Mid-February 2025 Newsletter


Sen. Moss Won’t Support House ESTA/Tipped Wage Bills as Written, Calls Them A "Gutting"
As reported by MIRS, with 11 days until Michigan’s tipped credit and earned sick time laws are scheduled to change; Senate Regulatory Affairs Chair Jeremy Moss (D-Southfield) says he won’t support HB 4001 and HB 4002 as written. The bills passed in the House last month, easing the change’s impact with the business community’s blessing. 

Instead of taking up HB 4001and HB 4002, the Senate Regulatory Affairs committee will be taking up Senate Democrats’ SB 15 and SB 8, which also reshape the scheduled changes and minimize their full impacts. At the same time, they don’t provide businesses with the same level of flexibility as the House bills. 

"The House bills are just a regurgitation of the gutting of the ballot proposals, and I do not support those bills as written," Moss said to MIRS today. "I think (they’re) just a repeat of the actions that got us into the situation that we’re in right now." 

Testimony on SB 15 – dealing with paid sick time – started on Wednesday and lasted around 90 minutes. Right now, Moss’ committee is scheduled to continue taking up SB 15 around 11 a.m. Feb. 11, and SB 8– dealing with the tipped and minimum wage – on Feb. 12 at 2 p.m. 

During Wednesday’s meeting, the committee’s minority vice chair, Sen. Roger Hauck (R-Union Twp.), made a motion to report the House bills to the Senate floor, so the full Senate could vote on them as soon as possible because “we’re getting short on the time limit we have for this.” Sen. Dayna Polehanki (D-Livonia), the majority vice chair, objected the motion, and Democrats supported her objection. 

"We can continue to go down this track to see if we can get to a solution by Feb. 21," Moss said. "If we’re able to have consensus on where we’re going, we’re going to bring that to the floor. That’s the goal." 

He said there’s nothing like a good deadline to get action done.

Meanwhile, when MIRS asked the Governor this evening about the different sets of bills, she said the solution needs to be found somewhere in the middle. 

"This is an era of divided government," Gov. Gretchen Whitmer said. "I think that there are a lot of good things that we could do together to support business in Michigan, but also to support workers. It’s not one or another, it’s got to be both."  

Meanwhile, House Speaker Matt Hall (R-Richland Township) said there are about 20 outstanding differences between the House and Senate versions of the legislation. He said he’s going to craft what he believes is an acceptable compromise between what business and labor wants and give it to Senate Majority Floor Leader Sam Singh (D-East Lansing) next week.

“My hope is that he’ll meet me in the middle, we’ll come out with something good, and we can pass it by Feb. 21,” Hall said. 

In July 2024, the Michigan Supreme Court ruled that in 2018, lawmakers unconstitutionally adopted and amended ballot initiatives in the same year, essentially rejecting the original proposals instead of sending them to the statewide ballot. 

Because of the ruling, the sub-minimum wage for tipped employees – like waitstaff and bartenders – will go from $3.93 to $5.76 per hour on Feb. 21. Additionally, employers with 10 or more workers must immediately provide 72 hours of yearly sick time, with workers needing to have at least 30 hours of worked wages for each hour of sick time. 

For tipped employees, the sub-minimum wage will be gradually eliminated, transitioning into the full minimum wage by Feb. 21, 2030. The scheduled changes also include raising the minimum wage from present-day $10.33 per hour to $15 in 2028, adjusting automatically afterward to inflation. 

HB 4001 and HB 4002 have been backed by groups like the National Federation of Independent Business, the Detroit Regional Chamber and the Small Business Association of Michigan.

Together, they would maintain Michigan’s tipped credit system as it is, phase in a $15 minimum wage by 2029 and exempt businesses with fewer than 50 workers from the new sick time mandates. 

"You can look at the vote tally as the bills came out of the House, supported by all Republicans and a handful of Democrats. So, if you look at the dynamics of the Senate, I think we’re going to have to accrue way more bipartisan support for whatever we come up with than what the House did," Moss said. 

Moss thinks there absolutely needs to be a new earned sick time act, and that it’s important that the minimum wage keeps pace with rising living costs. But, overall, he wants to ensure such things are implemented right. 

"I think that Democrats are not a monolith on this issue, and (there are) a lot of shades of gray here," he said. 

When asked who he’s looking out for in his decision-making, Moss mentioned his local gay bar. He described the employees as progressive Democrats who are concerned about how the Michigan Supreme Court’s changes will impact them. 

"They’re talking to me about the dynamics of what they foresee, the rise in costs," he said. "So I hope there is a landing spot that can take all those things into consideration." 

MIRS additionally spoke with Grand Rapids-based David Robb, the co-owner of Express Employment Professionals. Their typical clients include employers with 100 to 1,000 workers, providing them with attraction and hiring services, training programs and human resources services. 

Robb’s own business has about 31 employees. He does like the certainty the House’s earned sick time proposal has around granting exemptions to employers already offering competitive paid time off (PTO) benefits. 

For example, Robb’s company grants workers three to five weeks of paid time off, which they can use for vacation time, sick days or any other reason. But as his business prepares for Feb. 21, they believe they’ll need to extract 72 hours of that PTO package, so it can be used exclusively for sick time. 

"So those employees who maybe didn’t need that much sick time are now going to lose out on potential vacation time or paid time off that they could have had more flexibility with," Robb said. 

He illustrated how "everyone’s been kind of holding off" on updating their earned sick time policies, due to there being so much talk from Lansing about adjusting the court-ordered changes. 

But now that Feb. 21 is around two weeks away, Robb said “they’re kind of scrambling, and realizing, ‘OK, we probably need to implement this as is.’" 

"All the employment attorneys are probably getting a lot of business right now, and that’s obviously a big expense just to consult with them and figure out what exactly we need to do," he said. 

Robb said the HR community is really stressing about setting up systems for tracking the accrual of earned sick time. He illustrated struggles to design a system where, if someone wants to use some of their sick time before clocking in for the day, how that worker should be paid.

When he reached out to the businesses his company works for, Robb said Express Employment Professionals ended up collecting about 50 pages of feedback on the court’s scheduled changes. 

"One was ‘our small team doesn’t have time to track these hours manually, it’s a nightmare.’ Another comment was ‘this law forces us to reduce existing benefits and create rigid policies just to comply – it’s a step backward for employees and employers alike,’" he said. "’ESTA essentially removes our ability to have an attendance policy at all.’" 

During Wednesday’s committee meeting, Charity Dean – president of the Michigan Black Business Alliance (MBBA) – expressed concerns about how the court-ordered changes will affect Black-owned businesses. Due to a studied lack of access to capital, she explained that a lot of her members don’t have HR departments to follow the new law. 

"Not only is their payroll going to increase, but the cost of providing paid sick leave – this small restaurant with 13 employees, and there’s no subsidy. There’s no offering from the Legislature to make that easier for small businesses," Dean said. "I think what I’ve seen in the four years of running this organization is over-regulation and under-resource." 

She personally owns a coffee shop, and although she says her coffee is better than Starbucks, she doesn’t think equity would allow her to be regulated the same way as Starbucks. 

As for what’s next to come ahead of Feb. 21, Moss told MIRS he thinks Senate Democrats are trying to solve the issue, not politicize it. 


Gov. Proposes Road Usage Charge Pilot, 43% of Residents First Feel Negative on Miles-Driven Fees
Forty-three percent of Michiganders had negative feelings toward replacing the state’s gas tax with a road usage charge (RUC) when first asked about the idea by the state’s transportation department. 

From Feb. 1 through March 8 of last year, the Michigan Department of Transportation (MDOT) surveyed 19,161 residents, trying to understand their perceptions on RUCs. 

A "Miles Driven" funding source for roads came in second place when asked what residents felt was the fairest alternative to Michigan’s gas tax, which was 30 cents per gallon last year. Thirty-one percent of survey takers said "General Funds," 25 percent said "Miles Driven" and 23 percent continued to list "Gas Consumption." 

However, after viewing a video on why MDOT was studying transportation funding and road usage charges, 43 percent of respondents named a "Miles Driven" method as most fair and 34 percent named "Gas Consumption" as the fairest. 

Now, in the Governor’s budget recommendations for the next fiscal year, Gov. Gretchen Whitmer wants to set aside $7.8 million in restricted transportation funding to go toward an additional study and pilot program on potential RUC revenue options to bankroll infrastructure. 

"I think there’s an appetite to look at different funding strategies. I think the Legislature is eager to look into these, and we certainly are open to that," Michael Frezell, MDOT’s deputy communications director, said to MIRS today. "We’re just going to gather information as to how such a system could be implemented. What devices would we need? How would that work?" 

He explained that currently, MDOT is conducting a research project related to several transportation topics. With approximately 170 participants, some are using their vehicles while connected to an app, receiving mock invoices as to what potential charges could be. 

Other people in the group focus on public transportation. Frezell explained participants can receive "credit" for using public transportation on their day-to-day commutes, like trips to the doctor’s office or work. 

"And it just gives us an idea out there, if people had that option, would they use public transportation over their vehicle?" Frezell said, describing earlier a connection between the two subjects. "It demonstrates a need for improved transportation if there were road usage changes, if people want to look at alternatives to paying for those charges they could use public transposition." 

Out of her own appropriations subcommittee overseeing the MDOT, Sen. Veronica Klinefelt (D-Eastpointe) has put forward a RUC pilot program in the 2023 and 2024 budget-making seasons. However, it never made it out of final budget negotiations, as MDOT was seeking out a federal grant they ultimately did not receive. 

"With cars being more fuel efficient and us having electric vehicles and hybrid vehicles, revenues are falling, and local roads continue to deteriorate, and we need to address local roads," Klinefelt said to MIRS, adding that in her opinion, local roads need to be the state’s number one priority. 

She said she could write a book about how she’s become unconcerned about the over-government surveillance worry – or the "Big Brother" effect, referring to the dystopian novel "1984." 

Klinefelt said she’s learned of states like California using a "Smog test," where drivers have their odometers read instead of having their locations tracked. She expressed there are less invasive avenues for gathering information that could go toward a RUC. 

"But also, if we’re honest, the car companies have tracking devices on all of our vehicles, with the OnStar and everything else. They probably know exactly how many miles every car that’s relatively new has been driven over the last couple of years," she said. 

In terms of her own vision for a RUC pilot program, she imagines a few residents volunteering to try the method out. Meanwhile, the pilot program would learn about the kinks, complaints and overall programs of a RUC system assisting in Michigan. 

"This is all preliminary…I haven’t had discussions with my colleagues on my side of the building with respect to this, so I don’t think we really know how the whole Legislature feels," she said, clarifying that she has not had conversations directly with the Governor’s office on her proposal. 

She is open to discussions on bringing toll roads to Michigan highways. However, she explained the money from toll roads would be exclusive to state roads, and those in the worst condition are local. 

"If you do toll roads, you’re hitting a small section of the population over and over again, and other areas are never paying," she said. 


Whitmer Releases Budget Proposal, Bumps Spending
Governor Gretchen Whitmer’s seventh budget proposal created few ripples Wednesday, a steady as she goes blueprint for the 2025-26 fiscal year, lacking in big new programs and major changes in taxes.

Underscoring the lack of attention-grabbing items in the $83.5 billion ($15.3 billion General Fund) recommendation, Whitmer neither appeared in person for the budget presentation to a joint meeting of the House Appropriations Committee and the Senate Appropriations Committee, nor did she hold a press conference afterward to take questions about her proposals.

