Legislative Update 1-24-25

Written by Derek Melot on January 24, 2025. Posted in Blog, Events, Legislative, MAC news, MACSC, Marketing, NACo

Michigan House passes minimum wage, sick time bills

Bills amending the state’s minimum wage and Earned Sick Time Act cleared the House this week with bipartisan support.

House Bills 4001 and 4002, by Rep. John Roth (R-Grand Traverse) and Rep. Jay DeBoyer (R-St. Clair), advanced by votes of 63-41 and 67-38, respectively. These bills were introduced and acted on quickly in the hopes of amending the acts before the Feb. 21 implementation date of the originally adopted legislation.

Minimum wage revisions

HB 4001 proposes several amendments to Michigan’s minimum wage law, including adjustments to wage rates while maintaining the restaurant tip credit. Under this system, restaurant servers will continue to rely on tips to supplement their base pay, a move that has sparked debate among workers’ advocacy groups and business organizations. Proponents argue the bill preserves an industry standard that protects restaurants and small businesses from additional costs, and servers who testified believe their tips allow for higher income than the minimum wage would.

For all other employers, the minimum wage would increase on Feb. 21 to $12 per hour and go up 50 cents per year on Jan. 1 of each year through 2029 and then be tied to the Consumer Price Index average annual percentage change for the most recent five-year period. The bill also allows employers to pay workers under the age of 20, while training for the first 90 days, seventy-five percent of the states minimum wage and to pay employees under the age of 18, seventy-five percent of the states minimum wage. MAC supports HB 4001.

Overhauling the Earned Sick Time Act

HB 4002, which seeks to amend the Earned Sick Time Act introduces a range of changes aimed at balancing employee rights and employer flexibility. MAC supports the changes proposed in HB 4002. Key provisions of the bill include:

Small Business Exemption: Businesses with fewer than 50 employees would be exempt from the law.
Employee Eligibility: The bill defines eligible employees, exempting independent contractors, out-of-state employees, seasonal workers (25 weeks or fewer), part-time workers (25 hours or less per week), and variable-hour employees.
Flexible Accrual Options: Employers would have two compliance pathways:
- Frontloading Model: Employers can provide up to 72 hours of sick time at the start of the year, with no carryover requirements.
- Accrual Model: Employees earn one hour of sick time for every 30 hours worked, with a cap of 72 hours annually. Carryover is limited to 72 hours unless the employer agrees to more and employers may opt to pay out unused time at year-end to avoid carryover.
Streamlined Administration: Employers may integrate sick time tracking with existing payroll systems and meet compliance by offering time through a general PTO bank.
Rate of Pay Clarifications: The bill specifies that sick time compensation excludes bonuses, tips, commissions, overtime pay, and holiday pay.
Employer Procedures: Employers can establish customary notice, documentation requirements, and disciplinary actions for noncompliance with policies.
Concurrency with Other Laws: Earned sick time can run concurrently with FMLA or ADA leave, and employees would have 15 days to provide necessary documentation.
Separation Payouts: Employers can pay out accrued sick time upon separation to avoid reinstatement obligations if the employee returns.

Advocates argue these bills strike a balance between supporting Michigan’s workforce and protecting small businesses from regulatory overreach. The Senate versions of these bills are markedly different than the House version, though no hearings or movement have been held on those bills.

HBs 4001-02 now head to the Senate. For more information on this issue, contact Deena Bosworth at bosworth@micounties.org.

Fiscal experts: 2025 is a great time to give local governments some options on funding

This year would be a great time for Michigan to tackle reform of local government finance, says the nonpartisan Citizens Research Council of Michigan in a new study.

The report, “It’s an Opportune Time to Tackle Local Government Finance Reform,” says, “During the upcoming Fiscal Year (FY)2025-26 budgetary debate about the amount of discretionary state revenues that will be shared with local governments, state policymakers should review the objectives of revenue sharing program, especially how its distribution formulas meet those objectives, in context of the state’s overall municipal finance system.”

This parallels MAC’s long efforts to reform county revenue sharing at the Capitol, funding that has lagged significantly against the effects of inflation in the 21^st century.

