MRA’s legislative reception a success
Last week, Michigan Retailers Association held its annual legislative reception and had great turnout from legislators and lawmakers. This year we had 39 legislators attend and nearly 100 attendees overall. The event was a great success and wouldn’t have been possible without our sponsors continued support. Thank you to all our sponsors for their generous support: Amway, Best Buy, Capitol Strategies Group, Dykema, Genoa Healthcare, 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!
Transportation funding package picks up speed
This week, the speaker’s $450 million transportation plan cleared the House. The bills received votes in the House Tax Policy Committee and House Transportation and Infrastructure Committee on Wednesday and a floor vote on Thursday.
- Shifts existing sales and use tax dollars from the state’s general fund to roads (HB 5459, 5492)
- Replaces the current fuel taxes with a six percent wholesale gas tax (HB 5477, 5493)
- Increases permit fees for overweight trucks to $500, which brings the state in line with neighboring states (HB 5452)
- Increases fines for overweight trucks by doubling the fee in each weight category for each pound in excess of the limit (HB 5453)
- Requires performance warranties for all new construction and reconstruction projects (HB 5460)
- Requires state and local road agencies develop competitive bidding practices (HB 4251, 5167)
- Modifies registration fees for pre-1984 vehicles weighing 8,000 pounds or less (HB 4630)
The bills received some criticism from democrats for not including mass transit projects as eligible for the shifted sales and use tax dollars. It should be noted that the plan only raises approximately one third of the annual $1.2 – 2 billion the governor has asked for and road experts believe is necessary to fix Michigan’s roads and keep them in top condition. We expect the plan will be modified in the Senate and will continue to follow the road funding talks closely.
Legislature weighs in on minimum wage debate
Two weeks ago we reported that a state senator was planning to introduce an alternative minimum wage proposal but that the proposal (SB 912) seemed to have little chance of passing. That appears to be true, especially after Senate Majority Leader Randy Richardville (R-Monroe) introduced his own minimum wage plan yesterday that repeals the existing minimum wage law and replaces it with a new minimum wage law. SB 934 includes an increase to $8.15 an hour for hourly employees and $2.93 an hour for tipped employees effective September 1, 2014. This bill could cripple the minimum wage proposal since the proposal amends the existing minimum wage statute, which would no longer exist if SB 934 were signed into law. The bill was not referred to a committee and instead is being held on the floor for a potential vote as soon as next week.
Senate offers HICA shortfall fix
Yesterday, the Senate passed a solution to eliminate the yearly HICA shortfall by returning to the previous tax collection method, a six percent use tax on the state’s Medicaid health maintenance organizations. The HICA was created in 2011 to address concerns that the federal government would prohibit states from using a use tax mechanism to collect funds. Reverting back to the original policy is possible since the federal government never attempted to stop state use taxes from applying to Medicaid HMOs. SB 913 reverts back to the use tax on Medicaid HMOs while a companion bill, SB 893, lowers the HICA rate from 1 percent to 0.75 percent and provides for reimbursement if HICA revenues exceed the target rate of $450 million. However, SB 893 includes a provision that should the federal government disapprove of the use tax on Medicaid HMOs, the HICA rate will return to 1 percent on claims. The bills were referred to the House Appropriations Committee and may have a tougher time passing in the House.
Other important items to note:
- The House Criminal Justice Committee worked to combine the House and Senate pseudoephedrine packages over the last two weeks. The committee appeared to have a compromise but a vote was put on hold while sponsors hash out who will receive credit for each portion of the package.
- This week the Senate Judiciary Committee approved legislation that seeks to reduce employer liability concerns for hiring paroled felons (HB 5216-5218). The bills were approved by the full House early last week. The committee included an amendment with the bills that limits an employer’s immunity to only a parolee’s prior convictions.
- Last week the Senate Health Policy Committee approved additional regulations for compounding pharmacies including requiring the pharmacy to name a pharmacist in charge (SB 704 & 904).
- The House Judiciary Committee took testimony on legislation that allows pharmacies to dispense opioid antagonists to family and community members (HB 5405-5406). The committee plans to vote on the bills next week. The Senate Judiciary Committee approved similar legislation (SB 858-860) last week.
- One piece of the e-cigarette legislation passed the House this week. HB 4997 includes definitions of the terms “vapor product” and “alternative nicotine product” and states that those products, or a product regulated as a drug or device, by the FDA would not be defined as a “tobacco product.”
- Sen. Rick Jones (R-Grand Ledge) introduced his proposed $8.15 minimum wage legislation last week as SB 912. The bill was referred to the Senate Committee on Government Relations.