It’s more of a recent innovation for governors to attend the budget presentation. Former Governor Rick Snyder attended all eight of his, but his predecessors generally did not. This is the third time Whitmer has left it to her budget director to make the presentation (2021 and 2022 the other times). This was the first time since former Governor John Engler’s final budget proposal in 2002 that a governor did not take questions from reporters afterward, however.

"My balanced budget recommendation for fiscal year 2026 doubles down on the kitchen table issues that make a real difference in people’s lives," Whitmer said in a statement distributed by her press office. "This commonsense budget will lower costs, create good-paying jobs, grow our economy, improve academic results, and support Michigan seniors. Together, I know we can find common ground and deliver another balanced, bipartisan budget. Let’s get it done."

Whitmer was at Grand Rapids Community College on Wednesday morning touring facilities and speaking with Michigan Reconnect graduates, WXMI-TV, the Fox affiliate in Grand Rapids reported.

Considerable uncertainty surrounds the budget. There were many questions and no immediate answers at the presentation about the effect President Donald Trump’s actions to withhold federal funding could have on the state. Some 41.7 percent of the $83.5 billion in Whitmer’s budget recommendation comes from federal funds. Budget Director Jen Flood said the budget is built on the assumption federal funding will flow as usual.

"There’s obviously been a lot of chaos out of Washington, D.C., the last couple of weeks," Flood said. "Should there be changes, we’re going to have to work together on the next steps."

Flood was asked about the possibility of the federal government sending the state money as block grants with fewer restrictions.

"I think we’ve got to be prepared for all scenarios," she said.

Besides the federal uncertainty, there’s the new dynamic with Republicans in charge of the House. Expectations are House Republicans will push for more spending restraint this year, meaning the final version of the budget will likely look much different than what Whitmer proposed.

Whitmer is holding back her biggest budget news until next week when she will offer her first new plan for long-term road funding since her ill-fated 45-cent per gallon fuel tax increase of 2019 that never got traction in the Legislature. Whitmer used the State Transportation Commission to sell $3.5 billion in bonds in 2020 to expedite a large number major projects on state roads, but those funds will soon be exhausted and didn’t help local roads.

The budget represents a 1.2 percent increase from the 2024-25 current fiscal year (2 percent General Fund), though the governor also filed a request for a supplemental appropriations bill that would raise current year spending by $510.5 million ($380.4 million General Fund), which if approved would reduce the size of the increase for the 2025-26 fiscal year.

The bulk of the supplemental is to accommodate rising Medicaid caseloads.

For some of the flagship spending items in the 2025-26 fiscal year, Whitmer recommended slightly above inflation increases:

  • 4.1 percent for the K-12 per pupil grant;
  • 4 percent for the state’s 28 public community colleges (disbursed via formula);
  • 4 percent for the state’s 15 public universities;
  • 3.6 percent for statutory revenue sharing to cities, villages, townships and counties.
  • There are a large number of proposed fee increases and elimination of sunsets on other fees to implement the budget, especially in the Department of Natural Resources.

Whitmer is trying again on a proposed increase on the tipping fee paid for landfilling trash from other states in Michigan. She’s also again proposed making the Recreation Passport an opt-out instead of an opt-in, meaning motorists would automatically pay for the passport that gets them access to all state parks unless they opt out. Currently, motorists must choose to buy the passport.

Neither proposal survived the then-Democratic Legislature in 2024. With Republicans in charge of the House this year, both are likely dead-on arrival.

Whitmer did offer one new revenue proposal, to tax electronic cigarettes the same as other tobacco products.

Flood, speaking to reporters afterward, was asked how the budget proposal squares with Whitmer’s transportation infrastructure plan she intends to unveil next week, given the small ending balances the recommendations would leave if enacted.

"We put forward a budget today that’s going to continue to double down on the things that matter most to Michiganders, so that’s cutting taxes for working families, lowering costs of education, protecting seniors and improving student outcomes," she said. "The budget we put forward today is balanced, fiscally responsible. We look forward to picking up conversations on road funding next week."

When pressed further on the governor’s road funding proposal, Flood said she would not get out in front of the governor on the details.

Flood was asked if residents should be concerned about a budget proposal that, if enacted, would leave about $18 million in the School Aid Fund and $11 million in the General Fund.

She said that such numbers are "pretty standard." She added that the proposal takes into account tax cuts put into place from previous sessions, $3 billion in state debt to be paid down during the 2025-26 fiscal year and a rainy day fund deposit.

Senate Appropriations Chair Sen. Sarah Anthony (D-Lansing) said more details on the governor’s road funding plan would have been helpful.

"Having a road plan baked into the large budget presentation is helpful so we can actually start getting some of these conversations and decisions at a formal negotiations point," Anthony said. "I look forward to hearing more, hopefully in the weeks to come."

In 2019, the governor’s fuel tax increase was central to the entire budget. It appears this year, it will not be integrated in the same way.

How the math would add up for covering a road funding plan was not clear, Anthony said, when considering the budget proposal outlined Wednesday.

As to concerns about federal funding, Anthony said appropriators will need to monitor what is happening at the federal level and prepare accordingly. She was glad the budget office was looking at the issue, but it will be up to lawmakers to craft and adopt any plan if needed.

"Our office is also looking at ways that we can fill the gaps, if and when there’s some significant changes on the federal level," Anthony said.

Several Republicans pointed to the $83.5 billion budget, noting it was $56.55 billion in the 2017-18 fiscal year.

"Since Governor Whitmer has taken office, government spending has grown by 43 percent – this budget proposal continues that trend. We are ready to take a hard look at her proposals, some of which are good ideas, but House Republicans will not grow government at the expense of hardworking taxpayers," House Speaker Matt Hall (R-Richland Township) said in a statement. "Instead of just adding more taxes, fees and hundreds of new bureaucrats, we should be evaluating her new programs – and the programs we already have – to ensure we are providing value for tax dollars. There are clear priorities we must focus on, like investing in a Public Safety Trust Fund, fixing our roads, and reversing the Democrats’ income tax hike."

House Appropriations Chair Rep. Ann Bollin (R-Brighton) said she was glad to see the governor express a desire to make life more affordable for Michigan residents, but she questioned how an $83 billion budget would accomplish that.

"As we dig into the budget, the (full time employees), what is the efficiency? Are we starting to coalesce around consolidating some of the office buildings? State government costs a lot of money," she said. "Director Flood referred to tax cuts, but I didn’t actually hear about any tax cuts in the presentation, so we’ll be looking for those."

Cuts will be needed, Bollin said

"We really have to roll back. We have to look at, what are we required to do constitutionally? What are we required to do by court order? Statutorily? Then, what’s a priority and what’s a preference?" she said. "That is the order that I’m going to be looking at the budget and going and building from that baseline. There are a lot of programs that seem very great on the surface, but are they going to give us the best bang for the buck, and are they the role of government?"

House Appropriations Majority Vice Chair Rep. Matt Maddock (R-Milford) also advocated for budget cuts.

"We have two sister states in this nation, Georgia and North Carolina … each one of those states, our sister states, is still providing the same government services to all their citizens," he said. "Georgia spends $20 billion less than Michigan does, and North Carolina spends $19 billion less than we do."

He also criticized the governor for not being in Lansing to present her budget.

"Where was she? She’s so proud of her budget, why wasn’t she there?" he said.

Bollin said she intended to work on the budget for the state’s core services first, including education, law enforcement and corrections. She again stated that the constitutional requirement for the Legislature was to present and adopt a balanced budget by September 30, though she acknowledged that July 1 was a good target.

"But we have a lot of work to do," she said. "There wasn’t a lot of transparency in the last two budget cycles. We spent very few days here in Lansing."

Senate Minority Leader Aric Nesbitt (R-Porter Township), a candidate for governor, called for the state to mimic the actions President Donald Trump is taking on federal spending.

"President Trump is leading from the front and cutting massive amounts of waste at the federal level," he said in a statement. "It’s time for Michigan Democrats to heed the mandate issued by voters: No more corporate handouts, no more anonymous pet projects, and no more giveaways to radical far-left causes."

Farhat said although House Republicans have been tentative about getting a budget in place by July 1, House Democrats on the Appropriations Committee were committed to doing the work to get it done and that the new transparency measures wouldn’t be a hinderance to the process.

"We have the experience on the committee with several previous majority chairs," he said. "We got it done the last two years, we can do it again. I’m ready to roll up my sleeves and get to work with Chair Bollin and Chair Anthony to get it done. I know the governor’s team is serious. … We’re all ready. The folks are at the table."


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ARTICLES OF CANNABIS INTEREST:

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Late-January 2025 Newsletter


Tipped Wage, Sick Time Pass House
Bills preserving a lower tipped minimum wage and making changes to the Earned Sick Time Act sailed through the House on Thursday with several Democrats joining Republicans in support.

"There was bipartisan support, so that encouraging," said Rep. Bill Schuette (R-Midland), who chaired the select committee on the bills (editor’s note: this story has been changed to correct Schuette’s party affiliation). "Now the ball is in Leader Brinks’ and the governor’s court, and I’d hope they would follow the bipartisan example that we set in the House."

HB 4001, which keeps the tipped minimum wage at 38 percent of the minimum wage, cleared the House in a 63-41 vote.

Rep. Peter Herzberg (D-Westland), Rep. Tullio Liberati (D-Allen Park), Rep. Carol Glanville (D-Walker), Rep. Will Snyder (D-Muskegon), Rep. Karen Whitsett (D-Detroit) and Rep. Angela Witwer (D-Delta Township) voted with the Republican majority. All the Democrats who voted in favor of the legislation served on the select committee.

The only Democrat to serve on the committee who voted against HB 4001 was Rep. Matt Longjohn (D-Portage), though he voted to report it out of committee. He also voted against HB 4002 on the floor, though he voted to report it out of committee.

Rep. Brad Paquette (R-Niles) voted against the legislation.

"Everybody is their own shade of red," Schuette said. "I think there are some people who had concerns about raising the minimum wage at all."

Schuette said that the bill demonstrated his caucus was willing to introduce legislation with compromise.

"There has been a version of legislation that was introduced that would just put everything back to how they were," he said. "We’re introducing commonsense legislative fixes the problem that protects small business and our workers."

HB 4002, which makes scales back the paid sick leave law set to take effect February 21, passed 67-38.

Rep. Tyrone Carter (D-Detroit), who also served on the committee, voted in favor of the legislation, along with Rep. Noah Arbit (D-West Bloomfield), Glanville, Herzberg, Liberati, Rep. Amos O’Neal (D-Saginaw), Snyder, Whitsett and Witwer.

Schuette said House Republicans have not discussed putting an appropriation on the bills to make them referendum proof.

There have been discussions with members of the Senate on the legislation, though, Schuette said. He expressed hope that the Senate would move quickly to pass the legislation.

Senate Majority Leader Winnie Brinks (D-Grand Rapids) made it clear she had no intention of just passing the House’s version of the legislation. The Senate has different concepts on the issue in SB 8 and SB 15.

"I believe we can achieve a balance that ensures that workers have strong rights, employers are able to run their businesses, and that the spirit of the initiative petition – which received hundreds of thousands of signatures – is upheld," she said. "The bills we have in the Senate are much better for workers, and we are continuing to focus on those. But I want to be clear: I will not rubber stamp a plan that takes earned sick leave away from a million Michiganders."

The House plan exempts all employers with fewer than 50 employees from the requirement to provide one hour of paid sick leave for every 30 hours worked with a minimum of 72 hours per year. The Senate plan is a smaller change to the law set to take effect. That law says employers with less than 10 employees only have to provide a minimum of 40 hours in paid leave plus 32 hours of unpaid leave.

