What's New with Senator Basham
Basham Cosponsors Legislation to Put Issue of Smokefree Workplaces Before Michigan Voters
Senator Basham recently joined with Senator Tupac A. Hunter to introduce a bill that would put the issue of smokefree workplaces in Michigan on the 2010 statewide ballot. Under Senate Bill 469, the ballot proposal would call for all worksites to be smokefree and would not include exemptions for restaurants, bars, or casinos.
Recent studies show that nearly 2/3 of Michigan voters support a workplace ban that includes bars and restaurants. Unfortunately, Michigan remains one of the 15 states left that has yet to pass legislation to create smokefree workplaces. Thirty-five states have already passed similar legislation to protect their workers form deadly exposure to secondhand smoke, including Ohio, Illinois, Iowa and Minnesota.
Data from the New York City Department of Finance shows that tax receipts increased by 8.7 percent, or approximately $1.4 million, after the city went smokefree. Between March 2003, when the city went smokefree, and December 2003 there were 10,600 new jobs in its bars and restaurants. Florida saw similar results, and reported that retail receipts for taverns and bars that served food remain unaffected by its smokefree law.
Senator Basham Announces $550 Million Ford Motor Company Project in the City of Wayne
Senator Basham recently announced that Ford Motor Company will invest $550 million to convert the Michigan Truck Plant along Michigan Avenue in Wayne into a facility that will focus on building small compact modern cars. The effort is expected to retain 3,200 jobs and generate a total of 17,150 jobs while also increasing state government revenues by $774 million by the year 2021.
Through the Michigan Economic Development Council, the Michigan Economic Growth Authority (MEGA) Board has approved various incentives for Ford Motor Company’s Michigan Assembly Plant project in the City of Wayne, including:
- Retention Employment Tax Credit
Through this tax credit, $123,773,031 will be available for up to $4,700 retained employees at the Michigan Assembly and Wayne Stamping facilities, provided that Ford agrees to retain a minimum of 1,800 jobs by the end of the first year of operations in order to activate the credit.
- Anchor New Jobs Designation
The anchor jobs designation will provide tax incentives to Ford for attracting and influencing customers and suppliers with a critical or unique component to locate in Michigan and connection with the Michigan Assembly facility projects. The incentives will be based on the number of qualified new jobs.
- Large Brownfield MBT Tax Credit
Ford Motor Company has requested up to $30,000,000 to help build and facilitate the project.
- Brownfield Redevelopment Work Plan
The county of Wayne Brownfield Redevelopment Authority has submitted a work plan request for the approval for $6,403,500 in local and school capture for MEGA eligible activities. The MEGA Board also approved an amendment awarding an additional $20 million of tax credits for qualified Plug-In Electric Vehicle Engineering expenses.
This new investment project will convert the Michigan Truck Plant, which previously manufactured large body-on-frame products, into a flexible manufacturing facility that can produce smaller vehicles off a global platform. The facility will receive significant investment in body, paint and final assembly. The new plant will also build the next-generation Ford Focus, including an electric version of the popular car that is expected to debut in 2011.
Governor Granholm Presents Budget Cuts to House and Senate Appropriations Committees
State Budget Director Bob Emerson recently presented Governor Jennifer M. Granholm's Executive Order 2009-22 to a joint session of the House and Senate Appropriations Committees to help eliminate a shortfall in the 2009 state budget caused, in large part, by the massive restructuring in the domestic auto industry.
Executive Order 2009-22, the second issued during the current fiscal year, reduces spending by nearly $350 million, achieving $304 million in the general fund savings. The reductions will reduce services in some areas of government but will allow the state to protect critical functions of state government like education, health care, support for families in crisis, and job creation efforts.
Granholm issued Executive Order 2008-21 in December reducing fiscal year 2009 spending by $134 million. At that time the Granholm indicated additional actions may be necessary to address the on-going economic challenges.
According to state officials, the state budget is the product of the worst economic downturn since the 1930s. State general fund revenues are projected to decline 21 percent from actual FY 2008 collections. When adjusted for inflation, the decline in revenues is 23.5 percent, by far the largest one-year decline in at least 50 years and twice the 11.5 percent decline recorded in the severe recession of 1981.
The action taken today preserves critical safety-net services for Michigan families, including Medicaid eligibility and child welfare programs along with funding for higher education, community colleges, and school aid.
The executive order calls for temporary layoffs for all state employees in non-essential positions that will result in a shutdown of most state government operations on six days between now and September 30. Those days, for which state employees will not be paid, will be announced in the near future to allow citizens and state employees to plan accordingly. In addition, the executive order will result in a number of state employee layoffs, including Michigan State Police troopers.
