Five Stories that Matter in Michigan This Week – August 5, 2022

  1. August 2 Michigan Primary Election Results

The outcome of the August 2 Republican primary for Governor saw candidate Tudor Dixon prevail. In the November general election, she will face incumbent Governor Gretchen Whitmer who ran unopposed. In the newly drawn 3rd congressional district, Republican John Gibbs defeated incumbent Peter Meijer.

Why it Matters: As November and the general election gets closer, stay tuned for more insights as Fraser Trebilcock’s election law team will be closely monitoring the action.

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  1. MEDC to Make $237 Million Available to Help Michigan Small Businesses

The Michigan Economic Development Corporation announced that Michigan has been approved for up to $237 million in State Small Business Credit Initiative (SSBCI) funding from the U.S. Department of Treasury.

Why it Matters: Small businesses impacted by the COVID-19 pandemic can apply for funds through private lenders and the MEDC would back the loans through the SSBCI program. Learn more on the topic here.

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  1. Ballot Initiative Aims to Increase Minimum Wage Targets 2024 Ballot

The Raise the Wage MI ballot initiative proposal aims to raise Michigan’s hourly minimum wage to $15 over the course of five years. The organizers behind the ballot initiative are reported to have secured more than 610,000 signatures and delivered them to Michigan officials last week.

Why it Matters: The issuance of a stay until February 19, 2023 follows the ruling by the Michigan Court of Claims stating that the state legislature’s adoption and alteration of a 2018 ballot initiative that would have raised minimum wage to $12 by 2022 was unconstitutional. This ruling has been appealed, but even if it gets overturned, Michigan may still see an increase to minimum wage if the Raise the Wage MI initiative is passed.

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  1. New Law Allows Non-Profit Corporation to be a Member of Limited Liability Company

Senate Bill 926 was recently signed into law by Governor Whitmer, which changes the definition of a person in the limited liability company act, allowing nonprofit corporations to be members of limited liability companies (“LLC”).

Why it Matters: Michigan now joins other states that allow nonprofits to create LLCs that do not involve any financial gain or profit to perform certain functions while still maintaining their nonprofit status.

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  1. Michigan Senate Judiciary Committee Approves Texting While Driving Bills

The Michigan Senate Judiciary Committee approved a package of bills expanding the scope of Michigan’s texting while driving laws, which would make requirements more stringent and penalties for violations more costly. The bills explicitly address social media use and live streaming.

Why it Matters: Distracted driving is dangerous. In 2020, according to the National Highway Traffic Safety Association, 3,142 people were killed in motor vehicle crashes involving distracted drivers. Distracted driving is also costly for drivers, as those who violate distracted driving laws tend to see their insurance rates shoot up.


Related Practice Groups and Professionals

Election Law | Garett Koger

Business & Tax | Robert D. Burgee

Business & Tax | Ed Castellani

Insurance Defense | Emily Vanderlaan

Five Stories that Matter in Michigan This Week – July 8, 2022

  1. Michigan Adopts Version of the Uniform Assignment of Rents Act

Michigan recently adopted its version of the Uniform Assignment of Rents Act (the “UARA”), which establishes a comprehensive statutory model for the creation, perfection, and enforcement of security interests in rent. It is the sixth state to adopt the UARA.

Why it Matters: An assignment of rents allows a lender to collect income from rents derived from mortgaged property after the mortgage has been defaulted on. It protects a lender against scenarios in which a borrower (typically a commercial landlord)  is continuing to collect rent from a property but is no longer making mortgage payments. The Michigan UARA codifies rules related to assignments of rents, bringing clarity to both lenders and borrowers.

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  1. Michigan’s November 2022 Ballot to Include Fair Lending Proposal Capping Payday Loan Interest Rates

Supporters of the Payday Loan Interest Rate Cap ballot initiative in Michigan secured sufficient signatures to put the initiative  on the November 2022 ballot.

Why it Matters: Once the petition is validated by Michigan’s Board of State Canvassers, the Michigan legislature will have 40 days to approve the initiative, as submitted.  If the legislature rejects the initiative or fails to act by the deadline, the proposal will be placed on the November 2022 ballot for voters to decide. If passed, payday loan rates will be capped at 36% APR or less.

