{"id":10586,"date":"2020-12-20T20:38:53","date_gmt":"2020-12-21T00:38:53","guid":{"rendered":"http:\/\/blogs.mml.org\/wp\/inside208\/?p=7710"},"modified":"2020-12-20T20:38:53","modified_gmt":"2020-12-21T00:38:53","slug":"lame-duck-round-up-week-3","status":"publish","type":"post","link":"https:\/\/mml.org\/inside208\/2020\/12\/20\/lame-duck-round-up-week-3\/","title":{"rendered":"Lame Duck Round Up – Week 3…"},"content":{"rendered":"

With the Michigan Senate’s final action late Friday night, only Monday’s House session remains before the 100th Legislative Session comes to an end.<\/p>\n

The Senate remained in session throughout the day Friday, concurring in bills that the House had sent over late on Thursday and working to formulate a deal on a year-end state budget supplemental.\u00a0 As one of their final votes Friday night, the Senate passed SB 748<\/a>, a $465 million appropriation bill aimed at providing additional, state-level Coronavirus relief.\u00a0 Within the Senate-passed bill, $128 million is targeted at COVID-19\u00a0 health-related programs funded through the Department of Health and Human Services, and over $278 million will run through the Department of Labor and Economic Opportunity to support an extension of state unemployment benefits and various small business grant offerings.\u00a0 The League supported two items that were part of the appropriations for the Michigan Department of Treasury; a $5 million appropriation to cover the costs for any penalties or interest waived as part of the recently passed SB 943<\/a>, which offers retroactive summer property tax deferrals to four specific industry segments harmed by pandemic shutdowns, and a change in the language outlining the First Responder Hazard Pay Premium program authorized earlier this summer, to extend the deadline for local units to have paid these hazard pay premiums to eligible employees out to December 29, 2020.<\/p>\n

This appropriation bill now moves to the House for concurrence on Monday, along with a few remaining bills that the House was unable to act on last week.\u00a0 The Governor has not indicated if she will support this supplemental appropriation.<\/p>\n

The following are brief summaries of action during this third week of lame duck:<\/span>\u00a0<\/span><\/p>\n

OMA\u00a0<\/span><\/b>Virtual Meetings:\u00a0<\/span><\/b>The state House<\/span>\u00a0<\/span>and Senate<\/span>\u00a0passed\u00a0<\/span>Senate Bill 1246<\/span><\/a>\u00a0that would amend the Open Meetings Act to\u00a0<\/span>allow communities to continue meeting virtually due to the pandemic through March 31, 2021.<\/span>\u00a0<\/span>The bill now heads to Governor Whitmer for approval.\u00a0<\/span>As you may recall the current law allows communities to meet virtually through the end of this month so getting this extension<\/span> was a high priority for the League<\/span>. This new legislation also <\/span>allows a local state of emergency or state of disaster to be declared\u00a0<\/span>pursuant to<\/span>\u00a0a\u00a0<\/span>local ordinance<\/span><\/b> (in addition to those declared under law or charter in the current law) and adds a local <\/span>chief administrative officer<\/span><\/b> (in addition to a local official or local governing body) as a person who may declare the local state of emergency. In addition, the bill sets requirements a public body shall follow if a meeting is held in person before April 1, 2021, including adherence to social <\/span>distancing<\/span>\u00a0and\u00a0<\/span>mitigation<\/span>\u00a0measures recommended by the Centers for Disease Control and Prevention for purposes of preventing the spread of COVID-19<\/span>\u00a0<\/span>and adopting heightened standards of facility cleaning.\u00a0<\/span>Read this blog<\/span><\/a>\u00a0by the League\u2019s Jennifer Rigterink with all the details.<\/span>\u00a0<\/span><\/p>\n

