier people to posing making it mandatory for HSAs to be take responsibility for their health earlier on.” offered to employees. However, Congressional Democrats opposed HSA funds could be spent on such expenses as the HSAs, arguing that the accounts are just doctors’ appointments, prescription drugs, long- another attempt to transfer Medicare responsibili- term care insurance premiums, COBRA premiums ties to the private marketplace and that they would and health insurance premiums for those receiving be of little use to low-income families. unemployment benefits. Medicare beneficiaries can use HSA money to pay managed care and They claimed the accounts could become little standard Medicare premiums. more than a tax shelter for wealthy people. Oppo- nents of the idea maintain the accounts potentially “These offer tremendous flexibility,” Ehardt could undermine the health insurance risk pool by said. “For one thing, they’re portable. A 55 year pulling young, healthy patients out of the compre- old who is laid off can still use them while he’s hensive coverage market. looking for new employment.” In addition, they’ve questioned how popular Unused HSA funds can be carried over from year this approach would be with large employers that to year and transferred from job to job. In addition, currently make use of economies of scale to offer patients could use HSAs to pay for medical needs comprehensive benefits. without being taxed, even after retirement. “We do not have universal health coverage, According to industry analysts, for the HSAs and I don’t see us having it in the foreseeable to be useful, the insurance industry would have to future,” Ehardt said. “Therefore, people should develop more high-deductible products that would have more choices. Heaven forbid that we actually be used in combination with the accounts. In give more incentives for people to make healthy addition, more employers and individuals would life choices, such as not smoking, eating better and have to take up the accounts than was the case making sure they exercise.” with the MSAs. The HSAs are an expansion of the medical Proponents of the HSAs point out that, unlike savings accounts (MSAs) project approved by Con- MSAs, which were done in pilot projects, health gress in the 1990s. But unlike the MSAs, both workers insurance companies won’t have to fear that law- and their employers can contribute to the accounts. makers will pull the rug out from under the idea. Rep. Fulton SHEEN (R-Plainwell), who will be introducing legislation on HSAs soon, told Buzz Is Beaming, Dean Backer Questioning MIRS last week that the federal law change has Nobody wore a bigger smile on the Senate opened the door for HSAs, and he wants to bring floor today than Sen. Buzz THOMAS (D-De- Michigan up to speed on the concept. troit), the chamber’s point-person for U.S. Sen. “These offer fantastic flexibility,” Sheen said. ’s presidential campaign. The “It’s a major change to the health insurance sys- morning after Kerry pulled out a first-place finish tem. We’re not talking about approving them for in the Iowa caucus (capturing 38 percent of the Michigan, the federal law already does that.” vote), Thomas seemed rejuvenated about being part of an effort that three weeks ago looked dead Sheen said he’s interested in changing Michi- in the water. gan statutes so they’ll be consistent with the new federal law. He also said he’s not sure whether Kerry has rode the rollercoaster of being the there will be opposition to such changes or not. favorite to win the Democratic presidential nomi- Page 6 MIRS Capitol Capsule Tuesday, January 20, 2004 nation to being the race’s biggest disappointment said he expects to be talking to more elected to once again being the leading candidate — officials as the days go on. although Thomas is declining to embrace the “front runner” label. Murphy pledged his support to Edwards in the summer of 2002 after a 30-minute conversation in “We want this to be the campaign of the which Murphy felt confident that the articulate, bright comeback Kerry,” Thomas said. “Yesterday Southerner could be the type of Democrat to beat shows that the voters in Iowa made a decision to another Southerner — President George W. BUSH. back a candidate that is best prepared to win.” Murphy said he would be working to get Edwards Even Thomas was surprised how decisively more face time in Michigan, the next election stop Kerry and U.S. Sen. John EDWARDS (D-N.C,) after New Hampshire and South Carolina. beat former front-runner Vermont Gov. , whose 18 percent was only 6 percentage “He connected with the people in Iowa and I points better than U.S. Rep. Dick GEPHARDT know he’ll connect with the people in Michigan (D-Mo.), who is dropping out of the race. once they get to know him,” Murphy said. The chamber’s lone Dean supporter, Sen. Five of the chamber’s 16 Democrats had Mickey SWITALSKI (D-Roseville), said Dean previously come out in support of Gephardt, and Gephardt were too busy beating each other up meaning they’ll be reassessing where they’ll be in the week or two before Monday’s caucus to give throwing their support (if they do at all) in the next Iowa voters a reason to support either of them. couple of weeks. Thomas said he started talking to members today. After the heated Dean- Switalski said he felt encouraged by Dean’s Gephardt