Shortly before midnight on Friday, December 13, the House adjourned until Wednesday, December 18. After four days of marathon sessions, several issues the League was tracking saw movement, while others may be done for the legislative term.
We have two major issues remaining for next week. We continue to push the Senate to pass the Revenue Sharing Trust Fund (HB 4274 and 4275) and provide a predictable and stable revenue source for local government. We also remain deeply concerned about the passage of minimum staffing legislation (SB 1167) and the negative impacts this could have on our communities.
The House and the Senate are scheduled to return on Wednesday, December 18. The final day of voting is likely going to be December 19.
It is imperative that we continue to make our voices heard through continued outreach from our members. We cannot wait until December 18 to reengage. We must act now and act often! Below is an overview of the current state of the legislative issues the League is tracking.
We will also be covering this information Monday, December 16, on Live with the League. Register here and join us for the latest news and information.
ENGAGE NOW! Two Major Issues Remain
Minimum Staffing Mandate: Senate Bill 1167
Note: The companion House Bill, 4688, did not pass the House and is unlikely to see further action. All efforts should focus on opposing SB 1167.
Senate Bill 1167 passed the Senate by a vote 20-17 on Dec 12. An amendment was adopted but it provided no substantive change to the impact of this legislation and the League remains opposed.
This legislation would require minimum staffing levels to be a mandatory subject of collective bargaining between the public employer and the representative of its police and fire department employees. Minimum staffing levels would also be subject to arbitration for labor disputes involving public police and fire departments.
It has been stated that the MML has been spreading misinformation about the impact of this legislation. Expressing the real-world implications of this on our members is not misinformation. Identifying how this could have negative fiscal impacts on municipal budgets of our members is not misinformation. Expressing how this could lead to the reduction in services or the ending of partnerships across municipal boundaries is not misinformation. Those are the realities our communities will face should this legislation become law.
While the bill may mandate the conversation and subject those negotiations to arbitration, it does nothing to guarantee that there is a qualified applicant to fill an open job. We still experience struggles in the hiring process.
If we really wanted to address this issue, we would focus less on creating mandates, and more on making sure that new and proper resources were in place to recruit and retain those that desire to be in this profession.
Our job is not to be distracted by the narrative others are peddling. Our job is to tell our story and our truth. The time is now for our members to stand up, reach out, and express our opposition to this legislation today, and every day, until the House adjourns for the year!
League Position: Strongly Opposed
Member Action Needed: Yes, contact your state representatives immediately and request they oppose Senate Bill 1167.
Revenue Sharing Trust Fund: House Bills 4274 and 4275
Revenue sharing is one of two primary funding sources local governments rely on to provide core services to residents. It ensures we can keep our communities safe and secure, provide safe drinking water, maintain parks, and be attractive to small businesses and entrepreneurs. Unfortunately, even with recent increases, this important funding stream is hundreds of millions of dollars less annually than it was in the late 90s. This places undue pressure on local governments to continue identifying funding sources to provide core services. It is time to change this dynamic by creating a system that protects and provides predictability for local units of government.
All state shared revenue for local units of government should be secured utilizing a trust fund model. Additionally, those resources should be calculated based on a percentage of sales tax collected allowing resources to rise and fall with economic change. We are requesting the following:
- Amend the Michigan Trust Fund Act to establish a Revenue Sharing Trust Fund within the Department of Treasury.
- Amend the General Sales Tax Act to require the Department of Treasury to deposit 8.7% of the money received and collected from the tax imposed at a rate of 4% into the newly created Revenue Sharing Trust Fund.
- Beginning on October 1, 2025, the State Treasurer would have to transfer and disburse money received by the Revenue Sharing Trust Fund from sales tax revenue.
League Position: Strongly Support
Member Action Needed: Yes, call your senator and ask that this legislation be brought up for a vote in the Senate.
Additional issues we are following and need your engagement on:
Ground Emergency Medical Transportation (GEMT): House Bill 5695
HB 5695 would authorize Michigan’s participation in the federal Ground Emergency Medical Transportation Program, a voluntary, opt-in, supplemental reimbursement program administered by the Centers for Medicare and Medicaid Services (CMS) for eligible ground emergency medical transportation providers. Eligible providers are public providers owned and operated by a eligible governmental entity that provides ground emergency medical transportation.
