SUPREME COURT ALLOWS 4.25% INCOME TAX RATE TO STAND
Michigan’s personal income tax will remain at 4.25 percent after the Supreme Court unanimously decided not to hear an appeal from business groups, Republican legislators and others that the rate should have fallen to 4.05 percent under a 2015 law.

As part of the 2015 road funding package, which included tax and fee increases, Republican legislators included a provision that would reduce the income tax should revenue growth exceed economic growth. In the early 2020s, thanks to the COVID revenue surge, that threshold was hit, and the income tax rate was reduced for 2023 to 4.05 percent.

But the administration of Governor Gretchen Whitmer determined that the language meant the decline was for one year only and raised the rate back to 4.25 percent for 2024. A coalition of groups, including the Associated Builders and Contractors and the National Federation of Independent Businesses, sued. Republican legislators joined them, calling the interpretation at odds with the intent of the law to keep the rate at 4.05 percent.

Former Governor Rick Snyder, who signed the bill with the trigger, also called the Whitmer administration’s actions incorrect.

But in March, a unanimous Court of Appeals held the Department of Treasury, with guidance from Attorney General Dana Nessel, was correct (See Gongwer Michigan Report, March 7, 2024). That ruling even included Chief Judge Michael Gadola, who was once Snyder’s legal counsel (not at the time the law in question was signed).

Although the Supreme Court has a 4-3 majority of justices nominated by the Democratic Party to justices nominated by the Republican Party, none of the Republicans dissented from the brief order in Associated Builders and Contractors of Michigan v. State Treasurer (SC Docket No. 166871). The order said only that the court was denying the application for leave to appeal the Court of Appeals ruling because it was not persuaded the questions presented should be reviewed.

Shane Hernandez, president of ABC, called the ruling another burden for contractors facing high costs. And Amanda Fisher, Michigan state director for the NFIB, said it’s unfortunate the court overrode "what was and is clearly the purview of the Legislature."

The Mackinac Center for Public Policy brought the lawsuit on behalf of several plaintiffs.

"Taxpayers just lost $700 million a year without a single vote in the Legislature," said Patrick J. Wright, vice president for legal affairs at the Mackinac Center, in a statement. "This case is a reminder that the Legislature must be extremely precise in order to avoid a misguided interpretation of the law by a future administration opposed to its original goals."

ALBERT PROPOSES KEEPING EXISTING MINIMUM WAGE, SICK LEAVE IN PLACE
A Republican senator plans to introduce legislation when lawmakers return that would keep the state’s existing laws in place regarding the tipped wage credit, minimum wage and paid sick leave, a move he said would prevent major negative effects within the hospitality sector and small businesses.

Democratic legislative leadership is still weighing whether any changes might be considered, if any, to two voter-initiated laws that were reinstated last month by a Supreme Court ruling that would increase the minimum wage and require employers to provide paid sick leave.

Under the July ruling, the tip credit will be completely phased out to the full minimum wage by February 2029 while the minimum wage would be $12 per hour plus the inflationary adjustments made by the state in February 2028. Mandated paid sick time for workers is also enacted under the ruling.

Sen. Thomas Albert (R-Lowell) plans to introduce SB 991 and SB 992 , which would keep the state’s tipped wage credit at 38 percent of the minimum wage, allow for the minimum wage to rise to $12.05 per hour by 2030, and maintain the exemption for businesses with fewer than 50 employees from having to provide mandatory paid sick leave.

Albert announced his proposal August 22, saying in a statement the court ruling would shutter a large number of Michigan businesses and lead to higher prices, arguments business groups and Republicans have been making since the high court’s ruling.

"This legislation puts forward a workable solution by keeping current laws in place – steadily and sustainably raising the minimum wage while protecting jobs in the restaurant industry and other small businesses," Albert said. "If Democrats have a viable alternative, they should present it sooner rather than later."

When the Supreme Court decision was issued July 31, Senate Majority Leader Winnie Brinks (D-Grand Rapids) said the caucus’ legal team would review the decision.

"Here’s what I know to be true: the Legislature has a responsibility to uphold the will of the people," Brinks said at the time. "Additionally, the people of Michigan deserve clarity. The then-Republican majority made a deceitful bait-and-switch on the very people they were sworn to serve, and this lengthy battle was caused by their tactics."

What the Democratic-controlled Legislature might do, if anything, on the tip credit or any part of the laws in the wake of the ruling is still unclear. Legislative leadership has largely been silent on the issue since the high court’s decision.

A spokesperson for Brinks said Thursday in response to a request for comment from Gongwer News Service that there was no update from the majority leader as to where the caucus is at in response to the ruling.

ADVOCATES ASK LAWMAKERS TO GIVE SECOND LOOK BILLS ANOTHER CHANCE
As Michigan continues to face severe staffing shortages within the Department of Corrections, advocates are pointing to "second look" legislation to ease the burden.

The bill package includes HB 4556 , HB 4557 , HB 4558 , HB 4559 , and HB 4560 , and, as written, would allow those incarcerated to receive a "second look" at their prison sentences after 10 years served.

Although the bills received testimony in the House Criminal Justice Committee in March, they’ve lost momentum.

"People need to stop being afraid of their own shadow, quite frankly," said Alexandra Bailey from The Sentencing Project. "Other states, more conservative states, have passed this legislation. I think people are still afraid of the tough on crime narrative, and that’s getting a bit old. You’re harming people, including your own government staff, in the process. At some point, we just kind of need to knock it off and start doing something that makes sense."

The legislation doesn’t guarantee anyone is released from the corrections system, it just makes it a possibility, especially for those who are elderly or sick, Bailey said.

"These are people that we know from a criminological standpoint have very little threat of recidivism. And we’re not even asking for a guarantee of release," she said. "We’re just asking that the system take a look at who might be good to reduce the strain on the system overall."

Negotiations on the legislation have continued, said Rep. Kara Hope (D-Holt), who is the chair of the House Criminal Justice Committee and one of the bill sponsors. Several changes have been made to the bills, including increasing the timeline from 10 to 20 years, but given the crunch of an election year, Hope said she’s not optimistic that there will be the time or the political will to get the legislation across the finish line.

