April, 2023 | Fraser Blog

Five Stories That Matter in Michigan This Week – April 28, 2023

Effort to Mandate Hands-Free Phone Use While Driving in Michigan Stalls

Michigan House Bill 4250, the first bill of a three-bill package, failed to gain majority support in the House this week. The proposed legislation would ban the use of hand-held electronic device for drivers.

Why it Matters: 57 House members voted against the bill. One of the major concerns cited is that the penalties proposed to be imposed under the bill would be punitive, including the possibility of a license suspension of up to 90 days for a habitual offender.

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Michigan Cannabis Sales Near $250 Million in March

Cannabis sales nearly hit $250 million in March, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $239,857,322.13, while medical sales came in at $9,816,894.70, altogether totaling $249,674,216.70.

Why it Matters: Marijuana sales remain strong in Michigan, particularly for recreational use. However, there still are significant concerns about profitability and market over-saturation that the industry is contending with.

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May 2023 Business Education Series Program

During the May Business Education Series, Emmie Musser will discuss the challenges faced by businesses in building trust and transparency in a hybrid world, and explore strategies to overcome them including the importance of clear communication and regular updates, as well as the need to establish and maintain strong relationships.

Why it Matters: We will share practical, evidenced based tips on policies, workplace communication norms, and technology that can be used to help mitigate some of the biggest pain points of a hybrid work environment. Learn more.

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Coverage Spoken Here

Commercial litigator and Chair of Fraser Trebilcock’s Real Estate Department, Jared Roberts, along with Shareholder and litigator Ryan Kauffman, successfully defended a mechanical contracting firm in an insurance coverage dispute initiated by its insurer.

Why it Matters: In this instance, in summary, the insurer argued that policy language excluded coverage for events of pollution or efforts by the insured at responding to it. Attorneys Roberts and Kauffman argued that, while some pollution-related events were clearly excluded under the policy here, the exact conduct of the insured in this case was covered, despite the exclusion. The Circuit Court agreed with the insured mechanical contractor and summary disposition was awarded in the contractor’s favor. Learn more.

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CRA Publishes March 2023 Data, Average Price Hovers

Per data released by the Cannabis Regulatory Agency, the average retail price for adult-use sales of an ounce of cannabis is $86.87, a tiny increase from $86.00 in February. This is still a large decrease from March 2022, where the average price was $190.65.

Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices. Contact our cannabis law attorneys if you have any questions.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Litigation | Jared Roberts
Litigation | Ryan Kauffman

Five Stories That Matter in Michigan This Week – April 21, 2023

Michigan Repeals “Right-to-Work” Law

Governor Gretchen Whitmer signed into law legislation repealing the Freedom to Work law insofar as it applies to private-sector employees. The repealer will be effective as of March 30, 2024.

Why it Matters: When the new law takes effect, it will, for the first time since 2013, be legal for private-sector unions to negotiate and enforce “union security” requiring membership in, or financial support through “Beck Objector” fees, of those unions. Learn more from your Fraser Trebilcock attorney.

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Biden Administration Proposes Title IX Rule Change Prohibiting Schools from Categorically Banning Transgender Athletes from School Sports

The Biden administration proposed a significant change to Title IX regulations via a notice of proposed rulemaking, seeking to prohibit schools from categorically banning transgender athletes from participating in sports consistent with their gender identities. However, the proposal also provides flexibility for K-12 schools and universities to limit transgender student participation in cases where fairness in competition or sports-related injuries might be concerns.

Why it Matters: It’s important to note that this is a “proposed” rule, and therefore won’t take effect unless and until it becomes a final rule. However, K-12 school and higher education institutions leaders would be prudent to begin immediately preparing for the eventuality of the rule becoming final.

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May 2023 Business Education Series Program

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Proposed Legislation Introduced to Reduce Employment Age to 19 in Marijuana Industry

In March, HB 4322 was introduced to allow individuals who are 19 years of age or older to be employed by or volunteer for marijuana establishments.

