Governor adds support for ‘Fairness’New online directoryto help shoppers findMichigan retail stores

Governor Rick Snyder has provided momentum to Michigan retailers’ push for Main Street Fairness legislation by adding his public support for state action

Sarasin plans retirementafter decades of change

When Jean Sarasin joined the staff of Michigan Retailers Association in August 1981, it was a far different organization in a far different busi-ness world: smaller, less automated and, in a word, “simpler.”

After playing important roles in shaping MRA’s evolution and growth over the past 33 years, Sarasin will retire on July 4. Her work over the decades has helped the Association get out in front of change and become an efficient,

tech-savvy, member-oriented busi-ness that is the envy of state retail and other membership organiza-tions across the nation.

“What really stands out when I look back is how much everything has changed, and how much more complicated everything has be-come,” said Sarasin, executive vice president and chief operating officer.

“Take merchant processing, for example. Back in the day, the only transaction equipment a retailer had was a ‘knuckle-buster’ – a manual imprinter. Then came one type of electronic terminal, and we sold it to everyone. Now, there are so many ways for merchants to process, so many different kinds of hardware and software, and we

on the Internet sales tax collection issue.The governor told reporters on

February 26 he now supports legisla-tive action on the measure to begin

to level the retail playing field by requiring certain out-of-state online retailers, including Amazon.com, to collect state sales tax on goods sold to Michigan residents.

His comments followed similar remarks made the day before to law-makers by new state Treasurer Kevin Clinton and Lt. Gov. Brian Calley.

“The thousands of Michigan re-

tail businesses that face unfair competition each and every day from out-of-state online companies cheer Gov. Snyder’s support for action,” said James P. Hallan, president and CEO of Michigan Retailers Association.

“It’s long past time for the state to remove the serious disadvantage imposed on retailers that invest in Michigan, provide jobs to Michigan workers, pay state and local taxes in Michigan and support their local communities in countless ways.”

Court RulingsThe governor had said previously

that he favored a federal solution to the problem. In his recent comments he indicated that state action is also warranted, following recent legal de-

by Doug Henze

3 5 8Michigan Ballot Mania2014 elections are shaping up to be full of ballot proposals. Here’s a rundown on what issues could make their way to voters.Page 5

Free Samples WelcomeAn in-store, free sample, especially if it’s a fresh brewed cup of specialty coffee, is a great way to market a new product.Page 5

Small Thaw in SalesRetail sales and forecasts improved inFebruary, but still have a lot of frozen ground to make up due to the extreme winter.Page 3

Continued on page 4

®

April 2014 Vol. 39 No. 2 The official publication of the Michigan Retailers Association www.retailers.com

Continued on page 8

Continued on page 6

Continued on page 2

MRA executive Jean Sarasin is retiring after 33 years of key roles in the Association’s growth. Photo by David Trumpie

SM

SM

Driver’s licensesto note veterans

It’s not always obvious when a vet-eran walks into your business.

Beginning May 1, that will change. Thanks to a new designation on Mich-igan’s driver’s licenses, honorably discharged veterans can choose to be identified with a bright red “Veteran” located near the bottom of his or her license or Michigan ID card.

The designation will enable retail-ers to feel good about extending well-deserved thanks, in the form of a discount or promotion, for vet-

Main Street Fairness Now! Download and Mail Back

the Form.

There will soon be a new, free way for Michigan retail businesses to be found by shoppers looking to “Buy Nearby.”

An online, searchable directory of retailers across the state has been built for Michigan Retailers Associa-

tion’s Buy Nearby campaign by the Pure Michigan Business Connect program of the Michigan Econom-ic Development C o r p o r a t i o n (MEDC).

The directory is ready now for all retail businesses to add their infor-mation to the search tool, said MRA’s Tom Scott, senior vice president, communications and marketing.

“It’s important for retailers to put in their information as completely as possible, as soon as possible,” he said.

“We need the directory to be full of great merchants and their special-ties before we begin publicizing the directory to consumers. The idea is to drive up traffic and sales at local retailers by helping shoppers find what they’re looking for – nearby, in Michigan.”

InstructionsInstructions for adding your retail

business information are available online in the Buy Nearby retailer tool-kit at www.BuyNearbyMI.com/toolkit.

There is no charge for businesses to become part of the directory and no charge for consumers to use it.

In addition to inputting basic loca-tion and contact information, retailers need to add a comprehensive list of

2

In 1981, Jean Sarasin joined the staff of Michigan Retailers Associa-tion. On July 4, 2014, Jean will retire after an incredible 33-year career. She retires as executive vice presi-dent and chief operating officer, also serving on the boards of Michigan Retailers Association and Retailers Mutual Insurance Company.

What a fantastic run! As you will note throughout this is-

sue, Jean has many fans – and you can count me as one of the biggest!

Over the years she has shown an extraordinary ability for mastering the details while easily handling complex analytical problems that helped us lead change in an ever-changing industry.

The Association’s growth is due

Michigan Retailer www.retailers.com

“Her work ethic, honesty, personal integrity, organization and leadership have set the standard for excellence.”

by James P. Hallan, MRA President and Chief Executive Officer

Setting a standardof excellence

in large part to Jean’s ability to not only organize and maintain financial records meticulously, but to prepare and analyze complex financial models that have helped us analyze new busi-ness opportunities.

Numbers tell a story, and we al-ways know that Jean’s numbers are accurate and that we have an excel-lent roadmap for decision making.

On most days, you’ll find Jean pull-ing into the MRA parking lot at the early hour of 7 a.m. to tackle the emerging projects of the day. Her work ethic, honesty, personal integ-rity, organization and leadership have

set the standard for excellence. She has always been a trusted advi-

sor to me and earned the respect of every employee and board member at Michigan Retailers.

I consider myself to be very fortu-nate to have worked with Jean since 1985. We always have been on the same page, and I have trusted Jean implicitly. Her razor sharp mind and personal integrity are always guided by the over-arching principle that we should build a business model that serves the members in the best ways possible.

One of the most challenging busi-ness days in my own career was when Jean announced her retirement. But, as we all know, the only constant is change.

So Michigan Retailers will change. New employees have been hired, and with that new energy we will continue to do our very best to run an organi-zation of which you can all be proud.

Jean’s leaving is a mixed blessing. A very well deserved retirement looms for Jean and her husband, Tom, while Michigan Retailers can look back and thank her for a job well done.

All of us should raise our glasses and clink them in a toast to her for 33 wonderful years of service to us all.

