Gov. Snyder’s last state of the state: jobs, civility and recycling
Late last month Gov. Rick Snyder gave his eighth and final State of the State address. He took the opportunity to recap all the progress Michigan has made in the past seven years and to share the items still on his to-do list before he leaves office. The Governor is in his final year before leaving office because of constitutional term limits. During his seven years in office, Snyder has checked off many items on MRA’s wish list: item pricing modernization, business tax reform, organized retail crime, Main Street Fairness, preemption of local policies including wage, benefits and plastic bags. But he made it clear there is still more he hopes to accomplish.
Near the top of Gov. Snyder’s remaining list are some tough cultural reforms to fill the skilled trades gap by “getting out of our own way.” The governor spoke about changing mindsets to value careers in skilled trades and give students early opportunities to explore those careers. He also spoke passionately about civility in politics and policy discussions. He attributes the many accomplishments and reforms tackled in seven years to his motto of relentless positive action.
As a former CPA, fiscal responsibility and long-term planning are critical components of any policy decisions he makes. Before he leaves office, he hopes to see additional investments made in the state’s infrastructure. These investments would look at some of the often-forgotten pieces – expanding access to high speed broadband and repairing water and sewer systems.
Recycling and Re:Source initiatives launched
Last week Gov. Snyder unveiled new efforts to reducing waste by increasing Michigan’s overall recycling rate. include creating a statewide recycling education campaign, encourage development of recycling through the fees for disposing trash, referred to as “tipping fees.” The current fee is $0.36/ton which he proposes increasing to $4.75/ton. On average, he estimates Michigan families will only see an increase of $4.75/year. The revenue generated from the fees would be used to fund remediation and redevelopment of contaminated sites and other critical environmental protection programs.
For retailers, one of the most exciting pieces is the recycling grants for local entities to improve recycling infrastructure, market development and education. This issue is near and dear to retailers who are required to take back bottles and cans under the bottle deposit law. Michigan has one of the lowest recycling rates in the nation at just 15 percent compared to the average of 30 percent. Snyder’s goal is to find a pathway to get to 45 percent or greater and he is open to considering bottle bill changes once that goal is achieved.
A new initiative launched called Re:Source will promote the use of recycled materials in economic and business opportunities across Michigan. Also included is the new Recycled Materials Market Directory which includes a searchable listing of companies buying and selling recycled materials like paper, metal, glass, and plastic. For more information about Re:Source, visit www.michigan.gov/resource.
OTHER IMPORTANT ITEMS TO NOTE:
- Beer growlers: A bill to allow retailers holding an SDM license to fill and sell growlers received a hearing in the Senate Regulatory Reform Committee last week. HB 5175 amends the recently approved law allowing SDD licensed retailers to fill and sell growlers. Next step: Senate Regulatory Reform Committee vote. | MRA Position: Support.
- Bottle deposit expansion: HB 5486 introduced last week would add all beverage containers other than those containing milk or milk substitutes to the list of products that are considered redeemable containers. It is highly unlikely this legislation will receive serious consideration by this legislature. Next step: House Natural Resources Committee. | MRA Position: Oppose.
- “Cage-free” eggs: Legislation that further delays the requirement all eggs be produced by hens kept in certain larger-sized cages to October 2025 was passed by the Senate last week. SB 660 would also require retailers maintain written certificates or guarantees from sellers to prove eggs were produced in compliance with the new regulations. Next step: House Agriculture Committee. | MRA Position: Oppose.
- Biosimilars: The House and Senate Health Policy quickly reported a bill that would allow pharmacists to substitute cheaper interchangeable biosimilar drugs when a brand-name biologic drug is prescribed. HB 4472 allows pharmacists to meet the notification requirement by using the existing electronic medical records system used for billing purposes. MRA is seeking additional changes made to the bill to remove outdated language that has created legal challenges for pharmacies. Next step: Senate floor. | MRA Position: Oppose.
- Drug overdose training: Legislation introduced last week as HB 5460–5461 adds mandatory training requirements for first responders and paramedics including voluntary positions. Next step: House Health Policy Committee. | MRA Position: Monitoring.
