Higher Education | Fraser Blog

Five Stories That Matter in Michigan This Week – January 19, 2024

New Michigan Law Mandates Compulsory Arbitration for Higher Education Police Officers

Michigan’s law regarding compulsory arbitration of public labor disputed has been amended to include higher education institution police officers. The change takes effect on January 22, 2024.

Why it Matters: Higher education institutions should assess the impact the new law may have on their workforce.

———

Fraser Trebilcock Welcomes Phyllis Dahl to the Firm

We are pleased to announce the hiring of Phyllis Dahl as the firm’s new Office Manager.

Why it Matters: Ms. Dahl has over three decades of experience in the legal industry, having worked at two private law firms before joining Fraser Trebilcock. She has a bachelor’s degree in public administration from Central Michigan University. Read more.

———

Client Alert: PCORI Fees Due by July 31, 2024!

In Notice 2023-70, the Internal Revenue Service set forth the PCORI amount imposed on insured and self-funded health plans for policy and plan years that end on or after October 1, 2023, and before October 1, 2024.

Why it Matters: Notice 2023-70 sets the adjusted applicable dollar amount used to calculate the fee at $3.22. Specifically, this fee is imposed per average number of covered lives for plan years that end on or after October 1, 2023, and before October 1, 2024. For self-funded plans, the average number of covered lives is calculated by one of three methods: (1) the actual count method; (2) the snapshot method; or (3) the Form 5500 method. Learn more from your Fraser Trebilcock attorney.

———

Michigan Cannabis Pulls in Nearly $280 Million in December

Cannabis sales are just below $280 million in December, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $276,732,645.94, while medical sales came in at $3,177,042.62, totaling $279,909,688.56.

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

———

CRA Publishes December 2023 Data: Average Price Decreases

Per data released by the Cannabis Regulatory Agency (CRA), the average retail price for adult-use sales of an ounce of cannabis in December was $95.08, a small decrease from $97.51 in November. For the second time, this is an increase to the average price when compared to the year prior, when in December 2022, the average price was $90.68.

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

Higher Education | Ryan Kauffman
Phyllis Dahl
Employee Benefits | Bob Burgee
Employee Benefits
Cannabis Law | Sean Gallagher

Five Stories That Matter in Michigan This Week – October 20, 2023

Cannabis Regulatory Agency Seeks to Update Michigan’s Marihuana Rules

The Michigan Cannabis Regulatory Agency (“CRA”) recently filed a Request for Rulemaking to begin the process of updating Michigan’s Marihuana Rules. The CRA is asking for feedback—comments or suggestions can be sent to CRA-AdminRules@michigan.gov.

Why it Matters: The proposed updates, a summary of which can be found here, would impact licensing, social equity, financial compliance, and a host of other issues.

———

Provisional Patent Application Overview

While deciding whether to file a patent application, it is important to consider both your short- and long-term goals in view of your finances and the current state of your idea. Depending on these factors you may be deciding between filing a provisional or non-provisional application.

Why it Matters: A provisional patent application is a type of patent application that serves as a placeholder for a non-provisional patent application, providing the applicant with a priority date for their invention and a one-year window to follow up and file a non-provisional application. Learn more from your Fraser Trebilcock attorney.

———

CRA Publishes September 2023 Data: Average Price Increases

Per data released by the Cannabis Regulatory Agency, the average retail price for adult-use sales of an ounce of cannabis in September was $100.14, an increase from $94.16 in August. This is still a decrease from September 2022, where the average price was $109.88.

———

Fraser Trebilcock Shareholder Ryan Kauffman Participates in Arguments in Michigan Supreme Court

On Thursday, October 5, Fraser Trebilcock Shareholder Ryan Kauffman participated in arguments in the Michigan Supreme Court on cases brought against higher education universities related to the COVID-19 issue.

Why it Matters: You can view the entirety of the argument by going to the Michigan Supreme Court’s YouTube page, or by clicking here (Mr. Kauffman’s argument starts at 43:40). Read more.

———

Business Education Series – Maximizing Productivity: Strategies for More Effective Workdays

Productivity is a habit and it’s something you can become better at every day by choosing the methods and tricks that work for you.

Why it Matters: In the October Business Education Series program, Emmie Musser, Future of Work Strategist with TechSmith, is going to discuss some tried-and-true strategies for more productive and effective workdays. Learn more.

Related Practice Groups and Professionals

Intellectual Property | Andrew Martin
Cannabis Law | Sean Gallagher
Higher Education | Ryan Kauffman

Fraser Trebilcock Shareholder Ryan Kauffman Participates in Arguments in Michigan Supreme Court

You can view the entirety of the argument by going to the Michigan Supreme Court’s YouTube page, or by clicking here (Mr. Kauffman’s argument starts at 43:40).

Mr. Kauffman was also quoted in The Detroit News, which you can view here.

