Gov’t Affairs News – direct wine shipments, judicial levies, and more

Michigan's Capitol Building.

Senate committee discusses judicial levies

Over the last two weeks, the Senate Local Government Committee heard testimony on legislation that seeks to address how judgments against municipalities can be funded. SB 630631 would treat a settlement for a lawsuit against a municipality as a garnishment rather than a judicial levy, requiring local governments to find the funds within its current budget or to ask residents to approve new funds. The bill sponsor, Senator Mike Shirkey (R-Clarklake), raised concerns that judicial levies allow judges to artificially increase millage rates without a vote of the people. He continued to question the balance of judicial levies and constitutional tax limitations put in place by the 1978 Headlee amendment to the Michigan Constitution.

Municipalities raised strong concerns about local units facing bankruptcy if limited to using existing revenues. Local units of government also pointed out that laws dealing with municipal judgments predate the Headlee amendment, which placed a cap on property taxes.  The committee chairman plans to continue conversations with interested parties before making a decision on the legislation.

Direct wine shipment bill hearing on March 9

The House Regulatory Reform Committee plans to discuss a bill on March 9 that would allow Michigan-based retailers to ship wine via a third party shipper directly to a customer. The bill, HB 4125, would allow a retailer located in Michigan to sell wine and beer via mail order, internet, telephone, computer, device, or other electronic means so long as all applicable taxes are collected and paid to the Liquor Control Commission (LCC) and the Department of Treasury. A retailer with an SDD license may use a third party shipper (UPS, FedEx, etc) to deliver the wine to a customer. The bill would prohibit direct wine shipments from out-of-state shippers. The premise of the bill is to stop illegal shipments from out-of-state companies while putting retailers on equal footing with wineries. MRA is generally supportive of the legislation but is seeking clarification on how the LCC will determine eligible retail locations before taking a formal position.

Other important items to note:

GROCERY/CONVENIENCE

  • EBT sales of uncooked meats: Legislation introduced on Tuesday, as SB 825 would prohibit the use of EBT bridge cards to purchase uncooked seafood, meat, or poultry if the uncooked items would be cooked on the premises. The bill was referred to the Senate Families, Seniors, and Human Services Committee.
  • Social media promotions: Legislation to define and allow social media promotions in advertising alcohol sales was reported by the House Regulatory Reform Committee on Wednesday. The bill, HB 5257, would allow retailers, wholesalers, manufacturers, vendors and brokers to use unpaid social media to advertise an on-premise brand promotion, tastings or which retail locations offer a specific product.

PHARMACY

  • MAPS opioid-antagonist reporting requirements: SB 828, introduced on Tuesday, would remove the reporting requirement for opioid-antagonists through the Michigan Automated Prescription System (MAPS). The bill specifically exempts reporting when a pharmacy dispenses buprenorphine or a drug containing buprenorphine and naloxone hydrochloride. The bill follows suggestions from the Michigan Prescription Drug & Opioid Abuse Task Force report released in October 2015. The task force suggestions seek to provide easier access to life-saving medication that can reverse the effects of heroin or other opioid drugs in the event of an overdose.
  • Medication Synchronization: On Tuesday, the House approved SB 150 105-0. SB 150 would make the synchronization of medications easier by prorating the prescription costs for patients. The bill was enrolled on Wednesday and should be presented to the governor for his signature soon.
  • Pseudoephedrine: On February 23, the House Criminal Justice Committee reported SB 409410 (the bills mirror HB 47674768 which was reported by the committee in October). Over the last few years, the legislature passed legislation to make it a felony to solicit another person to purchase or obtain pseudoephedrine if it would be used to make meth. SB 409-410 would further crack down on “smurfing” by making it a misdemeanor to attempt to solicit someone to purchase pseudoephedrine. A person found guilty could receive up to 1 year in prison or be required to pay a fine of up to $1,000.

REGULATIONS

  • Franchises: Gov. Snyder signed HB 50705073 into law as Public Acts 17-20 of 2016 on February 23. The bills clarify franchisee/franchisor responsibilities under various state acts related to MIOSHA violations, minimum wage violations, and contributions and benefit laws. The new laws take effect on May 23.

TAXES

  • Sales Tax Holiday: New legislation to provide for three Sales Tax holidays in 2016 for school, camping, and hunting supplies was introduced as HB 5428 on Thursday. The bill was referred to the House Tax Policy Committee. The bill is not expected to receive serious consideration since several similar bills have failed to receive a hearing during the 2015-2016 legislative session.

OTHER

  • Pet sale/breeder regulations: On Wednesday, the House voted 83-20 to approve legislation adopting a number of requirements on large-scale breeding kennels and requiring pet health certificates for dogs, cats, and ferrets as well as certain vaccinations and treatments for dogs and cats. The bill, HB 4898, seeks to crack down on puppy mills and was referred to Senate Appropriations Committee.
  • Recycling measurement: On February 23, the House Natural Resources Committee reported SB 507. The bill is designed to collect information on recycling already happening in Michigan, as a step toward determining a statewide comprehensive recycling plan. SB 507 does not require retailers to report recycling activities.
  • Snowplow lights: On February 23, the House Transportation Committee heard testimony on HB 5247, a bill that would allow oscillating green lights to be used on snowplow vehicles. Currently, only flashing yellow or amber lights can be used.