Category: Utility Law

Five Stories That Matter in Michigan This Week – December 1, 2023

  1. Michigan Overhauls K-12 Evaluation Process

Governor Whitmer signed two bills into law (SB 395 & SB 396) on November 22, 2023, transforming the evaluation methods for teachers and school administrators in K-12 education.

Why it Matters: This new legislation substantially alters how teachers are evaluated, including streamlining rating categories, adjusting the evaluation criteria to prioritize teacher performance, and requiring educator participation in creating evaluation instruments.

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  1. Governor Whitmer Signs Package of Clean Energy Bills

Earlier this week, Governor Whitmer signed a package of clean energy bills, including one that would require companies to make 100% of their energy through renewables such as solar and wind by 2040, and also seeks to reduce energy waste, among other objectives.

Why it Matters: Clean energy legislation is a major priority for Michigan Democrats but is opposed by Republicans and has received pushback from many business groups, who argue the legislation would increase energy costs.

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  1. Cannabis Consumption Lounges Set for Detroit

The City of Detroit back in August announced its second round of recreational cannabis licenses, which included licenses for consumptions lounges. These lounges would be a place for adults 21 years or older to meet and safely consume cannabis that was legally purchased elsewhere.

Why it Matters: For some residents in Detroit, these consumption lounges can be the only safe and legal spot to consume cannabis. It is important to understand the rules and regulations tied to these lounges to ensure compliance.

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  1. Michigan Minimum Wage Set for Increase for 2024

Michigan’s minimum wage is set to increase on January 1, 2024, per the Improved Workforce Opportunity Wage Act of 2018 which establishes the annual schedule of increases. The minimum hourly wage will increase to $10.33 per hour; the 85% rate for minors aged 16and 17 will increase to $8.78 per hour; the tipped employee rate of hourly pay increases to $3.93 per hour; and the training wage of $4.25 per hour for newly hired employees ages 16 to 19 for their first 90 days of employment remains unchanged.

Why it Matters: As we approach the new year, t’s important to be aware of new laws, and changes to existing laws, that are set to take effect as of January 1, 2024. Contact us with any questions.

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  1. Streamline Corporate Transparency Act Reporting with a FinCEN Identifier

The Financial Crimes Enforcement Network (FinCEN), announced and elaborated on the use and availability of FinCEN identifiers. Under this new guidance, FinCEN identifiers may be crucial for business owners, particularly for those managing multiple entities.

Why it Matters: A FinCEN identifier is a unique number assigned by FinCEN to individuals and reporting companies, streamlining the reporting process under the CTA. Businesses will need to be prepared come 2024 for the new reporting requirements. Learn more from your Fraser Trebilcock attorneys.

Related Practice Groups and Professionals

Energy, Utilities & Telecommunication | Sean Gallagher
Cannabis Law | Sean Gallagher
Labor, Employment & Civil Rights | David Houston
Business & Tax | Robert Burgee

Five Stories That Matter in Michigan This Week – November 17, 2023

  1. Withdrawing Your Employee Retention Credit Claim: Navigating the New IRS Process

The ERC is a refundable tax credit intended for businesses that kept employees on their payroll while facing economic hardships caused by the pandemic. However, not long after its introduction, issues surfaced. Some businesses, influenced by the aggressive marketing of ERC promoters, have filed claims without fully meeting the eligibility criteria, leading to a slew of inaccurate claims.

Why it Matters: In order to provide a safe harbor to those entities that may have filed such false or inaccurate claims, the IRS has established a new withdrawal process. This measure is designed to aid businesses in re-evaluating the accuracy of their ERC claims and wish to avoid the penalties and other complications of incorrect filings. Learn more from your Fraser Trebilcock attorney.

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  1. CRA Suspends Licenses of Medical and Adult-Use Marijuana Processor

On November 15, the Cannabis Regulatory Agency (CRA) suspended the medical and adult-use marijuana processor licenses of Michigan Investments 10, Inc, after it was determined that both businesses violated various administrative rules.

Why it Matters: After onsite inspections and reviews of the statewide monitoring system (Metrc) data, the CRA discovered that the businesses incorrectly entered data into the monitoring system and failed to properly track large quantities of product as well as other violations.

