Legislature breaks for summer
Following a few hectic weeks, the Michigan Legislature has completed the budget and crafted an emergency funding solution for Detroit Public Schools. Legislators are now back in their districts until September. There are two session days scheduled between now and September: July 13 and August 3, but the legislature is unlikely to conduct any real business until it returns for three weeks on September 7.
During the summer recess MRA will send government affairs updates on an as-needed basis. Look for primary election-related information in late July.
House reports legislation discouraging taxpayers from appealing taxes
Despite numerous communications from the business community and dozens of discussions with lawmakers, the House of Representatives approved HB 5578 Wednesday on a 97-11 vote. HB 5578 is a backhanded attempt to discourage taxpayers from appealing their property assessments and would change the Tax Tribunal appeals process, making it more difficult and costly to file a property tax appeal. MRA was disappointed that lawmakers failed to take into consideration the concerns expressed by taxpayers and approved a deeply flawed bill that would turn the appeals process on its head and drive up taxes.
House Bill 5578 would increase the cost and length of commercial property tax appeals by requiring additional detailed studies and use of experts. The appeal process also would be slanted against taxpayers by pushing the Michigan Tax Tribunal to disregard the concept of True Cash Value, which is defined in the General Property Tax Act as the usual selling price. Instead, the legislation includes so many restrictions against the use of “comparable sales” in determining a property’s value that it strongly favors use of the “replacement cost” valuation method. Replacement value can greatly overstate what a buyer would pay for a property.
In addition, HB 5578 turns the Tax Tribunal, a judicial body, into an appraisal unit and creates different appeals processes for different categories of taxpayers. In creating different rules for different taxpayers, the bill violates the Michigan Constitution’s uniformity clause that requires all property to be valued using the same methods.
HB 5578 was referred to the Senate Finance Committee. MRA has already shared our concerns on the bill with Senate leadership. With the legislature in recess over the summer, we do not expect any movement on the bill before the fall.
Senate approves pre-emption of local plastic bag bans/fees
In May, the Senate moved SB 853, legislation to pre-empt local ordinances banning or requiring a fee on plastic bags or carryout containers. The legislation is similar to last year’s local pre-emption on wage and benefit issues and was prompted by two counties considering action on plastic bags. MRA testified in support of the legislation before the Senate Commerce Committee. The bill was referred to the House Commerce Committee, and legislators plan to bring the bill up in September.
One of the two counties considering an ordinance, Washtenaw County, voted 6-2 on a resolution on June 2. The county approved a carryout bag ordinance implementing a 10-cent “eco-fee” on paper and plastic bags offered at retail grocery stores. The eco-fee must be collected and the retailer must note the number of disposable carryout bags provided and the total eco-fee total on the receipt. Violations range from $100-500 per violation. Retailers may retain 20 percent of the “eco-fees” collected and must submit quarterly reports to the Washtenaw County Water Resources Commissioner. The ordinance does not take effect until next year on Earth Day (April 22, 2017) and may be pre-empted by the state legislation if approved by the end of the year.
Paid sick leave ballot initiative folds
There will not be a mandatory paid sick leave initiative on the ballot in Michigan this year. On May 23 the Time to Care coalition announced it was having trouble gathering enough signatures and had officially called off efforts to place a paid sick leave proposal on the November 2016 ballot.
The effort was stopped in part when the legislature took action in May to put a strict 180-day limit on valid signatures collected for ballot proposals (P.A. 142 of 2016). The Time to Care Coalition plans another attempt at a ballot initiative in the future and says it will pursue all other options, but it will have a tough time getting through the Republican-held majorities in the legislature.
Retail hazardous waste survey
Given the unique retail challenges with the large number of consumer products that may become waste and require special protections, handling and disposal, the Michigan Department of Environmental Quality (MDEQ) is working to develop waste compliance tools suited to retail operations in order to help retailers achieve and maintain compliance with the state and federal hazardous waste regulations. MRA and our national partners, the Retail Industry Leaders Association (RILA) and the National Association of Chain Drug Stores (NACDS), are participating in a Retail Environmental Workgroup and have been asked to distribute a survey to gather information about existing waste-handling practices from retail.
If you choose to participate, please have one person in your company complete the RILA survey by no later than June 13, 2016.
