$15 MINIMUM WAGE ... VICTORY
WAGE THEFT ... VICTORY
PRICE GOUGING ... VICTORY
LOTTERY ... SETBACK
TAX CHANGES IN THE NEW YEAR
MERRY CHRISTMAS AND HAPPY HANUKKAH TO ALL

 
Monday was the last day of the year for the Legislature to meet in Trenton, and they certainly had a full plate to handle before heading out for the holidays. Of the dozens of bills being considered, NJGCA saw three victories and one setback.
 
I mentioned this last week, but now its official, there will be no attempt to amend the state constitution to raise the minimum wage (again). Our coalition, helped by infighting among supporter legislators, has been successful in blocking the $15 an hour minimum wage amendment from a vote in both houses.
 
This is a huge win, but it is only one battle, the war over this issue will continue. Supporters say that instead they will look to increase the wage through a traditional change in state law. That is a much better outcome for everyone because it allows greater flexibility to change the law than a constitutional amendment would provide. I expect this issue will fade from view in 2017, but be prepared for a huge fight in the first few months of 2018, when there will be a new Governor (all the Democratic candidates so far have said they support a $15 minimum wage). Assembly Speaker Prieto (D-Hudson) also said that in 2017 he will redouble his efforts on getting mandatory paid sick leave passed.
 
The 2^nd victory we scored this week was our effort to block the wage theft legislation we discussed last week. It was rushed to a vote after passing committee, but ultimately the current bill could not get enough votes to pass and was pulled from the agenda, a failure that rarely happens. When dealing with issues in Trenton that affect multiple industries, I try and always make a point of acknowledging the role our coalition allies play in stopping bad legislation; but on this occasion I will crow a bit because NJGCA played a major role in keeping this legislation bottled up.
 
Advocates of the bill like to paint it as something that no one can seriously oppose because it is about cracking down on employers already breaking the law with the intent to hurt their employees. NJGCA played the major role, and has all year, in raising awareness about the tremendous downsides of this legislation for honest but misinformed employers. You can read the letter we sent the general Assembly on this bill by clicking HERE.
 
Again, this doesn’t mean the bill is dead. We will continue to work on this legislation as we believe a reasonable compromise can be made that will crack down on the truly bad actors. The compromises we have offered are reasonable, and I expect that some of the key legislators advancing this bill are open to our suggestions. The defeat of this bill on Monday should also strengthen our negotiating position.
 
The 3^rd issue that was a win for us was the unanimous passage of the bill to fix the state’s gouging laws. I mentioned this issue a few weeks ago. Under the literal language of the law right now, the state of New Jersey has been in a perpetual state of emergency for the last 6 years. That means that technically the gouging laws have been in effect this entire time, which would mean virtually every gas station, hotel, grocery store, and hardware store has been in violation of the law. We have an understanding with the Attorney General’s Office that they understand how dumb this situation is and will not prosecute violations of the law under these conditions.
 
The bill now heads to the Governor’s desk. As you know we always works closely with our friends at the Fuel Merchants Association, and together with several other industry groups we got this legislation introduced and passed through both houses of the Legislature in just a few months. We expect the Governor will sign it sometime in the next month. You can read the letter we sent the Assembly in support of this bill by clicking HERE.
 
Finally, there was one set back as well. The lottery “courier” bill we discussed last week, which we oppose because we believe it is backdoor internet lottery rather than a genuine courier service, passed the Assembly. It is on the Governor’s desk, however we have met with Governor’s Counsel on this issue to inform them of our opposition and we will be meeting with officials from the Lottery Commission in an effort to have the Governor veto this legislation. The Governor has indicated he is supportive of the concept, so we certainly have work to do. To reiterate, my main concern is that any effort to permit effective internet lottery sales will keep customers from entering your stores, which will keep them from purchasing other higher margin items like coffee and sandwiches. You can read the letter we sent the Assembly on this bill by clicking HERE.

A quick update on Urban Enterprise Zones (UEZs). If you have a business in Bridgeton, Newark, Camden, Plainfield and/or Trenton, you should already know that your status as a UEZ ends Jan 1^st, 2017. That means you will have to charge the (new) normal sales tax of 6.875% just as most of the rest of the state will. However, compromise legislation has now passed both houses and has been sent to the Governor to extend the UEZ program for two years. Gov. Christie surprised everyone when he vetoed UEZ extension in September, it remains to be seen whether the changes made by this bill will satisfy his concerns or if he is committed to letting the program die.
 
Just as I was writing this message, we received the new forms from the Division of Taxation regarding the Floor Stocks Tax on diesel that will take effect January 1, 2017. The current petroleum products gross receipts tax on diesel fuel is 4¢ a gallon, the new rate will be 19.9¢ a gallon, so you will be paying the State the remaining 15.9¢ a gallon. The process is identical to what you’ve already gone through with the gas tax increase. The inventory form is HERE. The Tax form is HERE. The worksheet for multiple tanks under the same tax ID can be found HERE. The instructions written by the Department can be found HERE.
 
Pay special attention, as the two forms that must be mailed to different addresses!
 
I want to conclude this week’s message with a sincere and heartfelt wish for a very blessed and joyous Hanukkah and a very Merry Christmas. This year both holidays coincide, and both are happy and joyful celebrations. Please make sure to enjoy time with your families no matter what you celebrate and reflect on the spirit of the season and why it is you labor so hard every single day. I extend this greeting from the entire NJGCA staff. Merry Christmas and Happy Hanukkah.

Thanks for reading -- See you all next week!

Sal Risalvato
Executive Director