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  1. Michigan Property Taxes are Set to Jump

Gas, groceries, and now summer property tax bills are spiking in Michigan. The inflation rate adjustment for this year’s property taxes in Michigan is 3.3%.

Why it Matters: Under Proposal A, there is  a maximum 5% inflation rate adjustment allowed. While this year’s increase is less than the cap, it is the highest it has been since 2007. And many expect next year’s increase to hit the 5% cap. In a Detroit Free Press article, Patrick Anderson, CEO of the Anderson Economic Group said: “Basically, we’re baked in at 5% next year.”

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  1. Michigan Leads the Nation in Energy-Sector Job Growth

According to an annual report recently issued by the U.S. Department of Energy, Michigan added 35,463 energy-sector jobs from 2020—more than any other state in 2021, boosted primarily by the automotive industry and its increased focus on hybrid and electric vehicle models.

Why it Matters: With soaring inflation and increased expectations of an economic recession, Michigan’s strength in energy-sector jobs bodes well for Michigan workers and businesses. The energy sector in Michigan represents 9.5 percent of state employment, with 393,207 jobs total.

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  1. Michigan Bill Would Cut Taxes for Small Distillers, Provide Boost to Local Farmers

The Michigan legislature recently approved legislation that would cut the state Liquor Control Commission markup on small distillery alcohol from 65% to 32.5% if more than 40% of the grains and other crops used to distill the liquor are grown in Michigan.

Why it Matters: If signed into law by Governor Whitmer, this tax cut would result in large savings for small Michigan distillers and help them compete with larger national producers. Because the tax savings are tied to the purchase of grains and other crops grown in Michigan, local farmers would also benefit.


Related Practice Groups and Professionals

Business & Tax| Ed Castellani

Real Estate | Jared Roberts

Election Law | Garett Koger

Energy, Utilities & Telecommunication | Michael Ashton

Five Stories that Matter in Michigan This Week – June 24, 2022

Five Stories that Matter in Michigan This Week – June 24, 2022; Legal, Legislative, and Regulatory Insights


  1.  Michigan House Passes Bills Requiring More Stringent Work-Search Requirements

The Michigan House recently passed a pair of bills that would require those seeking unemployment benefits to report weekly about their attempts to seek work. Under the bills, individuals would have to register with the Michigan Works! agency within two weeks of applying for benefits and would have to take and report on certain work search or training steps at least three times per week.

Why it Matters: Despite the volatility in stock markets and discussions about a possible recession, the job market in the United States remains strong, with the unemployment rate at a historically low 3.6%. If these bills become laws—a big “if” since they were passed by Republicans on a party-line vote—the work-search requirements could spur more people to rejoin the workforce.

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  1. Michigan House Passes Bill That Would Change Payment Priority Scheme for Operator or Passenger of Commercial Vehicle

The Michigan House recently passed HB 5719, which would change the order of priority of payment of personal injury protection benefits to a person injured while operating or as the passenger of a commercial vehicle or transport, such as a taxi or ride-share service.

Why it Matters: If signed into law, the bill would require, in the event of an injury described above, that coverage would come from the injured person’s own insurance rather than the vehicle owner’s insurance.

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  1. Markey Submits FOIA Requests for Signatures Process

Following the Michigan Supreme Court’s decision to deny three Republican candidates for governor to be placed on the primary ballot, after state election officials ruled that their campaigns had submitted forged signatures, one former candidate, Michael Markey, recently submitted Freedom of Information Act (FOIA) requests regarding the process the Bureau of Elections took in declaring fraudulent signatures appearing on his nominating petitions.

Why it Matters: Mr. Markey’s FOIA requests broaden to the Secretary of State, Bureau of Elections, and the Department of Attorney General. In a recent statement, Mr. Markey said he wants the exact steps that were taken to be made public. This developing scenario highlights the need for experienced election law counsel.

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  1. Detroit Faces Lawsuits Over Adult-Use Recreational Licenses

Following the Detroit City Council’s vote on the revised ordinance to allow adult-use recreational cannabis sales, multiple medical marijuana companies have filed suit against the city over the licensing program. JARS Cannabis and House of Dank, two companies that own medical marijuana dispensaries licensed in Detroit, are suing the City of Detroit over the revised ordinance claiming that the new law would signal the end for existing medical marijuana facilities already in the area. The two companies pointed to a provision in the revised ordinance that prevents existing medical facilities in the area from getting a recreational license until 2027.

