Governmental Affairs: April 24, 2015

Changes to training wage introduced

Senator Margaret O’Brien (R-Portage) recently introduced changes to increase the age, from 18 to 20, of employees eligible to receive the training wage. Currently, employees age 18 and under can receive a training wage, which is 85 percent of the state’s minimum wage. The legislation, SB 250, was introduced in an attempt to adjust for the new practical reality that many students are in training positions while in college. It also gives employers greater flexibility to give younger workers a chance while getting some relief from the new higher minimum wage requirements. The bill was referred to the Senate Commerce Committee.

Patent reform bill introduced

Legislation aimed at stopping bad-faith patent infringement, or patent trolls, was introduced on Wednesday as SB 289. 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 was referred to the House Judiciary Committee.

Food license fee increase reported

The House Appropriations Committee on Wednesday reported legislation, HB 4470, that would increase food license fees for retail food establishments. The executive budget plan included an increase in retail food license fees by nearly 300 percent overnight. The Department of Agriculture and Rural Development (MDARD) agreed instead to phase in the license fees over a three-year period. The phased-in approach cuts the increase to 58 percent each year for three years.

While the general omnibus budget bill includes a $100 placeholder for the fees, the recent House action shows the intent to include the fee increases in the final budget. It should be noted that the Senate Appropriations Committee also reported the MDARD budget this week but rejected the entire fee increase proposal.

Food license fees have not been increased in nearly 15 years. An annual retail food license fee is currently $67 and would increase by $39 annually until reaching $183. An extended retail food license, which covers licensees that serve unpackaged food for immediate consumption and provide customer seating in the food area, is currently $172 and would increase by $99 annually until reaching $468.

Interchangeable biosimilars legislation introduced

Legislation that would allow the substitution of interchangeable biosimilars for generic drugs (https://www.retailers.com/mra-news/gan_march-27-2015) was introduced on April 14 as HB 4437 and referred to the House Health Policy Committee. The bill does not require physician notification for the substitution of FDA-approved interchangeable biosimilars but would require notification if a pharmacist dispenses a non-interchangeable biosimiliar in place of a biologic. Since pharmacists cannot change drugs or do any substitution of drugs unless the FDA has approved it as a generic for a brand name, or in this case an interchangeable biosimilar for a biologic drug, the notification language has no real impact on pharmacists. It was included more as a political reassurance for legislators who are wary of the new category of drugs. Physicians can still prescribe brand name products by writing “dispense as written” on the prescription.

ENERGY

• Renewable energy standards – House and Senate legislation introduced this week (4518-4519, SB 295 & 297) would require electric providers to adopt a 20 percent renewable energy portfolio by 2022. The state currently has a 10 percent requirement that must be met by the end of this year. The bills were referred to the House Energy Policy Committee and the Senate Energy and Technology Committee.

LABOR

• Domestic violence exemption – Recently introduced legislation would ensure an individual who leaves work due to a domestic violence situation would still be eligible for unemployment benefits. SB 252 retains eligibility if an employee leaves work due to fear of domestic violence at work or en route to work, the individual’s need to relocate or the need to seek help or assistance that interferes with work. The bill was referred to the Senate Commerce Committee.
• Sick leave for domestic violence – SB 256 introduced last week creates the “sick leave utilization act” and would require employers who offer sick leave as a benefit to include the use of sick time for issues arising from sexual assault, domestic violence or stalking. The employee would qualify if the employee or a member of the employee’s household was experiencing these issues. The bill was referred to the Senate Commerce Committee.
• Wage discrimination – A package of bills addressing wage discrimination and establishing a commission on pay equity was recently introduced in each chamber (SB 269, 273, 289 and HB 4484-4492) and referred to the Senate Commerce and House Commerce and Trade committees.
• Wage info – Employers would have 30 days to respond to an employee’s request for wage information (including salary, hourly pay, bonus pay, overtime pay and other forms of compensation) over a three-year period for similarly situated employees under SB 272 and HB 4483 introduced last week. The bills were referred to the Senate Government Operations and the House Commerce and Trade Committees respectively.
• Posted job descriptions – Legislation to require employers with more than 20 employees to provide a written job description for all employees was introduced as HB 4515. The bill was referred to the House Workforce and Talent Development Committee.

REGULATIONS

• Money order notification – The House Financial Services Committee took testimony on HB 4242 this week. The legislation would require retailers that offer money transmission services (money orders or wire transfers) to post a written notice of the rates and fees. The committee appeared to show some interest in the legislation. MRA submitted written testimony in opposition to the bill and has spoken with both the bill sponsor and committee chair to eliminate the strict font size requirements and allow flexibility. The bill is expected to be more narrowly tailored to only address money orders.
• Secondhand dealer/gem dealer tracking requirements – The House Financial Services Committee took testimony on legislation (HB 4266-4268) last week that seeks to create a statewide system for the tracking of secondhand, pawned and traded items. MRA continues to work on gaining an exemption from the onerous secondhand dealer law that requires secondhand retailers to track and retain every item regardless of the price. After meeting with the chairman, we are optimistic the final substitute language will include an exemption for items under a certain dollar threshold.
• E-cigarette vapor product ban for minors – Legislation to ban the sale of e-cigarettes and vapor products to minors was reintroduced as HB 4431. The bill was referred to the House Regulatory Reform Committee. Similar legislation that was supported by MRA failed last year when it was vetoed by Gov. Snyder, who didn’t think the legislation went far enough to classify vapor products as tobacco products.
• Food allergy menu posting requirement – HB 4435 introduced last week would require restaurants and retailers with prepared foods intended for consumption on the premises to post a notice for customers with allergies on a menu, table tent, placard, chalkboard or other board. The notice would read: “BEFORE PLACING YOUR ORDER, PLEASE INFORM YOUR SERVER IF A PERSON IN YOUR PARTY HAS A FOOD ALLERGY.” The bill was referred to the House Committee on Government Operations.

TAXES

• Over-the-counter medications – Recently introduced legislation, HB 4464-4465, would exempt over-the-counter medication from the state’s sales tax. Last term the legislature exempted over-the-counter medication pursuant to a prescription. The bills were referred to the House Tax Policy Committee.

OTHER

• Retail fraud cost recovery – Legislation that would allow for the recovery of law enforcement costs related to retail fraud cases was approved almost unanimously by the Michigan Senate on April 14. Cost recovery will give law enforcement more incentive to pursue those crimes. The bill was referred to the House Criminal Justice Committee.