Why it Matters: Currently, the age for employment in the marijuana industry is set to 21. This legislation proposes to reduce the age to 19, and allow them to manufacture, purchase, distribute and sell marijuana accessories if the individual is acting on behalf of a marijuana establishment.

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Income Tax Reduced for Tax Year 2023

For tax year 2023, the state income tax will be reduced to 4.05%, but will go back up to 4.25% the following year due to a 2015 statute that requires a reduction in the income tax when revenues to the General Fund exceed inflation plus economic growth.

Why it Matters: Individuals should see a slight increase to their take-home pay, but it will not last for long as the income tax rate will go back to 4.25% starting in tax year 2024.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | David Houston
Cannabis Law | Sean Gallagher
Business & Tax | Paul McCord

Michigan Repeals “Right-to-Work” Law

Michigan’s “Freedom to Work” law, effective since 2013, currently prohibits public and private sector employees from being required, as a “condition of employment,” to belong to a labor union or to pay a “service fee” in lieu of membership. The current law also invalidates any collective bargaining provision to the contrary, and prohibits enforcement of such unlawful provisions.

Governor Gretchen Whitmer signed into law legislation repealing the Freedom to Work law insofar as it applies to private-sector employees. The repealer will be effective as of March 30, 2024. Governor Whitmer signed a separate bill that would similarly repeal these prohibition as to public sector workers in the event the U.S. Supreme Court reverses a 2018 decision that essentially adopted similar “right-to-work” principles with respect to public sector employees and unions. That decision ruled that it is a violation of public workers’ first amendment speech rights to be required to join or financially support public sector labor unions through mandatory “service fees.”

When the new law takes effect, it will, for the first time since 2013, be legal for private-sector unions to negotiate and enforce “union security” requiring membership in, or financial support through “Beck Objector” fees, of those unions. See NLRB FAQ’s

Per data collected by researchers available at unionstats.com, in 2022, close to 39,000 private sector workers in Michigan were covered by a collective bargaining agreement but were not union members paying dues or service fees. Now, when the new law goes into effect, those individuals will be required to pay dues or fees. Employers can be forced to fire bargaining unit workers who refuse to pay dues or fees under the enforcement of a lawful union security clause.

Private Sector employers in Michigan have approximately one year to prepare for the effective date of the new law. Employers with unionized workforces should anticipate attempts by unions to enforce “suspended’ union security clauses or renegotiate such provisions into future collective bargaining agreements, and plan accordingly.

If you have questions about the new law or require assistance, please contact David J. Houston or your Fraser Trebilcock attorney.

This alert serves as a general summary and does not constitute legal guidance. Please contact us with any specific questions.

Fraser Trebilcock Shareholder Dave Houston has over 40 years of experience representing employers in planning, counseling, and litigating virtually all employment claims and disputes including labor relations (NLRB and MERC), wage and overtime, and employment discrimination, and negotiation of union contracts. He has authored numerous publications regarding employment issues. You can reach him at 517.377.0855 or dhouston@fraserlawfirm.com.

Five Stories That Matter in Michigan This Week – April 14, 2023

Michigan’s “Clean Slate” Law Takes Effect

Michigan’s Clean Slate law took effect on April 11, 2023, up to 1 million Michigan residents will see criminal convictions automatically expunged. Under the law, up to four misdemeanor convictions that were punishable by 93 days or more will be automatically expunged after seven years, while all misdemeanors that were punishable by 92 days or less will be automatically expunged after seven years. Up to two felony convictions can be automatically expunged after 10 years, subject to certain conditions.

Why it Matters: Having a criminal conviction on one’s record can be a barrier to employment, housing and other opportunities.

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Income Tax Reduced for Tax Year 2023

Why it Matters: Individuals should see a slight increase to their take-home pay, but it will not last for long as the income tax rate will go back to 4.25% starting in tax year 2024.

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Governor Whitmer Signs New Laws for Universal Background Checks and Safe Storage

This week, Governor Whitmer signed into law new legislation that will require individuals who purchase a firearm to undergo a background check. Additionally, anyone who owns a firearm, is required to lock it up.