The report also states, “Michigan law restricts the taxes available to local governments to essentially the property tax. A city income tax and several minor taxes for counties are options, but not available to all local units. With the property assessment cap restricting growth in the property tax base, and the inability to levy non-property taxes, local governments have little option than to raise property tax rates or fees to sustain revenues over time.”

Finally, the authors recognize, “The fiscal stability of local governments is critical to Michigan’s economic well-being. Without alternative ways to raise revenues and lower their community’s property tax burden, local governments face significant challenges in maintaining their operations, offering the public services they are expected to provide and growing their local economies.”

For more information about MAC’s advocacy efforts in 2025, contact Director of Governmental Affairs Deena Bosworth at bosworth@micounties.org.

Final call on applications for MAC policy committees

County commissioners have just days left to apply for MAC’s five standing committees for 2025. Applications are due by Jan. 31, 2025. To apply, please email a completed application form to Deena Bosworth at bosworth@micounties.org.

To ensure continuity, commissioners who served on committees in 2024 and attended at least three meetings have been contacted to confirm their interest in continuing. New applicants are encouraged to apply, as MAC strives to maintain balanced regional representation across all committees. MAC’s president appoints all committee members.

MAC’s standing committees play a critical role in shaping the association’s policy platform and legislative advocacy. Each committee meets approximately six times per year, with the option for members to participate remotely via Zoom. Meetings will begin in February 2025.

The work of MAC depends heavily on the diverse perspectives and expertise of our member counties. Ensuring representation from every county across Michigan strengthens our policy positions and enhances our ability to effectively advocate for counties’ interests at the State Capitol and with federal officials.

Through input from these committees, the MAC Board of Directors develops legislative policies that address the unique needs and challenges facing Michigan’s counties. Your voice and expertise are vital to this process.

To see an overview of the committees and their work, click here.

Podcast 83: What are county boards messing up when trying to comply with the Open Meetings Act?

A new special episode of Podcast 83 features an expert on the Michigan Open Meetings Act (OMA) and the mistakes that county boards so often make in trying to comply with it.

Matt Nordfjord, managing partner of the firm of CST Municipal Law, recently led briefings on the OMA at MAC’s New Commissioner School on the trends he has seen in county compliance.

“One of the big takeaways I got from that is that we seem to have some additional education that would be warranted here on what is a public body subject to the Open Meetings Act,” Nordfjord told host Stephan Currie. “There’s been a couple of (court) cases within the last year that have to do with whether a committee, a subcommittee, a work group or even an individual meets the definition of a public body.”

Nor is this a new issue, Nordfjord said. “I was looking back through my notes since 1998 and there was a case that talked about this. And when a committee shifts from being purely advisory … there’s a three-step process. Step 1: It doesn’t matter what you’re calling it. … question is, is it a public body? And what we look to there is, did the Board of Commissioners delegate a governmental function to that individual or entity that they otherwise would be responsible for?”

In the end, Nordfjord said, a county’s wisest course is, if necessary, repeat the actions of subcommittees in a full board meeting in order to comply with OMA.

“You know, that’s one of the remedies for violations of the Open Meetings Act is re-enactment. So, it still may work functionally and be more efficient to have that entire discussion, even if you’ve had it behind closed doors first, again in the open session, so that you don’t have to deal with a potential challenge from an aggrieved party.”

Additional detail on these topics will appear in the February 2025 edition of Michigan Counties, MAC’s bimonthly magazine. The magazine is mailed directly to all county commissioners across Michigan.

NOTE: MAC emphasizes that this discussion does not constitute legal advice. Any member seeking such guidance can contact Nordfjord through the firm’s offices at 517-372-9000.

To view the full episode, recorded on Jan. 15, click here.

Previous episodes can be seen at MAC’s YouTube Channel.

And you always can find details about Podcast 83 on the MAC website.

Governor signs ground medical transport bill

Michigan will now participate in a federal reimbursement program for ground medical transportation after Gov. Gretchen Whitmer signed House Bill 5695 this week. MAC supported the legislation.

