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Governmental Affairs


February 29, 2008

MRA Fights for Retail Vision Clinics

Many retail vision clinics would be prohibited from operating as they currently do in Michigan as a result of language inserted in a package of bills seeking changes to various “professional services.” House Bills 5356 – 58, sponsored by Rep. Bill Huizenga (R-Zeeland), would amend three laws to distinguish between “professional services” and “services in a learned profession” and to define which law each type of business would be required to file under: the Professional Service Corporation Act or the Business Corporation Act.

Currently, retail vision clinics are incorporated under the Business Corporation Act and employ licensed optometrists and opticians. The bills would require these businesses to be owned—and their boards of directors be made up of—licensed optometrists. Such a change would place many businesses in peril.

Lawmakers in the House believed the new language would not affect retail clinics; the bills passed in the House and moved to the Senate. Since then, MRA has been educating lawmakers about the actual damage the language would inflict on businesses and jobs in the state.

The Senate Economic Development and Regulatory Reform Committee is tentatively scheduled to take the bills up Wednesday. Meetings with the committee chair’s staff and other committee members appear promising. MRA will continue to inform lawmakers about the potentially devastating impact the bills would have on Michigan jobs.

Foreign Container Issue Progresses

The problem of redeeming deposits on out-of-state bottles and cans continues to receive attention, as a workgroup consisting of concerned groups and impacted businesses has met over the past month. Senator Ron Jelenik (R-Three Rivers) has tasked the workgroup with coming up with a workable solution within the next few months.

MRA is keeping a vigilant eye on the workgroup’s progress to ensure that retailers will be spared additional costs associated with retrofitting existing Reverse Vending Machines (RVMs) or buying new, more costly machines with advanced technology. The state’s Unclaimed Bottle Deposit Fund has been identified as the source for retail funding of these capital costs, since the state would reap the greatest benefit from a decrease in foreign redemption.

The group is scheduled to reconvene in two weeks to wrap up final discussions prior to marking up the draft bill, which was requested by the Michigan Beer and Wine Wholesalers Association.

Water Package Moves

The Senate package regulating new large-scale water withdrawals has been voted out of the Natural Resources Committee. The package is a companion piece to the recently passed Great Lakes Compact legislation.

While environmental groups were not entirely pleased with the package, Committee Chair Patricia Birkholz (R-Saugatuck) praised it as a great balance between business interests and environmental stewardship. The legislation grandfathers in existing withdrawals of less than 2 million gallons a day. New or increased withdrawals would be required to undertake a permitting process using a new, computerized tool that employs GPS technology to measure potential impacts to the water source.

Governor Wants Increased Road Funding

Governor Jennifer Granholm publicly stated her desire for an economic stimulus package with additional funding for new road construction projects. Granholm wants to use $150 million over five years to accelerate 34 road, bridge and safety projects this year, funded by the sale of $150 million in bonds. The Michigan Transportation Commission unanimously approved the measure this week.

State transportation groups don’t think the amount is nearly enough, however, claiming the state needs at least $1 billion a year to keep up with the state’s deteriorating roads. The Michigan Infrastructure and Transportation Association also criticized the way the projects would be funded and has instead called for an increased gas tax, phased in over several years, to raise the billions of dollars needed for the state’s roads.

Granholm officials claim the stimulus package for road funding would retain 2,100 jobs in the struggling construction industry.


KEY BILL INTRODUCTIONS:

No bill introductions at this time.


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Kathleen Wilson, Administrative Assistant to the Governmental Affairs Office at
kawilson@retailers.com.
Michigan Retailers Association
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