"Obviously it pains me to say it," she said. "But I think the bills got farther, maybe, than anyone was expecting."

But that doesn’t mean she’s giving up on the legislation, Hope said. Criminal justice reform is important, she said, especially as it relates to sentencing and how it affects people of color.

When it comes to Department of Corrections staffing shortage, Hope said a multifaceted solution was needed, and that second look legislation should be part of the conversation.

"It’s important," she said.

Hope said second look legislation would also ease the burden on corrections officers and their families by reducing the overall prison population. She said grew up with corrections officers in her family, so she’s aware of how hard the long hours can be for not only officers but their loved ones.

"My heart goes out to them," she said.

The staffing shortage only increases the immediate need for the legislation, Bailey said, noting the Michigan Corrections Organization request of Governor Gretchen Whitmer to call out the National Guard to help (See Gongwer Michigan Report, July 3, 2024). Whitmer has not responded to that request.

The second look legislation would affect people who are domestic violence victims who have been incarcerated, too, Bailey said.

"I have a friend right now, who we’re trying to get her a commutation. She got stabbed in her pregnant stomach by her ex-husband," she said. "I think most women in Michigan, when I tell them this … they go ‘she should have gotten the key to the city.’"

The legislation has come under heavy criticism from law enforcement, Republicans and some Democrats as policy that would upend judicial sentences and sentencing guidelines designed to make the punishment fit the crime.

"I understand why attorneys general and folks like that are uncomfortable with this type of legislation," Bailey said. "It does unearth decisions that they system has made."

Time may be running short this term, but no one who supports the legislation is giving up, Bailey said.

"We’ll see you next year, and the year after that and the year after that, and every year until it’s passed," she said.

DCD OUT AND ABOUT:

Senator Mat Dunaskiss was happy to join DMAN Founder & Chairman Ziad Kassab at the Woodward Dream Cruise where he helped wheelchair-bound individuals to ride in convertibles at Detroit’s annual car themed event.

Jake German was happy to be out supporting State Representative Tom Kuhn at his recent fundraiser. Tom does great work on behalf of his constituents in the 57th District, including working with Common Ground CEO Heather Rae to secure state funding for virtual behavioral health services in Oakland County.

ARTICLES OF POLITICAL INTEREST:

Michigan Plots ‘Drone Zone’ To Test Package Delivery Tech of the Future

For Michigan Teens in Mental Health Crisis, Music Therapy Can Strike A Cord

Mike Rogers Strength Makes Michigan a Top GOP Senate Target

Inflation, Kamala Harris, Elissa Slotkin, Mike Rogers, and the Michigan Legislature, Oh My!

Political Divide Between Michigan Families and Relationships

Marijuana News, Updates, & Articles of Interest

THE DCD MARIJUANA TEAM:  YOUR COMPETITIVE EDGE!

DCD continues to exist as the premier resource helping municipalities navigate the waters of cannabis policy. We would be more than happy to answer any questions you may have regarding medical or recreational cannabis policy, procedure, and more. DCD is available for presentations to municipal boards, for one-on-one meetings, and for consultations.

We are here to help you with: municipal lobbying, license application writing and assistance, business plans, state required operations manuals and compliance, facility design, corporate structure, and design and branding. 

We are experts in both medical and recreational cannabis policy and have been in the space for over ten years.  We welcome any opportunity to work with you in the future!

ARTICLES OF CANNABIS INTEREST:

As Medical Marijuana Shrinks, Michigan Mulls ‘Clean Merge’ with Recreational 

Decision on Major Marijuana Policy Shift Won’t Come Until After Election

Michigan Switching to Surprise State Inspections for Cannabis Businesses

Michigan Marijuana Price Hit A Record Low in July.  Why?

Marijuana Is Too Strong Now

DCD is rebranding, and our bottom line is your bottom line. We are striving to create and foster strong relationships with clients and lawmakers, deliver results with strong ethics and class, but above all else, out-hustle and out-smart our competition every day to be the very best. We’re making chess moves while others are playing checkers. Everything we do is with you in mind, we’re doing things we’ve never done before and aggressively pursuing opportunities. The time is now. DCD has taken our firm to the next level and your involvement and investment paired with our knowledge and expertise is going to launch the great state of Michigan forward.

MICHIGAN EYEING $15 FOR ALL WORKERS BY 2030
Michigan’s $10.33-an-hour minimum wage will increase from around $12.25 to $12.30 an hour and tipped workers will see their base wage go up from $3.93 an hour to around $5.90 an hour by Feb. 21, 2025, under a Supreme Court ruling today.

The tipped wage will be phased out over five years. By 2030, all employees should be around a $15-an-hour minimum wage, based on calculations made from the Supreme Court decision.

In ruling that the Legislature doesn’t have the constitutional authority to adopt the One Fair Wage ballot initiative and then immediately amend it, the Supreme Court laid out an implementation schedule that mirrors what framers of the 2018 initiative had in mind, adjusted for inflation.

The framers envisioned a $10 minimum wage going into effect 205 days from its adoption. Likewise, 205 days from the decision in Mothering Justice v. Attorney General is Feb. 21, 2025. A $10 minimum wage today is $12.29, according to an online inflation calculator used by MIRS. The inflation rate used to officially set the wage will be calculated by the Department of Treasury, which is still reviewing the decision, according to a spokesperson.

The tipped wage in the first year of the One Fair Wage initiative was 48% of the minimum wage. This percentage will gradually increase until it’s 100 percent by 2030. That puts the tipped workers at about $5.90 an hour in 2025, about $7.85 an hour in 2026 and onward until about $15 in 2030.

The above numbers are rough estimates. The Department of Labor and Economic Opportunity (LEO) and the state Treasurer are working together to calculate the official inflationary adjustments to the minimum wage, which will be released at a later time.

“We are committed to collaborating with the labor and business communities on educational outreach to ensure a thorough understanding and smooth implementation of the court’s ruling,” said LEO spokesperson Jason Moon.

Likewise, the new paid sick leave policy – which allows all employees one hour of paid sick leave time for every 30 hours worked – will go into effect 205 days from the court ruling, which is Feb. 21, 2025. Under the new policy, an employee can use up to 72 hours or about nine eight-hour days of paid sick leave a year.