The survey was specifically designed to be collected and reported by the associations to ensure there is no concern of enforcement ramifications as all responses will remain anonymous to the MDEQ. RILA and MRA will work together to ensure any inadvertent company specific information provided will be removed in what is reported to the MDEQ and the workgroup members.
For more information on this effort and to see some of the current resources developed as part of this effort, please see MDEQ Retail Environmental Workgroup Web page. This web page is the MDEQ hub for retail specific environmental compliance resources. If you’d like to stay connected to this process and the resources developed for you, I’d encourage you to subscribe to the MDEQ Retail Environmental Initiative e-newsletter. For questions about this survey and/or workgroup please contact MRA or the MDEQ’s Christine Grossman, Compliance Assistance Specialist, Training and Outreach Unit in the Office of Environmental Assistance at 517-284-6860.
9-1-1 multi-line phone system rule extended
The legislature took swift action approving legislation to extend the deadline for compliance with a state rule requiring all properties over 7,000 feet with multi-line telephone systems to pinpoint the exact location of every telecommunications device capable of calling 911 within a building or campus of buildings. SB 878, introduced on April 13, was nearly unanimously approved by the Senate on June 1 and the House on Wednesday. The legislation extends the December 31, 2016 deadline to December 31, 2019.
The rules were promulgated by the Michigan Public Service Commission at the request of the Michigan State Police’s State 911 Committee. Originally promulgated in 2009, the rules only applied to buildings greater than 40,000 square foot. The rules were then amended and now apply to buildings greater than 7,000 square feet. The State 911 Committee has been unable to give definitive answers about how businesses should comply with the rules, leaving the rules open to interpretation. Without the legislation, businesses would be forced to make expensive changes to phone systems that may not even meet the criteria, subjecting businesses to fines and penalties for noncompliance. The delay in the implementation of the rule gives the state time to develop one compliance standard with clear and concise rules for businesses to follow. MRA joined a coalition of business groups supporting the deadline’s extension to 2019 and was pleased to see the legislature take quick action on SB 878.
Legislature begins opioid discussion
In May, the Senate began several hearings on recommendations from the Michigan Prescription Drug and Opioid Abuse Task Force. Legislation has been introduced as legislators have been able to draft recommendations and so far only HB 5326 has moved out of committee. The Senate plans to continue the discussion on legislative task force recommendations and take up actual legislation in September. Below is a list of the Task Force recommendations that have been introduced as legislation and the current status of each bill.
- Opioid antagonist standing order: HB 5326/SB 778 would allow a standing order that does not identify a particular patient for the purpose of allowing a pharmacist to dispense an opioid antagonist for a drug overdose. HB 5326 as reported by committee also includes an appropriation for fiscal year 2015-2016 of $2.47 million from the General Fund to the Department of Licensing and Regulatory Affairs (LARA) to modernize the Michigan Automated Prescription System (MAPS). HB 5326 was approved by the House on May 12 and referred to the Senate Health Policy Committee.
- Pharmacist refusals: HB 5587 would allow pharmacist refusals of Schedule 2-5 controlled substance prescriptions if the pharmacist believes it would not be used for legitimate medical purposes. Provides protection from civil liability in the event of injury, death, or loss arising from that refusal. HB 5587 (H-1) was discussed by the House Health Policy Committee on April 26 and May 3.
- MAPS reports: SB 769–772 would require all prescribers to run a MAPS report on all new patients when prescribing schedule II-V drugs. Require prescribers failing to run a MAPS report prior to prescribing schedule II-V drugs to complete remedial continuing education on prescription drug and opioid addiction, and increase the penalty on prescribers wrongfully prescribing schedule II-V drugs from a misdemeanor to a felony. The bills were introduced and referred to the Senate Health Policy Committee on 2/9/16.
- School boards: HB 5378–5379/SB 805–806 would allow prescribers to prescribe and pharmacies to dispense opioid antagonists to school boards and provide for training and policies on the administration of opioid antagonists in public schools. The bills were introduced and referred to the House and Senate Health Policy Committees on 2/17/16.
Other important items to note:
GROCERY/CONVENIENCE
- Alcohol licenses: Signed into law as P.A. 137 of 2016 on May 31, SB 344 makes various changes to the application process for an SDM or SDD license including codifying current Liquor Control Commission practice of allowing a person to apply for an SDM license without holding or applying for any other license under the act.