Continued from page 1

Board of Directors:

Thomas UngrodtChairIdeation, Ann Arbor

James P. HallanPresident and CEOMichigan Retailers Association

Dan MarshallVice Chair Marshall Music Company, Lansing

Peter R. SobeltonTreasurerBirmingham

Jean SarasinSecretaryMichigan Retailers Association

Barb SteinPast ChairGreat Northern Trading Co., Rockford

Brian DucharmeAT&T

Becky Beauchine KulkaBecky Beauchine Kulka Diamonds and Fine Jewelry, Okemos

Orin Mazzoni, Jr.Orin Jewelers, Garden City

Joseph McCurryCredit Card Group

Larry MullinsBrandon Tire & Battery, Ortonville

R.D. (Dan) Musser IIIGrand Hotel, Mackinac Island

Joe SwansonTarget Corp.

James WalshMeijer, Inc., Grand Rapids

D. Larry ShermanBoard Member Emeritus

Michigan Retailers Services, Inc.Board of Directors:

Bo BrinesLittle Forks Outfitters, Midland

Bill GoldenGolden Shoes, Traverse City

Lisa McCalpine-WittenmyerWalgreens

James P. Hallan Thomas B. ScottPublisher Editor

Pat KerwinDesign Manager

Publication Office:603 South Washington AvenueLansing, MI 48933517.372.5656 or 800.366.3699Fax: 517.372.1303www.retailers.comwww.retailersmutual.com

Subscriptions:Michigan Retailer (USPS 345-780, ISSN 0889-0439)is published in February, April, June, August, October and December for $20 per year by Michigan Retailers Association, 603 South Washington Ave., Lansing, MI 48933. Subscription fees are automatically included in the Michigan Retailers Asociation membership dues. Periodical postage paid at Lansing, Michigan. POSTMASTER: Send address changes to 603 South Washington Ave., Lansing, MI 48933. The Michigan Retailer may be recycled with other white office paper.

erans’ service and be confident the discounts are going to deserving veterans.

For businesses offering a year-round discount, the Michigan Veterans Affairs Agency says it will

publish a list on www.michiganvet-erans.com and promote the retailers through social media.

Growing NumbersMore than 680,000 veterans call

Michigan home, and those num-bers are growing with the federal troop drawdown. State agencies, community service groups and pri-vate retailers will be better able to serve veterans with the services available to them with the license designation.

“This is one more way Michigan can honor our state’s veterans and make their day-to-day lives a little

easier,” said Jeff Barnes, director of the Michigan Veterans Affairs Agency.

“I encourage retailers to invite veterans in and participate in this program.”

An honorably discharged vet-eran can add the designation to his or her driver’s license or state ID card at any local Secretary of State branch by presenting of-ficial discharge d o c u m e n t s . I f renewing their l icense, veter -ans only must pay the normal renewal fee. Oth-erwise, they will

pay the standard fee for a dupli-cate or corrected license.

“It’s an honor for our department to help our proud veterans get the benefits and discounts they have earned and deserve,” said Secretary of State Ruth Johnson.

“I hope every clerk, waitress and bank teller who sees the designation will take a moment to thank that vet-eran for their service and sacrifice.”

Highest CharacterThe designation means retailers

can be assured they are dealing with honorably discharged veterans – those with the highest character of

service – without having to bother with complex federal forms.

For retailers interested in at-tracting veterans as customers, a discount or value-added service specifically for veterans creates goodwill among veterans. If retailers currently have a discount in place, now is the time to review the poli-cies and update them to include the new license or ID cards and provide training to front-line staff for the best customer service experience.

R e t a i l e r s c a n c o n t a c t t h e Michigan Veterans Affairs Agency with questions about veteran programs or to be listed on the MVAA website. Quality of Life Analyst Lynn Hendges can provide assistance at 517.284.5227 or via email at HendgesL2@michigan.gov.

Driver’s licenses to note veterans

April 2014 3

Sales and short-term forecasts for Michigan retail businesses improved during February, but they still have a lot of frozen ground to make up after the extreme winter, according to the latest Michigan Retail Index, a joint project of Michigan Retailers Associa-tion (MRA) and the Federal Reserve Bank of Chicago.

“We saw a small thaw in the num-bers, but February’s unrelenting cold and snow continued to hammer most consumers and retailers,” said James P. Hallan, MRA president and CEO.

“What we need is a good, warm spring to help everybody get back on track.”

The February survey of MRA mem-bers showed 42 percent of retailers increased sales over the same month last year, while 46 percent recorded declines and 12 percent reported no change. The results create a season-ally adjusted performance index of 49, up from 42.5 in January but short of the important 50 mark.

The 100-point Index gauges the per-formance of the state’s overall retail industry, based on monthly surveys conducted by MRA and the Federal Re-serve. Index values above 50 generally indicate positive activity; the higher

the number, the stronger the activity.Looking forward, 54 percent of

retailers expect sales during March–May to increase over the same period last year, while 19 percent project a decrease and 27 percent no change. That puts the seasonally adjusted outlook index at 61.7, up from 58.5 in January but below 67.3 a year ago.

Retailers in the central region of the state fared the best in February, with

Seasonally adjusted diffusion index, calculated by adding the percent of respondents indicating increased sales and half the percent indicating no change, and then seasonally adjusting the result using the U.S. Census Bureau’s X-11 Seasonal Adjustment procedure. Index values above 50 generally indicate an increase in activity, while values below 50 indicate a decrease.

3-Month Outlook Index

70

80

60

50

40

30

13-14

12-13

JAN

MAR

MAY

JUN

APR

FE

B

OCT

SEP

NOV

JUL

AUG

DEC

Current Performance Index

70

80

60

50

40

30

13-14

12-13

JAN

MAR

MAY

JUN

APR

FE

B

SEP

OCT

NOV

JUL

AUG

DEC

Retail sales and forecasts improve, but still coolMICHIGAN RETAIL INDEX

700

600

500

400

300

200 (millions)

20132012 2014

522495

648671

563 553

Dec Jan Feb

Be sure to complete youronline survey each month!

58 percent reporting increases and 42 percent decreases. The northern re-gion was the only other area in which more retailers rang up gains than saw declines – 39 percent to 33 percent.

Across the nation, February retail sales excluding autos and gasoline rose 0.3 percent, slightly better than expected, according to the U.S. Com-merce Department. That followed a revised 0.6 percent decline in January.

February state sales tax revenues totaled $494.6 million, down 5.2 per-cent from last year and $21.9 million below the forecasted level.

Complete results of this month’s Michigan Retail Index—including data on sales, inventory, prices, promotions and hiring—are available at www.retailers.com/mra/news/michigan-retail-index.html. The website includes figures dating back to July 1994.

SM

Celebrate Michiganand the greatlocal shopping

across the state.

