Lawmakers returned to Lansing to wrap up unfinished business
before the end
of the legislative session. They also used the opportunity to revive some
controversial proposals that had been tabled earlier, such as a ban on local
"living wage" ordinances and a coverage mandate for diabetics.
The House narrowly passed the living wage ban, HB 4767, sponsored
by Rep.
Andrew Richner (R-Grosse Pointe Park), which would prohibit local
governments from setting minimum wages higher than the federal level of
$5.50 per hour. The bill would abolish such ordinances already adopted in
Detroit, Warren, Ypsilanti and Ypsilanti Township. Business groups oppose
local living wage laws because they create a patchwork of differing
standards throughout the state.
The House also passed a gutted version of Senate bills that
would mandate
health insurance coverage of diabetes medications and supplies, proposing
instead a tax credit for the cost of diabetic treatments. The Senate is
expected to reject the package (SB 260, SB 261 and HB 6095), forcing the
bills into conference committee.
The Senate and House approved measures (SB 1276 and HB 5869)
setting January
1 as the date for Michigan’s Elder Prescription Insurance Coverage (EPIC)
program for low-income seniors to begin. Since the Department of Community
Health is not yet ready to launch EPIC, the emergency pharmaceutical program
will remain in operation until EPIC is started.
A package of bills regulating adult entertainment passed the
Senate with
some opposition from business interests. Gregory Josefowicz, president of
Ann Arbor-based Borders Group, said HB 4327, which requires that
adult-oriented material be segregated from other merchandise so it could not
be viewed by minors, was overly vague and would be burdensome to implement.
HB 5677, an MRA-supported bill to prevent the sale of stolen
and outdated
goods at flea markets, was enrolled and sent to Governor John Engler for
signature. The bill, sponsored by Rep. Valde Garcia (R-St. Johns), received
broad support in the legislature and is expected to be signed into law.
Attorney General Jennifer Granholm released the seventh annual
holiday
scanner accuracy survey on Tuesday, showing a 16.9 percent error rate for
retailers’ price scanners.
The AG’s investigators shopped at seven major chains, focusing
on sale-price
items, which account for most scanning errors. The number of undercharges
and overcharges was approximately equal, but the dollar amount of the
overcharges was higher.
MRA used the opportunity to call for reform in the state’s
item pricing law,
which forces retailers to rely heavily on labor-intensive hand pricing
rather than modern technology. "We need a better system, one that recognizes
the need for speed in changing prices and relies more on modern technology
and less on error-prone humans placing price stickers on every item in a
store," said CEO Larry Meyer.
MRA is closely monitoring an emerging issue regarding the taxing
of sales of
herbal remedies. CEO Meyer met with State Treasurer Mark Murray to discuss
recent decisions by Treasury field auditors that herbal remedies are
different from dietary supplements or vitamins and do not fall under the
sales tax food exemption. The decisions also subject affected retailers to
four years of previous tax liability.
MRA is urging Treasury to clearly define herbal remedies as
tax-exempt food
items or, at the very least, not apply the field auditors’ decisions
retroactively.
The Senate passed a measure (SB 795) to allow 16- and 17-year-olds
to work
up to 62 hours a week in any week that school is not in session. Current law
allows those teens to work up to 62 hours only six weeks per year.
An earlier ruling by the Michigan Department of Consumer and
Industry
Services allows a deviation from youth employment rules for the 2000 holiday
season. From Nov. 16 to January 3, 16- and 17-year-olds can work until
midnight as long as they work no more than 10 hours per day (or a weekly
average of eight hours per day), no more than 48 hours per week of work and
school combined, and no more than six days per week.
Recently re-elected Rep. Janet Kukuk (R-Macomb Township) died
November 19 at
age 58 after a recurrence of breast cancer. Kukuk was first elected in 1998
after her husband, Al Kukuk, was term-limited. She was known for her
advocacy for pro-life issues.
Governor Engler is expected to call a special election to fill
her seat, as
well as to fill vacancies in the Senate, where Sen. Virgil Smith (D-Detroit)
is leaving for the Wayne County Prosecutor’s Office and Sen. Mike Rogers
(R-Brighton) is heading for a seat in the U.S. House.
Meanwhile, Rogers’ opponent, Democratic State Rep. Dianne
Byrum, filed a
petition for a hand recount of votes in 207 of the 332 precincts in the 8th
Congressional District. Byrum lost by 160 votes. Rogers is likely to
counter-petition with a request to recount the remaining precincts.
HB 6149-6150, sponsored by Rep. Raymond Basham (D-Taylor),
to provide
penalties for sale of nitrous oxide under certain circumstances; to enact
sentencing guidelines for crime of selling nitrous oxide to minor.
HB 6170-6172, sponsored by Reps. Jason Allen (R-Traverse
City), Bruce
Patterson (R-Canton) and Clark Bisbee (R-Jackson), to accelerate the repeal
of the single business tax; to provide accelerated rate reduction to single
business tax.
HB 6173, sponsored by Rep. Bisbee, to revise good faith
definition for
blanket exemption certificate under use 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:
Jeanette Towsley, Administrative Assistant to the Governmental
Affairs Department at jtowsley@retailers.com.
Michigan Retailers Association
603 South Washington Avenue
Lansing, MI 48933
Phone: 517.372.5656
Toll Free: 800.366.3699
Fax: 517.372.1303
govt_affairs@retailers.com
http://www.retailers.com
http://www.mallofmichigan.com
Click
here to find more information about any of the bills referenced above.