The House was called to order by the Speaker.

 

The roll was called by the Clerk of the House of Representatives, who announced that a quorum was present.

 

 

Agee--present

Alley--present

Anthony--present

Baade--present

Baird--present

Bankes--present

Basham--present

Birkholz--present

Bobier--present

Bodem--present

Bogardus--present

Brackenridge--present

Brater--present

Brewer--present

Brown--present

Byl--present

Callahan--present

Cassis--present

Cherry--present

Ciaramitaro--present

Crissman--present

Cropsey--present

Curtis--present

Dalman--present

DeHart--present

DeVuyst--present

Dobb--present

Dobronski--present

Emerson--present

Fitzgerald--present

Frank--present

Freeman--present

Gagliardi--present

Galloway--present

Geiger--present

Gernaat--present

Gilmer--present

Gire--excused

Godchaux--present

Goschka--present

Green--present

Griffin--present

Gubow--present

Gustafson--present

Hale--present

Hammerstrom--present

Hanley--present

Harder--present

Hertel--present

Hood--present

Horton--present

Jansen--present

Jaye--present

Jelinek--present

Jellema--present

Johnson--present

Kaza--present

Kelly--present

Kilpatrick--present

Kukuk--present

LaForge--present

Law--present

Leland--present

LeTarte--present

Llewellyn--present

London--present

Lowe--present

Mans--present

Martinez--present

Mathieu--present

McBryde--present

McManus--present

McNutt--present

Middaugh--present

Middleton--present

Murphy--present

Nye--present

Olshove--present

Owen--present

Oxender--present

Palamara--present

Parks--present

Perricone--present

Price--present

Profit--present

Prusi--present

Quarles--present

Raczkowski--present

Rhead--present

Richner--present

Rison--present

Rocca--present

Schauer--present

Schermesser--present

Schroer--present

Scott--present

Scranton--present

Sikkema--present

Stallworth--present

Tesanovich--present

Thomas--present

Varga--present

Vaughn--present

Voorhees--present

Walberg--excused

Wallace--present

Wetters--present

Whyman--present

Willard--present

Wojno--present

 

 

e/d/s = entered during session

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rep. Gagliardi questioned the presence of a quorum and moved that the roll be called and printed in the Journal.

The motion prevailed.

The roll was called and the Clerk announced that a quorum was present.

The following is the roll call:

 

 

Roll Call No. 762 Yeas--102

 

 

DeVuyst Johnson

 

 

In The Chair: Hanley

 

 

 

 

The Speaker resumed the Chair.

 

 

By unanimous consent the House returned to the order of

 

 

Senate Bill No. 302, entitled

A bill to make appropriations for the state transportation department and the department of state police for the fiscal year ending September 30, 1997; to adjust certain appropriations for the fiscal year ending September 30, 1997; and to provide for the expenditure of the appropriations.

Was read a second time, and the question being on the adoption of the proposed substitute (H-1) previously recommended by the Committee on Appropriations,

The substitute (H-1) was adopted, a majority of the members serving voting therefor.

Rep. Gagliardi moved that the bill be placed on the order of Third Reading of Bills.

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

Rep. Gagliardi moved that the bill be placed on its immediate passage.

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

Rep. Freeman moved that Rep. Emerson be excused temporarily from today's session.

The motion prevailed.

 

Rep. McNutt moved that Rep. Middaugh be excused temporarily from today's session.

The motion prevailed.

 

By unanimous consent the House returned to the order of

 

 

Senate Bill No. 302, entitled

A bill to make appropriations for the state transportation department and the department of state police for the fiscal year ending September 30, 1997; to adjust certain appropriations for the fiscal year ending September 30, 1997; and to provide for the expenditure of the appropriations.

Was read a third time and passed, a majority of the members serving voting therefor, by yeas and nays, as follows:

 

 

Roll Call No. 763 Yeas--104

 

 

 

 

Nays--0

 

 

In The Chair: Hertel

 

 

Rep. Gagliardi moved to reconsider the vote by which the House passed the bill.

