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| December 21, 2011- Volume 3 - 25 |
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 GOVERNOR SNYDER SIGNS BILLS TO UPDATE WORKERS' COMP AND UNEMPLOYMENT INSURANCE SYSTEMS
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ABC of Michigan backed legislation recently signed by Governor Rick Snyder that strengthens the state's Unemployment Insurance program and updates workers' compensation laws.
"These bills are critical to our reinvention of Michigan," Snyder said. "Modernizing our unemployment insurance and workers' compensation systems will ensure their solvency and integrity."
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LEGISLATURE LIFTS CAP ON CHARTER SCHOOLS |
As students across Michigan end the fall semester and prepare to break for Christmas, the legislature approved Senate Bill 618, legislation to lift the arbitrary cap on charter schools in Michigan, empowering parents and putting children first.
Two-thirds of the state's charter schools, most in urban districts like Flint, Grand Rapids, Lansing and Detroit, have waiting lists as parents demand more choices and better results for their children.
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MICHIGAN ENACTS 1% TAX ON MEDICAL CLAIMS |
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On September 20, 2011, Governor Rick Snyder signed into law the Health Insurance Claims Assessment Act, S.B. 348, which will impose a new one percent (1%) tax on paid health care claims.
This tax, which takes effect on January 1, 2012, will be paid by insurers that provide fully-insured plans, and by third party claims administrators in the case of self-funded plans. The tax is intended to help fund Michigan's Medicaid program and will be paid quarterly, beginning April 30, 2012.
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GOVERNOR SNYDER SIGNS COMMUNITY REVITALIZATION PROGRAMS INTO LAW |
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Governor Rick Snyder signed into law a five-bill package creating new economic development and community revitalization programs that will provide $100 million in incentives for highly competitive projects in Michigan.
The Michigan Business Development and Michigan Community Revitalization Programs replace the state's previous MEGA, Brownfield and Historic tax credit programs that were features of the Michigan Business Tax and were eliminated under business tax restructuring legislation approved and signed into law by the governor in May.
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ABC MEMBERS APPOINTED TO BOARD OF MECHANICAL RULES |
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Governor Rick Snyder announced the appointment of seven members to the Board of Mechanical Rules.
The board makes recommendations for mechanical code rules, issues mechanical contractor's licenses to qualified applicants, and makes all orders, rules and regulations.
"Each appointee will bring unique experiences and talents to the board," Snyder said. "I look forward to their contributions to the board as it oversees the licensing of mechanical contractors in Michigan."
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230 N. Washington Square
Suite 202
Lansing, MI 48933
Ph. (517) 853-2545 Fax: (517) 853-2546 |
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About ABC of Michigan
Associated Builders and Contractors of Michigan is a statewide trade association, working in partnership with four local chapters, dedicated to providing Michigan with high-quality, affordable, safe and on-time construction. ABC of Michigan is an equal opportunity organization that opposes all discrimination in the construction industry including discrimination based on union affiliation. A leading construction industry voice with state government, ABC provides many member services including legislative advocacy, networking opportunities, member benefits, legal updates, business development and educational opportunities.
| | GOVERNOR SNYDER SIGNS BILLS TO UPDATE WORKERS' COMP AND UNEMPLOYMENT INSURANCE SYSTEMS |
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ABC of Michigan backed legislation recently signed by Governor Rick Snyder that strengthens the state's Unemployment Insurance program and updates workers' compensation laws.
"These bills are critical to our reinvention of Michigan," Snyder said. "Modernizing our unemployment insurance and workers' compensation systems will ensure their solvency and integrity."
Senate Bills 483 and 484, sponsored by state Sen. Mark Jansen, allow Michigan to restore the Unemployment Insurance program to solvency by issuing revenue bonds. Michigan has the highest per capita unemployment insurance debt in the nation. The state has paid more in benefits than it has collected from job providers who finance the system. Since 2007, Michigan has borrowed money from the federal government to pay its obligations to unemployed workers. The current debt exceeds $3 billion. These bills are now Public Acts 267 and 268 of 2011.
The bond proceeds extinguish the federal liability and allow for repayment of money borrowed from the General Fund. This will eliminate Michigan's debt to the federal Unemployment Trust Fund and ensures that the trust fund is solvent moving forward.
In addition, the legislation creates an amnesty program for claimants and employers. It also lets small businesses spread unemployment insurance payments over a calendar year while allowing greater flexibility in seasonal employer designations targeting Michigan's tourism industry.
Other updates include changing the definition of the "suitable work" requirement to include jobs outside of a claimant's experience if the work pays 120 percent of his or her weekly benefit amount, and providing the Unemployment Insurance Agency with tools to have greater control over the system's integrity.
S.B. 806, sponsored by state Sen. Jack Brandenburg, provides a triggering mechanism to ensure the state develops and maintains a surplus in the trust fund to avoid future deficits as well as institutes several administrative efficiencies. The maximum weekly benefit of $362 remains unchanged as does the formula of unemployment benefit calculation. The legislation does not reduce the number of benefit weeks for claimants. S.B. 806 is now P.A. 269 of 2011.
