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 


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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!


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