Key information about new law:

• Michigan’s updated Food Law becomes effective on October 1, 2012. The law adopts a modified 2009 FDA Model Food Code, portions of the 2009 FDA Model Shellfish Code and various federal food processing codes and egg safety documents to provide national consistency for the food industry and assure our food safety laws are based on the best current science.
• The Food Law is monitored and enforced by the Michigan Department of Agriculture and Rural Development in partnership with Michigan’s 45 local health departments.
• There are now three categories of violations that may be cited during an inspection: Priority (P), Priority Foundation (PF), and Core (C). The previous violations terms of Critical and Non-Critical will no longer be used. Generally, violations that were previously cited as critical will now be cited as either P or PF and must be corrected immediately, or within at least 10 days. Non-critical violations will now be cited as C and must be corrected within 90 days.  
• During inspections, key changes in the law will be reviewed with food establishment managers.
• Some important changes include:

• Undercooked hamburgers may no longer be offered on a children’s menu to prevent foodborne illness.
• Cut tomatoes and cut leafy greens must be kept refrigerated for safety.
• Sets standards for food establishments to safely par-cook food.  This is a technique where food is partially cooked, then cooled and finished later.
• An exemption was created for small egg producers to sell directly to consumers, provided a warning label is placed on the carton stating “Packaged in a facility that has not been inspected by the department”.
• Raises the annual gross sales limit for cottage food processors from $15,000 to $20,000 and again to $25,000 in 2018.
• Requires mobile and special transitory food units to have a certified manager.
• Provides a license exemption for retail food establishments to sell at a farmers’ market, fair or festival without additional licensure.
• Contains provisions that will assist state auditors in monitoring food establishments for Bridge Card fraud.
• All new requirements of the law will be implemented on October 1st, except that the ability to limit the number of temporary licenses to an individual establishment within a single year will be implemented once required  guidance is developed, MFL 4103(6).

Information on the Food Law can be found at:  www.michigan.gov/foodsafety .

Patient Protection and Affordable Care Act (PPACA) Upheld

On June 28, 2012, the U. S. Supreme Court, in a 5-4 decision, ruled that payments required of individuals who do not maintain minimum health coverage under the “individual mandate” was not a penalty, but was a tax and allowed under the Congress’s power to tax under Article 1 of the Constitution. By determining that the mandate was a tax, the Supreme Court found the mandate was constitutional, but rejected the government’s arguments that the individual mandate was allowed under Constitution’s Commerce Clause or the Necessary and Proper Clause.

 

Moving Forward

Now that the courts have ruled PPACA constitutional, we are taking steps forward to make certain you know how to prepare for future compliance. Please see below for details.

 

The Next Steps for Employers must take to Comply

 

To comply with the Act in 2012 and 2013, an employer must:

 

1. Prepare to receive and properly distribute or apply any Medical Loss Ratio Rebate associated with 2011 insured health coverage.
2. Determine whether it must comply with the new Form W-2’s reporting requirement for 2012, distributed in January 2013 and, if so, obtain coverage health coverage information (This applies if the employer filed 250 or more Form W-2s for 2011).
3. Finalize Summary of Benefits and Coverage material for inclusion in 2013 Open Enrollment package for all enrollees
4. Complete updates to its Summary Plan Descriptions and plan documents to provide 2011 and 2012 changes.
5. Prepare for the inclusion of the $2,500 cap on salary deferral contributions in its health care flexible spending account for the 2013 plan year.
6. Determine if it is subject to the “PCOR fees,” paid by July 31, 2013 for 2012.
7. Notify its employees of the availability of health insurance exchanges by March 2013.
8. Prepare for 0.9% Medicare payroll tax increase on high income individuals for the 2013 tax year.

The Michigan Business and Professional Association (MBPA) and the Michigan Food and Beverage Association (MFBA) want to keep you up to date on a new proposal by Governor Rick Snyder that will dramatically change how Michigan’s largest health insurance provider is regulated. His plan is for it to become a nonprofit mutual insurance company that is regulated under the Michigan Insurance Code, like all the other health insurers in the state. 

 

Governor Snyder’s plan would create one set of rules for health insurers, leveling the playing field to increase competition, reduce healthcare costs, and give consumers more choices. This proposed change stems from his special message he delivered last September 2011. Snyder’s mission was to streamline and simplify burdensome regulations, which in turn, would reduce costs for job providers and create jobs. 

 

Among other provisions, the governor’s plan requires Blue Cross Blue Shield of Michigan to contribute about $1.5 billion over 18 years to a new nonprofit entity whose purpose is to fund initiatives that foster healthier lifestyles, provide better access to health care and improve public health. This plan also protects seniors by freezing “Medigap” coverage rates for four years.

 

Now the governor’s plan has to go forward for approval by the Michigan Legislature and be supported by the BCBSM Board. Snyder hopes to achieve these goals by the end of this year. MBPA/MFBA will keep you up to date as changes occur.

 

Please contact our Government Relations Team with any questions/comments by email at: bbochniak@michbusiness.org or by phone at (586) 393-8800.