Solar Projects\u00a0<\/span><\/b>Tax\u00a0<\/span><\/b>Exemptions:<\/span><\/b>\u00a0<\/span>SB 1105<\/span><\/a>\u00a0&\u00a0<\/span>1106<\/span><\/a>\u00a0<\/span>\u2013\u00a0<\/span>Status:\u00a0<\/span>passed House<\/span>,\u00a0<\/span>both\u00a0<\/span>bills now\u00a0<\/span>head to\u00a0<\/span>the\u00a0<\/span>g<\/span>overnor<\/span>.\u00a0<\/span>The League is\u00a0<\/span>opposed to these bills and is\u00a0<\/span>drafting<\/span>\u00a0a<\/span>\u00a0veto request letter<\/span>.\u00a0<\/span>These two bills would exempt all utility-grade solar projects from the industrial\u00a0<\/span>personal property<\/span>\u00a0tax and replace that lost property tax revenue\u00a0<\/span>with\u00a0<\/span>a Payment In Lieu of Tax reimbursement that\u00a0<\/span>amounts to\u00a0<\/span>pennies on the dol<\/span>l<\/span>ar for many local unit<\/span>s<\/span>.<\/span>\u00a0<\/span> Local units would also be required to approve every tax exemption certificate application if the project matches the definition of an “qualified renewable energy facility”, regardless of local land use or economic development plans or support.<\/span><\/p>\n

Summer tax\u00a0<\/span><\/b>deferral<\/span><\/b>:<\/span><\/b>\u00a0<\/span>SB 943<\/span><\/a>\u00a0\u2013\u00a0<\/span>Status<\/span>:<\/span>\u00a0<\/span>passed, heads to governor for approval<\/span>. Originally introduced this summer as part of the summer tax\u00a0<\/span>deferral<\/span>\u00a0proposal that was vetoed, a substitute version of SB 943 was quickly adopted and passed by the Senate to target a select number of industries hit hardest by the pandemic. This\u00a0<\/span>new version<\/span>\u00a0allows for the retroactive\u00a0<\/span>deferral<\/span> of any currently delinquent summer tax bills and waiver of related penalties and interest from four specific industry segments, until Feb 15, 2021. The bill also provides that the state will reimburse local units for the lost penalties and interest owed on any of these deferred amounts (see summary of SB 748-supplemental budget appropriation above). It is not known if the <\/span>Governor\u00a0<\/span>will s<\/span>ign\u00a0<\/span>the bill.<\/span>\u00a0<\/span><\/p>\n

Poverty exemption<\/span><\/b>:<\/span><\/b>\u00a0<\/span>SB 1234<\/span><\/a>\u00a0<\/span>\u2013<\/span>\u00a0Status<\/span>:<\/span>\u00a0<\/span>passed House, heads to governor for approval.<\/span>\u00a0T<\/span>his bill<\/span>\u00a0amend<\/span>s<\/span>\u00a0the current residential property tax poverty exemption to\u00a0<\/span>assist<\/span>\u00a0with various COVID-related impacts\u00a0<\/span>that low-income\u00a0<\/span>residents are facing as they\u00a0<\/span>attempt<\/span>\u00a0to apply for the exemption. The League and the City of Detroit testified in support of these bills in both the House and Senat<\/span>e<\/span>.\u00a0<\/span> Treasury negotiated a number of amendments as a condition of their support prior to passage.<\/span><\/p>\n

Meijer\u00a0<\/span><\/b>Warehouse Equipment\u00a0<\/span><\/b>PPT cut:\u00a0<\/span><\/b>SB 1153<\/span><\/a>\u00a0\u2013<\/span>\u00a0Status:<\/span>\u00a0passed<\/span> House along with two other bills <\/span>(SB 1149<\/a>–1150<\/a>)\u00a0<\/span>exempting this equipment from sales and use tax.\u00a0 All three bills now head to the governor. The League opposed these three bills<\/span>\u00a0<\/span>and\u00a0<\/span>is<\/span>\u00a0drafting\u00a0<\/span>a\u00a0<\/span>veto request letter<\/span>. These bills\u00a0<\/span>would<\/span>\u00a0provide Meijer and other commercial retailers with full sales, use, and\u00a0<\/span>personal property<\/span> tax exemptions for all large-scale consumer goods handling warehouse distribution equipment. The League and all other local government and school groups, and the MI Department of Treasury\u00a0 testified in opposition to these bills.<\/span>\u00a0<\/span><\/p>\n

