Michigan Passes Law Wiping Out Home-Based Businesses

From Larraine Stanislaw, Michigan GAP Coalition:

In 2004, the Michigan Legislature passed a law (P.A. 495) placing new requirements on hundreds of businesses, and wiped out a whole industry of home-based businesses when the law took full affect in 2006. According to state records, 1,171 businesses were eliminated at that time. Some had served the public for over 20 years. These requirements were placed late in the legislative process into a bill funded by a powerful, politically connected special interest group that saw an opportunity to eliminate smaller competitors who couldn't meet the burdensome new requirements placed on them. It was discriminatory and arbitrary in its effect, and resulted in a regulatory taking of property by preventing property from being used the way it was prior to the law's passage.

Without the state paying compensation to those who lost the use of their property, it also violated the civil rights of those affected. P.A. 495 set a dangerous precedent for all small businesses in Michigan. Placing requirements on businesses that standardize an industry and restrict free enterprise is a serious threat. Based on this action, any group of small businesses could be eliminated if targeted by larger competitors with the money and right political connections. The Mackinac Center for Public Policy published two reports documenting this law's intent and its devastating results. An attempt is now planned to address this through the judicial system since two amendments to undue some of the damage were squashed because so much money was behind 495's passage. The goal is to help the businesses affected, and prevent this from happening again by sending a message to the legislators that this type of action is unacceptable, damaging to the business community, and the state's economy. Biersdorf & Associates, (www.condemnation-law.com), specialists in condemnation law have agreed to handle the case. Because small businesses with limited resources were affected, a trust account has been set up to assist in acquiring the funds to pay legal costs associated with the case. Those affected are appealing to groups and organizations that promote free enterprise and property owners' rights for help. Michigan can't afford to lose any more businesses! Documenting how P.A. 495 affected all of the businesses, and finding adequate legal representation has been a huge task. Now the statute of limitations may eliminate the ability to file this case at the end of 2008, so funding is urgently needed. If you can help in any way, it would be greatly appreciated. Also, if you think this issue would be of interest to others, please feel free to forward this article to them. If you wish to provide financial support, contributions can be sent to: Biersdorf & Associates 33 S. 6th. Street Suite 4100 Minneapolis, MN 55402. Checks or money orders should be made out to: Biersdorf & Associates Trust Account. Please mark your donation, "Michigan GAP Coalition Case." Questions can be directed to: Larraine Stanislaw, Michigan GAP Coalition (810) 687-7678, Cell (810) 597-2262 Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Property Rights Project, Brought to you by the Independence Institute

http://www.propertyrightsproject.org/2008/03/06/michigan-passes-law-wiping-out-home-based-businesses/