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PAADVISORY January 20, 2006

SPEAKER RESTRUCTURES HOUSE COMMITTEES

House Speaker Craig DeRoche (R-Novi) announced the restructuring of several House committees as well as the creation of a new committee on tort reform and subcommittees on tax policy related to the state’s business tax restructuring and school district and municipal finance.

DeRoche removed Democratic Representatives Frank Accavitti (D-Eastpointe), Paul Condino (D-Southfield) and Steve Tobocman (D-Detroit) from the Energy and Technology, Tax Policy and Local Government and Urban Policy committees, respectively, where each served as minority vice chair. Speculation surrounding the removals suggests that Accavitti, Condino and Tobocman were being reprimanded for failing to honor a deal that was supposedly made between them and Republican leaders to change the teacher retirement system. Tobocman remains minority vice chair of the Government Operations Committee.

Rep. Andy Dillon (D-Redford) replaces Accavitti as minority vice chair of the Technology & Energy Committee. Thereafter, Accavitti was tapped to replace Tobocman as minority vice chair of the Local Government and Urban Policy committee. Rep. Virgil Smith (D-Detroit) joins the committee as well. Rep. Steve Bieda (D-Warren) replaces Condino on the Tax Policy committee, with Rep. Jeff Mayes (D-Bay City) joining the committee as well.

The Tax Policy Subcommittee on Business Tax Restructuring will be responsible for researching business tax restructuring options in anticipation of the 2009 sunset of the Single Business Tax. Joining subcommittee chair Rep. Fulton Sheen (R-Plainwell) on the committee are Rep. Leon Drolet (R-Clinton Township), Rep Marleau (R-Lake Orion), Rep. Fred Miller (D-Mount Clemens), with Rep. Barb Farrah (D-Southgate) serving as minority vice chair.

Rep. Kevin Elsenheimer (R-Bellaire) was replaced on the Education committee by Rep. Dave Robertson (R-Grand Blanc). In addition, Elsenheimer was replaced as chair of the subcommittee on Early Childhood Intervention by Rep. Tom Meyer (R-Bad Axe). Also joining the Education committee is Rep. Aldo Vagnozzi (D-Farmington Hills) who replaces Rep. Herb Kehrl’s (D-Monroe), who passed away in November. The committee was increased to include an additional seat that will be held by Rep. Gino Polidori (D-Dearborn). Rep. Dudley Spade (D-Tipton) will replace Kehrl’s on the Higher Education committee.

Elsenheimer was tapped to chair the new Tort Reform committee. Also named to the committee are: Rep. Ed Gaffney (R-Grosse Pointe Farms), Rep. Joe Hune (R-Fowlerville), Rep. Bill Huizenga (R-Zeeland), Rep Roger Kahn (R-Saginaw Township), Minority Vice Chair Rep. Steve Adamini (D-Marquette), Rep. Bill McConico (D-Detroit) and Rep Steve Bieda (D-Warren).

The subcommittee on school district and municipal finance will fall under the Government Operations committee. The subcommittee will be responsible for reviewing current law on state receiverships of school districts and municipalities to make them applicable and up to date. Rep. Judy Emmons (R-Sheridan) was appointed subcommittee chair. New additions to the Government Operations committee include: Rep. Jack Hoogendyk (R-Portage), Rep. John Stakoe (R-Highland), Minority Vice Chair Rep. Steve Tobocman (D-Detroit), and Rep. Alexander Lipsey (D-Kalamazoo).

SENATE PASSES EXPANSION OF S.B.T. CREDIT

On Thursday, the Senate passed legislation aimed at cutting the Single Business Tax obligation for as many as 35,000 Michigan small businesses. SB 597, sponsored by Senator Nancy Cassis (R-Novi), passed largely on a party-line vote of 22-15. Sen. Shirley Johnson (R-Troy) and Sen. Buzz Thomas (D-Detroit) both voted against their respective caucuses on the bill. The bill only affects those businesses with annual sales of less than $10 million, whose chief executive had compensation of $125,000 or less. According to Senate Majority Leader Ken Sikkema (R-Wyoming), the cut is estimated to cost the state general fund about $24 million a year and result in an average cut to state businesses of about $800 annually.

To continue progress on the agenda outlined by Mr. Sikkema and House Speaker Craig DeRoche (R-Novi) last week, the Senate also acted on a job providers “bill of rights” – a series of bills providing new requirements for Department of Treasury officials on how to deal with taxpayer issues. While HB 4244, HB 5356 HB 5357, HB 5358, HB 5359, HB 5360, HB 5361, HB 5362, and HB 5364 passed unanimously, HB 5355, HB 5363 and HB 5386, passed largely by party-line votes. Under these bills, the department would be required to notify a taxpayer of any refunds found during the course of an audit, property applicable to sales taxes would be exempted from use tax collections and taxpayers would be allowed to convert a contest of an assessment to a claim for a refund.