battles in Iowa, Switalski said he doubts speech Monday night. How the former governor he’ll be picking up any converts. handles this disappointment will show America what Howard Dean is made of. Dean has been Don’t be so sure, said Gephardt backer Sen. leading in New Hampshire, but Monday’s results Ray BASHAM (D-Taylor). Everybody was may change that. gunning for Dean in Iowa and being a Gephardt supporter last week doesn’t automatically mean he “Everybody gets beat,” Switalski said. “The won’t be a Dean supporter next week. Even question is whether you can adjust, whether you though his candidate is no longer in the race, he can do something different, whether you can come said he would take a closer look at those remain- back. This will be a test to see what Howard Dean ing and go from there. is made of.” “Dick Gephardt has always been there for The Michigan Democratic presidential caucus labor. He’s been there for us,” Basham said. is less than three weeks away but party leaders like “We’ve got other candidates, so we’ll roll on. I Senate Minority Leader Bob EMERSON (D-Flint) respect the democratic process.” are choosing to keep their powder dry until the race takes shape a little more. Emerson had been lean- ing toward Gephardt, but yesterday’s results are Senate Passes Theology Bills causing him to take a closer look at Kerry and Michigan college theology and religion stu- Edwards, whose only known Michigan support is dents would be allowed to receive certain state from Rep. Michael MURPHY (D-Lansing). scholarships and grants under a package of bills “We’ll see what happens next week in New that overwhelmingly passed the Senate today. Hampshire when we have a broader-based con- SBs 625-629, 661 and 662 erase a passage in state stituency participating,” Emerson said. “Dean law that bars students majoring in “theology, divinity has a certain appeal, but for most people, it’s or religious education” from collecting a state-backed coming down to a question of electibility.” check for their schooling, over concerns that the More than one House colleague asked Murphy legislation runs afoul of the state Constitution. about Edwards today and the Lansing Democrat Tuesday, January 20, 2004 MIRS Capitol Capsule Page 7

Article 1 of the Constitution states that no Giving Sexually Active Kids A Break public money can be appropriated toward the Teenagers and pre-teens who engage in certain benefit of any seminary. sexual acts wouldn’t have to register on the sexual Senate Republicans felt comfortable with the registry under a pair of bills brought before a legislation because the state constitution’s prede- Senate committee today. cessor, the Northwest Ordinance, spoke specifi- The Senate Families and Human Service cally about the importance of religion in the state Committee also took up a bill this afternoon that of Michigan. orders the State Police to post pictures of all More to the subject, they were satisfied that sexual deviants on the Internet-published sexual the intent of the legislation was clear — any registry, following the lead of 30 other states. college student who is majoring in religion or According to parents of boys convicted of some taking some courses shouldn’t be denied state aid. type of sexual crime, these bills are very much Obviously, someone who is studying to become a linked and that’s not necessarily a good thing. minister, priest or member of the clergy shouldn’t be receiving taxpayer money. The committee heard from many members of “Citizens for a Second Chance,” a group of par- Sen. Liz BRATER (D-Ann Arbor) and Sen. ents who have gone down the legal system with Gilda JACOBS (D-Huntington Woods) weren’t their sons who either had incidental sexual contact sold that a clear distinction was being made and while playing “doctor” with another young child pushed for an amendment that specifically said, or had consensual sex with a 15-year-old girl. “funds awarded under this section shall not be used for sectarian religious training.” In all of the stories told to the committee today, having to register as a sexual predator is Brater’s amendment rattled Senate Majority ruining these boys’ lives. They can’t join the Leader Ken SIKKEMA (R-Wyoming), who felt the military, attend certain colleges, are stigmatized amendment could be used to later exempt students and suffer from depression. Posting their picture attending a secular college or taking a religious class on the Internet, as proposed in HB 5195, would taught from a particular advocacy angle. add salt to the wound, they said. “This could destroy the entire purpose of this “I can look at you straight in the eye and tell package,” Sikkema said. you my son is not a violent sex offender,” said On a role call vote, the Brater amendment parent Lana AHUMADA. “I ask to put your son, failed, 12-24, with Sen. Jim BARCIA (D-Bay City) your grandson or your nephew in his position. and Sen. Ray BASHAM (D-Trenton) joining all of What are we warning them about my son? That he the chamber’s Republicans in opposition to the bill. engaged in consensual sex with someone three Six of the package’s seven bills passed, 34-2, with months shy of 16?” Brater and Jacobs casting the two “no” votes. The Senate committee only took testimony on “I understand the desire of those who would HB 4920 and 5240, sponsored by Rep. Larry like those