Chamber Announces Support for New International Trade Crossing

Today – The Muskegon Area Chamber of Commerce announces its support for the construction of the New International Trade Crossing based on approved legislative priorities to continue to advocate for infrastructure funding to meet the demands of the growing West Michigan region, support for the development of an integrated, intermodal, long-term transportation infrastructure strategy, support for a 21st Century border with Canada and improved access to Michigan ports.

Sixty percent of all Michigan trade – $44 billion a year – is with Canada, and over 3,300 jobs in Muskegon County are tied to trade with Canada and a significant number of West Michigan companies do business with Canada every day.

“As one of the state’s few commercial port cities, we understand the importance of multimodal transportation for economic development,” stated Cindy Larsen, President of the Muskegon Area Chamber of Commerce. “The more ability we have to move products and people throughout Michigan, the more commerce will take place, ultimately resulting in job creation.  These are exciting times for Muskegon as we see resurgence in our manufacturing and tourism sectors.  An additional bridge to Canada will enhance both of these sectors and allow us to better prosper in the new economy.”

The United States and Canada share the largest trading relationship of any two countries in the world. With the growing trade volumes, combined with aging infrastructure, it is no surprise that along the 4,000-mile border, no single area is more significant to trade than the Southeast Michigan/Southwest Ontario border crossings. Experts believe that if no improvements are made to border crossing capabilities in the Detroit River area by 2030, the two nations will see losses of up to 80,000 U.S. jobs, 70,000 Canadian jobs and combined annual production losses of $32 billion since 2001, the threat of terrorism has meant concerns about infrastructure redundancy and broad policy shifts affecting the border.

To read more about this proposed bridge and the Chamber’s support for it.  Click here.

Business Leaders of Michigan Leadership Summit: Understanding the State’s Fiscal Health

Over 400 business and community leaders from across Michigan had the opportunity to hear from great thinkers on January 31 including Andy Dillon, State of Michigan Treasurer;  Robert Daddow, Oakland County Deputy Executive; John Nixon, new State Budget Director; and Governor Rick Snyder to talk about the state’s fiscal health.

There were A LOT of numbers and graphs to digest in one afternoon. All of the presentations are available on the Business Leaders for Michigan website in the left column. http://www.businessleadersformichigan.com/leadershipsummit/january-2011.

Bottom line…Michigan has some tough decisions to make, but we’re in it together. There is definitely a shared sense of commitment among top leadership to share information and ideas. The structural fiscal problem needs to be addressed first so we can move forward with other issues.

In February, legislation will be introduced to amend PA 72, the Local Government Fiscal Responsibility Act. This is a start to giving local municipalities the tools they need to make financial adjustments to stay viable. It was clear that locals and the state will need to work together because balancing the state’s budget is going to take reductions to local units of government.

On February 17, Governor Snyder is going to release his proposed 2012 budget and right next to it will be his proposed 2013 budget. He is a big proponent of multiyear budgeting even though there are currently constitutional barriers to the legislature enacting both years. He believes ALL municipalities (and businesses) should enact multiyear budgeting.

You’ve probably heard about the newly released 2011 Citizen’s Guide to Michigan’s Financial Health – Dollars and Sense:  How State and Local Governments in Michigan Spend your Money. This was produced in an effort to provide a breakdown of important budget information into a 20 page document from the 300 page Comprehensive Annual Financial Report (CAFR). Business Leaders for Michigan went even further and turned the 20 page report into a 2 page scorecard format. The research groups involved in the process learned that breaking this information down into “business metrics” and comparing “apples to apples” was not easy. In response, they created a ‘plug and play’ tool for local governments and school districts to use that will mirror the same indicators as the state report right down to including the graphs.