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

The question being on the passage of the bill,

The bill was then passed, a majority of the members serving voting therefor, by yeas and nays, as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By unanimous consent the House returned to the order of

 

 

Senate Bill No. 208, entitled

A bill to amend 1967 PA 281, entitled "Income tax act of 1967," by amending section 30 (MCL 206.30), as amended by 1996 PA 484.

The bill was read a third time.

The question being on the passage of the bill,

Rep. Brown moved to amend the bill as follows:

1. Amend page 10, line 24, after the first "the" by striking out "1997" and inserting "1996".

The motion was seconded and the amendment was not adopted, a majority of the members serving not voting therefor.

The question being on the passage of the bill,

The bill was then passed, a majority of the members serving voting therefor, by yeas and nays, as follows:

 

 

Roll Call No. 765 Yeas--101

 

 

Dobb

 

 

Nays--2

 

 

Agee Emerson

 

 

In The Chair: Hertel

 

 

Rep. Gagliardi moved to reconsider the vote by which the House passed the bill.

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

The question being on the passage of the bill,

The bill was then passed, a majority of the members serving voting therefor, by yeas and nays, as follows:

Roll Call No. 766 Yeas--103

 

 

 

 

Nays--3

 

 

Agee Emerson Schroer

 

 

In The Chair: Hertel

 

 

Rep. Gagliardi moved to suspend Rule 67.

The motion prevailed, 3/5 of the members present voting therefor.

Rep. Callahan moved to reconsider the vote by which the House passed the bill.

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

The question being on the passage of the bill,

The bill was then passed, a majority of the members serving voting therefor, by yeas and nays, as follows:

 

 

Roll Call No. 767 Yeas--104

 

 

 

 

Nays--3

 

 

Agee Emerson Schroer

 

 

In The Chair: Hertel

 

 

Pursuant to Joint Rule 20, the full title of the bill shall read as follows:

"An act to meet deficiencies in state funds by providing for the imposition, levy, computation, collection, assessment, and enforcement by lien and otherwise of taxes on or measured by net income; to prescribe the manner and time of making reports and paying the taxes, and the functions of public officers and others as to the taxes; to permit the inspection of the records of taxpayers; to provide for interest and penalties on unpaid taxes; to provide exemptions, credits and refunds of the taxes; to prescribe penalties for the violation of this act; to provide an appropriation; and to repeal certain acts and parts of acts,"

The House agreed to the full title of the bill.

Rep. Gagliardi moved that the bill be given immediate effect.

The motion prevailed, 2/3 of the members serving voting therefor.

 

 

 

 

Rep. Bobier moved that the Committee on Transportation be discharged from further consideration of House Bill No. 4813 and motion postponed for the day on July 8, see House Journal 65, p. 1775.

(For first notice see House Journal No. 64, p. 1698.)

The question being on the motion offered previously by Rep. Bobier,

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

The bill was referred to the order of Second Reading of Bills.

 

By unanimous consent the House returned to the order of

 

 

House Bill No. 4813, entitled

A bill to amend 1927 PA 150, entitled "An act to prescribe a privilege tax for the use of the public highways by owners and drivers of motor vehicles by imposing a specific tax upon the sale or use, within the state of Michigan, of motor fuel; to prescribe the manner and the time of paying this tax and the duties of officials and others respecting the payment and collection of this tax; to provide for the licensing of wholesale distributors, certain retail dealers, exporters, and suppliers as defined in this act; to fix a time when this tax and interest and penalties thereon become a lien upon the property of persons, firms, partnerships, associations, or corporations, subject to the payment of this tax; to provide for the enforcement of this lien; to permit the inspection and testing of petroleum products; to provide for certain exemptions and refunds and for the disposition of the proceeds of this tax; and to prescribe penalties for the violation of this act," by amending section 2 (MCL 207.102), as amended by 1992 PA 225.

The bill was read a second time.

Rep. Alley moved to substitute (H-1) the bill.

The motion prevailed and the substitute (H-1) was adopted, a majority of the members serving voting therefor.

