January 12, 2001

KEY LEGISLATION:

LEGISLATURE CONVENES FOR 2001-02 SESSION

The 91st Legislature convened on January 10 for opening ceremonies and
swearing in of House members. The House includes 21 new members.

House and Senate committee meetings and caucus retreats are scheduled for
the coming weeks. Regular Tuesday through Thursday sessions will begin
January 30, with major legislative business postponed until after Gov. John
Engler’s State of the State Address on January 31. Lawmakers will be in
session until early April, when they will recess for two weeks at Easter.

 

SPECIAL ELECTIONS SET FOR MARCH 20

Gov. Engler set March 20 as the date for special elections to fill vacancies
in two Senate seats and one House seat. Candidates must file by January 23,
and primaries will be held if needed on February 27.

In the 2nd Senate District, vacated by Virgil Smith, the only announced
candidate is the former senator’s son, also named Virgil Smith, running as a
Democrat. Rep. Ken Daniels (D-Detroit) and former Rep. Martha Scott
(D-Highland Park) are also expected to run.

In the 26th Senate District, vacated by newly elected U.S. Rep. Mike Rogers,
Rep. Valde Garcia (R-St. Johns) and Rep. Larry Julian (R-Lennon) have both
declared their intention to run. Rep. Judith Scranton (R-Brighton) is also
expected to seek the position.

In the 33rd House District, vacated by the death of Janet Kukuk, Macomb
County commissioners Nicki Brandenburg and Leon Drolet have announced their
candidacy on the Republican ticket. Other Republicans considering a run
include Maria Carl, widow of former State Sen. Doug Carl; Mark Sanborn,
brother of Rep. Alan Sanborn (R-Richmond) and an unsuccessful candidate for
Macomb County sheriff last year; and Kathy Vosburg, a Kukuk aide.

 

NEW PUBLIC SERVICE COMMISSION CHAIR NAMED

Laura Chappelle, Gov. Engler’s chief legal advisor on utility and insurance
issues, was named by the governor to head the Michigan Public Service
Commission. She succeeds John Strand as head of the commission, which
oversees implementation of laws regulating the electricity and
telecommunications industries.

Strand resigned to become Legislative Council administrator, in charge of
the Legislative Service Bureau, the Law Revision Commission and the Joint
Committee on Administrative Rules.

Chappelle was praised by both industry and consumer groups for her fairness
and knowledge of the complex issues facing the utility industry.

 

BUSINESSES GET UNEMPLOYMENT TAX BREAK IN 2001

Most Michigan employers will receive a cut in unemployment taxes for the
sixth consecutive year in 2001. About 164,000 businesses will see their
unemployment tax rate go down by 10 percent, while 160,100 will see a
decrease in the account building component of the tax. The total reduction
will equal $200 million.

The decrease is required because the cash reserves in the unemployment trust
fund, which is used to pay benefits to jobless workers, exceed 1.2 percent
of all Michigan payrolls. Since 1996, employers have received more than $1
billion in tax cuts due to high cash reserves in the fund.

 

ID THEFT BILLS BECOME LAW

Gov. Engler signed two bills (SB 120 and SB 885) that seek to prevent
identity theft. The bills make it a felony for a person to steal someone
else’s identity to obtain money, buy property, acquire medical records or
commit another crime. Penalties include up to five years in prison and fines
of up to $10,000.

 

ENGLER VETOES ABORTION BILL,
SIGNS DIABETES AND DRUG COVERAGE MEASURES

In a surprise to advocates on both sides of the abortion issue, Gov. Engler
vetoed a bill to prohibit employers from automatically including abortion
coverage in health insurance packages offered to employees. The governor
cited concerns over the constitutionality and administration of the measure.

Engler signed a package of bills to require health insurers to cover
medications needed for diabetes. He also signed legislation creating a
prescription drug coverage plan for seniors (EPIC) that replaces the
existing tax credit. The program will be open to seniors with incomes no
higher than 200 percent of the poverty level who are not eligible for
Medicaid or covered by insurance.


 

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Michigan Retailers Association
603 South Washington Avenue
Lansing, MI 48933
Phone: 517.372.5656
Toll Free: 800.366.3699
Fax: 517.372.1303
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http://www.retailers.com
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