- Growlers: Legislation to allow merchants holding a Specialty Designated Distributor (SDD) license to fill growlers on-site was introduced as SB 973 on May 18 and referred to the Senate Regulatory Reform Committee. Currently only Specialty Designated Merchant (SDM) licensees can fill growlers on-site.
- Liquor license locations: Yesterday, the Senate Regulatory Reform Committee reported SB 981, a bill to require a conditional license applicant to submit an affidavit that the proposed license location is at least 500 feet from a church or school.
- Quota system for SDM licenses: On May 19, the Senate approved a substitute version of SB 929, a bill would implement a quota limitation for specially designated merchant (SDM) licenses. The bill would limit the number of licenses to 1 for every 1,000 residents in a city, village or township. A substitute version of the bill would also allow the Liquor Control Commission to waive the quote limitation if an applicant sells motor fuel and applies within 45 days (originally 60 days) of January 1, 2017. The bill was referred to the House Commerce and Trade Committee.
- Vending machines: Legislation changing the licensing and inspection process for vending machines was approved by the House yesterday. The bill, SB 774, will now go to the governor for approval.
- Wine and Grape Industry Council: SB 671, approved by the Senate on May 17 and referred to the House Agriculture Committee, would add several new members to the governor-appointed Grape and Wine Industry Council and expands the council’s duties to include Michigan beer-related issues. The council membership would now include a retailer or restaurant with an SDM license that sells Michigan beer as well as the current position for an SDM-licensed retailer or restaurant that sells Michigan wines. Currently the SDM-licensed retail/restaurant that sells Michigan wine position is held by MRA-member Meijer.
PHARMACY
- Good Samaritan Act for overdoses: On May 26, the House approved legislation that opens up the Good Samaritan language that encourages individuals to call for help in the event of a drug overdose without fear of punishment. The act currently applies to individuals age 21 or younger. Under HB 5649–5650, the good Samaritan language would apply to individuals of all ages so long as he or she possesses an amount sufficient only for personal use. The bills were referred to the Senate Judiciary Committee.
- Medicaid reimbursement: On Wednesday, legislators wrapped up the 2016-2017 budget and included updated language regarding the Medicaid fee-for-service dispensing fee. The new language comes from the Department of Heath and Human Services (DHHS) and includes flexibility for the department to meet federal requirements when establishing a new reimbursement methodology and dispensing fee before June 30, 2017. The language can be found on page 145 of HB 5274 in Section 1620. MRA will continue talks with members and the department in an attempt to find an acceptable reimbursement methodology and dispensing fee.
- Pseudoephedrine: New legislation introduced as HB 5667 on May 19 would nearly cut in half the amount of pseudoephedrine a consumer can legally purchase within a 30-day period from 9 grams to 4.8 grams. The legislation was referred to the House Criminal Justice Committee.
- “Smurfing”: Governor Snyder signed several bills related to “smurfing” or the practice of soliciting another person to purchase pseudoephedrine for an individual who intends to use it to make meth. SB 409–410, HB 4864 and HB 4769 were signed into law as Public Acts 125-128 of 2016 on May 25. The bills increase penalties for manufacture of methamphetamine near a school or library and ensure that a stop-sale alert is generated at a pharmacy for 5-years after an individual has been convicted of attempted “smurfing.”
REGULATIONS
- Grass seed labeling: Legislation amending Michigan’s Seed Law to add a definition of “cool season lawn and turf grass” and requiring a “best by” date on packaging was approved by the legislature on May 17 and was signed into law Wednesday by the governor as Public Act 166 of 2016. The approved bill, SB 637, also sets deadlines for when the germination percentage test must be completed by and changes the warning the caution statements on packaging from 12-point font to 8-point font.
- Product recalls: Legislation introduced on May 24 as HB 5679 would require retailers to obtain the name, address and phone number of customers purchasing home appliances and transfer that to the manufacturer to use in the event of a recall. Manufacturers would be required to notify customers in the event of a product recall and to repair the product for free. Under the legislation, home appliance includes any gas or electric appliance including, but not limited to; a stove, heating device, cooking device, refrigerator, air conditioner, vacuum cleaner, electric fan, clock, radio, toaster, iron, TV, washing machine, dryer, or dishwasher. The bill was referred to the House Commerce and Trade Committee.
