KEY LEGISLATION:

DEMOCRATS URGE UNEMPLOYMENT BENEFITS BOOST

House Democrats called for an immediate boost of more than 33 percent in
unemployment benefits to make up for a six-year freeze. While Democrats and
union leaders hailed the plan as a win-win because of deeper cuts offered to
businesses if the unemployment fund remains robust, business groups
immediately ripped the proposal.

In 1995 the Republican-controlled legislature capped the maximum weekly
benefit at $300 and reduced the benefit rate to 67 percent from 70 percent
of after-tax earnings. The Democrats’ proposal seeks to reverse those
reforms, allowing the maximum benefit to increase to $414.39. Democrats
argue that with the unemployment trust fund at record levels, it’s wrong not
to return a portion of these funds to Michigan’s working families.

Other portions of the Democrats’ proposal would restore benefits to seasonal
workers, allow benefits to persons who leave their job when a spouse
relocates, provide benefits in a lock-out during a labor dispute and change
the credit-week definition to 20 times the hourly minimum wage. With
Republicans in control of the House and the Senate as well as the Executive
Branch, the proposal does not enjoy a high likelihood of passage.

UNEMPLOYMENT STEADY FOR FEBRUARY

Unemployment in Michigan neither climbed nor declined in February, according
to the Department of Career Development. Unemployment held steady at 4.5
percent, with both employment and the size of the workforce increasing.
Michigan followed the national trend, as unemployment across the country
remained steady at 4.2 percent. February was only the second month in six
years that state unemployment was above the national average.

HEAVY FAVORITES WIN SPECIAL ELECTIONS

The clear favorites emerged the victors in Tuesday’s special elections. Rep..
Valde Garcia (R-St. Johns), former Rep. Martha Scott (D-Highland Park) and
Republican County Commissioner Leon Drolet could be sworn-in to their new
positions as early as next Tuesday. A special election to fill Garcia’s
vacant House seat will be called by Governor John Engler. Garcia makes
history as the first Hispanic elected to the Michigan Senate.

PHARMACY BUDGET STALLED REMAINS

The Department of Community Health budget, which contains the Medicaid
budget, always produces some of the most contentious and protracted budget
debate. This year is proving to be no different, as the House Community
Health Subcommittee on Appropriations has still not sent the bill to the
full Appropriations Committee. Several other budgets have been approved on
the House floor and referred to their Senate subcommittees.

The pharmacy aspect of the Medicaid budget is still in the throes of the
battle. Subcommittee Chair Mickey Mortimer (R-Horton) has given MRA ample
assurances that pharmacies’ concerns will be taken care of before the bill
is moved. The dispensing-fee language has not yet been changed to reflect
last year’s language, however, and pressure still needs to be applied to
committee members. MRA and other pharmacy groups are waging an aggressive,
cooperative campaign to secure our changes.

New Majority Counsel has Retail Roots

Speaker Rick Johnson (R-LeRoy) recently appointed James Holcomb as Majority
Counsel for the House Republican Policy Office. Most recently, Holcomb was
an attorney with the Howard and Howard law firm in Bloomfield Hills and
Lansing. In that role, Holcomb also served as a "facilitator" in Michigan
for Rite Aid Corporation. Holcomb’s knowledge of issues relevant to pharmacy
and the retail community should be helpful in this important role in the
Speaker’s Office.

GOVERNOR NAMES NEW COMMUNICATIONS DIRECTOR

John Truscott recently departed as Gov. Engler’s spokesperson after 10 years
in that position to form his own consulting service in Lansing. Gov. Engler
has named Susan Shafer acting communications director and press secretary to
fill the void. Shafer has served as deputy press secretary since 1999 and
previously was director of communications for the Michigan Jobs Commission.

KEY BILL INTRODUCTIONS:

SB 353, sponsored by Sen. John Schwarz (R-Battle Creek), to amend the Single
Business Tax by revising the formula used in determining tax base; provides
revisions to capital acquisition deduction.

HJR N, sponsored by Rep. Wayne Kuipers (R-Holland), to require a concurrence
of 3/5 of the members of each house to impose or modify certain taxes.

HB 4506, sponsored by Rep. Paul Wojno (D-Warren), to require telephone
solicitors to use a registry; provides procedures for use.

HB 4507, sponsored by Rep. Larry De Vuyst (R-Alma), to revise the Tax Act by
clarifying the procedures for exemption from paying sales tax on rental or
lease of tangible personal property.

HB 4512, sponsored by Rep. Kuipers, to amend the Worker’s Disability
Compensation Act by revising the conditions for mental disability and
favored work claims.

HB 4491, sponsored by Rep. Scott Shackleton (R-Sault Ste. Marie), to revise
the School Code to eliminate the sunset on the provision that establishes
the Friday before Labor day as a holiday for schools.

HB 4497, sponsored by Rep. Mark Schauer (R-Battle Creek), to amend the
Single Business Tax Act by revising the formula used in determining tax
base; provides revisions to capital acquisition deduction.

SJR P, sponsored by Sen. Glen Steil (R.-Grand Rapids), to extend term limits
for certain government employees and officers.

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.