On Friday, Grand Rapids area Representative Vernon Ehlers issued a press release announcing that he will be working with Republican Representative Todd Tiahrt of Kansas to pass legislation at protecting the general aviation parts industry from lawsuits. The press release referred to these as “common sense protections” that are “driving up insurance costs and forcing some manufacturers to stop production on parts certified by the Federal Aviation Administration.”
The press release cites the case of Washington state-based Precision Airmotive, who was forced to shut down last month due to an increase in its insurance rates following a lawsuit that found a flaw in its parts was related to the crash of a Cessna 150 plane on take-off. Ehlers’ news release than features two quotes the president and CEO of the General Aviation Manufacturers Association.
However, the news release fails to mention that the General Aviation Manufacturers Association has made contributions to Ehlers reelection efforts through its PAC. In the 2006 election cycle, Ehlers was the second highest recipient of money from the PAC, receiving $4,000. This was behind the $7,000 each given to Ehlers’ partner on the recent effort, Todd Tiahrt, and North Carolina Representative Robin Hayes. Ehlers also received $2,500 in 2004 and $1,000 in 2002.
It is also worth noting that the press release from Ehlers’ office contains almost identical language to the General Aviation Manufacturers Association press release.
The GAMA release:
Washington, DC, December 7, 2007 – Today, Representative Vern Ehlers (R-MI) announced that he and Representative Todd Tiahrt (R-KS) would introduce legislation to provide general aviation (GA) airplane parts manufacturers with common sense protections against frivolous lawsuits. These lawsuits are driving up insurance costs and, in some cases, forcing manufacturers to stop production of parts certified by the Federal Aviation Administration (FAA).
Ehlers’ announcement comes a month after Precision Airmotive, a GAMA member, shut down production on its float carburetor because the cost of insurance exceeded total sales revenue. The carburetor has been manufactured since the 1930’s, but despite an excellent safety and sales record, it could no longer sustain the cost to defend its product in lawsuits.
“Frivolous lawsuits are making it difficult and sometimes impossible for parts manufacturers to stay in business,” said GAMA President and CEO, Pete Bunce. “It is unacceptable for American manufacturers that produce safe equipment to be shutting down production and laying-off workers because of frivolous lawsuits costing millions of dollars in legal fees and increased insurance rates.”
“This legislation is desperately needed to restore some balance and fairness in our legal system,” said Bunce. “This is a job-restoring and job-creating measure and we thank Congressman Ehlers for leading this effort. We look forward to working with him to get this legislation signed into law.”
GAMA is an international trade association headquartered in Washington, DC representing over 50 of the world’s leading manufacturers of general aviation aircraft, engines, avionics and related equipment. GAMA’s members also operate fleets of aircraft, fixed based operations, and pilot training and maintenance training facilities. For additional information, visit GAMA’s website at http://www.GAMA.aero.
Ehlers’ release:
WASHINGTON – Congressman Vernon J. Ehlers announced today that he and Rep. Todd Tiahrt (R-KS) are working on legislation to provide general aviation parts manufacturers with common sense protections against lawsuits. These lawsuits are driving up insurance costs and forcing some manufacturers to stop production on parts certified by the Federal Aviation Administration.
Congressman Ehlers’ announcement comes a month after Precision Airmotive, a general aviation parts supplier based in Washington state, shut down production on its float carburetor because the cost of insurance exceeded total sales revenue. The company had manufactured carburetors since the 1930’s, but despite an excellent safety and sales record, it could no longer afford liability insurance to defend its product in lawsuits.
“The risk of frivolous lawsuits is making it nearly impossible for many aviation-parts manufacturers to stay in business,” said Congressman Ehlers. “We must tighten up current law to protect these manufacturers from damaging lawsuits while still providing safeguards to consumers. A common sense reform will do both without driving manufacturers out of business, just as the original protections in the 1994 law restored growth in the airplane manufacturers industry.” Ehlers noted that numerous manufacturers have cited rising costs related to litigation as a major impediment to their future operations.
“Frivolous lawsuits are making it difficult and sometimes impossible for parts manufacturers to stay in business,” said Pete Bunce, President and CEO of the General Aviation Manufacturers Association. “It is unacceptable for American manufacturers that produce safe equipment to be shutting down production and laying-off workers because of frivolous lawsuits costing millions of dollars in legal fees and increased insurance rates.”
“This legislation is desperately needed to restore some balance and fairness in our legal system,” said Bunce. “This is a job-restoring and job-creating measure and we thank Congressman Ehlers for leading this effort. We look forward to working with him to get this legislation signed into law.”
No details were provided about the potential legislation in either release.
