Senate rejects Granholm's new department proposal

By  On  September 24th, 2003

LANSING (AP) - The state Senate yesterday rejected Gov. Jennifer Granholm's order creating the new state Department of Labor and Economic Growth. The Republican-controlled Senate voted 22-16 along party lines to reject the new department that would combine the functions of the Department of Consumer and Industry Services and the Department of Career Development. Several Republican senators said they don't like the way the executive order changes the workers' compensation appeals process. The Worker's Compensation Appellate Commission board would be eliminated under the order. Instead, worker's compensation appeals would be considered by two appellate magistrates - one representing workers and one representing employers. If the two magistrates don't agree on a case, the tiebreaker is the chairman of the Board of Magistrates, who is appointed by the governor. A few business groups, including the Michigan Chamber of Commerce, said the new appeals process will favor labor if contentious cases are decided by an appointee of a Democratic governor. Senate Majority Leader Ken Sikkema (R-Wyoming) asked Granholm to withdraw the executive order to address senators' concerns. He said the Granholm administration should have worked with lawmakers to come up with an executive order they could support. "I truly am sad that we have come to this point today," Sikkema said. "I felt the path of cooperation was better than the path of confrontation. ... She has chosen this path and the Senate will rise to meet its constitutional obligation." Granholm, a Democrat, signed the executive order on Sept. 17. It will take effect in 60 days unless it is rejected by both chambers of the state Legislature. Liz Boyd, spokeswoman for Granholm, said the governor is standing by her executive order. "The Senate made up its mind before this was ever issued and before they had opportunity to give it fair consideration," Boyd said about the order. "This has not been a fair process and perhaps the process in the House will be more deliberative." The measure now goes to the House, but it was unclear yesterday whether the Republican-controlled House would take up the Senate resolution or vote on its own measure to reject the order. Matt Resch, spokesman for House Speaker Rick Johnson (R-LeRoy) said House Commerce Committee Chairman Clark Bisbee will continue to hold hearings on the executive order. Bisbee, R-Jackson, has introduced a similar resolution in the House. Senate Minority Leader Robert Emerson, D-Flint, said he's saddened the Senate Republicans rejected a 52-page executive order because it will end the terms of four Worker's Compensation Appellate Commission members appointed by former Gov. John Engler. Sen. Gilda Jacobs, D-Huntington Woods, said the resolution is purely political. "This partisan rhetoric is unbelievable," she said. "It is time to start showing the governor the same respect you demand from her."              

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