Rep. Alley moved that the bill be placed on the order of Third Reading of Bills.

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

Rep. Gagliardi moved that the bill be placed on its immediate passage.

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

 

By unanimous consent the House returned to the order of

 

 

House Bill No. 4813, entitled

A bill to amend 1927 PA 150, entitled "An act to prescribe a privilege tax for the use of the public highways by owners and drivers of motor vehicles by imposing a specific tax upon the sale or use, within the state of Michigan, of motor fuel; to prescribe the manner and the time of paying this tax and the duties of officials and others respecting the payment and collection of this tax; to provide for the licensing of wholesale distributors, certain retail dealers, exporters, and suppliers as defined in this act; to fix a time when this tax and interest and penalties thereon become a lien upon the property of persons, firms, partnerships, associations, or corporations, subject to the payment of this tax; to provide for the enforcement of this lien; to permit the inspection and testing of petroleum products; to provide for certain exemptions and refunds and for the disposition of the proceeds of this tax; and to prescribe penalties for the violation of this act," by amending section 2 (MCL 207.102), as amended by 1992 PA 225.

Was read a third time and passed, a majority of the members serving voting therefor, by yeas and nays, as follows:

 

 

Roll Call No. 768 Yeas--56

 

 

 

 

Nays--48

 

 

 

 

In The Chair: Hertel

 

 

The question being on agreeing to the title of the bill,

Rep. Gagliardi moved to amend the title to read as follows:

A bill to amend 1927 PA 150, entitled "An act to prescribe a privilege tax for the use of the public highways by owners and drivers of motor vehicles by imposing a specific tax upon the sale or use, within the state of Michigan, of motor fuel; to prescribe the manner and the time of paying this tax and the duties of officials and others respecting the payment and collection of this tax; to provide for the licensing of wholesale distributors, certain retail dealers, exporters, and suppliers as defined in this act; to fix a time when this tax and interest and penalties thereon become a lien upon the property of persons, firms, partnerships, associations, or corporations, subject to the payment of this tax; to provide for the enforcement of this lien; to permit the inspection and testing of petroleum products; to provide for certain exemptions and refunds and for the disposition of the proceeds of this tax; and to prescribe penalties for the violation of this act," (MCL 207.101 to 207.202) by amending the title and by adding chapter 7; and to repeal acts and parts of acts.

The motion prevailed.

The House agreed to the title as amended.

Rep. Gagliardi moved that the bill be given immediate effect.

The motion prevailed, 2/3 of the members serving voting therefor.

 

 

 

 

Rep. Wetters, under Rule 32(b), made the following statement:

"Mr. Speaker and members of the House:

I did not vote on Roll Call No. 768 because of a possible conflict of interest.

House Bill 4813 would raise the diesel fuel tax by four cents. This would be an additional raise on top of the increase we passed last December. This increase will not create parity it will make diesel fuel gas higher than the gas tax. And what is worse, most of that increase will fall on the trucking businesses that operate here in Michigan. This increase combined with the truck license fee increase will create an economic incentive for Michigan based trucking businesses to move their operations south of the Michigan border where they can enjoy the benefits of interstate status and far lower operational costs. I think this is a mistake. But because I own trucks it would be a potential conflict of interest and therefore inappropriate for me to vote on this bill."

 

Rep. Wetters moved that his name be removed as sponsor of the bill.

The motion prevailed.

 

 

 

 

Rep. Goschka, having reserved the right to explain his protest against the passage of the bill, made the following statement:

"Mr. Speaker and members of the House:

I voted "No" on House Bill 4813 because I don't believe the legislature has done all that it can to reprioritize spending in the state budget. Just as in our own families, the state should spend its revenue on priority items--actual needs. Needless to say, funding for roads is a major need. However, in light of total state spending, the legislature doesn't treat it as such.

It seems that to some lawmakers, the answer to virtually any funding problem is a tax increase. I believe the more prudent and responsible action on behalf of the people of the state of Michigan is to tighten the state's belt. Why not? That's what Michigan's families do everyday!

