March 7, 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! 

FISCAL YEAR 2015 BUDGET AND E-CIG TAX
IMPORTANT UPDATES - REMEDIAL INVESTIGATION EXTENSION DEADLINE AND COMMUNITY RIGHT TO KNOW
UNIONIZATION OF PILOT FLYING J SITE IN NJ
EPA SET TO REVEAL TOUGH NEW SULFUR EMISSIONS RULE
RESEARCH PROJECT ON GAS STATIONS AND CRIME

Last week, Governor Christie unveiled his budget proposal for Fiscal Year 2015 (July 2014 - June 2015). While the yearly state budget often has little direct influence on your businesses, this year looks to be different in one regard. 
 
Many of you, especially those with c-stores, rely heavily on the sale of tobacco products. The last few years have seen an explosion of growth in e-cigarettes that has shaken up the tobacco industry. More and more consumers are buying e-cigs, in part because studies show that e-cigs (which vaporize, rather than burn, the tobacco) are healthier than traditional cigarettes. As a result, more and more smokers are turning to e-cigs either as a step in quitting or just for the sake of helping their lungs. 
 
Unfortunately, whenever technology changes the marketplace, the government has to step in to get their piece of the action. Many states are looking to expand their tobacco taxes to include e-cigs, and now Governor Christie wants New Jersey to join them. What's most unclear about this program right now, however, is how the tax will be applied. E-cigs are not being sold tax free as a result of some loophole; they are currently subjected to the state’s very high sales tax of 7%. 
 
The Administration has yet to release the details of how the cigarette tax would be applied. They have only said that they want to tax e-cigs at the same rate as regular cigarettes. The problem is that, despite appearances, e-cigs work very differently than regular cigarettes. Currently, cigarettes in NJ are taxed at a rate of 13.5 cents per cigarette. E-cigs work in many different ways. Some are disposable; others allow the smoker to refill them. But generally, each of the individual disposable e-cigs lasts as long, or longer, than a single pack of cigarettes. Even if e-cigs were taxed at the rate that the typical pack of cigarettes is taxed, $2.70, there would be some brands of e-cigs that would end up being cheaper than they currently are with their 7% sales tax. The government is not going to implement something that means less money in their coffers. 
 
The most worrisome proposition would be that e-cigs get taxed at the rate of other tobacco products -- 30% of the wholesale cost. This would lead to a dramatic increase in the price of e-cigs. In addition to hurting your small business, this government proposal is self defeating. The whole point, we are told, behind the high tax rates for tobacco products is that they are unhealthy. But e-cigs, like nicotine gum, are increasingly being used as a healthy alternative, or as a first step in quitting altogether. The budget proposal estimates that this tax would raise $35 million, a number which can be described as shaky at best, especially since current sales tax revenues from these products would be eliminated. 
 
Right now, support among legislators for this proposal seems uncertain. This means that we have the opportunity to stop this plan in its tracks. The best way is tell them to their faces. The Budget Committees will be touring the state in the next three weeks to allow regular citizens and small business owners the opportunity to testify. If you are affected by this new tax proposal and live in or near Montclair, Paramus, Trenton or Westhampton, we encourage you take a few minutes and head down to the committee meeting to just say a few words about why this proposal is bad for business, bad for the budget and bad for public health. The details of the meetings are included below.  If you plan to attend or would like some talking points other than what I just discussed, please email Eric@njgca.org. 
 
The Senate Budget and Appropriations Committee will hold public hearings on the Fiscal Year 2015 State Budget on the following dates:

March 13, 2014 - 11:00 AM
Paramus Council Chambers
1 Jockish Square
Paramus, New Jersey 07652

March 19, 2014 - 11:00 AM
Burlington County Institute of Technology
The Auditorium
695 Woodlane Road
Westampton, New Jersey 08060
 
Persons wishing to testify can register online (www.njleg.state.nj.us and next to "Budget Hearings," click online registration) or call the Legislative Budget and Finance Office at 609-847-3105 to register by phone. People presenting written testimony are asked to provide 20 copies on the day of the hearing.
 
The Assembly Budget Committee will hold public hearings on the Fiscal Year 2015 State Budget on the following dates:

March 12, 2014 - 9:30 AM
Montclair State University
University Hall Conference Center, 7th Floor
1 Normal Avenue
Montclair, New Jersey 07043

March 18, 2014 - 9:30 AM
State House Annex
Committee Room 11, 4th Floor
Trenton, New Jersey 08625
 
Persons wishing to testify can register online (www.njleg.state.nj.us and next to "Budget Hearings," click online registration) or call the Legislative Budget and Finance Office at 609-847-3105 to register by phone.  People presenting written testimony are asked to provide 20 copies on the day of the hearing.
 
 
Now, I have a few quick reminders and updates for your information!
 
Remedial Investigation Extension Deadline -- Due to the large of number of weather-related State closings that have occurred, the New Jersey Department of Environmental Protection will continue to accept "May 7, 2014 Remedial Investigation Complete Timeframe Extension Form" requests through the NJDEP Online portal through March 21, 2014.  If you have any questions, please call 855-MAY-2014 (855-629-2014), or contact Debbie Hill at the NJGCA Office (973-376-0066).
 
Community Right to Know for 2013 -- Deadline has been extended to April 1st. Also, the ECPRA section has been amended, and is different from previous years. Contact Debbie Hill with any questions (debbie@njgca.org or 9873-376-0066).  To complete the forms, log on to the NJDEP Online portal at www.njdeponline.com.
 
