KEY LEGISLATION:

STREAMLINED SALES TAX BILL SIGNED BY GOVERNOR

Gov. John Engler signed HB 5080 into law Friday, October 5. The streamlined
sales tax bill now becomes Public Act 122 of 2001. Enacting the bill allows
Michigan to participate in the governing board responsible for coordinating
taxing definitions and decisions to be sent back for states’ approval.

The first planning session of the multistate coalition will be held in
Hawaii next week. Sen. Joanne Emmons (R-Big Rapids), a champion of the bill,
will take part in the negotiations and will be absent from next week’s
legislative session as a result.

PHARMACY ADVISORY COMMITTEE CREATED

In an effort to save money in the budget, the Department of Community Health
will have the assistance of a Pharmacy Advisory Committee to give advice on
pharmaceutical policies. In a meeting with MRA and chain drug
representatives, Bob Smedes, medical services director, indicated he has
been instructed by the governor to cut $42 million out of next year’s budget.

Created by executive order, the Michigan Pharmacy and Therapeutics Committee
will recommend prescription drug coverage programs to the department and
suggest guidelines for deciding what drugs would be covered. The 11-member
committee will include six physicians, four pharmacists and one department
representative. Appointees will serve two-year terms.

BILL WOULD REMOVE SBT ON HEALTH CRE BENEFITS

Legislation has been introduced to eliminate the Single Business Tax on the
cost of employer-provided health care benefits. SB 480, introduced by Sen.
Shirley Johnson (R-Royal Oak), is expected to be taken up by the Senate
Health Policy Committee on October 23.

Johnson said taxing employers on spending for employee health benefits
creates a disincentive to providing these benefits. "By eliminating this tax
burden, we will be providing new opportunities for job growth and progress
in this state," said Johnson.

The Michigan Department of Treasury is expected to oppose the legislation,
as it would have a negative fiscal impact on the state. In the current
economy, any legislation with a price tag has been "persona non grata" in
the legislature.

COMMITTEE CONSIDERS LAND USE PLANNING BILL

Confusion among developers and local governments about land use planning
regulations has led one lawmaker to introduce legislation combining all of
the state’s land use planning regulations into a single act. Rep. Patty
Birkholz (R-Saugatuck) says she sponsored HB 4571 as a result of realtors
and builders complaining about the lack of consistency and predictability.

Under the bill, counties, cities, villages and townships would all use the
same process for developing plans. Planning experts took the opportunity
to complain that the current planning laws are cumbersome and don’t work
well together.

Realtor and business groups generally applaud the concept but feel the bill
gives too much authority to local governments to plan development, as
opposed to allowing the market to guide where development should occur.
Officials with several local government groups decried the lack of funding
to support implementation of the legislation. The bill remains before the
House Local Government and Urban Policy Committee.

KEY BILL INTRODUCTIONS:

SB 696, sponsored by Sen. Bill Bullard, Jr. (R-Highland Twp.), to provide
$1,000.00 exemption from personal property tax.

HB 5155, sponsored by Rep. Michael Bishop (R-Rochester), to enact sentencing
guidelines for price gouging during state of emergency or disaster.

HB 5156, sponsored by Rep. Mike Kowall (R-White Lake), to provide penalties
for price gouging during state of disaster or emergency.

HB 5158, sponsored by Rep. Stephan Ehardt (R-Lexington), to allow health
care providers and health facilities to refuse to participate in health care
services for due to ethical, moral or religious objection.

For back issues of Capitol F@cts on-line visit MRA's web site at 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
www.retailers.com
www.mallofmichigan.com

Click here to find more information about any of the bills referenced above.