KEY LEGISLATION:

LEGISLATURE HURRIES TO WRAP UP FOR SUMMER

Members of the Michigan House and Senate are feverishly working on
last-minute agenda items and trying to wrap up state budgets in an attempt
to adjourn for the summer before the July 4 holiday. Budgets pose the
biggest challenge, since most of them must go to a conference committee to
clear up differences between the two chambers.

Lawmakers are expected to finish by June 28 at the latest, although they may
have to come back for a few days to take care of time-sensitive business not
completed earlier. After that, they are not expected to reconvene until
sometime in September.

ATTORNEY GENERAL TO SUE CIRCUIT CITY
OVER RAIN CHECKS

Retailers in Michigan beware. Attorney General Jennifer Granholm has said
that the Consumer Protection Act does not allow exceptions to be made for
rain checks on limited-quantity sales or clearance sales.

Granholm threatened Circuit City with a lawsuit over alleged failure to
issue rain checks on specially advertised sale items not in stock. She said
the practice amounted to luring customers into the store with advertising
for bargain items and then relying on customers to pay more money for a
substitute product.

Circuit City has 10 days to reach a settlement with the A.G.’s office. Otherwise,
the office will sue to force compliance and levy civil penalties.

SENIOR PRESCRIPTION PLAN ADMINISTRATOR NAMED

First Health Services Corporation has been chosen by the Department of
Community Health to manage the new Elder Prescription Insurance Coverage
(EPIC) program. First Health is already the pharmacy benefits manager for
the Medicaid program and administers online adjudication of Medicaid claims.
EPIC takes effect October 1, 2001, and will provide prescription drug
benefits for low-income seniors who are not eligible for Medicaid.

In other pharmacy-related news, conferees for the Community Health budget,
which contains the Medicaid budget, should be named early next week. The
conference committee is expected to meet within the next two weeks.

Conversations with possible conferees and the subcommittee chairs indicate a
willingness to resolve MRA’s concerns regarding a reduction in the Medicaid
dispensing fee and an increase in the copay. Success may depend on the
ability to find additional sources of revenue to make up for the lost
savings from the proposed changes.

HUMMEL WINS 86TH DISTRICT HOUSE PRIMARY

Scott Hummel is virtually guaranteed to be the next state representative for
the 86th District after he easily won the GOP primary Tuesday. A Clinton
County commissioner from DeWitt, Hummel reportedly captured 43.4 percent of
the vote, routing the other five candidates in the race. The district is
considered one of the most conservative in the state, and Roger Sosebee, the
Democratic candidate, faces extremely long odds of scoring an upset in the
general election to be held July 10.

PREVENTION MAY BE BEST WEAPON
AGAINST SHOPLIFTING

A new survey of 30 leading retailers in Florida indicates that deterrence,
not confrontation, may be the best way to reduce shoplifting losses,
especially in light of recent altercations between store security guards and
suspected shoplifters in Michigan.

While arrests of shoplifters are down 3 percent for the retailers surveyed,
recovery of merchandise is up 28 percent, according to Jack L. Hayes
International, a loss-prevention consulting company based in Florida.

Hayes attributes much of the success to new loss-prevention strategies. Many
of the stores are using non-confrontational tactics to recover or prevent
loss of merchandise rather than risk violent encounters inside stores.
Storefront greeters, highly visible loss-prevention personnel and uniformed
security guards are being utilized to discourage shoplifters.

KEY BILL INTRODUCTIONS:

HB 4861, sponsored by Rep. Marc Schauer (D-Battle Creek), to establish
do-not-call register for professional fund-raisers.

HB 4862, sponsored by Rep. Samuel Thomas III (D-Detroit), to establish
do-not-call register for public safety solicitation.

HB 4863, sponsored by Rep. Ken Bradstreet (R-Gaylord), to establish
do-not-call register for charitable organizations.

HB 4875, sponsored by Rep Tony Stamas (R-Midland), to revise employment
restrictions for minors 16 years of age or older.

SB 527, sponsored by Sen. Shirley Johnson (R-Royal Oak), to establish
on-line ordering system for retail licensees placing orders for spirits with
authorized distribution agents.

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.