KEY LEGISLATION:

PHARMACY BUDGET ISSUES RESOLVED
IN INDUSTRY’S FAVOR

The Department of Community Health budget passed out of conference committee
on Thursday with changes to the language addressing pharmacy’s concerns. As
passed, the language restores the pharmacy dispensing fee for Medicaid
fee-for-service prescriptions to $3.77. The language also decreases the
copay for generic medications from $1.00 to $.50 and raises the copay for
brand name drugs from $1.00 to $3.00. This change could have been disastrous
for pharmacies had we not been able to get language included in the bill
reimbursing pharmacies for any lost copay resulting from a patient being
unable to pay that amount.

There were some questions as to whether or not the change in the copay was
legal. These concerns were addressed by including language returning the
copay to the previous budget’s level of $1.00 for all prescriptions if it is
found that this section violates federal law. As passed, the language is an
improvement over last year’s budget because it may allow pharmacies to be
reimbursed for uncollected copays.

LAST-MINUTE PUSH NEEDED BY RETAILERS
ON SALES TAX FAIRNESS

SB 433, the legislative effort to simplify the collection of sales tax and
put brick-and-mortar retailers on a level playing field with remote sellers,
has hit a snag in the approval process. After passing the Senate and being
referred to the House Committee on Tax Policy, the bill has received one
hearing with no further action scheduled by the committee chair. Retailers
must take immediate action in order to remove the current 6-percent
competitive advantage currently enjoyed by remote sellers and in order for
Michigan to be at the negotiating table as states work together to
streamline sales tax laws.

A quick phone call to Committee Chair Rep. Nancy Cassis (R-Novi) should help
ensure passage of this important legislation. When callling, retailers
should be succinct and stick to the message, urging Rep. Cassis to schedule
a committee vote on SB 433 in time to ensure passage before the summer
recess. Retailers should also mention that it is unfair that local
businesses, which contribute to the state and local economy, are required to
collect sales tax on purchases while remote sellers are not.

Rep. Cassis can be reached at 517.373.0827. Please contact her as soon as
possible, as time is of the essence.

BOTTLE BILL EXPANSION THREAT NEEDS
RETAILER ATTENTION

Since the passage of the Michigan Bottle Return Law in 1976, Michiganians
have grown to love this law, viewing it as an effective, easy way to keep
our state free of excess litter. Those Michigan retailers, however, who were
forced to accept returned beer and pop cans in their stores and expend
additional time and money collecting them have had to grin and bear it. Now
the Michigan United Conservation Club and other consumer groups are seeking
an expansion of the law to include water and juice containers.

An expansion of the current law would be extremely burdensome and perhaps
disastrous to retailers selling these products. The proposal would include
any water or juice container less than a gallon in size. Retailers who
currently collect bottle deposits know that such an expansion of the law
would be monumentally costly to implement and administer.

MRA participates in the Michigan Recycling Partnership (MRP), a group
consisting of retailers, wholesalers and distributors, as well as the beer
and wine and soft drink industries. MRP has been actively examining ways to
prevent any expansion, or possibly even change the current law to remove
bottle and can recycling from the retail setting completely. MRP is working
to halt a legislative expansion and keep the issue off the ballot. It is in
retailers’ best interests to get involved in this effort and support MRP’s
efforts. To find out more information on how you can help, please contact
Eric Rule at MRA at 517.372.5656 or by e-mail at errule@retailers.com

LEGISLATURE GONE FOR HOLIDAY

The House and the Senate will not meet at all during the Fourth of July
week. Lawmakers will return on the 10th and resume passage of remaining
budgets and the controversial redistricting plan. House and Senate leaders
anticipate leaving for the summer by the end of July and returning about the
second week of September.

KEY BILL INTRODUCTIONS:

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.