With HB 5695, the Michigan Department of Health and Human Services (DHHS) would initiate the process to amend the state’s Medicaid state plan to establish and administer the ambulance reimbursement program no later than 90 days after at least two eligible ground emergency medical transportation providers have submitted a complete and acceptable cost report. The amount of supplemental reimbursement to an eligible provider would be equal to the amount of federal financial participation received for the provider’s cost for the services, up to 100% of the actual cost incurred.
League Position: Support
UPDATE: 12/12 – Passed the House by a vote of 69-40
Member Action Needed: Yes, if your community is, or is serviced by an “eligible provider”, contact your state senator and urge them to vote yes on the bill.
Worker’s Compensation Presumption of Causation: House Bill 4729
This legislation expands the Worker’s Disability Compensation Act by providing that a respiratory or heart disease can be designated as a compensable personal injury if the disease or illness develops while the individual is in active service as a result of the performance of their duties. It is presumed that the disease or illness can be attributed to employment. Specifically, the expansion would include part-time or on-call members of a police department of a municipality, as well as part-time, on-call, or volunteer members of a fire or public safety department of a municipality. The League testified that our concerns are attributed to the inability to identify the potential cost/risk increase associated with this, and offered an amendment that would link this expansion of coverage to the First Responder Presumed Coverage Fund.
League Position: Opposed
Member Action Needed: Yes, ask your senator to oppose.
Part 31 of the Natural Resources and Environmental Protection Act: Senate Bill 663
Note: The companion House Bill, 5205, did not pass the House and is unlikely to see further action. All efforts should focus on opposing SB 663.
This bill would remove a prohibition that has been in place since 2006 for the Department of Environment, Great Lakes, and Energy (EGLE) from promulgating rules under Part 31 of Natural Resources Environmental Protection Act NREPA (Water Resources Protection) that are not specifically authorized in statute. Cities perform an extensive number of currently exempt projects and apply for a significant number of permits for public works projects. Adding unchecked rule making authority could cost taxpayers significantly more due to the potential increase in price and delays of public works projects. Part 31 also includes sections that could dramatically impact communities in the MS4 program, potentially leading to unfunded mandates.
League Position: Oppose
Member Action Needed: Yes, ask your representative to oppose.
Other Issues we are tracking:
Publicly Funded Health Insurance Contribution Act (PA 152): House Bill 6058
House Bill 6058 increases the amount that public employers will pay toward employees’ medical benefit plans. Currently, public employers can choose between an inflation-adjusted capped contribution (hard cap) or a maximum 80% contribution. The proposed legislation would do away with this ceiling and replace it with increased contribution amounts that become the floor for healthcare costs. This would make it nearly impossible to manage on a year-over-year basis.
MML and other local government organizations have proposed amendments to HB 6058, as well as to Senate versions, addressing PA 152 changes that would make this legislation more manageable for municipalities. This includes returning to a ceiling for the hard cap and the maximum contribution rate but increasing the hard cap and using a more sustainable inflationary factor.
League Position: Strongly Opposed Without Proposed Changes
- UPDATE 12/14: Changes were made to this legislation that increased the hard cap and increased the inflationary factor while keeping the cap at a ceiling. The opt out provision remains and the 80/20 cost share is now a floor. This legislation is not perfect but it strikes a balance between a compete repeal and needed changes.
Member Action Needed: None
Oath of Office: House Bills 5699, 5700, 5701, 5702
These bills address a conflict between state law and some municipal charters because of Proposal 2 of 2022 implementation. Together, the bills would require township and village officials to begin their terms of office on December 1, and city officials to begin their terms on the first day of the month after their election beginning in 2025. The legislation also provides that an individual elected to fill a vacancy as a result of a special election could not take office until the election is certified by the appropriate board of canvassers. Additional details can be found here.
League Position: Neutral
Member Action Needed: None
Land Division Act: Senate Bill 480
SB 480 amends the Land Division Act to increase the allowable divided parcels for the first 10 acres of a parent parcel from four to 10. It also allows the land to be divided into a greater number of parcels or tracts if the local unit of government allows by ordinance and the division complies with the standards set forth in that ordinance.
League Position: Neutral
Member Action Needed: None
Issues we believe to be done for the session:
Important note: These bills will likely see no further action this session, but the Senate is tentatively scheduled for session on December 23. While it is very unlikely the Senate will meet on the 23rd, it is possible the House could act on these bills on their next scheduled session day of December 18, and they could still pass the Senate. We will continue to monitor these issues closely and let you know if further action by our members is needed.