Get Ready For Buy Nearby

“Get CaughtBlue-Handed Day”

BuyNearbyMI.com

®

Saturday, October 4, 2014

64 Michigan Retailer www.retailers.com

Continued from page 1

Continued on page 5

“She’s always a step ahead of the game regarding the budget and finances of this organization.”

Sarasin planning retirement after decades of changework to find the right solution for ev-ery business.”

To the Penny

The Jackson native and former bank clerk was employed by a lo-cal accounting firm when she heard about an opening at Lansing-head-quartered MRA. She interviewed for the position and was hired to work as both an accountant and bank-card clerk.

In those still-early years of bank-is-sued credit cards, MRA worked with Michigan National Bank to process the paper slips retailers ran through their credit card imprinters. Each day, she and the other two clerks rec-onciled thousands of slips with the accompanying merchant summary slips, then reconciled all the slips with the totals.

“We didn’t leave for the day if those numbers were even a penny off,” said Sarasin. “Many nights we were there until midnight and beyond, especially during Christmas season.”

On the rare months when pro-cessing volume hit $1 million, MRA staff celebrated after work with piz-za and beer. Merchants were paid every two weeks for their credit card slips and there was only one processing rate.

Today, of course, processing is international in scope and fully com-puterized, there are more than 700 types of rates (depending on the type of customer card) set by the giant card associations (Visa and Mas-terCard), merchants’ payments are deposited on a timely basis, and MRA processes an average of $2.7 million in members’ transactions every day – nearly $1 billion annually.

“Over 30 years that’s how things have changed,” she said. “Everything has become bigger, faster and more complex. MRA has adapted along with it to serve our members.”

Highly RespectedSarasin is most recognized for her

tireless, painstaking work to keep MRA’s finances in excellent shape. Board members and outside auditors regularly praise the Association’s fi-nancial accounting and the woman behind it.

“She is one of the most efficient people I’ve worked with in my ca-reer. She’s always a step ahead of the game regarding the budget and

finances of this organization,” said Tom Ungrodt, chair of the MRA Board of Trustees. He is president and CEO of Ideation, Inc., Ann Arbor, a leading producer of marketing so-lutions for independent gift retailers across the nation, plus he oversees two Michigan gift stores.

“She also takes everything in stride,” Ungrodt added. “No matter how difficult the task, she always takes it with a smile and says, ‘we’ll take care of it.’”

Peter Sobelton, chair of the Retail-ers Mutual Board of Directors, also has high praise for Sarasin. He is own-er-partner in several retail property com-panies, the former owner of two retail businesses in Bir-mingham and has an MBA in finance.

“Her attention to deta i l…has been without equal,” So-belton said. “Her ability to comprehend government documents, complete and then file

them has never ceased to amaze the entire board. Her knowledge of the organization and its people has propelled MRA to a level of efficien-cy unsurpassed by any other association.

“I am sure I speak for the entire board when I say that it has been a great pleasure working with her, and how much easier she has made our jobs as board members by her ability to explain, in easily understood terms, exactly what a page of numbers truly means.”

Board InvolvementSarasin credits board members

with “challenging management to be the best we can be.”

“I have the highest respect for the board members, because they make us better,” she said. “Throughout MRA’s history we have had really good board members who are dedi-cated, professional and ask great questions.”

She also praises the only two CEOs she has worked with during her ten-ure: James P. Hallan, president and CEO since 2008, and Larry Meyer, now retired, who hired her.

“I can’t say enough good things about Jim and his management of this organization,” she said. “And Larry, he was a great mentor to me. He had

a lot of business and financial knowl-edge and he set the tone right from the start.

“He saw some capabilities in me that I didn’t see…and as the job grew, I grew.”

Hallan, who has worked with Sara-sin since 1985, admits one of his most challenging days was when she told him she was retiring.

“She has always been a trusted ad-visor to me and earned the respect of every employee and board member at Michigan Retailers,” he said.

He points to her excellent financial record keeping and ability to prepare complex financial models for analyz-ing new business opportunities as a big factor behind MRA’s robust growth.

“We always know that Jean’s num-bers are accurate and that we have an excellent roadmap for decision mak-ing,” said Hallan.

More ResponsibilitiesSarasin took on additional responsi-

bilities almost from the start, moving out of the bankcard area and into membership and insurance services. She continued to take on more and more, eventually rising to the number two executive at MRA.

She was named staff accountant in 1984, director of administra-tion in 1987 and vice president of finance in 1990. She became senior vice president in 2001, executive vice president in 2008 and added the COO title in 2011.

She also was named to the Retailers Fund (forerunner of Retailers Mutual) Board of Directors in 1997 and to the MRA board in 2002.

Her accomplishments are many. She says she’s proudest of her work in transforming all of MRA’s sys-tems from manual to computer in the 1980s, including adding a mem-

bership database with extensive capabilities.

“When I started, all the account-ing was manual. I had a part in bringing in the first computer and worked with the software developer to create the database for member-ship, group insurance and workers’ compensation insurance. I’m pret-ty proud of that. It was like a mini

main-frame, not like the independent computers we have today.”

In the late 1990s she also led a team that reviewed all of the association’s computer needs and recommended the organizat ion s tay wi th Apple computers. It was a far-sighted move at the time, one that bucked the near u n i v e r s a l t re n d of businesses op-erating in a P.C. environment.

Strong BalanceHer love for numbers, order and

efficient procedures has served her well throughout her career. Although her chief operating offi-cer’s duties also put her in charge of such areas as human resources and customer service, she favors finances and accounting.

“That’s the side I have always en-joyed the most. Every month when you complete financial statements, you’ve finalized a job. You always have that feeling of accomplishment,” she said.

“I like working with, and analyzing, numbers. They make sense, the num-bers mean something and everything has to balance in the end.”

Seeking greater balance in her life is part of the reason she’s retiring, she says. Although she is MRA’s most senior employee, she is not the oldest. She will be a young retiree, still in her 50s.

“I’m excited. I feel like it’s time to move on to something different, spend more time with my husband, Tom, and do some traveling. And MRA can get some new blood in here, with new thoughts and energy.”

She and Tom, who is already re-tired, plan to sell their Okemos home later this year and move to Traverse City. Their adult son is married and lives in Virginia. In Northern Michigan, she expects to keep up an active lifestyle, full of walking, hiking, biking, snowshoe-

Jean Sarasin’s oversight of MRA’s finances and accounting have provided “an excellent road map for decision making.” Photo by David Trumpie

5

Continued from page 4

April 2014

Sarasin planning retirement

Free samples add warm, personal touch to marketingby Doug Henze

Grabbing market share in a mature industry is never easy, and in the cof-fee business it’s a jungle out there.

