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April 12, 2013 Here is what you will find in this edition:
JOIN NJGCA ON FACEBOOK -- CLICK HERE EXECUTIVE DIRECTOR'S MESSAGE: GREETINGS & SAL-UTATIONS! DISCOUNT REWARD PROGRAM REDUX DISPENSER LICENSING FEES EXPLAINED ATTEND BEEFSTEAK FUNDRAISER – MEET GOVERNOR CHRISTIE Last week we discussed how old (and often bad) ideas are often recycled and repackaged in unexpected ways. In that most recent illustration, we talked about municipalities seeking to bypass legislative action in Trenton, in order to impose generator mandate laws on local small business owners in town. This week, however, I’d like to tackle this premise from a different perspective. Looking to March 2011, most of you will remember how NJGCA and our allies at FMANJ (and other small-business organizations) went to Trenton to fight against a below cost selling proposal disguised as a “discount reward/rebate marketing” program. At the time, a number of big-box convenience store and supermarket chains were looking to incentivize customers with such a loyalty/rewards program in exchange for discounts at the gas pump. We fought against the idea, especially since the “roll back at the pump” directly violated New Jersey’s below cost selling statutes. Ultimately our fight helped us secure a compromise law that insulated members and the market from manipulation. Since that law passed, however, a number of companies have used it to promote partnerships between gasoline stations and other retailers. For example, we know that Shell has worked in conjunction with Stop n’ Shop stores to promote and cross market their respective businesses. As far as we can tell, nothing that they’re doing violates the law we helped to negotiate a few years back. Shell and Stop n’ Shop, however, aren’t the only game in town trying this approach. BP has also dipped their toe into the waters, and though it hasn’t been fully implemented in New Jersey, their program already has me concerned for a few reasons. First, BP program offers customers a 5¢ discount per gallon, but charges the gasoline retailer 2.5¢ per gallon transaction fee. This is permitted by law, but it’s unclear how the discount will be applied. Second, we presently have some indications from the field that the price will be rolled back at the pump – which the law does not permit and technically could result in selling below cost depending on the posted price on top of the pump! The situation has me concerned, to say the least. As such, I took a trip on Monday to meet with Assemblyman John Burzichelli (D-Gloucester) in South Jersey. You’ll recall that the Assemblyman was one of the sponsors of the original legislation, then known as A-3133. My friend and colleague from the Fuel Merchants Association, Eric DeGesero, also participated in the meeting and brought along several of his members as well. Our topic, of course, was how the bill is being implemented and what (if any) amendments/clarifications may be needed. To help make our case, we brought a few BP gasoline retailers and distributors to illustrate what’s going on. The meeting was productive and Assemblyman Burzichelli is promising to help us find clarification on the issues we brought to his attention. We will report more on this as new information is available, so stay tuned! Recently we received a phone call from a member regarding New Jersey Office of Weights & Measures (OWM) dispenser license fees. The member was questioning the amount he owed, and we thought to share the information so you can avoid any similar confusion. If you operate a business in New Jersey that uses any kind of weighing or measuring instrument, you must register that device and/or license it with OWM. Obviously, that means your gasoline retail location falls under their jurisdiction and your fuel dispensers require a license. All fuel pump dispensers are registered as “volumetric meters” and there are fees that are attached to every hose and/or metering device. Currently those fees are $25.00 per hose/device, but all fees are capped at a maximum of eight devices. That means that no matter how many hoses you have above the 8 hose/device cap, the fee is going to be limited to $200.00. Additionally, if you send your payment in late, then you will be assessed a $10.00 fee for each device. Keep in mind, however, that as in all things related to government, it’s just not as simple as laid out above. That’s because, as the technology behind dispensing has changed a bit over the years, so has the rubric associated with figuring out the fees. Years ago, stations had dispensers with a single hose associated for each product. Think one hose for Regular, one for Plus, one for Premium. At the time, OWM would charge you a fee per house and/or metering device. That was the “traditional” way of calculating your total licensing fee. So, for example, under the “traditional” rubric, if you had two dispensers, with three hoses on each side dispensing three grades of gasoline, you would be charged for 12 hoses and/or metering devices. It breaks down like this: 3 hoses per side x 2 sides on a single dispenser x 2 dispensers = 12 hoses and/or metering devices. However, under this example, OWM would charge you a maximum of $200.00 since they are capped at an eight-house and/or device ceiling. Got that? Now it gets a bit more complicated since today, most stations use Multiple Dispensing Devices (MPD). Rather than using one hose per grade of gasoline per side as in the “traditional” example above, MPDs usually have only one hose per side. In this simplified set up, the dispenser itself will blend the fuel to the respective octane level and pump it through one hose. Looking back at the “traditional” fee rubric, you’d think that you’d just saved a few bucks since one hose per side would mean a lower license fee. You may be thinking, “I’m gonna