No. 13

STATE OF MICHIGAN

Journal of the Senate

97th Legislature

REGULAR SESSION OF 2014

Senate Chamber, Lansing, Tuesday, February 11, 2014.

10:00 a.m.

The Senate was called to order by the President, Lieutenant Governor Brian N. Calley.

The roll was called by the Secretary of the Senate, who announced that a quorum was present.

Ananich—excused Hood—present Pappageorge—present

Anderson—present Hopgood—present Pavlov—present

Bieda—present Hune—present Proos—present

Booher—present Hunter—present Richardville—present

Brandenburg—present Jansen—present Robertson—present

Casperson—present Johnson—excused Rocca—present

Caswell—present Jones—present Schuitmaker—present

Colbeck—present Kahn—excused Smith—present

Emmons—present Kowall—present Walker—present

Green—present Marleau—present Warren—present

Gregory—present Meekhof—present Whitmer—present

Hansen—present Moolenaar—present Young—present

Hildenbrand—present Nofs—present

Pastor Ryan White of First Baptist Church of Stanton offered the following invocation:

Our Father, we humble ourselves before You this morning, and we thank You for our lives and our health and our gifts and abilities that You have given to us. We are so thankful for the many blessings that we have in our lives. We also thank You for the challenges and the difficulties that You give us that cause us to turn to You for the grace and wisdom and perseverance and daily strength that we all need.

We are thankful for the liberties that we have in our state and our nation, and we are thankful for each of the Senators and the Representatives whom You’ve given to represent us and to help the people of our state. We are thankful, Father, for Your word which guides us and for Your Holy Spirit who leads us and empowers us and humbles us and convicts us of our sins when we fail You.

We are thankful most of all today, Father, for the love You have for us in Jesus Christ, Your only Son, whom You sent to earth to live a perfect life and to give His life as a sacrifice for us in our place. We praise You for the raising of Jesus Christ from the dead. We believe that there is truly no hopeless situation because of the cross and the empty tomb of Jesus Christ, as long as we turn in faith and trust to You.

We thank You today, Father, for Your common grace, that ability that You give us to work with one another regardless of our faith, our ethnicity, our gender, or our background. I ask today, Father, that You would give Your grace, so that all who serve in Lansing would view their colleagues on both sides of the aisle as neighbors to be loved.

There is not one of us here for whom You did not die. All of us are in desperate need of Your grace. Father, our ultimate hope is not in policy, but we ask that You would give us the ability to make policies and laws that help and do not harm. Our ultimate hope is not in our government, but in You, Father. We ask that You would give us the wisdom to be a government that is just, merciful, humble, and one that acknowledges our dependence on You.

We all have our idols, Father, that have replaced You as the primary allegiance and relationship of life. I ask today, Father, that whether our idols be power or approval, comfort or control, that we would renounce these false and destructive ways of living and that we would repent and turn away from them; that we would turn to Jesus Christ to find the only God worth serving; the only One who came to serve and not be served; the One who sacrificed Himself so that others might find true life in Him.

May You move us, Father, toward You and draw us toward Yourself, that we may love You with all of our heart, our soul, our mind, and our strength. We ask that we would love our neighbors as we love ourselves, whether in this chamber or in our towns, cities, and communities.

It is in the name of Jesus Christ we pray. Amen.

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

Motions and Communications

Senators Hunter and Hopgood entered the Senate Chamber.

Senator Hopgood moved that Senator Young be temporarily excused from today’s session.

The motion prevailed.

Senator Hopgood moved that Senators Ananich and Johnson be excused from today’s session.

The motion prevailed.

Senator Meekhof moved that Senator Green be temporarily excused from today’s session.

The motion prevailed.

Senator Meekhof moved that Senator Kahn be excused from today’s session.

The motion prevailed.

The following communications were received and read:

Office of the Auditor General

February 4, 2014

Enclosed is a copy of the following audit report:

Performance audit of Computer Equipment Inventory, Department of Technology, Management, and Budget.

February 7, 2014

Enclosed is a copy of the following audit report:

Financial audit of the Michigan Economic Development Corporation, a discretely presented component unit of the State of Michigan, for the fiscal year ended September 30, 2013.

Sincerely,

Thomas H. McTavish, C.P.A.

Auditor General

The audit reports were referred to the Committee on Government Operations.

The following communication was received:

Domestic and Sexual Violence Prevention and Treatment Board

January 8, 2014

As per the Child Advocacy Center Act, Public Act 544 of 2008, the Michigan Domestic and Sexual Violence Prevention and Treatment Board is required to “provide an annual report of incomes and expenditures to the secretary of the senate and the clerk of the house of representatives.”

