March 10, 2016

Dear NJGCA Member:

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

Here is what you will find in this edition:

NJGCA'S NEW "BUSINESS OPPORTUNITIES" EMAIL WILL CONNECT INDUSTRY BUYERS AND SELLERS

TRENTON PROPOSES DOULBING THE TAX ON CIGARS
SENATE VOTE ON PAID SICK LEAVE -- EMAIL YOUR SENATOR TODAY!
PLUG-IN CAR DISPLAY AT RIDER UNIVERSITY IN LAWRENCEVILLE 3/19

I'm going to start this week with an important announcement about a new service for members that NJGCA has been working on, and then share updates from Trenton this week, and an announcement about an event next weekend that I think you should be aware of.

Over the years many members have called our office saying, "I want to sell my business, or I own a property and I want to lease out the business. Can you help?" Sometimes, we find out later that a current member has purchased the location and becomes the new owner, without any help from NJGCA. Imagine how much could be saved on real estate agency commissions if an NJGCA publication was able to connect buyers and sellers! We are in no way saying that we can guarantee results or replace a realtor, but we think this is a very effective method of reaching your target audience and potentially saving thousands of dollars!! Here is what we have put together for our members:

On the 1st and 15th of every month (starting on March 15th), we will send an email to our members specially dedicated to listings of any businesses/properties for sale. We will also have space on our website and in the OTR for these "Business Opportunities." The emails will be sent twice a month because we're very conscious of not overloading our members with daily communications. We want you to know that when we send an email, it is important! Since you will be a focused market, and the listings will always be on the NJGCA website, there is no reason to send these “Business Opportunities” emails more often.

In the near future, NJGCA plans to introduce another type of periodic email which will feature the promotions and specials that MBPs are offering exclusively to NJGCA members!! This too will be on a limited schedule in order not to over-communicate. Be on the look out for all of the new ways that NJGCA is serving and strengthening our members!

Now, moving on to the action in Trenton. On Monday, the Assembly Health Committee passed a bill to dramatically increase the taxes on non-cigarette tobacco products. Right now, most of these products are taxed at a rate of 30% of the wholesale cost. Under the new language of the bill that system would get a whole lot more complicated. The idea behind the bill, as explained by the anti-tobacco advocates, is that all tobacco products should have the same tax burden that cigarettes do. This is of course foolish as no one would suggest that a single cigar is anywhere near as bad for a person’s health as an entire pack of cigarettes. Let’s break down how the taxes would work for these products:

Every retailer of these products will also have to get a license to continue to sell them, with a fee of $50 per year.

One of the most damaging aspects of this bill is that it also includes a “floor tax”. This means that if it were to become law, you would have to tally up all the tobacco products already in your inventory and then write a check to the government for all the new taxes owed. This can quickly add up to thousands and tens of thousands of dollars, all at once, all on the hope that you will get the money back if customers continue to buy these products at this increased tax rate.

The main issue that we focused on in our testimony was that this tax will not reduce the use of these products, it will only ensure that customers purchase them somewhere else. For example, Pennsylvania has no state tax on any of these products, their competitive advantage will only significantly increase. Most of these products, especially cigars, can already be purchased online at a cheaper rate than what we currently must suffer with in New Jersey; this bill will only make that problem worse.

To listen to the testimony that I gave, joined by your fellow members Ed Kashouty & Roger Verma (who also owns convenience stores in Pennsylvania and was able to further highlight the point I made above), please click HERE. I have also included a picture from the hearing at the end of this message.

While the bill did pass the Health Committee, it still has a long way to go. It must pass three more committees (including the Budget and Appropriations committees whose members will have a different mindset than the Health committee does). Then majorities in both houses would have to pass it, and the Governor would have to sign it. Given Gov. Christie’s long history of opposing all forms of tax increases, our odds are good of stopping this plan. (Though he will be leaving office in less than 2 years so we can’t keep relying on him as an insurance policy).

Also, to acknowledge a small, small victory -- not included in this bill was any attempt to increase taxes on e-cigarettes or vaping devices. After our victory on this issue in 2014 (when a 75% tax was proposed) it seems legislators are a bit gun-shy about going after these products. Currently, only 4 states have a tax on vaping devices or vaping fluid. You have a higher profit margin on these products, so it is important not to lose sales of these products to the internet or other states.

In regards to the other big tobacco issue we are facing, the legislation to raise the age to purchase tobacco to 21 passed in the Senate Budget Committee this week. That bill, too, has a long way to go before it becomes the law of the land, but it is our intention to fight it every step of the way. In the Committee hearing, Senator Sarlo and Senator Van Drew (two democrats) both expressed skepticism about the bill, before ultimately voting yes. The bill has not yet been scheduled for a vote in the entire Senate, and we will keep you updated about what you can do to help.

What you CAN do to help right now, is send a letter to your state Senator about the mandatory paid sick leave proposal that is scheduled for a vote again in Trenton on Monday. As always, we've made it as easy as possible for you to share our message and encourage your legislator to vote NO. Simply click HERE for the pre-written letter that NJGCA has created. With any questions or concerns, email eric@njgca.org or call 732-256-9646 and ask for Eric! YOU are critical to stopping this legislation.

My final announcement is in regards to the Living Local Expo which will be coming to Middlesex County (the Rider University gymnasium in Lawrenceville, NJ) on March 19th. One particular display of interest will be highlighting plug-in cars. In recent years, there have been a number of times that I have brought this subject up -- It's not going away, especially if we get to a point where gasoline prices do increase. This week, there's been a healthy rise in the price of crude oil, and some have already seen a rise in gas prices. Nobody thinks it will last, but higher petroleum prices ultimately lead to more interest in alternate fuel vehicles. I am going to try to attend this myself. You can click HERE for more information if you have any interest. If you're going, please contact me and let me know. If you do go, take some pictures and send them to me!