“This is a great day for the more than 494,000 workers in Michigan who are getting a raise," said One Fair Wage President Saru Jayaraman. "We have finally prevailed over the corporate interests who tried everything they could to prevent all workers, including restaurant workers, from being paid a full, fair wage with tips on top.”

Jayaraman said that the ruling means Michigan will be the eighth state, and the first east of the Mississippi River, to end the separate tipped wage for workers and the first state in more than 40 years.

“It’s clear tipped workers don’t just need a tax exemption – they need living wages with tips on top,” he said.

One Fair Wage was scheduled to hold a celebratory event this afternoon in Detroit.

The culture change away from tipped wages will be “devastating” to restaurants and other establishments that rely on tipped workers, said Wendy Block, senior vice president of advocacy for the Michigan Chamber of Commerce.

“We should expect nothing less than the closure of restaurants across Michigan and a reduction in workforce,” she said.

Likewise, the new “one size fits all” earned sick leave policy is not likely to work out in employees’ favor, she said. By creating a separate sick leave policy, businesses will be saddled with a “costly and administrative burden”

“It’s hard to imagine how businesses big and small will make these changes without cutting back drastically elsewhere,” Block said.

A coalition of tipped workers called Save MI Tips reported that 2,900 jobs were lost in Washington D.C. in the year after the tip credit was eliminated there. They are estimating 45,000 Michigan servers and other employees will lose their jobs as a result of this decision.

The Michigan Retailers Association said the 205 days gives the legislature time to make the “necessary updates to some of the most egregious components of the law.”

Tom Lenard, Michigan Director for the State Innovation Exchange and member of the MI Time to Care Coalition, said in response: “Every worker in Michigan benefits when they have access to paid sick days and higher wages. What we’ve seen in state after state is that these types of policies support families and the economy. Scare tactics by corporate business lobbyists should be called out for what they are – weird, weak, and wrong.”

FAR RIGHT REPS FACING PRIMARY CHALLENGES TODAY.  WILL THEY PREVAIL?
Primary opponents came out swinging for ultra-conservative members of the House Republican caucus this election cycle, but it remains to be seen if any of them will oust the incumbents they’ve spoken out loudly against.

One of the closest races is in the 107th House District, where Parker Fairbairn of Harbor Springs is challenging Rep. Neil Friske (R-Charlevoix). Fairbairn has spent more than $120,000, and Republican insiders speaking on background said the race is neck-and-neck (See Gongwer Michigan Report, July 30, 2024).

Both candidates are familiar with each other having run in a hotly contested primary two years ago, but the key difference in 2024 is it’s a one-on-one race.

"My name recognition is quite good in the district," Fairbairn told Gongwer in an interview last month. "We’re in the perfect position we want to be in, so we’re just going to keep the hammer down."

One Republican consultant speaking on background said that although Friske might squeak through the primary, he would end up with an equally competitive general election on his hands, even though the district is typically a safe Republican seat. It’s not an overwhelmingly Republican seat, but a Democrat has not won it since 2008.

Another well-known and controversial member of the House’s right-wing is Rep. Matt Maddock (R-Milford), who represents the 51st District.

His primary opponent, Kevin Ziegler, has attacked Maddock for being too extreme and being more concerned with national, sensationalized issues than with local issues (See Gongwer Michigan Report, May 3, 2024).

Ziegler outspent Maddock in the lead up to the primary, but he also reported having a negative cash balance heading into the primary after raising $11,178 and spending $19,440. He also reported providing $15,000 of his own funds to his race.

He was also endorsed by The Detroit News and the Michigan Regional Council of Carpenters and Millwrights, but people within the district said that they’ve seen very little from him in terms of mail or door-to-door campaigning.

Maddock reported raising $3,455 and spending $16,600, leaving him with $47,278 on hand.

Republican insiders speaking on background said that Maddock will likely come through the primary comfortably because he’s well-known and well-established in the politics of the area.

"Matt is a known quantity to these people," one source said. "He’s also a known fighter."

Maddock, not surprisingly, agreed.

"Campaign is going great," he said. "Tons of people have already voted, and the best thing is hearing they’re voting for me because the Free Press and Detroit News told them not to."

Similarly, Rep. Josh Schriver (R-Oxford) may have less of a race on his hands in the 66th District than what people may have predicted earlier this year, though one source said his challenger, Randy Levasseur, who has received endorsements, may pull some votes away.

Still, another source said that Schriver has been doing everything he should to campaign, hitting the doors hard. Schriver, according to one source, has knocked more doors than any other Republican using the Oakland County GOP database.

In the 36th House District, Rep. Steve Carra (R-Three Rivers) is facing a two-way primary challenge (See Gongwer Michigan Report, May 3, 2024).

Michael Malmborg and Sturgis Mayor Frank Perez, who are running against Carra, said they were running against him because he wasn’t serving on any committees in Lansing and wasn’t getting anything done.

"People are starting to realize that being so divisive and so hateful toward one another is not actually moving our country forward. It’s not moving our state forward, and really pushing through policies that are going to be effective and make a change in people’s lives," Malmborg told Gongwer in an interview earlier this year. "You don’t want to compromise everything, but you have to understand that it can’t be my way or the highway in order to move legislation forward."

The two-way primary may help Carra though, as voters who may not support his approach to Lansing will be divided into two separate camps, Republicans with knowledge of the race said. This is what happened in the 2020 and 2022 Republican primaries.

The conservative wing of the House GOP caucus seems to be sticking together, too, with a digital ad for Friske dropped Friday that includes appearances from Maddock and Carra.

"Representative Neil Friske is one of the few people who has stood behind what he said he was going to do," Carra said in the ad. "We need to have more people like him in Lansing."

Maddock and Schriver also are getting outside support from the Make Liberty Win PAC.

Although there are many people who don’t like these officials or who believe they’re ineffective, that doesn’t mean they won’t be elected, a source knowledgeable of the races said.

"There’s a reason these people got elected in the first place," the source said. "The ultra-conservative, right-wing brand plays in the district."