Short Term Rentals (STR): House Bill 5438
House Bill 5438 would create the Short-Term Rental Regulation Act. The bill maintains a local unit of government’s right to regulate STRs. It establishes a statewide registry of STR properties to assist in the administration and enforcement of the act. It also creates a 6% STR excise tax to assist municipalities with the public costs of tourism. It protects neighborhoods from being overrun with vacation rentals. It allows communities to balance their housing needs, and it provides new revenue to deal with the costs associated with being a destination place. Additional details can be found here and here.
League Position: Strongly Support
Housing Package Preempting Local Control: House Bills 6095, 6096 6097 and 6098
House Bills 6095, 6096, 6097 and 6098 are being touted as helping to end Michigan’s housing crisis and needed housing reform at the local level. Supporters claim municipalities are stopping the state from creating enough housing options to house Michiganders, are adding unnecessary costs to housing, and the only way to address this is removing local governing and inserting state mandates. The reality is, we’ve been working in partnership to proactively address our state’s housing crisis instead of taking the easy route of just copying other state’s actions (which have produced little to no results). It’s not easy to take on meaningful reforms that will have actual impacts for Michigan’s housing crisis like requiring any cost saving measures be passed on to the actual housing project, reviewing third party planning consultant fees and capping if appropriate, looking at commercial corridors with existing water, sewer and transportation infrastructure to increase housing supply, providing funding considerations for the places that have taken on zoning reforms, etc. We are willing to do the hard work! These bills are not that. Additional details on each bill here.
League Position: Oppose
Water Affordability Package: Senate Bills 549, 550, 551, 552, 553, 554, and 980, House Bills 5088, 5089, 5090, 5091, 5092, and 6228
These bills would create the low-income water residential affordability program fund. Revenue for the fund would be generated by a $2 per month fee on retail water meter fee assessed on all residential water customers in the state. They also establish a tiered statewide low-income residential water affordability program. If a customer’s household income is 0-135% of the federal poverty level, the bill cannot exceed 2% of the average household income. If the customer’s household income is 136%-200% of the federal poverty level, their bill cannot exceed 3% of the average household income. The fund will provide arrearage forgiveness up to $1,500 and water infrastructure and plumbing repairs up to $2,500 per household. It also provides shut-off protection.
League Position: Opposed
Dark Stores: House Bills 5865, 5866, 5867, and 5868
These bills address tax loopholes used by Big Box retailers. Retailers argue that the taxable value of their stores should be based on sale prices of vacant/abandoned (dark) stores, which reduces property tax liabilities and, in turn, can have a negative impact on community services. The legislation clarifies the type of information the Michigan Tax Tribunal must consider when these cases are brought before the court, and it shifts the burden of proof away from local government toward the plaintiffs.
League Position: Support
Stormwater Utilities: Senate Bill 660
This bill would create the “Stormwater Management Utility Act” as guidance for local units of government should they utilize their existing authority to establish a stormwater management utility. It codifies a formal approach to planning, funding, and managing stormwater infrastructure in the event the local unit of government decides to set up a stormwater management utility. If a local unit of government decides to create a stormwater management utility, they must adopt a stormwater management plan and a stormwater management utility fee ordinance. The ordinance would need to include details about the utility’s service area and the method for calculating the fee. It requires a stormwater utility to be administered and funded separately from revenues in a general fund, ensuring a dedicated revenue source for the expense of stormwater management. Finally, the funds could only be used for the cost of municipal services that are directly related to the management and treatment of stormwater.
League Position: Support
Homeless Bill of Rights: House Bill 4919
House Bill 4919 would create the Bill of Rights for the Homeless Act, which would provide that homeless individuals are granted the same rights as individuals who are not homeless. The League has worked with the sponsor on a sub with clarifying language that does just that. The bill does not sanction encampments but does allow a municipality to provide safe outdoor space(s) if they choose. The bill is currently sitting in the House Economic Development and Small Business Committee, awaiting a vote to adopt the sub.
League Position: Neutral on the proposed sub
Aggregate mining preemption: HB 4526-4528, and HB 6108-6111)
- League Position: Opposed
Tax exemptions for EV charging stations: HB 4708
- League Position: Opposed
Tax exemptions for Continuing Care Facilities: HB 5380
- League Position: Opposed
Requirement to accept postmark property taxes: HB 5797
- League Position: Opposed
John LaMacchia is the League’s director of state & federal affairs. He can be reached at [email protected] or 517-908-0303.