House Bill 5002, sponsored by state Rep. Brad Jacobsen, continues the state's mission to protect workers who are injured on the job, while ensuring that the workers' compensation system remains viable. H.B. 5002 is now P.A. 266 of 2011.
The bill promotes certainty to workers and employers by codifying years of Supreme Court and Court of Appeals decisions. Under the bill, a person receiving workers' compensation benefits must take a job that is within his or her skill set, and that they can physically perform, if it is available to them. If not, the person risks losing the compensation benefits.
"The system's goal must be to help injured workers get back on the job as soon as possible while making sure the benefits they deserve during recovery are paid fully and promptly," Snyder said. "These changes to this 100-year-old act will help ensure that the promise of compensation for injured employees is around for the next century."
The legislation supports the Workers' Compensation Agency's goal of gaining efficiencies through electronic filing and results in a savings of over $400,000 through reorganization of the mediation system for contested workers' compensation issues. Benefits held up by contested cases will move more quickly. Legal costs also will be reduced as the bill allows settlements to be entered without an additional hearing before a magistrate.
Issues such as fraudulent claims by employees or the failure of employers to secure coverage increase the cost of workers' compensation. H.B. 5002 requires the agency to report to the Legislature on measures taken to address such issues.
Click here to return to top of Merit Minute.
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| LEGISLATURE LIFTS CAP ON CHARTER SCHOOLS |
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As students across Michigan end the fall semester and prepare to break for Christmas, the legislature approved Senate Bill 618, legislation to lift the arbitrary cap on charter schools in Michigan, empowering parents and putting children first.
Two-thirds of the state's charter schools, most in urban districts like Flint, Grand Rapids, Lansing and Detroit, have waiting lists as parents demand more choices and better results for their children.
"Parents want the best for their children, and that starts with a quality education," said the bill's sponsor, Senate Education Committee Chair Phil Pavlov, R-St. Clair Township. "Today's action by the House of Representatives to lift the cap on charter schools and give parents quality options for their kids' education is a critical step toward improving Michigan's whole education system."
In addition to action to remove the arbitrary cap on university-authorized charter schools, the Legislature is currently considering additional parent-empowerment reforms that would improve educational opportunities for Michigan children, including bills to:
- Expand opportunities for cyber learning in Michigan;
- Allow a majority of parents or teachers at a failing school to petition their district to convert the school to a charter;
- Expand opportunities for public school districts to provide part-time services to non-public school students; and
- Allow access to duel enrollment college credits for all high school students.
Senator Pavlov applauded the speaker of the House and the chair of the House Education Committee for their work.
"The status quo is failing too many children," Pavlov said. "That is something none of us, Republicans or Democrats, should tolerate. I commend the leadership of Speaker Bolger and Chairman McMillin in taking this major step toward breaking down barriers standing between our kids and their future."
Click here to return to top of Merit Minute.
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| MICHIGAN ENACTS 1% TAX ON MEDICAL CLAIMS |
On September 20, 2011, Governor Rick Snyder signed into law the Health Insurance Claims Assessment Act, S.B. 348, which will impose a new one percent (1%) tax on paid health care claims.
This tax, which takes effect on January 1, 2012, will be paid by insurers that provide fully-insured plans, and by third party claims administrators in the case of self-funded plans. The tax is intended to help fund Michigan's Medicaid program and will be paid quarterly, beginning April 30, 2012.
While all insured Michigan residents will be impacted by this new legislation, it remains unclear how insurers will reflect the additional cost in their statements. At this time, we understand that Blue Cross Blue Shield of Michigan will include it as a line item on member bills, but other carriers may opt to build it into their rates.
The new tax applies to most health care claims, but not all. According to the statute, some exempt claims include:
- Services for Michigan residents received outside of the state
- Cost-sharing requirements (deductibles, co-pays and coinsurance)
- Reimbursements under a flexible spending arrangement, health savings account, Archer medical savings account, Medicare Advantage medical savings account or other health reimbursement arrangements authorized under federal law
- Claims paid under a federal employee health benefit program
- Medicare, Medicare Advantage, Medicare Part D claims
- TRICARE (military-CHAMPUS and the United States Veterans Administration claims)
- Workers' compensation and long-term care claims
The tax is intended to generate $400 million in annual revenues for the state of Michigan. If the revenue collected exceeds that amount, insurers and third party administrators would receive a credit against their assessments due the next year. Barring any legislative intervention, the tax is set to expire on January 1, 2014.
Please contact your insurance provider if you have questions about this new legislation and its impact on your health coverage.
Click here to return to top of Merit Minute.
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| GOVERNOR SNYDER SIGNS COMMUNITY REVITALIZATION PROGRAMS INTO LAW |
Governor Rick Snyder signed into law a five-bill package creating new economic development and community revitalization programs that will provide $100 million in incentives for highly competitive projects in Michigan.
