With the primary elections just two months away, legislators in both chambers are eager to recess for the summer and begin campaigning. Both the House and Senate have adjourned for a two-week period and are expected back for a one-day session on June 20 to take care of any remaining budgets or other uncompleted business.
Following the one-day return, legislators will again recess until September 12, when they will return for a brief fall session before breaking again for the November election.
All 110 seats in the state House of Representatives are up for election, and all but 21 members are eligible to return. That leaves the vast majority of members seeking re-election in November. Campaigning is expected to be furious as Democrats try to wrestle control of the House away from Republicans. At the same time, the majority caucus would like to add to its current 58-52 seat margin.
Also on the November ballot will be a presidential contest, a hotly contested U.S. Senate race and three seats on the state Supreme Court, all held by incumbent justices. All 16 seats in the U.S. House of Representatives will be up for election and at least one statewide ballot initiative - to authorize school vouchers - will be on the ballot.
Retail pharmacy interests have been successful in securing a five-cent increase in the Medicaid dispensing fee, which is annually established as part of the Department of Community Health budget. According to legislation just passed by the House, the fee will be set at $3.77 for the next fiscal year.
The original executive office recommendation was to eliminate the fee designation, allowing the state Medicaid department to set the fee at any level. However, intense efforts by MRA and pharmacy groups earlier this year persuaded the Senate to reinstate the current dispensing fee of $3.72. The Senate bill also directed the department to conduct a study on the cost savings to Medicaid providers from the implementation of online adjudication of Medicaid prescriptions. The department would then be able to forward a recommendation to the legislature on possible adjustments to the dispensing fee level.
Through committee and floor amendments during House discussion of the budget, the Michigan Retailers Association and other pharmacy advocates were able to secure the five-cent increase and eliminate the mandate on the department to conduct the cost savings study. The bill is now likely to be directed to conference committee for final resolution on June 20.
Legislation establishing a clear standard for the repayment of sales tax when taxable goods are returned was signed into law by Governor John Engler. House Bill 4664, sponsored by Rep. Andrew Richner (R-Grosse Pointe Park), requires that sales tax paid on returned goods must be fully refunded or prorated to the amount of the purchase price that was actually refunded or credited.
The requirement to return the paid sales tax applies until the end of the retailer's stated refund policy or 180 days after the initial sale, whichever is sooner. Senate Bill 585, sponsored by Sen. Mike Goschka (R-Brant), places the same requirements on sales subject to the use tax.
MRA-supported legislation that would amend the General Sales Tax Act by clarifying the requirements for documenting tax-exempt sales transactions was passed by the Senate and concurred in the House with bipartisan support. If signed into law by the governor, House Bill 4891, sponsored by Rep. Clark Bisbee (R-Jackson), would clarify that a retailer who "received a completed and signed exemption certificate from the buyer" establishes a "good faith" effort to verify tax-exempt status when accepting the exemption claim. Currently the law does not define what constitutes a good faith effort to verify the tax-exempt status.
The Senate amended the legislation to authorize the Michigan Department of Treasury to develop a database of exempt buyers, which would eventually allow sellers to report and maintain exemption claims electronically. In addition, buyers who intend to claim a sales and/or use tax exemption must register with the Department of Treasury within six months of becoming eligible to claim the exemption or six months from the date of notification by Treasury, whichever is later.
This legislation affords retailers greater protection should any dispute arise regarding the tax-exempt status of a sale. The bill would also lengthen from three years to four the amount of time buyer-seller transactions are covered by a blanket exemption.
HB 5883, sponsored by Rep. Marc Shulman (R-West Bloomfield), to clarify determination of property's true cash value.
HB 5884-5887, sponsored by Reps. Andrew Raczkowski (R-Farmington Hills), Stephen Ehardt (R-Lexington), Gerald Law (R-Plymouth) and Sandy Caul (R-Mt. Pleasant), to require development of uniform prescription drug information card for health insurance companies, Blue Cross/Blue Shield, HMOs, and third party administrators.
SB 1310, sponsored by Sen. Dianne Byrum (D-Lansing), to prohibit prescribing drugs or filling prescriptions for patients based solely on a consultation via the Internet.
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.