Gov’t Affairs News – tax appeal changes, plastic bags and more

Committee discusses Tax Tribunal changes

The House Tax Policy Committee held two weeks of hearings on legislation that HB 5578 could have a big impact on commercial property taxes and tax appeals. MRA testified in opposition to the changes and was joined by a number of other business groups expressing strong concerns. HB 5578 would drastically change how the Michigan Tax Tribunal reviews appeals, its powers and its ability to consider comparable sales for claims ineligible for the residential and small claims division. Under the legislation, the tribunal would be required to prepare a detailed independent valuation for each appeal. This would lengthen the appeal time and the cost to the tribunal, taxpayers and local units of government. The House Tax Policy Committee does not plan to take up the bill next week but may vote the following week.

Plastic bag/container pre-emption bill

On April 27, the Senate Commerce Committee reported legislation to pre-empt local ordinances related to plastic bags and containers. SB 853 would prevent a county, city, township or village from adopting ordinances banning the use of, sale of, or requiring a fee on a bag, cup, bottle or other packaging, whether reusable or single-use, that is made of cloth, paper, plastic, cardboard, corrugated material, aluminum, glass, post consumer recycled material, or similar material and is designed for transporting, consuming or protecting merchandise, food or beverages.

Meanwhile, the Washtenaw County Commission set a public hearing date to discuss an ordinance banning single-use plastic bags in grocery stores and requiring a 10 cent fee for paper bags. The county will hold a public hearing on the ordinance on Wednesday, May 18 in Ann Arbor.

Annual legislative reception a success

Michigan Retailers Association held its annual legislative reception on April 26 and had excellent attendance. There were nearly 100 attendees overall. Earlier in the day, Senate Minority Leader Jim Ananich spoke to MRA’s Board of Directors.

The event was a great success and wouldn’t have been possible without our sponsors’ continued support. Thank you to all our sponsors: Amway, AutoZone, Capitol Strategies Group, Dykema, Genoa a QoL healthcare company, Kroger, Meijer, Michigan Nursery and Landscape Association, National Association of Chain Drug Stores, National Retail Federation, Retail Industry Leaders Association, Target, Walgreens and Walmart. For those who were able to attend, we hope you had a great time and look forward to another successful event next year!

Candidate filing deadline for House candidates

Tuesday, April 19, was the filing deadline for candidates. Initially 417 candidates filed to run for the House in the August 2 primary, but that number dwindled to 393 after 24 candidates withdrew their names. 49 candidates filed to run for the 14 congressional seats in Michigan. All 110 members of the House of Representatives are up for election in 2016. House members can serve up to three two-year terms, while Senate members may serve up to two four-year terms. Senate members are on the same election schedule as the governor and will next be up for election in 2018. Also on the ballot in Wayne County is a special election to fill the currently vacant 4th District Senate seat. Former Senator Virgil Smith resigned after he was charged with the destruction of property and sentenced to 10 months in the Wayne County Jail.

MRA will once again circulate a questionnaire to determine which candidates for state house meet our criteria as Friends of Retail. The results will be shared with members to give retailers guidance in the August 2 and November 8 elections on selecting elected officials who, if elected, will defend retailers at the Capitol.

Other important items to note:

GROCERY/CONVENIENCE

  • Bottle deposit expansion: Legislation introduced in the House as HB 5596 on April 26 and referred to the House Natural Resources Committee would expand the bottle deposit law to include water bottles, juice, and most beverages except milk and milk alternatives. Similar legislation was introduced in the Senate last year and has not received a hearing.
  • SDD license: SB 920 introduced on April 26 modifies the local restrictions on SDD licenses by allowing the Liquor Control Commission to waive the distance requirements between two SDD licensees if an applicant meets one of the following criteria: purchased less than $50,000 in spirits within the last year, has a class A or class B hotel license, the two locations are separated by a major thoroughfare of 4 or more lanes, located in a neighborhood shopping center, or if it is a transfer of an existing license. The bill was referred to the Senate Regulatory Reform Committee.
  • Quota system for SDM licenses: SB 929, introduced on April 28, would implement a quota limitation for specially designated merchant (SDM) licenses. The bill would limit the number of licenses to 1 for every 1,000 residents in a city, village or township. The bill would also allow the Liquor Control Commission to waive the quote limitation if an applicant sells motor fuel and applies within 60 days of the effective date of the bill. The bill was referred to the Michigan Competitiveness Committee.

PHARMACY

  • Opioid antagonists: The House Health Policy Committee reported HB 5326 on April 26. The bill would allow pharmacists to dispense an opioid antagonist to any individual seeking to assist a person who may experience an opioid overdose.
  • Opioid overdose insurance coverage: SB 915 and HB 5599 introduced on Tuesday, April 26 would require health insurance coverage for drugs designed to prevent opioid overdoses. SB 915 was referred to the Senate Health Policy Committee and HB 5599 was referred to the House Insurance Committee.
  • Pharmacist refusals: On Tuesday, the House Health Policy Committee took testimony on HB 5587. The bill would allow pharmacists to refuse to dispense a prescription and exempt the pharmacist from civil liability if the pharmacist believes the prescription was not written by a prescriber in good faith and is being filled for a nonmedical purpose. The bill is scheduled to come up for further discussion on May 10.
  • Smurfing: On Thursday the Senate unanimously approved legislation aimed at cracking down on “smurfing” or the attempt to solicit another person to purchase pseudoephedrine for an individual who intends to use it to make meth. HB 4769 Increases penalties for manufacture of methamphetamine near a school or library and HB 4864 ensures that a stop-sale alert is generated at a pharmacy for 5-years after an individual has been convicted of attempted “smurfing.”
  • Telehealth regulations: On April 27, the Senate unanimously approved SB 753 to regulate telehealth in Michigan. The bill was referred to the House Health Policy Committee.

REGULATIONS

  • Drones: Legislation to allow for the use of drones as authorized by the FAA was introduced as SB 917 on Tuesday, April 26. The bill adds new definitions of unmanned aerial system and unmanned aircraft into the state’s aeronautics code and authorizes the use of drones if used in a manner consistent with the FAA authorization and licensure. The bill was referred to the Senate Transportation Committee.
  • Energy: The Senate Energy and Technology Committee has held several hearings on legislation to reform the state’s energy regulations. The committee will continue discussions on SB 437438 next week.
  • E-waste: Legislation to restructure Michigan’s E-waste program was introduced on April 28 as SB 922 and referred to the Senate Natural Resources Committee. MRA participated in workgroups with the Department of Environmental Quality on the subject last year and language giving retailers flexibility to meet the education requirement was included in the introduced bill. Under the legislation, retailers selling computers (including tablets), monitors, televisions, laptops, printers, and smartphones (that have a 4 inch or larger screen size must provide consumers information on where and how to recycle electronic devices. The notice requirement can be met through providing information on a website, including the information in a catalog, or distributing/displaying department-generated or retailer-generated materials in the store.
  • State agency rules: A bill to prohibit rules adopted by state agencies from bring more stringent than federal regulations was introduced as HB 5613 on April 28 and referred to the House Regulatory Reform Committee.

OTHER

  • Snowplow lights: On Thursday, the Senate Transportation Committee approved HB 5247, a bill that would allow oscillating green, yellow or amber lights to be used on a snowplow vehicle that is also used in other non-winter activities.
  • Work opportunity program: SB 946 introduced on Tuesday would create the Work Opportunity Employer Reimbursement Program. Establishes and implements a work opportunity employer reimbursement program; and prescribes the powers and duties of certain state agencies and officials.