Ryan K. Kauffman is a Shareholder at Fraser Trebilcock with more than a decade of experience handling complex litigation matters. You can contact him at rkauffman@fraserlawfirm.com or 517.377.0881.

Five Stories That Matter in Michigan This Week – September 22, 2023

Ten Michigan Colleges Will Accept Any State High School Graduate with GPA of 3.0 or Higher

A coalition of 10 public colleges announced this week they will admit any in-state student with at least a 3.0 GPA for admission next fall. The colleges, including Central Michigan University and Eastern Michigan University, also formed the Michigan Assured Admission Pact.

Why it Matters: The Michigan economy requires a well-educated workforce, including high school graduates who are motivated to attend college. According to the Western Interstate Commission for Higher Education, the number of high school graduates in Michigan has been declining since 2008.

———

Michigan Supreme Court Modifies Open and Obvious Legal Doctrine

Recently, the Michigan Supreme Court significantly modified a decades old legal doctrine that will have wide reaching impacts on property owners and lessees. In its decision in a pair of consolidated cases (Kandil-Elsayed v F & E Oil, Inc and Pinsky v Kroger Co of Mich), the state’s high court effectively abrogated a legal doctrine known as “open and obvious.”

Why it Matters: Now, in light of the Kandil-Elsayed and Pinsky decisions, the nature of an open and obvious condition is evaluated as an element of comparative fault that may reduce a plaintiff’s recovery but will not act as complete bar to recover. Moreover, the issue of comparative fault is a question of fact (that is a determination to be made by the jury). Learn more.

———

Attorney Michael H. Perry Honored as “Lawyer of the Year” in Environmental Law in Lansing

Fraser Trebilcock attorney Michael H. Perry has been named the Best Lawyers in America^© 2024 Environmental Law “Lawyer of the Year” in Lansing. This is a high distinction, as only one attorney in each practice area in each community is identified as “Lawyer of the Year.”

Why it Matters: “I am honored to be recognized by Best Lawyers^©as a 2024 ‘Lawyer of the Year’ for Environmental Law in Lansing,” said Mike Perry. Because lawyers are not required or allowed to pay a fee to be listed, inclusion in Best Lawyers^©is considered a singular honor. Only five percent of attorneys in Michigan are awarded the honor. Read more about Mike.

———

CRA Publishes August 2023 Data; Average Price Decreases

Per data released by the Cannabis Regulatory Agency, the average retail price for adult-use sales of an ounce of cannabis is $94.16, a decrease from $98.65 in July. This is still a large decrease from August 2022, where the average price was $116.84.

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.

———

Business Education Series – Practical A.I. Business Solutions

Explore the transformative potential of Artificial Intelligence in the business landscape during our Lansing Regional Chamber of Commerce Business Education Series.

Why it Matters: From understanding the capabilities of AI models like ChatGPT to creating customized workflows using API integrations and automation tools, discover how AI can drive innovation and efficiency across industries. Learn more.

Related Practice Groups and Professionals

Higher Education | Ryan Kauffman
Insurance Law | Ryan Kauffman
Environmental Law | Mike Perry
Cannabis Law | Sean Gallagher

Five Stories That Matter in Michigan This Week – September 15, 2023

Michigan House Bill Would Provide Tax Credit for High School or College Graduates Who Move to Michigan

Michigan House Bill 4934, which is pending in the House, would provide tax incentives for high school and college graduates outside of Michigan to move to the state. The bill would allow them to claim a tax credit the taxpayer paid on a qualified student loan during the tax year on student loans paid starting Jan. 1, 2024.

Why it Matters: The bill would address two challenges: (1) the heavy burden of student loan debt for many young people, and (2) the “talent gap” faced by Michigan employers.

———

Attorney Michael H. Perry Honored as “Lawyer of the Year” in Environmental Law in Lansing

———

Detroit Mayor Discusses New Land Value Tax Plan With Lawmakers

This week, Detroit Mayor Mike Duggan spoke to lawmakers at the House Tax Policy Committee hearing on his land value tax plan, which would change property taxes while encouraging economic growth across Detroit.

Why it Matters: According to the plan laid out online, if enacted, would replace certain tax rates for homes and property structures with a higher rate of tax on land, with the purpose of targeting unused, unproductive, or vacant land while providing benefits to homeowners and businesses.

———

Michigan Cannabis Sales Exceed $276 Million in August

Cannabis sales surpassed $276 million in August, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $270,628,119.44, while medical sales came in at $5,643,278.24, totaling $276,271,397.68.

———

Business Education Series – Practical A.I. Business Solutions

Explore the transformative potential of Artificial Intelligence in the business landscape during our Lansing Regional Chamber of Commerce Business Education Series.

