KEY LEGISLATION:
House Okays Department of Community Health Budget
The 2004 Fiscal Year budget for the Department of Community
Health (DCH)
passed the full House on a party-line vote of 63-44. The bill, HB 4392,
excludes one main provision from the executive recommendations. Governor
Jennifer Granholm had shifted $60 million from the tobacco settlement
dollars to the DCH budget, but the GOP instead decided to use General
Fund
dollars to fund certain programs in the DCH budget.
The move highlights two major differences in opinion:
how the tobacco
settlement dollars should be allocated, and whether Michigan’s
Merit
Scholarship Fund should continue to be funded at the current $2,500
level or
reduced to $500 as recommended by Democrats. Granholm proposed that
tobacco
money currently going to the Merit Scholarships be used for health care
instead. Debate is likely to continue as the budget process moves along,
with the GOP holding fast that the Merit Scholarships should continue
to be
funded at their current level from tobacco dollars.
As passed, the DCH budget also assumes $18.9 million
in revenue from a newly
proposed "Provider Assessment" on pharmacies. The tax would
apply to all
prescriptions except Medicaid prescriptions, and would be used by the
state
to garner additional matching funds from the federal government, allowing
for greater reimbursement to the pharmacies. This concept is still being
negotiated with the department by MRA and our chain drug members, and
it is
still unclear if it will ultimately be accepted by industry.
Senate Finance
Committee Hears
Tax Loophole Testimony
The Senate Finance Committee, chaired by Senator Nancy
Cassis (R-Novi),
heard two hours of testimony from business groups claiming that the
tax
loopholes recently proposed by Gov. Granholm were in reality new tax
changes
and do not meet the definition Granholm identified as a loophole. Many
of
those in attendance were unable to testify due to a shortage of time.
Sen. Cassis added her two cents, stressing that some
areas can be worked out
cooperatively, but most will be defined as intended tax policy and not
loopholes. Cassis also argued that her study of the proposed changes
indicates that these supposed loopholes may put too much burden on small
businesses and not spread the pain of tax changes widely enough.
The Senate Finance Committee is scheduled to hold another
hearing on the
proposed tax changes on April 30, with an additional hearing on May
7 if
more time for testimony is needed. Members who would like to participate
in
this discussion should contact Eric Rule at MRA at (800) 366-3699 or
errule@retailers.com for additional
details.
Plan Released to Freeze Income Tax Cut
Two Republican lawmakers announced a plan that will
save the state millions
of dollars by freezing scheduled income tax cuts.
State Reps. Mike Pumford (R-Rockford) and Doug Hart
(R-Newaygo) are
proposing a delay in the scheduled income tax cut for FY 2004 and FY
2005.
They estimate a savings of roughly $130 million in FY 2004 and $270
million
in FY 2005. Under the proposed bill, the income tax cut of 0.1 percent
scheduled for FY2004 would be delayed until FY 2006 and remain at 3.9
percent for two years. Other scheduled tax cuts would be phased in over
the
next few years, until in FY 2010 the tax rate would be 3.8 percent.
The lawmakers claim that the plan is a win-win proposal,
as it provides
immediate saving during the state’s budget crisis, yet provides
a larger tax
cut down the road. A bill draft is not yet available and will be subject
to
much discussion when it becomes available.
KEY BILL INTRODUCTIONS:
HB 4501, sponsored by Rep.
Kathleen Law (D-Rockwood), to prohibit
regulations for certain price increases on gasoline during emergencies.
HB 4519, sponsored by Rep. Bill Huizenga (R-Zeeland),
to provide for
regulation of the transmission of electronic mail advertisements.
SB 357, sponsored by Sen. Mike Bishop (R-Rochester),
to provide for
regulation of electronic mail advertisements.
SB 359, sponsored by Sen. Gilda Jacobs (D-Huntington
Woods), to establish
filing fees in appropriations acts.
SB 360, sponsored by Sen. Jim Barica (D-Bay City),
to increase pesticide
applicator fee.
SB 378, sponsored by Sen. Gerald Van Woerkom
(R-Muskegon), to exempt
greenhouses from property tax.
SR 49, sponsored by Sen. Bruce Patterson (R-Canton),
a resolution to the
Congress of the United States and the United Department of Agriculture
to
provide assistance in the effort to deal with the infestation of the
Emerald
Ash Borer.
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
If you are currently receiving Capitol F@cts by fax
and would like to receive
it via e-mail, please contact Kathleen Wilson at 517.372.5656 or
kawilson@retailers.com.
For back issues of online Capitol F@cts, visit MRA's main Capitol F@cts page.
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
