No. 68

STATE OF MICHIGAN

Journal of the Senate

95th Legislature

REGULAR SESSION OF 2009

Senate Chamber, Lansing, Thursday, September 10, 2009.

10:00 a.m.

The Senate was called to order by the President, Lieutenant Governor John D. Cherry, Jr.

The roll was called by the Secretary of the Senate, who announced that a quorum was present.

Allen—present Garcia—present Olshove—present

Anderson—present George—present Pappageorge—present

Barcia—present Gilbert—present Patterson—present

Basham—present Gleason—present Prusi—present

Birkholz—present Hardiman—present Richardville—present

Bishop—present Hunter—present Sanborn—present

Brater—present Jacobs—present Scott—present

Brown—present Jansen—excused Stamas—present

Cassis—present Jelinek—present Switalski—present

Cherry—present Kahn—present Thomas—present

Clark-Coleman—present Kuipers—present Van Woerkom—present

Clarke—present McManus—present Whitmer—present

Cropsey—present

Pastor Rodger Moyer of Sturgis Evangelical Church of Sturgis offered the following invocation:

Our precious heavenly Father, we come to Thee today with all of our heart, soul, mind, and strength. We acknowledge that Thou art God and God alone. We thank Thee for that. We thank You that You love us. We thank You that You care for us. We thank You, Lord, that You are all-powerful and able to do exceedingly, abundantly above all that we ask or think.

Father, we are asking that You would come into this State Senate meeting today and the days ahead. These men and women have the whole state on their shoulders. They need Your help; they need Your presence; they need Your wisdom; they need Your grace. Father, it is almost unimaginable for me not being a part of this to gather the fact that the decisions will affect millions of people—on these people’s plate.

We pray that, Lord, You would pour out Your mind upon them; Your heart upon them. We pray that in every decision love would rule and that Your name alone would be glorified. I pray that each heart would be open to Your voice; every decision made is up to Your will; and, Lord, when things are said and done, this state would be blessed by You for the decisions that are made here.

We pray that You would rest upon each one and give them all the help they need. You are able to do that. We ask this in the name of Jesus. Amen.

The President, Lieutenant Governor Cherry, led the members of the Senate in recital of the Pledge of Allegiance.

Motions and Communications

Senator Van Woerkom entered the Senate Chamber.

Senator Thomas moved that Senators Clarke and Barcia be temporarily excused from today’s session.

The motion prevailed.

Senator Cropsey moved that Senator Jansen be excused from today’s session.

The motion prevailed.

Senator Cropsey moved that the rules be suspended and that the following bills, now on Committee Reports, be placed on the General Orders calendar for consideration today:

Senate Bill No. 777

House Bill No. 4523

The motion prevailed, a majority of the members serving voting therefor.

Senator Stamas asked and was granted unanimous consent to make a statement and moved that the statement be printed in the Journal.

The motion prevailed.

Senator Stamas’ statement is as follows:

I rise today to mourn the loss of a soldier from Gladwin County who lost his life in Iraq during his sixth deployment to the war zones in Iraq and Afghanistan. Army Sergeant Timothy David, who was 28 years old, died June 28 after an improvised explosive device detonated near his vehicle in Iraq. Timothy David joined the Army nine days after graduating from Beaverton High School in 1999, serving both as a ranger and then as a sniper. It is with a heavy heart that I would now like to read a tribute prepared for the David family, followed by a moment of silence:

“LET IT BE KNOWN, That we offer this memorial in honor of Army Sergeant Timothy A. David with our deep respect for his many contributions to uphold freedom and his commitment to the noble ideals of our country. As friends and family honor the life of this patriotic man, we proudly add our own thanks for the contributions he and his family have made in protecting our cherished liberties.

It was with deep sadness that we learned of the death of Sergeant Timothy A. David while serving in Iraq with the 2nd Battalion, 5th Cavalry Regiment, 1st Brigade Combat Team, 1st Cavalry Division of Fort Hood, Texas. He was a dedicated American and caring person who enriched many lives. We join with the community in extending our condolences to his parents, Michael and Linda, and to the rest of his family and many friends. He will be sincerely missed and long-remembered.

Serving others and always being the first to lend a hand were characteristics that were second nature to Timothy. Sergeant David’s commitment to his nation and its citizens was unquestionable, as he served on six tours of duty, two in Afghanistan and four in Iraq. His dedication and commitment to preserving the freedom and well-being of our nation will never be forgotten.

The life of Sergeant Timothy A. David is a study in the power of hard work, dedication and commitment to his family, his state and his nation. We are extremely grateful for his achievements.

IN SPECIAL TRIBUTE, Therefore, this document is signed and dedicated to offer our words of praise as a memorial to Army Sergeant Timothy A. David. May his family find comfort in their faith and their memories of this fine young man, and may they know of our respect and gratitude for his outstanding contributions to our country.”

Signed by Governor Jennifer Granholm, myself, and Representative Tim Moore.

A moment of silence was observed in memory of Army Sergeant Timothy A. David.

The following communication was received and read:

Office of the Auditor General

September 3, 2009

Enclosed is a copy of the financial statements, together with the Auditors’ Report, of the Bureau of State Lottery for the six-month periods ended March 31, 2009 and 2008.

If you have questions regarding this report, please call me; Scott M. Strong, C.P.A., Deputy Auditor General; or Laura J. Hirst, C.P.A., Audit Division Administrator, who administers our contractual audits.

Sincerely,

Thomas H. McTavish, C.P.A.

Auditor General

The audit report was referred to the Committee on Government Operations and Reform.

