KEY LEGISLATION:

Telemarketing Legislation Poised to Move in Senate

A bill in the Michigan Senate would create a statewide "Do Not Call" list to
combat unwanted telemarketing calls to Michigan consumers. Senate Bill 153,
introduced by Sen. Glen Steil (R-Grand Rapids), would allow Michigan
residents to add their names to the list, which would be maintained by the
Michigan Public Service Commission.

This bill could have a devastating effect on Michigan retailers and their
ability to promote their products and services by telephone. The group
behind the legislation is the AARP, which claims the bill would combat
fraudulent telemarketers who scam the elderly. Interestingly enough, the
AARP reportedly has been selling its list of members for years and pocketed
approximately $16 million last year from that practice.

MRA is working with other business groups to either amend the bill to
retail’s satisfaction or prevent its passage. Retailers are urged to contact
Senate Majority Leader Dan DeGrow to voice their opposition to the bill to
be taken up by the Senate Technology and Energy Committee. Sen. DeGrow
can be reached at 517.373.7708 or degrow@senate.state.mi.us.

Slowing Economy Prompts Tax Cut Proposal

The Senate Fiscal Agency is painting a bleak picture of Michigan’s and the
nation’s economy. According to a report released this week, state general
fund revenues this fiscal year will decline 2.7 percent from the fiscal year
that ended September 30. The report noted, however, that the state’s economy
is expected to grow slightly during the fiscal year as consumers begin
responding to economic stimuli provided by the federal government.

In a well-timed press conference, a group of Republican lawmakers announced
plans to introduce tax-cut legislation to help strengthen the sluggish
economy. Their proposal includes accelerating rollbacks of the income and
single business taxes, cutting the real estate transfer tax and the
unemployment compensation tax and changing the tax basis on
telecommunications property.

In a nutshell, the package would do the following:
• Cut state spending in the current fiscal year by 5 percent;
• Move up the effective date of the 2002 income tax rate rollback, making
the 4.1 percent rate effective October 1, 2001;
• Move up the SBT rate cut date to October 1;
• Cut the state’s real estate transfer tax from the current $3.75 per $500
of home value to $2.50;
• Cut the state’s unemployment insurance trust fund taxes by reducing the
wages tax base rate from the first $9,500 a worker earns to the first
$7,000; and
• Change the tax base on telecommunications property from an intangibles
basis to a personal property basis, which would allow those companies to
claim the depreciated intangible base.

House Members Announce Campaign Plans

With redistricting and term limits both playing a major role in next year’s
elections, Michigan representatives with time left on their House terms are
being forced to weigh the pros and cons of keeping their current seats
versus making the jump to the Senate. Twenty-seven of the 38 senators are
term-limited, leaving plenty of openings for House members. Add
redistricting to the mix, and members from the same party may be squaring
off against each other in bare-knuckle primaries.

This week Rep. Clark Bisbee (R-Jackson) announced he wouldn’t run against
fellow Republican Mickey Mortimer (R-Horton) for the 19th Senate district,
in what would have been a knock-down fight. Bisbee is still eligible for
another House term. Rep. Larry Julian (R-Lennon) also announced he would
seek re-election to his final House term instead of running against Sen.
Valde Garcia (R-St. Johns) for the 22nd Senate district.

On the other hand, Rep. Mike Kowall (R-White Lake) announced his intention
to run for the 15th Senate district, potentially pitting him against House
Tax Policy Chair Nancy Cassis (R-Novi) and House Appropriations Chair
Marc Shulman (R-West Bloomfield).

KEY BILL INTRODUCTIONS:

HB 5182, sponsored by Rep. Wayne Kuipers (R-Holland), to exempt
installation, maintenance or servicing of lawn irrigation equipment and
landscape lighting from license requirements.

HJR R, sponsored by Rep. Robert Gosselin (R-Troy), to amend constitution to
require three-quarter supermajority vote of Legislature to approve tax
increases.

HB 5212, sponsored by Rep. Randy Richardville (R-Monroe), to create same
"good faith" acceptance of use tax exemption certificate as sales tax.

HB 5224 sponsored by Rep. Rose Bogardus (D-Davison), to provide health
insurance coverage for ectodermal dysplasis.

HB 5225 sponsored by Rep. Bogardus, to provide Blue Cross/Blue Shield
coverage for ectodermal dysplasis.

HB 5238 sponsored by Rep. Leon Drolet (R-Clinton Twp.), to exempt up to
$250,000 in computer equipment from property tax for businesses that
generate 50 percent of their revenue from Internet commerce.

HB 5239 sponsored by Rep. Andrew Raczkowski (R-Farmington Hills), to
regulate the servicing , repair and maintenance of appliances.

HB 5243, 5244. 5245, 5246. 5247 sponsored by Rep. Keith Stallworth
(R-Detroit), to limit electronic fund, bank, credit union, saving, savings
and loan transfer fee to $1.50; requires notification of A.T.M. fees

HB 5248 sponsored by Rep. Stallworth, to increase cigarette tax; modifies
distribution.

HB 5249 sponsored by Rep. James Koetje (R-Grandville), to prohibit
destruction of agricultural property to intimidate or harass.

HB 5260 sponsored by Rep. Tom George (R-Portage), to eliminate official
prescription program; establishes reporting system for the monitoring and
prescribing of schedule two controlled substances.

HB 5261 sponsored by Rep. Paul DeWesse (R-Williamston), to establishes pain
management education and controlled substances antidiversion fund; abolishes
official prescription form program fund.

HB 5262 sponsored by Rep. Stephen Ehardt (R-Lexington), to allow electronic
version of prescription forms.

HB 5267 sponsored by Rep. Patricia Birkholz (R-Saugatuck), to require notice
to other jurisdictions of adoption of municipal plans.

HB 5268 sponsored by Rep. Patricia Birkholz, to create pilot project for
development rights market program.

HR 233 sponsored by Rep. Joanne Voorhees (R-Wyoming), to urge Congress to
amend federal laws and regulations to address the issue or unopened
prescription medications recovered from deceased patients.

HB 5293 sponsored by Rep. Ruth Ann Jamnick (R-Kentwood), to require
verification of social security numbers before use in Consumer Protection
Act.

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.