Links -

Public Act 72 of 1990 – Local Government Fiscal Responsibility Act: 

http://www.legislature.mi.gov/(S(2wxhkr455zdxvjnfq4ygb5ij))/mileg.aspx?page=getobject&objectname=mcl-Act-72-of-1990&query=on   

2011 Citizen’s Guide to Michigan’s Financial Health:

http://www.businessleadersformichigan.com/files/2011_Guide_to_MI_Financial_Health.pdf   

2011 Data source appendix:

http://www.businessleadersformichigan.com/files/2011_Guide_to_MI_Financial_Health_APPENDIX.pdf  

Michigan Fiscal Scorecard:

http://www.businessleadersformichigan.com/files/BLM_Scorecard_print_version.pdf   

Template tools for local municipalities and school districts:

http://www.businessleadersformichigan.com/files/Local_Citizen_Guide_Template.doc

http://www.businessleadersformichigan.com/files/Transparency_Tool_for_Local_Governments.xls

Michigan House of Representatives Committee Appointments Made

Michigan House of Representatives Committee Appointments have been posted and are as follows:

Agriculture (15 Members) Wed., 9 a.m. 521 HOB

Daley (C), Denby (VC), Glardon, Johnson, Kurtz, LaFontaine, McBroom, Rendon, Tyler, Outman, Santana (MVC), Erwin-Oakes, Talabi, Hovey-Wright, Segal

Appropriations (27 Members) TBD 352 CB

Moss (C), Haveman (VC), Agema, Rogers, Lori, Genetski, Kowall, Goike, Jenkins, Poleski, MacGregor, Pscholka, Bumstead, Potvin, MacMaster, Cotter, Forlini, LeBlanc (MVC), Ananich, Bauer, Dillon, Durhal, Jackson, Lindberg, Lipton, McCann, Tlaib

Banking & Financial Services (11 Members) Wed., 9 a.m. 326 HOB

Knollenberg (C), Lyons (VC), Farrington, Foster, Huuki, Olson, Pettalia, Womack (MVC), Switalski, Clemente, Stanley

Commerce (19 Members) Tues., 10:30 a.m. 519 HOB

Schmidt (C), Tyler (VC), Farrington, Gilbert, Glardon, Knollenberg, Lund, Denby, Shaughnessy, Shirkey, Somerville, Zorn, Switalski (MVC), Bledsoe, Haugh, Barnett, Clemente, Melton, Olumba

Education (19 Members) Wed., 9 a.m. 519 HOB

Scott (C), Hooker (VC), Price, Heise, Hughes, Shaughnessy, McMillin, Crawford, O’Brien, Nesbitt, Yonker, Franz, Brown (MVC), Darany, Howze, Hobbs, Rutledge, Stallworth, Geiss

Energy & Technology (21 Members) Tues., 9 a.m. 519 HOB

Horn (C), Shirkey (VC), Crawford, McBroom, Franz, Jacobsen, Price, Nesbitt, Opsommer, Outman, Kowall, Zorn, Haveman, Schmidt (MVC), Santana, Irwin, Brunner, Melton, Cavanagh, Smiley, Switalski

Families, Children and Seniors (9 Members) Tues., 10:30 a.m. 327 HOB

Kurtz (C), O’Brien (VC), Haines, Heise, Hooker, Rendon, Slavens (MVC), Lane, Stapleton

Government Operations (5 Members) Wed., 12 p.m. 308 HOB

Stamas (C), Nesbitt (VC), McMillin, Barnett (MVC), Kandrevas

Health Policy (17 Members), Thurs., 9 a.m. 519 HOB

Haines (C), Calton (VC), Hooker, Huuki, Kurtz, Muxlow, Opsommer, Schmidt, Scott, Yonker, Shirkey, Liss (MVC), Stallworth, Darany, Segal, Womack, Hovey-Wright

Insurance (17 Members), Thurs., 10:30 a.m. 519 HOB

Lund (C), Shaughnessy (VC), Calton, Denby, Glardon, Johnson, Opsommer, O’Brien, Lyons, LaFontaine, Yonker, Kandrevas (MVC), R. Schmidt, Segal, Hovey-Wright, Howze, Geiss

