Governor John Engler is expected to sign legislation this weekend restructuring the electric industry in Michigan. The bills passed the House this week after clearing the Senate the previous week.
The package (Senate Bills 937, 940, 941 and 1253) will provide for an immediate five-percent residential rate cut, with those rates frozen until 2005. Commercial and industrial customers will see their current rates frozen for at least three years. Those caps will remain until 2013 or until the Michigan Public Service Commission (MPSC) certifies that there is sufficient competition in the market for alternative electric suppliers. The ability to seek power from an alternate electric supplier will begin on January 1, 2002.
The bill also requires the incumbent utilities to increase the available transmission capabilities by 2,000 megawatts and join a regional or independent transmission organization approved by the Federal Energy Regulatory Commission (FERC) by January 1, 2002. This will enable customers to contract for their electric power supplies from outside Michigan.
The legislation also authorizes the MPSC to issue securitization bonds to provide for the residential rate relief and strengthens the commissionŐs authority to regulate alternate electric suppliers. Finally, the bill will authorize the MPSC to establish a code of conduct to prevent the cross-subsidization of a utilityŐs regulated and unregulated business.
Under legislation passed by the House of Representatives on Tuesday, vendors operating in a flea market setting would need to have documentation of purchase for new and used goods they are selling.
HB 5677, sponsored by Rep. Valde Garcia (R-St. Johns), would also prohibit the sale of over-the-counter medication that is beyond its expiration date. The sale of baby formula and other temperature-sensitive foods for children under two years of age would be prohibited. The bill was modified on the House floor to address concerns by the vendor community.
The legislation now moves to the Senate Local, Urban and State Affairs committee for consideration. MRA will continue to work with members of the Senate over the legislative summer recess to address any other concerns, with the intent of passing the legislation in the fall.
Families in Jackson County who are currently using food stamps will now instead use a benefit card that operates much like a debit card. The program also enables card recipients to get their public assistance funds from any automated teller machine. The program is scheduled to expand statewide in the next 18 months.
The Family Independence Agency, the administrator of the food stamp program, will supply retailers with standalone equipment free of charge to process the transactions. Retailers incorporating Electronic Benefits Transfer transactions into their existing EFT systems will be reimbursed 2 cents per transaction during the first full year of implementation and 1.5 cents per transaction during the second year of implementation.
HB 5849, sponsored by Rep. Rose Bogardus (D-Davison), to expand liability of a person who sells or furnishes a minor with alcohol to include liability for death of any person resulting from the minorŐs consumption.
HB 5850, sponsored by Rep. Eileen DeHart (D-Westland), to regulate unsolicited electronic mail advertisements; to provide penalties and remedies.
HB 5852, sponsored by Rep. DeHart, to earmark a portion of unclaimed bottle deposit revenues to the older Michiganians pharmaceutical assistance program.
HB 5856, sponsored by Rep. DeHart, to provide use tax exemptions on car donations.
HB 5869, sponsored by Rep. Mary Ann Middaugh (R-Paw Paw), to establish elder person prescription insurance coverage program.
HB 5870, sponsored by Rep. Stephen Ehardt (R-Lexington), to revise mail order prescription procedures.
SB 1298, sponsored by Sen. John Schwarz (R-Battle Creek), to prohibit prescription drug substances prescribed or dispensed without face-to-face consultation.
SB 1302, sponsored by Sen. Dianne Byrum (D-Lansing), to provide income tax deduction for unemployment benefits.
SB 1303, sponsored by Sen. John Cherry (D-Clio), to expand liability of a person who sells or furnishes a minor with alcohol to include liability for death of any person resulting from the minorŐs consumption.
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
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here to find more information about any of the bills referenced above.