KEY LEGISLATION:
Gas-Pricing Bills Introduced
Two bills that seek to control how gasoline is priced
in Michigan were
introduced. Senate Bill 519 and House Bill 4757, introduced by Sen.
Mark
Schauer (D-Battle Creek), and Rep. Charlie LaSata (R-St. Joseph), are
similar to recent efforts in other states to ensure a minimum markup
occurs
with the per-gallon price of gasoline.
Supporters claim the bills are an attempt to help independent
gas station
owners compete with larger retailers selling gasoline on site. No matter
what the intent, MRA objects to the legislation because it believes
free-market forces should dictate how a product is priced. If a retailer
sells a product below cost or seeks to harm other businesses through
monopolizing the industry, such action should be investigated. However,
this
does not appear to be the case in Michigan, and this legislation clearly
is
not needed.
The Federal Trade Commission (FTC) has been involved
in other states that
have tried similar measures. In North Carolina, for example, the FTC
issued
a statement that federal and state law already protects citizens and
businesses from price gouging and that legislation of this kind is actually
anti-consumer and will only lead to higher gasoline prices for consumers.
MRA wholeheartedly agrees and will continue to work to defeat any attempts
by the state to set prices.
Budget Problems May Be Solved Soon
The 2003-04 budget should be balanced within a few weeks,
according to
Senate Majority Leader Ken Sikkema (R-Wyoming). A one-time federal bailout
of $655 million will help fill large holes in the current budget picture.
There will still be minor battles related to which programs receive
funding
from which sources, but the major concern of having enough money appears
to
be solved, at least for FY ’04.
The rosy assessment assumes, among other things, that
the Department of
Community Health (DCH) budget will net $19.8 million from a pharmacy
assessment plan. Depending on how the legislation develops, the pharmacy
community may or may not agree to this plan. At this point, negotiations
appear positive, but details have not been worked out and the issue
will not
be completely resolved until the governor signs the legislation authorizing
the plan.
Small Market Reform Bills Sent to Conference
The package of bills designed to help reform small-market
health care has
been sent to a conference committee to work out differences between
the
House and Senate.
Senate Bills 234 and 460 will most likely be debated
within the next two
weeks before the conference committee, which includes Sens. Bev Hammerstrom
(R-Temperance), Bruce Patterson (R-Livonia) and Gilda Jacobs (D-Huntington
Woods), as well as Reps. Rick Johnson (R-LeRoy), Stephen Ehardt
(R-Lexington) and Dianne Byrum (D-Onondaga).
There are currently two versions of the package—one
passed by the House and
another passed by the Senate. Both would implement rate bands for Michigan’s
health insurance market. Rate bands, in essence, would require setting
mid-point index rates. The major differences between the two versions
involve what percentages the insurance companies (BCBSM, HMOs, and
commercial carriers) would be allowed to stray from the mid-point when
setting prices.
Since this is one of the most hotly debated issues of
this legislative
session, the negotiations between conferees and leadership (which is
well
represented on the conference committee) should be intense.
Hollister Says No to MEDC
Former Lansing Mayor David Hollister, appointed by Governor
Granholm earlier
this year to head up the Consumer and Industry Services (CIS) Department,
has turned down her request to leave his post at CIS to lead the Michigan
Economic Development Corporation (MEDC).
Hollister reportedly did not give it much thought before
rejecting her
offer. Even though the position would have doubled his current salary
and
reduced his workload, Hollister chose policy considerations over personal
ones. Hollister will now focus his efforts on implementing a larger
economic
development component to CIS.
KEY BILL INTRODUCTIONS:
HB 4232, sponsored by Rep. James Koetje (R-Grandville),
to eliminate the
population provision on transfers within a county of on premises escrowed
liquor license.
HB 4757, sponsored by Rep. Charles LaSata (R-St.
Joseph), to prohibit
certain unfair methods of competition and pricing practices in the retail
distribution of motor fuel.
HB 4764, sponsored by Rep. Bill Huizenga (R-Zeeland),
to revise procedure
for removal of directors, vote required for certain article amendments,
and
control share acquisition requirement.
HB 4777, sponsored by Rep. Joseph Rivet (D-Bay
City), to provide requirement
for designated bottle return area and signs for certain beverage dealers.
HB 4801, sponsored by Rep. Jacob Hoogendyk (R-Portage),
to provide for and
implement supplemental rebate pilot program.
HB 4833, sponsored by Rep. Dale Sheltrown (D-Gladwin),
to exempt residential
and business owned property sold to a family member from increase of
taxable
value.
SB 529, sponsored by Sen. Valde Garcia (R-Howell),
to increase commission to
retailers.
SB 570, sponsored by Sen. Robert Emerson (D-Flint),
to establish filing fees
in appropriation acts.
SB 590, sponsored by Sen. Garcia, to provide
for initial and annual fees for
license to sell lottery tickets.
SB 583, sponsored by Sen. Patty Birkholz (R-Saugatuck),
to ban electronic
equipment containing cathode ray tubes from disposal in land fills
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
