No. 35

STATE OF MICHIGAN

Journal of the Senate

95th Legislature

REGULAR SESSION OF 2009

Senate Chamber, Lansing, Tuesday, May 5, 2009.

10:00 a.m.

The Senate was called to order by the President, Lieutenant Governor John D. Cherry, Jr.

The roll was called by the Secretary of the Senate, who announced that a quorum was not present.

Allen—present Garcia—present Olshove—present

Anderson—present George—present Pappageorge—present

Barcia—present Gilbert—present Patterson—present

Basham—present Gleason—present Prusi—present

Birkholz—present Hardiman—present Richardville—present

Bishop—present Hunter—present Sanborn—present

Brater—present Jacobs—present Scott—present

Brown—present Jansen—present Stamas—present

Cassis—present Jelinek—present Switalski—present

Cherry—present Kahn—present Thomas—present

Clark-Coleman—present Kuipers—present Van Woerkom—present

Clarke—present McManus—present Whitmer—present

Cropsey—present

Pastor Darryl Gaddy of Victory Fellowship Baptist Church of Detroit offered the following invocation:

Father God, we thank You for this day. God, we thank You for the sunshine. We thank You for allowing us to rise. God, as we prepare to go into another session, we ask that You would touch and bless Your servants. God, we ask that You would bless those, the constituents, and those who are sharing in this session, who are called out and appointed to do Your business.

God, we thank You and we ask that You would just touch the hearts and the minds today of all those, the residents and the people of this great state of Michigan and the people of this great country, the United States.

God, we thank You, and we bless You. Now in the name of Christ, we pray. Amen.

The President, Lieutenant Governor Cherry, led the members of the Senate in recital of the Pledge of Allegiance.

Recess

Senator Cropsey moved that the Senate recess subject to the call of the Chair.

The motion prevailed, the time being 10:04 a.m.

10:30 a.m.

The Senate was called to order by the President, Lieutenant Governor Cherry.

During the recess, Senators Cherry, Gilbert, Jacobs, Allen, Richardville, Stamas, Patterson, Birkholz, Pappageorge, Jansen, Cassis, Van Woerkom, George, Kuipers, Kahn, Garcia, Brown, Jelinek and Bishop entered the Senate Chamber.

A quorum of the Senate was present.

Motions and Communications

The following communication was received and read:

Office of the Auditor General

April 30, 2009

Enclosed is a copy of the following audit report:

Financial audit of the Michigan Exposition and Fairgrounds Authority, a discretely presented component unit of the State of Michigan, for the period October 1, 2007 through September 30, 2008.

Sincerely,

Thomas H. McTavish, C.P.A.

Auditor General

The audit report was referred to the Committee on Government Operations and Reform.

The following communication was received:

Department of Transportation

April 28, 2009

Pursuant to Section 384(2) of Public Act 275 of 2008, attached is a report intended to fulfill the requirements of the following language:

The department will report on a quarterly basis to both the house and senate appropriations committees on any expenditures relative to the process identified in subsection (1).

Sec. 384. (1) The state transportation department is allowed to finish the Detroit River international crossing (DRIC) study provided that activity associated with finishing the DRIC study shall not bind the state in any way to construction. Certain preliminary activities which are necessary to prepare a proposal for a decision by the legislature are allowed as long as they do not bind the state. Those activities include all of the following:

(a) Applications for permits and approvals.

(b) Preliminary design engineering work.

(c) Preliminary utility planning and relocation.

(d) Preliminary financial and funding arrangements.

The report includes a listing of internal, consultant, and total study expenditures to-date through the end of the second quarter of Fiscal Year 2009, two charts detailing expenditures by year and source of funds, and monthly progress reports for the quarter detailing the history of the consultant team’s efforts on behalf of the department.

The Michigan Department of Transportation takes great pride in the way we are conducting the DRIC study. We urge you to visit the project Web site, www.partnershipborderstudy.com, where a wealth of additional information regarding study data and activities has been available since 2005. All material attached to this memo will be made available on the project Web site if not already posted.

If you have any questions, please feel free to contact me at (517) 373-3946 or DeCookR@michigan.gov.

Sincerely,

Ronald K. DeCook, Director

Office of Governmental Affairs

The communication was referred to the Secretary for record.

The following communication was received:

Department of Treasury

May 4, 2009

Please find attached one copy of the Personal Property Audit Quarterly Report for the period January 1, 2009 - March 31, 2009. The report is required by Public Act 261 of 2008, the General Government Appropriations Act. Section 947 of the Act provides, in part, as follows:

(1) Of the $4,749,200.00 included in part 1 for the revenue enhancement program, $4,249,200.00 shall be used for revenue collection enhancement activities including auditing functions.

