December 12, 2014

Dear NJGCA Member>:

Thank you for reading this week's NJGCA Road Warrior!

Here is what you will find in this edition:

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EXECUTIVE DIRECTOR'S MESSAGE: GREETINGS & SAL-UTATIONS! 

NJGCA FIGHTS TO CLOSE LOOPHOLES IN REWARDS PROGRAMS
DEBATE CONTINUES OVER HOW TO RAISE THE GAS TAX
INVESTIGATION INTO LOTTERY FRAUD IN NJ
SUCCESSFUL NJGCA BREAKFAST MEETINGS

As I mentioned last week, I testified in front of the Assembly Consumer Affairs Committee to support a bill that would close a loophole present in legislation that was signed into law three years ago. If you remember, we were very happy with the original bill, because for the first time in 30 years it permitted rewards to be given to our customers at the pumps, without the retailers bearing the financial burden for the rewards.  The party responsible for financing the reward program would be the oil companies, or the larger entity that designed the program and "encouraged" (forced) retailers to participate. However, a loophole in the original legislation allowed oil companies to charge retailers a "processing fee," which was not the intent. For example, recently BP rolled out a 5-cents cash back program, and retailers would have to pay 2.5 cents per gallon.  Exxon Mobil just announced a program which would cost retailers SIX CENTS a gallon!

Opponents of the effort to close this loophole are the big chain retailers and big box retailers who want to offer rewards to customers who buy things inside their stores and then have the rewards redeemed at their own pumps, at the expense of smaller retailers. The current legislation is supposed to close the loophole but our opponents have hired very powerful lobbyists to oppose us because they want to use this opportunity to reopen the legislation to permit giveaways at the pump which would be harmful to our members.
 
This week, NJGCA and our friends at the Fuel Merchants Association of New Jersey were back in Trenton to testify in support of this legislation in front of the Senate Commerce Committee. The bill was voted out of Committee, and we are now asking that the bill receive a vote in the entire Senate and entire Assembly. However, we were dismayed to hear Senator Lesniak comment that he would be in favor of allowing below cost selling, (which would be the result of permitting these giveaways) and that he is against any bans on below cost selling, because he believes this is all a matter of competition, capitalism, and the free market.  Comments like that simply reinforce how important it is for us to win this battle and for us to continue to fight every day for our small retailers.
 
To hear my testimony with Eric DeGesero at the Senate Commerce Committee meeting, please CLICK HERE!
 
Now, moving on to another issue which I discussed in a previous message... playing by the rules as an operator of the NJ Lottery.  On Monday, the Asbury Park Press published an extensive report on "serial lottery winners."  The opening lines read, "Some people seem to have all the luck. And in New Jersey, some of the luckiest people are retailers who sell lottery tickets. Or so it appears from the New Jersey Lottery's list of winners. An Asbury Park Press review of Lottery claims submitted since 2009 found that half of the 20 most frequent prizewinners are either licensed lottery retailers or family members of store operators."  As convenience store owners and operators, and licensed lottery retailers, you all MUST know that you have targets on your backs. For too long, dishonest lottery operators have taken advantage of the system, and now it is starting to catch up to everyone. The NJ Lottery is coming down hard on these fraudulent practices now, because they failed to do so in the past, and now they have some serious catching up to do. The Asbury Park Press article also notes, "the NJ Lottery says it is investigating some of the people on the Press' list to see if they're actually cashing in other player's winning tickets, a common but unlawful practice across the country called ticket discounting. When this happens, the real winners may be avoiding having to pay child support judgments, taxes, or other government debts that are required to be taken out of their winnings. The discounter takes a cut of the prize, usually 20% or more."  We warned you about this in the October 10 Road Warrior! To read that message, please CLICK HERE.  To read the entire Asbury Park Press article, please CLICK HERE.
 
Of course, I also have to discuss the serious nature of the debate about how to replenish the NJ Transportation Trust Fund. Eric and I continue to meet with legislators around the State, and I recently came across a news article that seemed to steal the thoughts right out of my head. Again, in my December 4 Road Warrior I discussed how it seems that the decision about how to raise revenue in the State will end up being a purely political one, instead of one that focuses on what the best policy is. In this Real Clear Politics article, the author states in no uncertain terms, "for Christie to avoid a ruinous fate in the 2016 Republican presidential primary, he needs to increase revenue while also plausibly denying that he “raised taxes” -- a charge that his GOP opponents would no doubt eagerly trumpet against him." Furthermore,  "Democratic Senate President Steve Sweeney is widely expected to run for Governor in 2017 and figures to be hesitant about attaching his name to a gas tax increase that is opposed by two-thirds of New Jersey voters. And thus, it is in both major players’ interest to find a way that allows them to duck the charge of being tax raisers."
 
