On Tuesday the Michigan Senate passed a package of electric restructuring bills with a two-thirds-majority vote. The package includes Senate Bills 937, 940, 941 and 1253. The Michigan Retailers Association formally opposed these measures largely on the inclusion of Senate Bill 1253, which authorizes the securitization of certain stranded and implementation costs.
Two House committee hearings followed this week, and the package is expected to be reported from committee for full House deliberation on May 30. MRA is working to secure additional amendments that will ensure the opportunity for full customer choice for retailers as this plan is implemented.
As currently before the committee, the legislation would allow all electric customers to choose an alternate electric provider by January 1, 2002, and authorize the Michigan Public Service Commission (MPSC) to license alternate electric suppliers until December 31, 2003. It also mandates a 5% residential rate cut and a freeze on all other rates until December 31, 2003.
The package would allow the MPSC to authorize the issuance of rate reduction bonds or securitization financing to provide the rate reductions and would require a 2,000-megawatt expansion of the available transmission capacity into the state within two years of the effective date of the legislation. The MPSC would also be empowered with specific authority to establish a code of conduct applicable to electric utilities to prevent cross-subsidization between regulated and unregulated businesses.
In a hastily called meeting, the Senate Committee on Energy and Technology reported out two bills regulating the telemarketing industry in Michigan. No testimony was allowed as Senate Bills 990 and 121 were reported to the full Senate, with the intention of holding the bills on the floor until the remainder of the telemarketing package is reported to the Senate.
As currently written, Senate Bill 990 would require the annual licensing of any telephone solicitor operating in Michigan and authorize the Michigan Public Service Commission to set fees and license requirements. Senate Bill 121 establishes a state-level "Do Not Call" list and prohibits a telephone solicitor from calling a person on the list.
MRA-supported legislation protecting retailers from the fraudulent sales tax exemption claims of customers was reported out of the Senate Finance Committee earlier this week with amendments suggested by the Michigan Department of Treasury. Under the amended version of House Bill 4891, sponsored by Rep. Clark Bisbee (R-Jackson), a retailer who secures a signed exemption-claim certificate from a buyer would no longer be required to make additional efforts to verify the validity of a customer's exemption claim. The bill also extends the period covered by a blanket exemption certificate from three to four years.
Treasury officials offered amendments to the legislation requiring buyers eligible to claim exemptions to fill out a form provided by Treasury by March 1, 2001, or 6 months after becoming eligible to claim an exemption.
Under current law, a retailer is required to exercise reasonable care and effort to determine if a purchaser is entitled to an exemption being claimed. If that claim is subsequently disallowed by the Department of Treasury in an audit review, the retailer is held liable for the applicable sales tax. Under the proposed legislation, a retailer who secures the signed certificate could not later be held accountable for the tax.
This legislation now moves to the full Senate for consideration.
Legislation extending Michigan's scrap tire law will be reviewed over the summer by the House Committee on Conservation and Outdoor Recreation. Peter Kuhnmuench, MRA's vice president of governmental affairs, testified in opposition to the package as introduced. Kuhnmuench said the proposed requirements for retailers are onerous and do not address the problem of illegal dumping.
MRA will continue to work with Committee Chair Rep. Larry DeVuyst (R-Alma) and members of the committee to forge an agreement that does not place undue burden on retailers.
HB 5816, sponsored by Rep. Mark Schauer (D-Battle Creek), to create supplemental prescription drug program for senior citizens; to provide funding.
HB 5819, sponsored by Rep. James Koetje (R-Grandville), to prohibit sale or gift of lottery ticket to person under 21 years old.
HB 5821, sponsored by Rep. Nancy Cassis (R-Novi), to provide income tax credit to a historical museum.
HB 5822, sponsored by Rep. Randy Richardville (R-Monroe), to earmark two dollars of specific tax collected for each mobile home for school infrastructure.
HB 5824, sponsored by Rep. Schauer, to prohibit prescribing drugs or filling prescriptions for patients based solely on a consultation via the Internet.
HB 5835, sponsored by Rep. Thomas Kelly (D-Detroit), to eliminate sales tax credit on commercial diesel fuel tax.
SB 1288, sponsored by Sen. Arthur Miller, Jr. (D-Detroit), to clarify determination of true cash value of personal property for property tax.
For back issues of Capitol F@cts on-line visit MRA's web site at http://www.retailers.com/capfax/capfax.html.
Specific comments or questions regarding this bulletin should
be directed to:
Jason Klonowski, MRA's Manager of Governmental Affairs at jklonowski@retailers.com.
Michigan Retailers Association 603 South Washington Avenue Lansing, MI 48933
517.372.5656
800.366.3699
Fax: 517.372.1303
govt_affairs@retailers.com
http://www.retailers.com
http://www.mallofmichigan.com
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here to find more information about any of the bills referenced above.