LANSING ? Gov. Jennifer Granholm’s surprise move last week to sign legislation creating a jobs development program, while vetoing two bills keeping a business tax proposal from taking effect was in the planning stage more than a week before, sources said.
And the strategy began to take effect once administration officials realized a critical phrase was missing from the package of bills.
Republicans lawmakers intended to tie-bar all the measures in the 25-bill Single Business Tax/Jobs Development proposal together so they could not take effect unless they all took effect. The strategy, common when dealing with large packages of bills, was intended to put pressure on Granholm to sign the bills even though she said she would veto them because they did not include language repealing a 2009 sunset on the SBT.
But the jobs development bills were not tie-barred to two of the tax bills, HB 5096 and HB 5107. More critically, the tie-bar language said only that jobs bills – one of the main ones was HB 5047, PA 225 – could only take effect if the tie-barred bills were enacted. Missing from the language the phrase, “and effective.”
Under several attorney general opinions, as well as a Court of Appeals decision and a Supreme Court decision, a bill is considered enacted when it is signed and given a public act number.
Realizing what the potential of the legislative action would mean, administration officials conferred with the office of Attorney General Mike Cox on what such language meant. They did so with other bills that had same tie-bar language, sources said, so as to not tip off Republicans as to what might happen.
Then when the bills were completed and enrolled, the administration checked with at least the office of Senate Minority Floor Leader Mark Schauer (D-Battle Creek) to ensure that the Senate Secretary or House Clerk could not correct the tie-bar language to add the “and effective” phrase, a source said.
That allowed Granholm to sign the jobs bills and most of the tax bills, but veto those two and not have in affect the jobs package.
According to sources, Granholm informed Sikkema of what she was doing in a telephone conversation from her car. Sikkema was reported to be stunned by the development and questioned Granholm intently on how exactly she was proceeding.
Republicans have focused most of their criticism on the fact the tax package cannot take effect because of the two vetoed bills, but they have also charged that Granholm had twisted legislative intent in her action.
Liz Boyd, Granholm’s spokesperson, said she could confirm that the administration knew for several days before she acted how the bills were written. She would not comment on any conversations with the attorney general’s office, saying that would violate attorney/client privilege.
It seemed as of Wednesday that any hustle and bustle over responding to the governor’s business tax veto had quieted down as leaders focused on the Thanksgiving holiday. Matt Resch, spokesperson for House Speaker Craig DeRoche (R-Novi) said that when lawmakers return on Monday, the business of figuring out the Republicans’ next move should be solidified.
On the Senate side, Ari Adler, spokesperson for Senate Majority Leader Ken Sikkema (R-Wyoming) said that once the chamber comes back into session it will begin immediately working on tax cut bills they will send to Granholm.
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