Senate Bill 956, sponsored by Sen. Tony Stamas (R-Midland), passed the Senate Appropriations Committee on a party-line vote. The bill appropriates $116.3 million into state’s Budget Stabilization Fund. It is anticipated that SB 956, as well as, a bill to ban the state from creating rules on ergonomic requirements will be taken up by the full Senate next week.

STATE OF THE STATE ADDRESS

Governor Jennifer Granholm will present her fourth state of the state address on Wednesday, January 25, 2006 at 6 PM. Public Affairs Associates will sponsor an afterglow reception hosted by Speaker Craig DeRoche at 621 Restaurant (621 E. Michigan, Lansing), beginning at 8:30 PM.


PAADVISORY BRIEFS

Committee Replacements Named: Senate Majority Leader Ken Sikkema (R-Wyoming) announced replacements for the committees vacated by former Senator and current Lansing Mayor Virg Bernero. Succeeding Bernero on the Health Policy committee, Local, Urban and State Affairs committee, and the Judiciary committee is Senate Minority Leader Bob Emerson (D-Flint). Sen. Buzz Thomas (D-Detroit) replaces Bernero on the Technology and Energy Committee.

Ehlers Named Committee Chair: U.S. Rep. Vern Ehlers (R-Grand Rapids) was named chair of the House Administration Committee. Mr. Ehlers has been a member of Congress since 1993, and is currently a member of the Science Committee, Transportation and Infrastructure Committee, Education and Workforce Committee, and Administration Committee.

McCotter Seeks House Policy Chair: U.S. Rep. Thaddeus McCotter (R-Livonia) is in the running to become the next chair of the House Policy Committee. Currently, McCotter has secured the support from 30 House GOP members.

ELECTION NEWS

DeVos Names Campaign Chair: GOP Gubernatorial candidate Dick DeVos has named Dominos’ CEO David Brandon Campaign Chair. Brandon’s new role will include oversight of all aspects of the DeVos campaign, including fundraising and political strategy.

60th House District: Kalamazoo County commissioner Brian Johnson has withdrawn his candidacy for the 60th House District to replace term-limited Rep. Alexander Lipsey (D-Kalamazoo).

Evans Considering Run for Attorney General: Wayne County Sheriff Wayne Evans is considering a run for the Democratic nomination for Attorney General. Evans, a long-term employee of the Wayne County Sheriff’s Office, succeeded Wayne County Executive Robert Ficano as sheriff in 2004.

Currently, Rep. Alexander Lipsey (D-Kalamazoo), former Judge Scott Bowen, and attorney Geoffrey Fieger have announced their intent to run for the Democratic nomination.

APPOINTMENTS BY THE GOVERNOR

Governor Granholm Names Verlie Ruffin Children’s Ombudsman

Governor Jennifer M. Granholm today announced the appointment of Verlie M. Ruffin as Michigan’s Children’s Ombudsman.

“Verlie has made it her mission in life to fight for and protect Michigan’s children,” Granholm said. “I am confident her experience, her leadership, and her compassion will reinforce and strengthen the welfare of our children across the state.

Ruffin, 58, of Detroit, has served for twenty years as the associate director of the Michigan Federation for Children and Families. In addition, Ruffin is the board president of Adult Well Being Services, a member of the Advisory Committee on Overrepresentation of Children of Color in Child Welfare, and a member of the Wayne County Children and Youth Collaborative Council, the Michigan Foster Care Review Board Program Advisory Committee, and the State Advisory Committee on Foster Care and Permanency Planning.

Prior to her current position, Ruffin worked at the Child & Family Services Division of Lutheran Social Services of Michigan.

Ruffin is appointed to serve at the pleasure of the Governor. She succeeds Lynne Martinez who has resigned.

The Office of the Children’s Ombudsman is an independent government agency that works to assure the safety and welfare of Michigan children who are in need of foster care, adoption, and protective services. The office independently investigates complaints, advocates for children, and recommends changes to improve law, policy, and practice that benefit children’s welfare.

The appointment is subject to Article V, Section 6 of the Michigan State Constitution of 1963. The appointment stands confirmed unless disapproved by the Senate within 60 days.

(This story was derived from a press release issued on Wednesday, January 18, 2006)

Workers Compensation Board of Magistrates: Kenneth Birch of Holt, succeeding Melody Paige; Garry Goolsby of Lansing, succeeding L’Mell M. Smith; Michael Harris of Okemos, who serves as the current magistrate for the Board, succeeds Michael Theile who has resigned; James Kent of East Lansing, succeeding Crary Grattan; Jan Leventer of Bloomfield Hills, succeeding Mary Brennan; Beatrice Logan of Detroit, succeeding Donna Grit; Victor McCoy of Southfield, succeeding Michael Harris, have all been appointed by Governor Granholm to terms expiring January 26, 2010. John Baril of Lincoln Park, Carol Guyton of Detroit, John Wierzbicki of Huntington Woods, and Richard Zettel of Sterling Heights have been reappointed to terms expiring January 26, 2010. All appointments are subject to Senate approval.