August 31, 2011
 

HURRICANE IRENE AND THE AFTERMATH
 

Although messages following the storm were planned and written as early as Sunday, our ability to get them sent to NJGCA members was hampered because the company that hosts our email domain in Red Bank was knocked out in the storm.  NJGCA had zero email capabilities until late yesterday.  Thankfully our building was not flooded or damaged even though the surrounding neighborhood was completely under water.

Many gasoline stations around the state are still out of service due to power outages, flooding, or they are out of product because delivery trucks can’t get thru.  If you are one of those locations still having difficulties getting power restored, or deliveries made, please contact NJGCA for assistance.

It is a huge coincidence that NJGCA participated in a meeting two weeks ago with officials from the NJ State Police and the NJ Department of Homeland Security as well as our counterparts in other sectors of the petroleum industry to begin creation of a strategic plan to effectuate “Hurricane Readiness”.  With some due diligence and help from everyone in the industry a plan could be in place for next year’s hurricane season.  More on this will be discussed in Tomorrow’s weekly Road Warrior email.

For those who experienced damages and are still unable to conduct business, NJGCA has just learned that Governor Christie and Lt. Governor Guadagno have released information on a number of business assistance services for those affected by this weekend’s hurricane. 

Any business owner who is in need of assistance can get the help they need through the New Jersey’s Business Action Center (BAC).  You may contact the BAC by calling 1-866-534-7789 or gain access online at www.nj.gov/njbusiness

The state will offer a number of services to small business owners, as well as workers who may be temporarily unable to perform their job responsibilities, including:

• Financial support-Access to lines of credit of up to $500,000 for businesses that need access to cash to improve their damaged property while awaiting insurance proceeds

• Technical assistance for impacted businesses

• Assistance for businesses seeking help from local utilities to restore electric, phone, gas and water services.

• Business Resource Centers at any of the 17 local One-Stop Career Centers across the state as temporary hubs for businesses to access telephone and internet services

• Advocate with insurance carriers to file and expedite claims.

You can click HERE to read the office Press Release on all these services on the Governor’s website or call NJGCA Headquarters at 973-376-0066 for any additional assistance.

The Governor’s Office has also established a website where you can find more information on best practices in the aftermath of Hurricane Irene.  You can view this site by visiting www.ready.nj.gov

Last week Governor Christie declared a State of Emergency in anticipation of Hurricane Irene hitting New Jersey.  The State of Emergency Declaration triggered the price gouging law (N.J.S.A. 56:8-109).

The legislature passed this law in response to happenings around the state after Hurricane Katrina in 2005.  This law makes it an unlawful practice to sell merchandise at what constitutes an excessive price increase during the State of Emergency or within 30 days of the termination of the State of Emergency.

The New Jersey Statute is as follows:

56:8-107 Findings, declarations relative to excessive price increases at certain times.

1.The Legislature finds and declares that during emergencies and major disasters, including, but not limited to, earthquakes, fires, floods or civil disturbances, some merchants have taken unfair advantage of consumers by greatly increasing prices for certain merchandise. While the pricing of merchandise is generally best left to the marketplace under ordinary conditions, when a declared state of emergency results in abnormal disruptions of the market, the public interest requires that excessive and unjustified price increases in the sale of certain merchandise be prohibited. It is the intention of the Legislature to prohibit excessive and unjustified price increases in the sale of certain merchandise during declared states of emergency in New Jersey. L.2001,c.297,s.1.

56:8-108 Definitions relative to excessive price increases at certain times.

2.As used in this act: "Excessive price increase" means a price that is excessive as compared to the price at which the consumer good or service was sold or offered for sale by the seller in the usual course of business immediately prior to the state of emergency. A price shall be deemed excessive if:

(1)The price exceeds by more than 10 percent the price at which the good or service was sold or offered for sale by the seller in the usual course of business immediately prior to the state of emergency, unless the price charged by the seller is attributable to additional costs imposed by the seller's supplier or other costs of providing the good or service during the state of emergency;

(2)In those situations where the increase in price is attributable to additional costs imposed by the seller's supplier or additional costs of providing the good or service during the state of emergency, the price represents an increase of more than 10 percent in the amount of markup from cost, compared to the markup customarily applied by the seller in the usual course of business immediately prior to the state of emergency.

"State of emergency" means a natural or man-made disaster or emergency for which a state of emergency has been declared by the President of the United States or the Governor, or for which a state of emergency has been declared by a municipal emergency management coordinator. L.2001,c.297,s.2.

56:8-109 Unlawful practice to sell merchandise at excessive price during emergency.

3.It shall be an unlawful practice for any person to sell or offer to sell during a state of emergency or within 30 days of the termination of a state of emergency, in the area for which the state of emergency has been declared, any merchandise which is consumed or used as a direct result of an emergency or which is consumed or used to preserve, protect, or sustain the life, health, safety or comfort of persons or their property for a price that constitutes an excessive price increase.

A violation of the law is punishable by a fine of up to $10,000 for the first offense and $20,000 for the second and subsequent offenses. Each individual sale of merchandise is considered a separate and distinct event.

Yes the price of gas has increased in the past 2 weeks mostly as the marketplace anticipated the oncoming storm.  The NJ law permits you to pass along price increases but limits increasing your margin more than 10%.

Market conditions may cause overnight price spikes that are wide and varied.  Please remember that New Jersey law, N.J.S.A. 56:6-2(a), prohibits changing the retail price of motor fuel more than once in a 24 hour period. A violation of this provision is punishable by a fine of up to $1,500 for the first offense and up to $3,000 for the second and subsequent offenses.

Information that you share will be appreciated in order for NJGCA to participate in future planning of the “Hurricane Readiness” Plan that will be worked on by the NJ Department of Homeland Security.  Please report your experiences to us.

For more information visit us at www.njgca.org or call NJGCA Headquarters at 973-376-0066.