Why it Matters: Detroit, and many other municipalities in Michigan,  have faced lawsuits over their cannabis licensing ordinances, particularly ordinances related to adult-use recreational licenses. Many of the lawsuits stem from scoring systems designed by municipalities for awarding recreational licenses which some applicants argue are unfair. The consequence of this litigation is that a number of municipalities which opted to allow the sale of recreational marijuana still haven’t issued licenses because issues related to their approval process are being litigated.

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  1. MEDC to Make $237 Million Available To Help Michigan Small Businesses

The Michigan Economic Development Corporation recently announced that Michigan has been approved for up to $237 Million in State Small Business Credit Initiative (SSBCI) funding from the U.S. Department of Treasury.

Why it Matters: Small businesses impacted by the COVID-19 pandemic can apply for funds through private lenders and the MEDC would back the loans through the SSBCI program. Learn more about the program from this video interview with Chris Cook, Director of Capital Access at MEDC.


Related Practice Groups and Professionals

Insurance Defense | Emily Vanderlaan

Business & Tax | Ed Castellani

Election Law | Garett Koger

Cannabis | Klint Kesto

Labor, Employment & Civil Rights | Aaron Davis

Five Stories that Matter in Michigan This Week – June 17, 2022

Five Stories that Matter in Michigan This Week – June 17, 2022; Legal, Legislative, and Regulatory Insights


  1.  Court of Appeals Considers Arguments in Significant No-Fault Case

An important case involving Michigan’s auto no-fault law is before the Michigan Court of Appeals. The dispute in the case of Andary, et al v. USAA Casualty Insurance Company, et al is focused on whether the no-fault reforms passed in 2019 apply retroactively for people injured before the law was passed. The plaintiffs in the case argue that retroactive application is unconstitutional.

Why it Matters: The circuit court in this case sided with insurers. To the extent that the appellate court reverses in favor of plaintiffs, it could create considerable uncertainty in the no-fault insurance marketplace in Michigan.

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  1. Michigan Supreme Court Blocks Republican Candidates for Governor from Ballot

The Michigan Supreme Court recently denied requests by three Republican candidates for governor to be placed on the primary ballot, after state election officials ruled that their campaigns had submitted forged signatures. Fraser Trebilcock election law attorney Garett Koger was quoted by The New York Times in an article discussing the Michigan Supreme Court’s decision.

Why it Matters: The Republican primary for governor has been chaotic, to say the least. Five of ten candidates have now been removed from the primary ballot. Candidate Ryan Kelley was arrested by federal agents this week and charged with four misdemeanors related to his alleged attendance at last year’s U.S. Capitol riot. And former Detroit police chief James Craig announced that he is mounting a write in campaign for the August 2 primary. These different scenarios all highlight the need for experienced election law counsel.

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  1. IRS Does Rare Mid-Year Adjustment to Mileage Rates

The Internal Revenue Service recently announced that it has increased the 2022 mileage rates for the last six months of the year in response to high gasoline prices, including rates for business travel, deductible medical or moving expenses, and deduction for charitable contributions. Learn more about the new mileage rates here.

Why it Matters: Midyear increases in mileage rates are rare. Accordingly, self-employed individuals who operate an automobile for business use, as well as employers who reimburse employees who use their own vehicles to conduct business, should take note of the changes.

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  1. New Education and Information Requirements for Michigan Schools

New legislation was recently enacted requiring schools to provide informational materials on post-secondary education options. The Michigan Department of Education must create informational packets, including information about Advanced Placement programs, all public universities and community colleges in the state, and student loans and tuition assistance, that will be distributed to all students in 8th to 12th grades each year. In addition, by overwhelming margins, the Michigan House and Senate recently passed legislation that would mandate personal finance education at the high school level.

Why it Matters: To remain economically competitive, it is important that Michigan continues to focus on having a well-educated workforce in order to attract and retain employers.