So when Bruce Block joined The Coffee Barrel in Holt last year to

help with product development and marketing, he knew getting sales percolating for a new Mich-igan-themed line of products in retail stores would take a special blend of good coffee and clever marketing.

He decided the right strategy called for the personal touch to compete against all the aisles packed with colorful, appealing packaging. Setting up shop just inside mer-chants’ doors in September, Block drew consumers’ attention to the Michigan Roasted line with a friendly greeting, a free cup of fresh-brewed coffee and whipped cream for those who asked.

“I knew we had to create a fol-lowing,” said Block, an industry veteran who began working for Tim and Shawn Brenner’s specialty coffee roasting business last April.

“I’d go in and do these two-to-three-hour greetings. I ’d put a one-pound bag of coffee in shoppers’ hands – while they were sipping – and more often than not, they wouldn’t hand it back. Sales were made, as there were a lot of smiles. I think people felt welcomed and a bit surprised.”

RomanceMass merchandisers may know

how to catch consumers’ eyes, but they miss coffee’s real selling point – aroma and taste – Block said.

“The problem is, the romance is trapped in the bag. When you’re there brewing and sampling and talking,

ing and cross country skiing.“My guess is I’ll also find good plac-

es to do volunteer work. That’s a big thing in my family. And moving into a new community, it’s a great way to meet people.

“I’m also looking forward to catch-ing up on all the books I want to read and all the yarn I have that I need to knit.”

ReorganizationSarasin announced her retirement

date to the board two years in advance to give the organization plenty of time to adjust. Her duties at MRA are being divided among current personnel.

William J. Hallan, senior vice president, operations and general counsel, has added her overall management responsibilities to his plate. Long-time Executive Assistant Amy Jolley will handle human resources, and Cheryl Szczubialka, recently hired as staff accountant, will handle MRA’s financial and accounting duties.

Sarasin admits 33 years working for one organization is a long time, even if it has flown by.

“Wow, 30-plus years. I’m amazed sometimes when I think about it. It sure doesn’t seem that it has been that long…especially since I haven’t been getting any older!”

you’ve released the romance.”Block, who is test marketing

the coffee line in six stores, is counting on the made-in-Michigan theme to add further appeal. The

10 coffees in the new line have names such as Sleeping Bear Sunset, White-Tail Morning Blend, Mackinac Fudge and Traverse City Cherry.

“They are all presented in a Michigan knotty pine display I had designed,” Block said. “The displays are like furniture.”

For The Cof fee Barrel – founded in Lansing in 1983 by a previous owner and later moved to Holt by the Brenners – the campaign represents the evolu-tion of company marketing.

The wholesaler ships the 100 coffees it roasts and fla-vors to customers around the Midwest and as far south as Florida. Beyond a café at-tached to the roasting facility, where retail customers can try the coffee, there was little effort to market the product, Block said.

“We do a really fine job with the coffee and the coffee is outstand-ing,” Block said. “The whole Michigan thing gave it a niche.”

Repeat SamplingsBlock learned the coffee business

while working for a decade for Para-mount Coffee in Lansing, which his father helped found, and later for an-other industry company.

“At different times I was the buyer, the roast manager and later got in-volved in marketing,” he said.

To sell product for The Coffee Barrel, Block did samplings at retail stores two to three times a week. He varied products to give consumers a taste of the full line.

“Generally, the next time I visited

the store, they would be low or out of that product,” he said.

The next step will be to convince retailers that it’s worthwhile to staff sampling stations themselves, Block said, adding that he plans to meet with several large retailers who are interested in the concept. The cof-fee retails for $12.99 to $14 a pound – about $4 to $6 dollars above the store’s cost, he said.

“There’s absolutely no reason it shouldn’t be very successful,” Block said of the sampling technique. “For a retailer who is looking for something a little bit different, this is it: a warm greeting, a hot cup of coffee and re-sulting sales that more than offset the cost of the sampler.”

Emotional AppealBlock said sampling could be ap-

plied not only to food items but also to other products that have an emo-tional appeal to consumers.

“The cosmetic industry, they live off that,” he said. “They put a cosmet-ic on a person and the person usually walks out with something.”

He also recalled walking through a furniture store and being invited to plop on a bed to try out a mattress.

“If I’m a retailer, I’m going to try to appeal to any of the senses I can,” he said. “And I know by doing that, I’m going to sell more.”

That personal touch and in-store

experience also give a brick-and-mortar retailer an effective strategy to combat Internet competition.

“Consumers are really people wait-ing to be surprised. People enjoy being greeted, and a warm welcome, a savory cup and some compelling product information can make for a win-win situation.”

Doug Henze is a freelance writer and former business reporter for the Oak-land Press in Pontiac.

Bruce Block of The Coffee Barrel in Holt sets up his sampling station, complete with custom-made display, inside Foods for Living in Okemos. Photo by David Trumpie.

A free sample of fresh-brewed specialty coffee adds a warm and personal touch to the company’s marketing campaign. Photo by David Trumpie.

6 Michigan Retailer www.retailers.com

Continued from page 1

cisions on the issue. The U.S. Supreme Court on De-

cember 2 refused to hear Overstock.com’s and Amazon.com’s appeal of New York state’s Main Street Fairness legislation. New York’s highest court had upheld the constitutionality of that state’s fairness law.

Michigan’s legislation is modeled after New York’s, Hallan said.

Hallan explained that current Michigan law encourages and re-wards online “vapor retailers” such as Amazon by giving them a 6 percent price advantage over Michigan com-panies on goods they sell to Michigan residents. The price advantage comes from not being required to collect sales tax, because the companies lack a physical presence in the state.

The fairness bills would redefine physical presence to include certain out-of-state online retailers – those doing business in the state through subsidiaries or a network of affili-ates – to start collecting sales tax on goods sold to Michigan purchasers.

Amazon currently collects sales tax in 19 states, an action often prompted by state legislation, according to Hallan.

Slow ProgressThe Senate Economic Devel-

opment Committee held its first hearing on Senate Bills 658 and 659 in late January. Similar legislation, House Bills 4202 and 4203, cleared the House Tax Policy Committee last year but so far has not been sched-uled for a vote.

“Our state needs lawmakers to support Michigan job providers and local communities by enacting Main Street Fairness legislation this year,” said Hallan.

Main Street Fairness is MRA’s top legislative priority.

“We have been pushing hard for legislative action and believe there is sufficient support among lawmak-ers for passage,” said MRA’s William J. Hallan, senior vice president, op-erations and general counsel. “Not surprisingly, this issue has been caught up in the politics surround-ing tax issues, and legislative leaders have been reluctant to put it up for a vote.”