Please note that Public Act 544 of 2008 did not allow for expenditures from the fund prior to April 1, 2011. Attached please find a Statement of Revenues, Expenditures, and Changes in Fund Balances through year end September 30, 2013.

Please feel free to contact me for any additional information or questions. My direct line is (517) 241-5114. Thank you.

Sincerely,

Debi Cain

Executive Director

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 Wednesday, February 5:

House Bill Nos. 4567 4568 4825 5262 5263

The Secretary announced that the following bills were printed and filed on Wednesday, February 5, and are available at the Michigan Legislature website:

Senate Bill Nos. 753 754 755 756

House Bill Nos. 5275 5276 5277 5278

The Secretary announced that the following bills were printed and filed on Thursday, February 6, and are available at the Michigan Legislature website:

House Bill Nos. 5279 5280 5281 5282 5283 5284 5285

Senator Green entered the Senate Chamber.

Recess

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

The motion prevailed, the time being 10:08 a.m.

10:41 a.m.

The Senate was called to order by the President pro tempore, Senator Schuitmaker.

During the recess, Senator Young entered the Senate Chamber.

Messages from the Governor

Senator Meekhof moved that consideration of the following bill be postponed for today:

Senate Bill No. 64

The motion prevailed.

The following message from the Governor was received:

Date: January 30, 2014

Time: 10:25 a.m.

To the President of the Senate:

Sir—I have this day approved and signed

Enrolled Senate Bill No. 337 (Public Act No. 3), being

An act to amend 1941 PA 122, entitled “An act to establish the revenue collection duties of the department of treasury; to prescribe its powers and duties as the revenue collection agency of this state; to prescribe certain powers and duties of the state treasurer; to establish the collection duties of certain other state departments for money or accounts owed to this state; to regulate the importation, stamping, and disposition of certain tobacco products; to provide for the transfer of powers and duties now vested in certain other state boards, commissions, departments, and offices; to prescribe certain duties of and require certain reports from the department of treasury; to provide procedures for the payment, administration, audit, assessment, levy of interests or penalties on, and appeals of taxes and tax liability; to prescribe its powers and duties if an agreement to act as agent for a city to administer, collect, and enforce the city income tax act on behalf of a city is entered into with any city; to provide an appropriation; to abolish the state board of tax administration; to prescribe penalties and provide remedies; and to declare the effect of this act,” by amending sections 21, 27a, and 30 (MCL 205.21, 205.27a, and 205.30), section 21 as amended by 2006 PA 11, section 27a as amended by 2012 PA 211, and section 30 as amended by 2013 PA 133.

(Filed with the Secretary of State on February 6, 2014, at 2:36 p.m.)

Respectfully,

Rick Snyder

Governor

The following messages from the Governor were received and read:

January 24, 2014

I respectfully submit to the Senate the following appointments to office:

Michigan Economic Development Corporation Executive Committee

Thomas J. Moran of 11739 M68, Onaway, Michigan 49765, county of Cheboygan, succeeding Steven D’Arcy, is appointed for a term expiring April 5, 2016.

Cynthia J. Larsen of 408 Ruddiman Road, North Muskegon, Michigan 49445, county of Muskegon, succeeding John Rakolta, Jr., is appointed for a term expiring April 5, 2016.

January 30, 2014

I respectfully submit to the Senate the following appointments to office:

Michigan Strategic Fund Board of Directors

Jody DuPree Vanderwel of 2967 Lakeshore Drive N., Holland, Michigan 49424, county of Ottawa, succeeding Richard Rassel, Jr., is appointed for a term expiring December 31, 2017.

Terri Jo Umlor of 10973 N 31 3/4 Road, Kingsley, Michigan 49649, county of Wexford, succeeding Sabrina Keeley, is appointed for a term expiring December 31, 2015.

February 3, 2014

I respectfully submit to the Senate the following appointments to office:

Indiana-Michigan Boundary Line Commission

Christian F. Marbach of 70029 Monroe Street, Edwardsburg, Michigan 49112, county of Cass, representing surveyors from Cass City, is appointed for a term expiring at the pleasure of the Governor.

Michael J. Lodzinski of 10885 Emerald Court, Cement City, Michigan 49233, county of Hillsdale, representing surveyors from Hillsdale County, is appointed for a term expiring at the pleasure of the Governor.

John G. Kamer of 2670 Wolf Road, Eau Claire, Michigan 49111, county of Berrien, representing surveyors from Berrien County, is appointed for a term expiring at the pleasure of the Governor.

