MAC working to improve bill on remote participation in meetings

A bill to allow remote participation during an open meeting, with a quorum present, was introduced last week by Rep. Julie Calley (R-Ionia).

House Bill 6283 would require written notice to all board members of an impending remote participation at least 18 hours before the meeting begins. However, remote participation could be denied if a member of the public body motions for a vote and a majority disapproves. In addition, remote participation would be limited to the lesser of 10 percent of the public body’s meetings per year or three in total.

Although this bill is a step in the right direction, according to MAC’s platforms, much work still needs to be done to ensure that the restrictions are not too onerous, and that gamesmanship can be avoided. Rep. Calley has assured MAC that she is open to changes to the bill.

MAC anticipates House committee action on the bill in the fall.

For more information on this issue, contact Deena Bosworth at bosworth@micounties.org.

Treasury releases new guidance on P&E reports for July deadline

The National Association of Counties reported this week that, “Treasury released updated reporting guidance for the Project and Expenditure (P&E) Reports and a new template for the Recovery Plan Performance Report (Recovery Plan) ahead of the July 31, 2022, reporting deadline. The new requirements outlined below will impact all counties regardless of population size and award amount.

“Key updates to the compliance and reporting guidance outlined by Treasury include:

1. Additional programmatic data for capital expenditures: When using Recovery Funds for capital expenditures projects, counties need to report the type of expenditure based on a list of enumerated uses. Examples of enumerated uses are COVID-19 vaccination sites, job and workforce training centers, and public health data systems. A full list of enumerated uses is available on pages 27 to 28 of the updated guidance.
2. Written justification for capital expenditures: Counties are required to provide a written justification for capital projects of any category that cost at least $10 million and for projects in the “other” (i.e., project not explicitly enumerated by Treasury) category that cost at least $1 million. Previously, counties needed to create a written justification for these projects but were not required to submit them as part of regular reporting.
3. Description of labor requirements for capital expenditures: Counties are required to provide additional labor reporting. For projects that cost at least $10 million, counties will need to report on the strength of the project’s labor standards, including information on the presence of a project labor agreement, community benefits agreement, prevailing wage requirement, or local hiring. This new required information is outlined under Infrastructure Project on pages 30-31 of the updated guidance.
4. Project information for broadband projects: The updated guidance requires counties to provide detailed project information for broadband infrastructure investments. Counties need to report what kind of technology is involved in the project (i.e., fiber optic cables, coaxial cables, etc.), the total miles of fiber deployed over the project, and the total number of funded locations served broken out by both speed of connection and type of location (i.e., residential, business, or community). This new required information is outlined under Broadband Projects on pages 32-33 of the updated guidance.
5. Moving of Recovery Plan Performance Report data into P&E Report: Under the updated guidance, some of the data that was previously only required for the Recovery Plan Performance Report (Recovery Plan) is now required for large counties (i.e., populations above 250,000 and/or above $10 million in awards) on their quarterly P&E Report. For example, large counties investing in housing security programs must now report the number of households receiving eviction prevention services. A full list of changes to programmatic data requirements for large counties is available on page 33 of the compliance and reporting guidance.
6. Updated template for Recovery Plan: The updated guidance also provides a template for the Recovery Plan due for large counties on July 31, 2022, reflecting the expenditure categories and other changes made by the Final Rule.”

For questions regarding COVID funds reporting, visit NACo’s information hub at https://www.naco.org/resources/featured/arpa-fiscal-recovery-fund.

MAC makes case for PPT reimbursement reforms

Deena Bosworth, left, discusses PPT reform legislation before a Senate committee this week as MML’s John LaMacchia and MTA’s Judy Allen look on.

MAC’s Deena Bosworth joined other proponents this week in testifying in favor of bills to fully reimburse local units for their losses associated with the expansion of Personal Property Tax exemptions that is estimated to hit locals with a $75 million loss annually.