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  1. City of Detroit Faces Lawsuits Over Adult-Use Recreational Licenses

JARS Cannabis and House of Dank, two companies that own medical marijuana dispensaries licensed in Detroit, are suing the City of Detroit over the revised ordinance claiming that the new law would signal the end for existing medical marijuana facilities already in the area. The two companies pointed to a provision in the revised ordinance that prevents existing medical facilities in the area from getting a recreational license until 2027.

Why it Matters: State law mandates that municipalities cannot adopt “unreasonably impracticable” adult-use cannabis ordinances. As the City of Detroit faces multiple lawsuits over their revised ordinance, other municipalities may face the same issue.


Related Practice Groups and Professionals

Insurance Defense | Emily Vanderlaan

Election Law | Garett Koger

Business & Tax | Liz Siefker

Cannabis | Klint Kesto

The New York Times Feature

Fraser Trebilcock election law attorney Garett Koger was quoted by The New York Times recently on an article discussing the Michigan Supreme Court’s decision to deny requests by three candidates for governor to be restored to the August primary ballot. Fraser Trebilcock’s election law team of Thad Morgan and Garett Koger, aided by attorneys Paul McCord, Robert Burgee, Elizabeth Siefker, Matthew Meyerhuber, and summer associate Joshua Robertson worked on the matters.

You can view the full article HERE.


Fraser’s ballot and election law team has successfully counseled, planned, and litigated for campaigns including high-profile cases resulting in changes to Michigan’s Constitution and case law. Fraser’s team also has extensive experience in election administration, and access to professionals in public relations and communications.

Five Stories that Matter in Michigan This Week – June 3, 2022

Five Stories that Matter in Michigan This Week – June 3, 2022; Legal, Legislative, and Regulatory Insights


Michigan Senate Votes to Suspend Gas Taxes this Summer

  1. The Michigan Senate, in a bipartisan vote, passed a series of new bills that would temporarily pause gas taxes from June 15 to September 15. The bills pause collections on the 6% sales and use taxes on gas purchases and the 27 cent per gallon excise gas tax. According to AAA, the average price for a gallon of gas in Michigan as of June 1 was over $4.70.

Why it Matters: These bills reflect the sense of urgency—within both parties in Michigan and across the country—to address surging gas prices, as well as inflationary pressures more broadly, before the upcoming elections. According to reporting by Crain’s Detroit, Governor Whitmer, at the Mackinac Policy Conference, indicated her general support for the legislation, although she raised concerns about the impact of suspending tax collections that would otherwise be allocated for road repair.

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Court of Appeals Rejects Michigan Public Body FOIA Exemption

  1. The Michigan Court of Appeals recently held that a public body in Michigan that is a plaintiff or defendant in litigation cannot deny a Freedom of Information Act request by the legal counsel to another party to the litigation based on a FOIA exemption for requests pertaining “to a civil action in which the requesting party and the public body are parties.” Learn more about this case here.

Why it Matters: MCL 15.243(1)(v) allows a public party to assert a FOIA exemption for requests pertaining “to a civil action in which the requesting party and the public body are parties.” However, as this case makes clear, the exemption will be strictly construed. If the FOIA requester does not meet the precise legal definition of a “party” in litigation, and instead is merely a friend, agent or legal counsel to a party, then the exemption will likely be denied. Accordingly, before asserting this or any other exemption, a public body should consult with legal counsel. Learn more about this case here.

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Michigan Legislature Passes Bill to Fund Security Enhancements at Schools

  1. The Michigan House and Senate passed legislation that would provide $27 million in funding for safety and security assessments at public and private schools around the state. The legislation was passed in the wake of a mass shooting at an elementary school in Uvalde, Texas. The bill would also set aside nearly $10 million for additional support to the Oxford Community School District following the November mass shooting at the district’s high school.

Why it Matters: Expect an increase in legislation, from security enhancements at schools to “red flag” laws meant to identify potential threats, being debated in Michigan and across the country.

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Full Principal Residence Tax Exemption Available Even if Portion of Home is Rented

  1. The Michigan Court of Appeals, in the case of Keith W. DeForge v. Township of Allouez, recently ruled that homeowners in Michigan can still claim 100% principal residence tax exemption even if the homeowner rents out a portion of their home.