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  1. CRA Publishes October 2023 Data: Average Price Hovers

Per data released by the Cannabis Regulatory Agency (CRA), the average retail price for adult-use sales of an ounce of cannabis in October was $97.62, a decrease from $100.14 in September. This is still a decrease from October 2022, where the average price was $102.65.

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.

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  1. Package of Clean Energy Bills Head to Governor’s Whitmer’s Desk

A package of bills, including one that would require companies to make 100% of their energy through renewables such as solar and wind by 2040, and also seeks to reduce energy waste, among other objectives, is on its way to Governor Whitmer’s desk for signature after passing both the Senate and House.

Why it Matters: Clean energy legislation is a major priority for Michigan Democrats but is opposed by Republicans and has received pushback from many business groups, who argue the legislation would increase energy costs.

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  1. Corporate Transparency Act Takes Effect January 1, 2024

The federal Corporate Transparency Act (the “CTA”) takes effect on January 1, 2024. It will require many companies, including small businesses, to report certain beneficial ownership information to the Financial Crimes Enforcement Network, which is a division of the Treasury Department. We previously summarized key aspects of the CTA in a post on our blog, which you can find here.

Why it Matters: Willful failure to file an initial or updated report with FinCEN is subject to a $500/day fine (up to $10,000) and imprisonment for up to two years. If you have any questions about your compliance obligations, filing deadlines, or any other questions, please contact your Fraser Trebilcock attorney.

Related Practice Groups and Professionals

Business & Tax | Robert Burgee
Business & Tax | Paul McCord
Cannabis Law | Sean Gallagher
Energy, Utilities & Telecommunication | Sean Gallagher

Five Stories That Matter in Michigan This Week – November 10, 2023

  1. Michigan House of Representatives Soon to be Divided Equally Between Democrats and Republicans

As a result of two Michigan House representatives winning mayoral races in this week’s elections, the House will soon be divided equally, 54-54, between Democrats and Republicans.

Why it Matters: A year after taking full control of the Michigan legislature for the first time in decades, Democrats will now have a harder time moving their agenda forward. Any legislation in the House will now, assuming Democrat unity, require support from at least one Republican House member. Expect greater legislative gridlock moving forward given that legislation must pass both the Senate and the House in order to be sent to Governor Whitmer for ratification.

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  1. Ohio Passes Ballot Measure; Legalizes Recreational Marijuana

Following Tuesday’s results, Ohio has become the 24th state in the nation to legalize recreational marijuana.

Why it Matters: The measure will take effect in 30 days, meaning Ohio residents over the age of 21 will be able to use, grow, or sell marijuana under the supervision of the state’s regulatory body. Additionally, individuals are allowed to possess up to 2.5 ounces of marijuana and will be allowed to cultivate up to six marijuana plans at home. Learn more.

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  1. Fraser Trebilcock Named a Tier 1 Law Firm in Lansing in Six Practice Areas for 2024

Fraser Trebilcock has received a First Tier ranking in Lansing in six practice areas by U.S. News – Best Lawyers® “Best Law Firms” in 2024.

Why it Matters: In addition to the First Tier ranking in six legal practice areas, Fraser Trebilcock has been named a Tier Two firm in Lansing for four practice areas and has also been named a Tier Three firm in Lansing for three practice areas. Learn more.

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  1. Michigan Senate Passes Package of Clean Energy Bills

Three bills recently passed by the Michigan Senate would require companies to make 100% of their energy through renewables such as solar and wind by 2040, and also seeks to reduce energy waste, among other objectives. The bills have now moved to the Michigan House.

Why it Matters: Clean energy legislation is a major priority for Michigan Democrats but is opposed by Republicans and has received pushback from many business groups, who argue the legislation would increase energy costs.

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  1. November Member Mixer in the Boji Tower

Join us for the November Member Mixer on Tuesday, November 14, at the historic Boji Tower, Lansing’s tallest and most historic building.

Why it Matters: Averaging 100+ attendees, Member Mixers occur on the second Tuesday of every month and provide an opportunity to gather and network, meet other members and business professionals and get a glimpse of a local business. Learn more.

Related Practice Groups and Professionals

Election Law | Thaddeus Morgan
Cannabis Law | Sean Gallagher
Energy, Utilities & Telecommunication | Sean Gallagher