Governmental Affairs: May 8, 2015

Aftermath of Prop 15-1’s failure: fast search for “Plan B”

Voters resoundingly rejected Proposal 15-1 on Tuesday. The proposal to amend the Michigan Constitution to increase the sales tax by one cent and adopt other measures to fund road repairs received approval from only 20 percent of voters. It was the largest rejection of a constitutional amendment since the 1963 constitution was adopted.

Legislators and public officials read different interpretations of what the strong rejection of the measure means. They range from opposition to a tax increase and anger that the legislature shirked its duty, to the complexity of the measure and frustration with the add-ons that had nothing to do with fixing roads. The one clear message that most agree on is that they must act quickly to come up with a new plan, one that will not require voter approval.

What the new plan may look like is still fuzzy, but the legislature is expected to start with a cuts-only plan to shift revenue within the budget. The House passed a cuts-only plan last year that found $450 million within the current budget (https://www.retailers.com/mra-news/gan_may-9-2014). House members are taking a renewed look to find additional funds and have indicated they may look at eliminating certain tax credits (including housing credits) in addition to making substantial changes to how the Department of Transportation operates and pays for construction work.

As for the timeline, the House has committed to staying in session this summer until a plan is adopted and the governor has voiced support for a quick turnaround. The Senate has not been as quick to act, instead voicing support for a prolonged period of thoughtful discussion.

Legislation would create voluntary service-animal registry

A bipartisan, bicameral package of bills aimed at making it easier to identify service animals in public places was introduced on April 28. The bills (SB 298, SB 299, HB 4521 and HB 4527) would: extend current protections to service-dog trainers; create a voluntary state system of identification, tags and vests for service animals; exempt service animals from licensing fees; establish penalties for falsely representing that an animal is a service animal; and expand the list of eligible disabilities to protect Michigan Veterans who use service dogs to manage the effects of Post Traumatic Stress Disorder and Traumatic Brain Injury. The federal Americans with Disabilities Act prohibits requiring a license or establishing a mandatory uniform vest. MRA is supportive of the new legislation, in hopes that participation in the voluntary identification tags and vests for service-animals system will make it easier for employees and the public to recognize service animals.
Retailers should note that there are strict rules prohibiting discrimination against individuals with disabilities and the use of service animals in public places. A service animal must be permitted to accompany an individual with a disability to all areas of the facility where customers are normally allowed to go. Service animals are working animals, not pets, and must be permitted even if pets are not permitted. A retailer may ask only two questions of an individual entering the business with an animal: 1) Is this animal required because of a disability? and 2) What work or task has this animal been trained to perform?

The business cannot ask about the nature or extent of an individual’s disability and cannot require documentation or an identifying vest or collar for admittance. If an animal’s behavior poses a direct threat to the health or safety of others by displaying vicious behavior, a retailer may exclude the animal from the business. The animal may return on the next visit. Service animals do not have to wear a special collar or vest to be a service animal and do not need to be trained by a professional or licensed in order to perform a service for any disability covered by the ADA.

Other important items to note:

GROCERY

  • SDM license merchants with gas pumps: HB 4074 would eliminate the inventory requirement for specially designated merchants (SDM) licensees or applicants who are located in a township with a population density of less than four people per square mile within a county with a population density ofless than 11 people per square mile. The House Regulatory Reform Committee approved the legislation on April 29.

LABOR

  • Emergency Civil Air Patrol absence: Legislation that would prohibit any penalties or retaliation for an employee who was absent from work for emergency Civil Air Patrol duty was introduced in both chambers as SB 310 and HB 4537. The bills were referred to the Senate Commerce Committee and the House Commerce and Trade Committee respectively.

REGULATIONS

  • Animal adoption “Logan’s Law”: Legislation to prohibit animal abusers from adopting animals (SB 219-220 and HB 4353 and 4355) received hearings this week. The bills require animal shelters or animal protection agencies, before finalizing a pet adoption, to check a statewide database of individuals convicted for animal abuse crimes. The legislation includes language MRA worked on last year to exempt pet shops that allow adoption events on-site from the database-checking requirement. The Senate Judiciary Committee approved SB 219-220 and the House Judiciary Committee is expected to approve HB 4353 and 4355 soon.
  • E-waste expansion: The state’s Consumer Electronic Takeback Program, which requires manufacturers to take back and recycle electronic waste, or e-waste, would be expanded to include cell phones and tablets under SB 301 (similar to HB 4291, reported earlier this year), which was introduced on March 4. The bill was referred to the House Communications and Technology Committee and has bipartisan support.
  • Fireworks: Legislation that gives local governments the right to limit use of commercial grade fireworks even on holidays was introduced on April 28 as SB 300. The bill removes all current limitations that prohibit any local ordinances, policies or resolutions limiting fireworks usage on the day before or after a holiday. The bill was referred to the Senate Committee on Government Operations.

TAXES

  • Over-the-counter medications: HB 4464-4465, which would exempt over-the-counter medication from the state’s sales tax, was approved by the House Tax Policy Committee on April 29.

OTHER

  • Retail fraud cost recovery: SB 191, legislation that would allow recovery of law enforcement costs related to retail fraud cases, is scheduled for a hearing in the House Criminal Justice Committee on Tuesday.