Many of the executive order budget cuts advance spending reductions outlined in the governor's 2010 budget recommendation, which called for $670 million in spending reductions and $230 million in additional revenue from the closing of tax loopholes. Revised revenue figures for the current and upcoming fiscal years will be released when the Revenue Estimating Conference convenes May 15.
A copy of the executive order is available on the state's Web site at: http://michigan.gov/documents/gov/EO2009-22_277339_7.pdf
Basham Re-Introduces Bill to Increase Penalty for Selling Tobacco Products to Minors
In response to requests from local law enforcement, Senator Basham has introduced Senate Bill 461, which would increase the penalties for selling tobacco products to minors.
Under Michigan’s Youth Tobacco Act a fine of $50 is assessed for each violation. Basham explained that this minimal fine is simply inadequate in deterring people from selling or giving tobacco products to minors, adding that an occasional fine of $50 is merely their “cost of doing business” with what can be a very profitable minor clientele. He argued that changes must be made to the law if we want to effectively limit the ability of our youth to acquire tobacco products.
The Senator’s bill would provide for increased and graduated penalties under the act. For the first offense, a person would be subject to a fine or not more than $100. For the second offense, a person would be subject to a fine of not more than $250. And, for each subsequent violation, the offender would be subject to a fine of not more than $500.
In Michigan it is illegal to sell, give or furnish a tobacco product to a person under the age of 18. According to the Center for Disease Control, the younger you are when you begin to smoke, the more likely you are to be an adult smoker. And, people who start smoking at younger ages are more likely to develop long-term nicotine addiction than people who start later in life.
Basham Announces Grant $25K for Riverview Public Library’s Immigration Connection Center
Senator Basham recently announced that the Library of Michigan has awarded $25,028 in federal funding to the Riverview Public Library as part of the Library Services and Technology Act (LSTA). The $25,028 is paired with $4,000 in local funds totaling $29,028 that will be used to further Riverview’s “Library Immigration Connection Center” program.
The “Library Immigration Connection Center” program was developed to help Hispanic and Albanian immigrants participate in English and Transition to American Life classes and adult education and computer training workshops. LSTA funding targets unique programs that reach out to populations in need, and this award was given in recognition of the Riverview Public Library’s “innovative methods” used to reach out to immigrants.
The Riverview library will also use this to produce a project manual that other libraries will be able to use to create and develop similar programs in their own communities. The manual will allow the “Library Immigration Connection Center” program to benefit the entire state.
Senator Basham Announces $177K in Federal Transportation Enhancement Funding for City of Wayne
Senator Basham recently announced that the City of Wayne will receive $177,890 in federal transportation enhancement (TE) funding for a streetscape project that includes one-tenth of a mile along Wayne Road between Harroun Street and Annapolis Street.
The Wayne Road streetscape project will include brick pavers, concrete planters, and landscaping, and construction will begin this summer. The project budget is $222,362 which includes $177,890 in federal funds and $44,472 in local funds.
Wayne is one of 67 communities across Michigan benefiting from a total of $47.3 million in Transportation Enhancement (TE) funding. This total includes 22 projects funded through the American Recovery and Reinvestment Act. The funding will complete 176 miles of bike paths and paved shoulders; enhance local roadways in communities statewide with lighting, landscaping, sidewalks, crosswalks and other improvements; preserve a historic bridge and two historic rail facilities. The projects are planned for the 2009 and 2010 construction seasons and will create or retain over 1,300 jobs.
Basham, DEQ Highlight E-Waste Recycling at Earth Day and Michigan Conservation Week Celebration
Senator Basham joined the Michigan Department of Environmental Quality (DEQ) recently to highlight the importance of recycling electronic waste at an event to celebrate Earth Day and the third annual Michigan Conservation Week.
As state employees dropped off old computer electronics at a recycling event hosted by the DEQ and Goodwill Industries, Sen. Basham was joined by Sen. Patty Birkholz and Rep. Rebekah Warren to emphasize the need for state residents to recycle old electronics. Electronic waste often contains hazardous substances such as mercury as well as valuable metals like copper. Improper disposal of these products results in the waste of good materials, and the potential release of dangerous ones into our environment.
Public Acts 392 through 395 of 2008 require manufacturers of consumer computer electronics to implement a take-back program for the free return of computers and video display devices that they produce. The legislation received support from electronics manufacturers, Hewlett-Packard and Dell; Waste Management Inc; and Goodwill Industries. The DEQ, in partnership with Goodwill Industries, has been hosting the free e-waste recycling event for state employees for several years. Last year, nearly 13,000 pounds of e-waste were collected.
The Senate approved a resolution designating April 20-26 as Michigan Conservation Week to encourage residents to conserve and protect Michigan’s natural resources.
Residents can find local locations for recycling at www.reconnectpartnership.com or http://www.michigan.gov/deq/0,1607,7-135-3585_4130-115394--,00.html.
