KEY LEGISLATION:

STREAMLINED SALES TAX MAY WAIT UNTIL FALL

The office of Representative Nancy Cassis (R-Novi) has told MRA that Cassis
is thinking of holding off on committee hearings regarding streamlined sales
tax legislation (SB 433) until after summer break. The delay will give House
Republican research analysts time to thoroughly inspect and resolve minor
problems with the bill.

The Michigan Chamber of Commerce, along with several of its regional groups,
has held up the bill because of various concerns with the measure. MRA is
actively working with Rep. Cassis and the bill sponsor, Senator Joanne
Emmons (R-Big Rapids), to ensure that passage does occur and that the final
legislation is favorable to retailers doing business in Michigan, especially
those based in the state.

SENATE ALLOWS OIL DRILLING IN GREAT LAKES

On a party-line vote, Senate Republicans Wednesday approved procedures to
permit directional oil and natural gas drilling under the Great Lakes. While
public opinion polling has consistently shown opposition to such a move,
Senate Majority Leader Dan DeGrow (R-Port Huron) argued that there is no
scientific basis for opposing this type of drilling.

Directional drilling would only be allowed if several safety conditions are
met. Among these are requirements that a well be at least 1,500 feet from
the high-water mark, that wells not be visible from residential or
recreational lands and that a well not go into a critical dune area.

The provisions came in the form of an amendment to the Department of
Environmental Quality Budget. All budgets will be going to conference
committees to resolve differences between House and Senate versions.

JAYE EXPULSION LEAVES STALLWORTH FATE
HANGING IN BALANCE

Sen. Dave Jaye was expelled last week for a pattern of behavior contrary to
proper Senate conduct, even though he was not indicted for a felony. This
action may have caused many House members to begin questioning the fate of
Rep. Keith Stallworth (D-Detroit). Stallworth is facing felony charges for
allegedly filling out paperwork for a driver’s license and voter registration
in his brother’s name. The Attorney General’s office now says
it suspects the motive may have been for money laundering related to his
former—and possibly continued—ownership in a Detroit strip club.

House leaders are in no rush to talk about expulsion for Stallworth, however.
Both Speaker Rick Johnson and Minority Leader Kwame Kilpatrick have
gone on record stating they will wait and see if Stallworth is convicted of
a felony before investigating the matter any further.

CHALLENGER FOR LEVIN STILL ON GOP TO-DO LIST

Two potential challengers to Democratic U.S. Sen. Carl Levin have backed out
of the running. Dan Pero, former campaign consultant to Governor Engler and
current political consultant, recently decided not to throw his hat into the
ring, citing a desire to spend more time with his wife and children. Lisa
Ilitch Murray, another possible contender, also cited family and personal
obligations as her rationale not to enter the race.

The two join a long list of potential candidates who, for one reason or
another, decided not to challenge the powerful Democratic incumbent.
Republican officials are maintaining a positive spin on the situation, but
some observers note that Levin continues to gain momentum as a result of
each publicly interested GOP rival who drops from the race.

MICHIGAN CAN ATTRACT SERVICE-SECTOR
BUSINESSES, STUDY FINDS

A new business-climate study released at the Detroit Regional Chamber of
Commerce Leadership Policy Conference shows Michigan has strong potential
to attract service-sector businesses from other areas of the country. A big
reason is that wages in Michigan’s service sector are lower than in most
competing regions, especially high-tech areas such as Fairfax County in
Virginia and Route 128 in Massachusetts. The report was prepared for the
Michigan Economic Development Corporation by Anderson Economic Group
of Lansing.

The annual gathering on Mackinac Island draws key business and political
leaders from southeast Michigan and around the state. MRA’s Larry Meyer,
Eric Rule and Tom Scott were among those attending the conference.

KEY BILL INTRODUCTIONS:

SB 499 sponsored by Sen. Dale Shugars (R-Portage), to eliminate provision o
group health insurance relation to people 65 or older.

HB 4809 sponsored by Rep. Marc Shulman (R- West Bloomfield), to revise
liability involving offer and refusal of favored work.

HB 4808 sponsored by Rep. Judith Scranton (R-Brighton), to assess mobile
homes as real property for property tax purposes.

SB 507 sponsored by Sen. Burton LeLand (D-Detroit), to create "gas tax
holidays" by designating certain time periods as fuel-tax free.

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.