KEY LEGISLATION:
Democrats Want
Increase in Unemployment Benefits
Legislators and the Granholm Administration reached agreement on a
four-year, $600-million business tax-cut plan. It’s a revised version
of the
one Republican leaders introduced a few weeks ago, dubbed “Tax
Plan Jr.,”
that was vetoed by Gov. Granholm.
The new plan would change the formula used to determine a business’
Single
Business Tax liability from its current basis of 90 percent sales, 5
percent
payroll and 5 percent property to a basis of 95 percent sales and 2.5
percent each for payroll and property, phased in over three years. The
new
formula would start in 2006 with sales at 92.5 percent and payroll and
property at 3.75 percent each; by 2008 it will reach the final percentages.
The plan is a win for automakers and other manufacturing companies that
have
high payroll and property expenses but are struggling with sales. Retailers
and small businesses not involved in manufacturing will have to wait
until
next year for any additional tax relief.
Governor Signs
Wine Bills
Gov. Granholm signed into law legislation that marks a compromise between
the Michigan Beer and Wine Wholesalers and a coalition of Michigan wineries,
retailers and restaurants. The two bills, House Bill 4959 and Senate
Bill
625, enable consumers to purchase wine through the mail from both in-state
and out-of-state wineries. In addition, they allow retailers and restaurants
to continue the practice of purchasing their products directly from
the
wineries, as opposed to being required to go through a wholesaler.
The victory was a struggle, as the wholesalers were attempting to carve
out
an expanded niche for themselves and maintain one of the largest political
presences in Lansing. The victory does have some strings, however, as
one
provision in SB 625 says that if direct shipping from wineries to retailers
is struck down as unconstitutional, that practice would not be allowed
under
the law. A similar case involving Costco is coming to fruition in Washington
State and may have an effect on Michigan’s law.
Committee Passes
Billboard Compromise
The Senate Transportation Committee passed compromise legislation that
would
put a cap of 2,500 on the number of new billboard permits that can be
issued
between now and December 31, 2008. However, the cap does not mention
anything about pending permits for signs. According to Ron DeCook of
the
Michigan Department of Transportation, there are about 2,200 permit
holders
that could still construct signs in addition to the new 2,500 being
issued.
Environmentalists are upset because the restriction is less than they
had
sought. They are also concerned about a compromise in the legislation
that
allows the billboard owner to cut away plants that cover the billboard.
The
environmentalists believe that new sign owners will erect billboards
behind
plants only to be allowed to cut the down the vegetation.
The committee passed the bills on a 3-0 vote, with one Democrat abstaining
and the other absent. The bills now move to the Senate floor, where
additional amendments will be debated.
Democrats Want to Increase Unemployment Benefits
Democrats are proposing a plan that would give the state’s jobless
workers
13 more weeks of unemployment pay whenever the state’s unemployment
rate is
at 5 percent or higher. The package of bills also includes increases
in the
maximum weekly unemployment benefit, from $362 to $408, the weekly benefit
for dependents from $6 to $20 and the multiplier that determines benefits
from 4.1 percent to 4.4 percent.
Republicans said the bills would make Michigan less competitive with
surrounding states and would ultimately cost Michigan jobs. They also
fear
that an increase in unemployment benefits would drain the state unemployment
fund and cause an increase in employers’ unemployment taxes.
Democrats counter that the cost to fund the extra benefits would depend
on
the number of people claiming unemployment and the unemployment rate
itself.
They also argue that their new plan would fuel the economy while helping
the
average worker.
Water Bills Flow through Senate
A five-bill package regulating water withdrawals passed the Senate and
will
be taken up by the House in the new year. The package gives the Department
of Environmental Quality oversight on withdrawals of water that exceed
2
million gallons a day and allows the DEQ to temporarily halt any withdrawals
that would harm the environment.
Gov. Granholm and Democrats hailed the package as a good starting point,
while they continue to call for expansion of the regulations in the
bills.
Numerous amendments seeking to require permits for lower volume withdrawals
and to have the permits authorized by the state were defeated.
KEY BILL INTRODUCTIONS:
No new introductions 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