Unionization of Pilot Flying J Station -- In late February, the employees at one Pilot Flying J truck stop in NJ voted to unionize, making it the only site among the company's more than 600 locations to be represented by a union.  This is just a head's up to our members, because unions do have the ability to come into our shops, and though it's not likely right now, there's constantly an effort at the federal level to make it easier for the unions to come into our shops. 
 
EPA Set to Reveal Tough New Sulfur Emissions Rule -- Earlier this week, the EPA unveiled a new major regulation that forces oil refiners to strip out sulfur.  The rule will drastically reduce soot and smog in the US, while slightly raising the price of both gasoline and cars.  The rule will require oil refiners to install expensive new equipment to clean sulfur out of gasoline and force automakers top install new, cleaner-burning engine technology.  EPA officials estimate that the new regulation will raise the cost of gasoline by about 2/3 of a cent, per gallon, and add about $75 to the sticker price of cars. But oil refiners say that it will cost their industry $10 billion and raise gasoline costs by up to 9 cents per gallon. Again, this is just a heads up. Don't be alarmed about this development, because there is nothing that anyone can do about it. 
 
Research Project on Gas Stations and Crime -- REIMINDER: NJGCA is participating in a research project to investigate crime in our industry and how to create a safer environment. The project aims to identify how different variables (such as degree of lighting, types of security, accessibility to major roadways, nearby business establishments, and the surrounding area of the station) come together to make a station more or less vulnerable to crime. The research will be conducted by John Jay College Professor of Criminology and former Police Officer Jon Shane, and his team of research assistants. Once the project is complete, NJGCA and the industry will have better information and knowledge that can be used to reduce economic losses due to crime, reduce personal injury and harm associated with crime and violence, improve working conditions and quality of life, and enhance the relationship between gasoline station owners, employees and the police.
 
This project will require participation from stations that have been victims of crime, as well as that haven't been victimized so we can make comparisons.  For those who have been victims of crime, we are interested in violent crime (assault, robbery, homicide) and property crime (theft, and vandalism, but not shoplifting).  We are particularly interested in violent crime because we want to keep our members as safe and productive as possible. This is where we need your help! If your station or one of your employees has been involved in one of the crimes we mentioned in the last three years, please email jacy@njgca.org.  Your participation is critical to the success of this research project, and we are confident that the study will produce recommendations that will help you protect your business, your profits and your employees. Please respond today!

Thanks for reading -- See you next week!

Regards,
Sal Risalvato,
Executive Director

CLASSIFIEDS! -- FOR SALE & HELP WANTED ADS 

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

• NJGCA was recently able to lend a hand to 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 assists members in selling equipment through the placement of advetisments in 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!      

If you'd like to list your business for sale, publish a location you're selling, or are seeking a business partner for your establishment, please contact NJGCA at 973-376-0066!

NEWS AROUND THE STATE: THE NEWS YOU SHOULD KNOW

03/05/2014:
Obama 2015 Budget Repeats Proposal for Tobacco Tax Increase
This week, President Obama released his proposed fiscal-year 2015 federal budget that includes a 94 cents-per-pack increase in the federal cigarette tax rate and a proportionate 93% increase in all other tobacco tax rates. Each of these tax rates would be annually adjusted upward by an inflation index. The additional cigarette and OTP tax revenue would fund preschool education programs for four years olds in low income families. This is essentially the same proposal that the President included in his fiscal-year 2014 budget, which Congress didn't pass. To see the proposed new tax rates for cigarettes and tobacco products, please click on the above link.
 
03/04/2014:
Cumberland Farms Leaving New Jersey
Cumberland Farms recently inked a deal to sell 27 stores to Petroleum Marketing Group (PMG), essentially bringing an end to the retailer's presence in New Jersey.  The stores included in the deal with Virginia-based PMG are in New Jersey, Delaware and Pennsylvania. As a result of the sale, 176 workers will be laid off effective April 15, according to a notice filed with the state's Department of Labor. Those employees can apply for jobs with PMG.  To read more about this story, please click on the link above.
 
03/03/2014:
EPA Set to Reveal Tough New Sulfur Emissions Rule
Earlier this week, the EPA unveiled a new major regulation that forces oil refiners to strip out sulfur.  The rule will drastically reduce soot and smog in the US, while slightly raising the price of both gasoline and cars.  The rule will require oil refiners to install expensive new equipment to clean sulfur out of gasoline and force automakers top install new, cleaner-burning engine technology.  EPA officials estimate that the new regulation will raise the cost of gasoline by about 2/3 of a cent, per gallon, and add about $75 to the sticker price of cars.  But oil refiners say that it will cost their industry $10 billion and raise gasoline costs by up to 9 cents per gallon.
 
02/28/2014:
Pilot Flying J Site in New Jersey Votes to Unionize
In late February, the employees at one Pilot Flying J truck stop in NJ voted to unionize, making it the only site among the company's more than 600 locations to be represented by a union. This is just a heads up to our members, because unions do have the ability to come into our shops, and though it's not likely right now, there's constantly an effort at the federal level to make it easier for the unions to come into our shops.  To read more about the negotiations that took place and the new contacts that Pilot Flying J employees fought for, please click the above link.

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

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!!

MEMBER BENEFIT PARTNER MESSAGE

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.