In his comments to reporters, the governor made it clear he doesn’t believe fairness legislation can be considered a tax increase.

“I don’t view it as a tax increase. I view it as a collection of a tax that’s already due,” Gov. Snyder was quoted as saying.

Governor adds support for ‘Fairness”What is Main Street Fairness legislationand what would it do?

What is Main Street Fairness?Main Street Fairness is legislation de-signed to ensure a fair and level field of competition for Michigan’s retail-ers by requiring certain out-of-state online retailers to collect and remit Michigan’s sales tax.

How does the legislation work?The legislation creates a new defi-nition of “physical presence” to in-clude companies, such as Amazon, that operate in Michigan through subsidiaries, affiliate networks or other persons that have substantial nexus with the state.

Does Main Street Fairness only ap-ply to Amazon?No. The legislation would apply to any out-of-state online or catalog company that has a defined physical presence in Michigan.

What is happening in Michigan undercurrent law?

Who is currently required to collectand remit sales tax?Only retailers that have a physi-cal presence in Michigan are re-

quired to collect and remit the sales tax. Some online companies exploit this loophole and avoid collecting sales tax on goods sold to Michigan residents by doing business in the state through sub-sidiaries or through a network of affiliates.

Do Amazon and Overstock current-ly collect Michigan sales tax?No. But they should! Amazon has a wholly owned subsidiary, Bril-liance Audio, located in Grand Ha-ven, Michigan. Additionally, both Amazon and Overstock use a vast network of affiliates in Michigan to sell products through their online sites. Amazon also leases space in downtown Detroit for employ-ees, and Crain’s Detroit Business reported that the company was expanding its footprint downtown in July 2013.

Aren’t online shoppers already re-quired to calculate and pay use tax on their purchases when they file their income tax returns? Yes, but most do not. The majority of Michigan residents apparently do not know they are required to pay use tax on items purchased from out-of-state online or mail-order

Frequently asked questions about Main St. Fairness

7April 2014

companies. This tax is due when an individual files a personal income tax return. In fact, the Michigan Department of Treasury found that only 1.5 percent of the estimated tax liability on remote sales was col-lected in 2012.

How does Main Street Fairness impact Michigan retailers and customers?

Why is Main Street Fairness impor-tant to retailers?Main Street Fairness levels the play-ing field for Michigan retailers who are at a disadvantage because they are required to collect the 6% sales tax. Without Main Street Fairness, consumers will continue to use brick-and-mortar retailers as show-rooms and avoid paying sales tax by purchasing products online from out-of-state companies.

Would all online-only retailers be re-quired to collect and remit sales tax?No. Only retailers that have a defined physical presence in the state would be required to collect and remit sales tax. The defined physical presence includes companies that operate in Michigan through subsidiaries, affiliate networks or other persons that have a substantial nexus with the state.

If I have a brick-and-mortar store located in Michigan, how would the

legislation affect me?Because you already have a phys-ical presence in Michigan, you are already required to collect and remit Michigan sales tax. The leg-islation would remove the com-petitive advantage out-of-state online companies have and would enable you to compete on a level playing field.

If I have a brick-and-mortar store in Michigan but I sell products online to other states, would the legisla-tion require me to collect and remit sales tax for other states?No. The legislation only deals with Michigan sales tax on items sold in Michigan. Some other states have passed similar legislation; however, you would not be required to collect and remit sales tax in any of those states unless you have a physical presence in that state.

As a consumer, what are my tax obliga-tions for online or catalog purchases?Under current law, consumers are charged a 6 percent sales tax at the point of sale if the retailer has a physical presence in Michigan. A 6 percent use tax is owed on purchas-es where sales tax is not charged at the point of sale. The use tax must be calculated and reported on an in-dividual’s state income taxes. Main

Street Fairness legislation would simplify the collection process for consumers.

Why should we act now?

What impact does the legislation have on the state? The Michigan Department of Treasury estimates that $508 mil-lion will be lost in FY 2015 due to uncollected sales tax revenue – largely from remote purchases – and the Department projects that number to increase each year. Put another way, that means Michigan retail businesses will lose $8.5 bil-lion in sales (and the jobs that flow from those sales) to companies outside Michigan that don’t invest in our state, don’t employ Michi-gan workers and don’t pay taxes in Michigan. That is a dagger in Michigan’s economy and our local communities. Schools and local governments receive the major-ity of sales tax dollars raised, with 73 percent going to the school aid fund and 24 percent going to local governments.

Is it constitutional?Yes. On December 2, 2013 – “Cy-ber Monday” – the U.S. Supreme Court declined to hear Over-stock’s and Amazon’s appeal on New York’s Main Street Fairness

legislation. Earlier this year, the New York Court of Appeals, the State’s highest court, held that New York’s Main Street Fairness law was constitutional. Specifi-cally, the New York Court of Ap-peals held that the affiliate pro-grams of Amazon and Overstock created sufficient nexus for sales tax collection.

What are other states doing to ad-dress this problem? 24 states have passed legislation to end the unfair advantage out-of-state online retailers have over in-state retailers. These states in-clude California, Georgia, Illinois, New York and Texas. And Amazon now collects sales tax in 19 states, an action that was often prompted by legislation. More than 60% of the United States population now lives in a state where Amazon col-lects sales tax.

I’ve heard a federal solution is the only way to really change the law, is this true?No. While Congress is the only en-tity that can tax interstate com-merce, states can levy and address how state-based taxes are collected. While it is good for Congress to fo-cus on a federal solution, it is only doing so because of the actions by the states.

IT’S THE LAW

‘We the People’ takesmany forms this yearby William J. Hallan, MRA Senior Vice President Operations and General Counsel

D e m o c r a c y is government by the people. Typically, “the people” exer -cise their voice through elected officials, com-monly referred to as a represen-

tative democracy or a republic. In Michigan, we elect our gover-

nor, senators and representatives to pass laws on our behalf. We also elect Michigan Supreme Court justices, the attorney general, secretary of state and many other public offices.

In fact, all of those offices are up for election in 2014.

However, representation in the leg-islature is not the only way Michigan citizens exercise their voice. Our state constitution provides that the people may enact initiatives, referendums and constitutional amendments.

This is often called a direct demo-cratic process. James Madison, our fourth president and an author of the Federalist Papers, cautioned about the dangers of a direct democracy.