Why it Matters: These laws will take effect 90 days following the end of the current legislative session.

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Fraser Trebilcock Attorney Secures Principal Residency Exemption for Client

Fraser Trebilcock Shareholder Paul McCord won a principal residence exemption for an elderly Michigan snowbird couple. Without careful planning, a hard-earned retirement with the means to travel can cost many Michiganders who fly South to escape Michigan’s harsh winters dearly.

Why it Matters: As is generally the case, property owners that own more than one residence must take care to appropriately establish which home is their “principal residence.” The problem is often more complicated in cases of retired homeowners as they typically are not tethered to a fixed location for work or socially and travel often. Learn more.

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Michigan Legislature Passes Amendment to Elliott-Larsen Civil Rights Act to Protect LGBTQ Rights

The Michigan Legislature recently passed an amendment to the state’s Elliot-Larsen Civil Rights Act (ELCRA) that explicitly includes protections against discrimination on the basis of sexual orientation, gender identity, or expression.

Why it Matters: Michigan entities covered by the ELCRA should ensure that their policies and practices protect against discrimination based on these amended protected categories.

Related Practice Groups and Professionals

Business & Tax | Paul McCord
Labor, Employment & Civil Rights | David Houston
Business & Tax | Ed Castellani

Five Stories That Matter in Michigan This Week – April 7, 2023

Michigan Legislature Passes Amendment to Elliott-Larsen Civil Rights Act to Protect LGBTQ Rights

Why it Matters: Michigan entities covered by the ELCRA should ensure that their policies and practices protect against discrimination based on these amended protected categories.

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2023 April Business Education Series

During the April Business Education Series, Emmie Musser, senior portfolio marketing manager, TechSmith, will share what we learned and best practices to positively impact employee satisfaction, job attitude, productivity, and innovation.

Why it Matters: Not all meetings can or should be replaced, but identifying which ones can and how to replace them will offer your organization greater flexibility and productivity and more dedicated “think” time. Hosted at the Lansing Regional Chamber on Tuesday, April 11. Full details and to register.

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Prominent Cannabis Brand Regains Control of Multiple Cannabis Stores Following Court Order

A recent court order has placed control of several cannabis stores back under Skymint’s leadership. In 2021, Skymint acquired competitor 3Fifteen Cannabis and its cannabis stores located across the state. Following reports of Skymint Brands being placed under receivership, 3Fifteen Cannabis challenged the company’s leadership and took back control of several of the stores that were acquired. However, a judge ruled that 3Fifteen Cannabis violated the receivership’s order and must relinquish control back to Skymint.

Why it Matters: The fact that Skymint’s assets were put into receivership is noteworthy, as state court receivership has become an alternative to bankruptcy for distressed cannabis companies. Because cannabis is still illegal at the federal level, companies can’t access federal bankruptcy to reorganize or liquidate.

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How Copyrights Protect Your Business

Copyright is the exclusive legal protection that covers an original work of authorship. Copyrights vest upon creation of the work, which means placing the work onto a tangible medium (e.g., applying paint to a canvas or words to a screenplay).

Why it Matters: As noted above, copyrights vest upon creation of the work, even if it isn’t published. Similar to trademark law, it can be difficult to enforce your copyright if the work is not registered with the U.S. Copyright Office. Learn more.

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Name, Image, Likeness Law for Student-Athletes in Michigan

The new law, which took effect December 31, 2022, set standards for how student-athletes can earn compensation for the use of their name, image, and likeness (“NIL”) in Michigan. The NCAA also has its own NIL policy, which took effect on July 1, 2021.

Why it Matters: It’s important that Michigan student-athletes, covered higher education institutions, and businesses ensure that NIL deals comply not only with NCAA rules and regulations, but also with the new standards that will apply in the State of Michigan. Learn more on the subject from your Fraser Trebilcock attorney.

Related Practice Groups and Professionals

Business & Tax | Ed Castellani
Cannabis Law | Sean Gallagher
Intellectual Property | Jared Roberts
Higher Education | Ryan Kauffman