Michigan Developments
Eric Rule,
Director of Governmental Affairs

Debate continues on telemarketing package
Members of the conference committee negotiating a package of telemarketing regulations continue to struggle with how to properly implement a state “Do Not Call” list. Discussions with conferees indicate that some are determined to severely limit use of the telephone to conduct commerce.

The House and Senate passed differing versions of the legislation late last fall. Much of the contention over the package centers on whether to exempt certain businesses from the requirements.

MRA and other business groups have been pursuing a “prior business” exemption. While the current conference report contains such an exemption, its focus is very narrow. Reportedly, the language would allow a business to contact a customer only if the business had been compensated by that customer for a good or service within the past 12 months and the solicitation call is related to that same good or service.

MRA is continuing to talk to committee members about how the bill can be amended to allow legitimate businesses to contact existing customers without violating the “Do Not Call” list provisions. Conferee Sen. Joanne Emmons (R-Big Rapids) recently agreed to hold a meeting with MRA and other interested parties to discuss this possibility.

Legislature hikes unemployment benefits
After months of arguing over what changes should be made to the unemployment insurance benefits Michigan workers receive, legislators finally reached a consensus on the issue.

The House and Senate secured enough votes to accept the conference committee report, which raises the maximum weekly benefit level from the current $300 to $362, with no waiting week before receiving benefits.

Gov. John Engler signed the bill on April 26; the benefit increase took effect the following Monday, on April 29.

Security guard regulations clear Senate
A package of bills to increase state oversight and regulation of private security guards passed the Senate.

The bills raise licensing fees for individuals registering as private security guards and for firms that train them.

The legislation does not apply to store personnel who perform security functions.

The package now goes to the House.

Overcharge bounty sought for tagless items
Sen. Bill Bullard (R-Milford) introduced Senate Bill 1226 to allow consumers to recover a bounty on overcharged items that do not bear a price tag. Currently the law stipulates that the item itself must be marked with the price in order to meet the bounty requirement.

Rather than see this bill as negative, MRA is advocating that the proposal become part of the item pricing reform package planned for this fall. Once it is no longer necessary to individually mark a price on each item, such a provision can enhance overall consumer protection.

Retailers join Streamlined Sales Tax council
Gov. Engler named four retail representatives to a new business advisory council overseeing development of streamlined collection procedures for sales and use tax.

Thea Baird, director of corporate taxes for Meijer Inc., and William Saad, assistant controller for state and local taxes for Kmart Corp., were named to represent Michigan-based retailers. Valerie Guerrieri, tax director for the CIT Group, and Warren Townsend, director of sales, use and product taxes for Wal-Mart Stores Inc., were named to represent out-of-state retailers.

Cigarette tax increase may come this fall
Despite earlier opposition, Sen. Joel Gougeon (R-Bay City) still plans on pursuing an increase in the state cigarette tax. He apparently will wait for the lame-duck session to push the bill.

Gougeon is believed to be seeking a 20-cents-a-pack increase. Gougeon chairs the Senate Appropriations Subcommittee on Community Health and sees the tax increase as a way to help plug a $400 million hole in that budget. A 20-cent increase would raise an estimated $200 million.

The last time the state cigarette tax was increased, cigarette sales dropped considerably.

Update from Washington
James Goldberg,
MRA Washington Counsel

Postage prices will increase June 30
The U.S. Postal Service has announced that, beginning June 30, the cost of mailing a letter will go up to 37 cents, while the price of a postcard stamp will rise to 23 cents.

The 10-percent increase is the result of negotiations between the Postal Service and the nation’s major mailers. Though the economy has begun to pick up, postal revenue continues to decline and losses have widened.

When announcing the June 30 increase, the Postal Service stated that “continual rate increases are not the long-term answer to maintaining a national postal system.” The agency has outlined a transformation plan involving greater flexibility to set rates and close inefficient post offices.

Bill sets standards for state IDs
In the wake of last year’s terrorist attacks, Congress may be ready to establish national standards for driver licenses and other state-issued identification cards.

Legislation authored by Sen. Richard J. Durbin (D-IL) would set federal standards for granting licenses; build in high-tech anticounterfeiting measures, such as biometric computer chips storing retinal scan or fingerprint data; and provide stiffer penalties for the manufacture and use of fake IDs.

More than 200 valid forms of driver licenses and ID cards are issued by states and other levels of government, and individual agencies have widely differing requirements for issuing these cards. Kansas, for example, does not require any document other than a photo to obtain a driver license, opening the door to the use of false names and addresses.

The Durbin plan has the strong support of police chiefs and the nation’s motor vehicle departments.

More reliable driver licenses could benefit retailers, who frequently ask for such identification when customers pay with checks or purchase age-restricted products such as tobacco and alcohol.

OSHA announces ergonomics guidelines
The Occupational Safety and Health Administration (OSHA) has announced details of its four-point plan to protect workers from job-related repetitive-stress injuries.

• OSHA will develop industry- or task-specific guidelines for several industries, based on current incidence rates, and will encourage other industries to develop ergonomics guidelines. The nursing home industry is reportedly the first industry to be targeted for OSHA guidelines.

• OSHA will conduct workplace inspections for ergonomic hazards and issue citations or ergonomic alert letters where appropriate. The agency will conduct follow-up inspections or investigations within 12 months for certain employers who receive hazard alert letters. Retailers whose employees lift heavy objects, such as appliance and consumer electronics dealers, may be targeted.

• OSHA will develop a comprehensive set of compliance-assistance tools aimed at helping businesses, especially small businesses, address ergonomic issues in the workplace.

• OSHA will establish an advisory committee to identify gaps in research on applying ergonomic principles in the workplace.
Several members of Congress have attacked the plan, noting that the White House doesn’t plan to increase the Labor Department’s budget to help fund the effort.

Retailers support HDTV advocacy group
Consumer electronics retailers are supporting a recently formed consumer-rights group that plans to lobby Congress and educate consumers about the benefits of high-definition television (HDTV).

The development and acceptance of the new HDTV technology has been stalled by concerns of the motion picture and recording industries that any new equipment should have strong anticopying protection to prevent piracy of films and recordings.

Federal Communications Commission Chairman Michael Powell has proposed voluntary measures for broadcasters and cable and satellite operators to speed the transition. Senate Commerce Committee Chairman Ernest Hollings (D-SC) has introduced legislation to require antipiracy standards to be incorporated into all home entertainment equipment and personal computers.

MRA’s Washington Office supports the efforts of the Consumer Electronics Retailers Coalition to encourage the rapid development of HDTV and other new technologies with a minimum of restrictions.

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