Advocacy News – July 13, 2023
The first six months of the 102nd Michigan Legislature has been fast moving, and your MI Chamber team has been in the middle of the action, taking the lead on key issues facing Michigan’s business community, from significant employment law to tax policy to regulatory, environmental and energy changes.
Here’s a rundown of what we’ve seen so far: the good, bad and ugly.
The good: Several key MI Chamber priorities have advanced to the Governor’s desk and have been signed into law. This includes:
- Tax relief for businesses paying sales tax on delivery and installation of products.
- Legislation to reduce regulatory barriers and increase renewable energy development.
- Ensuring machinery used for industrial processing are exempt from sales and use tax.
- Restores and increases the state’s refundable tax credit for low or moderate-income workers, also known as the Earned Income Tax Credit (EITC).
- Inclusion of pro-business initiatives funded in the 2024 state budget, including:
- Funding for the Going PRO Talent Fund, which provides direct grants to employers to assist with the training and development of new and existing employees: $54.75 million.
- Funding for Tri-Share, a collaborative childcare program encouraging private-public partnership with employers, employees and the state to deliver childcare access to working parents: $3.4 million.
- Funding for Digital Workforce Development, which will connect prospective employees with employers: $4.9 million.
- Funding to seal and remediate abandoned oil and gas wells, and adjacent areas, throughout the state: $53.1 million.
- Funding for contaminated site clean-up: $20 million.
- Funding to support the re-powering of the Palisades nuclear power plant to help with energy capacity: $150 million.
- An expansion of the Elliott Larsen Civil Rights Act.
- Legislation that would simplify and streamline the taxation of solar personal property equipment.
The bad: Several anti-business, anti-growth proposals have been introduced in the State Senate, House or both. Most of these proposals have received a committee hearing, making it likely that the Legislature will try to pass some or all these proposals in the fall. This includes:
- Allowing local governments to impose wage and benefit mandates on local businesses, creating a patchwork of local minimum wage, paid sick leave, predictive scheduling and other employment law mandates.
- Expansive employment law changes restricting the use of independent contractors and noncompete agreements, mandating wage transparency…and more.
- Legislation to move Michigan towards clean energy goals — without regard for reliability or affordability.
- New Barriers to using temporary staffing agencies.
- Legislation giving a green light to municipalities wishing to enact anti-competitive government mandated project labor agreements (PLAs).
The ugly: A handful of anti-business proposals have passed by the State Senate and House in the first few months of the 102nd Legislature and have received, or are likely to receive, a signature by the governor. These include:
- Repeal of Michigan’s Right to Work law and restoration of the state’s prevailing wage mandate.
- Legislation giving state regulatory agencies the green light to promulgate rules that are more stringent than federal requirements.
- The Chamber and other business groups have asked the Governor to veto.
- Other items rumored may be on the horizon for consideration:
- Employer-funded paid leave insurance program – SB 332–333, HBs 4574–4575.
- Sweeping changes and benefit increases to the employer-financed workers’ comp and unemployment insurance systems.
- Sweeping changes to insurance – Pay claims first, ask questions later. Bad faith insurance legislation – HB 4681, SB 329.
- Predictive scheduling mandates – HB 4035.
- Refundable tax credit for union dues – HB 4235.
- ‘Polluter Pay’ (strict liability changes) to Michigan’s Part 201 environmental clean-up laws.
- Environmental permitting restrictions that include the cumulative impacts within a community.
For a full list of the bills the MI Chamber is actively working on and monitoring, all of which the Legislature could consider yet in 2023 or further into 2024, please visit our Key Bills page.
If you have a question about legislation pending before the Michigan Legislature, please contact our Business Advocacy Team at info@michamber.com.