KEY LEGISLATION:

Bill Would Require Letter Rulings to be Published

HB 5330, sponsored by Rep. Nancy Cassis (R-Novi), seeks to require
publication of "letter rulings" issued by the Department of Treasury. The
bill was reported from the House Tax Policy Committee on Wednesday. MRA was
present at the hearing and publicly endorsed the legislation, which would
ensure that all taxpayers are aware of Treasury rulings issued on individual
cases. There would be a small fee to receive these rulings, to cover
printing costs.

The bill is a result of subcommittee meetings held by the Tax Policy
Committee regarding tax simplification. Requiring the letter rulings (as
well as revenue administrative bulletins) to be published is expected to
make the tax system fairer and simpler and encourage greater consistency
from the department in response to taxpayers. The bill now goes to the House
for its consideration.

Price Gouging Bills Introduced in Wake of Tragedies

Two bills to prohibit price gouging during times of national or state
emergency have been introduced in the House. HBs 5155 and 5156 would make it
a felony to raise the price of essential commodities, goods or services more
than 10 percent during a national, state or local emergency or time of
crisis, or within 180 days of a declaration of a state of emergency. The
penalty for such an offense is imprisonment of up to five years or a $20,000
fine. The bills apply to products such as food or drink for human or animal
consumption, flashlights, batteries, pharmaceuticals, lumber, etc.

The bill does provide an affirmative defense to prosecution for an increase
in price attributable to additional costs imposed on the seller from the
supplier. MRA has discussed the bill with both Speaker of the House Rick
Johnson (R-LeRoy) and the bill sponsor, Rep. Mike Kowall (R-White Lake).
Both say this legislation is not meant as a price-setting mechanism and
added that they don’t foresee plans to move the bill in the near future.
Kowall also indicated that any recommendations necessary to accommodate the
needs of retail would be welcome.

Pharmacy Proposals on the Move

Three separate packages of bills affecting pharmacy are making their way
through the Michigan Legislature. One proposal seeks to ease the pharmacist
and health professional shortage in Michigan by easing the requirements for
Canadian health professionals to practice in the state. HB 4994 would amend
the Public Health Code to extend reciprocity to applicants who were licensed
to practice a health profession (including pharmacy) in a province of
Canada. The policy would be in effect until January 1, 2004. This bill was
reported favorably from the House Health Policy Committee on Tuesday.

Another package is aimed at giving patients with intractable pain greater
access to controlled substances to alleviate that pain. The bills seek to
eliminate the state’s Official Prescription Program and would instead
require the Department of Community Health to monitor utilization of all
schedules of controlled substances with an electronic reporting system
through the dispensing pharmacy. These bills were also passed from the
Health Policy Committee last week and passed in the House on Thursday.

In a workgroup on the bill, MRA raised concerns about costs associated with
the program being passed on to pharmacy. The version that passed the House
includes language stating that any new program to implement an electronic
reporting system will not result in a new fee to pharmacy. The bill is now
being held up to deal with the issue of "tamper-resistant" prescriptions,
which was part of language added by pharmacy to address forgery of
prescription forms.

The health care conscience clause bill (HB 5158), which would let medical
workers opt out of procedures to which they are morally opposed, is still
being worked on prior to bringing it up for a vote in committee. MRA has met
with the bill’s sponsor regarding limitations the bill would place on
employers. It appears likely that significant changes can be made to
alleviate many of chain pharmacy’s concerns with the bill.
A conference call will be held on Monday to discuss these issues further.
For more information on the conference call, please contact Eric Rule at
517.372.5656.

Labor Day Holiday Extension Likely to Continue Indefinitely

Legislation eliminating the sunset on a provision that establishes the
Friday before Labor Day as a holiday for schools is close to final passage.
HB 4491, introduced by Rep. Shackleton (R-Sault Ste. Marie), is on third
reading in the Senate. Passage in the Senate could come as early as next
week, after which it would be forwarded to the governor for his anticipated
signature.

Fire Safety Bills Introduced

MRA has partnered with Flagstar Bank to help assure passage of bills
promoting fire safety. The bills include exempting the sale of fire
extinguishers, fire alarm systems and fire suppression equipment from sales
tax. In addition, individuals will be exempt from paying a use tax on the
purchase, storage or use of fire extinguishers, fire alarms and fire
suppression systems.

Legislature to Take Thanksgiving Break

The House adjourned for Thanksgiving break Thursday, November 1, and will be
out until November 27. The Senate will adjourn November 8 and also return on
the 27th.

KEY BILL INTRODUCTIONS:

HB 5310, sponsored by Rep. Patricia Birkholz (R-Saugatuck), to limit
reduction of benefits for persons receiving social security only.

HB 5312, sponsored by Rep. Alan Sanborn (R-Richmond), to eliminate
requirement for certain health insurance liability claims.

HB 5330, sponsored by Rep. Nancy Cassis (R-Novi), to require publication of
letter rulings.

HB 5366, sponsored by Rep. Barb Vander Veen (R- Allendale), to include oil
change facilities in Motor Vehicle Service and Repair Act.

HB 5350, sponsored by Rep. Paul DeWeese (R-Willianston), to sanction failure
by a health professional to report suspicion a patient is receiving
inappropriate medication; sanction s misprescribing phyisican.

HB 5351, sponsored by Rep. Judith Scraton (R-Brighton), to include penalty
prohibiting driver license eligibility until age 21 for false bomb threats
by children under age 16.

HB 5338, sponsored by Rep. Bruce Patterson (R-Canton), to increase penalties
and enact sentencing guidelines for false reports of harmful substances or
devices.

HB 5377, sponsored by Rep. Gary Woronchak (R-Dearborn). to require
registration of contact lens providers and prescription requirements for
contact lenses.

HB 5378, sponsored by Rep Steve Ehardt (R-Lexington), to require
registration of contact lens providers and prescription requirements for
contact lenses.

HB 5379, sponsored by Rep. Artina Hardman (D-Detroit), to require contact
lens providers to record information related to the sale of contact lenses.

HB 5380, sponsored by Rep. David Mead (R-Frankfort), to amend scrap tire
regulation.

HB 5381, sponsored by Rep. Mead, to eliminate sunset on title transfer fee
for Scrap Tire Regulatory Fund; increases fee.

HB 5402, sponsored by Rep. Leon Drolet ( R-Clinton Twp.), to allow income
tax deduction for self-employment taxes paid.

HB 5403, sponsored by Rep. Gary Newell (R-Sarnac), to include compensation
attributable to leased officers in single business tax base.

HB 5424, sponsored by Rep. Dave Woodward (D-Madison Heights), to prohibit
predatory lending practices.

HB 5435, sponsored by Rep. Ruth Johnson (R-Holly), to enact Consumer Credit
Privacy Act.

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.