Under the Senate Democratic plan, the threshold would rise to those employers with fewer than 25 employees having the 40 hours paid/32 hours unpaid minimums.

House Minority Leader Ranjeev Puri (D-Canton) said he was looking forward to more robust discussions with the Senate legislation.

Although there was bipartisan support on both bills, Democrats put forward several floor amendments that were rejected. Democrats proposed five amendments for HB 4001 and eight amendments for HB 4002 .

"We’ve seen an abundance of amendments that came out for ways that can improve upon the disastrous bills that were offered today, so … if we could have meaningful discussion, we’d love to engage in that," Puri said.

Puri said that he could not account for why House Democrats didn’t take up the legislation last term when they were in the majority and could have facilitated those discussions themselves.

"I think the sooner we would have addressed this, the better off we would have been, but we obviously can’t change what happened in the past," he said.

He also said he didn’t think there was a need to pass legislation before February 21, when the current laws go into effect.

"We should be working toward a solution that is not fitting a political narrative," he said. "This law has been put into seven states around the country. There’s not been instances of widespread layoffs in any of these states. There’s not been thousands of displaced workers in these states because these laws have been implemented."

Schuette, on the other hand, said the House bills struck a better balance for workers and employers.

"I’m an optimist," he said. "We’re going to keep full pressure all the way down."

Several groups reacted to the House passing the legislation, with those who opposed the legislation coming down hard against Democrats who voted in support of it.

"Today, in a bipartisan fashion, the Michigan House of Representatives caved to corporate lobbyists and betrayed Michigan workers by voting to gut the state’s minimum wage and paid sick leave laws," Sam Inglot, executive director for Progress Michigan, said in a statement. "The majority of Michganders support the increase in the state’s minimum wage laws, the elimination of the subminimum wage, and the implementation of paid sick leave for workers across the state. HB 4001 and HB 4002 strips workers of a well-deserved and overdue raise and strips too many workers of paid sick leave they need to take care of themselves and their loved ones. We urge the Michigan Senate to reject changes to the laws and allow them take effect as intended on February 21."

David Worthams, director of employment policy for the Michigan Manufacturers Association, said passage of the bill reining in the sick time law is a crucial step toward addressing the "onerous and nonsensical challenges" the law poses. Besides the requirement to provide one hour of paid time off for every 30 hours worked, employer groups have decried the law’s apparent prohibition on employers providing a block of sick time to workers at the start of the year, requirements for employers to log hours worked and sick time accrued, prohibition on employers requiring advance notice of employees using sick time and more.

"The changes proposed in HB 4002 are necessary to ensure that manufacturers can continue to operate effectively while maintaining fair, competitive and sustainable paid time off policies," he said in a statement. "Whenever there is legislation that passes in such a bipartisan nature, it shows that there is clearly an issue that must be addressed quickly because it has such an impact on Michiganders across the state."


Regulators Approve $217M DTE Electric Rate Hike, Just Under Half of Utility’s Request
The Public Service Commission said it sought to balance the utility’s need for increased revenue for infrastructure improvements and to ensure the hike will have positive effects on customers prior to approving of a rate increase for DTE Electric Company.

DTE Electric was granted approval of a $217.4 million rate increase on Thursday, with the rates effective February 6, 2025. The vote by the commission was 3-0.

Thursday’s order was about 48 percent of the $456.4 million the utility had requested in March 2024. According to the PSC, an average customer using 500 kilovolts of electricity per month can expect a monthly bill increase of $4.61, or 4.65 percent.

Several key items approved by the PSC will allow DTE Electric to spend on infrastructure upgrades.

One approved upgrade is to its 4.8 kilovolt system that serves Detroit and some of its suburbs, as well as Ann Arbor and parts of the Thumb region. That includes using more durable materials for its power poles and pole replacements.

Commissioners also approved $87 million for the utility’s accelerated tree trimming program, which will help it increase the frequency of tree trimming to reduce vegetation near power lines.

DTE Electric was also granted an extension of its Infrastructure Recovery Mechanism through December 31, 2026, with spending capped at previously approved 2025 levels. PSC members denied the utility’s request for what it called a substantial increase in that funding area without evidence it considered and incorporated the findings of the commission’s recent third-party independent distribution system audits where appropriate.

Also approved were costs for DTE’s breaker replacement program and its projections relating to pole and pole top maintenance and modernization program.

Further costs approved include upgrades to DTE’s system in and around downtown Detroit which are experiencing reliability issues due to aging equipment. Expanded substations, new substations and retiring old ones are planned, as well as decommissioning old underground cables and rebuilding miles of cables that have prompted safety and reliability concerns.

DTE’s low-income utility bill assistance credit was also increased from $40 to $50 per month for enrolled customers whose household incomes are at or below 150 percent of the federal poverty level.

In a statement, DTE Energy Company said its customer monthly bill reduction will offset the PSC’s rate review order.

"Our customers demand and deserve reliable energy. DTE Energy is continuously improving our operations and driving down costs to keep energy affordable," the company said. "Combined with DTE’s recent customer monthly bill reduction in the power supply cost recovery factor (PSCR), today’s order from the Michigan Public Service Commission means residential customers will not experience an increase in their monthly bills."

Other costs were rejected in the order, including $258,000 in corporate jet travel.

Also rejected was a request to recover the costs of customer power outage credits caused by what the utility called public interference, such as vehicle crashes, contact with animals or weather including wind, ice or lightning. The PSC said the utility will need to work with commission staff on a procedure for the recovery of outage credits through more limited circumstances including customer or transmission system operator negligence.

Commissioners each spoke prior to the vote on balancing the need for revenue for needed infrastructure upgrades and ensuring they make sense for the utility and its customers.

"Investment is necessary," Commissioner Katherine Peretick said. "However, it’s our job to make sure that these investments that are proposed by the company are the right ones, that they’re reasonable and prudent, and that they’re bringing value to the company’s electric customers who are paying for them."

Commissioner Alessandra Carreon had similar remarks.

"The commission will continue to scrutinize spending proposals to ensure benefits to customers by relentlessly reviewing record evidence to discern for reasonableness and prudence," Carreon said.

Commission Chair Dan Scripps said in recent years, the PSC has been "obsessively focused … on reducing the number and duration of customer outages."

Scripps said the order approved Thursday would help bring customers closer to seeing results from those efforts.

"We’re seeing the results of that investment, seeing improvement in the overall reliability, a reduction in the number of minutes that customers are without power, the number of customers experiencing repeated outages over the course of the year," Scripps said.


DeBoyer to Chair House Oversight Committee
Rep. Jay DeBoyer (R-Clay) will chair the House Oversight Committee, House Speaker Matt Hall (R-Richland Township) announced at a press conference this morning. Last November, DeBoyer nominated Hall to be the House Republicans’ nominee for House Speaker during their closed-door caucus.

Hall said the “robust” Oversight Committee will dig deeper into Auditor General reports with “sweeping subpoena power" in order to get to the bottom of cases in which departments may be possibly breaking or ignoring laws. During a press conference, Hall did some name-dropping.

“The (Department of Health and Human Services) is a huge monstrosity in government that needs significant oversight in many places,” Hall said.

Hall said Secretary of State Jocelyn Benson was, during his tenure as Oversight chair, one of the most uncooperative department heads when it came to testifying or sharing information willingly. 

Unlike prior sessions, this Oversight Committee will have six subcommittees digging into the state bureaucracy, which Michigan Democratic Party Chair Lavora Barnes said she fears is the start of “weaponizing the government – wasting taxpayers’ hard-earned money in the process.”

“Hall and his Republican caucus are serving themselves and their political agenda, instead of the constituents who voted for them,” Barnes said. “Rather than come together with Democrats to get things done for Michigan, they are clearly positioning themselves to play partisan games.”

During the press conference, DeBoyer brought up Benson’s press availability Wednesday, which was held inside a government building, since she was turning in paperwork to form her gubernatorial committee. Critics of hers have wondered aloud if, under Michigan’s campaign finance law, a candidate can campaign inside a government building. Section 57 of the Michigan Campaign Finance Act states that as long as every candidate has an equal opportunity to conduct their campaign business inside a publicly owned building, it’s fair game.

DeBoyer was a county clerk for 12 years and said he finds it ironic that Benson held her kickoff event in the Austin Building.

“If three weeks ago Aric Nesbitt would have announced on the floor of the Senate that he was running for governor, everybody standing here would have lost their mind,” DeBoyer said. “Jocelyn Benson would have said that he’s in violation of campaign finance (law). Dana Nessel very well may have called him a criminal.”

Hall mentioned economic development projects as another investigative priority of the committee.

“Are they spending our tax dollars according to the law or not? And if they’re not, we’re going to expose it, and we’re going to hold them accountable,” Hall said.

Later in the day, Minority Leader Ranjeev PURI (D-Canton) said he thinks there is room for discussions on transparency, but he’s waiting to see if the committee just becomes weaponized to have political discussions. 

When asked what the committee’s boundary will be to prevent an investigation from becoming a witchhunt, Hall said that the worth of the investigations will be proven by the facts. He said Democrats call names or question motives, but when he was chair, every time he had it on good authority that there was a problem in a state department, there ended up being a problem.

“These department heads are great salesmen, and maybe they convince some of you sometimes. I know they even convinced me sometimes,” Hall said. “And then you feel stupid for believing these people. But they’re great politicians and salespeople.”

When it comes to misuse of tax dollars, Hall said bureaucrats forget that the money they are spending is not their money, and that the state House has a responsibility to make sure that money is spent wisely according to the law.

The committee will also have a tip-line website where, specifically, government employees can report misgivings of departments when they encounter them at work.

“It’s a shame when we find out about things in the media,” DeBoyer said, adding that he thinks the idea of a tip line will address those issues before it gets so bad that the media is writing about it. “In the end, this isn’t a ‘gotcha game,’ this is about changing the behavior of government to better benefit the taxpayers.

“What I would like you to do is hold us accountable,” DeBoyer said, addressing the reporters in the room.

DeBoyer was the St. Clair Clerk since 2011 when he was selected by the 31st Circuit Court judges to fill the unexpired term of Marilyn DUNN. He was elected to a four-year term as the Clay Township supervisor in 2008 and elected for a first term in the House in 2022.

A lifelong resident of St. Clair County, DeBoyer graduated from Algonac High School in 1988 and attended St. Clair Community College from 1989 to 1990. He has been a small business owner since 1994, specializing in engineered lumber. He is married and has two adult children.

DCD OUT AND ABOUT:

Senator Mat and Jake German were proud to host and meet Border Czar Tom Homan at a private event recently with the Brighter Michigan PAC.
Mat and Jake were also happy to attend film director Alexander Wraith’s recent premier of "TWEED."  Mr. Wraith looks forward to making more films in the State of Michigan and it was great to hear about his upcoming projects and interest in filmmaking in the state.





DCD IS A FULL-SERVICE, BI-PARTISAN, MULTI-CLIENT LOBBYING FIRM

REMEMBER ALL OF DCD’S SERVICES:

***Talk to us about REFERENDUMS & BALLOT INITATIVES***

**WORK WITH US ON LOCAL LOBBYING & DEVELOPMENT PROJECTS**

***CAMPAIGN SIGNATURE GATHERING***

***ECONOMIC DEVELOPMENT FUNDING: GRANTS – CDBG’S – BROWNFIELD – TIF’S***

***FEDERAL, STATE, & LOCAL REGULATORY CHALLENGES***

OUR TEAM LEVERAGES OUR MUNICIPAL CONTACTS AND ASSETS AND HELPS INDIVIDUALS AND COMPANIES NAVIGATE THROUGH ANY REGULATORY ISSUES!  WE SPEAK THE DUAL LANGUAGE OF BUSINESS & GOVERNMENT THAT HELP YOU TRANSLATE YOUR VISION INTO REALITY!