NESSEL SIGNS BILL THAT BANS LONG TERM BROKER CONTRACTS
With the Governor, Lieutenant Governor and Secretary of State all out of state, Attorney General Dana Nessel was tapped today to sign a bill, SB 602, that bans real estate brokers from locking a homeowner into a contract obligating them to list their home with them for longer than two years. A broker who does it anyway could lose their license and face up a $10,000 fine.

The Michigan Realtors, Zillow and Department of Licensing and Regulator Affairs supported the Sen. Kevin Hertel (D-St. Clair Shores) bill after some homeowners complained about being locked into agreements with a broker that lasted for decades and required them to pay excessive cancelation fees to get rid of the lien on their home.

DCD OUT AND ABOUT:

It’s been a busy Summer at DCD!  Senator Mat and Jake German have been very busy during the legislative break, whether it be addressing client groups in preparation for policy issues we anticipate moving in the Fall, working with various candidates on campaigns, or having strategic meetings with national leaders, DCD is constantly working on behalf of our clients!  Thank you for the continued opportunity to serve you!

ARTICLES OF POLITICAL INTEREST:

Big Bucks Fuel Battle for Michigan House.  See Top Donors to Dems, GOP

Pump Prices Could Drop in Michigan After EPA Lifts Summer Gasoline Mandate

Thousands of Michigan Voters May Not Vote in Michigan’s Primary Today.  Here’s Why.

Musk Backed PAC Under Investigation in Michigan

Michigan Primary 2024:  Voter Guide, Everything to Know

Marijuana News, Updates, & Articles of Interest

THE DCD MARIJUANA TEAM:  YOUR COMPETITIVE EDGE!

DCD continues to exist as the premier resource helping municipalities navigate the waters of cannabis policy. We would be more than happy to answer any questions you may have regarding medical or recreational cannabis policy, procedure, and more. DCD is available for presentations to municipal boards, for one-on-one meetings, and for consultations.

We are here to help you with: municipal lobbying, license application writing and assistance, business plans, state required operations manuals and compliance, facility design, corporate structure, and design and branding. 

We are experts in both medical and recreational cannabis policy and have been in the space for over ten years.  We welcome any opportunity to work with you in the future!

ARTICLES OF CANNABIS INTEREST:

Michigan Cannabis Operator Charged with Importing Illegal THCA

State Strikes at Marijuana Processor in First Big Crackdown on Out-of-State Hemp

Travelling with Cannabis Purchased in Michigan?  What to Know Before You Go!

FDA Deprives Michigan Veterans of Research on Medical Cannabis

Michigan Based Dispensary Opens First Connecticut Dispensary in Canton

DCD is rebranding, and our bottom line is your bottom line. We are striving to create and foster strong relationships with clients and lawmakers, deliver results with strong ethics and class, but above all else, out-hustle and out-smart our competition every day to be the very best. We’re making chess moves while others are playing checkers. Everything we do is with you in mind, we’re doing things we’ve never done before and aggressively pursuing opportunities. The time is now. DCD has taken our firm to the next level and your involvement and investment paired with our knowledge and expertise is going to launch the great state of Michigan forward.

MANY GROUPS HAPPY WITH FINAL BUDGET
After the recent passage of the 2024-25 fiscal year budget, advocacy groups, agencies, and organizations mostly praised the spending plan.

Monique Stanton, president and CEO of the Michigan League of Public Policy, said in a statement the budget agreement is "big and broad," but what the organization is celebrating the most is the changes to the cash assistance program, making the first "meaningful improvements" to the Family Independence Program since 2008.

Stanton said the organization will continue to advocate for ongoing improvements outside the budget to "counteract the years of disinvestment."

Stanton said in the statement the budget will help one in five Michigan children and 13 percent of Michigan households living below the poverty line.

"This budget invests in things these households need – like better access to healthy foods, health insurance for kids and parents, and support for child care – is critical to boosting outcomes for Michigan kids and families," Stanton said in a statement.

A key proposal from Governor Gretchen Whitmer that made it into the final plan, the "community college guarantee" was praised by the Michigan Community College Association.

MCCA President Brandy Johnson said the final budget’s inclusion of free tuition for Michigan students heading to community college was "the very best of each proposal," between the executive, House and Senate.

"We’re very grateful to each legislator who worked to understand the potential impact of the Community College Guarantee and ensured this tuition-free path for in-district students, a capped last dollar award for those not eligible for in-district tuition, and an additional $1,000 for students who qualify for the federal Pell Grant to cover non-tuition costs of attendance like textbooks and transportation," Johnson said in a statement.

Johnson also said she is hopeful for further conversations on increased costs for community college operations and infrastructure in the fall.

The Michigan Gaming Control Board  received $1.9 million to add staff for regulatory operations in internet gaming and sports betting to enhance protections against legal activity.

"I extend my deepest gratitude to Governor Whitmer and the Legislature for their commitment to enhancing the Michigan Gaming Control Board’s operations with their support of additional FTE positions, underscoring their dedication to strengthening the agency and it’s regulatory efforts," Henry Williams, executive director of the board, said in a statement.

The board’s Compulsive Gambling Prevention Fund and its programs will also receive $3 million to expand the 24/7 Gambling Disorder Helpline as part of the DHHS and support research on gambling addictions while another $3 million for the "Don’t Regret the Bet" responsible gaming messaging campaign.

"Together, we are safeguarding the integrity of the industry while prioritizing the well-being of Michigan citizens," Williams said in a statement.

Michigan Health and Hospital Association released a statement saying the budget "champions crucial health care funding" while also protecting healthcare services.

Brian Peters, CEO of the association, said in a statement that the funding pools that support rural access to hospitals, obstetrical services, the Healthy Michigan plan, a health coverage plan for certain Michiganders, and Michigan’s Medicaid populations will "maintain access to care for underserved populations" across the state.

Peters also applauded the new funding for recovery coaches in hospitals to expand substance use disorder services.

"These individuals are specifically trained to provide advanced peer recovery support services and are proven to help patients overcome obstacles in their substance use disorder recovery," Peters said in a statement. "Michigan joins the more than 38 other states in supporting this model of providing needed care."

The Michigan Hospitality and Tourism Alliance said in a statement that the organization was appreciative of the doubling of the funding to the Pure Michigan campaigns to $30 million in the coming year.

