Gaylord/Otsego County Chamber of Commerce

Government Relations Update from Jamie Callahan

December 17, 2007

Legislature adjourns for 2007

After a lengthy session on Thursday, December 13^th, the Michigan legislature adjourned for the remainder of 2007. Both chambers will reconvene on Wednesday, January 9^th as required by the State Constitution.It is unknown whether any voting will be held that day or whether it will be more of a protocol day.Tentative session dates are scheduled for the following week, with session resuming on January 22^nd.

Phone Tax stripped from 911 Funding Bill

The legislature passed two bills which would allow the continuation of a surcharge on phone service to offset costs association with local 911 emergency services, as the current surcharge is set to expire at the end of the year.

Senate Bills 410 and 411 would lower the 911 surcharge on traditional "land line" telephones from the current 29 cents per month to 19 cents. The legislation then added the 19-cent surcharge to cell phones, which currently are not subject to the tax. The sunset for the surcharge extension would be Jan. 1, 2009.

A previous version of the proposal for the bills included a much larger tax, aimed at bringing in additional revenue for funding public safety services, commonly known as the phone tax.This language was removed from the bill, putting the funding formula more in line with the Senate passed versions.

Both bills have been ordered enrolled for presentation to the Governor for signature and can be viewed at www.mileg.org.

Mackinac Bridge Funding Bill Passes Senate

The Mackinac Bridge would see designated funding of $5.25 million a year for capital improvement projects under a bill passed by the Senate last week.Senate Bill 981 is sponsored Sen. Jason Allen.

The Mackinac Bridge Authority (MBA) has announced their intention to raise toll rates on the bridge from $2.50 to $4 for cars, $3 per axle to $5 per axle for trucks, and from $1.50 to $2 for commuters as early as January 1, 2008.

It is argued by the bill sponsor that the passage of this bill could stave off the need for the above mentioned toll increases.Currently, the Mackinac Bridge is solely funded by toll revenue.The reasoning by the MBA behind the toll hikes is the need for upwards of $300 million in structural repairs and improvements over the next 20 years.

Arguments were made in committee that the users of the Mighty Mac, be them businesses or local commuters, in particular, should not be the ones to shoulder the burden of repairing the bridge, but rather current funding programs originating from Washington or Lansing.

The Northwest Michigan Regional Chamber Alliance supported SB 981 in Senate committee.The bill has been referred to the Transportation Committee in the House, chaired by Rep. Hopgood, and can be viewed at www.mileg.org.

Water Bills Start Moving

Bills bringing Michigan into alignment with other Great Lakes states on water regulation moved forward as House and Senate committees passed bills that would ratify the Great Lakes – St. Lawrence River Basin Water Resources Compact.The compact will serve as the basis for legislation regulating water use and diversions of waters from the Great Lakes and connecting rivers.The agreement creates a resources management system that can be adopted by all the states in the Basin.

The differences between the House and Senate on the Compact bills, SB 212 and HB 4343, will be worked out on the floor before a House or Senate vote.The bills will most likely be worked on over the holiday break for action in January.

The remaining bills in both packages, Senate Bills 858-860 and House Bills 5065 – 5073 remain in committee and will continue to be discussed in that venue into 2008.All of the bills can be viewed at the Michigan Legislature website at www.mileg.org.