Historic\u00a0<\/span><\/b>Tax\u00a0<\/span><\/b>Credit<\/span><\/b>:<\/span><\/b>\u00a0<\/span>SB 54<\/span><\/a>\u00a0<\/span>\u2013\u00a0<\/span>Status:\u00a0<\/span>passed House<\/span>,<\/span> heads to governor. <\/span>This proposal has long been supported by the League to<\/span>\u00a0restore Michigan\u2019s state-level Historic Tax Credit program that was repealed under former Governor Snyder.\u00a0<\/span>The new program\u00a0<\/span>will\u00a0<\/span>provide<\/span>\u00a0a 25 percent credit on rehabilitation expenses against state income tax. For homeowners in historic districts, this credit helps offset the costs of repairing older homes while\u00a0<\/span>retaining<\/span>\u00a0their historic attributes.\u00a0<\/span>SB 54 caps the total number of credits per year at $5 million\u00a0<\/span>in order to<\/span>\u00a0have minimal\u00a0<\/span>initial<\/span>\u00a0impact on the State budget<\/span>.\u00a0<\/span>The necessary $5 million for funding of the first year\u00a0<\/span>o<\/span>f the credit was already appropriated in the current state fiscal year in anticipation of this bill\u2019s passage.\u00a0<\/span>\u00a0<\/span><\/p>\n

Water Shut-Offs<\/span><\/b>:<\/span><\/b>\u00a0<\/span>SB 241<\/span><\/a>\u00a0\u2013\u00a0<\/span>Status:\u00a0<\/span>passed House<\/span>, heads to governor for signature.<\/span>\u00a0<\/span>A new version<\/span>\u00a0of this bill was adopted to\u00a0<\/span>codify<\/span>\u00a0the Governor\u2019s\u00a0<\/span>previous<\/span>\u00a0Executive Order related to water\u00a0<\/span>shut-offs<\/span>. In early July Governor Whitmer issued Executive Order 144 that placed a moratorium on water shutoffs until December 31<\/span>st<\/span>\u00a0of this year.\u00a0<\/span>Following the<\/span>\u00a0nullifi<\/span>cation of the Governor\u2019s E.O.s<\/span>\u00a0by the\u00a0<\/span>Michigan\u00a0<\/span>Supreme Court<\/span>, t<\/span>he Admi<\/span>nistration<\/span>\u00a0and the Legislature negotiat<\/span>ed the language in SB 241<\/span>\u00a0to\u00a0<\/span>codify<\/span>\u00a0th<\/span>e inten<\/span>t\u00a0<\/span>of that E.O. <\/span>in statute<\/span>.<\/span>\u00a0This\u00a0<\/span>agreement in this\u00a0<\/span>bill would reinstate the moratorium on water shutoffs and extend the date to March 31, 2021.<\/span>\u00a0<\/span><\/p>\n

T<\/span><\/b>ax foreclosure pr<\/span><\/b>oceeds<\/span><\/b>:<\/span><\/b>\u00a0<\/span>SB 676<\/span><\/a>\u00a0<\/span>and<\/span>\u00a0<\/span>1137<\/span><\/a>\u00a0\u2013<\/span>\u00a0<\/span>Status:\u00a0<\/span>passed House, heads to governor for approval<\/span>.\u00a0<\/span>These bills have been developed in response to the recent Michigan Supreme Court<\/span>\u00a0<\/span>Rafaeli<\/span><\/i>\u00a0decision that found that all \u201cexcess\u201d proceeds from a tax foreclosure sale must be paid to the former owner of the property. This court decision could have a long-term harmful impact on County Delinquent Tax Revolving Funds that will lead to chargebacks being assessed to local taxing jurisdictions. Communities that also\u00a0<\/span>leverage<\/span>\u00a0their right of first refusal to\u00a0<\/span>acquire<\/span>\u00a0these foreclosed properties for the\u00a0<\/span>minimum<\/span>\u00a0bid may also face a more expensive path to\u00a0<\/span>acquiring<\/span>\u00a0these parcels as the court decision also puts the ability to\u00a0<\/span>acquire<\/span>\u00a0parcels for the\u00a0<\/span>minimum<\/span>\u00a0bid at risk.\u00a0<\/span>Following months of work group discussions and negotiations with local units, the County Treasurers Association, and the Michigan Dep<\/span>artment<\/span> of Treasury, the League secured amendments to retain a process for local units to continue acquiring some parcels for the minimum bid and language providing for a local fiscal impact analysis from Treasury to help evaluate and make recommendations to address any increase in chargebacks to local units.<\/span><\/p>\n