David W. Mostrom of 24591 Blue Heron Drive, Sturgis, Michigan 49091, county of St. Joseph, representing surveyors from St. Joseph County, is appointed for a term expiring at the pleasure of the Governor.

Edward W. Reed of 129 Crauns Beach Road, Quincy, Michigan 49082, county of Branch, representing surveyors from Branch County, is appointed for a term expiring at the pleasure of the Governor.

February 3, 2014

I respectfully submit to the Senate the following appointments to office:

Michigan State Council for Interstate Juvenile Supervision

John D. Tomlinson of 4119 Park Avenue West, Fort Gratiot, Michigan 48059, county of St. Clair, representing the judiciary, succeeding himself, is reappointed for a term expiring February 12, 2018.

Caroline D. Blinkhorn of 13457 Green Street, Grand Haven, Michigan 49417, county of Ottawa, representing victims, succeeding herself, is reappointed for a term expiring February 12, 2018.

February 7, 2014

I respectfully submit to the Senate the following appointment to office:

Interim Executive Director, Michigan Land Bank Fast Track Authority

Michele M. Wildman of 1483 North Morrish Road, Flint, Michigan 48532, county of Genesee, is appointed for a term commencing February 8, 2014, expiring at the pleasure of the Governor.

February 7, 2014

I respectfully submit to the Senate the following appointment to office:

Northern Michigan University Board of Control

Scott L. Holman of 5252 North River Road, Freeland, Michigan 48623, county of Saginaw, succeeding Stephen Gulis, Jr., is appointed for a term expiring December 31, 2018.

February 10, 2014

I respectfully submit to the Senate the following appointments to office:

City of Lincoln Park Financial Review Team

Michael J. Krouse of 1303 Alpine Drive, DeWitt, Michigan 48820, county of Ingham, State Treasurer’s designee, is appointed for a term expiring at that pleasure of the Governor.

Doug Ringler of 2624 S. Edgar Road, Mason, Michigan 48854, county of Ingham, Department of Technology, Management and Budget’s designee, is appointed for a term expiring at the pleasure of the Governor.

Frederick B. Headen of 5571 White Ash Lane, Haslett, Michigan 48840, county of Ingham, representing state officials with relevant experience, is appointed for a term expiring at the pleasure of the Governor.

Steven M. Schiller of 1828 Edgewater Street, Muskegon, Michigan 49441, county of Muskegon, nominee of the Senate Majority Leader, is appointed for a term expiring at the pleasure of the Governor.

Max R. Chiddester of 29908 Westbrook Parkway, Southfield, Michigan 48076, county of Oakland, nominee of the Speaker of the House, is appointed for a term expiring at the pleasure of the Governor.

February 10, 2014

I respectfully submit to the Senate the following appointment to office:

Workers’ Compensation Board of Magistrates

Luke A. McMurray of 4197 E. Cook Road, Grand Blanc, Michigan 48439, county of Genesee, succeeding John Buehler, is appointed for a term commencing February 18, 2014 and expiring January 26, 2015.

Sincerely,

Rick Snyder

Governor

The appointments were referred to the Committee on Government Operations.

By unanimous consent the Senate proceeded to the order of

General Orders

Senator Meekhof 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 pro tempore, Senator Schuitmaker, designated Senator Proos as Chairperson.

After some time spent therein, the Committee arose; and the Assistant President pro tempore, Senator Hansen, having assumed the Chair, the Committee reported back to the Senate, favorably and without amendment, the following bills:

Senate Bill No. 446, entitled

A bill to amend 1978 PA 368, entitled “Public health code,” by amending section 22210 (MCL 333.22210), as amended by 2011 PA 51.

Senate Bill No. 749, entitled

A bill to amend 1985 PA 87, entitled “William Van Regenmorter crime victim’s rights act,” by amending section 31 (MCL 780.781), as amended by 2009 PA 28.

Senate Bill No. 750, entitled

A bill to amend 1985 PA 87, entitled “William Van Regenmorter crime victim’s rights act,” by amending section 61 (MCL 780.811), as amended by 2009 PA 28.

The bills were placed on the order of Third Reading of Bills.

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

House Bill No. 4808, entitled

A bill to amend 1931 PA 328, entitled “The Michigan penal code,” by amending sections 16, 18, 200i, 204, 207, 209, 210, 211a, 316, 436, 520b, and 543f (MCL 750.16, 750.18, 750.200i, 750.204, 750.207, 750.209, 750.210, 750.211a, 750.316, 750.436, 750.520b, and 750.543f), sections 16 and 18 as amended by 2004 PA 213, sections 200i, 204, 207, 209, and 210 as amended by 2003 PA 257, section 211a as amended by 2004 PA 523, section 316 as amended by 2013 PA 39, section 436 as amended by 2002 PA 135, section 520b as amended by 2012 PA 372, and section 543f as added by 2002 PA 113.

