Governmental Affairs: October 2, 2015

Assessor overreach legislation introduced

Legislation that would require local property tax assessors to only use the cost-less depreciation approach to value retail property over 25,000 square feet and prohibit the use of deed restrictions on any commercial property was introduced this week. The bills, HB 4909 and SB 524, have been referred to the House Tax Policy Committee and Senate Finance Committee respectively. Proponents including local units of government have dubbed the issue the “dark store approach” and are attempting to retroactively change property tax appeal rulings in favor of retailers that have successfully lowered valuations. Retailers have successfully shown that the use of comparable sales is the most accurate way to determine value for single-use retail buildings.

At the heart of the issue is reductions in local government funding that have left cash-strapped local units desperate to find additional revenue. Evenstoreowners who would not be directly impacted by this legislation should take note. This legislation creates a slippery slope that could lead to eventual changes in how all commercial property is valued. Also alarming is the fact that HB 4909 declares all vacant freestanding retail spaces as blight and thereby a public nuisance, allowing local units to condemn the property under the Blighted Rehabilitation Act. Locals would also have the power to require a special land use permit for single-use retail property over 7,000 square feet. If the legislation passes, retailers would be required to provide a plan for re-use, redevelopment, re-lease, or resale in the event of a future vacancy in order to receive a permit.

It is uncertain if the legislation will be taken up for a vote, but there has been a lot of media attention on the issue piquing legislative interest.

Pharmacy tech fixes signed into law
Gov. Snyder signed SB 468 into law as Public Act 133 of 2015 on Wednseday morning ahead of the October 1 effective date for all technicians to be licensed. The act makes several technical changes to the Public Health Code related to pharmacy technician licensing including:

  • Clarifying the locations where a limited license technician can work to include all employer locations rather than just one licensed location
  • Providing an exemption from GED/high school diploma requirements for limited and temporary licensed technicians
  • Extending the timeframe for a temporary license to allow a licensee enough time to obtain required training hours
  • A department-offered amendment to allow electronic renewal notices to be sent to licensees as a cost saving measure and to update the department’s services

The department is working diligently to approve licenses that were pending until the law was amended. If pharmacy technicians at your store are continuing to have difficulty receiving licenses or there are other questions please do not hesitate to contact MRA so we can work to resolve the issue with the department.

Recycling measurement legislation introduced

Legislation designed to collect information on recycling already happening in Michigan as a step towards determining a statewide comprehensive recycling plan was introduced last week as SB 507. The legislation requires recyclers, which includes retail stores that take back beverage containers and bale cardboard boxes, to register with the state and file quarterly reports with the Department of Environmental Quality beginning on October 1, 2016. Reports would include the tons of material recycled during the quarter using a volume-to-weight conversion formula that the department would provide. The following items would need to be included in the report: glass, paper/ paper products, plastic/plastic products, ferrous metal, nonferrous metal, and textiles. The bill was referred to the Senate Natural Resources Committee and has bipartisan support.

House and Senate declare October 3 as Get Caught Blue-Handed Day
Legislators in the Michigan House and Senate approved resolutions formally declaring Saturday, October 3 as Get Caught Blue-Handed Day in the State of Michigan. The Senate approved SR 98, sponsored by Sen. Margaret O’Brien (R-Portage), yesterday and the House approved HR 158, sponsored by Rep. Larry Inman (R-Traverse City) on Wednesday. Legislators were given an opportunity to get a photo taken with Buy Nearby Guy yesterday and received materials to help promote Get Caught Blue-Handed Day in their districts.

Other important items to note:

GROCERY/CONVENIENCE

  • Beer and wine in gas stations: Legislation to allow secondary licensed locations to sell beer and wine in gas stations was introduced last week as HB 4895-4896. The bills were referred to the House Regulatory Reform Committee.

LABOR

  • Franchise-franchisor responsibilities: HB 4901-4902 would clarify when franchise employees whom the franchisee pays wages or benefits to are direct employees of that franchisee unless indicated otherwise in the franchise agreement. The bill was referred to the House Commerce Committee and is expected to receive a hearing soon.

PHARMACY

  • Pharmacy fingerprinting: SB 195 would waive the requirement for applicants of a new pharmacy license to submit fingerprints if fingerprints had been taken within the past two years was approved by the House yesterday and returns to the senate before heading to the governor’s desk.

TAXES

  • Taxable wage base reduction: SB 500 would formally roll back the taxable wage base for employee unemployment benefits from $9,500 to $9,000 because the Unemployment Trust Fund reached a $2.5 billion balance in July. The legislation was approved on a 26-9 vote by the Senate Thursday and was referred to the Workforce and Talent Development.