News Story

'Union Time on Taxpayers' Dime' Bills Fate Uncertain in GOP House

No timetable yet for action say House leaders

Just before recessing for a two-week Thanksgiving break, the Michigan Senate passed a pair of bills to prohibit two particular schemes that require taxpayers to pay for work done on behalf of teacher and government employee unions. The legislation, Senate bills 279 and 280, has been dubbed by some “the Steve Cook bills.”

Senate Bill 279 would outlaw pension spiking of the type that allowed Michigan Education Association President Steve Cook to use a $201,613 union salary to pad his taxpayer-funded pension.

Earlier this year, Michigan Capitol Confidential broke the story about how Cook took advantage of a special deal between the Lansing School District and the Michigan Education Association that permitted him to be considered a school employee for purposes of accruing a higher payout from a state-run school pension system while working full time for the MEA. The pension system currently has $26 billion in unfunded liabilities on its books.

“It is important to note that these agreements between unions and school districts are not illegal. However, they are most certainly unethical," said Sen. Marty Knollenberg, R-Troy, who sponsored both bills. “Inflating public school pensions based on union salaries is only hurting a program that is already severely underfunded. We need to close this loophole and make sure MPSERS benefits go only to those they are intended for — public school teachers and employees.”

When asked what the House plans to do with the bill, Rep. Al Pscholka, R-Stevensville, said, "That is something we'll be looking at in December for sure." Pscholka is chair of the House Appropriations Committee.The Senate passed the ban on pension spiking ban on a nearly party line 25-12 vote. One Republican, Sen. Tory Rocca of Sterling Heights, voted against the measure. The bill was sent to the House and assigned to the House Appropriations Committee.

Senate Bill 280, meanwhile, would prohibit public schools, local governments and the state from entering into so-called release time arrangements in which union officials are carried on public payrolls to conduct union business on either a full-time or part-time basis. Knollenberg introduced a similar bill as a House member during the 2011-2012 legislative session, but it stalled in the Senate.

This session, the measure started in the Senate, where it passed on a 20-17 vote. Six Republicans joined all the Democrats in voting against the legislation. It has been sent to the House and assigned to the House Commerce and Trade Committee.

Rep. Joseph Graves, R-Linden, chairs that committee. He said he does not know what the schedule will be when the House returns from the Thanksgiving break.

Five Republican senators joined Rocca in voting against the prohibition on release time: Tom Casperson of Escanaba; Ken Horn of Frankenmuth; Rick Jones of Grand Ledge; Margaret O’Brien of Portage; and Dale Zorn of Ida.

“Requiring employee unions to cover the cost of benefits for top union personnel was a concern for school districts statewide, and I support the clarification in Senate Bill 279 that unions are responsible for their direct employees,” Horn said, explaining his votes. “With regard to SB 280, we elect local school boards and other local officials to manage employer/employee relationships and determine the best policy for their area. I did not support SB 280 because I feel details of collective bargaining agreements should be kept at the local level.”

Sen. Margaret O’Brien, R- Portage, said she had more than one reason for voting no.

“I was concerned that the bill only involved teacher unions and, like the 80/20 hard-cap, did not affect all public sector unions,” O’Brien said. “Also, to me this doesn’t rise to the level of other education issues we need to be addressing, such as what’s happening in Detroit and what’s happening with third-grade reading.”

“We like to say it is the locals that are in the best position to handle these kinds of issues, but then when something happens that we don’t like at one or two schools we turn around and throw that whole idea out the window,” O’Brien continued. “I’ve never had a single school in my district say this is an issue. If a teacher is in school and a problem comes up during the work day in reference to something involving the union then someone should be able to be there when they are needed.”

Zorn's reasoning was explained by his spokesman, Paul Egnatuk. “Sen. Zorn supports Senate Bill 279 and he voted for it,” he said. “On Senate Bill 280, Senator Zorn voted against that bill and he voted against a very similar one when he was a member of the House.”

“Senator Zorn believes grievances and other problems can and do arise during regular business hours that need to be addressed immediately,” Egnatuk said. “When that happens at times it can put management in an advantage if the other side can’t be represented, at other times it can put management at a disadvantage. That’s why both sides need to be able to be available when they are needed. It works that way in the private sector. That’s the way they do it on the line. Senator Zorn thinks that to not allow that with the schools would be unfair.”

