1. Michigan Legislative Update & CBM Priorities for 2019 Governmental Consultant Services Inc. (GCSI)

2. Lame Duck Overview
While this past lame duck proved to be one of the busiest in recent history with former Governor Snyder signing around 340 bills in to law, he also vetoed nearly 60 pieces of legislation during that time.
Some non-financial services legislation vetoed included a package on internet gaming and legislative intervention in court cases.
Cybersecurity legislation sponsored by Rep. Diana Farrington. Some interest groups tried to negotiate a compromise to allow for a 45 day extension to the notification of a breach. Sponsor did not support and asked her bill to not move.

3. Lame Duck Overview (Continued)
Waters’ edge/five-year averaging-the CBM negotiated a two year phase out of the five-year averaging which was signed in to law will be for tax years beginning after 12/31/ However, former Gov. Snyder vetoed the bill revising the apportionment formula for a financial institution with respect to gross business attributable to the foreign business of a controlled foreign corporation.
Senate Bills 511 and 512 create the Michigan First-Time Home Buyer Savings Program. The program would allow individuals to create savings accounts with state income tax benefits for the purpose of using the funds for a down payment on a house. An individual could open an account with a financial institution and designate the account, in its entirety, as a first-time home buyer savings account to be used to pay or reimburse a qualified beneficiary’s eligible costs for the purchase of a single-family residence in Michigan.

4. Department of Insurance and Financial Services
Anita Fox officially began her tenure as the Director of the Michigan Department of Insurance and Financial Services (DIFS) on January 14th.
Director Fox was appointed by Governor Gretchen Whitmer on December 27, 2018.
More than 30 years in the legal field, most recently at Fraser Trebilcock Davis & Dunlap, P.C. specializing in business and insurance issues.
Taught Insurance Law at Michigan State University College of Law.
She takes over for former Director Patrick McPharlin.

5. Senate Insurance and Banking Committee
Lana Theis (R-Brighton) Committee Chair Livingston and Western Washtenaw (part) Counties
Dan Lauwers (R-Brockway) Majority Vice-Chair Huron, St. Clair, Sanilac, and Macomb (part) Counties
Kim LaSata (R-St. Joseph) Berrien, Cass, and St. Joseph Counties
Aric Nesbitt (R-Lawton) Allegan, Van Buren, and Kent (part) Counties
Kevin Daley(R-Attica) Bay, Lapeer, Tuscola Counties
Tom Barrett (R-Charlotte) Clinton, Eaton, Shiawassee, Ingham (part) Counties
Ken Horn (R-Saginaw) Saginaw and Genesee (part) Counties
Erika Geiss (D-Taylor) Minority Vice-Chair Wayne County (part)
Marshall Bullock (D-Detroit) Allen Park, Detroit, Lincoln Park, Southgate
Mallory McMorrow (D-Royal Oak) Berkley, Birmingham, Bloomfield Hills, Clawson, Rochester, Rochester Hills, Troy
Lawmakers new to the Legislature are in red. Sen. Horn is the only second term lawmaker on the committee, but he is new to the Banking Committee (he did serve on Senate Insurance last term)

6. House Financial Services Committee
Diana Farrington (R-Utica) Committee Chair Utica, Sterling Heights (part), and Shelby Charter Township.
Andrea Schroeder (R-Clarkston) Majority Vice-Chair Waterford Twp., Lake Angelus, Clarkston, Independence Twp.
Jason Sheppard (R-Lambertville) Monroe County (part)
Joseph Bellino (R-Monroe) Wayne (part) and Monroe (part) Counties
Ryan Berman (R-Commerce Twp.) Wixom, Commerce Twp., West Bloomfield Twp. (part), Wolverine Lake
Rodney Wakeman (R-Saginaw) Saginaw County (part)
Sherry Gay-Dagnogo (D-Detroit) Minority Vice-Chair Northwest Detroit
Robert Wittenberg (D-Oak Park) Berkley, Ferndale, Hazel Park, Huntington Woods, Pleasant Ridge, Royal Oak Twp.
Cara Clemente (D-Lincoln Park) Lincoln Park, Melvindale, Riverview and Wyandotte
Lori Stone (D-Warren) Center Line and Warren
Karen Whitsett (D-Detroit) Detroit and Dearborn

7. House Dual Committee Structure
For the session the House will have a new committee process whereby most legislation will now be reviewed a second time before being sent to the House floor.
Appropriations, Judiciary, Ways and Means, and Government Operations will be the only four committees that can send bills directly to the House floor and they will be tasked with giving bills reported from other committees a second review before sending them to the floor.
For purposes of a secondary review, it has been indicated that Appropriations will review bills that include an appropriation, the Judiciary Committee will review any legislation that creates or changes criminal penalties, and the Ways and Means Committee will review all other legislation after it leaves its original committee.

8. CBM Presentation to House Financial Services
Invited by Chair Rep. Diana Farrington to present to the committee on Wednesday, January 30th
However, due to inclement weather, the State of Michigan, House, Senate, and City of Lansing were closed. Rep. Farrington is looking to reschedule the presentation.
Mike Tierney will present on behalf of the CBM to give a little background on community banking in the state.

9. Legislative Priorities
Speaker of the House Rep. Lee Chatfield (R-Levering) claimed the state’s auto no-fault insurance was “the single largest issue holding back our state” and he urged the chamber to consider reforms to the program a priority.
Other priorities include funding for infrastructure, such as for roads and water; additional reforms to make government more transparent; and criminal justice system reforms.  
Senate Majority Leader Mike Shirkey (R-Clarklake) has also indicated that the Senate’s top priority for the session is auto no-fault reform.
Sen. Jim Ananich (D-Flint), the Senate Democratic Leader, stated the Democratic caucus priorities include establishing a child care credit for working families; creating a tax credit claw back for businesses that leave Michigan to re-pay incentive dollars they received; restoring the former regulations for placing initiatives on the ballot which was amended in the lame duck session; and re-establishing the water resources commission.

10. Legislative Priorities-Committee Chairs
Sen. Theis is very focused on the auto no-fault reform debate.
Rep. Farrington has indicated one of her first priorities out of the gate will be to revisit the cybersecurity legislation from last session.
Financial literacy is also a key topic the committee will focus on as well.