Lame Duck 2018 was intense, did small business win or lose?
By any measure, the Michigan lame duck session that ended on Friday, December 28, 2018 was one of the busiest and most contentious in the state’s history. The marathon session in the waning days of the 99th Michigan Legislature included a combined total of 883 roll call votes – 463 roll call votes in the Senate and 420 in the House – and 401 bills passed and sent to the Governor. So how did small business fare when the dust settled? All in all, the session ended well. Several bills championed by NFIB made the final cut and were signed by Governor Snyder. There were also bills being opposed by NFIB that are officially dead as session ended without them moving out of the legislature, although many will be reintroduced in the new session.
Here is a rundown of the lame duck score for small business:
LAME DUCK WINS:
Changes to Paid Sick Leave – Minimum Wage Mandates – PA 368 and 369
The biggest win for small business in the lame duck session, and probably for the entire 2017-2018 session, was pulling an extreme Paid Sick Leave employer mandate and a Minimum Wage hike from the statewide election ballot in 2018. In the last days of session in 2018, NFIB was successful in changing these bad laws to help small business. The changes included an exemption from the paid sick leave mandate for an employer with less than 50 employees. More information on the changes made to the paid sick leave and minimum wage laws can be found HERE.
No State Rules Stricter than Federal – PA 602
For the last two sessions, NFIB has been trying to pass legislation that would put limits on the ability of state agencies to promulgate rules in Michigan that are stricter than existing or recommended federal rules. Although the legislation was passed in the 2015-2016 session, it was vetoed by Governor Snyder. However, the bill was re-introduced, and this time Governor Snyder signed the bill near the end of the lame duck session. Read more HERE.
Wetlands Regulation Reforms – PA 631
While the final bill was weakened as it worked its way to the governor’s desk, it still makes improvements to current state wetland restrictions. These changes clarify parts of the law that have prevented or restricted private property owners from making improvements on their property such as driveways, garages, outbuildings, forest roads, farm roads, etc.
Eliminate Weigh Station Penalties for Certain Vehicles – PA 651
What may seem like minor issues are big issues to the small business owner that runs afoul of an unnecessary and outdated regulation, law, or rule. The governor signed an NFIB supported bill that would change bypassing or failing to stop at a weigh station from a misdemeanor to a civil infraction. More importantly, the bill would also remove “commercial vehicle with other vehicles or trailers in combination” (in other words a pickup truck pulling a small trailer) from the requirement to stop at a weigh station.
Local Meddling in Vocational Training Stopped – PA 441 and PA 493-503
Some local governments view the renewed emphasis on skilled trades education as an opportunity to extract new fees and encourage union membership by setting up their own trade apprenticeship and occupational licensing requirements. These new Public Acts halt the practice by prohibiting locals from establishing such programs.
Stop Unfair Competition from Local Government – PA 327
NFIB supports policies that addresses the problem of unfair government competition with small business. Legislation to protect the private towing and storage industry from unfair competition arising from local governments using taxpayer resources to provide the same service was signed by Governor Snyder. The new law prohibits local governments, law enforcement agencies and universities from operating a motor vehicle storage facility. More information can be viewed HERE.
“Rain Tax” defeated – No PA
Senate Bill 756, sponsored by Republican Marty Knollenberg, would have authorized local governments to impose a “rain tax” to fund municipal sewer projects and maintenance without a local vote. The bill was an attempt to get around a Michigan Supreme Court ruling that such “fees” are taxes and require a local vote. The taxes are based on how much rain falls on a property. In cities, where the tax was attempted, bills were sent to small businesses for thousands of dollars. The bill never made it to the governor’s desk and died at the end of session.
ID Theft Mandate on Small Business Stopped – No PA
Legislation being pushed by banks and credit unions that would hold small business accountable for ID theft over which they have no control was defeated when SB 632 and 633 died in committee.
LAME DUCK LOSSES:
Loser Pays in Rule Disputes – No PA:
Since 2015 NFIB has supported bills that would require a state agency to pay the legal costs of the prevailing party when that state agency loses a lawsuit involving a regulatory issue. Governor Snyder vetoed the bills in the 2015-2016 session. After changes were made, to address the issues put forth in his veto message, the bills were again sent to his desk in the lame duck session. Unfortunately, they were vetoed again. More on the issue HERE.
Prevent Improper Influence in Building Code Development – No PA:
House Bill 5376 would have established a Building Trade Advisory Committee to assist the Department of Licensing and Regulatory Affairs (LARA) in construction code development and changes. This would provide protection against building product manufacturers who try to influence code development to create a market for their products or create barriers to the use of a competitor’s product. A broader advisory committee would have avoided these potential conflicts of interest. The bill died in the Senate. More information can be viewed HERE.
Aligning Michigan Rules on Short Term Health Policies with Federal Changes – No PA
The Trump administration lifted restrictions that Obamacare had placed on short-term health policies (can only be issued for 185 days in any 365-day period and not renewed more than twice overall). Now federal non-ACA compliant short-term policy renewal rules allow policies to be issued for 364 days and renewed up to three times. However, Michigan’s rules were never amended to allow for the expanded federal limits. HB 6538 and SB 1224 would have made Michigan rules consistent with the federal changes and allowed more options for small businesses struggling to find affordable health insurance. The hospitals and Blue Cross opposed the bills and they were never taken up for further action.
Require Public Labor Union Re-certification Every Two Years – No PA
Senate Bill 1260 would require government employee labor unions to be re-certified by a secret ballot majority of the employee-members at least once every two years. Currently most public employee labor unions have a virtual monopoly on representing workers who never voted for their representation since the first vote decades earlier. Regular union re-certification would give workers a meaningful voice in their representation rather than just “inheriting” whatever labor union was there when they were hired. The bill died in the Senate.
