Legislature returns for a few weeks
Legislators are back at work – for a couple of weeks at least. The House and Senate resumed normal business last week and will meet through next week. The Senate is scheduled to return for a week in October and both chambers will resume business after the election and Thanksgiving holiday.
House committee discusses stopping “Bag Tax”
The House Commerce Committee heard testimony Tuesday on SB 853, legislation to pre-empt local ordinances banning or requiring a fee on plastic bags or carryout containers. MRA testified in support of the legislation and stressed the importance of ensuring there is consistent policy for businesses to follow rather than a patchwork of local regulations that increase costs for retailers and consumers through new taxes. Committee members listened as MRA and other business groups explained the harm and uncertainty local regulations on commerce place on businesses and the importance of keeping choice in the checkout lane. The committee intends to vote on the bill next week.
Beer tax increase floated in House
Legislation to increase Michigan’s’ beer tax by nearly 250 percent was introduced on Wednesday. HB 5873 would increase the per barrel tax from $6.30 to $21.70 beginning January 1, 2017. The new revenue would be earmarked for numerous state-run prevention and recovery programs. While the bill sponsor stressed the fact that the beer tax has not been changed since 1966 and excessive alcohol consumption has cost the state $3.5 billion since 2006, the bill was the focus of some intense criticism from the media and concerned groups.
Surprisingly, under the Republican-controlled legislature there have been more and more requests to update fees and taxes, most recently those for food retailers and restaurants. While many of these fees have not been re-evaluated for decades, a sudden increase can have a startling effect on impacted businesses and the state’s economy. Lack of planning by state departments is not a good reason to dramatically increase fees and taxes on business and residents. Michigan’s beer tax is already the highest in the Great Lakes region – 28 percent higher than the next closest state. Increasing Michigan’s beer tax would serve as the last call for the quickly growing craft beer industry. The bill was referred to the House Regulatory Reform Committee and appears to face a tough battle before it can be seriously considered by the legislature.
Bill would stop local “Tobacco 21” ordinances
A state senator is working to further clarify state law that says local units of government cannot adopt ordinances or policies on the sale of tobacco products. SB 1066, introduced on September 8, modifies the existing Youth Tobacco Act to prohibit ordinances that impose a conflicting, different or additional requirement or prohibition. Like similar efforts on plastic bags and containers, the bill clearly identifies the state as the only entity with authority to regulate tobacco sales. Michigan law already prohibits a local unit of government from imposing new requirements or prohibitions related to the sale or licensure of tobacco products for distribution purposes (MCL 205.434).
Ann Arbor, Michigan, was the first state to adopt a “Tobacco 21” ordinance (ORD-16-17), in early August, raising the purchase age for tobacco products, including electronic devices, from 18 to 21. Ann Arbor’s ordinance, among the first in Michigan, is unique in that it also removes the penalty for minors found in possession of tobacco products. Instead of creating a deterrent to keep minors from smoking, the ordinance slaps retailers with a large fine and confusing signage requirements (retailers must post state-required signs but are also required to post Ann Arbor language that would be in conflict with state statute) while letting kids “experiment” without penalty.
Other important items to note:
GROCERY/CONVENIENCE
- E-cigarette/vapor products: HB 5850, introduced on September 8, would prohibit the sale of an e-cigarette or vapor product that is not packaged in a child-resistant container. The bill was referred to the House Regulatory Reform Committee.
- Motor fuel regulatory fees: SB 1051–1053, introduced on September 7, would eliminate the motor fuel retail license fee and the underground storage tank fee and increase the regulatory fee from 7/8 cent per gallon to 1 cent per gallon. The bills are tie-barred to SB 506, which updates the National Institute of Standards and Technology (NIST) standards that Michigan adopts for weighing and measuring commodities for sale in Michigan, from 2012 to 2014 standards.
- Urban food initiatives: Legislation providing an economic incentive for retail supermarkets, grocery stores, produce marts or delicatessens to locate in a downtown area that offers USDA-inspected meat, fresh fruits and vegetables, and dairy products for sale was introduced Thursday as HB 5885. The bill directs the Michigan Strategic Fund to award at least 5 percent of community revitalization incentives to urban food initiatives. The bill was referred to the House Commerce and Trade Committee.
PHARMACY
- Vaccination department rules: Legislation mirroring previously introduced HB 5126, which would prohibit the Department of Health and Human Services from promulgating rules that are more stringent than the vaccination exemptions provided in statute or than the requirements for claiming exemption from immunizations, was introduced as SB 1040. The bill was referred to the Senate Health Policy Committee.
REGULATIONS
- Auto glass installer registration: HB 5848, introduced on September 8, would require anyone in the business of installing, repairing or replacing glass in motor vehicles to register with the Secretary of State. The bill does not apply to repair facilities licensed under the motor vehicle service and repair act or a dealership. The bill was referred to the House Regulatory Reform Committee.
- Auto parts: Following the governor’s veto of HB 4344, the original House sponsor reintroduced the bill as HB 5857. The bill no longer includes a key anti-competition piece retailers had expressed concerns with and that led to the governor’s veto in early July. The bill codifies numerous current administrative rules into the Motor Vehicle Repair Act, where they will be more accessible and familiar to the general public.
- Fireworks: Legislation introduced on September 8 as HB 5832 would allow local governments in a county with a population of 750,000 or more to enact an ordinance regulating the days and hours consumer fireworks may be used. Current law prohibits ordinances regulating the use of fireworks on holidays or the day preceding or following a holiday. The bill was referred to the House Regulatory Reform Committee.
- Private security guards: HB 5884, introduced Thursday, would grant mall security guards the authority to arrest a person without a warrant and add various new safety and emergency training requirements for licensed, private security guards. The bill was referred to the House Regulatory Reform Committee.
TAXES
- “Tampon tax”: A Republican representative introduced legislation, HB 5879–5880, on Thursday exempting feminine hygiene products as well as incontinence products from the state’s 6 percent sales and use tax. Similar bills have been introduced, as HB 5234 and 5569 by the minority party, since most medical devices and prescriptions are exempt from sales and use taxes. The bills were referred to the House Tax Policy Committee.
- Tax capture changes: The House Local Government Committee heard testimony Tuesday on a package of bills (HB 5851–5856) that would make a number of changes to how tax-capture entities like Downtown Development Authorities (DDAs) operate. The legislation would prevent the capture of revenues from millages approved by voters after December 31, 2016, require entities to use revenue captured within five years or return the revenue, require an annual meeting and access to certain documents, and establish penalties for noncompliance.
OTHER
- Homeless Bill of Rights: Legislation creating a “Bill of Rights for the homeless” was introduced as SB 1033 on September 6. The legislation focuses primarily on the right for individuals to move freely around public property and preventing discrimination that may limit access to public services. The bill would establish a right to emergency medical care and freedom from discrimination in employment due to a lack of a permanent mailing address or having a mailing address that is a shelter or social service provider.
- MIOSHA violations: SB 1034, introduced on September 6, would establish mandatory fines for MIOSHA violations that result in the death or injury of a worker. The bill was referred to the Senate Commerce Committee.