Tune Into The Basham Report
May Topic:
Senator Basham interviews Dave Adams, President and CEO of the Michigan Credit Union League, regarding the benefits and services that Credit Unions provide.
Schedule:
Wyandotte Cable – Channel 15 on Wednesdays at 7:30 p.m.
Comcast Cable (Allen Park, Ecorse, Lincoln Park, Melvindale, Riverview, Southgate & Taylor) – Channel 20 on Mondays at 4:00 p.m. and 7:30 p.m.
Comcast Cable (Wayne & Romulus) – Channel 25 on Mondays at 6:30 p.m. and Tuesdays at 9:00 a.m.
Mark Your Calendar
Monday, May 25: Memorial Day - State Offices Closed
News You Can Use
Michigan Residents Can Now Apply For New Enhanced Driver’s License
The Michigan Secretary of State’s Office recently announced that Michigan residents can now apply for the new enhanced driver’s license (EDL). The dual-purpose EDL will serve as a driver’s license and border crossing card and allow travelers to meet the tougher federal document requirements that go into effect at the country’s borders on June 1.
The EDL will cost $45 and an enhanced state identification card will cost $30. Applicants who apply will receive them in two to three weeks. The EDL eliminates the need to carry multiple documents when returning to the U.S. by land or sea from Canada, Mexico, Bermuda or the Caribbean.
The EDL can be obtained at any Secretary of State SUPER!Center or other select branches. People with a current valid license will only need to show proof of a valid Social Security number and U.S. citizenship in addition to their driver’s license. EDLs are voluntary, and residents can still receive standard driver’s licenses and state identification cards.
OFIR Orders Another Fraudulent Credit Union Out of Business
The Office of Financial and Insurance Regulation (OFIR) has ordered an entity claiming to be a Pennsylvania-based credit union called “Firststar Credit Union” to cease and desist from doing business. OFIR believes that Firststar, through its website, www.firststarlendingservices.com, is posing as a legitimate credit union and may be attempting to steal consumers’ money and identity. The fraudulent financial institution, which advertised in Michigan newspapers, is encouraging customers to apply for loans by providing upfront payments and personal information.
OFIR contacted Godaddy.com, the Firststar website host, and the website has been shut down. Consumers can contact OFIR toll-free at 877-999-6442 to find out if a bank or credit union is a legitimate financial institution.
The agency urged consumers to develop a face-to-face or personal relationship with a financial institution before entering into a business contract. Prior to opening an account at an Internet bank or credit union, consumers are encouraged to call OFIR or check out information on legitimate depositories on OFIR’s website, www.michigan.gov/ofir.
To find or verify a federally insured state-chartered credit union in Michigan, visit: http://www.dleg.state.mi.us/fis/ind_srch/CreditUnion/Search.asp.
To find or verify federally insured credit unions across the country, visit the National Credit Union Administration at: http://www.ncua.gov/indexdata.html.
OFIR Announces $876 Million Auction Rate Securities Settlement with Citigroup, Wachovia
The Office of Financial and Insurance Regulation (OFIR) announced that it has reached a settlement with Citigroup Global Markets Inc. and Wachovia Capital Markets regarding Auction Rate Securities (ARS). The settlement requires Citi and Wachovia to offer full buybacks to any eligible customer who purchased an ARS from the brokerage firms, including up to $717 million from Citi and up to $159 million from Wachovia. The settlement also requires Citi and Wachovia to pay an administrative fine of $1.72 million and $654,000, respectively, of which 90 percent will be deposited immediately in the State of Michigan’s general fund, as required by law, and the remaining ten percent will go to OFIR’s Michigan Investor Protection Trust.
The settlement resolves a multi-state investigation into allegations that Citi and Wachovia misled investors regarding the liquidity risks associated with investing into ARS. The investigation alleged that the firms misled investors by representing ARS as a safe and secure investment option to buyers and were said to have the same liquidity as cash. When the market for ARS collapsed last year, investors were stunned to learn their accounts were frozen and they no longer had access to their money. The direct result for many investors was that their money was no longer available to support ongoing business operations.
The Michigan Investor Protection Trust is funded entirely by securities fines and is used to educate Michigan consumers on investment issues and how to avoid financial scams. OFIR has used these funds to expand the “Investor Education in Your Community” program that educates Michigan investors on how to avoid falling victim to investment fraud. The fund is also used to support OFIR’s investment scams training for local law enforcement and aid the agency’s “Free Lunch Seminar Monitor” program that gives individuals an opportunity to fight back against unscrupulous promoters by reporting questionable investment practices to OFIR for investigation.
If Michigan investors have any questions about an investment firm, professional or product, please contact OFIR toll-free at (877) 999-6442 or online at www.michigan.gov/ofir.
