Gov’t Affairs News: Plastic bags, drones and more

Michigan State Capitol building, outside the House Chamber on December 7, 2016.

Plastic bag bill heads to governor

The Michigan House of Representatives approved SB 853, the plastic bag and auxiliary container preemption bill, by a bipartisan vote of 62-46 on Thursday, December 1. The bill was enrolled yesterday and heads to the governor’s desk. MRA sent a letter encouraging Gov. Snyder to sign SB 853, stressing the narrow window of opportunity to stop Washtenaw County and other communities from implementing bag bans and bag taxes. Policing plastic bags and auxiliary containers is not a core function of local government, which is why the state should rightfully assume all authority over these private business practices.

Senate committee discusses school calendar

The Senate Education Committee discussed SB 567 on Tuesday, a bill that would remove the requirement for Michigan schools to start after Labor Day. The bill would allow school districts to determine the school start date but would still protect a four-day weekend around Labor Day. The committee did not take any action on the bill. The legislature plans to have a deeper discussion on switching to or allowing a balanced calendar year next year during budget discussions.

Proponents of the bill argued that moving up the start date would reduce student retention loss and allow teachers to spend more time working on new material rather than re-teaching. Proponents also argued that students and families are typically ready to come back to school in mid-August and that it’s difficult to continue the school year past mid-June due to summer vacations. In other states with an earlier start date, students log more classroom hours before taking national standardized tests, which better prepares them to perform well.

The committee raised questions about the impact on tourism and small businesses dependent on tourism through Labor Day. They pondered whether losing the additional weeks of economic activity that helps raise additional funds for schools through the state’s sales tax would impact school funding. Proponents were sympathetic to businesses but stressed their belief that students and education must be the state’s priority.

Drone taskforce bill soars out of committee

On November 29 the House Communications and Technology Committee reported SB 992, legislation that would allow the use of drones – except to interfere with law enforcement or if used for stalking or surveillance – and creates a taskforce to make other future recommendations. Local governments would not be permitted to enact an ordinance, policy or resolution regulating ownership or operation of a drone, but could promulgate rules, regulations and ordinances within the boundaries of the political subdivision. The bill does not attempt to strictly regulate drones. Instead it clarifies that current illegal activities (stalking, surveillance, violations of restraining orders, etc.) are also illegal if a drone is used to perform those activities

The bill was amended on the House floor to clarify what a violation of an individual’s reasonable expectation of privacy is related to captured photographs, video or audio recordings. Other changes added two additional members to the taskforce and further clarified terms and meeting expectations for the taskforce. It is expected that the House will vote on the bill next week before it adjourns.

Other important items to note:

GROCERY/CONVENIENCE

  • Beer and wine quota system: Legislation that would remove the $250,000 inventory requirement and create a quota system for gas stations seeking to sell beer and wine was approved by the Michigan House yesterday 69-37. The bill, SB 929, was amended on the House floor to reinsert a 60-day exemption from the license quota system.
  • Beer growlers: Legislation allowing retailers to refill and sell beer growlers as long as following the state’s guidelines was approved by the Senate unanimously on November 30 as SB 973 and was reported by the House Regulatory Reform Committee on Wednesday.
  • Michigan Craft Beverage Council membership and duties: The House approved legislation on December 1 that seeks to expand membership on the newly renamed Michigan Craft Beverage Council (formerly known as the Grape and Wine Council) and the duties of the council. There is currently a position on the council for a retailer holding an SDM license or a restaurant with a class C license. HB 5025 would expand to include a nonvoting position for a retailer with an SDM or SDD license that does not hold an on-premises license. The bill was scheduled to come up for a hearing on Wednesday in the Senate Regulatory Reform Committee but needs more work and will be reintroduced and considered next year.
  • Third party delivery of beer and wine: The House Commerce and Trade Committee yesterday reported SB 1088, legislation that would allow a retailer located in Michigan with a Specialty Designated Merchant (SDM) license to use a third party to deliver beer and wine. The bill seeks to put Michigan retailers on level footing with those outside of Michigan that currently can ship beer and wine to customers. The bill goes further and removes provisions in current law that allow the shipment of beer and wine by out-of-state retailers that have an equivalent license to a Michigan SDM to use a third-party to deliver beer and wine.

LABOR

  • Replacement workers: HB 4630, approved by the House on Wednesday would eliminate the requirement to notify a new employee hired to replace a striking worker that a labor dispute is occurring. The bill was referred to the Senate Commerce Committee.
  • Striking workers: The House voted 57-50 on Wednesday to approve HB 4643, a bill inspired by the $15 minimum wage issue picketers. Under current law, picketers can be charged with a trespassing violation. The bill creates a new mass picketing violation for protestors that block business doors and traffic. The bill also includes a $10,000 fine for groups that organize an illegal picket. The bill was referred to the Senate Commerce Committee.

PHARMACY

  • Opioids: The Senate Health Policy committee approved HB 5326 on November 29. The bill was unanimously approved by the Senate on Wednesday and the House Health Policy Committee approved SB 805806 on Wednesday. These bills would allow prescribers to prescribe and pharmacies to dispense opioid antagonists to school boards and provide for training and policies on the administration of opioid antagonists in public schools.
  • Pseudoephedrine limits: HB 5667, legislation that would set monthly and annual limits on the amount of pseudoephedrine an individual can purchase, was approved by the House on Wednesday. The current monthly limit is 9 grams in a 30-day period and would be reduced to 7.2 grams per 30-days and 61.2 grams annually. The bill was referred to the Senate Health Policy Committee.
  • Telehealth: On December 1, the House unanimously approved SB 753 to regulate telehealth in Michigan. The bill was enrolled and now heads to the governor’s desk.

REGULATIONS

  • Auto parts: The House approved HB 5857, the revised auto parts bill, on December 1. The bill no longer contains language that would create a competitive disadvantage for auto parts stores and that caused the governor to veto the original bill, HB 4344. The bill was also reported by the Senate Regulatory Reform Committee on Wednesday and now heads to the full Senate for a vote.

OTHER

  • DDAs: HB 5851, legislation approved by the house 60-48 on December 1, was referred to the Senate Economic Development Committee. The bill seeks to require additional transparency from DDAs and other tax capture districts. It would also prohibit the ability to capture taxes for TIF districts from special millages approved by voters after December 31, 2016. TIF districts could still capture taxes from renewals of millages that were approved before December 31, 2016. MRA has learned that if the bill is taken up, changes will be made in regards to prohibiting tax capture of special millages.
  • Patent reform: The House Judiciary Committee yesterday reported SB 289, legislation aimed at stopping bad-faith patent infringement, or patent trolls. The bill would require the courts to force a person who is found to have made a bad-faith assertion of patent infringement to post a bond in an amount equal to a good-faith estimate of the target’s costs to litigate the claim. The bill now heads to the full Senate for consideration.