The Secretary announced that the following House bills were received in the Senate and filed on Wednesday, September 9:

House Bill Nos. 4325 4326 4729 4730 4731 4732 4733 4734 4735 4736 4737 4738

Messages from the Governor

Senators Kahn, Kuipers, Barcia, Clarke and Garcia entered the Senate Chamber.

The following message from the Governor was received on September 9, 2009, and read:

EXECUTIVE ORDER

No. 2009-43

Amending Executive Order 2009-36

Executive Reorganization

WHEREAS, Section 1 of Article V of the Michigan Constitution of 1963 vests the executive power of the State of Michigan in the Governor;

WHEREAS, Section 2 of Article V of the Michigan Constitution of 1963 empowers the Governor to make changes in the organization of the executive branch of state government or in the assignment of functions among its units that the Governor considers necessary for efficient administration;

WHEREAS, on July 13, 2009, Executive Order 2009-36 was issued, consolidating the functions of the Department of History, Arts, and Libraries among various other state departments that already perform similar or related functions to assure a more efficient and effective organization of the executive branch of state government;

WHEREAS, Executive Order 2009-36, by its terms, is effective October 1, 2009 and, until September 11, 2009, remains subject to a 60-day review period under Section 2 of Article V of the Michigan Constitution of 1963;

WHEREAS, the purpose and intent of Executive Order 2009-36 is to achieve essential cost savings while, to the extent feasible consistent with diminishing state revenues, preserving both the integrity of and public access to the vital collections and other public resources currently managed by the Department of History, Arts, and Libraries;

WHEREAS, the purpose and intent of Executive Order 2009-36 also is to protect and preserve important state treasures housed in the Michigan Library and Historical Center during a time of severe fiscal constraints;

WHEREAS, it is in the best interests of an efficient and effective government that Executive Order 2009-36 be amended;

NOW, THEREFORE, I, Jennifer M. Granholm, Governor of the State of Michigan, by virtue of the power and authority vested in the Governor by the Michigan Constitution of 1963 and Michigan law, order the following:

I. Section II.B.4 of Executive Order 2009-36 is amended to read as follows:

“4. The unclassified position of State Librarian created by Section 5 of the Library of Michigan Act, 1982 PA 540, MCL 397.15, is abolished. The Superintendent of Public Instruction, in cooperation with the Civil Service Commission if necessary, shall designate a qualified employee of the Department of Education to serve as the state librarian as soon as practicable.”

II. Section II.H.7 of Executive Order 2009-36 is amended to read as follows:

“7. The Director of the Department of Natural Resources shall supervise and administer the assigned functions transferred to the Department of Natural Resources under Section II.H of this Order in such ways as to promote efficient administration and shall make internal organizational changes as may be administratively necessary to complete the realignment of responsibilities under this Order. To achieve efficient administration and effectuate necessary cost savings consistent with appropriations provided by law, the Director shall evaluate and implement measures designed to reduce expenditures, eliminate duplicative services, and generate revenue while protecting the core functions of the former Department of History, Arts, and Libraries transferred to the Department of Natural Resources. The guiding purpose of any and all such measures, consistent with the purpose and intent of this Order, shall be to strike a careful and prudent balance between the goal of achieving efficient administration and necessary cost savings and that of preserving and maintaining public access to the important and unique collections and resources entrusted to the former Department of History, Arts, and Libraries, including, but not limited to, Michigan’s Civil War and other military flags. Unless the Director determines it to be impracticable, the measures may include, but shall not be limited to, all of the following:

a. Instituting an admission fee for museum facilities and exhibits.

b. If the Department of History, Arts, and Libraries has not already done so, entering into a memorandum of understanding with a qualified non-profit organization, society, or foundation willing to assume responsibility for the publication of any or all magazines or journals published by the Department or taking other steps to eliminate the expenditure of state funds appropriated for the publications while preserving these important functions to the extent feasible.

c. Entering into a memorandum of understanding with a qualified non-profit organization, society, or foundation willing to assume responsibility for the staffing and operation of the museum store and for the development and operation of online sales of merchandise from, or related to, this state’s museums or archives, if the Director determines that such an agreement will reduce state expenditures or enhance state revenues and is otherwise in the best interests of this state.

d. If the Department of History, Arts, and Libraries has not already done so, entering into a memorandum of understanding with a qualified non-profit organization, society, or foundation willing to assume responsibility for the administration and preservation of the Michigan historical markers program under the Michigan Historical Markers Act, 1955 PA 10, MCL 399.151, if the Director determines that such an agreement will reduce state expenditures or enhance state revenues and is otherwise in the best interests of this state.

e. Depositing any state funds generated by such activities into the general fund of this state.

f. Taking such other measures as may be necessary or appropriate to limit expenditures consistent with available appropriations.”

III. Section II.B.8 of Executive Order 2009-36 is amended to read as follows:

“8. The Superintendent of Public Instruction shall administer the assigned functions transferred to the Department of Education under Section II.B of this Order in such ways as to promote efficient administration and shall make internal organizational changes as may be administratively necessary to complete the realignment of responsibilities under this Order. To achieve efficient administration and effectuate necessary cost savings consistent with appropriations provided by law, the Library of Michigan shall evaluate and implement measures designed to reduce expenditures and eliminate duplicative services. Subject to available appropriations, the Library of Michigan shall focus on the provision of leadership and critical services to libraries and patrons throughout this state, including, but not limited to, all of the following:

a. Continuing this state’s vital role in maintaining and delivering online services to libraries around this state, including prioritizing the provision of services that affect libraries and their patrons throughout this state such as continued support for, and availability of, the Michigan eLibrary (MeL) and MelCat, the statewide online catalog and resource sharing systems.

b. Continuing state-level support for the cost savings and effective delivery of statewide library services achieved through the leadership of the Library of Michigan and the collaboration and resource sharing of libraries throughout this state.

c. Preserving important collections maintained by the Library of Michigan, including the Michigan Collection, the Rare Books Collection, and the Genealogy Collection.”

