Around the Dome

by Del Chenault, Senior Vice President, Government Affairs
Scofes & Associates Consulting, Inc. (S&A)

February 4, 2003

MOLD LEGISLATION INTRODUCED IN HOUSE

This week, Rep. Chris Kolb (D)-Ann Arbor, introduced HB 4094, a bill aimed to require the state to identify toxic molds and to set recommended exposure standards. Further, the bill would require the Department of Community Health to outline health risk assessments associated with certain mold exposure as well as remediation plans to deal with a mold outbreak in buildings.

The bill calls for the Department to convene a task force within 90 days of passage that would advise the Department on the development of mold standards. The task force would be comprised of at least 23 individuals including health care, local schools, local health officers, medical experts, mold abatement experts, realtors, residential and comercial tenants, building owners, attorneys and environmental groups.

Under the bill, the Department would be required to consider certain scientific data, mold standards adopted by other authoritative bodies, as well as population subgroups which may be especially sensitive to mold exposure. Subgroups would consist of children, elderly, asthmatics, allergic individuals and other "immuned-comprised" individuals.

Further, the bill grants the Department power to adopt separate and different mold exposure standards for any building regardless of use.

A similar package of bills was introduced during the lame duck legislative session but was lost under the crush of last-minute bill action. SK&A will monitor the situation and will keep the membership informed of any developments.

GRANHOLM RECEIVES HIGH RATINGS

Results from the polling firm EPIC/MRA have given Governor Granholm a high performance rating a month into her new position.

In comparison to former Governor Engler's first month in office, Governor Granholm is proving she's more favorable to Michigan residents.

The poll taken during January 22 through January 27 polled 600 voters. Only nineteen percent felt her actions unfavorable. 39 percent of those polled feel Michigan is headed on the right track and 32 percent disagree.

Only a month into the new year those polled realize the budget deficit remains the most prominent feature of her duties.

NEW SENATE-HOUSE JOINT TASK FORCE FORMED

A committee was formed last week, with both House and Senate members, to focus on business competitiveness. The committee will hold hearings around the state and will examine issues relating to tax policy, regulations, technology, national trends, international trade and job competitiveness.

According to Michigan leadership, Legislators need to make Michigan stand out and remain one step ahead in the competitive market for job growth and economic development.

Those on the committee are: Senator Alan Sanborn (R) , Clark Bisbee (R) as co-chairs. Nancy Cassis (R), Laura Toy (R) , Mark Schauer (D), Ray Basham (D), Ken Bradstreet (R) Lorence Wenke (R), Bill McConico (D), and Alexander Lipsey (D).

LOSS OF NEW LEGISLATOR

Representative Jerry Kratz, one of the 2003-2004 54 member freshman class, passed away last Tuesday from an apparent heart attack.

Only 69, Mr. Kratz, a graduate of Wayne State University with a bachelors' degree in social studies and art also held a master's degree in education and a doctorate of education in curriculum development from Columbia University.

Superintendent of the Novi Community School district from 1972 through 1980 he also served in the Jackson County ISD from 1980 until his June 2001 retirement.

In his month as a new legislator, Mr. Kratz was the prime sponsor of the first six bills in the House. He was appointed to the appropriations committee where he was named chair of the Community Colleges sub committee.

Governor Granholm will call a special election to fill the position in the near future.

NAME CHANGE FOR PHILIP MORRIS

The New York based tobacco and food company has changed their name to Altria Group, Inc. Many critics believe it's an attempt to downplay tobacco interests. Stock symbols will continue under the old symbol, MO. Philip Morris International, Inc. and Philip Morris USA Inc. will continue to be used for the tobacco side of the company. The Kraft Foods Inc. name will remain the same.

SENATE COMMITTEE APPROVES E.U.C.L. BILL

The Senate Technology and Energy committee unanimously gave approval to a bill that would give the public service commission power of approval of the controversial end user line charges assess by the largest telephone companies.

SBC, Michigan's largest telephone company, takes opposition believing it would be a backward movement to regulatory rates while the state and the nation had moved towards competition.

However, committee chairman, Bruce Patterson said it allows the Public Service Commission to look out for consumer interests.

The bill affects end user charges assessed just by companies with 250,000 or more customers affecting four companies: SBC, Verizon, AT&T and MCI.

Under the bill, the E.U.C.L. charged by Verizon would be allowed because it received approval of its charge by the PSC in 2001. The measure says a company is in compliance if its rates and charges were reviewed and approved within three years of its effective date. The measure also allows a company charging a E.U.C.L. to continue to do so if it files a case with the PSC within 210 days. It is hoped that the E.U.C.L. would restore rate of return regulation to telephones.

GRANHOLM ORDERS EXECUTIVE CUTS

Next week, Governor Granholm is expected to issue a second executive order to cut an additional $158 million from the state budget. The E.O. is necessary because Michigan's constitution requires the state to balance its budget each fiscal year.

Among the expected cuts are calling in 1,000 vehicles in the motor fleet to avoid paying lease costs. This is expected to save approximately $3 million.

Also included in the cuts are eliminating color copying, turning off lights in state buildings after work hours, eliminating the mailing of paper pay stubs for employees who use direct deposit and 15% cutbacks on mobile phone usage by state employees.

These cost-cutting measures are expected to save at least $100 million. The Governor and legislative leadership are continuing to discuss alternative plans to save an additional $58 million. Final cuts are set to be announced next week.

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