KEY
LEGISLATION:
Senate
Approves Minimum Wage Increase
In a somewhat surprising move, the Republican-controlled Senate approved
legislation to increase the minimum wage in Michigan. Senate Bill 318,
sponsored by Sen. Ray Basham (D-Taylor), was discharged from committee
and
acted on simultaneously. As passed, the bill would raise the minimum
wage to:
– $6.95 by October 1, 2006;
– $7.15 by July 1, 2007; and
– $7.40 by July 1, 2008.
The Republicans were reacting to a ballot proposal initiated by Democrats
and organized labor that seeks to increase the minimum wage and was
extremely likely to win voter approval. Business groups view the
Republicans’ legislative proposal as preferable, because it is
not a
constitutional amendment and does not include indexing for inflation
every year.
The Senate took the bill up Thursday, with no advance notice to the
minority
party, in order to pass the bill over to the House for action there
this
Tuesday and still be in compliance with the five-day layover rule. It
is
highly likely the House will pass the bill Tuesday and attempt to prevent
Democratic amendments, such as indexing, from being placed on the bill.
Governor Jennifer Granholm will probably sign the bill when it reaches
her
desk. She has commented, however, that she will continue to support
the
ballot proposal.
SBT Repeal in
the Works
Legislation to repeal the state’s Single Business Tax (SBT) in
the fall of
2007 was approved in committee by House Republicans. HB 5743, part of
the
GOP’s “Rescue Michigan Initiative,” passed from the House
Tax Policy
Committee on a 10-7 party-line vote.
The plan simply repeals the SBT and does not replace it with a plan
to make
up the approximately $1.8 billion in revenue that would be lost from
the
change. Gov. Granholm has repeatedly said she would veto such a move
and,
assuming she does, the GOP would then move ahead with its voter initiative
to repeal the tax on the same timetable. That would return the SBT repeal
to
the legislature in a veto-proof form.
Republican leaders, including Oakland County Executive L. Brooks Patterson,
are behind the measure, with Patterson heading up the voter initiative
effort. They hope to see the repeal bill move and force the governor’s
hand
in negotiating a replacement to the much-criticized tax. Democrats contend
that the repeal is half a plan and is merely putting off the responsibility
of replacing the tax.
The bill could move in the House as early as Tuesday. Senate Majority
Leader
Sikkema favors such a move, but would like to take a closer look at
the bill
in the Senate before taking a firm position on it.
Granholm Vetoes
Youth Employment Bill
As expected, Gov. Granholm vetoed Senate Bill 179, legislation attempting
to
clarify the number of hours students under 18 can work during the school
year. Current law states that a student cannot have more than 48 hours
a
week of combined school instruction and work.
With different school districts having different hours of instruction,
businesses that employ teens have found it difficult to keep track of
allowed hours for each employee. SB 179 said a youth could not work
more
than 20 hours per week. Granholm vetoed similar legislation last session
allowing youths to work 22 hours per week.
Wellness Legislation Moves from Committee
The Senate Health Policy Committee moved two bills that encourage healthy
behavior through mitigated health care costs. Under Senate Bills 848
and
849, an insurer would be allowed to offer wellness coverage to encourage
employees to stay healthy. The coverage could provide a premium rebate
or a
reduction in co-payments, co-insurance or deductibles. The bills now
move to
the Senate floor.
KEY BILL INTRODUCTIONS:
No new key bill introductions to report
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