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In the final days of the 2008 session, Michigan legislators worked late into the night to approve 202 bills. That is nearly two-thirds as many as the number of bills (331) that became law in all of 2008. Here is a summary of how 2008 ended:
Bottle deposit bills
The group of bottle deposit bills (SB1392, SB1532, SB1648, and HB5147) that the Legislature approved in the wee hours of the morning and which were opposed by AFPD, are aimed at protecting the state from paying out some $10 million a year from an environmental cleanup fund for refunds on containers bought in other states. Michigan’s 10-cent refund is the highest in the region.
Under the bills, Michigan-sold containers would be marked by a special code and the state would assist retailers in upgrading their container scanning machines to limit refunds only to those containers. The upgrades would be required in border counties (and in southern Michigan as the next tier of counties) if the state pays for the cost of the conversion.
Two other bills, HB 6441 and HB 6441, setting penalties for fraudulently paying deposits on out-of-state containers had been sent to the governor the prior week. Another bill, SB 1394, allowing retailers to limit refunds provided to an individual in any one day, did not come to a House vote.
Smoking ban snuffed out
An agreement on a statewide ban on smoking in the workplace remained elusive as legislators wrapped up the 94th Legislature. Participating legislators expressed disappointment at not being able to reach an agreement – with Senate members locked in on the overriding health care issues and focused on their chamber’s version, which called for an immediate and universal ban.
The House-passed version of the bill called for select exemptions for the Detroit casinos, horse race tracks, cigar bars, tobacco retailers and bingo halls. Efforts to find a compromise between the two positions proved futile as alternative proposals calling for a year-long phase-in of a total ban or allowing any business to obtain an exemption from the ban by paying a licensing fee were ultimately rejected by the conference committee members embracing the issue’s health care aspects.
Wine shipments corked
A federal court ruling which allowed retailers outside Michigan to ship wines directly to Michigan residents will be overturned under a measure passed by the Legislature. The measure, House Bill 6644 was approved by the House on a vote of 98-4 and by the Senate on a 36-2 vote. The approved measure does permit some direct shipping by foreign vendors, but only if the vendor makes the delivery personally. The proposal bans the use of third-party shippers, such as UPS or FedEx unless the delivery address is on an island.
The measure was supported by the Michigan Liquor Control Commission, which feared the federal ruling would harm the state’s current retail wine sales. The legislation was opposed by specialty wine retailers who argued the measure would destroy a growing part of the wine industry that catered to collectors and enthusiasts who often sought no more than a bottle or two of a specific vintage. Opponents also argued Michigan, given its current economic condition, should do all it could to embrace any viable business and not go out of its way to curtail economic activity. Prior to passage, Senator Gilda Jacobs (D-Huntington Woods) proposed an amendment that would have allowed Michigan-based specialty retailers—a number of which are located in her district—to continue to ship directly to consumers, but the language was defeated when bill proponents argued the amendatory language would gut the bill. However, Senator Alan Sanborn (R-Richmond), Chair of the Senate Economic Development and Regulatory Reform Committee which would have considered the legislation had it not been “fast tracked,” said he would work on further changes to the measure.
Light rail line for Woodward Ave. approved
The possibility of a 3.4-mile light rail system along Detroit’s Woodward Avenue moved one step closer to reality as the Legislature approved an eight-bill package. Under the legislation, private philanthropists would be allowed to contribute to the projected $100 million cost to construct the rail line from downtown Detroit to the city’s New Center area, thus connecting all of Detroit’s major cultural and sporting venues. Once constructed, the legislation also requires the state and the city to operate and maintain the rail line. Governor Granholm is expected to sign the measures.
Cobo to expand
Legislation creating a regional authority to expedite the expansion of Detroit’s Cobo Center was passed. As approved, the five-bill package—seen as a vital key in retaining the North American International Auto Show in the Motor City—creates a five-member regional board consisting of specific representation from the Metro Detroit area. It also extends the collection period for various taxes specific to the Metro Detroit region and authorizes their use on the Cobo project. While all parties agreed the legislation was necessary to address display space concerns with the Cobo Center, the make-up of the governing board of the regional authority and its powers had been one of the major points of contention delaying the legislation’s movement.
No deal for BCBSM
Members assigned to the conference committee on the individual health care insurance market reform legislation sought by Blue Cross Blue Shield of Michigan (BCBSM) failed to reach an agreement as the clock wound down on the 94th legislature. Senate Majority Leader Mike Bishop said he would create a workgroup to tackle the BCBSM issue as soon as the new Legislature convened in January.
