Michigan Should Reform It's Escheats Laws to Remove Burdens on Business  

Michigan's Uniform Unclaimed Property Act (also referred to as Escheats) oversees what happens to so-called "unclaimed" or "abandoned" property, both tangible and intangible. Yet when it comes to business-to-business transactions, the law is an archaic and unnecessary requirement that serves little purpose in modern times. Unfortunately, reforming this medieval-style law has proved difficult in years past, because state government has come to rely on this money as a revenue stream...even though it's not state revenue to spend.

Many Michigan Chamber members recently received a Notice Regarding Unclaimed Property Voluntary Disclosure Program from the Michigan Department of Treasury. This notice has caused great confusion among the business community, but more importantly highlights the fact that this state law is just another example of a burdensome hurdle to doing business and growing jobs in Michigan. Furthermore, the state has an aggressive unclaimed property audit program relying on contingency-paid 3rd party firms - government-sponsored revenue bounty hunters - who hypothetically extrapolate to determine what has supposedly been "abandoned."

House Bill 4563 (Nesbitt, R-Lawton) would exempt business-to-business transactions from Michigan's burdensome Unclaimed Property Act. The bill has already passed the State House and is awaiting final action in the Michigan Senate. Michigan Chamber staff are working to get this bill to the Governor's desk before April. You can help us by contacting your state senator and urging him/her to support HB 4563. Send an action alert now. 

For further information, or an update, contact Tricia Kinley at 517/371-2100 or via email at tkinley@michamber.com.   

Michigan Senate Passes New Health Insurance Mandate   

Last week, the Michigan Senate approved legislation to add new mandated health insurance benefits to the books. Although the Michigan Chamber voiced its opposition to Senate Bills 414-15 and urged senators to look for a better alternative to covering children with autism spectrum disorders, the bills passed by a vote of 29 to 9. The legislation has been referred to the House Families, Children and Seniors Committee.

The Michigan Chamber is supportive of measures to help children on the autism spectrum by increasing access to treatment and spreading the cost of care. However, a health insurance mandate is not the best avenue to doing so because it cannot grant access to many of those in need, including children on the uninsured rolls and those in plans offered by large, self-insured companies because they are governed by the federal ERISA law, not state insurance laws. 

The Michigan Chamber has long opposed any new health insurance mandates because they ignore the important role of the free market and limit decision-making processes that should be made in the workplace between employers and employees about what diseases, medical conditions and other benefits they may or may not want covered.

Across the country, employers and individuals were outraged at the passage of the federal health care law and its focus on more government control and top-down mandates. We believe senators had the chance to benefit from the lessons learned during the federal health care reform debate and instead focus on a new model which facilitates more consumer choice and control. Unfortunately, many chose to embrace the failed policies of the past. 

 
As Senate Bills 414-15 move to the Michigan House for consideration, the Michigan Chamber will continue to work to identify a viable alternative to address this important public policy issue. 

Please let Wendy Block know if you have any questions at 517/371-7678 or wblock@michamber.com.