Related Practice Groups and Professionals

Higher Education | Ryan Kauffman
Environmental Law | Mike Perry
Real Estate | Jared Roberts
Cannabis Law | Sean Gallagher

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

The Pregnant Workers Fairness Act Took Effect June 27, 2023

A new federal employment law, the Pregnant Workers Fairness Act (PWFA), took effect on June 27, 2023. Pursuant to the PWFA, employers with 15 or more employees are required to provide “reasonable accommodations” to nursing and pregnant employees unless it would cause “undue hardship.”

Why it Matters: Failure to abide by the PWFA can expose employers to liability, including back pay, reinstatement, and reasonable attorney’s fees for an affected employee.

———

Cannabis to be Removed from State of Michigan Pre-employment Drug Tests Starting This Fall

Beginning October 1, 2023, cannabis will be removed from pre-employment drug tests for most state jobs following a recent vote from the Michigan Civil Service Commission.

Why it Matters: Jobs that require a commercial driver’s license, operate heavy machinery, law enforcement, and healthcare workers are among the sectors not included in this change and still prohibit cannabis use. Learn more.

———

CRA Publishes June 2023 Data, Average Price Decreases Slightly

Per data from the Cannabis Regulatory Agency, the average retail price for adult-use sale of an ounce of cannabis is $89.27, a small decrease from $90.64 in May. This is still a large decrease from the average price in June 2022, when it was $122.43.

———

Client Alert: PCORI Fees Due by July 31, 2023!

In Notice 2022-59 the Internal Revenue Service set forth the PCORI amount imposed on insured and self-funded health plans for policy and plan years that end on or after October 1, 2022, and before October 1, 2023.

Why it Matters: Notice 2022-59 sets the adjusted applicable dollar amount used to calculate the fee at $3.00. Specifically, this fee is imposed per average number of covered lives for plan years that end on or after October 1, 2022, and before October 1, 2023. For self-funded plans, the average number of covered lives is calculated by one of three methods: (1) the actual count method; (2) the snapshot method; or (3) the Form 5500 method. Learn more from your Fraser Trebilcock attorney.

———

Supreme Court Strikes Down Affirmative Action in Higher Education

On June 29, 2023, in a 6–3 decision, the U.S. Supreme Court ruled that Harvard’s, and the University of North Carolina’s admissions programs violate the Equal Protection Clause of the Fourteenth Amendment of the U.S. Constitution, as well as Title VI of the federal Civil Rights Act.

Why it Matters: The Supreme Court held that both universities’ admissions programs violated equal protection. While the Court had permitted race-based college admissions as an exception to the Equal Protection Clause in the past, it did so on the basis that such programs satisfy the “strict scrutiny” standard, could not utilize race as a stereotype, and had to be finite. Learn more from your Fraser Trebilcock attorney.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | Dave Houston
Cannabis Law | Sean Gallagher
Employee Benefits | Bob Burgee
Employee Benefits
Higher Education | Ryan Kauffman

Supreme Court Strikes Down Affirmative Action in Higher Education

On June 29, 2023, in a 6–3 decision, the U.S. Supreme Court ruled that Harvard’s and the University of North Carolina’s admissions programs violate the Equal Protection Clause of the Fourteenth Amendment of the U.S. Constitution, as well as Title VI of the federal Civil Rights Act.

The Court’s Ruling

In the cases Students for Fair Admissions v. President and Fellows of Harvard College and Students for Fair Admissions v. University of North Carolina (the “Cases”), a group of Asian-American students brought suits against Harvard and UNC alleging anti-Asian discrimination in the schools’ admissions process. In previous affirmative action cases, the Supreme Court held that universities could utilize “race-conscious” admissions policies when deciding whether to admit a student.

The Supreme Court held that both universities’ admissions programs violated equal protection. While the Court had permitted race-based college admissions as an exception to the Equal Protection Clause in the past, it did so on the basis that such programs satisfy the “strict scrutiny” standard, could not utilize race as a stereotype, and had to be finite.

According to the Court, Harvard and UNC’s admissions programs failed on all three counts. The Court stated in its opinion: “the student must be treated based on his or her experiences as an individual—not on the basis of race.”

However, the Court explained that universities may consider an applicant’s explanation of how race has impacted their life and experiences as part of an application process, as long as this information is considered as part of an assessment of an applicant’s “character” or “unique ability to contribute to the university.”

Broader Impact

The Court’s decision may have consequences beyond higher education and affect employers’ hiring and promotion policies across all sectors of the economy. Accordingly, employers should examine their approach to DE&I initiatives, particularly in the context of existing policies related to an organization’s diversity goals. Policies which consider race and ethnicity in a manner similar to Harvard and UNC should be carefully considered in light of the Court’s ruling.

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

Ryan K. Kauffman is a Shareholder at Fraser Trebilcock with more than a decade of experience handling complex litigation matters. You can contact him at rkauffman@fraserlawfirm.com or 517.377.0881.

