HAS TRANSPORTATION TRUST FUND MONEY REALLY BEEN “RAIDED”?
REACHING THE THRESHOLD FOR THE ESTATE TAX IN NEW JERSEY
DISTRACTED DRIVING AND A BAN ON DRINKING COFFEE WHILE DRIVING
FDA DEEMING REGS ON TOBACCO/VAPING WENT INTO EFFECT ON AUGUST 8^TH US DOL POSTER REQUIREMENTS AND NOTIFICATION OF INCREASED PENALTIES

I mentioned several weeks ago that I wanted to discuss the characterization that the Transportation Trust Fund has been “raided” repeatedly. In Trenton-speak, it is very easy to criticize something by saying it “has been raided.” Of course this gives the impression that either the Governor or the Legislature diverted funds to be used elsewhere. This WAS indeed the case with the unemployment trust fund 10 years ago, and although the word “raided” has been used in reference to the Transportation Trust Fund, that is actually incorrect. In fairness, I myself have made reference to the TTF being “raided” for many years, as that is the impression I was always given. However, that is false.
 
In essence, the reason that the Transportation Trust Fund is $18 billion in debt is because since the mid ‘90s, Trenton spent more each year than it received in annual revenues. No money has ever been stolen or diverted … all of the money has always been dedicated to transportation, Trenton just spent more than they had.
 
We all know that nobody wants to raise the gas tax without a guarantee that the money will be spent on transportation. The point is, in fact, that has always been the case. It’s my opinion that the constitutional amendment that will be on the ballot in November is really not necessary, however it won’t hurt to have it there just in case.
 
Moving on, a big part of recent TTF discussions has centered around “tax fairness.”  While Governor Christie advocated for a 1¢ reduction in the State sales tax, our efforts have focused on the elimination of the estate tax in exchange for an increase in the motor fuels tax.
 
Here are two of my reasons:
 
1. The increase in the motor fuels tax will be paid by your customers (and, make no mistake, an increase IS inevitable). The estate tax is paid by you. Trading one for the other is a no brainer!
 
2. You all love your children, and I know that if you were to pass on tomorrow, you want to make sure that they inherit the nest egg that you have worked so hard to build. And although you may not feel the burden of the estate tax today, each and every one of you will be extremely affected by it in the future. Since I still may not have explained the impact of the estate tax with precision, I insist that you read THIS summary that was published last week in the Bergen Record. 
 
 
Moving on, we were caught off guard when we learned that a bill was introduced in New Jersey to “prohibit any activity unrelated to the actual operation of a motor vehicle in a manner that interferes with the safe operation of the vehicle on a public road or highway.”  The bill’s obvious aim is to reduce distracted driving.  In effect, the bill allows police officers to make a judgement call if they witness you eating a sandwich, tuning your radio, or drinking a cup of coffee (none of these activities were mentioned specifically in the legislation, and the prime sponsor of the bill, Assemblyman John Wisniewski, says that it is not his intent to ban coffee-drinking while driving, but this just goes to show how easy it is for legislation to be introduced, or even passed, with all sorts of unintended consequences which could harm you and your business).
 
Of course, it is easy to get angry about a potential ban on drinking coffee while driving – all of us drink coffee in the car, and more importantly, our customers do.  I’m pretty sure none of us want our customers to face a $400 ticket just for buying coffee in our stores and proceeding to drink it on their way to work.  Rest assured we will be working to kill this legislation!
 
Next, a quick update on federal tobacco regulations. These are just a reminder for you, because under New Jersey state law you should already be doing these things. However, the regulations have been expanded to cover not just cigarettes and tobacco products, but also vaping products and e-cigarettes so we just need you to be aware…

• Photo ID everyone under age 27
• Don’t sell any tobacco or vaping products in a vending machine
• Don’t give away free samples

On November 2, 2015, the President signed the Federal Civil Penalties Inflation Adjustment Improvements Act. This law requires all federal agencies to publish an initial “catch up” adjustments to their fine structures, and to make annual adjustments every January thereafter.

Effective August 1, 2016, employers assessed Civil Money Penalties (CMP’s) for willful or repeated violations of the Fair Labor Standards Act (FLSA) can be assessed up to $1,894 per violation. This is an increase from the old level of $1,100.  CMP’s are in addition to any back wages and liquidated damages due to the workers. The maximum penalty for violation of the federal Child Labor requirements of the FLSA will rise to a maximum of $12,080 per violation.

Thanks for reading -- See you all next week!

Sal Risalvato
Executive Director

8/11/2016:
Prieto calls for 'summit' with Christie, Sweeney to reached TTF deal
Assembly Speaker Vincent Prieto on Wednesday called for a 'summit' to resolve the ongoing stalemate over the nearly insolvent Transportation Trust Funding, saying Gov. Chris Christie and Senate President Stephen Sweeney should sit down with him and cut a deal. “This must be resolved now. Not after Labor Day. Not after Election Day. Now…” Prieto said in a statement. Sweeney has said for more than a week now that he thinks a resolution can't be reached until after the presidential election. He reiterated his remarks on Tuesday in an interview with The Record editorial board. The speaker said it is 'clear' that the only path to a resolution "is for the governor and the legislative leaders from both parties to get together inside the same room and hash this out once and for all.'"
 
8/10/2016:
Freeze on transportation projects likely to stretch into fall, Sweeney says
A statewide freeze on transportation projects is likely to stretch into the fall and past the November elections, dealing a blow to a state packed with commuters, Senate President Stephen Sweeney said Tuesday. Governor Christie ordered a shutdown of most transportation projects in July after fighting the transportation issue to a stalemate with the Democratic-controlled Legislature. Talks with Christie and Assembly Speaker Vincent Prieto over the last week have not led to any progress, Sweeney said in an interview with The Record’s editorial board. “The thing that concerns me is you’re losing millions of dollars every week now in wages, and contractors are shutting down,” Sweeney said. “This is probably going to put some contractors out of business.” Christie spokesman Brian Murray reiterated that the governor is willing to find a solution and said it was Sweeney and the Senate who “dropped the ball and created this crisis” after reneging on an earlier deal.
 
8/1/2016:
Tobacco ‘Deeming’ Regs Go Into Effect Aug. 8
Monday, Aug. 8th marked 90 days since the U.S. Food and Drug Administration (FDA) announced its final “deeming” regulations for cigars, pipe and hookah tobacco and electronic cigarettes. Aug. 8 also marked the date when the regulations officially go into effect. A press release from the FDA’s Center for Tobacco Products (CTP) outlines which provisions affecting retailers went into effect on Monday. As of that date, retailers:

• Must not sell e-cigarettes, hookah or pipe tobacco, or cigars to people under 18 years of age; also must check photo ID of everyone under age 27 who is attempting to purchase such products.
• Must not sell tobacco products covered under the rule in a vending machine (except in a facility where people under age 18 are not allowed on the premises).
• Must not give away free samples of any newly regulated tobacco products. (This provision also applies to manufacturers, importers, and distributors.