He was concerned that a faction – a group of individuals united by im-pulse or passion – could overwhelm the true interests of the community. Madison wrote, in Federalist No. 10:

[I]t may be concluded that a pure democracy…can admit no cure for the mischiefs of a faction. A common passion or interest will, in almost every case, be felt by a majority of the whole; a communi-cation and concert result from the form of government itself; and there is nothing to check the inducements to sacrifice the weaker party or an obnoxious individual. Hence it is that such democracies have ever been spectacles of turbulence and conten-tion…A republic, by which I mean a government in which the scheme of representation takes place, opens a different prospect, and promises the cure for which we are seeking.

I hope your eyes didn’t glaze over reading that text from 1787, but if they did, I will summarize. Direct democracy (e.g., a ballot proposal) can be dangerous because it lacks necessary checks and balances, and without representation the direction of government can turn on a whim.

Growing Popularity Although “dangerous”, ballot pro-

posals have become an increasingly popular form of governance. Since the adoption of the current Michigan Constitution in 1963, 74 constitutional amendments, 21 legislative referen-dums and 13 legislative initiatives have been presented to the people for a vote. In 2012 alone, we had six measures on the ballot.

Each type of ballot proposal has unique characteristics. An initiative is the power of the people to propose or reject a law. A referendum is the power of the people to approve or reject a law enacted by the legislature. A constitu-tional amendment does exactly what it says: it amends our constitution.

Ballot proposals have been used for a variety of reasons. Often, they are used to energize voter turnout. Minor-ity parties may use ballot proposals to advance their agenda when they lack the ability to do so in the legislature.

Additionally, our elected officials use the process when they want to punt on an issue and leave it up to the voters. Whatever the reason, ballot proposals have become the soup du jour of political governance.

2014 PreviewThe 2014 ballot is also shaping up to

be full of ballot proposals. A number of referendums, initiatives and consti-tutional amendments may appear on ballots at 2014 elections, including:

1. A referendum to replace funding lost by elimination of the Personal Property Tax.

2. A referendum on the law that au-thorizes the hunting of wolves.

3. An initiative regarding abortion insurance.

4. A constitutional amendment to extend the power of referendum to bills containing appropriations (currently, bills that contain appropri-ations are not subject to referendum).

5. A constitutional amendment to prohibit fracking (a procedure for extracting natural gas from deep un-derground).

6. An initiative to raise Michigan’s minimum wage.

7. A constitutional amendment to establish a part-time legislature.

Most AttentionThe proposal likely to get the most at-

tention will be the initiative to raise the minimum wage to $10.10 by January 1, 2017. A voter initiative is first presented to the legislature for consideration. The legislature may enact it, reject it or pro-pose an alternative initiative.

8 Michigan Retailer www.retailers.com

Continued on page 11

Continued from page 1

Membership Services CornerQuick notes on key services. Call 800.366.3699 for details.

Quick notes on key ser -v i c e s . C a l l 800.366.3699 for details.

We appre -c i a t e y o u r membership. Let us know whenever we

can help you with a question or a problem, no matter how large or small.

Credit Card Processing• It’s tax time. Please verify your

1099K form for accuracy. Contact customer service if you require a W-9 form.

• Please notify customer service of any Tax ID or bank account changes.

• If you receive a “Re-Enter or Lost Communication” response when processing a transaction, please contact customer service so we can verify the transaction before you continue to process.

• We have cell phone processing available. Call for PayFox information.

• To reduce customer disputes, be sure to imprint and obtain a signature for every sale when pos-sible. Also, credit card terminals

by Penny Sierakowski, MRA Customer Service Department Manager

can support your store policies by printing them on receipts. Contact us to find out about Footer Lines.

• Control access to your credit card processing and only allow authorized people to handle your point-of-sale system.

• Data security compliance is mandatory; therefore, you must complete an annual PCI Self-As-sessment Questionnaire to verify if your business is PCI compliant. Visit www.compliance101.com to begin the questionnaire.

• These terminals are no longer PCI Compliant: Zon Jr, Tranz, Omni and Hypercom T7P. Contact custom-er service for upgrade information.

• To make sure your credit card transactions are processed at the low-est cost, always answer the following prompts on keyed transactions:

- Enter AVS (street number and zip code) of the billing address

- Enter purchase order number - Enter sales tax amount i f

prompted - Obtain and pass through a valid

authorization number - Make sure authorization and set-

tlement amounts match (except for tip adjustment)

- Settle within 24 hours.

New online directory for MI retail stores“keywords” of products, services, brands and any other type of in-formation that will enable their business to appear in the search results for a shopper looking for those specific or similar items.

“The retailer is responsible for putting in and updating his or her information about the business and its merchandise,” Scott said. “That means the responsibility for successful re-sults rests with the individual retailer, as it should.”

Basic information for members of MRA should already be in the directory because of the work done by MEDC, Scott said. But members will need to correct any information that’s wrong or miss-ing. They’ll also need to add the keywords best suited for their business.

Buy NearbyMRA launched the Buy Nearby

campaign last year to encourage consumers to buy from businesses in Michigan, as well as to under-

stand the economic benefits from keeping their shopping dollars in Michigan.

The campaign runs year round. The first Saturday in October is designated as a fun and festive cel-ebration of Buy Nearby to focus retailer, shopper and news media attention on the campaign.

This year’s celebration, branded as Get Caught Blue-Handed Day, is October 4. Shoppers are encour-aged to “get caught” shopping at nearby Michigan stores.

“We need the directory to be in solid shape for use by consumers well before October 4,” Scott said.

He praised the work of Pure Mich-igan Business Connect in adapting part of its searchable directory of Michigan companies to create the Buy Nearby directory for shoppers and retailers.

“Through Buy Nearby we’re en-couraging Michiganders to shop at Michigan businesses. So it only makes sense for us to provide con-sumers with a quick and easy way to find what they’re seeking.”

9

“The key is to hire for success, talk about success, reward success, share ideas for success.”

April 2014

After 53 years I know … make ‘rainy days’ pay offby Steve Flaster

Because I came p r o g r a m m e d for success and then was given opportunity and motivat ion by management, I became one of t h e t o p s a l e s people in Jacob-

son’s 22 stores. Scott, our exceptional store

manager, would stand at the staff entrance in the morning to welcome and wish us a good day, and in the evening to say good night and ask how our day went.

I remember a particularly mean winter day (much like those in 2014) when there were few if any customers in the store. Evening came, and Scott took his position.

One by one he asked his staff how the day went, and one by one they attacked him with, “How do you think it went? No customers, no business, it was just awful.” … as if it were all Scott’s fault!

When it came time for Scott to ask about my day, I smiled and simply told him the truth: “My day was wonderful!”

Because there were no customers

in the store, I had time to get on the phone and call women I hadn’t seen recently. I rhapsodized about wonder-ful new arrivals I had for them and wanted to ship them while I still had their size. They gave me lots of busi-ness, so much that I couldn’t get it all packed and shipped.

