LANSING, Mich. (11/13/13)--A five-bill, bipartisan anti-card-skimming legislation package initiated by the Michigan Credit Union League is nearing completion in the Michigan legislature.
Financial institutions have found that skimming devices are readily available for sale and take a minimal amount of time to install on ATMs, gas pumps and more. Within minutes, criminals can install a camera or other card reading device and PIN capturing device onto an ATM or other financial transaction device, and collect consumer personal information.
Currently, there are conflicting penalty provisions in state law that must be resolved, and jurisdictional adjustments are needed to facilitate easier prosecution, said the league (Michigan Monitor Nov. 11).
The legislation passed the House of Representatives unanimously last Thursday. The Senate received the bills on Tuesday and referred them to the Senate Judiciary Committee, which reported the package unanimously later that afternoon. The MCUL will continue work with the Senate, aiming for final passage before the holiday season.
MCUL will monitor the package as it moves into the Senate. Sen. Rick Jones (R-Grand Ledge), chair of the Senate Judiciary Committee, has indicated he will take the bills up in committee this week.
Also, league-supported legislation that would allow financial institutions to retain the primary homestead rate of taxation on residential property moved a step closer to passage last week.
The bill would allow financial institutions to pay a lower homestead tax rate for up to three years.
Senate Bill 532 passed out of the Senate Finance Committee with a unanimous bi-partisan vote. The bill will now go to the Senate floor for consideration by the full chamber. The league said it expects the legislation to be considered by the full Senate as early as next week.
In other legislative news, Michigan Gov. Rick Snyder signed two pieces of legislation last week that will require buyers of motor vehicles, recreational vehicles or titled watercraft to pay sales tax on the difference in price between price of the new vehicle and the trade-in.
The package, which includes Senate Bill 89 and House Bill 4234, amends the General Sales Tax Act (1933 PA 167) so sales tax eventually would be charged only on the difference between the price of a new or used motor vehicle, recreational vehicle, or titled watercraft and the agreed-upon value of any trade-in. The bills will be phased in over several years.
The package eliminates double taxation that took place when a vehicle, RV or titled watercraft was traded in for the purchase of a different one, said the league.