State legislators, Supreme Court justices, the governor and
the lieutenant
governor will receive significant pay raises next year if lawmakers follow
the recommendations of the State Officers Compensation Commission. The pay
increases will go into effect unless two-thirds of the House and Senate vote
to turn them down.
Salaries for state representatives and senators would rise to
$77,400, a
35.8 percent increase from this year. Governor John Engler would be paid
$172,000, up 13.7 percent, while Lieutenant Governor Dick Posthumus would
see a 19.6 percent increase to $120,400. Supreme Court justices would be
paid $159,960, up 13.5 percent. All officials also would receive an
inflationary 2.9 percent raise in 2002.
The House and Senate passed controversial legislation on insurance
coverage
for abortions and worked to hammer out differences on a diabetes coverage
mandate and a prescription coverage program for seniors.
The abortion package requires coverage for elective abortions
to be an
optional rider on employer health insurance plans. It could be purchased
separately by the employer but not automatically included. The House passed
the three bills (HB 4828-4830, HB 4983); the Senate passed two of them (SB
794 and SB 645) but cannot act on the third until next Tuesday.
A House-Senate conference committee is scheduled to release
a report Tuesday
on a package to mandate that insurance companies cover costs for diabetic
supplies and equipment (SB 260 and SB 261). The House had replaced this
provision with an income tax credit.
A conference committee is also likely to deal with a bill establishing
EPIC,
a prescription drug assistance plan for low-income seniors (SB 1278). The
program would pay prescription costs minus a 20 percent copay, with copay
costs limited to 5 percent of the individual’s income. The House inserted
language to prohibit seniors from participating in both Medicaid and EPIC.
Gov. Engler signed legislation providing a sales and use tax
exemption for
free or reduced-price meals that restaurants provide to their employees. The
bills cover food and nonalcoholic beverages provided during work hours.
Many restaurant owners were unaware of the previous requirement
that
restaurants pay sales tax on the actual cost of workers’ free or
reduced-price meals. Some faced significant tax bills when audits revealed
the oversight.
The House and Senate will continue their lame duck sessions
on Tuesday, with
tentative meeting dates scheduled for Wednesday and Thursday.
The new 91st Legislature will convene on Wednesday, January
10, as specified
in the state constitution. Most significant business will be postponed,
however, until after Gov. Engler’s State of the State Address to a joint
meeting of the legislature on Wednesday, January 31.
James DeSana, director of the Michigan Department of Transportation,
announced his retirement, effective December 30. Deputy Director Greg Rosine
was appointed by Gov. Engler to fill DeSana’s position.
DeSana had been head of the department since May 1997 and oversaw
the Build
Michigan II program and the development of the Build Michigan III program,
which is just beginning. He also instituted a five-year plan for
construction projects.
Recounting of votes in the 8th District U.S. House race reduced
Republican
Mike Rogers’ lead to 127 votes over Democrat Dianne Byrum.
The recount has been completed and certified in Ingham County,
with the
exception of one precinct which could not be recounted because of problems
with seals on the ballot box. Byrum gained 35 votes and Rogers gained 2.
Recounting in Genesee County begins today, with Livingston County and parts
of Oakland, Washtenaw and Shiawassee counties still to be completed.
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.
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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
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Click
here to find more information about any of the bills referenced above.