January 26, 2001

KEY LEGISLATION:

MRA HIRES NEW DIRECTOR
OF GOVERNMENTAL AFFAIRS

MRA recently filled the void left in the Governmental Affairs Department due
to the departure of Pete Kuhnmuench. Eric Rule assumed the position of
director of governmental affairs on January 23. Rule most recently served
for two years as director of governmental affairs for the Michigan
Pharmacists Association, where he advocated on behalf of the pharmacy
community to the Michigan Legislature. Prior to holding that position, Rule
spent two and a half years with Lieutenant Governor Dick Posthumus, formerly
Michigan's Senate Majority Leader.

Rule will continue the aggressive representation of the retail community's
interests at the state capitol. Among his main goals for the legislative
session are continued strengthening of MRA Political Action Committee and
passage of legislation eliminating the state's antiquated item pricing law.

 

KEY COMMITTEE ASSIGNMENTS
FAVOR RETAIL COMMUNITY

The 2001-2002 legislative session got into full swing on Thursday with the
naming of House Standing Committee members. Several of the new committee
chairmanships may prove beneficial to MRA's legislative agenda.

Among these is the naming of Rep. Jason Allen (R-Traverse City) as the chair
of the House Commerce Committee. Rep. Allen is a former retailer with
Captain's Quarters, a Traverse City men's clothing store.

Rep. Steve Ehardt (R-Lexington) was named as chair of the House Health
Policy Committee. Rep. Ehardt is a pharmacist who co-owns two retail
pharmacies in the Thumb area. His knowledge and expertise on pharmacy issues
will be of great help during the annual appropriations battle on the
Medicaid pharmacy dispensing fee.

Rep. Nancy Cassis (R-Novi) was once again selected as Chair of the House Tax
Policy Committee. Rep. Cassis has been very open to retail issues in the
past, and her position on the key Tax Policy Committee allows her to
influence the agenda on many issues important to retail.

 

MRA TO MEET WITH STATE TREASURER
ON INTERNET TAX COLLECTION

MRA will meet with State Treasurer Mark Murray in February to discuss a
proposal to simplify sales tax laws nationwide, making tax collection and
remittance more feasible for Internet and mail-order retailers. Michigan is
one of four states taking part in a pilot program to collect sales and use
taxes from participating remote sellers.

The Streamlined Sales Tax Project, as the multistate coalition is called,
wants states to adopt uniform legislation to simplify sales tax codes. The
legislation would standardize definitions for taxable and nontaxable
products, create uniform tax remittance and reporting procedures and limit
the frequency of tax-rate changes. Under the proposal, retailers would
collect both state and local sales taxes and remit all funds to the states,
which would pass the appropriate amounts along to local governments so that
retailers do not have to remit the taxes to each one individually. As
treasurer, Murray would play a key role in the decision to implement such a
program in Michigan.

 

STATE TO CRACK DOWN ON
ILLEGAL CIGARETTE SALES

Attorney General Jennifer Granholm and Treasurer Mark Murray are joining
forces to block illegal untaxed Internet and mail order sales of cigarettes
in Michigan. Granholm's office has begun contacting all Internet and mail
order sellers of tobacco to demand that they provide lists of all purchasers
in the state. Treasury will then notify these individual purchasers to pay
taxes owed to the state. The state has also been seizing unstamped, untaxed
cigarettes in Michigan.

The state's enforcement is a result of 1999 legislation, supported by MRA,
to protect retailers by requiring all cigarettes sold in Michigan to bear a
stamp verifying they were subject to Michigan sales tax.

 

37 CANDIDATES CAUSE SPECIAL ELECTIONS
TO HEAT UP

More than three dozen candidates have thrown their hats into the ring for
the three special elections scheduled by the governor. All the races are
expected to be decided in the February 27 primary.

The 2nd Senate seat, vacated by Virgil Smith, is sure to remain in
Democrats' hands, as no Republicans filed before the deadline.

The 33rd House District has drawn intense participation, with 15 candidates
filing to succeed the late Janet Kukuk. The 33rd, considered a safe
Republican seat, has drawn a plethora of local government officials and
activists as well as a former Kukuk staffer.

The most interesting race appears to be for the 26th Senate seat, vacated by
U.S. Rep. Mike Rogers. Three Republican state representatives - Valde Garcia
of St. Johns, Judith Scranton of Brighton and Larry Julian of Owosso - are
squaring off against each other and three other local Republicans. The edge
appears to be with Garcia, who picked up key endorsements from Right to Life
and the Michigan Chamber of Commerce. The Republicans are favored to win
the seat.


KEY BILL INTRODUCTIONS

HB 4020, sponsored by Rep. Ruth Ann Jamnick (D-Ypsilanti), to authorize
governing bodies in certain counties to levy and collect development impact
fees to defray cost of infrastructure improvements; to provide credits and
exemptions; to allow governments to enter into agreements relating to
impact fees.

HB 4025, sponsored by Rep. Chris Kolb (D-Ann Arbor), to require label
identifying at retail genetically-altered foods.

HB 4028, sponsored by Rep. Andrew Richner (R-Grosse Pointe Park), to
provide for municipalities to designate individual lots or structures as blighted
for purposes of condemnation; to allow transfer of blighting property
to developers.

HB 4031, sponsored by Rep. Richner, to repeal Detroit nonresident income tax
as of July 1, 2009.

HB 4035 and 4036, sponsored by Rep. Jennifer Faunce (R-Warren), to amend
liquor control code to include specific agents and employees prohibited from
selling liquor to minors; to prohibit licensee's clerks, agents or employees
from selling liquor to minors.

HB 4042, sponsored by Rep. Faunce, to provide procedures of compiling
telephone numbers of telephone subscribers who object to receiving
telephone solicitations.

HB 4049, sponsored by Rep. Jack Minore (D-Flint), to increase minimum wage
rate through 2003; to provide for future inflationary increases.

HB 4053, sponsored by Rep. Kolb, to increase minimum hourly wage rate
through 2002.

HB 4054 and 4055, sponsored by Rep. Kolb, to designate general election day
in November as a state holiday and a public school holiday.


 

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:
Eric R. Rule, Director of Governmental Affairs at errule@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.



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