"Pure Michigan is one of the few investments that has a direct positive impact on large and small cities alike," Trevor Tkach, vice president of the alliance and president and CEO of Traverse City Tourism, said in the statement. "It helps local businesses thrive and keeps Michiganders fully employed."

The statement thanked the Michigan Hospitality and Tourism caucus, Sen. John Damoose (R-Harbor Springs) and Sen. Kevin Hertel (D-Saint Clair Shores) as well as Rep. Will Snyder (D-Muskegon) and Rep. Nancy De Boer (R-Holland).

The statement said the funding, now at "appropriate levels," is overdue.

"We are ecstatic that the Michigan Legislature has taken the lead to move funding for the highly successful Pure Michigan campaign back toward the level fitting of the travel and tourism industry’s impact on this great state," John Lindley, treasurer of the Michigan Hospitality & Tourism Alliance and president and CEO of the Michigan Association of Recreation Vehicles and Campgrounds, said in the statement.

The American Cancer Society Cancer Action Network applauded the increase in the budget to fund programs addressing tobacco use, but also called for more.

"Michigan is tied for last place in funding tobacco prevention and programs that help people quit tobacco," Molly Medenblik, government relations director for the network, said in a statement. "The American Cancer Society Cancer Action Network is thankful for the increase in the budget, but more must be done to reduce the toll of tobacco in our state."

Medenblik said investing in more measures to combat the $308.4 million per year tobacco companies are spending on advertisement is needed to push back against big tobacco.

"If we want Michigan to be a healthier and less cancer-stricken state, we must do better," Medenblik said in a statement. "ACS CAN looks forward to continuing to work with the governor and lawmakers to take substantial steps forward."

DIVIDED SENATE VOTES TO RESTORE EGLE RULEMAKING REVOKED IN 2000s
The Department of Environment, Great Lakes and Energy moved one step closer to being able to make administrative rules governing water resources protection for the first time in nearly two decades after legislation was voted on Wednesday in the Senate to make the change.

In a 20-18 vote along party lines, the Senate passed SB 663 , which would delete a provision of the Natural Resources and Environmental Protection Act banning the department from promulgating rules to carry out its duties under Part 31 of the act.

As currently written the department may promulgate rules it deems necessary for carrying out its duties. The act prohibits EGLE from promulgating any further rules under Part 31, the Water Resources Protection, after December 31, 2006. Rules promulgated before January 1, 2007, have and will remain in effect unless rescinded. The bill would delete these provisions.

"These restrictions have put the state of Michigan in jeopardy of losing some of its delegated authority to manage its waters due to falling out of line with federal requirements," bill sponsor Sen. Sue Shink (D-Northfield Township) said. "By passing this bill, EGLE will regain authority to make rules that protect the public from harmful chemicals released into our waterways and that find their way into our drinking water, our wildlife and into our own bodies, where they can cause serious consequences for our health."

If signed into law, EGLE would be able to promulgate additional rules or updates to existing regulations including the federal Clean Water Act implementation, permitting, spill prevention, and notification and containment.

Sen. Ed McBroom (R-Vulcan) rose in opposition, questioning what residents or businesses have asked for additional rules and regulations by the state.

"Who here seriously believes that somehow the department is lacking in power, that any of our administrative departments are lacking power?" McBroom said.

He said the department has a long history of clamping down on local businesses and homeowners over very specific regulations.

"Why did we even run for office if we’re not willing to do our own jobs and legislate when necessary?" McBroom said. "Why give up the power to the administrative state?"

Sen. Jeff Irwin (D-Ann Arbor) countered that there have been examples of excesses by departments in the past. However, he said the department needs the ability to be flexible when necessary in quickly responding to an environmental issue.

"Sometimes the Legislature isn’t quick to act," Irwin said. "Sometimes there are powerful forces that prevent the Legislature from acting."

He used the example of the administration of former Governor William Milliken’s administration working to preserve Lake Erie in the 1970s from extreme pollution.

McBroom in response said the department is not without opportunities, including emergency rulemaking powers to address such situations.

Another bill that passed 20-18 along party lines was SB 740 , which would set the jobsite ratio for electrical journeymen to registered apprentices from one to three to one to two. It would also require a jobsite ratio of one master plumber to not more than two apprentices.

Other legislation passed Wednesday with bipartisan support.

Passing 34-4 was SB 688 , which would enable researchers to submit research requests for juvenile records to the State Court Administrative Office or an individual court. If approved, the parties would be able to negotiate date use agreements for the information provided.

Under current statute access to the data is prohibited due to the minor status of the case subjects. The data would be exempt from the Freedom of Information Act under the bill.

Legislation that would modify the definitions relating to brands and brand extensions for certain alcoholic beverages (SB 868 ) passed 37-1. Legislation that would ease inspections on barbershops and barber colleges saw wide bipartisan support (HB 4647 ) also passed 37-1.

LAWMAKERS EYE CONSOLIDATION OF MEDICAL, RECREATIONAL MARIJUANA
Lawmakers on both sides of the aisle think it’s time to modernize Michigan’s marijuana industry and bring the medical and recreational systems under the same regulatory umbrella.

Last week, Rep. Graham Filler (R-Duplain Township) and Rep. Jimmie Wilson Jr. (D-Ypsilanti) introduced HB 5884 and HB 5885  to merge regulations for recreational adult-use and medical marijuana into the Michigan Regulation and Taxation of Marihuana Act and repeal the older medical marijuana law.

"It’s the same cannabis. It’s going through the same process," Filler said, "But they run on different tracks, which is just an additional licensing fee. It’s an additional regulatory structure built into CRA. I mean, there’s a whole division there – why do we need that?"

Currently, marijuana licensees in Michigan are regulated under two different state laws: the Medical Marihuana Facilities Licensing Act, created by the Legislature in 2016 to oversee facility regulation and licensing, and the Michigan Regulation and Taxation of Marihuana Act, passed by voters in 2018.

The dual system means that marijuana licensees must renew both a medical and recreational license annually to grow, process, transport, or sell marijuana.

By condensing the licensing, Filler said medical marijuana patients would also gain access to the new products being developed for recreation.

"If I’m an investor, if I have a new kind of edible or a new flower, where am I going to spend my money? Medicinal? Or rec? I’m going to go rec, because everybody’s doing rec right now," Filler said.