Scott’s expression turned from sad to glad. He looked at me and simply said: “Thank you, Steve, for making my day.” I felt very good and ap-preciated both his comments and continuing support. I had no control over the weather, but I did have some control over my success.

Timeless Lessons 1. Jacobson’s had to train me

to ring a cash register, but I came with a selling attitude that generated plenty of sales to ring. Managers should define what they are looking for before they start interviewing, and then use techniques and measures to get the right man or woman.

My store manager said he decided to hire me after I waved to him from the waiting room and then talked about why I would be proud to be a sales person for Jacobson’s. He figured I was a people person who

would put my skills to good use for the company.

2. In addition to hiring the right people, management should help staff be ever more successful. Those with the right attitude usually welcome ideas for being more successful. Those with a bad attitude, unfortunately, usually don’t change. Instead, they find ways to reinforce their bad attitude. Best solution: try never to hire people with bad attitudes.

3. If you make the mistake of hiring doom and gloom staff or have the misfortune of inheriting them, try to isolate them and keep them from spreading the disease. There may even be a right place for such people; if not out of your company, then certainly a place where interaction with people has minimum importance.

4 . S u c c e s s f u l p e o p l e a re those who achieve their goals. Management needs to help staff build individual plans with goals that will be rewarded when they are achieved. Staff members are more likely to succeed if they have ownership in their plans and a say in setting their goals.

5. It is management’s responsibility to create the right environment and organization for success. There are some stores where success is in the air, and others where it is not. The key is to hire for success, talk about success, reward success, share ideas for success.

Final ThoughtWhile sunshine is nicer, we do need

some rain to fertilize our minds. In both a practical and symbolic way, small, retractable umbrellas are a necessity for retailers.

Tuck one away in your purse or man bag and pretend it contains your arsenal of ideas for “rainy day” situations. When you need that umbrella … remove, release and make your day pay off!

Steve Flaster is a retailer, adjunct professor of advertising and marketing at Michigan State University, speaker and consultant. You can reach him at srflaster@gmail.com.

NEW MEMBERS10 Michigan Retailer www.retailers.com

Looking forthe best way to reach retailersin Michigan?

Advertise in theMichigan Retailer.

Rates as low as$35 per issue.

Call 800.366.3699for more information.

Ruttkofsky Enterprises Inc., AdrianMyers Fashions Etc., AlpenaTamara Garwood for Judge, Ann ArborGus’s Eatery & Saloon, AshleyBob’s Welding & Fab, AvocaR Bar & Grill, Bay CityBoys & Girls Clubs of the Great Lakes Bay, Bay CitySawmill Saloon, Big RapidsPaul Rigda Excavating, Birch RunBridgeport Standard Service Inc., BridgeportCheboygan Brewing Company LLC, CheboyganDurand Pools & Spas, ChesaningDetroit Store Fixture Co., DetroitDJCB Inc. dba 3 Nick’s Bar & Grill, DetroitHector’s Mens Wear, DetroitCommunity Papers of Michigan, East LansingAbie Bar Ltd., Eaton RapidsEmpire Outdoors, EmpireBad Axe Pest Control Inc., FilionZ Club, FlintHutchinson Food & Drug Inc., FlintAmerican Legion Otto Miller Jr. Post #396, Garden CityComet Cuts, Grand LedgeJ and D Electronics, Grand RapidsGrand Rapids Triathlon, Grand RapidsMichigan Titanium, Grand RapidsDash Down Division, Grand Rapids

As a Grand Rapids businessman and Retailers Mutual Insurance Company board member, Jeff Joyce appreciates his up-close view of the fast growing insurer’s operations – especially the regular reviews of workers’ compensation claims.

“I have enjoyed see-ing how much careful consideration goes into screening each claim,” said Joyce, vice president and co-owner of Mieras Family Shoes, a long-time Retailers Mutual policyholder.

Joyce represents the fourth gen-eration in the family owned footwear business and has spent 30 years working in it. His work with Retailers Mutual also is rewarding, he says.

“It is rewarding to provide for the care that helps injured employees return to productive work. It’s also rewarding to help keep costs down for our member companies by mak-ing sure all claims are legitimate and handled efficiently.”

Claims CommitteeJoyce was named to the Retailers

Mutual board in 2010 and currently serves as vice chair. He also chairs the board’s Claims Committee.

The committee meets five times a year and reviews all active claims to determine w h e t h e r a claim is leg i t imate or fraudu-lent. If it is a legitimate workplace injury, the committee will authorize a settlement amount. Large claims are decided by the full board, acting on a recommen-dation from the committee.

Close attention to claimskeeps RMIC’s costs down

If the claim is suspicious, it will be investigated further and litigated if believed to be without merit.

“Board members are business men and women, the same as our policyholders, and are poli-cyholders themselves. All of this business experience helps while reviewing claims and challenging suspicious ones,” Joyce said.

“The purpose of workers’ compensation is to prop-erly pay loss wages and medical when an employee

is legitimately injured in the course of employment. Unfortunately, we do see some soft tissue injuries, and it’s our responsibility to help determine whether those injuries are the result of the normal aging process or occurred out of the workplace setting.”

Worksite VisitA claim also could be the result of

a workplace safety issue. In that case, the committee would recommend that a loss control specialist visit the worksite and make safety recommen-dations to the owner to help avoid future claims.

The committee receives assistance from an experienced claims manag-er at Sedgwick Claims Management Services, Retailers Mutual’s highly respected third-party administrator

(TPA). “The con-

tinuity from working for years with t h e s a m e experienced representa-tive helps us

deliver cost-effective claims and risk management,” Joyce said.

“Because of the circumstances and nature of the injury, some claims can take years to resolve…Sometimes, the best way to work through a questionable claim is to wait and monitor the situation. We can ask for assessments that give us an outside opinion regarding what types of employment a work-er is capable of handling and what the appropriate actions are for us to take.”

Right from its start as Retailers Fund in 1981, Retailers Mutual took the position that it wouldn’t throw policyholders’ money at a bad claim simply to make it go away.

The ongoing work of the Claims Committee helps the insurer keep its commitment.