It's easy to raise a tax--just vote "Yes". However, the courageous and proper action on the part of this House is to cut spending--now!

Where do we start cutting? We could end the gas tax subsidies of other state operations such as $2.5 million to the Attorney General; $1.6 million to the Department of Management & Budget; $800,000 to the DNR & DEQ; $6.3 million to the Treasury; $500,000 to the Legislative Auditor General; $81.6 million to the Secretary of State; $5.7 million to the State Police; and $4.2 million to Civil Service. This amounts to $103.2 million in gas taxes that do not make it to our roads! Enough of the deception! Let's not do this to our own residents--our own constituents! They elected us to properly govern this state and to spend the state's money prudently. Those who have entrusted us with the state's pocketbook have been shortchanged, and it is they who will pay the bill."

 

Rep. Stallworth, having reserved the right to explain his protest against the passage of the bill, made the following statement:

"Mr. Speaker and members of the House:

As Vice Chair of the House Appropriations Sub-Committee on Transportation and a member of the House-Senate Conference Committee responsible for negotiating a coherent plan to repair and maintain Michigan roads, I cannot in good conscience vote for a bill I know has only been introduced in order to save the Senate from voting on a tax which increases diesel fuel. Every member in this chamber knows full well this bill will not be passed by the Senate. The reality is if the intent was too really impose a diesel fuel tax along with the gas tax, both the House and Senate would support the tax being in the bill in which it was originally proposed; H.B. 4872.

If we are going to ask auto motorists to to join us in a plan to repair and maintain Michigan roads, we should not be afraid to demand that the trucking industry pay their fare share as well.

My constituents want, need and deserve road repair. They know that I campaigned on the importance of deregulation of electrical utilities, the need for true auto insurance reform, and the need for a gas and diesel fuel tax to help repair Michigan roads. Perhaps the members of this chamber do not have the ability to be honest with their constituents, but I do. In fact, it is my obligation to do so.

Commercial trucks in general, and overweight trucks in particular have played a major role in creating the state of disrepair we are currently experiencing with Michigan roads. They should be required to pay their fair share. As members of the Michigan House, we should not be so eager to move into summer recess that we allow the Senate to take the cowardly way out by not voting for a diesel tax as part of the comprehensive transportation package I and others have worked so hard on this session, and that there was Republican and Democratic agreement on.

Therefore Mr. Speaker and members, because the diesel tax was removed from House Bill 4872 with the expressed intent of allowing the Senate to avoid voting on a diesel tax thus exempting the largest trucking organizations operating in Michigan from a fuel tax; and furthermore because this bill is offered in bad faith and breaks the bi-partisan agreement reached by those of us who believe in equal and fair taxation; I cannot support this bill."

 

By unanimous consent the House returned to the order of

 

 

House Bill No. 4180, entitled

A bill to amend 1967 PA 281, entitled "Income tax act of 1967," by amending section 30 (MCL 206.30), as amended by 1996 PA 484.

The Senate has substituted (S-4) the bill.

The Senate has passed the bill as substituted (S-4), ordered that it be given immediate effect and amended the title to read as follows:

A bill to amend 1967 PA 281, entitled "An act to meet deficiencies in state funds by providing for the imposition, levy, computation, collection, assessment, and enforcement by lien and otherwise of taxes on or measured by net income; to prescribe the manner and time of making reports and paying the taxes, and the functions of public officers and others as to the taxes; to permit the inspection of the records of taxpayers; to provide for interest and penalties on unpaid taxes; to provide exemptions, credits and refunds of the taxes; to prescribe penalties for the violation of this act; to provide an appropriation; and to repeal certain acts and parts of acts," (MCL 206.1 to 206.532) by adding section 30d.

The Speaker announced that pursuant to Rule 45, the bill was laid over one day.

Rep. Gagliardi moved that Rule 45 be suspended.

The motion prevailed, 3/5 of the members present voting therefor.