ARTICLES OF POLITICAL INTEREST:

Michigan’s Teachers Less Experience Than Before the Pandemic

Developer: Tax Subsidy Would Help RenCen Create ‘Navy Pier Like’ Destination

Jocelyn Benson Launches Campaign for Governor

Dems Campaign to Succeed Michigan Gov. Whitmer Isn’t Going Great So Far

From Donald Trump to Lansing, They’re Acting Like Children


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:

Pontiac Homicide Raises Questions About Marijuana Operation

Cannabis Cultivator EAZE to Expand Florida Operations After Near Shutdown

Will Indiana Follow Its Neighbors’ Lead on Marijuana?

New Rules Target Middlemen in Missouri Cannabis Industry to Prevent ‘Predatory’ Practices


Doing Things Differently

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.

Dunaskiss.biz | 248.693.1391

Mid-January 2025 Newsletter


Schuette to Chair House Select Committee to Take on Tipped Wage, Paid Sick Leave
House Republicans established a select committee to hold hearings on HB 4001, which would preserve tipped wage, and HB 4002, which would amend the Earned Sick Time Act.

The committee will be chaired by Rep. Bill Schuette (R-Midland).

"We look at our small businesses, they’re facing a looming cliff," Schuette said. "The House Republican Caucus is recognizing the seriousness of this issue. That’s why our first two bills were to be addressing this, and that’s why our very first committee action is going to be making sure that … we’re protecting small businesses."

The Select Committee on Protecting Michigan Employees and Small Businesses will be composed of nine Republicans and six Democrats.

Schuette will be joined by Rep. Ken Borton (R-Gaylord), Rep. Pauline Wendzel (R-Watervliet), Rep. Matthew Bierlein (R-Vassar), Rep. Angela Rigas (R-Caledonia), Rep. Kathy Schmaltz (R-Jackson), Rep. Jamie Thompson (R-Brownstown Township), Rep. Parker Fairbairn (R-Harbor Springs), Rep. Ron Robinson (R-Utica), Rep. Peter Herzberg (D-Westland), Rep. Tyrone Carter (D-Detroit), Rep. Karen Whitsett (D-Detroit), Rep. Angela Witwer (D-Delta Township), Rep. Will Synder (D-Muskegon) and Rep. Matt Longjohn (D-Portage).

"I’m looking forward to robust committee hearings next week," Schuette said. "I want to make sure that we allow time for testimony, allow the committees to be heard and make sure we get it right."

Rep. Karen Whitsett (D-Detroit), one of the Democratic members of the committee, said she was excited to discuss the issues.

Whitsett was the lone Democrat to leave session at the end of last term. Her absence, combined with the absence of House Republicans who left the chamber over tipped wage and paid sick leave, deprived House Democrats of a quorum to take any action. Whitsett also advocated for the House to take up the policies.

"People who this affects need to be able to come in and tell their story," she said. "I’m not going to play with people’s lives."

Whitsett said she wasn’t coming in with any preconceived notions about the legislation and just wanted the committee process to play out.

"I want to have an open mindset to be able to hear both sides," she said.

Schuette said he expected people from larger metropolitan areas and more rural areas would be represented in the committee proceedings.

"This is an issue that’s not just facing one select part of the state," he said.

Senate Democrats introduced bills last week related to the policies, SB 8 and SB 15.

House Republicans said that although they felt the Senate needed to negotiate with them to get to something closer to the House’s legislation, they were optimistic that a deal could be reached.

"Look where we are," Speaker Matt Hall (R-Richland) said during a roundtable discussion with reporters (See separate story). "Their plan a few days about was ‘Pound sand. We’re just going to get things go into effect.’ Now, they have a plan."

The goal is to act quickly on the legislation, while still allowing it to go through the full committee process, Hall said.

"When you have committee hearings, you learn things and you say, ‘Oh, we’ve got to make some adjustments,’ and that’s what’s going to happen," he said. "We’ll get a bill through the House in the next few weeks, hopefully when the committee sends it to us, and we’ll be able to negotiate with the Senate."

The select committee is the only committee created so far by House Republicans. Committee assignments for the term are still being determined.


Nesbitt Outlines Session Priorities, Says Corporate Incentives Should Be Used to Build Infrastructure
Senate Minority Leader Aric Nesbitt said Wednesday his top priority as the new session gets underway is amending the minimum wage and paid sick time laws set to take effect next month.

"My number one priority is how do you save the 50,000 restaurant jobs in the state of Michigan, and so I’m willing to work with anybody, anyhow, to find that solution," Nesbitt (R-Porter Township) told reporters following session Wednesday.

Both laws are set to take effect February 21, with Republicans, business owners and some restaurant workers saying they do not support the minimum wage law. Opponents including Nesbitt have said the changes would put many restaurants out of business and result in massive job losses.

Nesbitt pointed to a measure similar to the Michigan minimum wage law set was rejected by more than 64 percent of voters in Massachusetts last November.

"I have to say that if this goes into effect the way it is, prices are going to go up, people are going to be laid off and at the end of the day we’re going to have less employment, higher prices in the state of Michigan," Nesbitt said.

Other top priorities for Nesbitt were cutting taxes, paying down long-term state debt and fixing the state’s roads and infrastructure.

Nesbitt was also asked about the end to automatic monies being placed into the Strategic Outreach and Attraction Reserve fund, which he pointed out he voted against the creation of in 2021.

"I’m always open to looking at ways of improving our infrastructure, allowing citizens to keep more of what they earn, and making sure that students have a choice in what schools they go to, and so I think this is an opportunity right now to cut taxes, to invest in our infrastructure," Nesbitt said. "And you saw Senate Republicans during both the budgets saying: ‘instead of spending $600 million a year on corporate welfare, why don’t we spend it on infrastructure, why not spend it on fixing our bridges?’"

He was also asked about the recent move by the Pentagon to blacklist the Chinese company that Ford Motor Company was working with on its Ford Blue Oval electric vehicle battery development in Marshall, which has received SOAR fund monies. Nesbitt was asked if he would want to see incentives clawed back from companies in situations such as the blacklisting that occurred.

"They’ve already clawed back some because it’s been downsized," Nesbitt said, referring to Ford’s previous move to reduce the scope of the project. "I continue to oppose this kind of Whitmer giveaway corporate welfare."

Nesbitt said Democrats have been trying to force electric vehicles on a public that does not want them. He said the state should be targeting revenues to other priorities.

"I’m somebody that continues to oppose writing checks to some of the most profitable corporations in the world," Nesbitt said. "We should be competing on education, on infrastructure, on making sure we have the best, most talented workforce in the nation. … If you’re having to bribe the companies to come here, then that means you’re not competitive in the other areas."

The minority leader was also asked about whether the House should have subpoena power on its own for the planned set of oversight subcommittees it plans to launch.

House Republicans are setting up six Oversight subcommittees to review various elements of state government under the current Democratic governor.

Nesbitt said Governor Gretchen Whitmer’s administration during the coronavirus pandemic "stonewalled" in providing information on how it was making decisions in its statewide response.

"It’s something where you want people to comply," Nesbitt said. "You see it at the federal level. You don’t want to have to go there, but sometimes you got to have that hammer to be able to get responses."


Hall:  No Committee on Committees
Speaker Matt Hall (R-Richland) does not intend to use a traditional Committee on Committees process to assign members to the planned 18 House standing committees.

Hall spoke with reporters about his plans for the new term, including his committee process, during a wide-ranging roundtable discussion last Thursday.

"I have a big organization. I have a lot of staff that work for me, so we can handle that," Hall said. "I can handle that in my organization, to do the committee placements, and that’s what we’re going to do."

It’s highly unusual for a speaker not to name a Committee on Committees.

For many years, the speaker or speaker-elect has named a Committee on Committees to help manage the requests and challenges of determining what can be hundreds of committee assignments. There’s nothing requiring a speaker or speaker-elect to use this mechanism, however, and even when one is used, the speaker still has the final say on all assignments.

Hall said that he sent out a survey to all 110 members asking what committee assignments they’re interested in.

"We need collaborative committees. You need committees with … members that want to work to get things done," he said. "We’re going to place them based on their life experience, their passion, and what they told their district they were going to do. I want everybody – Democrat or Republican – to be able to go back to their district and say, ‘I did what I said I was going to do.’ We want to put them in positions to succeed."

He also said that he’s taking on the responsibility of assignments for House Democrats, saying that he took issue with the recommendations of Minority Leader Rep. Ranjeev Puri (D-Canton).

"No leadership should punish you with your committee assignments to instill caucus discipline," he said. "We need to do what’s right for the institution."

Hall also has not announced who will chair the House Appropriations Committee. Historically, the speaker-elect has named the person who will chair the House Appropriations Committee prior to January 1. The last time the speaker announced his appropriations pick after January 1 was the 1997-98 term, according to a Gongwer analysis. During the 1995-96 term, then-House Speaker Paul Hillegonds made his announcement on January 5, 1995.

Hall said he is still looking at the candidates.

"We have a lot of really talented people," he said.

No timeline was provided for when committee assignments are expected, though it will likely take several weeks.

The only committee to be announced is a select committee, chaired by Rep. Bill Schuette (R-Midland), that will take on the issues of tipped wage and paid sick leave.


DCD OUT AND ABOUT:

Senator Mat was happy to host new Michigan Congressman Tom Barrett at Common Ground’s Lansing Resiliency Center prior to the Christmas holidays.
Jake was happy to make the rounds at various client holiday parties this season.  Including with Flint Mayor Sheldon Neeley.

Come out this weekend and join DCD staff as they party with the stars at the TWEED MOVIE PREMIERE GALA!! Use QR Code for more information!


***BOI REPORTING REMINDER FOR LLC’s***

Latest Update to BOI:  As of Jan. 2, 2025, the U.S. Court of Appeals for the Fifth Circuit has allowed the Dec. 2, 2024 injunction to go into effect, causing the Beneficial Ownership Information Reporting to once again be unenforceable.

Timeline of Beneficial Ownership Reporting

  • Jan. 1, 2021 – Corporate Transparency Act enacted
  • Jan. 1, 2024 – Beneficial Ownership Reporting requirement of CTA goes into effect for all newly formed entities with previously formed entities to have delayed reporting until Jan. 1, 2025
  • Dec. 2, 2024 – Nationwide Injunction by Texas Federal Judge to prevent BOI to be enacted
  • Dec. 18, 2024 – Extension for BOI reporting deadline removed from Congress’ Budget Reconciliation Bill
  • Dec. 23, 2024 – U.S. Court of Appeals for the Fifth Circuit issues stay of injunction, once again allowing BOI to be enforced. FinCEN delays due date for most filers to Jan. 13, 2025
  • Dec. 26, 2024 – Merits Panel of the Fifth Circuit vacated the previous stay, allowing the original nationwide injunction to move forward
  • Dec. 31, 2024 – Government requests U.S. Supreme Court to unblock enforcement of the Beneficial Ownership Reporting
  • March 25, 2025 – Scheduled arguments with the Fifth Circuit to discuss merits of government’s appeal

As multiple other Courts of Appeals have ruled that the Corporate Transparency Act is constitutional, it remains to be seen whether the reporting may still go into effect prior to the next scheduled hearing in March of 2025. It may also be possible the Supreme Court steps in to unblock the enforcement of CTA before that time.