Jarrett Skorup, a policy analyst for the Mackinac Center, said the bills would establish fairness for taxpayers.

"It is state taxpayer dollars that are paying for the pension system and these special union deals, and state legislators should ensure these dollars are being spent properly," Skorup said. "If unions believe this is a good use of money, they should fund it themselves."

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

Analysis

As Congress Fumbles Overcriminalization Reform, Burden Lands on States

'Guilty mind' bill meets wall of resistance in Washington D.C.

Sen Orrin Hatch, R-Utah, has introduced legislation in the U.S. Senate to protect citizens from being criminalized for unknowingly disobeying regulations they didn't even know existed. So far, the effort has run into a wall of obfuscation and resistance typical of Washington. In light of this response, coming on the heels of similar ill-fated efforts at reform at the national level, attempts to address the issue at the state level take on added significance.

At issue is the legal concept called "mens rea," the Latin term for "a guilty mind." It refers to a long-standing doctrine in the law that a person should have to know that he is doing something wrong before he is prosecuted for a criminal offense.

John Malcolm, the director of the Meese Center for Legal and Judicial Studies at The Heritage Foundation, cited a well-known aphorism to explain its significance: “As Oliver Wendell Holmes expressed it: ‘Even a dog distinguishes between being stumbled over and being kicked.’” Malcolm calls the doctrine “the very foundation of our criminal justice system.”

Throughout most of the nation's history laws required two things of an act before it became a crime: An individual must cause (or attempt to cause) a wrongful injury and he must do so with some form of malicious intent. 

In recent decades, the number of complex regulatory regimes have increased both at the state and federal levels. Many of these regimes prescribe criminal sanctions for violating highly arcane rules, even as the mens rea concept is omitted from the statutes that authorize such rules. According to Malcolm, this situation has been common for statutes that deal with environmental regulations and civil rights.

“There are roughly 5,000 federal criminal statutes scattered throughout the 51 titles of the U.S. Code,” Malcolm said. “And in the Code of Federal Regulations there are an estimated 300,000 or more – most likely a lot more – criminal regulatory offenses. The truth is that nobody, not even Congress or the Department of Justice, knows precisely how many criminal laws and regulations currently exist.

“Many of these laws lack adequate, or even any, mens rea standards — meaning that a prosecutor does not even have to prove that the accused had any intent whatsoever to violate the law or even knew he was violating a law in order to convict him,” Malcolm continued. “We’re trying to ally with several others to get a default mens rea bill in the Congress. Senator Hatch has tried in the Senate, but unfortunately, his effort hasn’t been successful.”

The legislation to which Malcolm referred would establish that the criminal intent concept must be applied to appropriate statutes even if those statutes fail to specify that it does.

Legislation aimed at accomplishing this has been introduced in the Michigan Legislature. House Bill 4713 and Senate Bill 20 are currently in the Senate Judiciary Committee. House Bill 4713, sponsored by Rep. Ed McBroom, R-Vulcan, was passed unanimously, 106-0, by the House on Oct. 1.

Senate Bill 20, sponsored by Sen. Mike Shirkey, R-Clarklake, was paired with House Bill 4713 in the Senate. The bills have been before the Senate Judiciary Committee for a relatively brief time. However, an issue has been raised pertaining to how broadly the concept should be applied. It is not clear yet whether this will result in only a minor tweaking of the language in the legislation or a more significant overhaul.

In Michigan, the issue of criminal intent was brought to the forefront when Supreme Court Justice Steve Markman called on the Legislature to clarify state statutes that criminalize administrative offenses. Markman took this step in reaction to a case in which a Sparta business owner was ordered to pay $8,500 in fines and costs after expanding a parking lot into an area he didn’t realize had been designated as a wetland.

“Legislatures have been passing legislation that strengthens regulation but use very weak mens rea or no mens rea at all,” Malcolm said. “This creates a strict liability that results in people unknowingly being put in a position under which they could be considered criminals. That’s a problem. What’s needed is legislation that says a court should not view silence by the legislature as meaning the absence of mens rea.”

“Some states like Ohio have passed mens rea default legislation, although what passed in Ohio was a somewhat weak version,” Malcolm added. “The folks on the left like the American Civil Liberties Union used to be supportive of mens rea but of late in some cases these groups have started considering it an attempt to get rid of regulations.”

In Michigan, the ACLU has been supportive of the proposed changes.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.