KEY LEGISLATION:

SECURITY GUARD LEGISLATION INTRODUCED

Four bills further regulating the private security guard profession were
introduced late this week. SB’s 420, 421, 425 and 426 creates a commission
to establish more stringent minimum standards for security guards, as well
as increasing the costs for private security firms for licensure. The
package also includes language requiring security guards who carry a pistol
to pass a certified training program commensurate with the program required
of individuals seeking a carrying concealed weapons (CCW) permit.

The sponsors of the legislation, Sens. Gary Peters (D-Pontiac) and Phil
Hoffman (R-Jackson), have indicated their desire to move the bills along at
a rather brisk pace. Hoffman was recently quoted in several publications
that he would like to see the bills enrolled by the legislative Summer
Recess. MRA has met with Hoffman about the proposal on several occasions,
and has indicated a willingness to work with him to ensure that retail
businesses as a whole are not unjustly penalized for a few unfortunate
incidents involving possible excessive force of security guards.

Upon reading the introduced legislation, it is the opinion of MRA that only
those businesses that hire private security guards from a firm on a
contractual basis are included. Currently an employee of a business that
fulfills asset protection responsibilities is not covered under the Private
Security Guard Act of 1968, which the legislation seeks to amend. It has
been determined however, that several retail businesses in Michigan do
contract with outside firms to fulfill their asset protection needs. MRA is
in the process of assessing the fiscal implications such a law would have on
those businesses. MRA will use that, and additional information, to assess
how to proceed in the best interests of the retail community in Michigan.

REMOTE COLLECTION OF SALES TAX IS ON THE RADAR SCREEN

Michigan is in the process of streamlining the collection of sales and use
tax in order to better collect on out-of-state Internet and catalog sales.
The Department of Treasury has estimated that the state is losing between
$150 million and $180 million in revenue per year because of uncollected
sales/use tax. The issue also adversely affects retailers in Michigan who
must compete at a 6% disadvantage with an out-of-state company that is not
collecting sales tax.

A joint House-Senate committee was convened Thursday to hear remarks from
both the National Council of State Legislatures (NCSL) and the Michigan
Department of Treasury on the issue of remote sales tax collection. NCSL has
been working on the issue for the last several years, and stresses the
importance of states streamlining, or simplifying their tax collection
procedures to ensure that a national coordinated policy and protocol can be
developed. Treasury testified that the state is working on getting
technology to retailers who do sales via catalogues and the Internet so they
can easily collect use tax. NCSL stated that because each state has their
own tax structure, having them work in tandem with one another is vital.
Some states have many different taxing jurisdictions, with the state as well
as local units of government charging sales tax on goods or services. By
contrast, Michigan currently has a relatively simple system, and would not
have to change too much to be in compliance with a national system. Simply
having Michigan pass legislation simplifying their tax structure would not
solve the problem. At least 36 states have to adopt the national protocol
and meet its guidelines before it would take effect.

FORMER MAJORITY FLOOR LEADER RUNNING FOR CONGRESS

Representative Andrew Raczkowski (R-Farmington Hills) has thrown his hat in
the ring for U.S. Congress, officially forming a committee to run. With
redistricting occurring this fall as a result of the 2000 census, Raczkowski
expects that a newly created congressional district will be favorable to him
geographically. There is fairly broad consensus within the capitol that the
new district will be comprised of southern Oakland and western Wayne
counties.

Because the district could be carved out of the ones now in three current
districts, other Republican candidates like Sen. Thaddeus McCotter
(R-Livonia) and Paul Welday, aide to U.S. Rep. Joe Knollenberg (R-Bloomfield
Hills) could also choose to enter the contest. Raczkowski was Majority Floor
Leader last session, but lost that privilege after losing a close battle for
Speaker of the House.

KEY BILL INTRODUCTIONS:

SB 416, sponsored by Sen. Beverly Hammerstrom (R-Temperance), to revise the
Public Health Code by requiring pharmacists to print the actual cost of
prescriptions, in addition to the copayment, on the receipt.

HB 4643, sponsored by Rep. Raymond Basham (D-Taylor), to revise the Workers
Disability Compensation Act by providing a penalty for employers who do not
furnish workers compensation information to a claimant upon request.

HB 4648, sponsored by Rep. Nancy Quarles (D-Southfield), to revise the
Persons With Disabilities Civil Rights Act by defining the failure to
provide equal compensation for comparable work as a violation.

HB 4649, sponsored by Rep. Quarles, to revise the Civil Rights Act by
defining the failure to provide equal compensation for comparable work as a
violation.

HB 4650, sponsored by Rep. Gerald Van Woerkom (R-Norton Shores), to revise
the Social Welfare Act by enacting the Federal WorkIncentives Improvement
Act to allow continued insurance coverage for the working disabled.

HB 4657, sponsored by, Rep. Glenn Anderson (D-Westsland), to require food
service establishments to disclose automatic gratuity charge or service
charge on bills and menus.

HB 4658, sponsored by Rep. Anderson, to revise the Worker’s Disability
Compensation Act by prohibiting the reduction of benefits for employees for
which the reduction would cause extreme financial hardship.

HB 4661, sponsored by Rep. Patricia Godchaux (R-Birmingham), to revise the
Civil Rights Act by including disability and sexual orientation as protected
categories.

HB 4607, sponsored by Rep. Andrew Raczkowski (R-Farmington Hills), to revise
the Insurance Code of 1956 by creating a uniform drug information card.

SB 425, sponsored by Sen. Phillip Hoffman (R-Horton), to revise the Private
Security Business and Security Alarm Act by increasing training procedures
and regulations for private security guards.

SB 426, sponsored by Sen. Hoffman, to revise the Commission on Lax
Enforcement Standards Act by providing training standards for security
guards.

SB 420, sponsored by Sen. Gary Peters (D-Bloomfield Twp.), to revise the
Private Security Business Alarm Act by providing training procedures for
private security guards and creating as advisory commission.

SB 421, sponsored by Sen. Peters, to revise the Private Detective License
Act by providing training requirements for detectives acting as security
guards.

SB 424, sponsored by Sen. Martha Scott (D-Highland Park), to revise the
Income Tax Act by providing for health care premium tax credits.

HB 4558, sponsored by Rep. Ken Daniels (D-Detroit), to prohibit insurance
agents from requiring the use of a particular auto repair service; requires
payment at market price..

HB 4571, sponsored by Rep. Patricia Birkholz (R-Saugatuck), to create the
coordinated planning act.

HB 4572,4573,4574 sponsored by Rep. Randy Richardville (R-Monroe), Rep.
Patricia Lockwood (D-Fenton),Rep. Andrew Richner (R-Grosse Pte Prk), to
require city, village and county zoning to be based on the plan under the
coordinated planning act.

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:
Kathleen Wilson, Administrative Assistant to the Governmental Affairs Office at
kawilson@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.