Michigan Year End Legislative Wrap Up

December 14, 2023

With Democrats controlling both the legislature and the governor’s office, NFIB was on defense against an onslaught of anti-small business bills.

Michigan Year End Legislative Wrap Up

The Legislature adjourned on Thursday, November 9, 2023, much earlier than normal. This is a welcome relief for small business owners knowing that no further negative action will be taking place in the state capitol by the current legislative majorities and Governor. With Democrats controlling both the legislature and the governor’s office, NFIB was on defense against an onslaught of anti-small business bills all year. NFIB Michigan engaged on 85 bills, including testifying in committee via letter or in person 39 times. In addition, NFIB staff met with over two-thirds of serving legislators from both sides of the aisle. Even though we were not able to entirely stop some anti-small business legislation from happening, because of efforts by NFIB to educate legislators on the negative impacts of certain policies, we were able to stop or slow certain pieces of legislation elimination of 1099 employees and paid family leave. This fall, legislative action focused on energy and environmental issues, although many other bills affecting small business were in discussion behind the scenes. <<<<<Click HERE to let us know you are willing to help!>>>>> Elimination of State Environmental Permitting and Rules Oversight In 2018, NFIB supported legislation that created three boards to oversee the department responsible for environmental regulations and permitting (currently, the Department of Environment, Great Lakes, and Energy.) The Environmental Science Advisory Board, Environmental Permit Review Commission and Environmental Rules Committee were designed to include all stakeholders from small business owners to environmentalists. The goal was to provide oversight over civil servants and the administration to achieve fair and balanced rules and permitting, no matter which party was in control. Senate Bills 393 & 394 passed the Senate and House Bill 4826 passed the House, both along party lines. “Clean Energy” by 2040 Sweeping and potentially dangerous energy legislation was passed by one vote, along party lines, in both the House and Senate during the waning days of session in November. This legislation would require utilities’ energy portfolios to be 100% carbon neutral by 2040. Natural gas is considered clean energy only if the utility is able to capture 90% of the carbon emissions. NFIB raised concerns about both cost and reliability citing the American Society of Civil Engineers (ASCE), who gave Michigan’s energy grid a D, citing the continuing increase in reliability issues since 2018. NFIB aggressively opposed the bills in this package and will continue to work on ways to mitigate its damage to small business. Clean Energy by 2040 (Public Act 235 of 2023) SB 271 requires all electric providers to achieve a clean energy portfolio of 80% by 2035 and 100% by 2040, which also requires that by 2035, 60% of portfolio must be renewable energy. Natural gas is considered clean energy only if the utility is able to capture 90% of the carbon emissions. It is estimated that this transition could cost up to $200 Billion. Community and Worker Economic Transition Office (Public Act 232 of 2023) Senate Bill 519 would establish the Community and Worker Economic Transition Office, within the Department of Labor and Economic Opportunity. This office would help communities and workers, mostly those union employees who would get displaced due to electric vehicles. NFIB was particularly offended by this legislation in light of little or no help or consideration given to small business employees when Governor Whitmer shut down the state during the pandemic. In fact, NFIB was the only business group to oppose this bill during the committee process. Wind and Solar Siting Authority (Public Act 233 of 2023) House Bill 5120 would give the Michigan Public Service Commission (MPSC) authority over siting of wind projects, solar and battery storage projects. This bill will preempt local government zoning laws allowing override from the state government. NFIB opposed this bill because it contained provisions requiring prevailing wage and community benefit/project labor agreements on any building project. EARLIER THIS YEAR Previously outlined in Michigan Mid-Year Update, the following NFIB opposed bills were signed into law earlier this year. Click HERE for more details on each bill. · Reinstatement of Prevailing Wage (Public Act 10 of 2023) · Repeal of Right to Work (Public Acts 8 & 9 of 2023) · Removing Safeguards over Administrative Rules (Public Act 104 of 2023) · Michigan Fiscal Year Budget 2023-24 (Public Acts 103 & 119 of 2023) NFIB did score one win earlier this year with that legislation preventing treasury from taxing delivery and installation. (Public Acts 20 & 21 of 2023). As we close out a tough year, NFIB Michigan is grateful for its members and want you to know we will continue fighting for you – but your help is crucial! It is important to remember that all of these bills and many others that affect Michiganders have only passed by ONE vote! We can make a difference in 2024. <<<<<Click HERE to let us know you are willing to help!>>>>>

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