The MML Review March-April 2022

2021 LEGISLATIVE WRAP - UP By Chris Hackbarth

T he Michigan House and Senate wrapped up their work in December—the mid-point of the 2021-22 legislative session. The Legislature returned to session on Wednesday, January 12, 2022, to resume action. All legislation introduced during 2021 remains eligible for action through the end of 2022. The following summaries represent the main issues League staff were engaged with during the 2021 calendar year: Year-end legislative activity centered on the book closing supplemental (HB 4398) and the passage of the Economic Development package (SB 769, 771 and HB 4082, 5603) that the Small Taxpayer Personal Property Tax expansion was tied to (HB 5351). Book Closing Supplemental The book closing supplemental appropriated nearly $850 million between fiscal years 2020-21 and 2021-22 across a variety of state departments. Of main interest to League members was the appropriation of $140 million in federal emergency rental assistance funds for rental and utility assistance to preserve housing and avoid eviction, almost $200 million in non-discretionary American Rescue Plan (ARP) funds through MDOT for airports and transit agencies with nearly $170 million of that appropriation aimed at the state’s primary airports, and $140 million of FEMA funds to the Michigan State Police for emergency and disaster response and mitigation. Economic Development Package The economic development package (SOAR—Strategic Outreach and Attraction Reserve) was signed by the governor in late December 2021, and is outlined as follows: The inclusion of the expansion of the Small Taxpayer Exemption component of the Personal Property Tax reimbursement system was outlined in our Inside 208 blog following the late night action in mid-December, and was also discussed on a MIRS news podcast. In the governor and Legislature’s final move to secure the necessary votes for passage of this piece in the Senate, they added $75 million into the funding bill for the SOAR package (Senate Bill 85) to cover the first year’s cost of the expansion (which doesn’t kick in until 2023). The Senate majority leader and numerous other legislators made public comments committing to securing a long-term reimbursement mechanism, and discussions on this replacement will be a top priority for the League in the new year. • $1 billion for two new MEDC job creation funds to use for cash incentives for large corporations and construction site improvements; and • $409 million in grants for businesses affected by COVID-19 shutdowns.

6

MARCH / APRIL 2022

THE REVIEW