Session winding up before it winds down
The Capitol has become a pressure cooker as lawmakers hurry to complete the budget, transportation funding and other big pending legislation before the summer break. Lawmakers intend for Thursday, June 12, to be the last spring session day, but with budgets still in conference committees and a transportation solution getting more complicated by the day, that self-imposed deadline may not be realistic. As with any looming deadline, particularly before an election, there are many pieces of legislation waiting in the wings to be completed that MRA is following carefully.
Road funding solution: sales vs. gas tax
The road funding debate isn’t getting any easier for lawmakers looking to cut a deal to fix the roads before summer break. A plan modeled after the governor’s call to switch to a wholesale gas tax and increase registration fees has worked its way partially through the legislature, only to run into an ideological roadblock in the Senate.
Several senators pushed hard this week to kill a gas tax increase and replace it with a sales tax increase or a mix of each, claiming a sales tax increase would be less harmful to low-income residents. We know that simply isn’t the case. The sales tax is a regressive tax that impacts lower income residents at far greater rates than those who can afford to pay for services.
MRA sent a memo to lawmakers on Wednesday reminding them of the great harm a 1-2 cent increase in the state’s current 6% sales tax would have on retailers and Michigan’s economy. As of Thursday afternoon, it appears that the Senate does not have the required 2/3 vote to pass a constitutional amendment raising the sale’s tax (SJR J). Michigan Retailers Association prefers a solution that relies on user-based taxes to correct the problem and could support a concept similar to the transportation package the House passed in May (https://www.retailers.com/mra-news/gan_may-9-2014). We will continue to follow the issue closely and voice our strong opposition to a sales tax increase as the transportation funding battle wages on.
“Anti-Smurfing” legislation nearing completion
“Anti-Smurfing” legislation that cracks down on meth abuse is moving through the legislature. The package of bills prohibits individuals convicted of a meth-related offense from purchasing pseudoephedrine without a prescription and makes it a crime to purchase or solicit someone to purchase pseudoephedrine with the intention to make meth (HB 5089-5090, HB 5363, HB 5615, SB 535, SB 563, and SB 756). The joint House and Senate bill package was reported by the House Criminal Justice Committee on Wednesday and passed the House on Thursday. The bills had been stalled while lawmakers attempted to determine which bills would be included in the final package.
MRA supports the bill package because it handles the problem of meth abuse without making drugs containing pseudoephedrine or ephedrine prescription-only. The committee adopted amendments to the final package that allow pharmacists to override the stop-sale system if they believe they are in imminent harm. The amendment ensures that pharmacists will not be penalized for using the override function.
Other important items to note:
TAXES/REGULATIONS
- Gov. Snyder signed a bill (HB 4656) this week that exempts 16-year olds who obtain a high school equivalency certificate from the youth employment standards. It’s Public Act 144 of 2014.
- The Senate Finance Committee on Wednesday reported legislation that exempts the transfer of a vehicle from the use tax act if the transfer occurs between immediate family members (HB 5261) . Currently, a vehicle sale between immediate family members is exempt from Michigan’s sales tax.
- Legislation to repeal licensure of dietitians and nutritionists, HB 4688, was reported by the Senate Regulatory Reform Committee on Thursday. The repeal would give pharmacists and employees more discretion when offering advice on supplements and dietary suggestions.
ENERGY
- Legislation that would require utility companies to provide the Public Service Commission with cost allocation information and rate design methods (HB 5476) passed the Senate on Wednesday and was enrolled.
- The Senate Natural Resources Committee reported out legislation (SB 910) on Thursday that would prevent the Department of Natural Resources from enforcing the new federal emissions standards on woodstoves. The committee also reported two resolutions (SR 127 and SCR 14 ) that ask the U.S. Environmental Protection Agency to reconsider the new standards. MRA supported the legislation, since the new standards could impact both retailers who sell woodstoves and their customers.
PHARMACY
- SB 656, the MAC price reconsideration bill was presented to the governor on Wednesday.
- The House and Senate each passed bill packages (HB 5404–5407 and SB 858-860) that would allow prescribers to prescribe and pharmacists to dispense opioid antagonists, used to treat overdoses of pain medication, to friends and family of individuals who may suffer an overdose. Each chamber’s judiciary committee has had a chance to review the legislation, so the bills are expected to move quickly through the rest of the process.
- SB 913 & SB 893, the HICA shortfall fix, which includes a return to a HMO tax (SB 893) and a new, reduced HICA rate (SB 913), passed the House on May 27 and was presented to the governor on Wednesday.
- Legislation that would allow substitution of FDA-designated bio-similar drug products for brand-name drugs by pharmacists (HB 5598) was introduced on May 22 and has been referred to the House Health Policy Committee.
OTHER
- Legislation that seeks to require a prescription for the sale of all contact lenses, including vanity contact lenses, and most glasses was reported from the House Health Policy Committee on Tuesday. Under SB 893, prescriptions must be issued by a licensed professional and prescriptions that rely only on data produced by an auto refractor or similar device would be prohibited. The bill does exempt trial contact lenses, as well as reading glasses and vanity glasses that do not seek to correct the wearer’s vision as well as trial contact lenses do.
- On Tuesday, the House Regulatory Reform committee took testimony on legislation that seeks to prevent puppy mills by setting standards of care for animal shelters, animal protection agencies and pet shops selling cats, dogs or ferrets. The committee did not indicate when or if a vote would occur on HB 5095.