Filler said protecting medical marijuana patients was an important part of the legislation, and that he and co-sponsor Wilson were aiming to keep the bills simple.

"No Christmas tree gifts," he said. "It’s modernization. It’s saving people money. It’s expanding access."

Communities that haven’t approved recreational sale would be grandfathered in under the new legislation, Filler said.

"That’s the best way to do that," he said. "If you approved one and didn’t approve the other, then we’re not forcing you to now sell something, we’ll be aware of that as an issue. Medicinal patients use a card. They can still use that card to get the discount."

Changing the way Michigan does licensing will make the state’s cannabis market more stable, Wilson said in a statement.

"This is about making Michigan an attractive and stable place for marijuana businesses to thrive," he said. "A single, cohesive regulatory framework will support our growing economy, ensure the safety and quality of marijuana products, and maintain access for medical marijuana patients. This is a forward-thinking approach that positions Michigan as a leader in the industry."

Filler also talked about stability.

"If someone says, ‘It seems like Michigan has a very modern statute and a CRA that’s easy to deal with and very clear with their administrative rules – it’s not going too far one way or the other,’ I think all that gets put together," Filler said.

Caregivers have also been included in the conversation of drafting these bills, Filler said, which is different than how similar legislation has been approached in the past.

The biggest outstanding question, Filler said, is whether there will be the political will to take the bills up in the fall. In contemplating his own question, Filler said he thinks leadership will want to take up the bills.

"And I’ll tell you why: It’s Taylor Swift," he said referring to the bill package he worked on with Rep. Mike McFall (D-Hazel Park) to ban bots from buying event tickets en masse. "It’s because when you put good, bipartisan legislation together, that’s actually been worked on instead of just, ‘Here’s a bill. I’m on the right side of the chair today,’ it allows the Democrats, the Republicans and the stakeholders who have worked so hard on this (to come together). And there’s not going to be opposition."

The bills were referred to the House Regulatory Reform Committee  for consideration.

ANNUAL SALUTE OUR WARRIORS EVENT — THIS FRIDAY!!
DCD is once again proud to be a premier sponsor of the 7th Annual Salute our Warriors Event.  This event raises money for the Fallen and Wounded Soldiers Fund.

The mission of the Fallen and Wounded Soldiers Fund™ (FWSF) is to support Michigan-based soldiers who serve and protect our country.

Founded in 2006, the organization is dedicated to supporting Michigan-based soldiers and their families. Proceeds from corporate and private donations as well as events are used to support the organization’s mission. The organization is wholly staffed by business people and volunteers who believe in giving back to our armed forces and their families. 

THEY ARE AN ALL-VOLUNTEER EFFORT AND 97% OF YOUR DONATIONS GO DIRECTLY TO VETERANS.

ARTICLES OF POLITICAL INTEREST:

Michigan Police Agencies Are Cracking Down On Speeding In July

Michigan HOAs Can’t Ban Solar Panels Under Newly Passed Bill

Whitmer Shuts Down 2024 Presidential Talk Amid Timely Book Launch

Michigan Set To Become 20th State Outlawing ‘Gay Panic’ Defense

Biden’s Michigan Visit Comes As Top Democrats Question Reelection Chances

Marijuana News, Updates, & Articles of Interest

THE DCD MARIJUANA TEAM:  YOUR COMPETITIVE EDGE!

DCD continues to exist as the premier resource helping municipalities navigate the waters of cannabis policy. We would be more than happy to answer any questions you may have regarding medical or recreational cannabis policy, procedure, and more. DCD is available for presentations to municipal boards, for one-on-one meetings, and for consultations.

We are here to help you with: municipal lobbying, license application writing and assistance, business plans, state required operations manuals and compliance, facility design, corporate structure, and design and branding. 

We are experts in both medical and recreational cannabis policy and have been in the space for over ten years.  We welcome any opportunity to work with you in the future!

ARTICLES OF CANNABIS INTEREST:

Michigan Mulls Marijuana Regulations Merge

As Cannabis Use Makes More Kids Sick, Detroit School Leaders Seek Answers

Teamsters Allege Cannabis Store Paid ‘Sham’ Union To Avoid Labor Organizing

IRS Reaffirms That Cannabis Companies Companies Still Subject To 280E

‘Makes My Skin Crawl:’ Does Your Marijuana Contain Harmful Ingredients?

DCD is rebranding, and our bottom line is your bottom line. We are striving to create and foster strong relationships with clients and lawmakers, deliver results with strong ethics and class, but above all else, out-hustle and out-smart our competition every day to be the very best. We’re making chess moves while others are playing checkers. Everything we do is with you in mind, we’re doing things we’ve never done before and aggressively pursuing opportunities. The time is now. DCD has taken our firm to the next level and your involvement and investment paired with our knowledge and expertise is going to launch the great state of Michigan forward.

REP. NEIL FRISKE RELEASED FROM LANSING JAIL FRIDAY
Rep. Neil Friske was freed from jail on Friday as an investigation into assault and weapons allegations continues with his attorney claiming his client will be vindicated.

Ingham County Prosecutor John Dewane asked Lansing police to continue their investigation following its request for prosecutors to issue warrants charging Friske (R-Charlevoix) for felony sexual assault, felony assault and a felony weapons offense. No charges have been issued so far.

Friske was arrested by Lansing police early Thursday. Information was initially scarce, with a Lansing police spokesperson confirming only that Friske, 62, was arrested around 2:45 a.m. near the 2100 block of Forest Road following a report of a male with a gun and possible shots fired. That’s on Lansing’s east side, not far from the border with East Lansing.

On Friday, information in the Department of State Police iCHAT database showed felony warrants had been requested against Friske. The information in the State Police background check database did not offer more specifics on the charges.

By Friday morning, it remained unclear whether Dewane would press charges, but later noted he kicked the investigation back to Lansing police.

"During the course of the initial investigation, law enforcement officers learned of a possible sexual assault of an adult female, and they arrested a 62-year-old male, Kornelius Friske," Dewane said in a statement. "The Lansing Police Department submitted a warrant request to our office on June 21, 2024, after a review of the initial investigation, I have asked the Lansing Police Department to continue their investigation. Our office will continue to work in coordination with law enforcement on this matter."