Judiciary (17 Members), Thurs., 10:30 a.m. 521 HOB

Walsh (C), Heise (VC), Muxlow, Damrow, Gilbert, Horn, Jacobson, Pettalia, Scott, Somerville, Meadows (MVC), Constan, Erwin-Oakes, L. Brown, Irwin, Cavanaugh, Olumba

Local, Intergovernmental & Regional Affairs (15 Members) Thurs., 307 HOB

Ouimet (C), Pettalia (VC), Price, Crawford, Daley, Hughes, LaFontaine, Shaughnessy, Rendon, Stanley (MVC), Constan, Townsend, Stapleton, Rutledge, Lane

Military & Veterans Affairs and Homeland Security (11 Members), Tues., 12 p.m. 308 HOB

Damrow (C), Franz (VC), Haines, Calton, Tyler, Zorn, Nathan (MVC), Darany, Smiley, Liss, Clemente

Natural Resources, Tourism & Outdoor Recreation (11 Members), Tues., 9 a.m. 307 HOB

Foster (C), Huuki (VC), Hughes, Damrow, Johnson, Pettalia, Schmidt, Haugh (MVC), Womack, Bledsoe, Slavens

Oversight, Reform & Ethics (6 Members), Tues., 12 p.m. 326 HOB

McMillin (C), Jacobsen (VC), Price, Denby, Bledsoe (MVC), L.Brown

Redistricting & Elections (9 Members), Tues., 9 a.m. 521 HOB

Lund (C), McBroom (VC), Knollenberg, Scott, Tyler, Outman, Byrum (MVC), Nathan, Stanley

Regulatory Reform (15 Members), Wed., 10:30 a.m. 521 HOB

Crawford (C), Yonker (VC), Franz, Daley, McBroom, McMillin, Opsommer, Rendon, Shirkey, Stamas, Melton (MVC), Haugh, Byrum, Slavens, Womack

Tax Policy (17 Members), Wed., 10:30 a.m. 519 HOB

Gilbert (C), Walsh (VC), Farrington, Foster, Horn, Nesbitt, O’Brien, Olson, Ouimet, Lyons, Constan (MVC), Barnett, Kandrevas, Meadows, Townsend, Cavanaugh, Hobbs

Transportation (17 Members), Wed., 12 a.m. 307 HOB

Opsommer (C), Glardon (VC), Daley, Ouimet, Huuki, Jacobsen, Muxlow, Olson, Schmidt, Somerville, Geiss (MVC), Talabi, Nathan, Liss, Byrum, Smiley, R. Schmidt

Year End Update on Federal Issues

Taxes

Congress, with its back to the wall and the looming threat of a weak recovery turning into a double-dip recession, acted on the expiring tax provisions. They extended existing income tax rates, taxes on capital gains and dividends, the AMT “patch,” and the already-expired tax “extenders” (the R&D tax credit, the ability to deduct state sales taxes, and many more). They cut a deal to reinstate the estate tax, but at a lower rate (35%) and with a bigger exclusion ($5 million) than many thought possible. And they reduced the employees’ payroll tax withholding by two percentage points next year, allowing workers to keep and spend more of their income. Now, the talk is of restructuring the entire tax code, to streamline the system by eliminating credits and deductions and flattening tax rates at lower levels. It’s a huge undertaking, with limited chances of success in such a fractured political environment.

Health Care

The sweeping health care package that Congress passed is now law. What remains is implementation – writing hundreds of new rules, setting up new agencies in all 50 states, enforcing compliance, processing lawsuits aimed at stopping the new health plan, and dealing with unforeseen consequences through future legislative fixes. The massive health care law creates 159 new agencies, commissions, panels, and other bodies. Topping the list of concerns is the 1099 reporting requirement, but that is hardly the only problem. When McDonalds’s insurers said they’d have to drop coverage for 30,000 employees the company quickly received a waiver from new requirements on plan benefits. Many more problems on this scale or larger will surely arise.