IV. Section II of Executive Order 2009-36 is amended to add the following new Section II.P to read as follows:

“P. Michigan Library and Historical Center

1. Subject to available appropriations, the Department of Education, the Department of Natural Resources, the Michigan Commission for the Blind, and other state department and agencies shall actively cooperate to facilitate the continued operation of the Michigan Library and Historical Center and the preservation of the important historical resources and library collections maintained at the Center on behalf of the People of the State of Michigan.”

IV. Section IV.A of Executive Order 2009-36 is amended to read as follows:

“A. The Michigan Center for Innovation and Reinvention Board is created as an advisory body within the Department of Natural Resources. The Board will, among other tasks, consider potential ideas to preserve and maximize the benefits to the public of the existing Michigan Library and Historical Center, including public input and scrutiny regarding the most effective delivery of state library and historical services and facilities including, but not limited to, collections, buildings, and skilled personnel. The Board shall recognize the importance of preserving unique historical assets and collections, including, but not limited to, Michigan’s Civil War and other military flags, the Michigan Collection, the Rare Books Collection, and the Genealogy Collection of the Library of Michigan. Qualified individuals recommended for consideration for appointment to the Board should include librarians, historians, archivists, and others with relevant expertise.”

In fulfillment of the requirements under Section 2 of Article V of the Michigan Constitution of 1963, the provisions of this amendatory order are effective 60 days after the issuance of this amendatory order.

[SEAL] Given under my hand and the Great Seal of the State of Michigan this 9th day of September in the year of our Lord, two thousand nine.

Jennifer M. Granholm

Governor

By the Governor:

Terri L. Land

Secretary of State

The executive order was referred to the Committee on Government Operations and Reform.

Senator Cropsey asked and was granted unanimous consent to make a statement and moved that the statement be printed in the Journal.

The motion prevailed.

Senator Cropsey’s statement is as follows:

I don’t know how much we really think about it, but we work in an environment that in other countries can be a very dangerous place to work. I’m convinced that one of the reasons why we are safe here is because of the outstanding service rendered by our sergeants at arms. They are a registered police agency, they are MCOLES-certified, and they perform all normal law enforcement activities in a professional and courteous manner.

We rarely hear about their interventions with boisterous or even occasionally inebriated visitors. They respond to telephone threats and personal threats. Most importantly, their very presence here is deterrence to danger.

So today it is with some regret that I rise to thank Assistant Sergeant Denny Aven for his service on behalf of all of us. Denny is a highly-qualified law enforcement officer who came to the Senate from the East Lansing Police Department two years ago, but today will be his last day, as he has accepted an investigator position with the Gaming Commission at the newly-opened FireKeepers Casino in Battle Creek.

He will be difficult to replace. Denny, I extend to you best wishes in your new position, knowing you will continue to provide outstanding service to the people of Michigan. Thank you for your service to the Michigan State Senate.

By unanimous consent the Senate proceeded to the order of

General Orders

Senator Cropsey moved that the Senate resolve itself into the Committee of the Whole for consideration of the General Orders calendar.

The motion prevailed, and the President, Lieutenant Governor Cherry, designated Senator Cherry as Chairperson.

After some time spent therein, the Committee arose; and, the President, Lieutenant Governor Cherry, having resumed the Chair, the Committee reported back to the Senate, favorably and with a substitute therefor, the following bill:

Senate Bill No. 777, entitled

A bill to amend 2007 PA 36, entitled “Michigan business tax act,” by amending section 434 (MCL 208.1434), as amended by 2009 PA 26.

Substitute (S-1).

The Senate agreed to the substitute recommended by the Committee of the Whole, and the bill as substituted was placed on the order of Third Reading of Bills.

The Committee of the Whole reported back to the Senate, favorably and with a substitute therefor, the following bill:

House Bill No. 4523, entitled

A bill to amend 2007 PA 36, entitled “Michigan business tax act,” by amending section 430 (MCL 208.1430), as added by 2008 PA 270.

Substitute (S-2).

The following are the amendments to the substitute recommended by the Committee of the Whole:

1. Amend page 2, line 17, after “~~(3)~~” by striking out “The” and inserting “EXCEPT AS OTHERWISE PROVIDED UNDER THIS SUBSECTION, THE”.

2. Amend page 2, line 19, after “issued.” by inserting “THE MICHIGAN ECONOMIC GROWTH AUTHORITY MAY ALLOW ONLY 1 TAXPAYER WITH WHOM IT HAS ENTERED INTO AN AGREEMENT FOR A CREDIT UNDER THIS SECTION OF $15,000,000.00 OR LESS TO CLAIM THE TOTAL AMOUNT OF THE CREDIT ALLOWED IN THE SAME TAX YEAR IN WHICH THE CERTIFICATION WAS ISSUED.”.

The Senate agreed to the substitute, as amended, recommended by the Committee of the Whole, and the bill as substituted was placed on the order of Third Reading of Bills.

The Committee of the Whole reported back to the Senate, favorably and with a substitute therefor, the following bill:

Senate Bill No. 2, entitled

A bill to create a small business ombudsman’s office and a small business compliance advisory panel; and to provide for certain powers and duties of certain state officers and agencies.