The author even mentions, "one potential compromise would be to extend the New Jersey sales tax to cover gasoline purchases (as is already done in many other states) and then characterizing the resulting boost in revenue as a “tax fairness” or “tax parity” measure. The Christie administration did something similar last year in raising the rate by which e-cigarettes are taxed." (which, I hope you recall, NJGCA was successful in defeating). However, unfortunately, it seems that there will be no avoiding an increase in the gas tax, and if political ambitions prevail over smart public policy decisions, NJGCA and gasoline retailers across the state could be on the losing end of this deal. Rest assured that we continue to fight for you every single day, and we will let you know when the time comes for YOU to get involved as well. For now, please click HERE for a recent interview I did with NJ 101.5 on this very topic!
 
Finally, I just want to say that I am thrilled with how successful our final two NJGCA Breakfast Meetings of the year were, this week. We had a great crowd, both at Medford, and Lakewood, and we had very productive and lively discussions. It is great to see my members getting out and getting involved and being active in the organization. Your participation and feedback are what help us do our jobs and serve you to the best of our abilities.  Please look out for more info about the 2015 Diner Tours coming out in the January On The Road magazine.  Check out some photos from this week!

A great group at the Medport Diner in Medford on 12/9.


Congrats to Barry and Kelli McFadden of Metro Service Center for winning the $50!

Another great group at the Cross River Mill Diner in Lakewood on 12/10.


Congratulations to Richie Dodd of Rumson Exxon for winning the $50 Raffle, and THANK YOU Richie, for donating the $50 back to the organization!!

 
That's all for now!  Thanks for reading -- See you next week!

Regards,
Sal Risalvato
Executive Director

TRAINING CLASSES!!
-ALL CLASSES WILL BE HELD AT NJGCA HEADQUARTERS-
66 Morris Avenue - Springfield, NJ 07081 (Union County)

NJGCA is offering the Emission Repair Technician RE-CERTIFICATION class in December.

FOR REGISTRATION INFO FOR THE EMISSION REPAIR TECHNICIAN RE-CERTIFICATION, PLEASE CLICK HERE

FUTURE CLASSES WILL BE ADDED UPON REQUEST AND ACCORDING TO DEMAND. CONTACT DEBBIE at 973-376-0066 or DEBBIE@NJGCA.ORG TO LET HER KNOW YOU ARE INTERESTED IN TAKING A SPECIFIC CLASS.  THIS WILL ALLOW US TO GAUGE YOUR NEEDS AND KEEP TRACK OF THOSE WISHING TO PARTICIPATE!!

CLASSIFIEDS! -- FOR SALE & HELP WANTED ADS 

Do you have a business for sale?  Are you looking for a new location or opportunity?

• NJGCA regularly assists members looking to sell their business by getting the word out. Since everyone reading this message is involved in the small business gasoline retail, convenience store, and automotive repair trades, it is an ideal medium to connect with interested buyers and prospects!

NJGCA also helps members sell equipment by placing ads in the Road Warrior!

• If you'd like to list equipment for sale, or have an open position you'd like to make other industry professionals aware of, please contact NJGCA at 973-376-0066 and let us help you get the word out! 

NEWS AROUND THE STATE: THE NEWS YOU SHOULD KNOW

12/11/2014:
Ford Wants “Robust” Review of Fuel Economy Rules
With gas prices plunging to a national average of barely $2.60 a gallon, there’s been an equally sharp shift in the US new car market, with dealers struggling to keep up with demand for pick-ups, SUVs and muscle cars. Small cars, battery-electric vehicles and other high-mileage models have been piling up on showroom lots, however, and that’s worrying auto-makers who fear that the shift will make it difficult to meet the tough new Corporate Average Fuel Economy standard set to take effect in 2025. And Ford Motor Co., for one, may seek to have the CAFE mandate rolled back or revised.  While insisting that the company is “dedicated to meeting” the 54.5 mile per gallon target, Ford also said they are looking forward to 2017 when the feasibility of the standard will come up during a meeting between industry officials and federal regulators.
 