Employee Free Choice Act

The card check bill, EFCA, never got over the 60-vote hurdle in the Senate. Efforts by the U.S. Chamber and many of you helped raise the heat on key Senators, making them unwilling to support a bill that would spur unionization through openly undemocratic means. However, be on the lookout for possible executive orders and rulemakings by the NLRB and Department of Labor that would advance the main objective of the card check bill – making it easier for unions to organize and harder for employers to resist – but would circumvent Congress altogether.

Cap-and-Trade

Climate change legislation should 1) preserve American jobs and the competitiveness of U.S. industries, 2) provide for an international solution that includes emerging nations, 3) promotes accelerated development and deployment of greenhouse gas reduction technology, 4) reduces barriers to the development of climate-friendly energy sources, and 5) promotes energy conservation and efficiencies. The cap-and-trade proposals that passed the House and died in the Senate did not accomplish those goals. The election results put the final nail in the cap-and-trade coffin, though other approaches may be tried. Most ominously, the EPA may go it alone with a heavy-handed regulatory regime. Resource: www.energyxxi.org.

Transportation

The 111th Congress failed to pass a reauthorization of federal highway and transit programs – SAFETEA-LU, and the programs and fees associated with the daily operations of the Federal Aviation Administration (FAA). Both of these programs are currently operating on a series of short-term extensions. Congress also failed to enact a Water Resources Development Act (WRDA), a bill which is supposed to be enacted every two years and deals with various aspects of water resources including navigation infrastructure. The relevant committee chairmen have all indicated that they plan to move forward drafting each of these important pieces of legislation at the beginning of the 112th Congress.

Financial Regulatory Reform

On July 21, President Obama signed the “Wall Street Reform and Consumer Protection Act of 2010” (Dodd-Frank) into law. While the U.S. Chamber was able to make some improvements, Dodd-Frank does not achieve comprehensive and effective regulatory reform nor does it address some of the core causes of the financial crisis. The real impact of the Act will depend on its implementation by regulators who will write nearly 500 new rules, 60 studies, and 63 reports. Looking forward, the U.S. Chamber’s Center or Capital Markets Competitiveness (CCMC) will ensure that key regulatory proposals meet federally required cost-benefit tests and are supported by empirical evidence. We will challenge regulations that do not meet these tests and could harm the economy during the rulemaking process and, when necessary, in the courts. Resource: www.centerforcapitalmarkets.com.

Trade

After several long years of negotiations, the White House signed the Korea – U.S. Free Trade Agreement, known as KORUS, in early December. This agreement must now be ratified by Congress. KORUS will dramatically open Korean markets, the 15th largest economy in the world, to U.S. exporters once it is ratified, and could boost U.S. exports by more than $10 billion and GDP by $12 billion. This will be an exciting opportunity in the new Congress for chambers of commerce to work proactively on legislation to expand the economy and grow jobs.  Resource: www.uskoreafta.org.

Immigration Reform

This year, Congress limited its efforts on immigration to passage of the Dream Act – and came up short. Next year, expect the first moves in this area to be on enhancing security, at the borders and through employment verification (E-Verify). Add in a workable guest worker program and perhaps the Dream Act and a deal might be possible, if still unlikely.  Resource: www.ewic.org.

Chamber urges NO vote on Constitutional Convention Ballot Question

2010 Constitutional Convention Ballot Question Position Paper

Approved by the Government Affairs Committee on August 13, 2010

Approved by the Board of Directors on August 19, 2010

RECOMMENDATION:    The Muskegon Area Chamber of Commerce urges a NO vote on the question of convening a constitutional convention that will appear on the November 2, 2010 ballot.

The costs to Michigan, both in the actual costs of the convention (estimated at $28 – $45 million by the Senate Fiscal Agency) and the special election of Con-Con delegates are not merited. An existing process is provided for amending the present constitution.

The Muskegon Area Chamber of Commerce believes that amendments, where deemed appropriate by the electors, can best be achieved on an issue-by-issue basis rather than through a complete revision.

RECOMMENDED BY:     Government Affairs Committee

BACKGROUND:            On the November 2, 2010 ballot, Michigan voters will be asked to decide whether to call a constitutional convention (Con-Con) for the State of Michigan. The ballot proposal will automatically appear due to the constitutional requirement that this question be placed before voters every 16 years. The Con-Con question will be Proposal 10-1.