Substitute (S-2).

The Senate agreed to the substitute recommended by the Committee of the Whole, and the bill as substituted was placed on the order of Third Reading of Bills.

The Committee of the Whole reported back to the Senate, favorably and with a substitute therefor, the following bill:

Senate Bill No. 340, entitled

A bill to create certain offices in the Michigan economic development corporation; to provide for the appointment of certain officers with the advice and consent of the senate; and to impose certain duties and responsibilities on those officers and on certain state employees and public employees.

Substitute (S-2).

The following is the amendment to the substitute recommended by the Committee of the Whole:

1. Amend page 3, line 10, after “AUTHORITIES” by striking out “WITHOUT NOTICE TO THAT PERSON”.

The Senate agreed to the substitute, as amended, recommended by the Committee of the Whole, and the bill as substituted was placed on the order of Third Reading of Bills.

Resolutions

Senator Cropsey moved that consideration of the following resolutions be postponed for today:

Senate Resolution No. 41

Senate Resolution No. 17

Senate Concurrent Resolution No. 4

Senate Resolution No. 75

The motion prevailed.

The question was placed on the adoption of the following resolution consent calendar:

Senate Resolution No. 78

Senate Resolution No. 79

The resolution consent calendar was adopted.

Senator Cropsey offered the following resolution:

Senate Resolution No. 78.

A resolution commemorating September 2009 as Childhood Cancer Awareness Month in the state of Michigan.

Whereas, One in 330 children will develop cancer by age 20, and each school day, 46 children are diagnosed with cancer; and

Whereas, Every year, over 12,500 children are diagnosed with cancer; and

Whereas, Cancer is the No. 1 killer of children by disease; and

Whereas, Childhood cancer forever changes the lives of children and families in the state of Michigan; and

Whereas, Although the five-year survival rate is steadily increasing, one-quarter of children diagnosed with cancer will die within five years of diagnosis; and

Whereas, While great improvements have been made, some childhood cancers still have a grim prognosis; and

Whereas, Currently, there is estimated to be over 270,000 survivors of childhood cancer in the United States; now, therefore, be it

Resolved by the Senate, That we hereby proclaim September 2009 as Childhood Cancer Awareness Month in the state of Michigan; and be it further

Resolved, That a copy of this resolution be transmitted to Michigan residents Shawn and Sandy Smith, who originated this idea, as a token of our highest esteem.

Senators Anderson, Birkholz, Gleason, Kuipers, Olshove, Pappageorge and Switalski were named co‑sponsors of the resolution.

Senator Cropsey asked and was granted unanimous consent to make a statement and moved that the statement be printed in the Journal.

The motion prevailed.

Senator Cropsey’s statement is as follows:

Today, in the east Gallery, I have Pastor Sean Smith and Sandy Smith, along with their children Stephen, Charis Joy, and Andrew. Every once in a while you see a family where you say, wow, they are going through tough times and really tough times. Perhaps the toughest one was several months ago when Andrew was diagnosed with brain cell cancer in October 2007. The family requested that I introduce a resolution making September Childhood Cancer Awareness Month, which is on today’s consent calendar.

This family, when you hear their whole story, is a powerful example of faith, hope, and love. I would ask that the family, as well as any other families who may be here for Childhood Cancer Awareness Month, stand and be recognized at this time.

Senator Hunter offered the following resolution:

Senate Resolution No. 79.

A resolution to urge the United States Department of Defense to direct contracts to Michigan companies.

Whereas, Southeast Michigan earned the title “Arsenal of Democracy” in World War II. Despite this legacy, our region’s role in the defense industries has declined a great deal. Nonetheless, Michigan retains a wealth of defense and defense-related expertise that the United States Department of Defense should utilize in building a 21st century military; and

Whereas, A recent example of southeast Michigan hosting a defense-related firm is the city of Inkster’s success in having one of its high-tech companies secure a contract for developing a web security system for use by the United States Navy. Such a contract demonstrates the potential for further defense work in a particularly hard hit area in our state. The benefits of such contracts have an impact throughout southeast Michigan and our entire state; and

Whereas, As Michigan seeks to diversify its economy from over-reliance on automobile manufacturing, the knowledge and infrastructure that supported these older industries are still invaluable in building new industries. Michigan remains a powerful asset that can host defense initiatives that seek to harness advanced technology for our nation’s defense; now, therefore, be it

Resolved by the Senate, That we urge the United States Department of Defense to direct contracts to Michigan companies; and be it further

Resolved, That copies of this resolution be transmitted to the United States Secretary of Defense.

Senators Anderson, Birkholz, Clark-Coleman, Gleason, Kuipers, Olshove, Switalski and Thomas were named co‑sponsors of the resolution.

Senators Brown, Patterson, Kuipers, Cropsey, Pappageorge, Jelinek and Barcia offered the following resolution:

Senate Resolution No. 77.

A resolution to memorialize the Congress of the United States to oppose the implementation of a cap and trade program that would negatively impact Michigan residents through the elimination of jobs and by increasing the costs of goods and services.