Testimony at the Assembly Health Committee, joined by NJGCA members Ed Kashouty (left) and Roger Verma (center)

FUTURE CLASSES WILL BE ADDED UPON REQUEST AND ACCORDING TO DEMAND. CONTACT DEBBIE at 732-256-9646 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!!

NJGCA MEMBER BENEFIT PARTNER GILL ENERGY LOOKING TO HIRE FOR (3) DIFFERENT POSITIONS!

For more information about these positions, and to submit a resume for consideration, please contact: ravigill@gillenergy.com.

3/8/2016:
Spring Turnaround Begins to Send Gas Prices Higher
Gas prices made the largest one-week increase of 2016 vs. the prior week, as the national average rose six cents per gallon. The current average price for regular gasoline is $1.81 per gallon, as of March 7, and the price is likely to keep rising due to spring turnaround activity and supply reductions in select regional markets, according to the latest AAA Fuel Gauge Report. Drivers are now paying six cents more per gallon compared to one month ago, but significant yearly discounts remain, with pump prices down an average of 65 cents on the year. Refineries typically perform scheduled maintenance during the first two quarters of the year to prepare for the busy summer driving season. The 2016 spring turnaround has seen lower-than-expected prices, prompting some refineries to adjust their maintenance schedules and/or cut production in response to abundant supplies, AAA said. Refineries have also reportedly begun reducing production to prepare for the switch to summer-blend gasoline.

03/04/2016:
Philly mayor calls for soda tax in first budget address to City Council
Philadelphia Mayor Jim Kenney unveiled his first budget last week, and is asking for a soda tax to help fund initiatives like universal pre-K, rehabbed recreation centers and better equipped police and fire departments. Kenney told the city council Thursday his 3-cents-per-ounce tax on sugary beverages would provide $400 million to be split among several initiatives, including pre-K. "Forty cents for this soda. So this is 12 ounces, and he wants 3 cents per ounce for this can of soda, so that's an extra 36 cents," said Kevin Simmons of North Philadelphia. "That's 76 cents for this can of soda, and I just don't agree with that." "This neighborhood has a lot of food stamps," said Noealis Perez, Right Choice Food Market. "Of course it's going to be bad business here." Store owners citywide worry the proposal drives customers away. "They'll go elsewhere. They'll go to Cherry Hill, they'll go to the suburbs," said Shel Klein, Kelin's Supermarket. "They're not going to go spend $2 extra for a 2 liter soda or another $4 for a 12-pack soda."

03/03/2016:
4 facts about N.J's newest compressed natural gas station
Just off exit 18 on I-295 there's a truck stop, a McDonald's and, like most major intersections in Southern New Jersey, a Wawa. The convenience store chain has become the go-to for snacks, coffee and to fill up the gas tank and the Paulsboro location is one where thousands stop each day. That's one reason it was chosen to be the testing ground for Wawa's newest venture. On Thursday morning the Paulsboro Wawa opened its first compressed natural gas fueling station, giving drivers an alternative to traditional liquid fuels such as unleaded gasoline and diesel. The ribbon-cutting event, attended by dozens of representatives from Wawa, South Jersey Gas -- which is partnering with the convenience store chain in the venture -- and local representatives. Click above for four facts about CNG and the state's newest fueling station.

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 require 12 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 732-256-9646 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.

POLITICAL PARTICIPATON: THE NJGCA PAC

DEFENDING OUR MEMBERS.
PROTECTING YOUR INTERESTS.
ANSWER THE CALL & CONTRIBUTE TODAY!!

Promoting our agenda in Trenton is of utmost importance to NJGCA and our members.

However, in order to truly affect the debate, we must ensure our friends in the Legislature are re-elected. It is for this reason that your Association has established the NJGCA PAC.

For too long, the weight of funding our Political Action Committee, the arm of the Association responsible for political donations, has rested upon a few. This is not only unfair to those few members who have shouldered this burden, but means we are not utilizing our full strength to affect the debate in Trenton.

To truly understand the importance of supporting our allies, consider our successes in Trenton:

We defeated BELOW COST SELLING
We made history in getting FIRST RIGHT OF REFUSAL signed into law!
We have built large support for RIGHT TO REPAIR and got it passed out of the Assembly
We defended your small business against the false accusations of Attorney General Anne Milgram
We gained wide support to move New Jersey to an all PIF Inspection System and close the CIF lanes
...and MUCH MORE!!

In each instance, we achieved these goals with the help of our friends in the Legislature!

If every member contributes just $100.00 we will be able to provide the help necessary to ensure victory for our allies.

PLEASE SEND YOUR CONTRIBUTIONS TO:
NJGCA PAC
4900 Route 33 West, Suite 100
Wall Township, NJ 07753
Please make your donation payable to NJGCA PAC

I understand that times are tough for all NJGCA members, but this is just as important as any battle we have fought in the past.

We have made great progress in Trenton. I hope that you will answer the call.

*NEW*Energy Information Agency Weekly Retail Gasoline Prices

Each week, the Energy Information Administration publishes a list of average gasoline prices for the previous three weeks. NJGCA will begin including this list with the Weekly Road Warrior. Remember, these prices are for reflective of self-serve everywhere except NJ.