COVID Extension to Boards of Review:\u00a0<\/span><\/b>HB 5824<\/span><\/a>\u00a0and\u00a0<\/span>5825<\/span><\/a>\u00a0\u2013\u00a0<\/span>Status: House concurred in Senate changes<\/span>, heads t<\/span>o governor for approval.<\/span>\u00a0<\/span>The League supported these two bills which\u00a0<\/span>codify<\/span>\u00a0the Governor\u2019s now nullified Executive Order that had extended the March 2020 Boards of Review and allowed certain\u00a0<\/span>additional<\/span> appeals and valuation changes during the July 2020 Boa<\/span>rds of Review.<\/span><\/p>\n

Rental Inspections:<\/span><\/b>\u00a0<\/span>SB 692<\/span><\/a>\u00a0\u2013 Status:\u00a0<\/span>passed House, heads to governor for approval<\/span>.<\/span>\u00a0The League was neutral on the bill as the change only\u00a0<\/span>impacts<\/span>\u00a0<\/span>certain\u00a0<\/span>change of ownership situations<\/span>.<\/span>\u00a0<\/span><\/p>\n

COVID critical infrastructure worker:<\/span><\/b>\u00a0<\/span>SB 1258<\/span><\/a>\u00a0\u2013\u00a0<\/span>Status:\u00a0<\/span>passed Senate this week and the\u00a0<\/span>House\u00a0<\/span>is scheduled to vote on this bill on <\/span>Monday<\/span>.<\/span>\u00a0A new law adopted this fall\u00a0<\/span>established<\/span>\u00a0certain employee protections related to exposure to COVID-19.\u00a0One aspect of the new law requires\u00a0<\/span>employees<\/span>\u00a0to quara<\/span>ntine for\u00a0<\/span>14 days<\/span>\u00a0following<\/span>\u00a0certain instances of exposure<\/span>. Specific classes of employees\/businesses are exempt from that 14-day quarantine, like health care employees and first responders. The League advocated for <\/span>the amendments in SB 1258, which would extend the specific employee\/business exemption from the quarantine requirement to include critica<\/span>l infrastructure employees in the\u00a0<\/span>energy industry<\/span>\u00a0and other critical employee categories necessary to preserve public health or public safety, as\u00a0<\/span>determined<\/span>\u00a0by the Dept of\u00a0<\/span>Health<\/span>\u00a0& Hu<\/span>man Services Director<\/span>.\u00a0<\/span>The bill also provides\u00a0<\/span>additional<\/span>\u00a0flexibility\u00a0<\/span>for returning to work with negative test results and time periods for isolation and\/or quarantine as\u00a0<\/span>determined<\/span> appropriate by the CDC, as opposed to designating a specific number of days in statute.<\/span>\u00a0<\/span><\/p>\n

The House is scheduled to commence session on Monday, December 21st at 10 a.m. and wrap up action on around a dozen bills before ending for the year.<\/p>\n

Chris Hackbarth is the League\u2019s director of state & federal affairs. He can be reached at\u00a0517-908-0304\u00a0and\u00a0chackbarth@mml.org<\/a><\/em>.<\/span><\/p>\n<\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":458,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[10,12,18,22,26,27,30,34,41,1,43],"tags":[],"class_list":["post-10586","post","type-post","status-publish","format-standard","hentry","category-economic-development","category-energy-technology","category-grant-opportunity","category-legislative-link-articles","category-municipal-finance","category-municipal-services","category-personal-property-tax-2","category-public-policy","category-stimulus-funding","category-uncategorized","category-water-environment","mml-onemagnify-plugin"],"acf":[],"yoast_head":"\nLame Duck Round Up - 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