Whereas, In the face of dire economic circumstances and increasing evidence that other strategies could prove more effective in cleaning up carbon emissions, Congress and the White House are advancing cap and trade legislation. This initiative, often referred to as the Waxman-Markey bill, is predicated on limited levels of permissible carbon dioxide emissions that would decrease over time. This program holds serious long- and short-term perils for our state and nation; and

Whereas, The true impact of the cap and trade concept is that it would result in immediately raised costs for energy produced through the burning of fossil fuels. While estimates vary, there is no doubt that the extra costs come at a time in which our economy faces grave challenges. For individual families and businesses, any jump in energy costs could prove devastating. The potential damage this move could have on employment is frightening to many; and

Whereas, Evidence reveals that cap and trade is a job killer. Michigan’s unemployment rate reached 15.4 percent in June while the national unemployment rate was 9.7 percent. Estimates of net job losses associated with cap and trade are 1.2 million to 2.3 million by 2015. Some of these jobs will be lost for good due to the impact of higher energy costs on economic activity. Others, chiefly in the manufacturing sector, will be sent overseas. Given the very likely combination of significantly higher domestic manufacturing costs and developing nations refusing to impose similar restrictions, the American economy could experience a substantial outsourcing of manufacturing jobs to those nations with lower energy costs; and

Whereas, Estimates show that for a household of four, the higher cost of energy associated with cap and trade will cost an average of $2,979 annually from 2012 to 2035. This amount includes cost increases for direct energy use, with conservative estimates indicating electricity rising by 90 percent, gasoline increasing by 58 percent, and natural gas climbing by 55 percent by 2035. Higher energy costs will also affect the price of all items purchased by families, individuals, and businesses, including food, clothing, and furniture, as those items require energy for their production and transport; and

Whereas, Without global participation from China and India and other less-developed countries, our businesses will be at a competitive disadvantage to businesses in those countries that generally use energy less efficiently. Global energy demand is expected to rise rapidly over the next two decades, and much of the demand will come from developing countries. The cap and trade legislation fails to consider the growth of emissions in countries such as China and India, where the increasing emissions will negate American sacrifices. Cap and trade will shift jobs overseas, harming the U.S. economy; and

Whereas, Americans should know the deeply unequal ways that climate costs would be distributed across regions and income groups. According to a March 9, 2009, article in the Wall Street Journal entitled “Who Pays for Cap and Trade?,” hit hardest would be the “95 percent of working families.” Adding this governmental cost on carbon is regressive by definition because poor and middle-income households spend more of their paychecks on items or commodities such as gasoline to drive to work, groceries, or home heating; and

Whereas, The greatest inequities are geographic and would be imposed on the parts of the U.S.—including Michigan—that rely most on manufacturing or fossil fuels—particularly coal, which generates most power in the Midwest, Southern, and Plains states; and

Whereas, Coal provides more than half of U.S. electricity, and 25 states get more than 50 percent of their electricity from conventional coal-fired generation. Taxpayers in Michigan (where it totals 60 percent), Indiana (94 percent), Ohio (86 percent), Missouri (85 percent), New Mexico (80 percent), Pennsylvania (56 percent), West Virginia (98 percent), and Wyoming (95 percent) will be impacted significantly; and

Whereas, Michigan’s industrial base puts the state in position to be disproportionately impacted by higher costs under the bill than other states and other regions of the country. This is why U.S. Senator Debbie Stabenow and 15 of her Senate Democrat colleagues have already parted from the administration by demanding that the bill be rewritten so that “consumers and workers in all regions of the U.S. are protected from undue hardship.” The net effect of this would be to call for more corporate welfare for carbon-heavy businesses subjected to the new tax; and

Whereas, Cap and trade is truly a proposal to redistribute income and wealth—in a very curious way. It takes from the working class and gives to the affluent; it takes from Michigan and Ohio and gives to California and Florida; and it takes from an industrial America that is already struggling and gives to rich Silicon Valley and Wall Street “green tech” investors who know how to leverage political clout; and

Whereas, In addition to the notably higher costs imposed on businesses, utilities, and individuals, a cap and trade program will create a more hostile trade environment that costs U.S. firms access to global markets. Job losses are so certain under this new cap and tax plan that it includes a provision accommodating newly unemployed workers from the resulting dried-up energy sector to the tune of $4.2 billion over eight years. The program does not recognize that American prosperity has always been driven by the steady supply of abundant, affordable energy. Consequently, policymakers should maintain the integrity and freedom of global markets as a means to transfer clean technologies, keep international investment flowing, and promote economic growth and prosperity in the U.S. and around the world; and

Whereas, The Wall Street Journal, March 9, 2009, stated: “Cap and trade is the tax that dare[s] not speak its name, and supporters hope in particular that no one notices who would pay for their climate ambitions . . . with President Obama depending on vast new carbon revenues in his budget”; and

Whereas, President Obama proudly declared on taking office that his administration would not politicize science, but the record reflects that the Environmental Protection Agency (EPA) recently ordered the suppression of a report by one of its own researchers who criticized the agency’s plan to regulate carbon dioxide as a pollutant and accused it of relying on outdated science in setting climate change policy. It also dared to suggest that the Earth is actually cooling. Just before the House of Representatives voted, by a narrow margin (219-212), to pass the Waxman-Markey bill, a series of internal EPA e-mails were released that showed an internal report prepared by a 35-year career EPA analyst who criticized EPA’s recent pronouncement on climate change. These e-mails had been squelched for political reasons, with the senior analyst forbidden from speaking on the issue to anyone outside his office; and

Whereas, The e-mails disclosed that the EPA had deliberately ignored major new research developments in providing its most recent declaration on climate change prior to the vote on the cap and trade bill. Those developments include a continued decline in global temperatures over the last 10 years, a new consensus that future hurricanes will not be more frequent or intense, and new findings that water vapor will moderate, rather than exacerbate, temperature; and

