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Governmental Affairs


February 21 , 2003

 

KEY LEGISLATION:

Living-wage preemption clears house panel

Efforts to preempt local living-wage ordinances have been resurrected in the
House. HB 4160, sponsored by Rep. Fulton Sheen (R-Plainwell), was reported
out of the Employment Relations, Training and Safety Committee and sent to
the House floor.

The bill is effectively the same as legislation introduced last session that
failed after a handful of Republicans sided with organized labor. The
current makeup of the House—Republicans hold 62 of 109 seats and the large
freshman class is considered more conservative than previous ones—makes
passage of the bill more likely.

A handful of local communities, including Detroit, have adopted local
living-wage measures. This bill would make such ordinances obsolete. The
living wage in Michigan is $8.44 per hour if benefits are included and
$10.50 if benefits are not.

Governor Jennifer Granholm opposes the bill and might exercise her first
veto if the bill reaches her desk.

 

State turns to retailers for help in
recycling electronic products

The Michigan Department of Environmental Quality has contacted MRA to begin
discussions on the best way to increase recycling of electronic products
such as televisions and computers. The request comes as little surprise,
because other states have already enacted such programs—including requiring
retailers that sell the products to take them back from consumers for recycling.

MRA has notified the department that retailers oppose any additional burdens
or requirements. The department is expected to set up a work group to deal
with this topic in the near future and envisions the group meeting
periodically for as long as a year. The group is expected to include
retailers and manufacturers.

 

Prescription drug purchasing plan moves forward

Gov. Granholm announced that the state has entered into an agreement with
Vermont to pool their purchases of prescription drugs in order to receive
the lowest possible rate from pharmaceutical manufacturers. It is still
unclear whether legislation or an administrative rule is necessary to
undertake such an endeavor, which some analysts believe will not actually
save the state any money.

Some have questioned the theory that volume moves price when it comes to
prescription drugs. They claim that market share of a particular drug
influences price more. Also in question is how a state like Vermont, with 6
percent of the population of Michigan, can help Michigan achieve greater
cost savings than are already being achieved through the state’s preferred
drug list.

Under the new plan, the state’s pharmacy benefit manager, First Health
Services, will attempt to negotiate greater rebates with manufacturers for
Vermont and Michigan based on the collective volume of purchases. Iowa is
also said to be considering joining the program.

 

Insurance commissioner resigns

The state’s Insurance Commissioner announced his resignation this morning,.
Frank Fitzgerald, a former state representative, released a four-paragraph
letter indicating he would be leaving the position at the end of the day. He
gave no indication why he was leaving,, but it could stem from differences
between the Engler-appointed Fitzgerald and the new Democratic governor.

Fitzgerald’s term was set to expire at the end of March 2004. No details
were released on Fitzgerald’s plans. Prior to his 12 years in the House,
Fitzgerald served three years as prosecuting attorney for Eaton County.

 

Bill would ban lottery vending machines

Rep. Jack Hoogendyk (R-Kalamazoo) introduced legislation, HB 4144, that
would ban the installation of instant-ticket vending machines in retail
locations. The bill has been sent to the House Committee on Regulatory Reform.

Only two months ago, the state entered into a contract to install the
machines in high-volume locations. The move was expected to net the state
approximately $11 million per year in additional revenue.


KEY BILL INTRODUCTIONS:

No Bills to Report at this time.

To view the content and current status of retail-related bills, visit BillTrack,
MRA's legislative tracking database exclusively for members, at
www.retailbilltrack.com


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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
517.372.5656
Toll-Free: 800.366.3699
Fax: 517.372.1303
govt_affairs@retailers.com
www.retailers.com
www.mallofmichigan.com