KEY
LEGISLATION:
Wal-Mart
Hit with Record Item-Pricing Fine
Under an agreement between the State of Michigan and Wal-Mart announced
by
Attorney General Mike Cox, Wal-Mart will pay $780,000 in fines and penalties
up front for its failure to follow the state’s item-pricing law.
An
additional $620,000 will be put into a separate account from which the
state
can draw money on a sliding scale, based on the results of independent
audits of Wal-Mart conducted over two years. Also, $100,000 is being
donated
to Michigan food banks.
The settlement is the largest ever recorded for item-pricing violations
in
Michigan. Previously, the largest amount collected was from Home Depot,
which yielded the state $250,000 during Governor Jennifer Granholm’s
tenure
as attorney general.
MRA continues to push for modernization of the law through the increased
use
of technology and the utilization of shelf labels. The reform bill,
HB 4636,
sponsored by Rep. Dave Hildenbrand (R-Lowell), remains stalled due to
Gov.
Granholm’s threat to veto any bill easing item-pricing burdens.
Costco Ruling
Could Shake up Alcohol Market
On Friday, April 21, U.S. District Court Judge Marsha Pechman issued
a
decision in the Costco Wholesale v. Roger Hoen case in Washington State.
Pechman ruled that the state’s right to regulate the sale and distribution
of beer and wine does not necessarily supersede and cannot be in conflict
with federal antitrust law.
The Washington Beer and Wine Wholesalers Association has 30 days to
file an
appeal, which is expected. If the ruling were upheld, however, it would
have
huge ramifications to the retail environment for sales of beer and wine
in
Washington and perhaps other states. The ruling would allow a more
competitive environment to exist in the retail sales markets by removing
restrictions and burdens that have hampered efficiency and
cost-effectiveness.
Gas Prices Provide
Political Fodder
High gasoline prices are creating a politically charged issue for Gov.
Granholm and Republican challenger Dick DeVos to debate in the media.
With
prices hovering around $3 per gallon, Granholm is calling for President
Bush
to cap oil companies’ profits to provide relief to motorists. DeVos,
on the
other hand, is calling for the state sales tax on gas to be capped at
$1.95
per gallon—meaning consumers would pay sales tax only on the first
$1.95 per
gallon purchased.
Granholm’s camp claims this would harm Michigan schoolchildren
by taking
revenues away from the School Aid Fund (SAF), which is partially funded
by
gas taxes. DeVos’ camp responds that the SAF was never intended
to tax
gasoline above the $2-per-gallon rate, and that anything above that
amount
is “gravy” anyway.
Black Market
Bills Aimed at Pharmacy Employees
Sen. Bruce Patterson (R-Canton) wants to make it a felony for a pharmacy
employee to steal drugs from inventory and sell them on the black market.
His bills, SB 1212 and 1213, would classify prescription medications
as
controlled substances, which would move violations up to felony status
from
their current rank as misdemeanors.
Law enforcement brought the idea for the bills to Patterson’s attention.
He
agreed to sponsor the bills because thefts of these products hurt consumers
through increased costs and possible public health dangers.
KEY BILL INTRODUCTIONS:
No new key bill introductions to report
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it via e-mail, please contact Kathleen Wilson at 517.372.5656 or
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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
