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Government Update Column: February 2006
Government Update Column: February 2006

In November, we joined a coalition of business organizations and pharmaceutical companies that have united to stop a package of legislation in Lansing that would make it easier to sue pharmaceutical companies in Michigan. We are opposed to this legislation for two reasons: it opens the door to repeal the tort reform laws passed in the 1990s that protect the business community; and the life-sciences industry is important to the Ann Arbor area.

According to the Michigan Chamber of Commerce, in the closing days of the 2005 legislative session, State Rep. Edward Gaffney (R-Grosse Pointe Farms) introduced House Bill 5527 to repeal retroactively the state law designed to prevent litigation in state courts against pharmaceutical manufacturers that have already had their drugs deemed safe and effective by the U.S. Food and Drug Administration (FDA). HB 4981, introduced by State Rep. Alexander Lipsey (D – Kalamazoo) in 2005, has a broader focus: to expand the opportunity to file suit against nearly every industry and profession regulated under state and federal laws under the Michigan Consumer Protection Act. This legislation would affect hospitals, employment agencies, engineers, builders, auto dealers, medical professionals, barber shops and others. The Chamber will continue to oppose this legislation on behalf of our membership.

Biggest issues facing Chamber members

• Michigan’s Economy (32 percent)
• Healthcare (25 percent)
• Taxes/cost of doing business (21 percent)

On a recent e-mail survey, we asked members, “What is the biggest issue facing your business?” One hundred thirty of the responses we received were categorized as ‘government related’. 102 of these answers were either ‘ Michigan’s economy’, ‘healthcare’ or ‘taxes/cost of doing business.’ We gave members an open-ended question where they could write anything, and 78 percent of the answers were either Michigan’s economy, health care or taxes/cost of doing business. The message is pretty clear…

Ann Arbor and Washtenaw County take solace in comparing numbers (unemployment rate, etc) with the rest of the state. We like to think we are completely sheltered inside a University of Michigan bubble. But it is pretty clear that Ann Arbor area businesses do not consider themselves separate from the Michigan economy or from the problems facing businesses in Michigan and across the country. An economic downturn in Michigan does affect business in Ann Arbor – it is our members’ number one issue right now. Healthcare costs continue to be a major concern, as do taxes and the cost of doing business.

The Chamber is focusing its efforts on these issues in 2006. It is our job to make sure that Ann Arbor and Washtenaw County address these issues and not go with the U-M bubble theory.

 

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