Home
Governmental Affairs


October 10 , 2003

 

KEY LEGISLATION:

Workers’ Compensation Appellate Commission
Eliminated in Gov’s Executive Order

Last month, Governor Jennifer Granholm exercised her gubernatorial right and
issued an executive order creating the Department of Labor and Economic
Growth (LEG) and restructure a significant part of state government.
Republicans and business groups embraced the EO for the most part, but
balked severely on one portion of the 52-page document that eliminates the
Workers’ Compensation Appellate Commission (WCAC).

In 1985, then Governor James Blanchard created the current work comp. system
to replace the unwieldy system that had created a large backlog of 7,000
cases. Today the system only has a backlog of approximately 400 cases, and
is revered by the business community and the nation as a model system.

MRA presented testimony to both the Senate Government Operations Committee,
and the House Commerce Committee stressing that the executive order must be
rejected for its devastating affects to the workers’ compensation system in
Michigan. The Senate heard these complaints clearly, and in their wisdom
rejected the executive order, first in committee, and most recently on the
Senate floor. The House was about to follow suit when it became a moot point.

Granholm has since withdrawn the executive order and issued a new EO that
does not completely abolish the WCAC. Instead, as a result of aggressive
lobbying by MRA and others, the EO replaces the 7 member WCAC with a 5
member commission to be named by the governor. The commissioners must go
pass an advise and consent process of the Senate however. The EO is expected
to take effect without either the House or the Senate challenging it. MRA
will seek qualified business candidates for this commission and will
certainly make its voice heard in the Senate confirmation process.

 

Detroit Edison Wants to Eliminate Electric Choice

When many businesses are finally realizing some relief from electric bills
via Detroit Edison’s (DTE) Electric Choice Program, the company is
reportedly seeking legislation eliminating choice for those business
customers using less than 1 megawatt. No legislation has yet been
introduced, but MRA and other business groups have already begun an
aggressive attack on potential legislation.

The message that is being sent to legislators is any legislation seeking
elimination to electric choice will only serve to push many small businesses
over the brink of insolvency. With margins as low as they are right now,
those businesses seeing some relief from electric bills would be hit very
hard if this relief were stripped from them. MRA is also in the electric
aggregation business and saves a great deal of money for these customers.
Any legislation eliminating choice would adversely affect these members greatly.

The message is being heard loud and clear by legislators so far. Governor
Granholm may be supportive of DTE’s efforts however, and if this were the
case, could make defeating such a proposal more difficult. For more
information how you can get involved in this effort or MRA’s Electric
Aggregation Program, please call Kathleen Wilson at (517) 372-5656 ext.
1247.

 

Cassis Introduces SBT Legislation for Employers

Senator Nancy Cassis recently rolled-out a package of bills seeking to
exempt employers from the Single Business Tax (SBT) for employee related
health care expenses. The goal of the legislation is obviously to encourage
more employers to offer health care coverage to employees, and reward those
that currently do.

MRA is highly supportive of the legislation, and supported the legislation
at the Senate Finance Committee, which Cassis chairs, Wednesday. MRA
believes that it is important to provide incentives to employers to offer
health care benefits to their employees, rather than punish those that do
through taxes.

The bills face an uphill battle however, as the price tag for such a change
would be in the millions of dollars. Recent revenue projections don’t help
the cause, as it has recently been learned that an additional shortfall of
roughly $800 million to $1 billion exists for the current fiscal year.


KEY BILL INTRODUCTIONS:

SB 672, sponsored by Sen. Nancy Cassis (R-Novi), to eliminate health care
costs from base over a 5-year period.

SB 675, sponsored by Sen. Liz Brater (D-Ann Arbor), to prohibit employer
monitoring of employee communications unless the employer establishes an
employee monitoring policy and discloses that policy to employees.

SB 694, sponsored by Sen. Buzz Thomas (D-Detroit), to prohibit sale of food
product or dietary supplement con training ephedra and excluded from
schedule 5.

SB 679, sponsored by Sen. Cameron Brown (R-Sturgis), to exempt sales of
certain energy star-qualified products.

SB 721, sponsored by Sen. Brater, to establish solid waste disposal
surcharge and earmark for recycling programs and landfill inspections.

SB 967, sponsored by Sen. Burton Leland (D-Detroit), to revise appeal
procedure.

HB 5060, sponsored by Rep. Chris Ward (R-Brighton), to restrict automatic
renewal of provision in consumer agreements.

HB 5136, sponsored by Rep. Lisa Wojno (D-Warren), to require meals and rest
periods for employees under certain circumstances.

HB 5146, sponsored by Rep. Paul Condino (D-Southfied), to provide for
toll-free number for information regarding prescription drug programs.

HB 5147, sponsored by Rep. Triette Liipsey Reeves (D-Detroit), to establish
senior prescription program.

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