Governmental Affairs: April 25, 2014

State senator suggests alternative minimum wage increase

In an attempt to stop the momentum behind the minimum wage ballot proposal, Sen. Rick Jones (R-Grand Ledge) announced plans to introduce legislation raising the minimum wage from $7.40 to $8.15. Jones’ legislation would also increase the minimum tipped wage employers from $2.65 to $2.75. It is uncertain whether or not the bill, once introduced, will receive any traction. Some lawmakers have an interest in preventing the minimum wage proposal from reaching the ballot since it is likely to drive up voter turnout and may have an impact on their own elections. Senate Majority Leader Randy Richardville has been a vocal opponent to increasing the minimum wage and could be a major roadblock in the process. MRA is paying close attention to the minimum wage issue and whether or not supporters are able to gather enough petition signatures to put the issue on the November ballot.

Compounding and PIC bills receive hearing

The Senate Health Policy Committee held a hearing yesterday on legislation (SB 704 & SB 904) that places additional regulations, procedures, and record-keeping requirements on compounding pharmacists and requires a pharmacy to designate a “pharmacist in charge” (PIC). The bills were prompted by a case in Massachusetts where a pharmacist made a calculating error that caused patient harm. The investigation showed that accurate records were not maintained at the facility, which may have prevented the error from occurring. The Attorney General’s office and Department of Licensing and Regulatory Affairs (LARA) testified in support of the legislation. A pharmacy manager testified and while supportive mentioned a concern over language that classifies compounding as low, medium, or high risk, which are different classifications than are used by pharmacists. The committee did not take a vote on the bills but is expected to in the next few weeks.

Recycling

Earlier this month, Gov. Snyder announced the results of the recycling workgroup MRA participated in at a recycling facility in Dundee. The statewide plan focuses largely on increasing convenient access to residential recycling in every county by 2017 and rising above the Great Lakes states’ average in statewide participation in recycling. The 15-point plan released by the Department of Environmental Quality (DEQ) focuses on methods to measure progress using data from waste haulers and material recovery facilities, educational outreach to communities, waste management and residents, and developing markets for recycled materials. The governor created a two-year Michigan Recycling Council tasked with addressing the other components of a comprehensive recycling plan, including funding sources and a potential change to the bottle bill law that could remove bottle and can collection from retail stores.

FDA proposes new rule to regulate e-cigarettes

The FDA released a draft rule yesterday that proposes to set regulatory guidelines for electronic cigarettes (e-cigarettes), cigars, pipe tobacco, nicotine gels, waterpipe (or hookah) tobacco, and dissolvables not already under the FDA’s authority. It is uncertain how exactly these rules may impact pending legislation in Michigan that would ban sales of e-cigarettes to minors. Bill sponsors are pushing for continued movement to keep e-cigarettes away from kids since the federal rule-making process can take several years. Legislative leaders indicated that SB 667668 and HB 4997 would be reviewed and may be sent back to the Regulatory Reform Committee before a vote on the House floor. The committee is scheduled to discuss a similar bill next week, HB 5393, which classifies e-cigarettes as tobacco products.

Budget movement – HICA fix included

Lawmakers in both chambers took a big step towards completing the budget when the house and senate appropriations committees recently each approved its version of the state budget bills. The Department of Community Health (DCH) bill in the senate included a one-time appropriation of $110 million to cover the Health Insurance Claims Assessment (HICA) shortfall and the house version includes $115 million. House appropriations chairman Rep. Joe Haveman (R-Holland) stated his belief that lawmakers will need to prepare for future HICA shortfalls and that budget shifting will likely be the “permanent” solution for the continued shortfall. For more information about the HICA shortfall, please see previous coverage of the issue.

Dispending fee language included in DCH budget

MRA worked to ensure that the Department of Community Health budget approved by each chamber included pharmacy dispensing fees. Dispensing fee rates have been included in the past but were not included in the governor’s proposal this year. The fees were included and remain the same as past years at $2.75 for regular customers or $3.00 for nursing home residents.

Other important items to note:

  • The House Transportation Committee will be taking testimony on April 29 that makes up parts of Speaker Bolger’s $450 million transportation funding plan.
  • Legislation that would require utility companies to provide the Public Service Commission with its cost allocation information and rate design methods (HB 5476) has been introduced and will receive testimony in the House Energy and Technology Committee on Tuesday, April 29.
  • A package of bills addressing sales of pseudoephedrine to individuals convicted of a meth-related offense (SB 535SB 563564SB 756HB 53635364) is scheduled for a hearing in the package House Criminal Justice Committee on April 30. MRA is supportive of the bill package as it handles the problem of meth abuse without making drugs containing pseudoephedrine or ephedrine prescription-only.