Why it Matters: This ruling clarifies a tax question that impacts the rapidly increasing number of homeowners in Michigan who generate rental income from their homes using services such as Airbnb.

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Michigan’s Movers and Shakers Meet on Mackinac Island

  1. Michigan’s Mackinac Policy Conference wrapped up this week, and from this year’s election for governor to healthcare to housing in Michigan, a wide range of important issues were discussed and debated.

Why it Matters: The Mackinac Policy Conference has always been the place to take the pulse of politics and business in Michigan. A group of Fraser Trebilcock professionals were in attendance this year, and next week we’ll be sharing some of the key takeaways from the conference.


Related Practice Groups and Professionals

Election Law | Klint Kesto
Litigation | Thad Morgan
Administrative & Regulatory | Michael Ashton
Taxation | Paul McCord

Term Limits and Financial Disclosure Requirements will be on the November Ballot in Michigan

In 1992, Michigan voters voted in favor of a constitutional amendment for term limits. Since then, Michigan House members have been limited to three two-year terms and Michigan Senate members to two four-year terms— a maximum of 14 years between the two chambers.

Those limits may change in light of a vote by the Michigan legislature on May 10 to put the issue of term limits on this year’s November ballot. The plan would permit lawmakers to serve 12 years in Lansing, and all of that time could be spent in the House or Senate, or it could be divided between the two chambers.

Voters will also be asked to approve or reject a requirement that state-level office holders submit annual financial disclosures to address conflicts of interest. If approved by voters, elected officials would have to disclose their assets, income and liabilities, and their involvement in any businesses, nonprofits, labor organizations or educational institutions.

No discussion or debate of the plan took place in either the House or the Senate.

According to reports, the Michigan Legislature worked with the advocacy group Voters for Transparency and Term Limits to bring these issues before Michigan voters in November. The resolution passed 76-28 in the House, and by a 26-6 vote in the Senate.

We will continue to keep you informed about these developments, as well as other issues in the lead up to the November elections.


Fraser Trebilcock attorney and former Michigan State Legislator Klint Kesto has nearly two decades of experience working in both the public and private sectors, including serving as Co-Chair of the CARES Task Force. You can reach him at kkesto@fraserlawfirm.com or 517.377.0868.

Michigan Legislature Repeals Emergency Powers of Governor Act of 1945

On July 21, 2021, the Michigan legislature approved a petition to repeal the Emergency Powers of Governor Act of 1945, which was the statutory basis used by Governor Whitmer during the early days of the COVID-19 pandemic to institute sweeping health and safety restrictions.

Because the action taken by the legislature was pursuant to an “initiated law,” the repeal does not require Governor Whitmer’s approval, nor can she veto it.

Under Article II §9 of the Michigan Constitution, citizens can put an initiative on the ballot if they gather a certain number of signatures — at least eight percent of the total number of votes cast in the last gubernatorial race. Before an initiative reaches the ballot, the Michigan legislature can, as it did in this instance, pass the proposed law with a simple majority vote in each chamber, and such a measure approved in this manner cannot be vetoed.

Governor Whitmer’s use of the Emergency Powers of Governor Act, which involved ordering lockdowns, mask mandates, and cancellation of youth sports, among other things, has been the subject of considerable controversy throughout the COVID-19 pandemic.

Petition organizers from a group called Unlock Michigan began collecting signatures for the repeal effort in the Spring of 2020, and turned in petitions with more than the required 340,000 signatures to the Michigan Secretary of state in October, 2020.

The Michigan legislature previously approved legislation (through the conventional legislative process) that would have repealed the law, but Governor Whitmer vetoed it.

Court challenges were also raised, and in October, 2020, the Michigan Supreme Court ruled that the use of the Emergency Powers of the Governor Act to institute COVID-19 health and safety measures was unconstitutional.

Subsequently, the Michigan Department of Health and Human Services issued orders pursuant to its authority under the Public Health Code which reinstated many of the same health and safety measures that were invalidated by the court’s ruling. However, Unlock Michigan recently launched a new petition drive to change the Public Health Code to limit any emergency orders issued by the Michigan Department of Health and Human Services to 28 days without legislative approval.

If you have any questions about these issues, please contact Jean Kordenbrock or your Fraser Trebilcock attorney.