Edwar Zeineh, Friske’s attorney, told Gongwer News Service that he looked forward to "the accurate facts vindicating" his client.

"Representative Friske has faith in God, America’s Constitution, and the right it affords to citizens, including due process, presumption of innocence, and the right to counsel," Zeineh said.

Friske did not respond to questions from reporters as he left the Ingham County Jail in downtown Lansing on Friday afternoon.

Friske was arrested under his formal name, Kornelius Wolfram Friske. He is one of the more conservative members of the House and a member of the far-right Freedom Caucus.

A message seeking comment from House Minority Leader Matt Hall was not returned.

He was arrested at 2:45 a.m. on Thursday. At 3:25 a.m., he posted two items to X, formerly known as Twitter, complaining about RINOs (Republicans in Name Only) and claiming his Republican opponent, Parker Fairbairn, of Harbor Springs, would work with Democrats.

The same post was published on his campaign’s Facebook page.

Fellow Freedom Caucus member Rep. Matt Maddock (R-Milford), in a comment under that post, blamed Friske’s current legal matters on "the Lansing lobby machine and the special interest swamp," which he claimed was working to support Fairbairn.

"It needs him badly. If we win back majority, it may be by only one or two votes. State Representative Neil Friske votes our values 100 percent," Maddock wrote. "The Lansing Lassie will be working against Neil and our values in Lansing just as he is today. Don’t get fooled by the big endorsements. The big money is not on our side. Neil is. And he’s proven it with his conservative voting record. It’s even better than mine."

Rep. Laurie Pohutsky (D-Livonia), chair of the Progressive Women’s Caucus, said the allegations against Friske "follow a disturbing pattern of violence against women by Republicans."

"Not only is the party’s platform a direct assault on the rights of women, but Michigan Republicans have also been accused of domestic violence, and recent media reports allege that one now faces charges of physical and sexual assault," Pohutsky said in a statement. "Even more disturbing is the deafening silence from Republican leaders who have failed to denounce the alleged actions of their colleagues.

NESSEL: SCOTUS DECISION IN GUN CASE BODES WELL FOR MICHIGAN LAWS
Michigan’s gun laws should survive any legal challenge following the U.S. Supreme Court decision in United States v. Rahimi, Attorney General Dana Nessel said during a virtual press conference on Friday.

The Supreme Court rejected a challenge to the constitutionality of a federal law banning the possession of a gun by someone who has been the subject of a domestic violence restraining order. In an 8-1 opinion, the court held that when an individual has been found by a court to pose a credible threat to the safety of another, that individual can be temporarily disarmed consistent with the Second Amendment.

"Thankfully, common sense prevailed on this matter," Nessel said. "This is a victory for crime victims and survivors everywhere, but no more so than the estimated 4.5 million women who have been threatened by an intimate partner with a gun, as with all those who are at higher risk of gun violence, including Black and indigenous women, women who are under 20, women who are pregnant or have disabilities and also members of the LGBTQ community."

Chief Justice John Roberts, writing for the majority, explained that "[s]ince the founding, our Nation’s firearm laws have included provisions preventing individuals who threaten physical harm to others from misusing firearms. As applied to the facts of this case, Section 922(g)(8) fits comfortably within this tradition."

This decision follows the Court’s 2022 decision, New York State Rifle and Pistol Association v. Bruen, which held that restrictions on firearms must be "consistent with the Nation’s historical tradition of firearm regulation."

Justice Clarence Thomas was the sole dissenting opinion.

Gun groups have voiced optimism that the conservative U.S. Supreme Court majority might strike down some of the new gun laws enacted in Michigan based on the Bruen standard.

Michigan’s extreme risk protection order laws, or red flag laws, were modeled after the federal law at issue in the Rahimi case, and Nessel said the Supreme Court decision confirms the constitutionality of the state’s law.

"I’m grateful for the court’s opinion on the matter," she said. "I look forward to continuing to work with Governor Whitmer and the Legislature to continue to protect Michigan residents from gun violence."

Rahimi was barred by a local Texas court from harassing, stalking, or threatening his ex-girlfriend, and from possessing a firearm through a civil protection order. Afterward, Rahimi was involved in several shootings over the course of just a few months. He was charged in federal court under 18 U.S.C. 922(g)(8), which prohibits the possession of firearms by persons subject to a domestic violence restraining order. Rahimi admitted to possessing multiple firearms, but claimed the law was unconstitutional under the Second Amendment.

Nessel went on to say that the Supreme Court’s decision in the Rahimi case upheld the constitutionality of many of Michigan’s new gun safety laws, including extreme risk protections orders, safe and secure storage, universal background check and the prohibition on those who have been convicted of a domestic violence offense from owning or purchasing a gun for eight years.

"We can say that it’s very likely in the event that we saw a challenge to our ERPA statute that it would be upheld. Similarly, that would probably be true with those other laws as well," she said.

There aren’t any current challenges to Michigan’s new laws, Nessel said.

The Rahimi case upholds and updates the national relationship with firearms, Solicitor General Ann Sherman said.

"What we know from Rahimi is that we’re not just looking at founding era laws to try to find some twin law, some identical law," she said. "We don’t have laws from the 1700s, a pack of laws, that are really directed at domestic violence. But what we do have is a concern, dating back historically to protection of others, and when something is a credible threat, we can have a temporary disarmament that’s something we know historically is relevantly similar, and that was what the court used as their language."

Nessel said that the Rahimi decision makes it clear that the right to bear arms is not unlimited.

"Common sense gun laws are consistent with the Second Amendment," she said.

Nessel talked about the need to educate law enforcement and the public on Michigan’s new gun laws.

"The governor just set up a commission yesterday to address gun violence, and I think that part of that was making sure that there was some collaboration between agencies all over the state of Michigan to find the best policies and practices," she said. "That’s incredibly important– finding new and better ways to make sure that these laws are enforced in such a way to protect the public."

In the last month, the state has granted 62 extreme risk protection orders, Nessel said.

"We don’t have to live the way we’ve been living," she said. "We’ve seen, of course, some really serious gun violence episodes in Michigan, and what I’m finding as I travel all over the state is that a lot of people just don’t have the awareness yet of what these new laws are."