TAXES
- Direct mail: HB 5132–5133, to require taxation of direct mail to comply with the national Streamlined Sales & Use Tax Agreement (SSUTA) and sourcing (the identification of the jurisdiction where a sale is considered to take place), was approved by the Senate in late May and signed into law as Public Act 159 of 2016 by the governor yesterday.
- E-cigarettes: HB 5686–5688 introduced on May 24 would prohibit the sale of e-cigarettes to minors, require them to be sold in child-resistant containers, add e-cigarettes to the definition of tobacco products, and tax e-cigarettes the same as cigarettes at 32% of the wholesale price beginning October 1, 2016. HB 5688 would also redistribute tobacco tax revenue. The bills were referred to the House Regulatory Reform Committee.
- Sales tax exemption: SB 991 introduced on May 25 and reported by the Senate Finance Committee on Wednesday would exempt a core charge attributable to a recycling fee, deposit, or disposal fee for a motor vehicle or recreational vehicle part or battery from the state’s sales tax.
OTHER
- Auto parts: On June 1, despite strong concerns from the retail community, legislators approved an amended version of HB 4344. The bill limits customer choice on which auto parts to use for the first five years while the car is under the original manufacturer’s warranty unless the owner of the vehicle instructs the repair facility in writing otherwise. The bill was presented to the governor on Monday. Retailers and parts manufacturers continue to make a case that anti-free market, anti-customer choice legislation should be vetoed.
- Dog collars: The House approved legislation Tuesday prohibiting the removal of a dog’s collar without permission from the owner. HB 5215 was amended to include language about “willfully or maliciously” removing the collar to ensure that pet stores and grooming facilities would not be unintentionally impacted by the legislation. The bill was referred to the Senate Judiciary Committee.
- Drones: SB 432–433, legislation prohibiting the use of recreational drones around the Mackinac Bridge was approved by the Senate Transportation Committee on May 31. Legislation allowing the use of drones except to interfere with law enforcement or if used for stalking or surveillance was introduced on May 25 as SB 992. The bill was referred to the Senate Transportation Committee. HB 5726 and HB 5754, introduced earlier this week, would prohibit the use of a drone equipped with a weapon and expand the definition to stalking to include drones. Both HB 5726 and HB 5754 were referred to the House Criminal Justice Committee.
- Drone task force: On May 31, the Senate Transportation Committee reported SB 994, legislation to create a task force to recommend state policy on drone use. The bill includes a position for a member recommended by MRA to sit on the task force.
- Patent reform: Yesterday, the Senate approved SB 289, legislation aimed at stopping bad-faith patent infringement, or patent trolls. 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.
- Petition signatures: Legislation that impacts the validity of petition signatures collected on ballot proposals to amend the Constitution or initiate legislation was signed into law as P.A. 142 of 2016 on Monday. SB 776 prohibits the use of stale signatures, or those that were made more than 180 days before the petition was filed with the Secretary of State. The new law removes language that those signatures were rebuttably presumed to be stale and void, instead making it clear that signatures more than 180 days are invalid.
- Probation/parolee work opportunity grant program: Legislation creating the “Work Opportunity Act” approved unanimously yesterday by the Senate would require the Department of Talent and Economic Development to establish and implement a work opportunity employer reimbursement program to provide grants to employers for hiring individuals on probation or parole. The bill, SB 946, has not yet been referred to a House committee.
- Snowplow lights: On Wednesday, the governor signed HB 5247 into law as Public Act 161 of 2016. The new law allows the use of oscillating green, yellow or amber lights to be used on a snowplow vehicle that is also used in other non-winter activities. The new law took effect on June 8.
- Snowplow services: On May 25, the House approved HB 5230 which would prohibit certain indemnity agreements in snowplow and de-icing service contracts. The bill was referred to the Senate Judiciary Committee.
- Used tires: On May 10 Gov. Snyder signed legislation into law that further cracks down on Michigan’s tire theft problem. The legislation, SB 331, was signed into law as Public Act 112 of 2016 and would require used motor vehicle parts dealers to track information from individuals selling used tires, wheels or rims including identifying information for the parts and the individual selling the parts and would limit payment for those parts to check, credit card or money order.
- Yard clippings: Legislation to repeal the current ban on yard clippings including grass and other yard waste from landfills was introduced on May 17 as HB 5659. The Bill was referred to the House Natural Resources Committee.