Whereas, The e-mails also disclosed that the EPA’s Director of Environmental Economics told the senior analyst who prepared the report that the EPA research would not be shared with lawmakers before their vote on the legislation because the “Administration has decided to move forward on endangerment and those comments do not help the legal or policy case for this decision”; and

Whereas, The end result of the EPA’s actions denied public access to important agency information. Despite the President’s previous claims to the contrary, it appears the EPA became so committed to a particular result in the cap and trade debate that it resisted engaging in a genuine reconsideration of the underlying issue of climate change. It appears the administration’s extensive pronouncements about transparency and scientific honesty may simply be political rhetoric, including a speech by President Obama on April 27, 2009, to the National Academy of Sciences in which he proclaimed: “Under my administration the days of science taking a back seat to ideology are over”; and

Whereas, Prominent atmospheric scientists recently sent a letter to Congress saying, “You are being deceived about global warming . . . The Earth has been cooling for 10 years . . . The present cooling was not predicted by the computer models which have hereto been relied upon since political leaders gathered in Kyoto, Japan, in December 1997 to consider a world treaty restricting human production of ‘greenhouse gases,’ chiefly carbon dioxide”; and

Whereas, Increasing new data has emerged that shows that instead of there being global warming, the Earth has been cooling for the last 10 years and that the reasons for the climate change were not analyzed by the Kyoto summit. Last March, more than 700 international scientists went on record dissenting over the man-made global warming claims. About 31,500 American scientists have signed a petition that reads, in part: “There is no convincing scientific evidence that human release of carbon dioxide, methane, or other greenhouse gases is causing or will, in the foreseeable future, cause catastrophic heating of the Earth’s atmosphere and disruption of the Earth’s climate”; and

Whereas, If doubts are raised about the reality of global warming, it threatens the administration’s ambition to use climate change legislation to fundamentally reorder American society. This is because the cap and trade bill promises to be both a massive indirect tax on the American people and a profound controller of economic activity. The cap and trade program would result in a massive windfall of billions of dollars for the federal government but result in the loss of hundreds of thousands of jobs. It amounts to the largest tax increase in American history—arguably taxation without representation. The program also reflects Congress once again overstepping its constitutional boundaries by usurping states’ powers under the 10th Amendment of the United States Constitution by preempting states from enacting their own energy standards from 2012 to 2017; and

Whereas, Approximately 99.72 percent of the “greenhouse effect” is due to natural causes—mostly water vapor and traces of other gases—which we can do nothing at all about. Eliminating human activity altogether would have little impact on climate change. Moreover, the cap and trade program will ultimately have a minimal impact on global industry emissions because it creates an incentive for industries to simply relocate to countries with less stringent standards; and

Whereas, Instead of trying to masquerade wealth distribution schemes as energy reform, we would be better served by focusing our attention on providing incentives to advance cleaner energy, reducing inefficiencies in our current distribution system, removing tax and regulatory barriers to innovation and investment in energy technology, and fostering stronger partnerships with developing economies to help clean up emissions where the rate of growth is far greater than in our country; now, therefore, be it

Resolved by the Senate, That we memorialize the Congress of the United States to oppose the implementation of a cap and trade program; and be it further

Resolved, That copies of this resolution be transmitted to the President of the United States Senate, the Speaker of the United States House of Representatives, and the members of the Michigan congressional delegation.

Pending the order that, under rule 3.204, the resolution be referred to the Committee on Government Operations and Reform,

Senator Cropsey moved that the rule be suspended.

The motion prevailed, a majority of the members serving voting therefor.

The question being on the adoption of the resolution,

Senator Cropsey requested the yeas and nays.

The yeas and nays were ordered, 1/5 of the members present voting therefor.

The resolution was adopted, a majority of the members voting therefor, as follows:

Roll Call No. 444 Yeas—22

Allen Cropsey Jelinek Patterson

Barcia Garcia Kahn Richardville

Birkholz George Kuipers Sanborn

Bishop Gilbert McManus Stamas

Brown Gleason Pappageorge Van Woerkom

Cassis Hardiman

Nays—14

Anderson Clark-Coleman Olshove Switalski

Basham Clarke Prusi Thomas

Brater Hunter Scott Whitmer

Cherry Jacobs

Excused—1

Jansen

Not Voting—0

In The Chair: President

Senator Hardiman was named co‑sponsor of the resolution.

Protest

Senator Brater, under her constitutional right of protest (Art. 4, Sec. 18), protested against the adoption of Senate Resolution No. 77 and moved that the statement she made during the discussion of the resolution be printed as her reasons for voting “no.”

The motion prevailed.

Senator Brater’s statement is as follows:

I rise to oppose Senate Resolution No. 77. Global warming and the escape of greenhouse gases into our atmosphere from human activity has been shown to have a greatly adverse effect on our environment and ongoing human sustainability of life as we know it on this planet. It has even been named a domestic security threat by federal sources that are looking at the effects of climate change in various parts of the globe. The drying up of water and food resources can greatly affect the stability of populations around the globe.

Here in Michigan we have seen instability in lake levels that have cost resorts and other tourist industry-related enterprises to have effects on their prosperity. We have seen projected changes in habitat that could affect our ongoing tourism, hunting, and fishing activities in this state; also the effects on Michigan agriculture and the growing season. There are real economic costs to do nothing. Research has shown that it is more costly to do nothing to contain greenhouse gases than to try to implement programs such as cap and trade.

Research has shown that we can stabilize CO2 at 450 parts per million for the net cost of zero. Cap and trade unleashes creativity of private enterprise in a way that is very exciting. We know that when a similar program was implemented to contain the effects of acid rain, the dire predictions for costs never came to be. In fact, with many environmental programs for environmental protection, this is the pattern that we see. Cries of the sky is falling and that this is going to ruin our economy, in fact, these numbers that are thrown around never materialize.

