In this issue:
HB 4806 & 5445 would allow private businesses to charge for use of electric vehicle charging stations on their property if registered with the state. As proposed, registration fees would not exceed $75 and would allow an entity to register with the state’s Department of Agriculture and Rural Development. The department would partner with the state’s public service commission to use their tools/expertise in ensuring fair and accurate rates are being charged to the public. The department’s weights and measures division would regulate the fees/rates in a manner similar to how it monitors gas stations.
The bills would not require registration if public access and use of the electric charging stations is provided free of charge. Registered entities would not be considered public utilities. The goal of the bills is to provide an incentive for private businesses and other entities to install more electric vehicle charging stations across Michigan. Next step: House Ways and Means Committee. MRA Position: Support.
The Senate Regulatory Reform Committee heard testimony this week on bills that further restrict access and marketing towards minors on tobacco and vaping products.
SB 781–786 was met with equal amounts of support from the vaping industry and opposition from health care groups who once again, felt the legislation didn’t go far enough. Testimony from groups like Tobacco Free Kids and healthcare professionals asked legislators to require licensure for all tobacco sales, not just for vaping products. They cited statistics from local undercover sting operations that claimed retailers were not adequately checking ID and stopping sales.
MRA submitted written testimony in support of the bill package and called for an amendment to SB 784 to instead allow ID scanning as one option to meet the age verification requirement for all tobacco products including vaping products. Our fear if the bills go through without changes, is that soon legislators will come back and try to require ID scanning for all age-restricted products including sales of alcohol.
The FDA in its “Tips for Retailers: Preventing Sales to Minors” guide recommends retailers determine which age-verification system is best for their business from stand-alone age calculator systems, point-of-sale systems that prompt clerks to check ID and/or enter date of birth and systems that require scanning an individual’s ID. The guide points out that ID scans may not work with passports or other forms of ID. The FDA recommends retailers adopt internal controls and perform regular compliance to ensure proper age-verification occurs on every sale.
The bills considered by the committee would add a 24% tax on the wholesale price of liquid nicotine solutions, require a license to sell vaping products, ban advertising and marketing aimed at minors and require retailers use age verification tools like a license scanner before selling vaping products. It would also update the purchase age for tobacco from 18 to 21 on state-required signs and increase penalties for noncompliance.
The committee plans to take additional testimony next week and did not indicate when the bills may come up for a vote but we expect it will be soon. If we are unsuccessful in getting the amendment added to the bills in the Senate, we will pursue changes in the House. Next step: Senate Reg. Reform committee vote. MRA Position: Support with amendment.
Earlier this week the Michigan Department of Health and Human Services announced its revised plan for changes to pharmacy Medicaid reimbursement. As members may recall, in January the state shelved its original plan to switch pharmacy Medicaid reimbursement from a managed care model to fee-for-service (FFS) reimbursement methodology. Under its revised plan, the department will implement a single Medicaid Preferred Drug List (PDL) designed to maximize drug manufacturer rebates the state can claim. This is anticipated to generate additional savings for the state. It also proposed raising the Medicaid Health Plan dispensing fee for independent pharmacies to a minimum of $3. Currently, health plan dispensing fees are set by the individual plans, many of which are below $3.
Earlier this week, Gov. Whitmer created a task force focused on lowering the cost of prescription drugs by signing Executive Order 2020-01. The Prescription Drug Task Force will consist of leaders from the departments of Health and Human Services, Insurance and Financial Services, and Licensing and Regulatory Affairs and from the Michigan Legislature including the chairs of the House and Senate Health Policy Committees. The group is tasked with identifying strategies and actions that will increase transparency in drug pricing and lower costs for Michiganders. The Task Force must submit a final report to the governor detailing its findings and recommendations by August 15, 2020.