Persistence pays off in legislative arena

by Larry Meyer
MRA Chairman and CEO

Michigan Retailers has been working on item-pricing modernization for years, and in recent months we have seen some substantial progress in the form of a House bill that would address our concerns and benefit the consumer.

So it’s discouraging to hear Governor Granholm sounding like she’s made up her mind to oppose modernization once more. It appears that this issue might be caught up in a disagreement between the governor and Attorney General Mike Cox (no fan of the current item pricing law), which is a shame.

We had hoped that the bill would have passed in the House by now, after clearing the House Commerce Committee by a 14-4 vote. At press time it was in limbo, but scheduled for House passage in September.

It’s really a matter of educating all parties involved—union leaders who have concerns about its effect on hiring, the governor, who is presumably concerned about consumer protection, and the consumers themselves.

The message: this bill strengthens consumer protection by requiring higher standards of scanner accuracy and stiffer penalties for problems, frees retailers from antiquated regulation that prevents full use of today’s technology, and makes Michigan a more attractive place for retailers in the bargain.

Despite the discouraging length of this path, patience and persistence will, I think, win the day on this issue as it has on others we’ve fought for over the years. In recent weeks we have two victories to remind us that our efforts are worth it.

This month, Michigan officially accepted full membership in the Streamlined Sales and Use Tax Agreement, the multistate pact to make it easier for online and remote retailers to collect sales taxes on out-of-state transactions.

The legislation enabling this membership was passed a few months ago, and now it’s official: we’re part of a national movement that makes it easier for retailers to collect sales tax on remote sales transactions, including Internet and catalog sales.

We hope our participation in the Agreement will also exert pressure on the federal government to make collection of sales taxes part of every online and catalog sale. The playing field may finally be made more level.

We also witnessed the governor’s signing of the SUTA-dumping bill, which we strongly supported. No longer will unscrupulous companies scam the state unemployment tax system out of its fair, experience-rated share of unemployment taxes—at least not without facing penalties.

Sometimes the road is short, sometimes it’s longer and more winding, but it’s always worth pushing our interests with state government.

MRA’s political action committee is the force behind our efforts to be heard in the state Capitol. The list of contributors to MRA PAC on page 9 is heartening—and I would love to see that list grow.

For more information about the MRA PAC or to contribute, contact Eric Rule, director of governmental affairs, at 800.366.3699 or erule@retailers.com.