Wipeout Cancer Foundation, Grand RapidsBecker & Scrivens Concrete Products, HillsdaleHolland Medi-Center, HollandSpartan Tire, HowellEaston Security LLC, HowellMichigan Association for Justice, LansingTurf Care Mole Man, LudingtonNorthern Michigan University Foundation, MarquetteCopper Bar, MarshallShannon’s Salon Spa, MidlandCHS Group LLC, MonroeJ & M Holdings Inc., MonroeBorley Hanel Post 3033 VFW of US, Mount PleasantJeffrey D Vanderstelt PC, MuskegonVillage Pizza Inc., NaubinwayRiver Valley Carpet, NewaygoGenoa Healthcare, OHSafe Haven Assisted Living LLC, OkemosRainbow Inn, PerrintonFood by Clint LLC, Port SanilacHot Shot’s Tavern Inc., PortlandYoga Shelter, Rochester HillsPappy’s, RodneyYMCA of Saginaw, SaginawTodd’s Bar, SaginawSt. Ignace Greenhouse & Florist, Saint IgnaceLaJoie Truck Service & Fab Inc., Sault Sainte Marie

Jeff Joyce

LOTTERY

by M. Scott Bowen, CommissionerLottery to enhance two favorites with ‘add-on’ game

The Michigan Lottery is going to make Fantasy 5 and Classic Lot-to 47 players do a double take with a new “add-on” game, EZmatch.

Starting April 15, players will

be able to add EZmatch to a Fantasy 5 or Classic Lotto 47 wager for just $1.

Five EZmatch numbers will print on the player’s ticket below the Fan-tasy 5 or Classic Lotto 47 numbers. If an EZmatch number matches a num-ber in the Fantasy 5 or Classic Lotto 47 wager, the player instantly wins the prize amount printed next to the EZmatch number.

The EZmatch instant add-on game will offer 11 tiers of prizes, so players can instantly win prizes of $2 up to $500. EZmatch prizes are in addition to the prizes that Fantasy 5 and Clas-sic Lotto 47 already offer through their respective drawings.

We expect players will respond positively to a new chance to win in-stantly on their favorite draw games and that the EZmatch add-on option will provide opportunities for in-creased sales.

$40,000 Tax-Free RaffleSales of tickets for the all-new $40,000

Tax-Free Raffle are now in full swing.

11April 2014

Since 1914, the family-owned Lynch Sales Company has delivered on our promise to help our retail clients succeed through Lynch promotional sales. I am particularly proud that many of those storeowners reward us with their repeat business, time and again.

Contact us for details and receive a special, limited edition 100th anniversary commemorative as our gift. Plus, retailers who hold a

Lynch ‘Sale of the Century’ during 2014 automatically become eligible for our Grand Prize of a trip for two to Ireland!

Serving the U.S., Canada and the U.K. Call (800) 824 - 2238 or www.LynchSales.comCopyright 2014 Lynch Brothers Licensing Corporation

“There is a reason why we have

been helping retailers succeed for 100 years!”

Judson Lynch, Co-CEO, Lynch Sales Company

The $10 tickets are available for purchase through mid-April at all Michigan Lottery retailers. Winners of the top prizes will take home $40,000 – tax free! This raffle has the best overall odds of any Michigan Lottery raffle to date: 1 in 6 tickets will win a prize.

On April 15, Tax Day, a drawing will be conducted to select the win-ning raffle numbers. There will be one $40,000 prize (net) for every 30,000 tickets sold. There will be 17 prizes of $100, 616 prizes of $50, and 1,033 priz-es of $15 for every 10,000 tickets sold.

New Cash for Life Cash For Life instant games are

extremely popular with players and have been since they debuted in 2012. The April 1 launch of the All New Cash for Life family of games in-cludes the following enhancements:

• New ticket design• The $1 ticket offers four “$400 a

week for life” top prizes and more than $15 million in total cash prizes available.

• The $2 ticket offers four “$800 a week for life” top prizes and more than $30 million in total cash prizes available.

• The $5 ticket offers three “$2,000 a week for life” top prizes and more than $34 million in total cash prizes available.

• The $10 ticket offers three “$4,000 a week for life” top prizes and more

than $38 million in total cash prizes.

New Pull TabsThese tickets go on sale April 7:• MI # 527, Hot Streak, $2• MI # 529, $1,000,000 Bonus, $5.

New InstantsThese tickets go on sale April 1:• IG # 684, Cash For Life, $1• IG # 685, Cash For Life, $2• IG # 686, Cash For Life, $5• IG # 687, Cash For Life, $10.

About 97 cents of ever y dollar spent on Lottery tickets is returned to the state in the form of contribu-tions to the state School Aid Fund, prizes to players and commissions to retailers. In fiscal year 2013, the con-tribution to schools totaled $734.3 million. Since its inception in 1972, the Lottery has contributed over $18 billion to Michigan’s public educa-tion. For additional information, please visit the Lottery’s website at www.michiganlottery.com.

‘We the People’ takes many formsContinued from page 8

If enacted by the legislature, the initiative becomes law without going to the ballot. If rejected by the leg-islature, the initiative is submitted to the people for consideration. If the legislature proposes an alterna-tive (for example, an increase in the minimum wage to $8.25 by January 1, 2017), both initiatives appear on the ballot. If voters approve both ini-tiatives, the one receiving the most votes becomes law.

With a minimum wage ballot pro-posal likely to drive up Democratic voter turnout, the Republican-con-trolled Michigan Legislature must determine its best strategy.

Should the legislature enact the ini-tiative in an effort to stymie turnout? Will lawmakers propose a smaller

minimum wage increase? Or will they take their chances on turnout and re-ject the initiative, in hopes voters will do the same?

Keeping InformedAs the elections draw near, Michi-

gan Retailers Association will alert our members on how certain propos-als will affect the retail industry, such as Personal Property Tax reform and minimum wage hikes (as you might guess, we’re less likely to take a posi-tion on non-business issues such as wolf hunting and abortion insurance).

With so many ballot measures to consider, I question whether ballot proposals are the best way to pass additional laws. I think James Madi-son might agree with me.

Cash for life® is back with a new look and over $128 million in total cash prizes. That means there are over

$13 million to be earned in retailer commissions. Last year, the Cash for Life® series of tickets accounted for

18% of all Michigan Lottery instant game sales. With four different tickets and chances to win up to $4,000

a week for life, stocking these instant tickets could help you turn a profit almost instantly.

Top prize Cash For Life® winners will receive their prize payments in annual installments over their lifetime or over 20 years, whichever is greater, unless within 60 days from the date they claim their prize, they request the Cash Option method of payment. Overall odds of winning $1 Cash For Life: 1 in 4.53. Overall odds of winning $2 Cash For Life: 1 in 4.25. Overall odds of winning $5 Cash For Life: 1 in 4.04. Overall odds of winning $10 Cash For Life: 1 in 3.99. If you bet more than you can afford to lose, you’ve got a problem. Call 1-800-270-7117 for confidential help.

NEW CASH FOR LIFE®

ON SALE APRIL 1Give Your players a chance to turn an instant

into a lifetime!