The following is the amendment recommended by the Committee of the Whole:

1. Amend page 20, line 8, by striking out all of enacting section 1 and inserting:

“Enacting section 1. This amendatory act does not take effect unless Senate Bill No. 319 of the 97th Legislature is enacted into law.”.

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

Resolutions

Senator Meekhof moved that consideration of the following resolution be postponed for today:

Senate Resolution No. 34

The motion prevailed.

House Concurrent Resolution No. 19.

A concurrent resolution to urge the Congress of the United States to repeal section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Whereas, In response to the 2008 economic recession, the Dodd-Frank Wall Street Reform and Consumer Protection Act was enacted in July 2010 to increase accountability and improve transparency in the nation’s financial system. Among its provisions, section 1502 of the act creates new reporting requirements for publically traded companies that produce products containing gold, tin, tantalum, or tungsten, known as “conflict minerals.” These reporting requirements and their public disclosure are meant to deter the purchase of conflict minerals from the Democratic Republic of the Congo (DRC) and the surrounding nations of Central Africa Republic, South Sudan, Zambia, Angola, the Republic of the Congo, Tanzania, Burundi, Rwanda, and Uganda; and

Whereas, The final rules on section 1502, issued by the United States Securities and Exchange Commission (SEC), taking effect May 31, 2014, is exceedingly complex and detrimental to American manufacturers, creating new, overly taxing compliance costs, especially for American small businesses, as well as unrealistic and burdensome reporting requirements. The new rules require publically traded manufacturers to trace conflict minerals through their entire supply chain, all the way back to the smelter. The SEC estimates the initial cost of compliance to be between $3 billion and $4 billion, with annual costs thereafter between $207 million and $609 million. However, the National Association of Manufacturers estimates total costs to be $16 billion; and

Whereas, The SEC rule on conflict minerals jeopardizes Michigan’s unparalleled efforts to restructure, create an improved business environment, and recover jobs lost during the recent recession. According to the Bureau of Labor and Statistics, as of October of this year, our unemployment rate of 9 percent ranked 48th among the states, 1.7 percent higher than the nation’s average. Moreover, the stalwart of the Michigan economy—manufacturing—is still recovering. The state of Michigan condemns the human rights violations occurring in the DRC and surrounding nations. However, absorbing the exorbitant costs of complying with section 1502 will undermine our footing in the ongoing battle to grow manufacturing jobs; now, therefore, be it

Resolved by the House of Representatives (the Senate concurring), That we urge the Congress of the United States to repeal section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act; and be it further

Resolved, That copies of this resolution be transmitted to the President of the United States, the President of the United States Senate, the Speaker of the United States House of Representatives, the Chairman of the United States Securities and Exchange Commission, and the members of the Michigan congressional delegation.

The House of Representatives has adopted the concurrent resolution.

Pending the order that, under rule 3.204, the concurrent resolution be referred to the Committee on Government Operations,

Senator Meekhof moved that the rule be suspended.

The motion prevailed, a majority of the members serving voting therefor.

The question being on the adoption of the concurrent resolution,

Senator Meekhof moved that the concurrent resolution be referred to the Committee on Banking and Financial Institutions.

The motion prevailed.

Senators Booher, Colbeck, Kowall and Pappageorge were named co‑sponsors of the concurrent resolution.

Introduction and Referral of Bills

Senator Proos introduced

Senate Bill No. 757, entitled

A bill to create the security act for nuclear energy; and to clarify the rights and duties of officers providing security at nuclear generating facilities.

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

Senator Hildenbrand introduced

Senate Bill No. 758, entitled

A bill to amend 1974 PA 263, entitled “An act to permit counties to impose and collect an excise tax on persons engaged in the business of providing rooms for dwelling, lodging, or sleeping purposes to transient guests; to provide for the disposition of the revenues thereof; and to prescribe penalties,” by amending section 4 (MCL 141.864).

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

Senator Casperson introduced

Senate Bill No. 759, entitled

A bill to amend 1994 PA 451, entitled “Natural resources and environmental protection act,” by amending section 42501 (MCL 324.42501), as amended by 2004 PA 325.

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

Senator Green introduced

Senate Bill No. 760, entitled

A bill to make appropriations for the department of agriculture and rural development for the fiscal year ending September 30, 2015; and to provide for the expenditure of the appropriations.