July 18, 2008-

Legislative Committee Report-Annual Meeting 2008 Submitted: by Roger Philipi, Frank Molinaro, Gary Benning Legislative Consultation: Karoub and Associates of Lansing Michigan Efforts by proponents for a smoke-free Michigan continue as attempts are made to accommodate a compromise between the Michigan House and Senate on the smoking ban.  As BCAM members are well apprised, both chambers have passed differing versions of this smoking legislation.  The Michigan House of Representatives approved a measure that would ban smoking in most indoor workplaces with exceptions, such as casinos and bingo halls.  In response to the House action and with no prior indication of such movement, the Michigan Senate then passed a measure which would ban smoking in all workplaces without exception.  Since these two bills passed their respective chambers earlier this year, there has been little progress to report relative to a compromise. 

The Republican-controlled Senate insists that a total smoking ban would be the only measure they would (and did) support.  As far as the Senate is concerned, they already took a tough vote on this legislation and they are done with it.  Efforts to return an amended bill back to the Senate by the House would be futile.  On the House side, control of the chamber is in the hands of the Democrats and they are facing considerable pressure from various constituencies, including the Michigan Democratic Party. 

The Michigan Democratic Party would like bingo halls exempt from the smoking ban because this venue is a key funding source for the Party.  Any attempt to align the differing versions of this legislation will have to wait for the 2008 lame-duck session, which will take place after the November election.  All members of the Michigan House of Representatives are up for election this year and session has virtually come to an end for the summer.  As of yesterday the House tentatively scheduled three weeks of session for September, but it remains to be seen if they will actually convene.  Even though the stalemate exists on the smoking ban, it does provide lawmakers the opportunity to tell their constituents that they have passed a smoking ban. 

The Senate will blame the House and the House will in turn blame the Senate for not compromising on a final version.  This may be as far as the smoking ban gets this year.  Political posturing at its best in an election year.  It should be noted that if relations between House and Senate leadership continue to deteriorate during lame-duck and the anti-smoking lobbying efforts become unbearable on House members, House leadership could simply concur with the Senate version and the bill would then go to Governor Granholm for her signature.  This is an unlikely scenario given the above stated reasons and Karoub Associates has learned that various Senate Republican leaders have committed to the Detroit casinos that they "would be taken care of." 

Karoub Associates wishes it could provide a more accurate forecast relative to the final disposition of this matter, however, smoking ban legislation has been one of the most fluid and unpredictable legislative initiatives we have dealt with over the past decade.  Efforts to pass this bill have surprised everyone, including the media.  Karoub Associates will continue to participate in coalition meetings and talk with legislators on your behalf on this important issue.  It is the recommendation of the BCAM Legislative Committee to convene a special educational task force to create a center/customer educational plan to manage the impact of a final approval of this bill.       [ Board Approval to Convene Task Force working with Michigan Bowling Council.]

In other matters of interest to members of the BCAM, the Michigan Legislature continues to examine the effects of the newly enacted Michigan Business Tax.  Hearings have been ongoing throughout the state to solicit input from business owners on how this new tax has affected their business.  The Senate has even convened a special committee to look into the matter.  Reports indicate that many small business owners are being subject to tax increases well beyond those originally projected.  Several industries, such as manufacturing, have introduced legislation to address their own specific needs.  There are no less than 40 bills currently pending in the Legislature which would address specific grievances with the tax.  However, the Michigan budget remains in deficit and revenue projections for next year are not optimistic. 

Any attempt to decrease a tax liability will have a direct impact on the State Treasury.  Thus far, most Democrats, including Governor Granholm, have said no to these fixes.  If BCAM members have concerns with the new Michigan Business Tax, we should formulate a comprehensive strategy to address those concerns.  Often times a simple declaratory ruling by the Michigan Department of Treasury can clarify an issue.  There are nuances discovered each and every day with the Michigan Business Tax and the BCAM legislative committee should let Karoub Associates know of specific concerns as soon as possible.  The BCAM legislative committee recommendation is that a committee representative(s) will attend the next “public forum” to further update this confusing matter and review a proper course of action based on the results from that forum.   [Board Approved Action to Attend Meetings.]

As previously noted, the Michigan House of Representatives is up for election this year.  There are 44 members that will definitely not be returning to the Legislature due to term limits.  The Michigan Senate, Governor, and all other elected offices are not up for re-election this year.  It is expected to be a fairly quiet summer in Lansing, but we anticipate a long and contentious lame-duck session.

Respectfully,

BCAM Legislative Committee
Roger Philipi, Frank Molinaro, Gary Benning