Department of Agriculture Appropriations
On Wednesday, May 12, the Senate advanced HB 5875 (S-1) through the full Senate without amendments. The vote on the Senate Floor was unanimous in support of the budget without fees and with increases in the General Fund above the Governor's original recommendation, which includes funding for Right to Farm, fruit and vegetable and grain inspections and partial funding for MAEAP. There were concerns voiced by some Senators regarding where the additional revenue was from. These concerns reflected the same things heard on the House side several weeks earlier when an additional $900,000 was added to cover migrant labor housing and dairy program inspections.
The House procedurally non-concurred with the Senate changes and sent the bill to conference committee. Conferees include Representatives John Espinoza (D-Croswell), Gary McDowell (D-Rudyard), and Matt Lori (R-Constantine) and Senators Cameron Brown (R-Fawn River Twp), Ron Jelinek (R-Three Oaks), and Martha Scott (D-Highland).
Farm Bureau supports the Senate passed version of the MDA budget and urges the House to support the additional funding.
MFB Contact: Tonia Ritter, (800) 292-2680 ext. 2048
DNRE Appropriations
SB 1161, sponsored by Sen. Michelle McManus (R-Lake Leelanau) would provide FY 2010-11 appropriations for the Department of Natural Resources & Environment (DNRE).
The bill as passed the House DNRE Appropriations Subcommittee contains provisions to reduce the General Fund/General Purpose (GF/GP) spending by 7.2% from the FY 09-10 to a level of $40.8 million.
The total budget proposal is 1% less than FY 09-10 levels at $719.3 million. The proposal also includes a reduction of 33.5 Full Time Equivalents (staffing), a reduction of .9% from 09-10 levels to bring total staffing to 3,678.5.
Farm Bureau supports the transfer of $3.9 million from the Refined Petroleum Fund to the Michigan Department of Agriculture (MDA) to support the MDA’s motor fuel quality inspection program.
Currently the DNRE budget awaits further deliberation in conference committee. Conferees include Representatives Michael Lahti, Doug Bennett and Darwin Booher and Senators Michelle McManus (R-Lake Leelanau), Ron Jelinek (R-Three Oaks) and Liz Brater (D-Ann Arbor).
Farm Bureau has not taken a position on the overall budget bill.
MFB Contact: Matt Smego, (800) 292-2680 ext. 2044
Land Contracts
HB 6284, introduced by Rep. David Agema (R-Grandville), would amend the General Property Tax Act so that in cases involving a land contract, the taxable value is not adjusted until the title changes hands.
This bill has been referred to the House Tax Policy Committee.
Farm Bureau supports the concept of HB 6284.
MFB Contact: Rebecca Park, (800) 292-2680 ext. 2049
Tax Resolution
HB 6171, introduced by Rep. Kevin Daley (R-Attica), would amend the Tax Tribunal Act to require that all appeals before the tax tribunal would be heard and judged within 365 days. If judgment is not entered in this timeframe, the tribunal shall enter a judgment in favor of the petitioner.
This bill has been referred to the House Tax Policy Committee.
Farm Bureau supports the concept of HB 6171.
MFB Contact: Rebecca Park, (800) 292-2680 ext. 2049
Tax Tribunal Fees
HB 6172, introduced by Rep. Jim Stamas (R-Midland), would amend the Tax Tribunal Act to require the tax tribunal to award costs to the petitioner if a judgment is issued in favor of the petitioner.
This bill has been referred to the House Tax Policy Committee.
Farm Bureau supports the concept of HB 6172.
MFB Contact: Rebecca Park, (800) 292-2680 ext. 2049
Employee Meals
HB 6214, introduced by Rep. Mark Meadows (D-East Lansing), would amend the Use Tax Act to remove the tax exemption given to employee meals that are free or reduced price. There are several bills being introduced to remove so called “loopholes” that provide tax exemptions.
MFB Policy calls for increased efficiency and structural reforms to be evaluated and implemented prior to a discussion on taxes.
This bill has been referred to the House Tax Policy Committee.
Farm Bureau is opposed to HB 6214.
MFB Contact: Rebecca Park, (800) 292-2680 ext. 2049
Employee Misclassification
HB 5962, sponsored by Rep. Andrew Kandrevas (D-Southgate), would create additional penalties for the misclassification of employees for worker’s compensation insurance purposes. The legislation creates a presumption of guilt for an employer charged with misclassification of an employee and gives significant power to the Director of DELEG to subpoena, issue stop-work orders, and assess penalties for knowingly or unknowingly misclassifying one or more employees. There appears to be significant exposure for agriculture producers who employ independent contractors for such things as building construction and commodity transportation.
The bill is currently in the House Labor Committee.
Farm Bureau opposes HB 5962.
MFB Contact: Rob Anderson, (800) 292-2680 ext. 2046