If voters approve the call for a new constitutional convention in 2010, delegates would be elected within six months. The elections would be partisan, requiring a primary election and a general election to be held no later than May 3, 2011. One-hundred-forty-eight delegates would be elected, one from every State House and Senate district. These one-hundred-forty-eight delegates would convene in Lansing no later than October 4, 2011. The convention could be expected to last at least until July 2012.

Constitutional conventions in Michigan are unlimited in scope. Delegates can propose a completely new constitution or offer specific amendments. Any proposed constitution or amendment approved by a majority of the delegates must be submitted to the voters not less than 90 days following the adjournment of the convention.

Any issue may be debated, but a convention could be expected to deliberate on issues such as:

• Abortion rights
• Cap on the sales tax
• Direct gubernatorial appointment
• Drug legalization
• Elected or an appointed judiciary
• Headlee tax limits
• Local government structure
• Physician-assisted suicide
• Prohibition of a graduated income tax
• Prohibition on public aid to non-public education
• Prohibition on the death penalty
• Public school district consolidation
• Same sex marriage
• School funding and equity
• Term limits
• Unicameral Legislature

Over the years, the people of Michigan have adopted four state constitutions, in 1835, 1850, 1908 and most recently in 1963. Voters rejected two (1867 and 1873) and failed to approve the calling of a convention eleven times.

In 1866 when the question first appeared, Michigan voters agreed to call a new constitutional convention. However, in 1867, the new constitution that the convention had spent months drafting was rejected by the voters. In 1874, similar attempts to revise the constitution were rejected by the voters.

There have been two calls for a constitutional convention under the current Michigan constitution. In 1978, the question went before voters for the first time since the adoption of the 1963 constitution. Michigan voters defeated the call by a 70% to 30% margin and again in 1994 by a 72% to 28% margin.

Since 1963, the Michigan constitution has been amended 30 times, while 37 proposed amendments have been rejected by voters.

Only ten states have revised and adopted a greater number of state constitutions. Michigan was one of thirteen states to revise their state constitution between 1948 and 1975. Only two states have gone through the revision exercise in the years since.

The cost of conducting a constitutional convention and the special election of delegates is estimated at $45 million by the Senate Fiscal Agency. These appropriations would be enacted by the state legislature and there is no way of knowing what the level of compensation for delegates may be. 

POSITION AND RATIONALE:    The Muskegon Area Chamber of Commerce urges a NO vote on the question of convening a constitutional convention that will appear on the November 2, 2010 election ballot.

The Chamber opposes the Con-Con ballot question for the following reasons: 

• The majority of the problems in Lansing reflect the failures of political leadership, not the constitution. 
• The state’s constitution was not intended to, nor should be used to, legislate. Policy matters should go through the legislative process and be weighed by the legislature.  
• Opening the constitution to the full rewrite will attract well funded, single issue interest groups intending to influence the process. There are number of strong provisions in the current document that would be at risk such as the Headlee tax limits and prohibition on new state mandates without state funding.     
• The newly elected Governor, Secretary of State, Attorney General and the entire State Legislature will be rendered powerless for the duration of the convention.  
• Adequate mechanisms to amend the constitution already exist. Amendments can best be achieved on an issue-by-issue basis rather than through a complete revision.  
• Constitutional amendments should be made with sound cause.  Comprehensive study of these amendments on their individual merits is necessary to avoid unintended consequences.
• Economic development investment in the state would come to a standstill. Investment and job creation requires certainty, stability and predictability of the state’s tax and regulatory structure.
• The cost of holding a convention is estimated at $45 million. Given the ongoing billion dollar deficits facing the state each year, the estimated cost of a convention will have an impact on the services state government provides.

