Advocacy News – Aug. 31, 2023
Governor Gretchen Whitmer provided an unprecedented mid-year address this week, outlining her top legislative priorities for the fall and beyond.
Why it matters: Whitmer called for legislative action on a range of high stakes policy issues, from creating a massive, new paid leave government insurance program impacting employers of all sizes and types to mandating 100% clean energy mandates.
What we’re saying: While the Michigan Chamber shares a vision and commitment with the Governor to grow Michigan’s population and build a stronger, thriving state for all, we’ve voiced that it’s nearly impossible to see how some of the concepts outlined in the Governor’s speech get us there or aren’t inherently contradictory to those goals. Our economic competitiveness centers on our state’s ability to be ready and open for growth and prosperity, not crippling mandates or regulations. Read the Chamber’s full statement on the Governor’s “What’s Next” address HERE.
Go deeper:
Paid Leave
In her speech, the Governor called on the Michigan Legislature to establish “Paid Family and Medical Leave.”
It is widely believe that bills introduced in the House and Senate, Senate Bill 332 and House Bill 4574, will be the starting point for discussions. Those bills create an expansive state-administered paid leave insurance program financed through a new tax on employers and, in some instances, employees.
Under the proposed “Michigan Family Leave Optimal Coverage Benefits Act” (MI-FLOC), employees would be permitted to take up to 15 weeks of paid intermittent leave from work to care for themselves or their families (10 days for bereavement). Standard reasons for leave like bereavement and childbirth would be expanded under the bills to include school or workplace closures due to public health emergencies, mental health issues and school meetings related to student health and wellbeing and more. Recipients of paid leave benefits would be eligible to receive up to 65% of the state’s average weekly wage, or approximately $788 per week. The proposal would impact every employer and would raise taxes on employers by an estimated $1 billion or more per year.
Following the Governor’s address, the Chamber released the following statement regarding this issue:
“We have grave concerns with creating a new, $1 billion-plus annual payroll tax on every worker and business to fund a massive, new paid leave government insurance program. We recognize competitive employee benefits are key to attracting and retaining talent, supporting employees and building team health and wellness, but a one-size-fits-all mandate of this type and magnitude would just result in bureaucracy and hurt the very people it is intending to help – especially small businesses and Michiganders living paycheck-to-paycheck.”
Read our full analysis of the legislation HERE. For questions or more information on the proposed paid leave changes, contact Wendy Block at wblock@michamber.com.
Energy & Environment
Governor Whitmer used her speech to call for greater clean energy sources to power the Great Lakes State. Governor Whitmer stated her goal is to enact a 100% clean energy standard and subsequently derive all of Michigan’s energy from “wind, solar, or other commonsense sources.” To address the proposed clean energy standard, the Governor called for increased authority for the Michigan Public Service Commission (MPSC) to include permitting clean energy processes and for the consideration of “climate and equity into their regulatory decisions.”
Following the Governor’s address, the Chamber released the following statement regarding this issue:
“A clean energy future is vitally important, but how we get there matters and must be realistic. We simply can’t ignore the necessity of safe, reliable, and affordable energy. We need to have serious conversations around rational goals and how we can responsibly advance clean energy without posing significant economic burdens on families, businesses and communities.”
Since April, Democratic leaders in the Michigan Senate have been working on a package of bills, Senate Bills 271-277, that would accelerate the state’s path to clean energy by mandating that 100% of Michigan-produced energy be from renewable sources by 2035. The package would also:
- Ban a variety of other electricity generation sources including biomass, landfill gas, co-generation, gasification, pyrolysis and municipal waste to fuel.
- Give sweeping new authorities to the Licensing and Regulatory Affairs (LARA) Department to promulgate new rules and building codes that would focus on decarbonizing commercial and residential buildings, construction methods and building materials. It also mandates a reduction of emissions related to heating Michigan homes and businesses 17% by 2030.
- Give expansive authority and purview of the Michigan Public Service Commission to include “the impact of the plan on climate change, equity, reliability, affordability, cumulative health effects, and emissions in addition to carbon.” This would be a significant expansion of the MPSC’s authority.
In addition, the Governor called for streamlining the permitting process for advanced manufacturing, infrastructure, housing, and more. We hear consistently from our members that even getting approval for basic permitting is burdensome and challenging. We hope that the Governor will take a holistic approach to working with the Legislature on common sense solutions to making permitting reforms a tool for economic development, and not the other way around.
For more information on this package of bills, click here. For questions or to offer feedback, contact Mike Alaimo at malaimo@michamber.com.
Health
The Governor called for the establishment of an independent, non-partisan Prescription Drug Affordability Board (PDAB) based on the recommendation of the Prescription Drug Task Force implemented in her previous term. According to the Task Force’s recommendation, the board would be comprised of “impartial entities made up of multiple stakeholders that would give the state the ability to establish certain rates, set spending targets, and limit how much its residents may pay for certain high-cost drugs.”
Although no such legislation has yet to be introduced at the state level, the Michigan Chamber has concerns with state government interfering in the private market through this price setting scheme.
For questions or more information regarding the proposed PDAB process, contact Leah Robinson at lrobinson@michamber.com.