Next Steps

Due to the uncertainty involved of if and when the Beneficial Ownership Reporting will go into effect, small businesses are faced with determining how best to proceed.

  1. File BOI Reporting Voluntarily – Entities with simple reporting structures and no expectation of significant changes may be best suited to file the Beneficial Ownership Information voluntarily. This may be ideal to allow these entities to avoid on-going surveillance of the status of the BOI enactment.
  2. Collect BOI Information – Entities with more significant reporting structures may want to continue to collect the necessary information and be prepared to file in the case that enforcement of the new reporting goes into effect in the near future.
  3. Wait and See – Some companies may choose to monitor the status of the BOI Reporting through the courts before moving forward with collecting or filing their Beneficial Ownership Information. Dunaskiss Consulting & Development urges these companies to have a plan that allows for a quick response to this reporting requirement, including any necessary outsourced providers.

Ready to File Your BOI?
For more information and to file your BOI report using the BOI e-filing system, visit https://www.fincen.gov/boi 


DCD IS A FULL-SERVICE, BI-PARTISAN, MULTI-CLIENT LOBBYING FIRM

REMEMBER ALL OF DCD’S SERVICES:

***Talk to us about REFERENDUMS & BALLOT INITATIVES***

**WORK WITH US ON LOCAL LOBBYING & DEVELOPMENT PROJECTS**

***CAMPAIGN SIGNATURE GATHERING***

***ECONOMIC DEVELOPMENT FUNDING: GRANTS – CDBG’S – BROWNFIELD – TIF’S***

***FEDERAL, STATE, & LOCAL REGULATORY CHALLENGES***

OUR TEAM LEVERAGES OUR MUNICIPAL CONTACTS AND ASSETS AND HELPS INDIVIDUALS AND COMPANIES NAVIGATE THROUGH ANY REGULATORY ISSUES!  WE SPEAK THE DUAL LANGUAGE OF BUSINESS & GOVERNMENT THAT HELP YOU TRANSLATE YOUR VISION INTO REALITY!


ARTICLES OF POLITICAL INTEREST:

Michigan's Tax Revenue Is Up, But Economic Uncertainty Looms

Michigan Democrats Pension, Retirment Bills in Limbo Amid GOP 'Legal Review'

Speaker Hall on FOIA Reform:  'Don't Get Your Hopes Up"

Is Michigan Ready for an Independent Run for Governor?  Experts Think So.

Here's Who's New in the Capitol in 2025


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 Marijuana Sales Outpace California's, But Ohio is Sparking Up
Michigan marijuana sales outpace California's but Ohio is sparking up

NO STATE LAB: State legislation that had sought to create a new, statewide marijuana reference testing laboratory was also shelved at the end of last month’s legislative session.

POT FOR PTSD: The US Food and Drug Administration has approved a clinical trial to study the potential benefits that smoking marijuana may have for people with post-traumatic stress disorder. The study will reportedly involve 320 veterans, including Michiganders. 

MERGED MARKET: With medical marijuana sales declining, legislators and cannabis leaders are reportedly eying plans to combine the medical and adult-use markets—even though legislation that sought to do so failed to advance to a vote in last year’s legislative session.


Doing Things Differently

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.

Dunaskiss.biz | 248.693.1391

December 2024 Newsletter


Senate Votes to Extend UI Benefits From 20 Weeks to 26 Weeks, Boost Maximum by 70%
Senate Democrats took their first steps Thursday to increase the number of weeks unemployed persons can obtain state benefits from 20 weeks to 26 weeks and increasing the maximum weekly benefit.

Senators passed SB 40 by a 21-15 vote, which would reverse a 2011 reduction that was enacted under a Republican-controlled Legislature from 26 to 20 weeks.

As passed, the bill would also increase the weekly benefits for unemployed persons from $362 to $614 per week, adjusted for inflation and retroactive from the last increase in 2002. It would be phased in over two years and then tied to consumer price index inflation.

Opponents of the bill said it would place significant financial burdens on employers and could lead to job losses, benefit cuts and price increases. Unemployment benefits are funded through the State Unemployment Tax on employers.

The Legislature also passed four other bills (SB 962, SB 975, SB 976 and SB 981) by votes of 21-15 that would make several changes to Unemployment Insurance Agency processes dealing with various exemptions and applications processes.

Sen. Ed McBroom (R-Vulcan) was the lone Republican to vote for the bills.

Sen. Thomas Albert (R-Lowell) said he believed SB 962, SB 975, SB 976, SB 981 have some positive elements, but they do not enact needed improvements to processing claims that became obvious during the coronavirus pandemic. But his main objection was that the bills are tie-barred to SB 40.

"We should not be adopting policies that further raise costs for job providers when they are already reeling from the same inflationary pressures and other economic factors that all Michiganders have faced for the last few years," Albert said.

Sen. John Cherry (D-Flint) told reporters after session that the benefits offered in Michigan are less than all other Midwest states and the maximum weekly benefits had not been raised since the early 2000s.

"Ultimately, this helps make sure we have a stable population," Cherry said. "That money goes straight back into the economy, and it’s really a buffer for folks who need it."

Senate Minority Leader Aric Nesbitt (R-Porter Township) told reporters there are major challenges remaining with the Unemployment Insurance Agency.

"What they passed today doesn’t do anything, doesn’t fix the problems that’s there," Nesbitt said.

Testimony on SB 40 was divided Thursday prior to it being reported from the Senate Labor Committee .

Amanda Fisher, Michigan state director for National Federation of Independent Business, opposed the bill.

"The biggest thing we have to look at … is that this is 100 percent employer funded," Fisher said. "A huge concern is that this benefit increase is too far too fast."

A Senate Fiscal Agency analysis showed that $763.1 million was paid out during the last year in unemployment insurance benefits. If the total had been 26 weeks, that total could have been between $839.4 million and $867.6 million.

Michigan Building Trades President Steve Claywell said other Midwest states have more generous benefits and employees are leaving for other states.

"The reality in our world it’s not if it’s when we work ourselves off a job," Claywell said. "Our members should not have to choose between foreclosure, food, family or living in Michigan," Claywell said.

David Worthams, director of employment policy for the Michigan Manufacturers Association, in a statement said the changes proposed in SB 40 would come at a huge cost to employers.

"Increasing the weekly maximum benefits with an undefined cost to Michigan job providers is irresponsible and will threaten the state’s competitiveness compared to neighboring states," Worthams said. "Michigan manufacturers will be facing a powerful disadvantage."


House Dems Introduce Tolling, Fuel Tax, Registration Fee Options for Road Revenue
New legislation has entered the conversation around road funding.

House Democrats introduced three new bills on Thursday aimed at increasing revenue for Michigan’s crumbling roads.

The bills, HB 6256, HB 6257 and HB 6258, each offer different methods for generating additional dollars. HB 6256, sponsored by Rep. Jasper Martus (D-Flushing), would create a tolling authority that would choose which roads to toll and set toll rates. HB 6257, also sponsored by Martus, would increase the vehicle registration by $100. The final bill, HB 6258, sponsored by Rep. Alabas Farhat (D-Dearborn), would increase the fuel tax by 19 cents.

"The whole intent of what we’re doing now is making sure that the Legislature is in a position to negotiate with everything on the table and empowering our speaker, our leadership team, to get the best deal possible for the residents of Michigan," Farhat said.

These bills come on the heels of legislation introduced late last month by both Democrats and Republicans that would earmark revenue generated by the Corporate Income Tax to the Michigan Transportation Fund. The Republican plan would also direct all revenues generated at fuel pumps to roads. Although House Republicans stressed that the School Aid Fund, which currently receives revenue from the fuel tax, would be held harmless, no specific plan was offered for backfilling the fund. Democrats introduced a bill, HB 6217, which would increase the corporate income tax from 6 percent to 8.5 percent, earmarking the increase for the School Aid Fund.

"The big goal for us is to solve a problem that has plagued the Legislature, that has plagued our state, for years," Farhat said. "We know how important this is, and we’re taking it head on. We’re not afraid to champion bold solutions right now."

The bill sponsors said road funding is a topic with bipartisan energy behind it, but this is the first real push from the House to introduce legislation specifically addressing the issue.

Martus said that the House has done legislation addressing the roads through the budget.

"This is just the latest iteration," he said. "We’ve been working on it in the budget … for two budget cycles now."

With the bills introduced, there is limited time to move them through the legislative process before the end of the term. Under the Constitution’s five-day rule, the House cannot pass them until Tuesday at the earliest, and then the Senate must wait another five days from the day the House first passes them before it can pass them.

The final day listed on the Senate’s current calendar is December 23, which means that for any House bill to have a chance to be passed by the Senate, it must be voted out of the chamber by December 18, based on the House’s current calendar. The Senate would then need to take the legislation up on its final day of session scheduled for the year and pass it.

"Everything is on the table to make sure that we are going to fix the damn roads before the end of the year," said House Majority Floor Leader Abraham Aiyash (D-Hamtramck). "There is certainly time to get this done. … Sometimes, the government moves like honey, it’s very slow, and sometimes, it moves like a microwave, where things happen quickly."

Both Republicans and Democrats have put forward bills that would effectively end funding for the state’s Strategic Outreach Attraction and Reserve Fund.

Aiyash said that House Democrats were willing to send legislation to Governor Gretchen Whitmer that prioritized road funding over corporate incentives.

"If there’s anything that we learned in this election cycle, it’s the party that commits to the actual work of investing in the working class … that is the party that is going to get an opportunity," he said. "I’ll be honest, as Democrats, we have lost our way a little bit in finding out what are the best mechanisms to work on investing in working people’s concerns."

Farhat added that the best way to attract corporations was to invest in Michigan residents.

"When you have a workforce that can get to work on time, transit. We have a workforce that has reliable roads, it gets easier," he said. "And I think that’s a more serious conversation to have."


House Keeps Light Lame Duck Agenda in First Week as Frustration with Tate Grows
The House once again took up a light agenda on Thursday, passing a memorial highway bill, a bill on traffic regulations and a bill package modifying individual income tax law as it applies to education savings programs.

Meanwhile, advocates and lobby groups are becoming increasingly impatient with House Speaker Joe Tate (D-Detroit), as they see him as the one responsible for blocking major pieces of legislation.

The Michigan Nurses Association along with other nursing organizations published a scathing joint statement condemning Tate for his inaction on Thursday.

"It gives us no pleasure to conclude that Speaker Tate is misusing his power in this way; furthermore, he is violating many residents’ trust in his party. Like many organizations, especially unions, we had faith that Democrats having the majority meant they would do the right thing – and not just when it was easy," the statement said. "Speaker Tate’s actions are turning that trust into disappointment. We are speaking specifically of the Safe Patient Care Act – a bipartisan package of bills that are all sponsored by Democrats, cosponsored by the majority of Democrats in both chambers, and supported by multiple unions and the Michigan AFL-CIO."

The legislation would set minimum nurse-to-patient staff ratios. It’s strongly opposed by the Michigan Health & Hospital Association.

The statement, which was put out by Jamie Brown of the Michigan Nurses Association, Dina Carlisle of the RN Staff Council and OPEIU Local 40, and Pam Campbell of the Registered Nurses and Registered Pharmacists of Hurley Medical Center, said that Tate needed to find the courage to move legislation before time ran out on the term.

Democrats had 54 members in attendance on Thursday. Rep. Reggie Miller (D-Van Buren Township), who is recovering from surgery, and Rep. Rachel Hood (D-Grand Rapids), who is absent from session in protest of the lack of significant legislation on the agenda, were not on the floor Thursday (See Gongwer Michigan Report December 4, 2024). Hood was in Lansing during Thursday’s session.