I am grateful for the work that the Congress is doing to implement a cap and trade program to contain global warming in a timely way. It is actually very urgent that we move forward to implement this program. I strongly oppose this resolution.

Senators Brown and Cropsey asked and were granted unanimous consent to make statements and moved that the statements be printed in the Journal.

The motion prevailed.

Senator Brown’s statement is as follows:

Senate Resolution No. 77 urges Congress to reject the cap and trade bill now before the U.S. Senate because the legislation, if enacted, would negatively impact Michigan residents through the elimination of jobs and also by significantly increasing the costs of goods and services. Many observers have characterized cap and trade as a jobs killer. Estimates of net job losses associated with cap and trade are 1.2 million to 2.3 million by 2015. This makes the bill particularly problematic for Michigan as Michigan’s unemployment rate reached 15.4 percent in June with no relief in sight. Higher domestic manufacturing costs and the refusal of developing nations to abide by similar environmental restrictions will cause American manufacturing jobs to be outsourced to foreign lands.

In addition, Michigan residents will see cost increases in nearly all goods and services. Estimates show that for a household of four, cost increases translate to an average tax increase of $2,979 from 2012 to 2035. For example, by 2035, estimates show that electricity rates will go up—some say by as much as 90 percent—gasoline will increase by 58 percent, and natural gas by 55 percent by 2035.

Higher energy costs will also affect the price of all items purchased by families, individuals, and businesses that require energy for either transport or production. That is why the Detroit News said the cap and trade bill will break the budget of U.S. households. Michigan will be especially hard hit as a manufacturing state with 60 percent of our electrical supply coming from coal. Science has not played a significant enough role in the current discussion on cap and trade. Reports indicated that key research by Environmental Protection Agency officials was deliberately suppressed by the administration to hide evidence that contends the earth is actually cooling.

Turning our back on coal, the planet’s most abundant source of energy, in the midst of the worst recession in 70 years is unwise. Americans should not be taxed trillions of dollars to fund this fundamental energy shift. Congress should oppose cap and trade as it will result in capping our growth and trading our jobs. Please support Senate Resolution No. 77.

Senator Cropsey’s statement is as follows:

The economic impacts of the cap and trade legislation is not only devastating to the national economy, but it represents an uneven burden on the states. For example, Michigan is No. 8 out of the 50 states as far as job losses are concerned under the cap and trade legislation. We are already reeling under the impacts of the changes going on in the automobile industry. Now we add onto it cap and trade.

Gas price increases in Michigan will be uneven. We will be No. 4 as far as the gas price increases in the state of Michigan because of cap and trade. Our gross state product would be losing $844 per person because of cap and trade. Also the average cost of electricity for households will go up by $444 because of cap and trade. This is suicide legislation for an economy. I would hope that this body from Michigan would send a strong message to the United States government that we do not need any more of their help in trying to kill our economy.

This is devastating. The President of the United States said that cap and trade legislation that he has proposed would cost nationwide $646 billion—$646 billion. Michigan is going to be especially hit hard in this. I would hope that this body would send a really strong message to Washington, D.C.: Do not do anything more to destroy Michigan’s economy.

Senators Brown, Garcia, Kuipers and Birkholz offered the following resolution:

Senate Resolution No. 80.

A resolution expressing the intent of the Michigan State Legislature to formulate and adopt, with our neighboring states and provinces, a Great Lakes States Homeland Security Compact.

Whereas, The 10th Amendment to the United States Constitution guarantees that each state is responsible for the health and welfare of its citizens and may call upon the federal government only when an incident overwhelms its capabilities; and

Whereas, The Stafford Act, 42 USC 5121, constitutes the statutory authority for most federal disaster response activities and confers on the governor of each state the authority to request federal assistance in responding to incidents beyond the response capacity of the state and local governments. In 1996, Congress enacted the Emergency Management Assistance Compact Act (EMAC), as a uniform interstate compact (PL 104-321) authorizing member states to provide assistance after disasters overwhelm a state’s capacity to manage the consequences; and

Whereas, Our federal system of government has both strengths and weaknesses in responding to emergencies. While the federal government can mobilize resources that exceed the capacity of any individual state, experience shows that the federal government is too distant to respond as rapidly as events may require. As Hurricane Katrina demonstrated, the federal government may need 72 hours to marshal the national resources and reach the scene of the emergency; and

Whereas, While an individual state is positioned to react faster, our resources may be inadequate to cope with national security emergencies that are national in scope and impact. An initiative to create a regional emergency management system that strengthens state and local preparedness among the states with a common set of problems and issues would help bridge the gap between the speed that a state may react and the scale of resources that the federal government can deploy; and

Whereas, The conclusions of the Department of Homeland Security (DHS) National Plan Review’s Phase 2 Report, dated June 16, 2006, were that states and urban areas need to coordinate planning across jurisdictions and levels of government for issues such as evacuation, special needs populations, plans for continuity of operations, assuring a command structure, patient tracking, resource management, and both operational and public communications. While EMAC is a successful tool for states to respond to incidents on a regional basis, it is limited in that its role is to support responses rather than to help states become better prepared. Nor does it account for the specific needs, capabilities, and nuances of individual states; and

Whereas, A Regional Emergency Management Support System (REMSS) developed by self-selected states through interstate compacts would strengthen collaboration and coordination, improve emergency communications, create incentives for planning and planning excellence, strengthen regional planning capabilities, develop a common reference system, and be a supplement to existing EMAC activities; and