The Supreme Court’s decision means that Michigan’s law will be upheld, and lives will be saved, Nessel said.

"We’re talking about not just the prevention of homicides, but suicides as well," she said. "The more that we’re out there, educating people about these laws, the more lives that we’re going to save."

TOBACCO FREE ADVOCATES WANT STATE LICENSING
Keep MI Kids Tobacco Free Alliance went after tobacco sellers in their testimony before the Senate Regulatory Affairs Committee this week, claiming stores are blatantly selling vape cartridges and other products through in-store displays.

Alliance members said gas stations around the state were selling federally banned flavored vape liquid, showing vaping devices marketed to teens through cartoon characters, and made claims of many Detroit gas stations selling tobacco to minors. They told the Senators that a new state licensing scheme was needed.

“I’m burning with rage about a lot of things here,” said Sen. Dayna Polehnaki (D-Livonia).

Polehanki pointed to a picture the advocates brought to the Binsfeld Building on Thursday and said it looked like a normal party store that was selling the flavored vape liquid.

“There has to be something that they don’t know. They’re not going to risk everything to set this up,” she said.

She was gobsmacked that there was no state enforcement against anyone selling the vape liquid. 

Detroit Wayne Oakland Tobacco Free Coalition Chair Minou Jones said the group she works with does vendor education through going to the stores and talking with them. She said there was no accountability for the stores other than a $50 fine for the clerk.

The Alliance had several vape devices on display it said were purchased from gas stations and convenience stores in Michigan.

“We don’t have tobacco resale licensing, and no one is going into those stores to police them or monitor whether they are in compliance or not,” Jones said.

Jones was advocating for 
SB 651, which would require a license to sell nicotine or tobacco products in the state of Michigan. SB 647, 
SB 648, SB 649, SB 650, SB 652, SB 653, and SB 654 are all part of the tobacco package. 

Michigan Petroleum Association-Michigan Association of Convenience Stores Vice President Bob Cleary said the Food and Drug Administration has not done a good job with enforcement of flavored electronic cigarettes and tobacco.

“For retailers, most really don’t understand what they can and cannot sell, and it’s tough when competitors are doing it. You’ve got to decide,” Cleary said.

He said not every store was selling everything. He said what the vendors want to know is what can be sold and making sure everything is enforced equally.

He made the suggestion of creating a list of products in a directory that is then enforced by the state, instead of relying on enforcement and guidance from the federal government.

Cleary said the cartoon vape rigs, however, were in another ballpark. 

“The flavor stuff is hard to really determine what’s legal and what’s not sometimes, but that stuff that’s a different ball game,” he said. 

He said he isn’t aware of any stores in Michigan selling those types of devices and said it was the first time he had seen such devices for sale.

“I was a little taken back by it,” he said.

Cleary said when it comes to licensure of tobacco, that it wasn’t going to solve all the problems. He pointed to a pamphlet released by the Michigan Department of Health and Human Services that most minors get tobacco or tobacco products from social sources, not directly from the stores.

“Kids are getting it from other kids, older kids, brothers and sisters, and even in a lot of cases – which just blew my mind – from their parent. So there’s a push in the industry to kind of be on the lookout for if that’s happening in their stores,” he said.

He said they were looking for a fair solution, but he said the state already had to have some idea of who was selling what, because of the $800 million in taxes that was collected on tobacco products.

“Hopefully this is not a money grab, but it kind of felt like that at the start,” he said.

Cleary also said bans were never a good way to control a product, because if there was a demand there would always end up being a black market for that product.

He said he could see a black market emerging for menthol cigarettes if the state banned their sale under the package.

“I think for us, it’s just more what is that fair and equitable solution to this that actually works and doesn’t drive more sales across the border or to the black market, which is what we’ve seen in other states that do this,” Cleary said.

DCD OUT AND ABOUT:

Jake German was happy to be out recently supporting Senator Mike Webber at an event in Warren and catching up with his Hillsdale College friend Representative Andrew Fink at an event where he spoke about his campaign for Michigan Supreme Court.

Senator Mat recently attended an event in support of Pontiac Mayor Tim Greimel, where he was happy to run into his friend Senator Jeremy Moss and others.

ARTICLES OF POLITICAL INTEREST:

The $670 Million Question Blocking A Michigan Budget Deal

In Michigan, ‘Fixing The Damn Roads’ Got Really Expensive

A Blue State Malaise Could Spell Disaster in the 2024 Election

Here’s How to Get an AV Ballot for the August 6th Primary Election

Trump Says Teamsters President Will Speak at Republican National Convention

Marijuana News, Updates, & Articles of Interest

THE DCD MARIJUANA TEAM:  YOUR COMPETITIVE EDGE!

DCD continues to exist as the premier resource helping municipalities navigate the waters of cannabis policy. We would be more than happy to answer any questions you may have regarding medical or recreational cannabis policy, procedure, and more. DCD is available for presentations to municipal boards, for one-on-one meetings, and for consultations.

We are here to help you with: municipal lobbying, license application writing and assistance, business plans, state required operations manuals and compliance, facility design, corporate structure, and design and branding. 

We are experts in both medical and recreational cannabis policy and have been in the space for over ten years.  We welcome any opportunity to work with you in the future!

ARTICLES OF CANNABIS INTEREST:

Ohio Helps Make Michigan #1 in Weed Sales

Michigan Surpasses California As Top Cannabis Market in the U.S. by Volume

Key Issues Highlighted at June 13th Cannabis Regulatory Agency (CRA) Meeting

Soaring Eagle Festival Returns with Cannabis Collaboration and More Activities

Waterford to Discuss Extension for New Cannabis Provisioning Center

DCD is rebranding, and our bottom line is your bottom line. We are striving to create and foster strong relationships with clients and lawmakers, deliver results with strong ethics and class, but above all else, out-hustle and out-smart our competition every day to be the very best. We’re making chess moves while others are playing checkers. Everything we do is with you in mind, we’re doing things we’ve never done before and aggressively pursuing opportunities. The time is now. DCD has taken our firm to the next level and your involvement and investment paired with our knowledge and expertise is going to launch the great state of Michigan forward.