KEY LEGISLATION:
California-Style
Legislation on
Gift Cards Expected Soon
Sen. Gerry Van Woerkom (R-Muskegon) is set to introduce
legislation
regulating customer gift cards and gift certificates in ways similar
to
changes recently enacted in California. Senator Van Woerkom’s staff
sought
MRA’s input because of our interest and leadership in the bankcard
and gift
card field. Fortunately, Sen. Van Woerkom has been an ally of ours in
the
past and should be more open to our concerns on this issue than others
might be.
House Speaker
Backs Increased Sales Tax,
Elimination of Gas Tax
A proposal to abolish the gas tax and increase the sales
tax by one percent
has gained the support of House Speaker Rick Johnson (R-LeRoy), who
joined
with the chair of the House Transportation Committee in backing the
plan. In
addition to wiping out the state’s 19-cent gas tax, the proposal
would
reduce the diesel fuel tax by five cents a gallon in exchange for the
one-
percent increase in the sales tax.
Johnson reportedly believes an increase in either the
gas tax or diesel tax
is unlikely. He believes a sales tax increase has the best shot of securing
additional dollars for Michigan’s roads. Further, dropping the
gas tax would
be a boon for tourism, since Michigan would have some of the lowest
gas
prices in the region.
Notable Democrats have come out against the sales tax
increase. House
Minority Leader Dianne Byrum (D-Lansing) believes the sales tax is
regressive, targeting middle and low-income families.
The proposal would require statewide voter approval
and faces long odds of
becoming reality. MRA will weigh in on the issue and remind lawmakers
that
increasing the sales tax affects retail sales and is not an approach
favored
by the industry.
Credit Card Truncation Bill to Move
A bill is set to move in the Senate that would require
businesses operating
credit card terminals to blank out all but the last four digits of the
card
number printed on a customer’s copy of the receipt. Sponsored by
Sen. Valde
Garcia (R-Howell.), SB 220 is expected to be voted out of the Senate
Commerce and Labor Committee Wednesday.
Before the bill moves, however, MRA and Garcia are negotiating
language that
would allow for a phase-in period and would take into account manual
imprinting credit card machines. MRA also is attempting to bring the
proposed bill in line with the recent Visa and MasterCard ruling mandating
truncation. Garcia has been open to working with MRA, and compromise
language should be reached before the bill moves.
Tobacco Equity Legislation Promotes Fairness
A package of bills in both the House and the Senate
may net the state as
much as $30 million additional per year by forcing some tobacco companies
to
pay a per-cigarette assessment on all cigarettes they sell in Michigan.
The
legislation is expected to increase the price of cheaper off-brand
cigarettes by 35 cents per pack.
The "nonparticipating companies" affected
by the bills are not party to the
1998 master settlement agreement and, therefore, receive a refund on
payments they make into an escrow account that was established to offset
the
pricing advantage they have over the companies involved in the agreement.
The bills passed from the House Tax Policy Committee
this week with the bare
minimum of votes needed. The Senate bills also passed from the Senate
Tax
Policy Committee this week with less debate and without protracted voting.
Granholm Makes
First Round of New Cuts—
Schools to Lose $350 Million
Schools will have to operate with 2.9 percent less funding
than last year,
translating to a $196 reduction in the $6,700-per-student foundation
grant.
The cuts, while painful to the schools and the governor, are required
under
law because there must be a proration when there is a revenue shortfall.
Senate Republicans admitted they anticipated the move
but offered no
alternative plan for now. The cuts are the first of many anticipated
moves
as the state attempts to fill an approximately $900 million hole in
the budget.
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
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