(2) The department of treasury shall submit quarterly progress reports to the senate and house of representatives standing committees on appropriations subcommittees on general government and the senate and house fiscal agencies, regarding personal property tax audits funded under subsection (1). The report shall include the number of audits, revenue generated, and number of complaints received by the department related to the audits.

Fredrick Headen, Director

Bureau of Local Government Services

The communication was referred to the Secretary for record.

The Secretary announced that the following House bills were received in the Senate and filed on Thursday, April 30:

House Bill Nos. 4070 4367 4458 4459 4694 4695 4696 4700

The Secretary announced that the following official bills were printed on Thursday, April 30, and are available at the legislative website:

House Bill Nos. 4840 4841 4842 4843 4844 4845 4846 4847 4848 4849 4850 4851 4852 4853

4854 4855 4856 4857 4858 4859 4860 4861 4862 4863 4864 4865 4866 4867

4868

The Secretary announced that the following official bills were printed on Friday, May 1, and are available at the legislative website:

Senate Bill Nos. 493 494 495 496 497 498 499 500 501 502 503 504 505 506

507 508 509 510 511 512 513 514 515 516 517 518 519 520

521 522 523 524 525 526 527 528

House Bill Nos. 4869 4870

By unanimous consent the Senate proceeded to the order of

General Orders

Senator Cropsey moved that the Senate resolve itself into the Committee of the Whole for consideration of the General Orders calendar.

The motion prevailed, and the President, Lieutenant Governor Cherry, designated Senator Hunter as Chairperson.

After some time spent therein, the Committee arose; and, the President, Lieutenant Governor Cherry, having resumed the Chair, the Committee reported back to the Senate, favorably and with a substitute therefor, the following bill:

Senate Bill No. 373, entitled

A bill to amend 1893 PA 206, entitled “The general property tax act,” by amending section 24c (MCL 211.24c), as amended by 2003 PA 247.

Substitute (S-1).

The Senate agreed to the substitute recommended by the Committee of the Whole, and the bill as substituted was placed on the order of Third Reading of Bills.

The Committee of the Whole reported back to the Senate, favorably and with a substitute therefor, the following bill:

Senate Bill No. 374, entitled

A bill to provide for the recovery or replacement of durable monuments defining the Michigan-Indiana state boundary line; to create a commission; to provide for certain powers and duties of certain state officers and agencies; and to repeal acts and parts of acts.

Substitute (S-3).

The Senate agreed to the substitute recommended by the Committee of the Whole, and the bill as substituted was placed on the order of Third Reading of Bills.

The Committee of the Whole reported back to the Senate, favorably and with a substitute therefor, the following bill:

Senate Bill No. 375, entitled

A bill to amend 1990 PA 345, entitled “State survey and remonumentation act,” by amending section 12 (MCL 54.272), as amended by 2002 PA 489.

Substitute (S-2).

The Senate agreed to the substitute recommended by the Committee of the Whole, and the bill as substituted was placed on the order of Third Reading of Bills.

By unanimous consent the Senate returned to the order of

Third Reading of Bills

Senator Cropsey moved that the following bill be placed at the head of the Third Reading of Bills calendar:

Senate Bill No. 430

The motion prevailed.

The following bill was read a third time:

Senate Bill No. 430, entitled

A bill to amend 1950 (Ex Sess) PA 23, entitled “Airport zoning act,” (MCL 259.431 to 259.465) by adding section 24a.

The question being on the passage of the bill,

The bill was passed, a majority of the members serving voting therefor, as follows:

Roll Call No. 143 Yeas—36

Allen Clark-Coleman Jacobs Prusi

Anderson Clarke Jansen Richardville

Barcia Cropsey Jelinek Sanborn

Basham Garcia Kahn Scott

Birkholz George Kuipers Stamas

Bishop Gilbert McManus Switalski

Brown Gleason Olshove Thomas

Cassis Hardiman Pappageorge Van Woerkom

Cherry Hunter Patterson Whitmer

Nays—0

Excused—0

Not Voting—1

Brater

In The Chair: President

The Senate agreed to the title of the bill.

By unanimous consent the Senate proceeded to the order of

Introduction and Referral of Bills

Senator George introduced

Senate Bill No. 529, entitled

A bill to amend 1949 PA 300, entitled “Michigan vehicle code,” (MCL 257.1 to 257.923) by adding section 601e.

