December 21, 2007
2008 Legislative Issues Important to Retail
The Michigan Legislature put the finishing touches on a long, nasty year beneath the Capitol dome on December 13. They will not meet until January 9.
When they return to finish up the two-year legislative session, they will continue tackling numerous issues relevant to businesses in the state, and will once again work on balance a budget that already appears to be nearly $500 million in the red. Some of the issues in play include:
- Gross receipts: When the SBT was replaced with the MBT, the business community was not aware that the Treasury department would include sales tax under the definition of a business’ gross receipts. Under Treasury’s definition, retail businesses would be taxed on the sales tax they collect and remit to the state. MRA is set to introduce legislation in 2008 to correct this, viewing it as a tax on a tax.
- Gift cards: Lawmakers have targeted gift cards for further regulation, seeking to prohibit businesses from selling gift cards that expire in less than five years from the date of sale. In addition, retailers would no longer be allowed to charge an inactivity fee. In exchange for these regulations, however, the requirement to escheat the unredeemed value of the card (send the unredeemed balance to the state as unclaimed property) would be lifted, and retailers could instead keep the unredeemed value after five years of inactivity.
- Great Lakes Compact: Currently, two packages of bills seek to ratify the Great Lakes Compact and send it on to Congress for federal approval. In the House, the Democrats have introduced a more restrictive package, and in the Senate, the Republicans are pushing their package, one which the business community views as less restrictive.
In addition to ratifying the compact, the bills seek to regulate large water withdrawals in the state through an online computerized assessment tool that determines if a withdrawal will impact water resources near the source.
The respective packages are expect to pass the chamber in which they were introduced and then negotiations between the Democrats and Republicans will kick into gear.
- Repeal of PA 141: The large utility companies want to repeal the act that allows electric choice in Michigan and return to monopoly status. MRA opposes this move and favors greater competition in the marketplace to lower costs to consumers and businesses.
- Driver’s licenses: Proposals are in the works by the Secretary of State’s office to upgrade Michigan driver’s licenses in order to provide greater security from fraud and homeland security risks. Two options are under consideration: stick with the current license with upgrades to help prevent fraud, or go with the new “enhanced” license that will allow residents to cross international borders and board international flights without a passport once the federal “Real ID” act takes effect.
Ballot Proposals Piling Up
Medical marijuana, a part-time legislature, a statewide vote required to raise taxes, comprehensive health care for all—these could all be included on the November 2008 ballot if enough signatures are gathered in time. More than 380,000 valid signatures must be acquired before each proposal can be placed on the ballot. In addition, the Board of Canvassers must certify the petitions before they can be added to the ballot.
KEY BILL INTRODUCTIONS:
SB 956, sponsored by Sen. Hansen Clarke (D-Detroit), to modify provision regarding individuals eligible to dispense a prescription for a controlled substance received via electronic means.
SB 970, sponsored by Sen. Jason Allen (R-Traverse City), to allow establish and fund retail business incubators.
SB 971, sponsored by Sen. Clarke, to create retail redevelopment renaissance zones.
SB 977, sponsored by Sen. Jud Gilbert (R-Algonac), to establish fee to expedite the processing of applications.
HB 5518, sponsored by Rep. Phillip Pavlov (R-St. Clair), to require document verification and license issuance standards for federal recognition.
HB 5519, sponsored by Rep. Mike Nofs (R-Battle Creek), to include minimum document requirements and issuance standards for federal recognition
If you would like to receive Capitol F@cts 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