HB 5924, which designated a portion of I-94 as the "Officer Mohamed Said Memorial Highway," passed 102-0. HB 5304, which would prohibit drivers from driving in the lane farthest to the left on a freeway, except for a reasonable distance passed 85-17. HB 5781 , which updates the definition of the internal revenue code, passed 102-0. SB 1001 , which modifies the Michigan Education Trust Act, passed 102-0. Finally, HB 5783 , which aligns qualified higher education expenses under the Michigan education savings program with the most recent federal modifications, passed 102-0.


***BOI REPORTING REMINDER FOR LLC’s***
What is BOI Reporting?

BOI stands for Beneficial Ownership Information, a new reporting requirement aimed at increasing transparency in business ownership. It’s designed to help prevent fraud, money laundering, and other shady activities.

What’s Required?
You’ll need to identify your beneficial owners—the people who own or control at least 25% of your business. Gather their name, address, date of birth, and a government-issued ID number. Then, file the report with FinCEN (the Financial Crimes Enforcement Network – an official bureau of the U.S. Department of the Treasury).

Why was BOI Reporting Created?
According to the FinCEN website, “In 2021, Congress passed the Corporate Transparency Act on a bipartisan basis. This law creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures.”

Who Needs to File?
If you own or control a small business, LLC, or similar entity, chances are BOI reporting applies to you. Big corporations and publicly traded companies are typically exempt, but smaller entities? You’re on the hook.

When’s the Deadline?
According to the FinCEN website, “A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025 to file its initial beneficial ownership information report.”

If your business was created or registered in 2024, your deadline is different. The FinCEN website says, “A reporting company created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file its initial BOI report. This 90-calendar day deadline runs from the time the company receives actual notice that its creation or registration is effective, or after a secretary of state or similar office first provides public notice of its creation or registration, whichever is earlier.”

Why Should You Care?
Failing to file or filing late could lead to financial fines or penalties. Besides staying compliant with federal law, BOI reporting protects your business and strengthens the fight against financial crimes. It’s one small step for you, but a big leap for business integrity.

Ready to File Your BOI?
For more information and to file your BOI report using the BOI e-filing system, visit https://www.fincen.gov/boi 


DCD IS A FULL-SERVICE, BI-PARTISAN, MULTI-CLIENT LOBBYING FIRM

REMEMBER ALL OF DCD’S SERVICES:

***Talk to us about REFERENDUMS & BALLOT INITATIVES***

**WORK WITH US ON LOCAL LOBBYING & DEVELOPMENT PROJECTS**

***CAMPAIGN SIGNATURE GATHERING***

***ECONOMIC DEVELOPMENT FUNDING: GRANTS – CDBG’S – BROWNFIELD – TIF’S***

***FEDERAL, STATE, & LOCAL REGULATORY CHALLENGES***

OUR TEAM LEVERAGES OUR MUNICIPAL CONTACTS AND ASSETS AND HELPS INDIVIDUALS AND COMPANIES NAVIGATE THROUGH ANY REGULATORY ISSUES!  WE SPEAK THE DUAL LANGUAGE OF BUSINESS & GOVERNMENT THAT HELP YOU TRANSLATE YOUR VISION INTO REALITY!


ARTICLES OF POLITICAL INTEREST:

Last Michigan House Election Most Expensive in State History. Dems Spent Big, GOP Won Anyway

University of Michigan Abandons "Diversity Statements" in Hiring

Michigan Farms Must Provide Milk Samples On Request to Test for Bird Flu Virus

Duggan's Independent Run for Michigan Governor is a Risky Gamble

Michigan Certifies 2024 General Election for Trump in Highest Turnout in State History


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:

Pontiac Finally Opens Cannabis Applications, But Timing Could be Tough in Michigan

Michigan Rises to No. 2 in Marijuana Sales Per Resident

Michigan is Building a Cannabis Testing Lab, But Needs a Lame Duck Vote to Run It

Warren Cannabis Grow Facility Announces Closure


Doing Things Differently

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.

Dunaskiss.biz | 248.693.1391

Mid-November 2024 Newsletter


Hall’s Approach as Incoming Speaker: ‘I Don’t Think We Should Play It Safe’
As expected, Rep. Matt Hall (R-Richland) will lead Republicans of the 103rd Legislature in the 2025-26 term and serve as the next speaker of the House, Gongwer reported.

House Republicans elected Hall as their leader for the upcoming term during a caucus meeting after session on Thursday. As the majority party, the Republicans get to pick the speaker.

Once formally elected by the House at its opening session in January, he will preside over the term, during which Republicans will have a 58-52 majority.

"I think that one of the reasons Democrats lost their majority is because they were too afraid of losing it," he said. "The people of Michigan want us to take action. And we have some important issues that we need to work on, and I don’t think we should play it safe. I think we should take risks. I think we should push hard to get stuff done, even though it’s tough sometimes."

Hall defeated Rep. Tom Kunse (R-Clare) in the race.

Hall, the current minority leader, was first elected to the House in 2018 and served as the majority caucus chair during the 2021-2022 term.

During his first term in 2019-20, he was chair of the House Oversight Committee and the Joint Select Committee. Both committees scrutinized the state response to the COVID-19 Pandemic and were heavily critical of Governor Gretchen Whitmer’s administration. Notoriously, Hall brought then-President Donald Trump’s now-disbarred attorney Rudy Giuliani before the committee to testify regarding the disputed 2020 election.

In the 2021-22 term, Hall took a quieter, more policy focused role as chair of the House Tax Policy Committee .

For the past two years, Hall has held a tight grip on his caucus. House Republicans frequently voted as a united block against Democratic priorities, up to and including the state budget. When the House was temporarily tied at 54-54 earlier this year, Hall proved a thorn in the side of House Speaker Joe Tate (D-Detroit), effectively putting the chamber in gridlock for the first four months of 2024.

Senate Majority Leader Winnie Brinks offered Hall her partnership in a statement Thursday afternoon.

"Caucus leaders in the majority are charged with both ushering through a productive legislative agenda and upholding the integrity of the institution we hold dear. I am proud that this has been our practice over the past two years, and I see no reason why that should change," she said. "I extend my congratulations to Speaker-elect Hall and offer him my partnership in running a legislature that effectively serves the people of Michigan."

ABC of Michigan congratulated Hall on his speakership in a statement Thursday afternoon.

"Speaker-elect Hall has been a champion of the merit shop philosophy during his tenure in the House of Representative," Shane Hernandez, president of ABC of Michigan said. "We look forward to working with the speaker-elect to close the talent gap in construction trades and to secure a prosperous future for the State of Michigan."

Governor Gretchen Whitmer also congratulated Hall and House Republicans in a statement issued Thursday.

"As governor, I’ve signed more than 1,400 bipartisan bills and enacted six balanced budgets. I’m willing to work with anyone who is serious about solving problems, and I look forward to collaborating with the incoming majority on our shared goals from infrastructure to economic development," she said. "Let’s keep centering our shared priorities – costs, roads, housing, economic development – and make Michigan a better state to live, work, and invest."

Next term, Hall said he wanted to prioritize road funding, saying that he was confident that Whitmer would be willing to work on the issue with the Republicans.

"Whitmer ran on fixing the roads," Hall said. "We need to prioritize how to permanently fund our roads. We need to do that for our local roads and bridges."

Whitmer and majority Republicans in her first four years could not come close to figuring out how to raise more revenue for roads. This term, her fellow Democrats – so far, with seven weeks remaining in the year – have done nothing on the subject even though they have the majority.

Other priorities include reducing the size of the state budget and the policy objectives outlined in the Republican Mission for Michigan plan put out before the election (See Gongwer Michigan Report, September 4, 2024).

Hall said he hoped to move forward in ways that would garner bipartisan support.

"As we’re working forward in the House, where there’s alignment with the Mission for Michigan that we’ve laid out, we’re going to make a lot of progress," he said.

Rep. Bryan Posthumus (R-Cannon Township), the current minority floor leader, was elected as majority floor leader. He was elected to the House in 2020.

"It’s imperative that we bring decorum back to the House floor," Posthumus said. "For too long, we’ve let rhetoric run the day throughout our entire country, and it’s my hope that we can calm the tempers a little bit and get back of statesmanship."

The rest of the Republican leadership team includes Rep. Rachelle Smit (R-Shelbyville) as speaker pro tempore, Rep. Jay DeBoyer (R-Clay) as associate speaker pro tempore, Rep. Brian BeGole (R-Perry) as assistant majority floor leader, Rep. Mike Harris (R-Waterford Township) as majority whip, Rep. Joe Aragona (R-Clinton Township) as deputy whip, Rep. Ken Borton (R-Gaylord) as caucus chair and Rep.-elect Nancy Jenkins-Arno of Clinton as caucus vice chair.

Rep. Bill Schuette (R-Midland) was notably absent from House Republican leadership for the next term. He was the chair of the House Republican Campaign Committee this term. With the departure of Sen. Kristen McDonald Rivet (D-Bay City) to Congress, the Senate will have an open seat sometime early next year (See Gongwer Michigan Report, November 6, 2024). Schuette is widely expected to run in the special election.

"We just got Leader Hall elected, and then we’ve got deer season coming up. We’ve got lame duck," Schuette said. "I was proud to chair the campaign effort, and there’ll be time for discussions about elections."


Bills Introduced to Amend Paid Sick Leave, Minimum Wage Laws
Stakeholders have been clamoring for lawmakers to address Michigan’s gradual increase in the minimum wage and back a move to eliminate the lower wage for workers who earn tips as well as the requirement for workers to accrue paid time off, which is set to go into effect next year.

Some businesses remain worried that the laws approved by the high court in Mothering Justice v. Attorney General (MSC Docket No. 165325) would be catastrophic on the wage and sick time fronts and want the Legislature to make changes.

A bipartisan bill package was introduced Thursday that would do just that.

Rep. Graham Filler (R-Duplain Township) and Rep. Nate Shannon (D-Sterling Heights) co-sponsored HB 6056 and HB 6057, which would modify the laws.

"This is, to me, the No. 1 issue in the state of Michigan right now, form a policy-that-needs-to-get-done-in-lame-duck standpoint," Filler said in a statement. "It’s going to blow up the restaurant industry, small businesses and the business atmosphere in Michigan in general."

Business groups applauded the legislation as a good first step.

"While the bill that was introduced is limited in scope, it is a good first step toward making sure the Earned Sick Time Act is workable for employers and employees alike," Wendy Block, senior vice president of Business Advocacy at the Michigan Chamber of Commerce. "Absent action by the Michigan Legislature, employers will be forced to make drastic changes to their paid time off polices – even if they have a policy that meets or exceeds what’s required under the Act. While employers will be forced to make significant changes, it’s employees who will ultimately lose."

Advocates are asking lawmakers to exempt employers with paid leave policies that meet or exceed the number of hours required under the act, add a small employer exemption or expand the current small employee threshold, require notification prior to the start of the shift, remove language allowing a private right of action and reputable presumption and allow employers to frontload time off to avoid complicated accruals and allow for more flexibility.

"Our region’s businesses call on our legislators to take immediate action and draft clear, reasonable, and flexible legislation," said Caitlyn Stark, president and CEO of Traverse Connect in a statement. "Our business owners agree that this is not a partisan issue – without action, there will be devastating effects on the sustainability and growth of their businesses, which will cascade to the individuals and families dependent on their success."

Other Republican lawmakers pushed for the Legislature to address the issue Thursday.