The bill was read a first and second time by title and referred to the Committee on Judiciary.

Senator George introduced

Senate Bill No. 530, entitled

A bill to amend 1927 PA 175, entitled “The code of criminal procedure,” by amending section 12e of chapter XVII (MCL 777.12e), as amended by 2008 PA 297.

The bill was read a first and second time by title and referred to the Committee on Judiciary.

Senator George introduced

Senate Bill No. 531, entitled

A bill to amend 2006 PA 384, entitled “Driver education provider and instructor act,” by amending section 37 (MCL 256.657).

The bill was read a first and second time by title and referred to the Committee on Transportation.

Senator Thomas introduced

Senate Bill No. 532, entitled

A bill to amend 1956 PA 218, entitled “The insurance code of 1956,” by amending section 2105 (MCL 500.2105) and by adding section 2111f.

The bill was read a first and second time by title and referred to the Committee on Economic Development and Regulatory Reform.

Senators Gleason, Clarke, Anderson, Olshove and Cherry introduced

Senate Bill No. 533, entitled

A bill to amend 1939 PA 3, entitled “An act to provide for the regulation and control of public and certain private utilities and other services affected with a public interest within this state; to provide for alternative energy suppliers; to provide for licensing; to include municipally owned utilities and other providers of energy under certain provisions of this act; to create a public service commission and to prescribe and define its powers and duties; to abolish the Michigan public utilities commission and to confer the powers and duties vested by law on the public service commission; to provide for the continuance, transfer, and completion of certain matters and proceedings; to abolish automatic adjustment clauses; to prohibit certain rate increases without notice and hearing; to qualify residential energy conservation programs permitted under state law for certain federal exemption; to create a fund; to provide for a restructuring of the manner in which energy is provided in this state; to encourage the utilization of resource recovery facilities; to prohibit certain acts and practices of providers of energy; to allow for the securitization of stranded costs; to reduce rates; to provide for appeals; to provide appropriations; to declare the effect and purpose of this act; to prescribe remedies and penalties; and to repeal acts and parts of acts,” (MCL 460.1 to 460.11) by adding section 9o.

The bill was read a first and second time by title and referred to the Committee on Energy Policy and Public Utilities.

Senators Anderson, Clarke, Olshove and Cherry introduced

Senate Bill No. 534, entitled

A bill to amend 1939 PA 3, entitled “An act to provide for the regulation and control of public and certain private utilities and other services affected with a public interest within this state; to provide for alternative energy suppliers; to provide for licensing; to include municipally owned utilities and other providers of energy under certain provisions of this act; to create a public service commission and to prescribe and define its powers and duties; to abolish the Michigan public utilities commission and to confer the powers and duties vested by law on the public service commission; to provide for the continuance, transfer, and completion of certain matters and proceedings; to abolish automatic adjustment clauses; to prohibit certain rate increases without notice and hearing; to qualify residential energy conservation programs permitted under state law for certain federal exemption; to create a fund; to provide for a restructuring of the manner in which energy is provided in this state; to encourage the utilization of resource recovery facilities; to prohibit certain acts and practices of providers of energy; to allow for the securitization of stranded costs; to reduce rates; to provide for appeals; to provide appropriations; to declare the effect and purpose of this act; to prescribe remedies and penalties; and to repeal acts and parts of acts,” (MCL 460.1 to 460.11) by adding section 9g.

The bill was read a first and second time by title and referred to the Committee on Energy Policy and Public Utilities.

Senators Barcia, Clarke, Anderson, Olshove and Cherry introduced

Senate Bill No. 535, entitled

A bill to amend 1939 PA 3, entitled “An act to provide for the regulation and control of public and certain private utilities and other services affected with a public interest within this state; to provide for alternative energy suppliers; to provide for licensing; to include municipally owned utilities and other providers of energy under certain provisions of this act; to create a public service commission and to prescribe and define its powers and duties; to abolish the Michigan public utilities commission and to confer the powers and duties vested by law on the public service commission; to provide for the continuance, transfer, and completion of certain matters and proceedings; to abolish automatic adjustment clauses; to prohibit certain rate increases without notice and hearing; to qualify residential energy conservation programs permitted under state law for certain federal exemption; to create a fund; to provide for a restructuring of the manner in which energy is provided in this state; to encourage the utilization of resource recovery facilities; to prohibit certain acts and practices of providers of energy; to allow for the securitization of stranded costs; to reduce rates; to provide for appeals; to provide appropriations; to declare the effect and purpose of this act; to prescribe remedies and penalties; and to repeal acts and parts of acts,” (MCL 460.1 to 460.11) by adding section 9q.