Jean E. Kordenbrock is an experienced legal professional and entrepreneur across a broad range of legal areas, business, and a diverse clientele. She has the unique quality of being a skilled attorney while also leading her own teams where outcomes combine legal, political, and business expertise. Jean can be reached at (517) 377-0824 or jkordenbrock@fraserlawfirm.com.

Michigan Court of Appeals Invalidates Lame Duck Laws Restricting Voter Initiatives

Act No. 608 of the Public Acts of 2018, approved and given immediate effect in that year’s lame duck session, amended several provisions of the Michigan Election Law to create new more restrictive procedural requirements governing voter initiatives proposing initiated laws, constitutional amendments, and referendum of legislation. Most notably, the act required that no more than 15% of the petition signatures used to determine the sufficiency of support for an initiative petition may be provided by voters in any single congressional election district – a restrictive requirement finding no support in the governing constitutional language. Other new provisions required that initiative petitions include a check box to identify petition circulators as volunteers or paid circulators and required paid circulators to file an affidavit identifying themselves as such before circulating petitions for voter signatures.

This legislation has been widely criticized as an impermissible attempt to limit the People’s constitutionally-reserved right to pursue voter initiatives proposing amendment of the Constitution, adoption of initiated laws, and referendum of enacted legislation. The new restrictions pertaining to the collection of petition signatures were particularly problematic in light of abundant case law from our Supreme Court holding that the Legislature may not impose statutory restrictions that curtail or unduly burden the free exercise of the People’s constitutional right to pursue voter-initiated proposals. Thus, it came as no surprise that the constitutional validity of this new legislation has been challenged in the courts.

On January 27, 2020, the Michigan Court of Appeals issued its published decision addressing the constitutional challenges to 2018 PA 608 in the consolidated cases of League of Women Voters, et al. v Jocelyn Benson and Senate and House of Representatives v Jocelyn Benson.  (Court of Appeals Docket Nos. 350938 and 351073) In an Opinion written by Judge Deborah Servitto and joined by Judge Michael Gadola, the Court affirmed the decision of Court of Claims Judge Cynthia Stephens holding that the new 15% limitation on petition signatures collected from any single congressional district and the new requirement that petitions include a check box identifying the circulator as a paid or volunteer circulator are unconstitutional and therefore cannot be enforced. The Court of Appeals also agreed with the League of Women Voters and the Secretary of State that the new requirement for paid circulators to file an affidavit identifying themselves as paid circulators before circulating petitions is also unconstitutional and therefore cannot be enforced, reversing Judge Stephens’ decision to the contrary.  And like Judge Stephens, the Court of Appeals majority found that the Michigan Senate and House of Representatives lacked standing to pursue their claim for declaratory relief but received their briefs and considered their arguments in support of the legislation, nonetheless.

Judge Mark Boonstra wrote a separate Opinion concurring in part and dissenting in part. He disagreed with the majority’s holding that the Legislature lacked standing to present its claims and its conclusion that the new check box requirement was unconstitutional but agreed that the new 15% signature limitation and the affidavit requirement were unconstitutional and could not be enforced.

Secretary of State Benson had joined the League of Women Voters in challenging the constitutionality of Act 608, and thus, the Senate and House of Representatives are the only parties that will have cause to seek further review in the Supreme Court.  The Supreme Court, which had previously called for an expedited adjudication of this matter, has ordered that any application for leave to appeal this decision of the Court of Appeals to that Court must be filed no later than Monday, February 3rd.,  so it will soon become known whether further review of this matter will be pursued.


Graham K. Crabtree has been an appellate specialist in the Lansing office of Fraser Trebilcock since 1996. He was previously employed as Majority Counsel to the Judiciary Committee of the Michigan Senate from 1991 to 1996 and has been a member of the State Bar Appellate Practice Section Council since 2007.

Michigan Appellate Practice Journal Feature

Fraser Trebilcock appellate specialist Graham K. Crabtree recently wrote an article featured in the Summer 2019 edition of the Michigan Appellate Practice Journal, discussing the history and use of Michigan’s constitutional process for voter initiatives proposing constitutional amendments and initiated laws, and seeking approval or disapproval of legislation by referendum.  Continue reading Michigan Appellate Practice Journal Feature