Energy reform package passes House
A package of bills aimed at moving the state away from electric deregulation passed the House on a 78-30 vote. The package has been pushed by the state’s two largest utilities, who argued they could not invest in boosting the state’s energy capacity without assurances of a return on their investment.
MRA has been vocal in opposing the package, arguing that more competition, not less, will keep energy prices lower for customers. (The legislation does not affect MRA’s natural gas discount program.) The issue became wrapped up in politics when the sponsor of the main package tie-barred the legislation to bills aimed at moving the state toward an increased reliance on alternative energy sources. The tie-bar made it necessary for movement on the package in order to achieve progress on one of Governor Jennifer Granholm’s State of the State initiatives: making Michigan a center for alternative energy companies.
Momentum for the package increased last week when two major business groups jumped on board. They claimed that two changes to the bills ensured their support: the grandfathering of all current choice customers, and the elimination for choice customers of the surcharge imposed by the major utilities for new power plant construction.
The package now moves to the Senate, where it faces a less certain future. In the long run, it may be very difficult to prevent passage of the package, as the governor and speaker of the House are strongly supportive and the two utilities have retained numerous multi-client lobbying and PR firms. Senate Majority Leader Mike Bishop is taking a more guarded approach, promising a deliberative approach to the process.
Gross receipts fix introduced in House
Legislation removing the sales tax from the definition of gross receipts for purposes of the Michigan Business Tax (MBT) was introduced in the House. HB 5937 was introduced by Rep. Jeff Mayes (D-Bay City) to right a wrong contained in the recently enacted MBT.
Similar legislation was introduced in the Senate and passed that chamber, only to be stalled in the House. The Senate version, however, seeks to remove numerous other fees levied by the state, pushing up the price tag to well over $100 million. The House bill only affects sales tax and would cost the state less in “lost” revenue, making the bill potentially more palatable to House members.
Gas station accuracy verified
With the price of gasoline near an all-time high, motorists and watchdog groups are anxious to make sure they are getting all they are paying for at the pumps. In 2007, according to the Department of Agriculture’s Consumer Protection Section, 99.8 percent of gas stations inspected were pumping out the advertised quantity and quality of gasoline.
This is good news both for consumers and retailers, that even in these tough times for gas prices, gas retailers are taking good care of their customer.
KEY BILL INTRODUCTIONS:
SB 1242, sponsored by Sen. Mark Jansen (R-Grand Rapids), to phase out over a 3-year period surcharge on business tax.
SB 1245, sponsored by Sen. Gilda Jacobs (D-Huntington Woods), to clarify prohibition against telephone solicitors blocking or interfering with caller ID function.
SB 1263, sponsored by Sen. Michelle McManus (R-Lake Leelanau), to revise definition of gift and clarify issuance of process for declaratory rulings.
HB 5937, sponsored by Rep. Jeff Mayes (D-Bay City), to exclude sales tax from gross receipts definition.
HB 5950, sponsored by Rep, Bill Huizenga (R-Zeeland), to exempt artist materials and works sold in a cultural redevelopment district
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