The bill was read a first and second time by title and referred to the Committee on Energy Policy and Public Utilities.

Senators Anderson, Clarke, Olshove and Cherry introduced

Senate Bill No. 536, entitled

A bill to amend 1939 PA 3, entitled “An act to provide for the regulation and control of public and certain private utilities and other services affected with a public interest within this state; to provide for alternative energy suppliers; to provide for licensing; to include municipally owned utilities and other providers of energy under certain provisions of this act; to create a public service commission and to prescribe and define its powers and duties; to abolish the Michigan public utilities commission and to confer the powers and duties vested by law on the public service commission; to provide for the continuance, transfer, and completion of certain matters and proceedings; to abolish automatic adjustment clauses; to prohibit certain rate increases without notice and hearing; to qualify residential energy conservation programs permitted under state law for certain federal exemption; to create a fund; to provide for a restructuring of the manner in which energy is provided in this state; to encourage the utilization of resource recovery facilities; to prohibit certain acts and practices of providers of energy; to allow for the securitization of stranded costs; to reduce rates; to provide for appeals; to provide appropriations; to declare the effect and purpose of this act; to prescribe remedies and penalties; and to repeal acts and parts of acts,” (MCL 460.1 to 460.11) by adding section 9j.

The bill was read a first and second time by title and referred to the Committee on Energy Policy and Public Utilities.

Senators Olshove, Clarke, Anderson and Cherry introduced

Senate Bill No. 537, entitled

A bill to amend 1939 PA 3, entitled “An act to provide for the regulation and control of public and certain private utilities and other services affected with a public interest within this state; to provide for alternative energy suppliers; to provide for licensing; to include municipally owned utilities and other providers of energy under certain provisions of this act; to create a public service commission and to prescribe and define its powers and duties; to abolish the Michigan public utilities commission and to confer the powers and duties vested by law on the public service commission; to provide for the continuance, transfer, and completion of certain matters and proceedings; to abolish automatic adjustment clauses; to prohibit certain rate increases without notice and hearing; to qualify residential energy conservation programs permitted under state law for certain federal exemption; to create a fund; to provide for a restructuring of the manner in which energy is provided in this state; to encourage the utilization of resource recovery facilities; to prohibit certain acts and practices of providers of energy; to allow for the securitization of stranded costs; to reduce rates; to provide for appeals; to provide appropriations; to declare the effect and purpose of this act; to prescribe remedies and penalties; and to repeal acts and parts of acts,” (MCL 460.1 to 460.11) by adding section 9l.

The bill was read a first and second time by title and referred to the Committee on Energy Policy and Public Utilities.

Senators Whitmer, Clarke, Anderson, Olshove and Cherry introduced

Senate Bill No. 538, entitled

A bill to amend 1939 PA 3, entitled “An act to provide for the regulation and control of public and certain private utilities and other services affected with a public interest within this state; to provide for alternative energy suppliers; to provide for licensing; to include municipally owned utilities and other providers of energy under certain provisions of this act; to create a public service commission and to prescribe and define its powers and duties; to abolish the Michigan public utilities commission and to confer the powers and duties vested by law on the public service commission; to provide for the continuance, transfer, and completion of certain matters and proceedings; to abolish automatic adjustment clauses; to prohibit certain rate increases without notice and hearing; to qualify residential energy conservation programs permitted under state law for certain federal exemption; to create a fund; to provide for a restructuring of the manner in which energy is provided in this state; to encourage the utilization of resource recovery facilities; to prohibit certain acts and practices of providers of energy; to allow for the securitization of stranded costs; to reduce rates; to provide for appeals; to provide appropriations; to declare the effect and purpose of this act; to prescribe remedies and penalties; and to repeal acts and parts of acts,” (MCL 460.1 to 460.11) by adding section 9m.

The bill was read a first and second time by title and referred to the Committee on Energy Policy and Public Utilities.

Senators Richardville, Gilbert, Stamas and Allen introduced

Senate Bill No. 539, entitled

A bill to amend 2007 PA 36, entitled “Michigan business tax act,” by amending section 457 (MCL 208.1457), as added by 2008 PA 86.

The bill was read a first and second time by title and referred to the Committee on Commerce and Tourism.

House Bill No. 4070, entitled

A bill to amend 1956 PA 218, entitled “The insurance code of 1956,” (MCL 500.100 to 500.8302) by adding section 2111b.