"We have to solve this issue," Rep. Bill Schuette (R-Midland) said. "There is not a week that goes by where I don’t get multiple outreaches from my local small businesses and restaurants … We don’t want to be paying $35 for a slice of pizza and having everything be just a quick serve."

House Minority Leader Matt Hall (R-Richland), the speaker-elect, also said the issue should be a priority, calling it a crisis for the restaurant industry.

"We need to act on that," he said. "We also need to look at this paid leave program that the court is forcing on us, and we have to say, ‘What are the unintended consequences for the workers?’… My hope is to do it now. I think this is the biggest thing in the state right now to face in lame duck."

House Speaker Joe Tate (D-Detroit) has not given any indication of what the House’s priorities will be before the end of the year.


Michigan House Only Chamber to Flip from D To R In Country
Republicans may have made gains in state Legislatures across the country, but Michigan is the only state that saw a legislative chamber change partisan hands in the Nov. 5 election, based on information from the National Conference of State Legislatures (NCSL) and GOPAC, a pro-Republican political action committee that tracks legislative races across the country.

NCSL is reporting that – while Democrats lost control in the Minnesota House – the split is now even 67-67. But Republicans netting four seats in the Michigan House resulted in the GOP taking back control, and that’s the only place where a flip occurred.

In Maine, Senate and House Republicans bolstered their numbers, but Democrats will still retain majorities in both states, GOPAC reported.

And in Pennsylvania, Senate Republicans kept a 28-22 majority and the House majority remained 102-101 in favor of the Democrats, local media is reporting.

In Alaska, the Senate and House is projected to continue to be led by bipartisan coalitions, GOPAC reported.


DCD IS A FULL-SERVICE, BI-PARTISAN, MULTI-CLIENT LOBBYING FIRM

REMEMBER ALL OF DCD’S SERVICES:

***Talk to us about REFERENDUMS & BALLOT INITATIVES***

**WORK WITH US ON LOCAL LOBBYING & DEVELOPMENT PROJECTS**

***CAMPAIGN SIGNATURE GATHERING***

***ECONOMIC DEVELOPMENT FUNDING: GRANTS – CDBG’S – BROWNFIELD – TIF’S***

***FEDERAL, STATE, & LOCAL REGULATORY CHALLENGES***

OUR TEAM LEVERAGES OUR MUNICIPAL CONTACTS AND ASSETS AND HELPS INDIVIDUALS AND COMPANIES NAVIGATE THROUGH ANY REGULATORY ISSUES!  WE SPEAK THE DUAL LANGUAGE OF BUSINESS & GOVERNMENT THAT HELP YOU TRANSLATE YOUR VISION INTO REALITY!


ARTICLES OF POLITICAL INTEREST:

A Warning for Michigan Drivers: It’s Peak Season for Deer-Car Collisions

Michigan Worked to Speed Up Election Results. Here’s Why It Still Took A While

Michigan Remains a Purple State, But Change Could Be Coming

Arab Voters in Michigan Speak Out After Harris Election Loss: "Wanted to Send a Message"

What a Second Donald Trump Presidency Means for Michigan’s Environment


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 Voters Overwhelmingly Rejected New Marijuana Business Proposals

Howell Marijuana Dispensary Narrowly Fails

Local Cannabis Firm Pushes Back Against "Defamatory" Allegations from State Regulators

MI Court Prohibits Sale of Illegal Marijuana in a Ruling Straight Out of "Duh" Magazine

Detroit Wants to Restrict Where Weed Can Be Advertised


Doing Things Differently

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.

Dunaskiss.biz | 248.693.1391

Late-October 2024 Newsletter


DEMS SHATTER TV AD RECORDS FOR STATE HOUSE: ACE IN THE HOLE OR LIGHTING MONEY AFLAME?
Advertising on television, radio, streaming and digital for Democratic candidates for the state House is on track to nearly triple this year from 2022, while ad spending for Republican candidates will likely hold steady.

A Gongwer News Service analysis of data from AdImpact, which tracks advertising, shows that Democrats spent $9.5 million across 23 seats in 2022 compared to $6.2 million by Republicans on 22 seats.

As of this week, spending so far and reservations for Democratic candidates is $25.6 million to $5.1 million for the Republicans across 14 seats.

It appears the national funders who poured millions into the Michigan Senate races in 2022 reallocated those funds into the House races for 2024.

The most dramatic strategic change is that Democrats have targeted the extra resources into expensive broadcast advertising in the Detroit television market this year. In 2022, there were no broadcast ads in the Detroit market for the House. There are 56 House districts that fully or partially sit within the Detroit market, meaning an ad for a House race is only relevant for 1/56 of those watching.

Republicans this year have avoided the expensive Detroit market and instead targeted their broadcast advertising on six districts outside of the Detroit market where advertising is cheaper and dollars go further.

Additionally, because nearly half the Democratic spending is coming from the Michigan Democratic Party, the actual advantage in ads is not as lopsided as the dollars would make it seem. Ads purchased by candidate committees or their caucus PACs are cheaper and carry greater weight. Though it’s still a decided Democratic advantage.

From a gross ratings standpoint, the measure of how many times an ad actually airs, Democrats have a decided edge in five of these six races, the one exception being the 103rd District race between Rep. Betsy Coffia (D-Traverse City) and Republican Lisa Trombley of Traverse City.

In total across the six races, as of this week Democrats had 35,164 gross ratings points to 22,846 for the Republicans, according to AdImpact.

That is a big change from 2022 when statewide, Republicans had 21,616 gross ratings points to 21,389 for the Democrats in House races. Republicans aired nearly double the ads in the Coffia seat in 2022 as Democrats based on gross ratings points and had the edge in the 109th District seat won by now-Rep. Jenn Hill (D-Marquette) but lost both.

Democrats have spent and reserved a total of $15 million on Detroit broadcast television for seven candidates. It’s an astounding outlay given the small nature of a House seat and the challenge of competing against the blitz of commercials in the presidential, U.S. Senate and 7th and 10th U.S. House districts.

"How many people are they reaching because it’s one big media market in southeast Michigan? Hopefully that’ll be a good decision, it won’t be confusion for people where they see a whole bunch of candidates on these commercials," said former House Minority Leader Chris Greig, a Democrat, during a recent episode of the MichMash podcast. "I think it’s almost to the point where you have to do it. We’ll see. But I think it’s digital that’s what’s taken over because you can target it so much better."

Greig said she is interested to see if the Democratic advantage on broadcast in the Detroit market helps with straight ticket voting.

Former House Speaker Jase Bolger, a Republican, said during the same MichMash episode that it’s a big outlay of cash to reach such a small slice of the viewership.

"If you’re buying TV, you’re buying to advertise in 50 House seats," he said, quipping that for what the Democrats have spent in the Detroit market they might be able to buy the TV station in Marquette.

Bolger also noted the challenge of getting an ad for a state House candidate to stand out amid the noise.

Data from AdImpact shows that as of Friday, total spending on the presidential, U.S. Senate, Michigan Supreme Court and 7th U.S. House and 10th U.S. House races in the Detroit market since Labor Day totals $217.5 million with a combined 211,087 gross ratings points.

With an average of about 2,268 gross ratings points behind each state House ad in the Detroit market, that means only one out of 100 political commercials – at best – is for a single state House race.

"Is that spending scary? Absolutely," Bolger said. "Are Democrats going to spend way more than Republicans for the state House this time? You bet. But there are a lot of people who make a decision on a state House level because they know somebody, they like somebody, they met somebody."


189 TAX INCREASES, 12 MARIJUANA PROPOSALS ON NOVEMBER BALLOTS
Property tax increases for roads and school infrastructure face many voters across the state in the November 5 election.

Voters also will decide whether to authorize marijuana business in 12 cities or townships.

A Gongwer News Service analysis of ballots across the state found a total of 189 proposed property tax increases and 208 proposal property tax renewals for school districts, local governments and other taxing authorities.

There are 30 proposed tax increases for roads, an increasingly popular option among cities and townships given the lack of action at the state level to increase funding for local roads.

There are also 29 school bond proposals among 28 school districts seeking voter approval for borrowing to build or renovate school buildings and raise property taxes to repay the bonds. Among the largest ones:

L’Anse Creuse Public Schools (Macomb): $188.7 million
Crestwood School District (Wayne): $121 million
Lake Fenton Community Schools (Genesee): $68.25 million
Carman Ainsworth Community Schools (Genesee): $65.2 million
Marshall Public Schools (Calhoun and Jackson): Two bonds, one for $53.18 million and another for $37.07 million
Baldwin Community Schools (Lake and Newaygo): $48.8 million
Sault Ste. Marie Area Schools (Chippewa): $43.61 million
Plainwell Community Schools (Allegan, Barry and Kalamazoo): $39.84 million
Swartz Creek Community Schools (Genesee): $38.8 million

Voters have increasingly rejected school bond proposals, particularly in more rural, conservative areas, in recent years. Whether that pattern continues will be closely watched.

There’s a larger than usual number of requests for new sinking funds – millages school districts can seek for maintenance, infrastructure, transportation, technology and security needs. Voters in 18 school districts will decide whether to authorize new millages.

Of the 40 proposed tax increases for public safety services, 18 are for fire protection, seven are for emergency medical services, six are for fire protection and EMS, five are for police, two are for 9-1-1, one is for emergency management, and one covers all public safety functions.

There’s also nine millage increase proposals for libraries, 17 for parks and recreation and 10 for senior services.

Voters in five townships and five cities will decide whether to authorize marijuana businesses in their communities: Bedford Township in Monroe County, Clawson, Howell, Kenockee Township in St. Clair County, Lathrup Village (which has a two-part vote), Lodi Township in Washtenaw County, Mason, Muskegon Heights, Niles Township in Berrien County and Tobacco Township in Gladwin County.

Royal Oak Township in Oakland County will vote on whether to prohibit marijuana businesses.

For a complete and sortable list of all proposals, go to Gongwer’s Millage Monitor, which provides a tally of all types of proposals and includes an archive back to 2018. The monitor will be updated following the election to show which proposals passed and which ones failed.


TOP 10 STATE HOUSE DISTRICTS LIKELY TO FLIP
Campaign leaders are making final decisions on where to invest the last batches of campaign cash available into the race for House control, and those decisions have produced some movement in our latest list of the top 10 seats most likely to flip.

Both Democrats and Republicans have reallocated resources as Democrats seek to hold onto their 56-54 majority, and Republicans scrounge to find two seats they can flip red to seize control.

Democrats have outspent Republicans on television, radio and digital/streaming, $17.3 million to $3.85 million between the August primary and Tuesday in 13 key districts, according to data from the AdImpact tracking firm. That’s an astounding gap though $9.6 million of the gap stems from Democrats pouring $10.6 million so far into seven House seats in the Detroit media market to $1 million for the Republicans. Democrats have paid for expensive Detroit broadcast advertising. Republicans have not.

In six seats elsewhere in the state, the Democratic advertising advantage at this point is $6.7 million to $2.8 million, still lopsided, but more manageable for the Republicans.

That’s especially so when looking at gross ratings points instead of dollars. Much of the Democratic dollar advantage is from Michigan Democratic Party spending, but those dollars don’t go as far as funds from candidates and the caucus PACs. In these six races, Democratic ad spending has yielded 35,164 gross ratings points so far to 22,846 for the Republicans, meaning that while total Democratic spending is 239% greater than total Republican spending, the actual ad advantage is 54 percent more.

Of course, television is far from everything. There’s mail and the bread and butter of a state House campaign: door-to-door work.

This list might look different if ranking only based on environment or only based on candidate quality.