OPPONENTS’ POSITION AND RATIONALE:      Proponents of the ballot question argue that after years of discussion regarding the problems facing Michigan, the only means by which to force action is to do away with the current constitution.  Given the shift toward a service-based economy and in order to raise the funds to provide government services, a restructuring is necessary.  Further, they assert knowledgeable, thoughtful, active and responsible Michiganders from around the state would come forward to serve as delegates.

In 2006, the organization Citizens for Michigan completed a four-year review of the current constitution and made sixty-two specific recommendations to change the constitution.  The group urges approval for a Con-Con believing there are too many changes to be done one at a time and that the cost of holding a convention is a worthwhile investment to make.

RESPONSE:     While the Muskegon Area Chamber of Commerce does not believe the constitution is a perfect document, there is no overriding fault in the constitution that warrants a complete rewrite.  The Chamber strongly believes the status quo in Michigan must change. It shares the frustration of members and the public with the inaction by the State of Michigan to enact meaningful reform to eliminate the structural deficit and create an environment that promotes economic success.

Still, no compelling argument has been made to justify the uncertainty caused by having a legislature and a convention meeting at the same time during a continued fiscal crisis, the cost and the opportunity for single-issue special interest groups to use the convention as a vehicle to advance their agenda.

Certainty is a vitally important ingredient for business success. It creates a foundation for growth and encourages long-term investment in our state.  A convention will create more uncertainty in Michigan for another two to three years at a time when we cannot afford it.

As an alternative to a constitutional convention the Chamber is supportive of constitutional reform. Constitutional change can come about amendment by amendment through existing mechanisms.

ADVOCACY:      The Muskegon Area Chamber of Commerce will communicate its position to members, the community-at-large, the West Michigan Chamber Coalition and the statewide business community.

Furthermore, the Chamber will participate in coalitions of organizations opposed to the 2010 constitutional convention ballot question.

West Michigan Wind Assessment

The West Michigan Wind Assessment stakeholder group and project team have been meeting to learn about the issues surrounding wind farms including; environmental, social, economic, aesthetic and policy development.

As a stakeholder, the Muskegon Chamber is engaging in the dialogue and research to use available science report fact-based findings on the impact of on-shore and off-shore wind development.

From the West Michigan Wind Assessment website…

“The deployment of thousands of wind energy facilities required to meet various renewable energy targets will bring changes to the nation’s landscapes, communities, and economies.

The intent of this integrated assessment project is to comprehensively analyze the benefits and challenges to wind energy development in one particular region of coastal West Michigan, including Oceana, Muskegon, Ottawa and Allegan counties.

By combining science and public participation, our integrated assessment will empower citizens and local governments to make informed decisions about wind energy facilities in their communities. Our project will enhance local capacity to mitigate conflicts surrounding wind energy development, and will help Michigan achieve its ten-percent renewable energy target in a manner that is environmentally, economically, and socially appropriate.”

Read the first Issue Brief here: http://www.gvsu.edu/wind/

Climate Regulation Cripples Competition

Climate change is an issue that has become increasingly prominent in discussions regarding the long term environmental and energy policies of Michigan and the United States. While the Chamber supports efforts to increase America’s energy independence and accelerate the development of clean domestic energy sources in Michigan, we oppose any climate change legislation that would drive American jobs overseas, particularly in the manufacturing sector, while not taking into account the rise in emissions in other nations.

On May 14^th, Senators John Kerry (D-Mass.) and Joe Lieberman (I-Conn.) introduced a climate change bill known as the American Power Act. Although supporters claim otherwise, the American Power Act follows the framework set forth in the cap and trade bill (Waxman-Markey) that passed in the United States House of Representatives on June 26, 2009. Both bills establish a framework to lower emissions over a period of time by setting a cap on emissions and providing for a trading system for emissions permits. The American Power Act also imposes broad new regulations on industrial, transportation, and energy infrastructure.

The problem with these aggressive emissions cuts is that they are being made independent of any equivalent commitment from nations such as Brazil, India, or China. These countries and others are increasing their own emissions at a staggering pace – China has already overtaken the United States as the number one global emitter of greenhouse gases. The legislation’s unilateral tightening of our standards will drive more manufacturing overseas and emissions will subsequently “leak” to regions that have scant environmental protection and a heavy reliance on power sources that are harmful to the environment.

