Drawing upon the theme of creating the "Next Michigan,"
technology was the
focal point of Governor John Engler's State of the State Address. The only
proposed tax break - a business tax exemption for new technology firms - was
along those lines. The governor also proposed an Internet-friendly,
expedited "Cybercourt" to make Michigan more attractive to tech companies
needing a speedy resolution of intellectual property disputes.
While flat revenue projections did not allow Engler to propose
any new tax
cuts, he did note that the next phases of multiyear tax cuts would be
implemented for the income tax and single business tax (SBT). Various
lawmakers in the Republican caucus, however, have indicated their desire to
accelerate the SBT phase-out. Rep. Nancy Cassis (R-Novi), House Tax Policy
chair, has proposed legislation to accelerate the repeal to a 10-year period
instead of the 20 years now remaining on the schedule.
One item of note for retail developers is a land conservation
plat proposal
that would create incentives to preserve open space with natural features
while using less acreage more intensively for developments. The plan would
use incentives such as having local governments expedite permit processes
for developers that conserve open space.
The full text of the address can be accessed at www.state.mi.us/migov/.
In response to the governor's agenda, the AFL-CIO released
its agenda for
the session. AFL-CIO President Mark Gaffney called for a $1 increase in the
minimum wage to $6.15, urged higher jobless benefits and criticized
legislative attempts to stifle local living wage requirements.
Although he has yet to officially commit, Lieutenant Governor
Dick Posthumus
is reportedly very close to verifying his intentions to run for governor in
2002. Long considered a frontrunner for the GOP nomination, Posthumus said
he would withhold any official announcement until summer.
Also considered a potential Republican candidate is Secretary
of State
Candice Miller. Recent rumors speculate on a possible deal between party
leaders and Miller in which she runs for Congress in 2002 with the
understanding that she could run for governor in the next open election.
Michigan Congressman Pete Hoekstra (R-Holland) has also been
mentioned as a
possible Republican candidate for governor. Hoekstra's policy of not
accepting PAC money would make such a venture an uphill struggle.
State assistance recipients in 18 more Michigan counties will
now be able to
use a debit card rather than coupons to access their food stamps and cash
assistance. The "Bridge Card" program allows welfare recipients to
access
their accounts through retail point-of-sale systems and at automated teller
machines.
The 18 new counties are: Clare, Clinton, Gladwin, Gratiot, Ionia,
Isabella,
Kent, Lake, Mason, Mecosta, Midland, Montcalm, Muskegon, Newaygo, Oceana,
Osceola, Ottawa and Shiawassee. Fourteen counties are already on the
program; remaining counties should be phased in by July 2001.
Small businesses (less than 500 employees) are eligible for
grants from the
Department of Environmental Quality (DEQ) Environmental Assistance Division..
Matching funds of $10,000 to $25,000 will be made available to each small
business selected to demonstrate technologies capable of achieving
measurable reductions in energy use and waste generation.
For more information, contact Elizabeth Sapio with DEQ at 517.335.0081.
HB 4059, 4068 and 4109, sponsored by Reps. Paul Wojno
(R-Royal Oak), Gene
DeRossett (R-Manchester) and Charles LaSata (R-St. Joseph), to provide
single business tax credit for purchase and installation costs for equipment
to process recyclable material.
HB 4069, sponsored by Rep. Stephen Ehardt (R-Lexington),
to require
illuminated door handles on fire exit doors.
HB 4082, sponsored by Rep. Robert Gosselin (R-Troy),
to provide sales tax
exemption for clothing purchases during the first 10 days of August.
HB 4085, sponsored by Rep. Paula Zelenko (D-Burton),
to require meal and
rest periods for employees.
HB 4088, sponsored by Rep. Zelenko, to prohibit employer
from firing or
disciplining employees who respond to emergencies in their role as volunteer
firefighters.
HB 4096, sponsored by Rep. Michael Switalski (D-Roseville),
to expand
beverage containers subject to bottle deposit law.
HB 4097, sponsored by Rep. Sal Rocca (R-Sterling Heights),
to exempt
nonprescription medications from sales tax.
HB 4100, sponsored by Rep. Alan Sanborn (R-Richmond),
to provide income tax
credit for cost of diabetic related equipment, supplies and educational
services.
HB 4114, sponsored by Rep. Raymond Basham (D-Taylor),
to ban smoking in
public restaurants.
HB 4126, sponsored by Rep. Chris Kolb (D-Ann Arbor),
to prohibit
telemarketers from blocking telephone number.
SB 17, sponsored by Sen. Byrum, to create the managed
care ombudsman's
office within the legislative council.
SB 18, sponsored by Sen. Byrum, to amend the Insurance
Code to provide
health care insurance termination policies.
SB 19, sponsored by Sen. Byrum, to provide that insurers
who fail to settle
an insurance claim in good faith are liable for damages incurred as a result
of that failure.
SB 20, sponsored by Sen. Glenn Steil (R-Grand Rapids),
to provide conditions
for a 10 percent single business tax credit for persons who own a facility
leased or rented for public school purposes.
SB 27, sponsored by Rep. Bev Hammerstrom (R-Temperance),
to revise Michigan
vehicle code by increasing tire disposal surcharge; to eliminate sunset on
title transfer fee.
SB 30, sponsored by Sen. Walter North (R-St. Ignace),
to provide immunity in
a civil action between patient and caregiver for those who provide
uncompensated health care, unless the acts or omission were the result of
negligence or misconduct.
SB 39, sponsored by Sen. Shirley Johnson (R-Royal Oak),
to enact provisions
to conform to federal work incentives improvement act to allow continued
insurance coverage for the working disabled.
SB 42, sponsored by Sen. Loren Bennett (R-Canton), to
revise the youth
tobacco act to prohibit the purchase and use of all tobacco products.
SB 45, sponsored by Sen. David Jaye (R-Washington Twp.),
to exempt from
assessment increase residential or business property that is sold to a
family member.
SB 46, sponsored by Sen. Jaye, to provide single business
tax credit for
Michigan-made products.
SB 48, sponsored by Sen. Jaye, to provide sales tax exemption
for equipment
dispensing diabetic medications.
SB 50, sponsored by Sen. Arthur Miller (D-Warren), to
provide for
inflationary increases in prescription drug credit for senior citizens.
SB 55, sponsored by Sen. Shugars, to amend Liquor Control
Code to revise the
allowed proximity of a licensee to a church or school.
SB 58, sponsored by Sen. John Schwarz (R-Battle Creek),
to amend Public
Health code to require face-to-face consultation before prescribing or
dispensing prescription drugs.
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.