If only environment mattered, the order might be 58, 27, 55, 54, 61, 44, 109, 31, 46 and 103.

If we ranked based on the political strengths of the challenger, the order might be 83, 46, 109, 44, 58, 54, 103, 27, 31, 55.

But in the end, it’s a mixture of both. With that, here’s our latest list:

1. (UNCHANGED) CHURCHES, LINTING TO THE WIRE: There is a fundamental reason why we have ranked the race between Rep. Jaime Churches (D-Wyandotte) and Republican Rylee Linting of Wyandotte in the 27th District number one for 10 weeks: Churches has the district where former President Donald Trump did the best of any seat held by a first-term Democrat.

That hasn’t changed, and thus, this race remains at the top.

Trump won this seat by four points in 2020 and eight points in 2016. When Churches won her first term in 2022, Governor Gretchen Whitmer carried the district by 10.5 points. There could be 10,000 people voting in two weeks who didn’t vote in 2022 and are seeing Churches’ name on a ballot for the first time.

Downriver voters, however, have a long history of splitting their tickets, and Republicans quietly acknowledge Churches has run a good incumbency program. Linting is a political newcomer, and Downriver voters tend to like their incumbents, provided they know them. Ideology is less important.

Democrats have hammered Linting on abortion.

2. (UNCHANGED) IS IT SHANNON’S OR ROBINSON’S NEIGHBORHOOD? There’s a fundamental reason why this race for the 58th District has sat at No. 2 on our list for 10 weeks. Shannon has the district where Trump did the best of any seat held by a Democrat. We continue to rank Shannon a notch below Churches because unlike Churches, he’s won election three times, including in 2020 when Trump won his (slightly different shaped) district. Trump carried this seat by 6 points in 2020 and 10 points in 2016. The assessment of Republican challenger Ron Robinson of Utica depends on who’s doing the talking. Some say he has hit the doors hard and positioned himself well. Other sources say it’s not clear that’s the case.

It’s worth noting in the "who’s in bigger trouble, Churches or Shannon" debate that Democratic ads (both spent and future reservations) total $3.1 million for Shannon and $1.7 million for Churches. That Democrats have spent $2 million so far and have another million queued up speaks volumes about their concern level.

But Shannon has overcome top of the ticket drag before.

3. (UNCHANGED) DEM CONFIDENCE HIGH ON MAHONEY OVER SCHMALTZ: Based on the confidence emanating from Democratic ranks, if they were drawing up this list, they might make Rep. Kathy Schmaltz No. 1. Jackson Mayor Daniel Mahoney was one of the stronger recruits of the cycle for either party.

The 46th District is about as close to a 50/50 district as it gets. In 2020, Trump carried it by 0.26 percentage point while U.S. Sen. Gary Peters (D-Bloomfield Township) won the seat by 2 points. In 2016, Trump had a 1.8-point victory margin. So, this should be a level playing field where candidate quality helps.

Republicans have battered Mahoney with a series of ads on his record and other issues.

There are two big unknowns owing to Democrats abandoning this seat in 2022 and Schmaltz getting a free pass: how exactly does this district perform under the 2021 map that paired Democratic Jackson and Chelsea with Republican suburbs and rural areas in between, and how good a candidate is Schmaltz. Had this been the matchup in 2022, with Whitmer winning the district by 11 points, it’s easy to see how Mahoney would have won.

Democrats have hit Schmaltz hard on abortion and now with a new ad about her votes against legislation expanding the statute of limitations in sexual assault cases.

Republicans have scoffed at the Democratic TV spending in the Detroit market, but another point in Mahoney’s favor is the yawning chasm in TV spending in this district in the much cheaper Lansing market – $1.8 million by or on behalf of Mahoney to $633,000 by or on behalf of Schmaltz with another $800,000 reserved for Mahoney still to air to $250,000 for Schmaltz. This is one of the seats though where the Democratic Party ad dollars don’t go as far. Mahoney still has a big advantage in gross ratings points over Schmaltz but it’s not three-to-one, more like 58 percent.

4. (UP FROM 6) REPUBLICANS PUTTING MORE PRESSURE ON HAADSMA: The 44th District has rocketed up the list from No. 9 in September. We’ve elevated it for two reasons: signs of continued Republican ascendancy in Calhoun County and massive spending increases on advertising by both parties.

Haadsma, as a third-term incumbent seeking a fourth term, is facing a district that continues to shift toward the Republicans. Trump won it twice but by 1.34 points in 2016 and just 1.14 points in 2020. It’s notable that – unlike the Churches and Shannon districts – Trump didn’t have much reduction in his victory margin here between 2016 and 2020. That means a 2016-style environment where Trump wins or comes close to winning statewide may not make the difference it would with Churches and Shannon.

However, there is concern in Democratic circles that Trump may perform better here this time. If that’s the case, it puts more pressure on Haadsma and opens the door for Republican Steven Frisbie of Battle Creek. It’s also worth noting that Haadsma is facing his toughest challenger in a while. He beat the same Republican in 2018, 2020 and 2022, and that candidate was not well regarded.

Spending by or on behalf of Haadsma on advertising is $1.7 million since the primary to $544,000 for Frisbie. Another $800,000 is reserved for Haadsma compared to $300,000 for Frisbie, who currently at $882,564 spent or reserved in advertising leads all Republicans, even Schmaltz. That says a lot about the opportunity Republicans sense.

5. (DOWN FROM 4) HILL, BOHNAK GOING THE DISTANCE: This race in the 109th District between Rep. Jenn Hill (D-Marquette) and former television meteorologist Karl Bohnak of Negaunee remains competitive as ever. We’re only moving it down because of the combination of spending and favorable environment for the Republicans in the Haadsma district.

From an environment standpoint, this is a 50/50 district. It’s also one where Republicans have fared the same as Charlie Brown when Lucy holds and then yanks away the football. Marquette is a Democratic city and while the outlying areas have become Republican, this isn’t like other U.P. districts where it didn’t take much for them to flip solidly Republican.

This seat sits where it sits because Bohnak was a great recruit, someone whose years on television forecasting the weather put him in residents’ homes every day. Republicans have never fielded a strong candidate here, so this is a big change. Advertising spending is relatively even here, $1.1 million spent or reserved for Hill and $864,617 for Bohnak. The Republicans will take it.

Should Hill fall, there will be a lot of questions as to why Democrats spent $1.6 million trying to take out Rep. Jamie Thompson (R-Brownstown) in a Trump +7 district.

6. (UP FROM 7) IFFY ENVIRONMENT MOVES MILLER UP: Exiting the top five with Rep. Reggie Miller (D-Van Buren Township) in the 31st House District, the likelihood of seats flipping declines. But this is a presidential year with Trump on the ballot in an expected close race and we could see more voters come out of the woodwork.

So, Miller, despite not seeing as much spending from Republicans as some other seats, moves up to number six. This is because it is a (sort of) Downriver seat where there is some uncertainty on what voters show up. Still, President Joe Biden and 2016 candidate Hillary Clinton both narrowly won this seat in 2016 and 2020, respectively.

This race, as we’ve mentioned before, is also a rematch of the 2022 contest against Dale Biniecki of Raisinville Township.

There was considerable debate on if the 31st should be ranked above or below the 103rd. We decided the environment is more favorable for a potential upset in the 31st for the reasons described above compared to the 103rd, even with the considerable spending Republicans are doing in the northern Michigan seat.

Democrats have outspent Republicans here, $1.3 million to $179,000, so far with another $500,000 queued up, so the Democrats don’t appear to be taking this one for granted.

7. (DOWN FROM 5) COFFIA STILL IN THE MIX: What we have said about this seat from the beginning remains true: the top-of-the-ticket environment in the 103rd House District does not seem to support the unseating of Rep. Betsy Coffia (D-Traverse City).

But, it is still a seat Coffia won by a razor thin margin in 2022 and Republicans are spending hard for Lisa Trombley of Traverse City. Despite the trending in the Democrats’ direction, it is still a contender.

Trombley’s ads and mail here are interesting: she is encouraging Republicans to vote early. After attacking Coffia about holding out on voting for a financial disclosure requirement, she moved on to a television ad where she calls Coffia "nice" but says Democratic policies are bad for the state.

Coffia is hitting hard on the environment and abortion. She also uncorked a bruising ad against Trombley using her words against her. Trombley flubbed at a forum and said "northern Virginia" instead of "northern Michigan." Trombley is a Michigan native but worked near Washington, D.C., for decades before retiring to Traverse City. That could be a damaging mistake in the 103rd, where residents are no strangers to those moving into the area from out of state.

Republicans in raw dollars have spent the second most on advertising here of the 13 competitive districts, though still have been outspent, $697,000 to $519,000.

Should Republicans come up short of majority and lose here, there will be a lot of questions about why they dug in so deep. Yes, Coffia had the closest win of any state House race in 2022 but the trend in this district is clearly blue.

8. (UP FROM 10) DEMS DRAMATICALLY UP THE ANTE AGAINST STEELE: Democrats must see something in the 54th House District where they are trying to unseat Rep. Donni Steele (R-Orion) with Democrat Shadia Martini of Bloomfield Hills. Outside groups have also gotten involved in spending for Martini.

In a major move, the Michigan Democratic Party pulled $1.3 million in advertising reservations from the Thompson district and reallocated it to help Martini. Two new ads launched attacking Steele this week (see related story). This doubled the money spent or reserved to help Martini in the district to $2.7 million. Republicans have just $219,000 spent or reserved for Steele.

The environment in Oakland County is likely a positive for Democrats. It is a rematch, and Steele is now an incumbent, a benefit for Steele. But Democrats are hoping to get some more magic out of Oakland, a one-time Republican stronghold that has moved fiercely to the left since 2016.

Vice President Kamala Harris will need to run up the score here to provide some lift for Martini. A two-point win in the district, like Biden’s 2020 margin, won’t cut it.

9. (DOWN FROM 8) STEADY AS SHE GOES IN 61ST: The story for Rep. Denise Mentzer of Mount Clemens hasn’t changed much since earlier this month. Republicans aren’t spending heavily – or even lightly, for that matter – for Robert Wojtowicz of Mount Clemens. Democrats and Republicans appear to agree she matches the district well and is doing the right things. It’s a seat in Macomb and in a Trump year, it stays on the board. But spending is incredibly lopsided for the Democrats and it’s hard to see anything shake loose.

Democrats continue to pour money into advertising here, perhaps mindful that this was a Trump +5 district in 2016 (though it was a much smaller Trump margin in 2020).

Democrats have spent more on advertising here than any other district though if the current reservations hold, Shannon will top Mentzer.

10. (DOWN FROM 9) GOP REMAINS HOPEFUL WITH BRANN: Although Republicans remain optimistic about former Rep. Tommy Brann of Wyoming against Rep. John Fitzgerald (D-Wyoming) in the 83rd House District, the environment here favors Democrats. Harris is expected to roll in the district, which was Biden +10 in 2020.

It’s very hard to imagine Brann overcoming that kind of tide.

However, Brann never fit the mold of a traditional Republican and his status as a popular former business owner in the district keeps him relevant. He is also working.

Many of the Kent County seats have dropped off the radar and are not competitive heading into November. Democrats admit this one is close. While Fitzgerald is working with a positive environment, Republican spending and enthusiasm won’t let him completely run away with it.

This one may come down to straight ticket voting. Brann needs voters to review individual races to have a chance.

Spending here is relatively light for a Grand Rapids area seat, $612,000 in advertising by or on behalf of Fitzgerald since the primary compared to $270,000 for Brann.


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