No Federal post for Granholm
The window that had seemed to remain open for Governor Granholm’s inclusion in the administration of President-elect Barack Obama was closed by Ms. Granholm herself. It has long been rumored Ms. Granholm was on several short lists for possible posts in the Obama Administration—with it known she had strong interest in the Secretary of Energy post despite her constant statement that she intended to finish her gubernatorial term “with a partner in the White House.” However, in a statement, she said that she “does not want to be considered for an appointment at this time.” Ms. Granholm is “interested in working on the challenges facing the state which is mainly growing the economy and creating jobs.”
Michigan votes for Obama
Michigan officially cast its seventeen Electoral College votes for Barack Obama, marking the fifth consecutive election that the state has supported the Democratic Presidential candidate, but the first time since 1996 that the state’s support has favored the election’s actual winner. The electors met in the Senate chambers to conduct the vote. Before conducting their business, the electors were addressed by Governor Granholm, who, noting “we need change more than anyone,” said the vote exemplified the “celebration of change and hope for Michigan and all of the nation.” U.S. Senator Debbie Stabenow (D-Lansing) commented on the efforts to obtain the bridge loan for the auto industry, saying, America would soon have a “president and new Congress who understand the value of making things.” The electors then cast their ballots for president and vice-president. When the vote was tallied and it was announced that all 17 votes had been cast for Barack Obama for president and Joe Biden for vice-president, the electors, their guests and those seated in the Senate gallery provided a standing ovation.
AFPD keeps working hard for you!
Whether it is educating your employees on proper procedures for alcohol sales, testifying at Congressional hearings, or developing purchasing programs to save you money, AFPD is here to assist the independent retailer. Here is a brief rundown on some of the projects that we have been working on over the past month:
Underground Storage Tank release issues
AFPD met with members of Michigan DEQ and environmental members of MPA of Michigan to discuss the unfair use of operational memos as they relate to clean up and remediation of underground storage tank release issues. A task force is being proposed to work out a solution to the problem. AFPD Executive Vice president Ed Weglarz has been nominated to serve on this Task Force by State Senator Mike Bishop.
MBN-TV
AFPD conducted an interview with Mr. Rob DeRubis of the Michigan Department of griculture-Weights and Measures Division on MBN-TV, the Middle Eastern Broadcasting Network, as part of the regularly scheduled Retail RoundTable presented by Associated Food & Petroleum Dealers. They discussed the services provided by the Dept of Agriculture, and how the department protects the consumer while maintaining a level playing field for the merchant. It is noteworthy that while inspections are “complaint orientated” with regard to calibrating gasoline dispensers, inspections reveal that the compliance ratio is 98.1% of the pumps checked. After handling motorists’ complaints, the inspectors follow a pattern of visiting gasoline retailers on a regular rotating basis.
Retail Site Image Grading
AFPD recently began the development of a Retail Site Image Grading Checklist to be utilized for a wide range of retail stores. Look for this to be published in the next several months.
Visiting members and non-members
AFPD staff continues to visit active members and non-members on a routine basis to discuss their concerns and issues. Conducting these visits gives AFPD insight into the issues that most affect the industry.
Rewriting Underground Storage Tank Rules
AFPD participated in the inaugural meeting of the Michigan Underground Storage Tank Rules Ad Hoc Committee. The committee will be rewriting the rules as they apply to the installation, maintenance, and removal of underground storage tanks. These rules have not been rewritten for over 20 years.
Opposing gas tax increase
AFPD testified in front of the Michigan House Transportation Committee opposing proposed bills that would increase the state gasoline tax from 19 cents per gallon to 18% per wholesale gallon. AFPD opposes legislation that would grant authority to local counties to impose their own individual road taxes on gasoline in addition to Federal and State road taxes. In addition, AFPD testified in opposition to a bill which would empower local municipalities to impose an additional sales tax up to 1% on all taxable transactions.
Lottery regulations
AFPD has been in contact with her Michigan Lottery regarding several instances related to retailers giving things of value in disregard of the newly enacted regulations.
Detroit Food Policy Council
AFPD attended Detroit City Councilwoman JoAnn Watson’s Neighborhood & Community Services Committee hearing regarding the formation of a Detroit Food Policy Council.
WIC licensing
AFPD has been in contact with the WIC Lansing office concerning a number of retailer issues regarding licensing and contract qualifications.
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2008 AFPD SUPPORTS
HB 4155 - This bill would increase the daily limit for returnable containers from the existing $25 to $45.
HB 4389 (SB 328) - This legislation would raise the tax on a pack of cigarettes by another 5 cents and double the existing taxes on cigars, pipe tobacco and smokeless tobacco.
