Gov.

Rick Snyder signs pharmacy, consumer protection, local

government bills
Also vetoes forestry licensing legislation

Wednesday, July 2, 2014

LANSING, Mich. Gov. Rick Snyder today signed legislation that updates pharmacy safety
standards and strengthens oversight.

The bills are a result of a 2012 fungal meningitis outbreak from contaminated steroid injections
distributed by the New England Compounding Center in Massachusetts. More than 260 Michigan
patients were affected by the outbreak including 22 deaths. The compounding center was only
licensed as a compounding facility but acted as a drug manufacturer which contributed to the
contamination of the injections.

These bills will help establish additional safeguards between patients and pharmacists helping
ensure Michiganders remain safe and healthy, Snyder said. Consumers need and deserve to have
confidence in any product they receive, especially medical ones. These changes put patient safety
first and are designed to help prevent future tragedies.

Senate Bill 704, sponsored by state Sen. Joe Hune, provides safeguards for Michigan patients and
pharmacy customers. The bill ensures that pharmacies are operating under their scope of service
and requires each pharmacy to have a licensed pharmacist-in-charge who is responsible for
ensuring the facility follows state laws and regulations. It also requires compounding pharmacies to
maintain accurate records for all compounded drug sales including the name of the person who
prepared and approved the compound. Pharmacies, manufacturers and wholesalers engaged in
compounding must submit to at least one state inspection every two years.
SB 904, also sponsored by Hune, establishes felony and penalty provisions for violations of SB 704.
Violations that cause personal injury, serious impairment of a bodily function or death can result in
four to 15 years imprisonment.
We owe it to the hundreds of Michigan victims of the NECC meningitis tragedy to ensure a disaster
of this magnitude does not strike twice, said Attorney General Bill Schuette. This legislation signed
by Governor Snyder today will hold every compounding pharmacy responsible for the drugs they
distribute and ensure pharmacists always put patient safety first.

The bills are now Public Acts 280 and 279 of 2014, respectively.

The governor signed 11 other bills:
SB 153, sponsored by state Sen. Morris Hood, allows the Wayne County clerk to designate a fellow
Wayne County employee to assist in the solemnization of county marriages. Previously, only a
county with a population of more than 2 million was able to designate an additional employee. The
bill lowers the population requirement to 1.5 million to assist with high marriage demands. It is now
PA 278.
SB 327, sponsored by state Sen. David Robertson, requires the Department of Treasury and outside
auditors to follow taxpayer bill of rights provisions within the Revenue Act. The bill also prohibits
Treasury from using collection goals in unclaimed property audits and creates standards for the
courteous treatment of taxpayers. It is now PA 277.
SB 535, sponsored by state Sen. John Proos, helps to prevent illegal production of
methamphetamine. The bill establishes the Methamphetamine Abuse Reporting Act and calls for the
creation of a record within the current National Precursor Log Exchange (NPLEx) consisting of
methamphetamine-related offenses. The record must be kept up to date with offenders background
and conviction information. Individuals on the record will be stopped from purchasing
pseudoephedrine as it is a common element used in methamphetamine production. It is now PA
276.
SB 756, also sponsored by Proos, generates a stop-sale alert system in accordance with SB 535. If
an individual with previous methamphetamine-related convictions attempts to purchase ephedrine or
pseudoephedrine the sales clerk will be notified that the person is prohibited from making the
purchase. If the clerk completes the sale it would result in a violation of quantity limits for the sale of
ephedrine or pseudoephedrine. It is now PA 275. Both bills are part of a packagesigned earlier by
the governor.
SB 536, sponsored by Proos, allows local units of government to exempt nonprofit organizations
whose primary purpose is to foster economic development of property from property taxes for up to
seven years. A resolution detailing the agreement must be drafted and kept on record to grant the
exemption. It is now PA 274.
SB 611, sponsored by state Sen. Mike Kowall, allows local convention and tourism bureaus to
recover reasonable attorney fees and court costs that are incurred when collecting delinquent
assessments. It is now PA 273.
SB 678, sponsored by state Sen. Roger Kahn, provides a permanent funding source for the
Michigan State Capitol Historic Site Fund. The bill uses $3 million annually from tobacco product
taxes beginning in 2014-2015 and will adjust with the rate of inflation. It is now PA 272.
SB 715, sponsored by state Sen. Tom Casperson, prohibits the issuance of certificates of insurance
that contain false or misleading information related to a change in coverage. Violations can result in
the Michigan Department of Insurance and Financial Services issuing a cease and desist order and
requesting payment of a fine. It is now PA 271.
SB 846, sponsored by state Sen. Dave Hildenbrand, allows townships and villages to obtain on-
premises liquor licenses for use in redevelopment areas. The applicant is required to secure the
license from the county where the business will be located rather than their local unit of government.
It is now PA 270.
SB 853, sponsored by state Sen. Rick Jones, prevents the sale of contact lenses and eye glasses
without a valid prescription from a licensed prescriber. The bill also prohibits kiosks that perform
automated eye exams and then issue prescriptions bringing state law in line with federal regulation.
It is now PA 269.
SB 900, sponsored by state Sen. Jack Brandenburg, allows the workers compensation insurance
system to grant certain reimbursements after the deadline has passed. The bill allows
reimbursement for certain benefits paid prior to Jan. 1, 2012, and allows the director to accept
applications for reimbursement beyond a previously established one-year deadline. It is now PA 268.
The governor also vetoed four bills:
SBs 481 and 484 sponsored by state Sen. Mark Jansen and House Bills 4379 and 4380, sponsored
by state Rep. Hugh Crawford, would have dissolved the state foresters registry. This was a
recommendation from the Office of Regulatory Reform (ORR). While the Governor agreed with ORR
in the need for reform of the registry, he disagreed with its total elimination.
Michigan has over 4 million acres of public forest land and professional foresters are an important
part of our states forest economy. Their expertise help guide decisions regarding harvest, proper
management and pest control, Snyder said. I encourage the Legislature to resubmit the bills after
working with the Department of Natural Resources to develop a system that modernizes and
elevates Michigans regulatory system for professional forestry.
Snyders veto letter can be downloaded here.
For more information, visit legislature.michigan.gov.
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