KEY LEGISLATION:

MRA URGES TOUGH ACTION AGAINST REMOTE SELLERS

MRA CEO Larry Meyer urged state Treasury officials to take "immediate,
aggressive and demonstrable action" against furniture sellers outside
Michigan while the nation continues to debate how to handle sales tax
collections involving remote sales. During a meeting with State Treasurer
Mark Murray to emphasize the need for streamlined sales tax collection
procedures that would enable remote sellers to collect the tax more easily,
Meyer pushed for aggressive sanctions against companies from other states,
especially furniture sellers in North Carolina, that don’t collect sales tax
for products delivered to Michigan.

A national effort is underway to simplify the way states collect sales tax.
Legislation was recently drafted by Sen. Joanne Emmons (R-Big Rapids) along
the lines of the National Conference of State Legislatures’ model language.
States’ tax administrators have proposed more comprehensive reform. Meyer
urged Treasury not to wait for consensus or the outcome of a Maryland court
case, but to step up enforcement of existing law now.

GOVERNOR ENGLER UNVEILS TIGHT BUDGET

After years of bulging state coffers and budgets that grew along with them,
Governor John Engler handed legislators a constrained 2001-02 budget
proposal that reflects the slowing economy. The overall budget of $38.2
billion is $1.2 billion above current spending, while the General Fund
budget of $9.8 billion is only $43 million more than this year.

Supporters of higher education were among the first to complain as they
vowed to boost their proposed 2.0 percent increase above the 3.4 percent
boost for the prison system. However, Senate Appropriations Chair Harry Gast
(R-St. Joseph) predicted smoother sailing for this budget than previous ones
because it doesn’t have new pots of money to haggle over. The proposed
budget includes a 2 percent increase for Medicaid providers. It also
includes $50 million to fund the new Elder Prescription Insurance Coverage
program.

On a related note, Janet Phipps, director of the Department of Management
and Budget, announced her resignation, effective February 21. She plans to
return to her native Iowa.

CANDICE MILLER CLOSER TO U.S. HOUSE RUN

Fueling speculation that she will step aside to let Lt. Gov. Dick Posthumus
run virtually unchallenged for governor in the Republican primary, Secretary
of State Candice Miller hinted that she might be leaning closer to a run for
the U.S. House than for governor in 2002. At a meeting of the National
Association of Secretaries of State, Miller said she wants to avoid a
"bloody primary" for the gubernatorial election in 2002.

While commenting that "I’m giving a run for Congress some serious thought,"
she made it clear she has made no final decision. Because Michigan is losing
one congressional seat, the district lines will be redrawn significantly.
With Republicans in almost complete control of the process, most experts
expect the redrawn districts to be much more favorable to Republicans.

GARCIA RECEIVES KEY ENDORSEMENTS IN SPECIAL ELECTION

The Michigan Chamber of Commerce officially endorsed Rep. Valde Garcia
(R-St. Johns) for the Republican nomination in the 26th Senate District
special election on February 27. The Lansing Regional Chamber and Right to
Life are other key groups endorsing Garcia.

Garcia’s main competition appears to be Rep. Larry Julian (R-Lennon), who
has won several key endorsements of his own. A former police officer, Julian
was endorsed by the Police Officers Association of Michigan as well as the
Michigan Police Legislative Coalition and the Michigan Farm Bureau.
MRA has decided to officially support Garcia, although both Julian and
Garcia have favorable stances toward retail. The vacancy was created when
Sen. Mike Rogers won election to the U.S. House of Representatives.

KEY BILL INTRODUCTIONS:

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.