HB 5695, by Rep. Mike McFall (D-Oakland), requires the Michigan Department of Health and Human Services (MDHHS) to participate in the federal GEMT reimbursement program. MAC supports HB 5695. It cleared the Legislature in 2024 on a bipartisan basis.

The U.S. Centers for Medicare and Medicaid Services (CMS) oversees the Ground Emergency Medical Transportation (GEMT) program. GEMT provides funding and support to eligible health care providers through state agencies, aiming to ensure that individuals without reliable transportation can access emergency medical care. This program improves access to emergency services for Medicaid beneficiaries, bridging the gap between patients and health care facilities and facilitating timely care during emergencies.

Our state has the eighth-highest number of Medicaid enrollees in the nation. Local emergency services and ambulance providers are not fully reimbursed by Medicaid to cover the costs of medical transportation for this significant segment of our communities. The GEMT initiative in Michigan seeks to address health disparities, promote health equity, and reimburse local agencies and emergency services providers for serving vulnerable populations.

A $500,000 appropriation was secured in the FY25 state budget to assist MDHHS in starting up GEMT in Michigan.

State releases checklist on renewable energy siting process

The Michigan Public Service Commission (MPSC) has developed an online resource titled “Navigating the MPSC Renewable Energy Siting Process: A Checklist for Local Governments” to assist local leaders in understanding the sequence of actions involved in siting renewable energy projects either through a local compatible renewable energy ordinance (CREO) or through the MPSC certificate process.

This step-by-step guide is tailored to help local governments understand the critical stages in the process from initial project proposals to final approvals and provides clear guidance on the actions local governments may need — or want — to take at each step.

For more information, or to address questions regarding this resource, contact Deena Bosworth at bosworth@micounties.org.

State touts progress at halfway point of 5-year housing plan

Annual $50 million investments into a housing investment fund and streamlining the work for up to $118 million in regional housing efforts are just two of the accomplishments touted this week at the halfway point of Michigan’s first five-year Statewide Housing Plan.

Other actions noted by the state:

$110 million in one-time investments into Michigan’s Missing Middle Housing Program.
Legislation passed, championed by the Housing Michigan Coalition, giving local governments greater flexibility with payment in lieu of taxes (PILOTs).
The implementation of the COVID Emergency Rental Assistance program and the Michigan Homeowner Assistance Fund.
Statewide tax increment financing for housing production, authorized by the Legislature in 2023.
Michigan Association of Planning published Zoning Reform Toolkit.
Increased legislative cap on MSHDA’s single-family mortgages, paving way for expanded homeownership opportunities for Michiganders.
Record MSHDA investments in housing production – in two consecutive years.

Don’t miss our new video sharing some thoughts from statewide and regional leaders who have been integral to the success of the Plan.

In response to member input, housing has been a major topic for MAC in recent years:

In early 2023, MAC Executive Director Stephan Currie volunteered to serve on the Statewide Housing Partnership, a group advising the state on implementing the five-year housing plan.

At the 2023 Annual Conference, Yarrow Brown of Housing North provided an overview of what role counties can play in addressing housing needs.

In February 2024, Amy Hovey, executive director of Michigan State Housing Development Authority, visited MAC’s Podcast 83 to discuss ongoing efforts and the county role in them.

State sets environmental conference for March 12 in Marquette

The state will offer two days of “dynamic environmental training” in March at the Northern Michigan Environmental Conference.

Led by the Michigan Department of Environment, Great Lakes and Energy (EGLE), the event will be at Northern Michigan University in Marquette for two days, with the conference on March 12 and optional sector-specific workshops on March 13. Attendees will hear the latest on environmental regulations, permitting, resources and best practices.

Click here to register: https://egle.idloom.events/2025-NMEC. The conference fee is $90, while workshop fees range from free to $30.

Key dates for the event:

Lodging deadline: Feb. 17
Registration and cancellation deadline: Feb. 28

Among topics to be reviewed are water resource protection for developers, builders and Realtors; mining regulations and permitting; environmental emergency response; drinking water protection; water permitting; air quality issues; and materials management.