studying theology or comparative JULIAN (R-Lennon), which passed the House religion within a secular context to be eligible for unanimously and received strong support from the state grants,” Brater said. “But I’d hate to see us parents who testified today. do something today that would run afoul of the Under current law, youths convicted of state or federal constitution.” having consensual sex with girls under 16 are put Sen. Jason ALLEN (R-Traverse City) had on the sexual registry for the next 25 years, an been shepherding the bills through the Legislature overly zealous punishment for young boys in after one of his constituents complained that she many cases according to proponents of the bills. had been denied college funding because she The bills exempt boys from registering as sex majored in theology. The bills now head to the offenders in the future and trim the number of House for consideration. Page 8 MIRS Capitol Capsule Tuesday, January 20, 2004 years boys currently have to remain on the could carry a lot of weight depending on the registry from 25 to 10 years. results of the upcoming New Hampshire primary. While Barbara LANBORN of Citizens for a Granholm did say she wouldn’t be making an Second Chance and others testified that Julian’s endorsement prior to the New Hampshire vote, bills were necessary pieces of legislation, many which will take place next week Tuesday. were concerned that HB 5195, sponsored by Rep. Matt MILOSCH (R-Lambertville), would add to Granholm’s husband, Dan MULHERN, has their misery. endorsed Kerry’s bid for the nomination. “I don’t think these boys should pay for 25 years for something they did when they were 10,” State Diaper Contract Under Review Lanborn said. A $21.9 million diaper contract was pulled They requested that photos only be added to from the State Administrative Board agenda the real sexual predators, those who are a genuine today after the losing bidder filed a protest threat to the community. How that distinction can earlier in the day. be made into the legislation was an obvious Sean CARLSON, acquisition director for the question posed by the committee. Department of Management and Budget (DMB), Milosch made his case in favor of the bill early will now review the 3-year recommended Depart- in the hearing, saying the bill can be seen as a ment of Community Health (DCH) contract for preventive measure to protect young children from diaper and incontinence supplies for Medicaid and falling in the hands of sexual deviants. The Children’s Special Health Care services. technology is there, he said, and using it could Carlson told MIRS he has no specific timetable serve as a deterrent to crime. for rendering a decision. “I will move as swiftly But what about the child who finds out that his as possible,” Carlson said, adding he will confer father’s picture is now on the sexual registry for with the Attorney General’s office to assure that getting Mom pregnant when she was 15, one all aspects of the protest are properly reviewed. mother asked. Dad and Mom may be good, solid, Binson’s Hospital Supply of Centerline, who tax-paying citizens, but now everybody in the has held the contract for the past six years, filed community knows that Dad can’t volunteer at the the challenge. Leonard WOLFE, an attorney for school because he’s a “sexual deviant.” Dykema Gossett who is representing Binson’s, Committee chairman Sen. Bill HARDIMAN said the state isn’t getting the best value because (R-Kentwood) didn’t specify if and when the bills transition costs and the quality of products and would come up for a vote. services will more than offset the difference between his client’s bid, which was $2.8 million higher than that submitted by the winning vendor, Granholm Cracks Door To Democratic J & B Medical Corporation of Commerce, Michi- gan. Wolfe also raised questions over how the bid Presidential Endorsement process was handled. While not giving a firm yes, Gov. Jennifer GRANHOLM today left the door ajar to the Carlson, who twice rejected the recommenda- possibility that she might make an endorsement tions of the Joint Evaluating Committee, said the before the Michigan Feb. 7 Democratic caucus. decision to award the contract to J & B Medical was made primarily on the basis of price. Coming on the heels of last night’s surprise victory in the Iowa Caucus by U.S. Sen. John J & B Medical Corporation has retained KERRY (D-Mass.), Granholm’s endorsement Lucille TAYLOR, legal counsel to former Gov. , to represent them in the dispute. Tuesday, January 20, 2004 MIRS Capitol Capsule Page 9

