KEY LEGISLATION:
MRA Blasts Gas-Pricing Legislation
MRA testified sharply against a bill requiring businesses
that sell gasoline
to justify their expenses and costs of doing business before setting
a price
for the gas. During a hearing held by the House Transportation Committee,
MRA Chairman and CEO Larry Meyer said House Bill 4757 over-regulates
business, interferes with the free-market system and will drive up the
cost
of gas at the pumps.
The Service Station Dealers Association and the Michigan
Petroleum Jobbers
are promoting the legislation aggressively. They argue that without
the
legislation, their independent operators will be forced out of business
by
larger corporate stations, a claim disputed by MRA and industry experts.
Part of the bill requires a gas station to submit its
costs of doing
business if a competitor challenges the price at which it is selling
gasoline. Components of the cost include, but are not limited to: labor
costs, salaries of executives and officers, fair market rent value,
interest
on borrowed capital, depreciation, costs for maintenance of equipment,
credit card fees, all license fees, taxes, insurance and advertising
costs.
"This bill is a slippery slope for retail in Michigan,"
said MRA’s Eric
Rule, director of governmental affairs. "If the government is going
to step
in and tell a retailer what to charge for a product, where will it end?
Will
grocery stores be the next industry that’s forced to reveal sensitive
information, such as the salaries of their executives and how much they
spend on advertising, when they want to move a particular product?"
MRA argued that if the true intent of the bill is to
prosecute companies
that price in a predatory fashion in order to put their competition
out of
business, then current antitrust laws under the purview of the attorney
general and Federal Trade Commission are sufficient. The FTC itself
has
argued against these types of laws, claiming they are anti-consumer
and will
lead to higher gas prices in the long term—hardly what anyone wants
with gas
prices already at an all-time high.
The committee did not indicate when or if the bill would
be scheduled for
another hearing.
Living-Wage Preemption Vetoed by Granholm
As expected, Governor Jennifer Granholm vetoed legislation
that would have
preempted local living-wage ordinances. This comes after years of business
groups trying unsuccessfully to get the preemption legislation to Governor
Engler when he was in office.
In her veto message, Granholm indicated that the bill
would have prevented
local governments from adopting local living-wage ordinances, and that
these
wages are typically equivalent to the poverty level for a family of
four
plus health benefits for affected employees.
Tobacco Tax Hike Could Come Next Week
The on-again, off-again 75-cent tobacco tax hike is
likely to come up in the
House next week, according to Republican members. Because Gov. Granholm
originally proposed the issue, House Speaker Rick Johnson indicated
that a
significant number of Democrats must put up yes votes before he will
allow
his caucus to help pass the measure.
It is estimated that House Minority Leader Dianne Byrum
must garner at least
33 votes in order for the Republicans to make up the remaining votes
needed
to pass the bill with a minimum 55 votes. At last count, it appeared
Byrum
had roughly 20 yes votes from Democrats. This number may change, however,
before the issue is brought up next week. In any case, if the bill passes
it
will probably be by the slimmest of margins.
KEY BILL INTRODUCTIONS:
No New Bill Introductions 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