This leakage will further decimate manufacturing in Michigan and the United States. A study by the National Association of Manufacturing estimates that by 2030 fuel prices in Michigan will have increased by 26 percent, electricity prices will have increased by 60 percent, and natural gas prices will have increased by 80 percent if the American Power Act or other similar cap and trade regime is passed. The increase in energy prices will result in a $1,100 average reduction of disposable income per household in 2030. NAM also estimated that Michigan will lose as many as 90,000 jobs as a result of such a cap and trade bill.

The American Council for Capital Formation estimates that overall manufacturing output in Michigan could decline up to 6 percent with transportation manufacturing declining by 9 percent in 2030 as a result of a cap and trade bill. These losses would result in a $12 billion decline in Michigan’s gross state product. Overall, the unemployment rate in Michigan would surely rise as a result of the decline in manufacturing output.

The Muskegon Area Chamber of Commerce is steadfast in our commitment to support the growth of local businesses and the manufacturing sector within Michigan. The passage of cap and trade legislation would result in further decline of the Michigan manufacturing sector and increase the financial burden on families due to the rise in energy costs.

While employment in the manufacturing sector has fallen over 33 percent in the past decade, the sector is still a vital pillar of our state’s economy. We acknowledge the serious nature of climate change, but we do not support any legislative action that ignores the global nature of climate change.

Internships Under Attack

Internships have become a major focus in educational development plans and in many cases, have become a necessary requirement to graduate from college.

Both students and employers benefit from the experience internships provide. By gaining valuable real world work experience, developing professional interpersonal skills and being exposed to different career opportunities, employers often find individuals with internship experience an attractive hiring choice.

Because internships are so important to the development of a quality workforce, it is imperative that businesses and for-profit organizations know that the rules of unpaid internships are changing. 

The Department of Labor recently issued guidelines promoting an aggressive stance against unpaid internships. In the past year, unemployment among workers ages 20 to 24 has raised to 16 percent. In many cases, the best alternative to unemployment is an unpaid internship. For-profit employers who utilize talent from this pool of individuals need to be careful not to break the law. Non-profit are not under the same restrictions as for-profit employers.

The U.S. Department of Labor Wage and Hour Division has developed a six point test for evaluation whether an individual constitutes a “trainee” (intern) for the purposes of the Fair Labor Standards Act.

All six factors must be met before an employer can legally not pay an intern:

1. The training, even though it includes actual operation of the facilities of the employer, is similar to what would be given in a vocational school or academic educational instruction;

2. The training is for the benefit of the trainees (rather than the employer);

 3. The trainees do not displace regular employees, but work under their close observation;

 4. The employer that provides the training delivers no immediate advantage from the activities of the trainees, and on occasion the employers operations may actually be impeded;

 5. The trainees are not necessarily entitled to a job at the conclusion of the training period; and

 6. The employer and the trainees understand that the trainees are not entitled to wages for the time spent training.

 Employers that provide unpaid internships should pay careful attention to this issue. It is recommended to formalize your internship relationship with an agreement that outlines how each of the six factors will be addressed and met. Local colleges with internship programs will be able to help you navigate the process.

Visit the Chamber’s Advocacy Center for more information like this and other policy issues impacting business.

Muskegon Chamber applauds Sen. Kuipers’ bill to expand electric competition

Senator Wayne D. Kuipers, R-Holland, introduced legislation this week that would open Michigan’s electric system to increased competition by increasing the cap on electric choice from 10% to 25%. 

Many businesses have not been able to take advantage of switching from the state’s two utilities to a competitively priced alternative energy supplier since the legislation was passed in 2008 to limit competition to 10% of each utility’s load. 

The 10% limit was hit within the first year and the Michigan Public Service Commission reports long waiting lists of customers that would like to leave their current energy suppliers. 