The Michigan Business and Professional Association (MBPA) and the Michigan Food and Beverage Association (MFBA) are supportive of the gradual elimination of our state’s personal property tax (PPT) liability.  The PPT is a double taxation on our already over-burdened business community.  By eventually eliminating this tax liability, Michigan will become more competitive with our neighboring states and most importantly, keep our existing businesses “open for business.”

 

Small Business
Proposed legislation that has recently passed the Senate does offer benefits and much relief for the small business community.  In summary, this package of 8 bills would amend various acts and create a new act to provide tax exemptions for commercial personal property, industrial personal property, and new and previously existing manufacturing personal property; retain specific taxes and existing property tax exemptions for manufacturing personal property until it became eligible for a new exemption; and require the reimbursement of local taxing units for revenue lost as a result of the personal property tax exemptions.

 

We are specifically very supportive of Senate Bill 1070 which states that beginning December 31, 2012, eligible personal property would be exempt from the collection of taxes under the Act. “Eligible personal property” would mean personal property that meets both of the following conditions:

— It is classified as industrial personal property or commercial personal property under the Act.

— The combined taxable value of all industrial personal property and commercial personal property owned by or under the control of the owner claiming the exemption is less than $40,000 in that local tax collecting unit.

 

An owner of eligible personal property would have to claim the exemption by filing an affidavit with the local tax collecting unit in which the property was located and with the Department of Treasury by May 1 each tax year. The affidavit would have to require the owner to attest that the combined taxable value of all industrial personal property and commercial personal property owned by or under the control of that owner was less than $40,000 in that local tax collecting unit.  If an affidavit claiming the exemption were filed, the owner would not have to file a statement of personal property otherwise required under the Act.

 

Loss of Revenue for Local Government
Personal Property Tax Reimbursement Fund – The Fund would be created in the State Treasury. The Department of Treasury could spend money from the Fund, upon appropriation, only to reimburse local taxing units and tax increment financing authorities for any reduction in revenue resulting from the exemption of certain personal property from the collection of taxes under the General Property Tax Act.

 

The State Treasurer could receive money or other assets from any source for deposit into the Fund. The Treasurer would have to direct the investment of the Fund and credit to it interest and earnings from investments. Money in the Fund at the close of the fiscal year would remain in the Fund and not lapse to the General Fund. The Department would be the administrator of the Fund for auditing purposes.

 

Issue of Contention
As previously mentioned MBPA/MFBA is 100 % supportive of a gradual elimination of the PPT, but we are not supportive of one particular new aspect of this package of bills. An amendment was proposed and adopted into the Senate’s version of the bills that states that the PPT repeal would be nullified if promised replacement revenues were not provided.  While we understand the rationale for proposing this safeguard, we also know it is difficult for a business to plan ahead and make investments if there is a chance their tax liability might be reinstated the following year.

 

We will continue to keep you updated as this legislation moves through the legislative process.  It currently has passed the Senate and has now moved onto the House Tax Policy Committee for its review.  As always, please contact our government relations team with any questions or concerns.

The Michigan Secretary of State’s Office is issuing a new version of its enhanced driver’s licenses and state identification cards.

 

Please note the following:

• The new format will begin circulating in both the enhanced horizontal and vertical versions in February 2012.
• Existing horizontal enhanced licenses and state ID cards will be phased out of circulation by 2016. However, the current vertical enhanced Graduated Driver License will still be in circulation as late as 2017.
• Existing enhanced licenses and state ID cards will remain valid until their expiration dates. They will be reissued in the new format at renewal or if a replacement is needed.

 

For more information, please call the Michigan Secretary of State’s Office at 888-SOS-MICH (767-6424).

 

Effective: February 2012

New Features

• Laser-perforated abbreviation “MICH” is cut into card and can be viewed from either the front or the back.
• Card stock and laminate are slightly thinner than on previous enhanced licenses and ID cards.
• A new revision date of 02-01-2012 is printed on card to reflect these latest changes.

Sample Enhanced Horizontal License

(21-and-older format)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sample Enhanced Vertical State ID Card

(Younger-than-21 format)

• NEW: The card features the laser-perforated abbreviation “MICH,” which can be viewed when held up to a light.
• NEW: Card stock and laminate are slightly thinner than on previous enhanced licenses and ID cards.
• NEW: A new revision date of 02-01-2012 is printed on card to reflect these latest changes.
• “Under 18 until MM-DD-YYYY” and “Under 21 until MM-DD-YYYY” is printed as applicable.
• The front laminate of the cards includes the full-color shape of a Great Seal, viewable using a standard off-the-shelf black light, and a tri-color optically variable image of a bridge and the word “Michigan” that appears and disappears when viewed from different angles.
• The 2D bar code includes the cardholder’s full legal name, date of birth, date of issue, expiration date, address, gender, driver’s license or state ID number, issuing jurisdiction, card design revision date, and an inventory control number.
• The 1D bar code has the cardholder’s driver’s license or state ID number, date of birth, expiration date and a two-digit manufacturing number.
• The magnetic stripe has the driver’s license or state ID number, date of birth and expiration date.

Source: MI.GOV/SOS