A new review by the Michigan Campaign Finance Network has found that the top 150 political action committees (PACs) have raised $9,558,690 through July 20th this year. This number exceeds the pace of the 2005-2006 election cycle, when the top 150 PACs had raised $9,538,880. In 2006, contributions were up 55% compared to previous election cycles. The top 10 PACs were the Michigan House Democratic Fund, the Senate Republican Campaign Committee, the House Republican Campaign Committee, the Michigan Health & Hospital Association, Michigan Association of Realtors, Blue Cross/Blue Shield of Michigan, (Jennifer) Granholm Leadership Fund, Senate Democratic Fund, Auto Dealers of Michigan PAC, and the Michigan Education Association PAC.
The top 150 political action committees (PACs) in Michigan have raised more than $47 million according to research by the Michigan Campaign Finance Network. This amount is 59% more than the 2004 election, with both state PACs and leadership PACs seeing a substantial increase. The increase has been led by the Coalition for Progress PAC, funded by Jon Stryker of Kalamazoo and Pat Stryker of Colorado Springs, who have contributed 99.6% of the PAC’s fund. While the Coalition for Progress has claimed to be a “liberal” PAC designed to offset the influence of DeVos’ political money, it will likely contribute to a lessening of democracy rather than expanding it as elections increasingly become dominated by contributions from corporate interests and wealthy families. Rich Robinson of the Michigan Campaign Finance Network has raised concerns that “the people need to remain vigilant to make sure the public interest won’t be overwhelmed by elected officials’ desire to show appreciation for all this campaign cash” while arguing in relation to the Coalition for Progress PAC that “we have gone too far in letting a few with great wealth decide the course of our elections.”
The top 150 political action committees (PACs) in Michigan have raised $30 million this election cycle according to data compiled by the Michigan Campaign Finance Network (MCFN). MCFN reports that this figure is up 26.6% from the 2004 election cycle when the PACs had raised $23.7 million by July 20, 2004. The top PACs are the various legislative caucuses whose fundraising is up an average of 65%. The PACs of several interest groups have also experienced significant growth, with the United Autoworkers Voluntary PAC at $1,200,000 (up $425,000 in 2004), the Michigan Association of Realtors PAC at $876,608 (up $237,701) and the Comerica, Inc. PAC at $370,762 (up $207,594). National presidential candidates have also established PACs in Michigan, with Massachusetts Governor Mitt Romney’s Commonwealth PAC and Senator John McCain’s Straight Talk America – Michigan PAC raising $1,124,720 and $138,000 respectively.
Michigan’s top 150 political action committees (PACs) have set new fundraising records for the 2005-2006 election cycle, with the PACs already raising nearly 23% more than at this point in the 2003-2004 cycle and nearly 36% more than in the 2001-2002 election cycle.
According to data compiled by the Michigan Campaign Finance Network (MCFN), Michigan’s top 150 political action committees (PACs) are setting new fundraising records in the 2005-2006 election cycle. Through April, the top 150 PACs in Michigan have raised $22,943,869, a figure that is 22.8% higher than at this point in the 2003-2004 election cycle and 35.5% higher than the $16.9 million raised at this point in the 2001-2002 election cycle. Rich Robinson of the MCFN said that “Interest groups are investing more than ever before to move the political process in Lansing” and emphasized the fact that “Citizens should not be deluded into thinking they’re doing it for selfless reasons” in a press release accompanying the data.
The legislative caucuses’ PACs are the top fundraisers, despite the fact that they are the only state PACs subject to contribution limits ($20,000 per year). Not surprisingly, Republican caucuses have raised the most, with House Republicans raising $2.2 million and Senate Republicans raising $1.6 million. Michigan’s Democrats have raised $1.5 million in the House and $871,000 in the Senate. Interestingly, the Commonwealth PAC, a PAC setup to boost the presidential prospects of Massachusetts Governor Mitt Romney, has raised $350,000, making it the second-ranking officeholders’ leadership PAC behind the $483,000 raised by Governor Jennifer Granholm’s Leadership Fund. Aside from party interests, corporations and interest groups have also increased their PAC contributions. Comcast has contributed $106,000 to its PAC this election cycle to win favorable legislation affecting broadband market share after working last year with phone companies, the Telecommunications Association, and the Cable Telecommunications Association to deregulate Michigan’s telecomm industry last year. Other corporate contributors include DTE Energy, Comerica, AT&T Michigan, Consumers Energy, and DaimlerChrysler. A variety of interest groups also make significant monetary contributions to the political process including the Michigan Education Association, the Michigan Association of Realtors, the United Auto Workers, Michigan Beer and Wine Wholesalers, and the Michigan Trial Lawyers Association.
The increasing amounts of money entering the political process in Michigan are of particular concern given that there are few limits on PAC contributions, thereby increasing the likelihood that corporations, interest groups, and in some cases individuals, will be able to trump the public interest. Already, Dick DeVos’ gubernatorial campaign has made use of some $2.1 million to buy television advertising, nearly matching the $2.3 million that had been spent on ads in Michigan at this point in the 2004 presidential campaign by President George W. Bush. DeVos’ spending likely has contributed to the slight lead DeVos has over Governor Granholm in recent polls and shows the influence that money can have on an election.
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