The Michigan Business Development and Michigan Community Revitalization Programs replace the state's previous MEGA, Brownfield and Historic tax credit programs that were features of the Michigan Business Tax and were eliminated under business tax restructuring legislation approved and signed into law by the governor in May.
"We have worked diligently to build a friendlier business climate in Michigan to help drive Michigan's economic turnaround," Snyder said. "These programs will better leverage our state's assets in ways that are simple, fair, efficient and transparent."
"These new incentive programs enable us to attract business investment for job creation and redevelopment of our communities with performance based benchmarks through a transparent process," said MEDC President and CEO Michael A. Finney. "We can now offer quicker access to funding assistance for businesses and developers with lower costs and greater flexibility for the state and our communities."
Senate Bill 556, sponsored by state Sen. John Proos, creates the Michigan Business Development Program to provide grants, loans and other economic assistance to qualified businesses that make investments or create jobs in Michigan, with preference given to businesses that need additional assistance for deal-closing and for second stage gap financing. The bill is now Public Act 250 of 2011.
In any fiscal year, a qualified business cannot receive more than $10 million. The legislation amends the Michigan Strategic Fund (MSF) Act and places the new program within the MSF. The program effectively replaces the MEGA tax credit program.
The MSF will consider a number of factors in making these awards, including: out-of-state competition, private investment in the project, business diversification opportunities, near-term job creation, wage and benefit levels of the new jobs and net-positive return to the state. Business retention and retail projects are not eligible for consideration of these incentives.
Senate Bills 566-568 and 644, sponsored by state senators John Pappageorge, Mike Kowall, Geoffrey Hansen and Tonya Schuitmaker respectively, create a new Michigan Community Revitalization Program. This program will provide grants, loans or other economic assistance of up to $10 million to projects that will revitalize regional urban areas, act as a catalyst for additional investment in a community, reuse vacant or historic buildings and promote mixed use and sustainable development. The Michigan Community Revitalization Program is created within the MSF. These bills are now Public Acts 250-254 of 2011.
Click here to return to top of Merit Minute.
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| ABC MEMBERS APPOINTED TO BOARD OF MECHANICAL RULES |
Governor Rick Snyder announced the appointment of seven members to the Board of Mechanical Rules.
The board makes recommendations for mechanical code rules, issues mechanical contractor's licenses to qualified applicants, and makes all orders, rules and regulations.
"Each appointee will bring unique experiences and talents to the board," Snyder said. "I look forward to their contributions to the board as it oversees the licensing of mechanical contractors in Michigan."
Christopher Freeman, of South Lyon, is manager of information systems for the Mechanical Contractors Association Detroit. He is a member of the American Society of Association Executives, the Michigan Society of Association Executives and the Mechanical Contractors Association of America. Freeman earned a bachelor's degree in manufacturing systems engineering from Kettering University in Flint. He will represent the general public and replaces Charles Wash.
Robert Fosburg, of Caledonia, is general manager in the construction division for Quality Air Heating and Cooling in Grand Rapids. He is licensed by the State of Michigan as a mechanical construction and boiler installer. Fosberg achieved U.S. Green Building Council LEED Accredited Professional status in 2007. He will represent hydronic heating and cooling process piping and replaces Lawrence Hale II.
Catherine Gay, of Troy, is manager of project controls for DTE Energy. She has worked for DTE for more than 34 years serving in various positions in electric generating plants and on the fossil generation staff. Gay earned a bachelor's degree in mechanical engineering from the University of Michigan, and both a master's degree in finance and a MBA from Walsh College in Troy. She will represent energy producing utilities and replaces Gary Van Octen.
Daniel Grafmiller, of Fenton, is project manager and estimator for Vencon, Inc. He has a mechanical license from the State of Michigan and earned a refrigeration certification from Sheer Metal and Air Conditioning Contractors' National Association. Grafmiller earned a bachelor's degree in English and communications from the University of Michigan. He will represent Ductwork and replaces Christopher Stockwell.
Robert Logan, of Battle Creek, is the chief mechanical official for Dewitt Charter Township in Clinton County. He serves on the International Code Commission and is the past president of the Mechanical Inspectors Association of Michigan. Logan earned an associate's degree in general studies from Kellogg Community College. He will represent chief mechanical inspectors of a government subdivision and replaces Michael Ogletree.
Kenneth Misiewicz, of Vermontville, is president and CEO of Pleune Service Co. in Grand Rapids. He holds a mechanical contractors license from the State of Michigan and is certified in the specialty gas pipe/venting classification. Misiewicz will represent specialty work areas and replaces Mark Mangione.
Mark Riley, of Berkley, is the inspector supervisor and mechanical inspector for the city of Troy building department. He is a member of the Mechanical Inspectors Association of Michigan and the International Code Commission. Riley earned an associate's degree in refrigeration, heating and air conditioning from Ferris State University and is a licensed state of Michigan mechanical inspector and mechanical contractor. He will represent chief mechanical inspectors and replaces George Shields.
Appointees will serve four-year terms expiring Oct. 1, 2015, and are subject to the advice and consent of the Senate.
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