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

Supreme Court Outlaws Affirmative Action in College Admissions

The U.S. Supreme Court struck down affirmative action in college admissions, ruling that race cannot be a factor and requiring institutions of higher education to seek new ways to achieve diverse student bodies.

Why it Matters: While the Court’s ruling was related specifically to college admissions policy, it may have a downstream effect on private-sector employers who may be forced to rethink and redesign certain hiring practices and diversity, equity and inclusion programs. In particular, in light of the Court’s ruling, there may be more challenges in the form of lawsuits to such programs and practices moving forward.

———

New Film Incentives for Michigan Proposed by Lawmaker

Michigan state Senator Dayna Polehanki recently introduced a new proposal to offer filmmakers a tax credit for movies filmed in Michigan, including a 25% credit for Michigan-based goods and services expenses, and an extra 5% if statements like “Filmed in Michigan” or “Pure Michigan” are included in the film credits.

Why it Matters: Michigan previously had a film incentive, which was ended in 2015. Advocates argue that such incentives can create jobs and lead to new entrepreneurial endeavors. Critics of such incentives suggest that they do little to help local economies.

———

Governor Whitmer Unveils MiLEAP

Governor Gretchen Whitmer signed an executive order creating a new department focusing on preschool and postsecondary education. The new department will be called the Michigan Department of Lifelong Education, Advanced and Potential, or MiLEAP.

Why it Matters: MiLEAP will partner with the state’s Department of Education and State Board of Education to create and implement a plan to strengthen the state’s preschool and postsecondary education. Learn more.

———

Michigan Cannabis Sales Exceed $260 Million in June

Cannabis sales surpassed $260 million in June, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $254,153,133.37, while medical sales came in at $6,643,877.89, altogether totaling $245,919,258.96.

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.

———

NLRB’s Atlanta Opera Ruling Imposes Stricter Independent Contractor Test on Employers

On June 13, 2023, the National Labor Relations Board (“NLRB”) ruled in the closely watched The Atlanta Opera, Inc. case, restoring the multifactor common-law framework the NLRB established in 2014 for worker classification.

Why it Matters: The ruling is significant because it establishes the test for classifying workers as either employees or independent contractors under the National Labor Relations Act (“NLRA”); the test—a return to pre-2019 standards—makes it harder to classify workers as independent contractors, and independent contractors are excluded from the NLRA’s protections for labor organizing activities. Learn more on the subject.

Related Practice Groups and Professionals

Higher Education | Ryan Kauffman
Business & Tax | Ed Castellani
Cannabis Law | Sean Gallagher
Labor, Employment & Civil Rights | Dave Houston

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

NLRB’s Atlanta Opera Ruling Imposes Stricter Independent Contractor Test on Employers

———

New Federal Law Expands Rights for Pregnant and Nursing Mothers in the Workplace

The federal Pregnant Workers Fairness Act (“PWFA”) took effect on June 27, 2023, and requires employers with 15 or more employees to provide reasonable accommodations to pregnant workers, such as providing more frequent bathroom breaks.

Why it Matters: The PUMP Act requires employers to provide a private lactation space and break times during work for nursing mothers. Contact a Fraser Trebilcock employment law attorney with questions or for assistance.

———

U.S. Supreme Court Rules on Affirmative Action

The United States Supreme Court struck down affirmative action in a ruling recently, when they ruled against the admissions plans of two colleges, Harvard and the University of North Carolina.

Why it Matters: The ruling is causing higher education institutions to review their own admissions process in seeking out a diverse student body. Contact your Higher Education Fraser Trebilcock attorney for any questions.

———

$82 Billion State Budget Approved for Fiscal Year 2024

Last week, the Michigan State Legislature with some bipartisan support approved the $82 billion state budget that will take effect later this year on October 1.

Why it Matters: Looking into the budget, the Department of Natural Resources (DNR) will receive more than $36 million more in funding than last year, the public universities located across the state will receive $2.2 billion, including $482 million from the School Aid Fund under the School Bus budget bill. Community colleges will receive $544 million from the School Aid Fund.

———

Michigan’s New Distracted Driving Law Took Effect June 30

In an effort to mitigate the risks associated with distracted driving, Michigan recently enacted legislation meant to deter and punish instances of distracted driving. Michigan is the 26th state in the United States to pass a hands-free driving law, signifying the growing national consensus around the importance of focused driving.

Why it Matters: The new law, which took effect June 30, 2023, makes holding and using a mobile electronic device while operating a motor vehicle illegal. Learn more about the new law from your Fraser Trebilcock attorney.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | Dave Houston
Higher Education | Ryan Kauffman
Business & Tax | Ed Castellani
Insurance Law | Gary Rogers

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

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.

———

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.

———

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.

———

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.

———

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