Capitol Connection: April 23, 2024
In this issue
- House Democrats Regain Majority with Special Election WinsParental Leave Survey
- Capital Region Improvement Support Package (CRISP) #2
- Trash Tax Will Hurt Michigan Residents & Businesses
- Independent Contractor Final Rule Could Have Major Impact on Select Industries
- Challenges Continue for the Corporate Transparency Act
Local Updates
Barrett, Hertel, Jr. to Headline Chamber Policy Forum
The SOLD-OUT Lansing Regional Chamber of Commerce Policy Forum, which will be on Wednesday, May 1, will welcome former State Senator Curtis Hertel Jr., the Democratic candidate, and former State Senator Tom Barrett, the Republican candidate, vying for the 7th Congressional District seat. Zach Gorchow, executive editor & publisher of Gongwer News, will moderate the conversation with the two candidates.
This exclusive event offers an invaluable opportunity for members of our business community to engage directly with the candidates and gain a deeper understanding of their respective visions, policies, and plans for the future of the 7th Congressional District. If you are interested in attending, please join our waitlist available below.
State Updates
House Democrats Regain Majority with Special Election Wins
This month, two vacant seats in the Michigan State House of Representatives were filled through special elections. Former Democratic legislators had departed to undertake mayoral duties in their municipalities, leading to a 54-54 deadlock between the parties in recent months. Democrats have now reclaimed a slight lead with a 56-54 majority. The incoming representatives, expected to take their seats soon, are Mai Xiong for the 13th House District and Peter Herzberg for the 25th House District.What’s next: Because of the deadlock, the State House has been slow to move on any major policy issues these past months. Now with the majority back, that may change; however, the State Legislature top priority is to finalize the state budget.
Capital Region Improvement Support Package (CRISP) #2
With the State Legislature focused on FY25 state budget, the Chamber along with several of our regional partners have submitted the Capital Region Improvement Support Package (CRISP) #2 document to our Capitol Caucus members that represents a strategic roadmap for further enhancing the development of Lansing’s central city and the broader region. This comprehensive package encompasses a range of projects and services designed to bolster the ongoing revitalization efforts, building upon the successes achieved through the recent budget allocations in 2023.
CRISP #2 lays out a series of regional priority requests to the state, emphasizing proactive measures to drive economic growth, improve infrastructure, and enhance the overall quality of life throughout the region. These initiatives include vital urban renewal projects, transportation infrastructure enhancements, and community development initiatives, all aimed at fostering sustainable progress and prosperity for Lansing and its neighboring areas. By combining these proposed projects and services, CRISP #2 demonstrates a steadfast commitment to ensuring that Lansing’s central city and the surrounding region continue to evolve into vibrant and thriving hubs, capable of meeting the demands of the future while honoring the legacy of the past. It underscores the community’s dedication to building a brighter, more prosperous future for all its residents and stakeholders.
Trash Tax Will Hurt Michigan Residents & Businesses
The Chamber has joined several business organizations as well as the Michigan Waste & Recycling Association to oppose the Governor’s proposal to increase the state’s tipping fee.Imposing a $5 trash tax on each ton of solid waste will simply increase the cost of living and doing business in Michigan. At a time when we are looking for ways to improve Michigan’s attractiveness, increasing the trash tax will add cost to every household and business in the state as well as local governments, hospitals, public safety organizations, and school districts, to name a few.
Federal Updates
Independent Contractor Final Rule Could Have Major Impact on Select Industries
The long-awaited independent contractor final rule, issued by the U.S. Department of Labor took effect on March 11, 2024. Expected to prompt a comprehensive reassessment of worker classification practices, particularly in industries reliant on independent contractors, such as construction, transportation/logistics, healthcare, consulting/business/IT services, and the gig economy.
Employing a test like those employed by courts for years, the updated rule is contentious as it may lead to fewer independent contractors being recognized and more being classified as employees under U.S. wage laws.
What’s next: The U.S. Chamber of Commerce and other business associations filed a lawsuit over the DOL new independent contractor rule. The lawsuit, filed in the Eastern District of Texas, Beaumont Division, challenges DOL’s new test for classifying employees and independent contractors under the Fair Labor Standards Act. LRCC Policy & Regulatory Education Series partner Foster Swift provides further details on the final rule here.
Challenges Continue for the Corporate Transparency Act
Enacted by Congress on January 1, 2021, the Corporate Transparency Act (CTA) is set to dramatically change reporting requirements for many small -and medium-sized businesses. Unlike similar reporting laws, the CTA will mandate that qualifying businesses self-report information about the people who created, own, lead, or have influence over them, as well as information about the business itself. All the information will be added to a federally managed database for law enforcement purposes.
What’s happening: The U.S. District Court for the Northern District of Alabama held that CTA was unconstitutional. Whether that ruling will stay the implementation is still unknown as this time. Additionally, another challenge to CTA’s constitutionality was filed in the U.S. District Court for the District of Maine. LRCC Policy & Regulatory Education Series partner Foster Swift has launched a Corporate Transparency Act (CTA) Resource Page available below.
Be in the Room Where It Happens
Meet the Lansing City Charter Commission Endorsed Candidates
Join us for an upcoming LRC-PAC fundraising breakfast that will be held on Friday, April 26, from 8:30 to 10 a.m. at the Lansing Regional Chamber of Commerce. This fundraiser is to continue to raise funds for the LRC-PAC to help support our endorsed candidates running for the Lansing City Charter Commission. All our candidates will be attending so this is a great opportunity to meet, greet, and get to know them all.
Ways to Participate:
• Lansing, We’re Making It Happen Champion! (Host Committee): $100.00
• Ticket: $50.00
Checks or online contributions can be made out to the LRC-PAC. No corporate checks please. Registration is available below.
First Friday Public Affairs Call Updates
Join us for our upcoming First Friday Public Affairs Call Update on Friday, May 3, from 11 to 11:30 a.m. From national down to regional updates, these monthly calls are designed to keep our members informed and engaged. We would like to thank ITC Holdings for making these monthly updates possible.