U.S. Supreme Court To Hear MI Indigent Taylor Democrat, whose been working for the last Appeals Case five years to get cigarettes out of eateries. The U.S. Supreme Court announced today that Basham said he hopes the petition, combined it will hear arguments in a case brought by the with the 250 e-mails (3-to-1 in support) he’s receiv- American Civil Liberties Union (ACLU) of Michi- ing on the subject will push Sen. Jason ALLEN (R- gan in a constitutional challenge to a Michigan law Traverse City), the chair of the Senate Commerce that limits court-appointed lawyers for the indigent. and Labor Committee, to hold a hearing on his bill. “At stake here is whether Michigan will be Allen was quoted in the Traverse City Record- required to give a fair shot to those who cannot Eagle last week as saying he would allow for a afford their own attorney on their appeals,” said hearing later this spring, although he didn’t prom- David MORAN, the ACLU cooperating attorney ise a vote. Basham said today he’s a little skepti- who will argue the case before the Supreme Court. cal about the claim, seeing Allen promised Basham over the summer that he’d hold a hearing The case, Tesmer v. Granholm, will decide on the bill last fall, which didn’t happen. whether Michigan can deny an indigent person who has pled guilty to a crime the right to have an Allen’s committee is charged with many attorney assist with his or her appeal from the pieces of the Legislature’s JOBS action plan and sentence that the judge imposes after the plea. Allen’s second committee is handling the contro- Since 1963, the U.S. Supreme Court has repeat- versial “racino” package. These issues are among edly held that the poor have the same right as the those taking Allen’s time at the present. wealthy to the assistance of an attorney for a first As a side note, the number of signatures appeal from any criminal conviction, and no state Basham has collected in seven days is roughly five had attempted to take away that right. percent of the names needed to pass a voter- “Our courts have long held that the poor and initiated referendum, as Right To Life is doing the rich are entitled to the same rights. This with the partial-birth abortion ban. Right to Life Michigan law would have meant that many with- needs to come up with roughly 255,000 signatures out money would have been unable to appeal an in a 180-day window. unfair sentence,” said Kary MOSS, ACLU of Michigan executive director. In 1999 the Michigan Legislature passed a law Cherry Goes To Benton Harbor prohibiting the appointment of counsel in guilty plea Lt. Gov. John CHERRY will visit the Benton cases except in limited circumstances. The statute Harbor and St. Joseph area on Wednesday to has never taken effect because the federal district kick-off the state’s outreach program to encour- court in Bay City struck it down, a decision that was age more citizens to file for the federal Earned upheld in June 2003, by the entire Sixth Circuit. Income Tax Credit. The kick-off event will be held at 10 a.m. at the Berrien County Family Independence Agency 12,500 Sign Anti-Smoking Petition Office with recently appointed FIA Director Sen. Ray BASHAM (D-Taylor) reported today Marianne UDOW in attendance. that 12,500 Michigan citizens have signed an Cherry will spend the day in the Benton Internet petition calling on the state of Michigan to Harbor-St. Joseph area meeting with locally ban smoking from public restaurants in the first elected officials and community leaders to get an week it’s been up and running. update on progress that the area has made since The flood of support for Basham’s legislation, the formation of a task force by Gov, Jennifer SB 186, has been a nightmare for the technicians GRANHOLM to assist the community in identi- working the web site, but it’s a vindication for the fying issues it needed to address in the wake of last summer’s riots. Page 10 MIRS Capitol Capsule Tuesday, January 20, 2004

Virginia Governor Named NGA Vice Chair On This Day In Michigan History Virginia Gov. has been se- On Jan. 20, 1815, Josiah W. BEGOLE was lected as the vice chairman of the National Gover- born in Groveland, New York. At the age of 21, nors Association (NGA), the association announced Begole left New York and arrived in Michigan, last week. Gov. Warner fills the vacancy created by settling in Flint. Besides running a 500-acre farm, the resignation of Mississippi Gov. Ronnie he founded one of Flint’s largest sawmills. After MUSGROVE, who leaves office later this month. making his fortune, Begole entered politics, The move became effective Dec. 23, 2003. serving as Genesee County treasurer, a state senator and a U.S. congressman. In 1882, as an Traditionally, the office of NGA chairman is advocate of paper money, Begole headed a alternated between a Republican and a Democrat Fusionist party ticket supported by Democrats and with the vice chairman typically being named the Greenbackers, and was elected governor in a five- next year’s chairman. Warner is a Democrat. NGA man race. Begole was re-nominated by the Chairman is a Republican. Fusionists in 1884, but defeated by Republican “It’s a privilege to serve, especially during Russell ALGER. these times of great fiscal challenge for the states,” Source: Michigan History magazine. Warner said. “I’m proud of NGA’s bipartisan track record and I look forward to supporting Gov. Kempthorne’s work as chairman.” NGA’s membership elected Gov. Warner after he was nominated by a five-governor committee.

Governor’s Appointments Gov. Jennifer GRANHOLM today announced the following appointments: Michigan Plum Advisory Board Gary FREDRICKSON, of Northport, was reappointed to represent growers from Northern Michigan for a term expiring July 1, 2006 Michigan Strategic Fund Board of Directors Donald JAKEWAY, of Haslett, was appointed to replace Doug ROTHWELL, who has resigned, representing persons with knowledge, skill and experience in the academic, business or financial field, for a term starting Jan. 14, 2004 and expiring at the pleasure of the governor.

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