Government Relations Update

February 4, 2008

Proposed Ergonomics Rules Challenged

Michigan is considering adopting ergonomic standards for Michigan businesses through departmental rule, not legislation.If the proposed rules were to go into effect, businesses would need to train employees on the hazards of poor body alignment and proper technique when making repetitive on-the-job motions, adding a huge burden to almost every Michigan business.California is currently the only state to have such standards.The federal ergonomics rules are voluntary for businesses, while Michigan’s rules would not.Some estimates have the cost of compliance between $5,000 and $15,000 per business.

Senate Bill 843 has been introduced to prohibit the State from adopting ergonomic standards.The bill passed the Economic Development and Regulatory Reform Committee on a party line vote.There is no indication whether the House will bring up the legislation after likely Senate passage.

The Traverse City Area Chamber and the Northwest Michigan Regional Chamber Alliance supported the legislation in committee.

Individual Market Reform – Update

The Senate Health Policy Committee continued their information gathering of the individual health insurance market and the proposed legislation, HB 5282-5285.

This past week, the committee discussed risk pools and heard presentations by the Consumers for Fair and Affordable Insurance Reform (CFAIR), Coalition for Access and Affordability in Michigan (CAAM), and the Michigan Association of Health Plans (MAHP).The next committee hearing will focus on oversight, rate filing and loss ratios in the individual market.Presenters are tentatively set to include Attorney General Mike Cox and possibly the Michigan Office of Financial and Insurance Services.

The legislation can be viewed at www.mileg.org.

Changes to MBT Tackled – Update

Work on the latest round of bills to adjust the recently enacted Michigan Business Tax continued as the Senate Finance Committee passed the bills out of committee.

Changes contained in Senate Bills 1038, 1051, 1052, 1056, and 1058 include:excluding any tax, surcharge or fee from the gross receipts tax collected, such as sales tax collected by retailers; changes to a unitary business group; excluding Puerto Rico from the MBT; and amending the definitions of “business activity” and “business entity,” among others.Senate Bill 1038 passed on a party line vote, Senate Bills 1051, 1052, and 1056 passed unanimously, and SB 1058 passed 4-3.

Discussion continues as to the fiscal impact of the legislation.The bills can be viewed at www.mileg.org.