Whereas, Under this regional system, each REMSS would have a regional implementing entity (RIE) that would work with each signatory state and the regional office of the Department of Homeland Security to strengthen each state’s capabilities in all facets of the emergency management cycle. The federal government, through its grant design and requirements, encourages structures and practices associated with effective regional efforts. For example, the DHS Urban Area Security Initiative (UASI) grant program has previously allowed multiple local jurisdictions to pool some of their grant resources to establish a regionwide UASI effort; and

Whereas, Coordinated multistate efforts would allow member states to better leverage federal funding as an effective regional effort. Staffed by emergency management experts from each state and representatives from the federal government, each RIE would become the focal point for emergency response within its region. The RIEs would build baseline databases of resources available within each signatory state, coordinate interstate exercises, and work closely with first responders and others during triggering events. When a triggering event occurred, the RIE would quickly identify and locate needed resources and provide them to the affected state. In a dangerous and unpredictable world, we must make use of existing state-level resources to maximize our ability to respond to regional homeland security emergencies; now, therefore, be it

Resolved by the Senate, That we express the intent of the Michigan State Legislature to formulate and adopt, with our neighboring states and provinces, a Great Lakes States Homeland Security Compact; and be it further

Resolved, That copies of this resolution be transmitted to Governor Granholm; the executive and legislative branches of Minnesota, Wisconsin, Illinois, Indiana, Ohio, Pennsylvania, New York, Quebec, and Ontario; the President of the United States Senate; the Speaker of the United States House of Representatives; and the members of the Michigan congressional delegation, as an invitation to our neighboring states and provinces to engage in good faith negotiations to complete such a security compact.

Pending the order that, under rule 3.204, the resolution be referred to the Committee on Government Operations and Reform,

Senator Cropsey moved that the rule be suspended.

The motion prevailed, a majority of the members serving voting therefor.

The question being on the adoption of the resolution,

Senator Cropsey moved that the resolution be referred to the Committee on Homeland Security and Emerging Technologies.

The motion prevailed.

Senators Gleason, Pappageorge, Patterson, Switalski and Thomas were named co‑sponsors of the resolution.

Senators Brown, Garcia, Kuipers, Birkholz and Pappageorge offered the following concurrent resolution:

Senate Concurrent Resolution No. 20.

A concurrent resolution expressing the intent of the Michigan State Legislature to formulate and adopt, with our neighboring states and provinces, a Great Lakes States Homeland Security Compact.

Resolved by the Senate (the House of Representatives concurring), That we express the intent of the Michigan State Legislature to formulate and adopt, with our neighboring states and provinces, a Great Lakes States Homeland Security Compact; and be it further

Pending the order that, under rule 3.204, the concurrent resolution be referred to the Committee on Government Operations and Reform,

Senator Cropsey moved that the rule be suspended.

The motion prevailed, a majority of the members serving voting therefor.

The question being on the adoption of the concurrent resolution,

Senator Cropsey moved that the concurrent resolution be referred to the Committee on Homeland Security and Emerging Technologies.

The motion prevailed.

Senators Gleason, Patterson, Switalski and Thomas were named co‑sponsors of the concurrent resolution.

Introduction and Referral of Bills

Senator Jelinek introduced

Senate Bill No. 797, entitled

A bill to make, supplement, and adjust appropriations for various state departments and agencies for the fiscal year ending September 30, 2010; and to provide for the expenditure of the appropriations.

The bill was read a first and second time by title and referred to the Committee on Appropriations.

Senator Gleason introduced

Senate Bill No. 798, entitled

A bill to amend 1967 PA 281, entitled “Income tax act of 1967,” by amending section 51 (MCL 206.51), as amended by 2007 PA 94.

The bill was read a first and second time by title and referred to the Committee on Finance.

Senators Kahn, Richardville, Van Woerkom, Garcia, Brown, Kuipers, Birkholz, Pappageorge, Barcia and Sanborn introduced

Senate Bill No. 799, entitled

A bill to amend 1978 PA 368, entitled “Public health code,” by amending sections 16221 and 16226 (MCL 333.16221 and 333.16226), as amended by 2004 PA 214, and by adding sections 17015a and 17515a.

The bill was read a first and second time by title and referred to the Committee on Health Policy.

Senator Kahn introduced

Senate Bill No. 800, entitled

A bill to amend 1953 PA 181, entitled “An act relative to investigations in certain instances of the causes of death within this state due to violence, negligence or other act or omission of a criminal nature or to protect public health; to provide for the taking of statements from injured persons under certain circumstances; to abolish the office of coroner and to create the office of county medical examiner in certain counties; to prescribe the powers and duties of county medical examiners; to prescribe penalties for violations of the provisions of this act; and to prescribe a referendum thereon,” by amending section 5 (MCL 52.205), as amended by 2006 PA 569.

The bill was read a first and second time by title and referred to the Committee on Local, Urban and State Affairs.

Senators Patterson, Gilbert, Kuipers, Birkholz, Barcia and Whitmer introduced

Senate Bill No. 801, entitled

A bill to amend 1968 PA 318, entitled “An act to implement the provisions of section 10 of article 4 of the constitution relating to substantial conflicts of interest on the part of members of the legislature and state officers in respect to contracts with the state and the political subdivisions thereof; to provide for penalties for the violation thereof; to repeal all acts and parts of acts in conflict with this act; and to validate certain contracts,” (MCL 15.301 to 15.310) by adding section 2a.