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Michigan Legislative Update: “Lame Duck Session”

Michigan Legislative Update: “Lame Duck Session”

December 4, 2024

Michigan Legislative Update: “Lame Duck Session”

With almost two weeks of “Lame Duck” session behind us, there is little clarity on what might happen. Due to Republicans winning the majority in the State House, Democrats only have until the end of the year with their “trifecta” in which they have control of the legislature and the governor’s office. At this point, Democrat leadership have not declared their priorities for the session, which is puzzling considering there are only 6-7 more session days scheduled. In addition, the House Democrats has been plagued by attendance issues and as they only hold the chamber by one vote, they need all their members in attendance to pass anything without Republican support.

On the whole, this has been good news for NFIB members because allies of the Democrats would love to shove many anti-small business policies before the end of the year.

Below are the main issues that may be in play, but other bills can sometimes pop out of nowhere. The issues below may not move, but NFIB is taking nothing for granted and is tracking every committee and monitoring House and Senate sessions in order to make every effort to stop any bad policies from slipping through.

Paid Sick Leave and Minimum Wage Fixes to Current Law
Bills to address changes to the Earned Sick Time Act (ESTA) (House Bill 6057) and minimum wage (House Bill 6056) were introduced on November 7, 2024. We believe that there is agreement between House Democrats and House and Senate Republicans to move important fixes to the bill, but the Senate Democrats remain uncommitted as to what changes they will agree to or whether they will allow a vote. Due to rules governing the legislative process, these bills will need to move out of the House no later than December 13, 2024, in order to pass this year.

Find out more information on the paid sick leave and minimum wage changes and NFIB’s six-year battle on behalf of small business owners and view compliance webinars HERE. We need EVERY small business owner to send a letter to their legislators – especially those with legislators in the majority, asking for action to lessen the impact of these laws on both small businesses and employees. You can do that HERE.

Unemployment Insurance Increases

House Bill 5827, which would increase weekly benefits from 20 to 26 weeks has passed the State House and is currently in the State Senate. Other legislation is being crafted that would lessen work search requirements and increase the weekly benefit as well as tying it to the Consumer Price Index so it would continue to move upward yearly with inflation.

Sen. John Cherry (D), Chair of the Senate Labor Committee has indicated that action will be taken to increase benefits on the Senate floor. NFIB believes that this bill could have legs in the House.

NFIB has and will continue to oppose any legislation that will increase unemployment insurance taxes.

“Polluter Pays” and Other Environmental Regulations

Senate Bills 605-611 and House Bills 5241-5247, so called “Polluter Pay” legislation would increase clean up regulations, allow for the re-litigation and potential re-opening of previously closed contaminated sites, as well as mandate that new cleanups be at the highest standard technically possible, which will lead to enormous added costs to the re-development of brownfields in the state. Michigan already requires polluters to clean up any environmental hazards and these bills go too far.

There are a variety of other bills being perused by environmental extremists that NFIB will be watching.

Rollback of Workers Compensation Reforms and Expansion

Senate Bills 1079-1080 would roll back reforms to workers compensation made in 2011. The bills redefine the cornerstone definition of disability, erases any distinction of degrees of disability, applies changes retroactively to 1985 allowing for retroactive claims and litigation and guts work search requirements. Small businesses are especially vulnerable to not only higher premiums, but the cost of fighting claims from unscrupulous trial attorneys. These bills are expected to be heard in Senate Labor, but it is unclear whether they will move further. NFIB is opposed to any changes that would weaken the workers compensation reforms from 2011.

MI Secure Retirement Savings Program

House Bill 5461 would create a state-run retirement plan for small businesses who have no plan. NFIB members indicated they oppose a mandatory plan by 87%. An appropriation is included in the 2024-25 budget to fund the staffing for the program. NFIB testified on Thursday, April 18 in the House Labor Committee against the proposal suggesting that, at the very least, the program should be voluntary. See the press release HERE. Take Action and tell your legislators NO to a Mandatory Retirement Scheme.

Consumer Protection Act, Senate Bills 1021-22

Wide ranging changes to the CPA, including no longer exempting government regulated professions and industries from frivolous laws suits. These bills are currently on the Senate floor and may be voted out as soon as the publishing of this article. It is unclear whether the House will choose to take these bills up.

Data Breach Senate Bills 888 – 892

Which among other requirements, would hold small businesses accountable for breaches of third-party vendors (like credit card processers). It also allows for the Attorney General action and penalties.

Price Gouging During a Declared Emergency Senate Bills 954-56

Would prevent businesses from increasing prices during declared emergencies to prevent price gouging. However, as written, the legislation does not take market values into account and would penalize small business owners who raised prices to accordingly.

Expansion of Bottle Deposit Legislation

Senate Bills 1112-1113 expand the 10-cent bottle deposit to bottled water and other non-carbonated beverages. While the bills are receiving a hearing on Thursday, December 5, 2024, we do not anticipate further action. NFIB is opposing these bills and is a part of a larger coalition in opposition.

 

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