Resources:

Customer Choice & Electric Reliability Act Position Paper

Senate Bill 1317

House Bill 6127

www.stopthemonopoly.com

www.customerchoicecoalition.org

Supreme Court Turns Down Carp Case

Media confirmed this morning that the Supreme Court decided not to intervene in the Asian Carp debacle. The Muskegon Area Chamber of Commerce stands committed to supporting all efforts to prevent invasive species from entering the Great Lakes.

From the Detroit Free Press 4/27/10: Efforts to keep Asian carp out of Lake Michigan will now be up to Congress, after the U.S. Supreme Court said Monday it would not hear a Michigan lawsuit to close off canals that lead from the Mississippi River to the Great Lakes….read more here:

 http://www.freep.com/article/20100427/NEWS05/4270308/1319/Court1-says-no-to-carp-lawsuit 

Lakeshore businesses chimed in on the subject of Asian Carp and the impact it would have on the local economy…

My business depends greatly on good fishing, so if our fish count goes down, my business will go down with it. It is essential to keep our fish to maintain our tourism resources and income. – Jane Schapka, Owner, Bluffton Harbor Cottages

My business, Pub One Eleven is located in downtown Whitehall along the shore of White Lake and Lake Michigan.  Many of our customers are local and visiting fishermen.  I am concerned that the devastation predicted for fishing in Michigan from Asian Carp will also be devastating to the tourism and business trade in our town.  Please take the immediate appropriate actions to prevent this catastrophe from happening.  Michigan has enough challenges with our economy, let’s not sit idle and destroy one of our State’s strongest assets…Great Lake’s fishing.   - Mark J. Zickel, Owner, Pub One Eleven

Tourism in our area depends on the health of Lake Michigan and connecting waterways. All of our community’s tourist-related businesses would suffer, but marine businesses would be impacted the most. If the Asian carp enters the Great Lakes and destroys this unique ecosystem, our small boat rental business would most likely be hard-pressed to survive. – Sally Whitbeck, Duneshore Boating

The great lakes represent the largest fresh water ecosystem in the world. Only a fool would not protect it from any threat. We must learn and apply the fact that all is connected on this world. We cannot allow this to become another situation where bureaucracy stops appropriate action before it is too late. This is a known threat, and the results can also be understood. There is no excuse for immediate action. Had this invader been dealt with as soon as identified, the threat could have been removed at a fraction of the cost of removing it from the entire river/waterway now. We have a chance to keep it out of the great lakes, now, at a fraction of the cost of what the cost will be if it enters the great lakes. Do the math, it is a simple decision. – Richard N. Thorstenson, Michigan Anglers Association, Secretary – board of directors

I have family that lives in Illinois and the stories that I have heard about the Asian Carp are not good. They have made the Illinois River unsafe for pleasure boating , water skiing , personal water crafts and fishing. In some cases people have been killed because these fish are so large. The people that use personal water crafts on that river have to wear motor cycle helmets for fear they will sustain a head injury when these fish jump out of the water. Pleasure boaters and fishermen have to use extreme caution when traveling on the river. Not only is the Illinois River full of Asian carp but so are the smaller rivers. My family lives close to Spoon River, this river would be close to the size of White River and these Asian Carp have made it almost impossible to fish by boat. Like they say “why even bother, all your going to catch are those —- Asian Carp!” what a shame that was a great river to fish back in the day. If these carp are not stopped our trout streams will be lost forever. I would hate for the Muskegon River to be lost, it is one of the States greatest Walleye / Trout hatcheries we have. – Carl Churchill, President of White Lake Area Sportfishing Association

The White Lake Area Chamber of Commerce and Visitors Bureau supports the importance of stopping Asian carp from entering the Great Lakes. Every effort and task is crucial while the preservation of our number one natural resource is vital to Michigan. The economic impact is significant to the business community as well as the tourism industry. Local and federal authorities must protect the economy and ecology that depends on the health of our Great Lakes. I would hope and trust other Michigander will feel as passionate about saving our natural resources by stopping the Asian carp from entering the Great Lakes! - Amy VanLoon, President, Whitelake Chamber of Commerce