SB 882 / SB 883 - This legislation prohibits a retailer from purchasing, possessing, or selling tobacco products unless licensed to do so. If they are subject to the Tobacco Products Tax Act, retailers must indicate on their application or renewal for a sales tax license. If a person knowingly violated the Tobacco Products Tax Act by possessing in excess of $5,000 of contraband cigarettes, the Treasury Dept. may suspend the retailer’s sales tax license at the retail location where the violation occured.
SB 29 - This legislation would expand the current bottle deposit bill to include juice, water, tea and other non- carbonated beverage containers.
HB 4426 (SB 56) - This is the Catering Bill which AFPD convinced Gov. Granholm to veto last session. It would allow Class C liquor license holders to sell packaged liquor off premise. It could mean an additional 7,885 licenses to sell for off premise consumption.
HB 4444 (SB 287) - This bill would increase monetary penalties for selling tobacco to a minor without a penalty being assessed to the minor.
HB 4573 - This Bill would allow bars, restaurants and party stores to sell alcoholic beverages between 2:00am and 4:00am and between 7:00am and 12:00 noon on Sunday with a purchased permit. The yearly after-hours fee would be $2,500 and the Sunday before noon permit would be $1,500.
HB 4586 / HB 4751 - These bills will call for sales tax to be collected on carbonated soft drinks and bottled water. Retailers fear that such action could lead to the state imposing sales tax on our food products.
HB 4108 (SB 33) - These bills mandate standards for gasoline sold in Michigan shall include a requirement that all gasoline include a percentage of ethanol. AFPD Opposes a mandate because ethanol is not always available or accessible to a retailer.
SB 339 - This legislation’s 10-point increase would mean that Michigan retailers and consumers would pay an additional 6% for distilled spirits. That equates to $.90 on a $15 bottle. There would be no change in the minimum 17% minimum discount that currently retailers receive. (Governor Granholm’s plan would also call for a tripling of liquor license fees).
SB 289- Limits increases to price of gasoline in event of a declared emergency. This would apply only to retailers because there would be no limit on suppliers.
HB 4011 - Would allow retailers to purchase alternative fuels from other suppliers if their suppler doesn’t provide the fuel in question. We oppose this legislation without a provision to allow that the product and its price be advertised on a previously utilized sign.
HB 5059 - This legislationwould allow local units of government to impose a tax on diesel fuel and gasoline.
HB 5147 / HB 5148 / HB 6440 / HB6460 - These bills would require reverse vending machines to identify containers from other states by means of scannable codes on cans to determine eligibility for bottle deposit redemption.
HB 6250 - This bill amends the Consumer Protection Act to provide for Prima face instances of “price Gouging.” AFPD opposed this legislation because it fails to provide objective definitions of price gouging and fails to place retailers on notice as to what constitutes a violation of the law.
MIOSHA Ergonomic Rule
AFPD is opposing MIOSHA’s attempts to set more stringent ergonomics rules than that imposed by federal authorities. MIOSHA is attempting to pass rules requiring all employees, regardless of size, to have a written ergonomics plan, train all employees how to “recognize ergonomic hazards,” and prove in writing that the training took place for each employee.
2008 AFPD SUPPORTS
HB 4923 (SB 120) - A bill to require Department of Human Services to issue foods stamps to a recipient twice each month, rather than one time per month. AFPD was successful in its efforts in having this legislation passed. However, federal legislation preempted the State law. AFPD is currently working with the Department of Human Services and Food & Nutrition Services to modify the current food stamp distribution from the first 10 days of the month so that distribution takes place over 28 days in each month.
HB 1038 - This bill would amend the Michigan Business Tax Act to exclude taxes, fees and surcharges from the definition of "gross receipts".
HB 4086 / HB 4109 (SB 57) - These bills all would allow wine tasting under certain conditions in SDM retail locations.
HB 5102 - This bill prohibits lottery retailers from paying additional payouts or give something of value away for winning tickets. The AFPD was instrumental in obtaining passage of this bill.
SB 294 - This bill provides for property tax abatements for certain retail establishments - such as grocery stores or supermarkets that sell fresh meat & poultry products, fresh fruits, vegetables and dairy products in under served areas. This bill was passed into law and supported by AFPD.
SB 677 - Thjis bill eliminates the 7/8 cent per gallon Refined Petroleum Regulatory Fee. Since the funds have been redirected for the last two years to the General Fund and UST owner/operators must carry insurance, retailers should no longer be required to pay the fee. AFPD favors a comprehensive clean up program, as was being developed by the Refined Petroleum Advisory Board that would realistically address the realities of petroleum releases.
HB 1038 - This bill would amend the Michigan Business Tax Act to exclude from the definition of “gross receipts” certain proceeds, interest income, royalties, dividends, taxes, fees and surcharges. AFPD supports this bill as it would prevent the state from charging MBT on sales taxes collected by retail businesses.
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