- Opioid E-prescribing: Legislation to require opioids be prescribed electronically was introduced last week as SB 802. MRA supports the legislation but is working on a draft bill that would go further and require all prescriptions be sent electronically to the pharmacy to cut down on fraud. Next step: Senate Health Policy Committee. | MRA Position: Support.
- Tianeptine sodium: A bill to add tianeptine sodium as a Schedule II drug was introduced as SB 801 last week. Tianeptine is used as an antidepressant with anxiety-reducing and mood elevating properties. Next step: Senate Judiciary Committee. | MRA Position: Monitoring.
- 911 fee increase: A bill that would increase state and county 911 fees was reported by the House Communications and Technology Committee with several changes last week. SB 400 would increase the monthly 911 charge from 19 cents to 25 cents. The bill was modified to maintain the current cap on fees county commissions can charge of up to 42 cents. Any additional increases must be approved by voters, unlike the Senate version which increased the commission-approved fee to 55 cents. Prepaid wireless 911 surcharges would increase from 1.92 percent to 4.19 percent per transaction. Other positive changes include a requirement for the Public Service Commission to analyze how much the 911 system needs to implement updates. Next step: House Communications and Technology Committee vote. | MRA Position: Oppose.
- Drones: Legislation that seeks to codify recommendations made by the Unmanned Aerial Taskforce was introduced last week as HB 5494–5498. The bills define criminal responsibility for use of drones, prohibit using them in a manner to interfere with key facilities (certain manufacturing facilities, refineries, utility facilities, water treatment facilities and other key facilities as defined under the Michigan Penal Code) and establishes an aeronautics commission. Next step: House Communications and Technology Committee. | MRA Position: Monitoring.
- Drones on Mackinac Island: The Senate Transportation Committee considered legislation last week, SB 715, that would allow Mackinac Island to regulate the use of drones. Mackinac Island only allows horse-drawn carriages and needs the ability to regulate drones, which can spook the horses. While MRA opposes unnecessary drone regulations, MRA does support reasonable regulations that protect public safety. Next step: Senate Transportation Committee Vote. | MRA Position: Support.
- Gift cards: The Senate Banking and Financial Institutions Committee reported legislation late last month that will exempt third-party gift cards – the kind that you often find on kiosks in checkout lanes. SB 729 clarifies that these cards, just like gift cards sold directly by retailers to be used at their store, are not subject to the regulations under the Money Transmission Services Act. The bills were introduced after a state department attempted to regulate them under the act. Next step: Senate floor. | MRA Position: Monitoring.
- Nitrous oxide canisters: Legislation that would prohibit the sale or delivery of nitrous oxide canisters to minors was introduced as HB 5463. The bill attempts to solve the problem of teens using “whip-its” to get high. Misused nitrous oxide can cause brain damage and even death. The canisters are most commonly used to make whipped cream. Next step: House Regulatory Reform Committee. | MRA Position: Monitoring.
- Ransomware: The House recently reported two bills that would prohibit the unauthorized possession or use of ransomware. HB 5257–5258 would also add new penalties for anyone who intends to use it to harm, steal or prevent access to another person’s electronic data. Next step: Senate Judiciary Committee. | MRA Position: Support.
- Sales of certain weapons: HB 5513–5514 would remove a current prohibition on the sale, manufacture or possession of brass knuckles, blackjacks and clubs. Next step: House Judiciary Committee. | MRA Position: Monitoring.
- Interpretations of tax law: Under legislation introduced late last week, the Michigan Department of Treasury would be required to notify the Legislature of its interpretations of tax law. HB 5511 seeks to ensure the department is adequately carrying out the intent of tax legislation and giving the legislature the notice and time to correct any misinterpretations. Next step: House Tax Policy Committee. | MRA Position: Support.
- TIFA roll-up: SB 393, legislation that would roll all of the state-allowed tax increment finance authorities (TIFA) into a single act, was approved by the House Local Government Committee this week. The bill is an attempt to address the lack of compliance in the reporting process and set uniform reporting rules for all TIFAs. The Michigan Downtown Association is supportive of the legislation and considers this a thoughtful approach that does not place any additional burdens on DDAs. Next step: House floor. | MRA Position: Neutral.