On Wednesday, the Senate Finance Committee took its first look at Senate Bill 1060, by Sen. Mark Huizenga (R-Kent), SB 1061, by Sen. Kimberly LaSata (R-Berrien), and SB 1062, by Sen. Michael McDonald (R-Macomb), which would create a Local Government Reimbursement Fund to which the state would deposit $75 million annually.

The reimbursement package is a result of the House Bill 5351, by Rep. Steve Johnson (R-Kent), adopted in December 2021. That bill lifted of the PPT exemption threshold for small taxpayers from $80,000 to $180,000 in true cash value. Lawmakers did also vote for a $75 million reimbursement for the first year of this exemption scheme (which starts in 2023), but they did not provide for the years beyond.

Bosworth, MAC’s director of governmental affairs, led the testimony of the local government groups that have been working to resolve this problem.

MAC will continue to support the bill package and monitor its progress through the legislative process. A vote out of committee and the full Senate is expected before the Legislature breaks for summer.

For more information on this issue, contact Deena Bosworth at bosworth@micounties.org.

The Detroit Regional Chamber hosted its annual Mackinac Policy Conference this week on Mackinac Island. The event brings together business, community, and policy leaders in Michigan to have conversations on the biggest issues facing the state.

Steve Currie, MAC’s Executive Director and Deena Bosworth, MAC’s Director of Government Affairs, were also on the island having meetings with key legislators and county commissioners to ensure the interests of all Michigan’s 83 counties were a part of the conversation.

The legislature did not hold any committee meetings or votes this week because of the Mackinac Policy Conference. MAC is gearing up for a busy few weeks as the Legislature reconvenes to reach a consensus on the state budget before the deadline on July 1.

For more information contact Deena Bosworth at bosworth@micounties.org

Michigan Treasury releases 2022 PPT millage rates

Details released on getting second batch of federal ARP funds

The U.S. Treasury has begun the process of allocating the second tranche of ARP Recovery Funds.

The process for counties to receive the second installment of funding is provided below with the new SAM.gov registration requirements:

Section 603 of ARPA provides payments to eligible local governments in two tranches, with the second tranche payment being made no earlier than 12 months after the first payment.

Consistent with this requirement, Treasury expects to provide second tranche payments to local governments approximately 12 months after their first payment.

In the coming weeks, Treasury will open the submission portal in a phased approach, allowing counties to access the portal for 30 days prior to their second tranche payment date.

Counties will receive a notification from Treasury by email letting them know that they can enter the portal — it is very important to make sure that the assigned point of contact is still available to receive future communications.

The point of contact is the individual designated in the portal during the first tranche submission who will receive email notifications on submission status, including any issues found during the verification and communication regarding payments.

The individual entering the portal for the second tranche submission will be the same individual with the registered ID.me who submitted for the first tranche allocation.

If that individual is no longer with the county and you need to designate a new individual, email COVIDReliefITSupport@treasury.gov with the subject line “Entity Name – Update to Designated Individuals” and include the role that needs to be updated along with the full name, title, email and phone number of the new person designated.

After the email is received by the county, the point of contact will be able to update their entity information to include banking information in the portal.

In preparation for the second tranche payment, counties should ensure their SAM.gov entity registration is still active — all counties are required to have a SAM.gov registration to receive their second tranche payment.

Note that on April 4, 2022, the federal government changed service providers and stopped using the DUNS Number and began using the Unique Entity ID (UEI) in SAM.gov to identify entities.

All counties, even those already registered in SAM.gov, must validate their entity information through the new service provider.

Counties may need to provide additional supporting documentation through the new system.

The General Services Administration (GSA) released FAQs to support counties through this new process.

Counties are required to renew their SAM.gov registration every 12 months. If a county’s SAM.gov registration expired (12-month coverage) before it is due to receive its second tranche (and after April 4, 2022) the county is required to reactivate their SAM.gov registration, which will require them to adopt UEI (instead of a DUNS number) PRIOR to receiving their second installment.