KEY LEGISLATION:

Telemarketing bills would restrict retail

A package of bills in the Michigan Senate seeks to combat unwanted
telemarketing calls to Michigan consumers by creating a statewide "Do Not
Call" list and requiring various disclosures from telemarketers. Michigan
residents could request to have their names added to the list, which would
be maintained by the Michigan Public Service Commission.

Before the House passed the bills, MRA secured several amendments to provide
exemptions for companies that have a prior business relationship with the
customer or that have fewer than 25 employees.

The Senate Technology and Energy Committee passed the House version of the
bills without any further amendments. Intense lobbying by MRA helped prevent
passage of a substitute bill eliminating the protections for retailers.

The Association will seek to address additional concerns of retailers and
other business interests when the bill is considered on the Senate floor.

MRA fights onerous scrap tire bill

Lawmakers have revived a proposal from last year to impose additional
record-keeping duties on retailers for disposal of scrap tires.

House Bill 5380, sponsored by Rep. David Mead (R-Frankfort), would require
retailers to complete a manifest for every load of scrap tires hauled from
their site. The responsibility would fall on retailers to make sure the
tires reach an appropriate destination. In addition, the bill would allow
warrantless searches of retail establishments for possible violations of the bill.

MRA proposed a substitute bill that would relieve retailers of the
record-keeping requirements and liability. MRA-supported amendments were
passed in committee to address retail concerns with the legislation.

Thomas elected House minority leader

House Democrats elected Rep. Samuel "Buzz" Thomas (D-Detroit) as minority
leader December 4, replacing Kwame Kilpatrick (D-Detroit). Kilpatrick will
leave the House at the end of the year to take office as mayor of Detroit.

Thomas is a pro-business Democrat who has supported MRA in the past on
issues such as the streamlined sales tax bill.

Other contestants for the position were Reps. Jack Minore (D-Flint) and Doug
Bovin (D-Gladstone).

Governor seeks greater broadband access

Governor John Engler is pushing a proposal to expand high-speed
("broadband") Internet connections in the state by assessing fees on
telecommunications and cable companies that provide Internet access.
The proposed charge of seven cents per linear foot of cable would replace
local fees and would raise an estimated $75 million annually. Half of the
funds would go to a new state authority that would give grants and loans to
private companies to encourage construction of high-speed hookups in areas
lacking such service. The rest would go to local governments.

Gov. Engler had linked the legislation with a proposal to eliminate the "end
user line charge" on local phone service. Ameritech had posed the primary
opposition to the legislation but may now have cut a deal with the governor
in which the end user line charge proposal is dropped from consideration.
Either way, the bills will not be taken up before Christmas, as the governor
had wanted. Action is expected in January, when the legislature returns from
its holiday break.

Drug companies sue over cost-saving measure

The pharmaceutical industry has filed suit against the State of Michigan for
its recently unveiled prior-authorization program for prescription drugs.
Intended to save the Department of Community Health $42 million, the program
is under furious assault by the drug companies. The program was scheduled to
take effect January 1, 2002.

A hearing is set for December 11 to discuss alternative cost-saving methods
for pharmaceuticals. The Senate Appropriations Subcommittee on Community
Health will be holding the meeting and is asking individuals and groups to
provide the committee with cost-saving alternatives to deal with budget
constraints. For more information on how to participate in this forum,
please contact Eric Rule at 517.372.5656 or errule@retailers.com.

Committee to consider anti-shoplifting bill

HB 5125, an MRA-supported bill to fight use of shoplifting devices, will be
taken up by the House Criminal Justice Committee on December 11 at 10:30 a.m.

Sponsored by Rep. Mike Bishop (R-Rochester), the bill makes it a low-level
felony to possess, manufacture, sell, offer to sell or distribute materials
aimed at shielding merchandise from detection by an electronic or magnetic
theft-detection device.

Bill Track lets members access legislative information

MRA’s Bill Track website (www.retailbilltrack.com) allows members to
access retail-oriented legislation online. The searchable site breaks issues
down by category and allows the user to review bills in their entirety and
check their status. To register for access to BillTrack simply visit the site.

KEY BILL INTRODUCTIONS:

No key bill introductions

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.