The question being on concurring in the adoption of the substitute (S-4) made to the bill by the Senate,

Rep. Harder moved to amend the Senate substitute (S-4) as follows:

1. Amend page 2, following line 9, by inserting:

"(b) Senate Bill No. 303." and relettering the remaining subdivision.

The motion prevailed and the amendment was adopted, a majority of the members serving voting therefor.

The question being on concurring in the Senate substitute (S-4), as amended,

The Senate substitute (S-4), as amended, was concurred in, a majority of the members serving voting therefor, by yeas and nays, as follows:

 

 

Roll Call No. 769 Yeas--94

 

 

Dobb Kukuk

 

 

Nays--9

 

 

Galloway

 

 

In The Chair: Hertel

 

 

The House agreed to the title as amended.

Reps. Basham, Cassis, Crissman, Cropsey, Dalman, Gernaat, Horton, Jansen, Mans, Nye, Richner, Sikkema, Voorhees and Wallace were named co-sponsors of the bill.

 

 

 

 

Rep. Gilmer, having reserved the right to explain his nay vote, made the following statement:

"Mr. Speaker and members of the House:

I voted no on concurring with the Senate substitute to HB 4180 because it will cause a reduction of $30 Million in GF/GP revenue. We have a $40 to $60 million shortfall in revenue in the 1997-1998 School Aid Budget due to the Durant Court case. This bill will remove funding that is needed to adequately fund special education."

House Bill No. 4191, entitled

A bill to amend 1967 PA 281, entitled "Income tax act of 1967," by amending section 274 (MCL 206.274), as amended by 1996 PA 484.

The Senate has substituted (S-4) the bill.

The Senate has passed the bill as substituted (S-4), ordered that it be given immediate effect and pursuant to Joint Rule 20, inserted the full title of the bill.

The Speaker announced that pursuant to Rule 45, the bill was laid over one day.

Rep. Gagliardi moved that Rule 45 be suspended.

The motion prevailed, 3/5 of the members present voting therefor.

The question being on concurring in the adoption of the substitute (S-4) made to the bill by the Senate,

Rep. Callahan moved to amend the Senate substitute (S-4) as follows:

1. Amend page 2, line 5, after "YEAR," by striking out "7.5%" and inserting "8.0%".

The motion prevailed and the amendment was adopted, a majority of the members serving voting therefor.

Reps. Dobb, Brackenridge and LeTarte moved to amend the Senate substitute (S-4) as follows:

1. Amend page 3, line 6, after the first "year" by striking out the balance of the line through "year" on line 7.

The motion did not prevail and the amendment was not adopted, a majority of the members serving not voting therefor.

Rep. Harder moved to amend the Senate substitute (S-4) as follows:

1. Amend page 4, line 5, by striking out all of enacting section 1 and inserting:

"Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 89th Legislature are enacted into law:

(a) House Bill No. 4872.

(b) Senate Bill No. 303.".

The motion prevailed and the amendment was adopted, a majority of the members serving voting therefor.

Rep. Dobb moved to reconsider the vote by which the House did not adopt the amendment offered previously by Reps. Dobb, Brackenridge and LeTarte.

The question being on the motion by Rep. Dobb,

Rep. Dobb demanded the yeas and nays.

The demand was supported.

The question being on the motion by Rep. Dobb,

The motion prevailed, a majority of the members present voting therefor, by yeas and nays, as follows:

 

 

Roll Call No. 770 Yeas--64

 

 

 

 

Nays--35

 

 

 

 

In The Chair: Hertel

 

 

The question being on the adoption of the amendment offered previously by Reps. Dobb, Brackenridge and LeTarte,

The amendment was adopted, a majority of the members serving voting therefor.

The question being on concurring in the Senate substitute (S-4), as amended,

The Senate substitute (S-4), as amended, was concurred in, a majority of the members serving voting therefor, by yeas and nays, as follows:

 

 

Roll Call No. 771 Yeas--99

 

 

 

 

Nays--6

 

 

Agee Emerson Godchaux Lowe

Bobier Gilmer

 

 

In The Chair: Hertel

 

 

The House agreed to the full title of the bill.