 
12/10/2014:
A Look Back at Tobacco Legislation in 2014
This year, very few tobacco bills were enacted into law which would negatively impact tobacco retailers. In fact, this is the 4^th consecutive year when only a few states enacted higher taxes on cigarettes and other tobacco products (OTP).  The same is true for other proposed state-level tobacco restrictions including flavor bans and raising the legal age to purchase tobacco products. In 2014, 22 state legislatures considered legislation to increase cigarette taxes. Only Vermont has enacted a cigarette tax increase (13 cents-per-pack). While Ohio still has a bill pending to raise the OTP tax rate, NJ was one of 11 states that did not enact a proposed tax increase this year on other tobacco products. An increasing number of state legislatures also considered bills to enact a tax on e-cigs and e-vapor products. A bill in North Carolina was enacted into law that assesses a 5-cent per milliliter tax on liquid nicotine. With e-cig/e-vapor bills still pending in Michigan, NY and Ohio, 12 other state legislatures, including NJ, did not pass a bill assessing a tax on e-cigs or e-vapor products. The only other state that previously enacted a tax on e-cigs and e-vapor liquids is Minnesota, which assesses a 95% OTP tax rate on e-cigs and e-vapor products. Legislatures in Hawaii, Maryland, and NJ considered, but did not pass, bills that would have prohibited the sale of flavored tobacco products. A bill still remains pending in the NY to ban the sale of flavored tobacco products. Nine states had bills introduced to raise the legal age to purchase tobacco. Bills to raise the age to 21 failed to pass in 7 states, including NJ. Bills to increase the legal age remain pending in NY and Massachusetts.
 

12/10/2014:
Nissan 'Quite Optimistic' About Electric Cars, Holding Off On Hydrogen
In the auto industry, there's a growing divide among carmakers on the most viable form of electrified vehicle. Some support battery-electric cars, while others believe that hydrogen fuel-cell cars are the way to go. Toyota has made fuel cells its zero-emission technology of choice; Honda and Hyundai will also offer hydrogen cars, though those two companies are hedging their bets and will also introduce new battery-powered models. But as the maker of the Leaf, the world's bestselling electric car, Nissan is on the opposite side of the debate. It is "quite optimistic" about their future, according to one executive. The carmaker's point of view was offered recently by vice chairman Toshiyuki Shiga, who said that Nissan will continue to focus on electric cars, and won't "rush" into developing a fuel-cell vehicle. Worldwide electric-car sales are still just a drop in the bucket compared to those of internal-combustion cars. But Nissan is "quite optimistic" about the continued growth of the segment. In contrast, the company views fuel cells as viable only in the very long term. The difficulty of building a comprehensive hydrogen fueling infrastructure makes battery-electric cars the better choice.

MEMBER BENEFIT PARTNER MESSAGE BOARD:

TMP Energy Solutions
Another Way to Save on Your Energy Bills

We have had a number of NJGCA members successfully reduce their rate per kWh signing up through our energy saving program. We know it's difficult to collect 12 months worth of previous electric bills to get an "accurate" analysis when comparing a variable rate to a fixed rate, but we now have another option available. 

This new solution is a power purchase option; the other program is still in full force and has saved members thousands of dollars. If you sign up for the power purchase option, you will be grouped with other NJGCA members until the minimum KW demand is acquired. By pooling the member's usage together, you will be able to take advantage, as large energy users do, and receive a lower kWh rate.

Each member will receive their own contract. Each member is responsible to sign and return the agreement the day it is received in order to secure the price for their group.

Please do your due diligence, so when you receive the proposal and the agreement you will be able to make an intelligent decision.

If by chance, you still want us to assess you bills, to give you a price to compare, we will require12 months of your most recent utility bills.

There are no bills required, but we would still like to have one bill per meter on file to check account #'s, meter #'s  service addresses and other pertinent information incase there is a problem.

The term of the agreement is for 12 months. During this term period, you will have price protection against any energy price increases along with a low fixed kWh rate.

If you are interested in becoming part of this power purchase option, please contact Greg Cannon at the NJGCA.

Remember when you sign up your energy through the NJGCA Energy Program, TMP makes a considerable donation to the NJGCA Scholarship Fund through their proceeds. This has no affect on your rate, and costs you nothing out of pocket.

We hope to help hundreds of NJGCA members reduce their utility costs by participating in this and our other cost reduction programs.  Our purpose, in the endeavor, is to help NJGCA members lower their energy costs while supporting the NJGCA Scholarship Fund. 

Contact GREG CANNON at 973-376-0066 or email Greg at greg@njgca.org. Mention that you are interested in saving money on your energy bills. NJGCA & TMP Energy Solutions will handle all the rest.