KEY
LEGISLATION:
Security-Breach
Legislation Stalls in Committee
A bill requiring retailers and financial institutions to alert customers
when a security breach occurs did not move in the Senate Judiciary Committee
due to some legislators’ concerns it was watered down.
MRA and numerous other business and credit groups have been working
with the
bill’s sponsor, Sen. Shirley Johnson (R-Royal Oak), for months
on ways to
bring the legislation, SB 309, into compliance with measures passed
in other
states. The groups’ goal has been to prevent multi-state businesses
from
facing a piece-meal approach to the issue. Their changes apparently
stalled
the bill in committee after several lawmakers expressed concerns that
the
changes neutered the bill.
Committee members were most critical of a change stating that businesses
must only notify customers if they believed the consumers’ security
was at
risk. The change was implemented in order to prevent companies from
having
to send out notices for breaches that wouldn’t result in a greater
risk of
fraud for the consumer.
No vote was taken on the bill, and all indications are that committee
Chair
Sen. Alan Cropsey (R-DeWitt) will withhold the bill from further action
until various concerns have been addressed.
SBT Elimination
Proposal Moves Closer to Ballot
Oakland County Executive L. Brooks Patterson is one big step closer
to
putting a Single Business Tax (SBT) elimination proposal on the state
ballot. Last week he submitted 372,604 signatures seeking to move the
current sunset on the SBT from December 31, 2009, to December 31, 2007.
To put the issue on the ballot, Patterson needs 254,000 valid signatures.
Under Michigan law, such an initiative gives the legislature 40 days
after
the Secretary of State certifies the signatures to approve the measure.
If
the legislature does not vote on the initiative or defeats it, the measure
automatically goes to state voters in November.
In related news, House Majority Floor Leader Chris Ward (R-Brighton)
indicated he plans to introduce legislation replacing the SBT with a
fee-for-licensure structure. Under his plan, businesses would pay a
yearly
fee to receive a license to do business in the state, with the fee based
on
the firm’s annual sales. Estimates show the proposal translating
into a
25-percent business tax cut and a $500 million loss in state revenue.
However, the Granholm Administration has made it clear it will only
accept a
replacement that is revenue neutral.
Speaker of the House Craig DeRoche (R-Novi) cautioned that attention
should
be focused on members of the Joint House and Senate Committee on SBT
Tax
Restructuring—of which Ward is not a member—for proposals
that have the
greatest chance of being endorsed by his caucus.
Session Update
June 15 was the tentative date for the legislature to adjourn for the
summer, but that date is now being pushed back closer to the July 4
holiday.
Budget negotiations between the administration and caucus leaders are
said
to be going well, but are not expected to be completed until the end
of next
week. After that, the various conference committees will need time to
iron
out specific funding issues based on the spending targets agreed to
by the
leaders.
KEY BILL INTRODUCTIONS:
No new key bill introductions to report
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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