pay $50.00 total fee per dispenser (2 hoses x $25.00) rather than paying $150.00 total per dispenser (6 hoses x $25.00) --- I just made out!” But, you’d be wrong! If you look carefully, you’d have noticed that OWM is charging you by hose and/or metering device. So counting hoses alone is a bit misleading since one metering device is associated with every grade of fuel that you sell per side. With even the modern MPDs dispensing three grades of fuel through one single hose, you’d still have three metering devices internally on each side of the dispenser. However, even with MPDs, the good news is that you are still capped at the same 8-hose/$200.00 license fee limit. Breaking it down again, if you have 3 metering devices per side x 2 sides x 2 dispensers, you’re going to only pay $200.00, even though you actually have 12 metering devices at your station. Remember though, that any renewal fee has to make it to OWM on time. If you’re late with payment, then a $10 late fee per hose and/or device fee will apply. The kicker with late fees is that there are NO caps on late fees and ALL Hoses will be used to calculate the late fee, so don’t be late with your payment! In the example above, if you have 12 hoses and/or metering devices at your station, you’ll have to pay a $120.00 late fee on top of the $200.00 license fee. So pay attention to the due date! If you have any questions on this or would just like to talk it through, please feel free to call the office and speak with Debbie Hill. Lastly this week, I’m asking for volunteers to attend a beefsteak fundraiser to support our friend Senator Tony Bucco (R-Morris) and meet Governor Christie! Before I get 100 phone calls, however, let me explain. NJGCA needs seven volunteers to attend a beefsteak fundraising dinner with Senator Bucco and Governor Christie. Tickets are $100 per person and the dinner will take place on Friday, April 26th in Randolph. NJGCA has reserved a table and the seven volunteer/contributors will be attending the event with Association staffers. This is always a great event. If you have ever been to a beefsteak dinner then you know how enjoyable it is. If you have not ever experienced a beefsteak dinner I ask…Why not? You are really missing out. This night is a great opportunity to chow down on some beef flesh, would give volunteers a rare opportunity to listen to our Governor, and possibly have an opportunity to meet him and also some of the state’s most influential decision makers. I think it would be fantastic for NJGCA to show up in full force, as it were, so I hope you’ll volunteer to purchase a ticket and join us at the event. If you have any questions, please give me a call. Thanks for reading – See you next week! Regards, Sal Risalvato Executive Director
BUSINESS FOR SALE!
Business Opportunity:
•Location – 34 Rt. 206 South – Somerville, NJ
Serious Inquiries Please Contact Bill at 908-887-1385
Do you have a business for sale? Are you looking for a new location or opportunity? 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!
CLASSIFIEDS: FOR SALE & HELP WANTED! After running an ad in the Road Warrior over the last month, NJGCA was able to assist a member in selling his equipment! 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!
NEWS AROUND THE STATE: THE NEWS YOU SHOULD KNOW 04/11/2013: Employer-based health insurance rates dropping Over the last decade, the availability of employer-based healthcare has dropped by about 10% over the last decade. Though reaction to the 2010 “Obamacare” health care law has not had an immediate impact on those numbers, many employers have stated that they may simply pay a fine under the law rather than buying insurance for employees. That’s because the universal coverage mandate will force employers to pay a $2,000 fine if they do not purchase insurance for employees. Click above to read the full article. 04/11/2013: Budget proposal seeks to double federal cigarette tax Earlier this week, President Obama released a new budget proposal which would increase taxes by $1 trillion over the next decade and include a new tax on cigarettes. Under the plan, federal tax on cigarettes will jump from $1.01 per pack to $1.95 per pack. The President would then use the estimated $78 billion over the next decade to pay for pre-school programs for children. Read the full article and its implications by clicking on the link above. 04/09/2013: Business Advocate: Opportunities in NJ limited by regulatory burdens Laurie Ehlbeck, state director of the National Federation of Independent Business, recently opined on a report indicating New Jersey small business owners are stifling under onerous rules and regulations. The comments come after a study conducted by George Mason University's Mercatus Center found that New Jersey is the third least-free state in the country. The report ranks states based on policies such as tort liability, property rights and taxes. Click above to read Laurie’s comments and the full report. 04/09/2013: Study says daydreaming is the worst driver distraction A new study conducted by Erie Insurance Group has found that out of 65,000 fatal crashes in 2012, distractions were a key factor in 10-percent of accidents. According to the report, daydreaming accounting for a large percentage of distractions. The study states that daydreaming was five times more prevalent than other distractions (such as cell phone use or playing with the radio) for causing a fatal crash.
TRAINING CLASSES!! NEW JERSEY EMISSION INSPECTOR TRAINING
PLEASE NOTE: FUTURE DATES 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 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.
POLITICAL PARTICIPATON: THE NJGCA PAC
Promoting our agenda in Trenton is of utmost importance to NJGCA and our members.
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: 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.
THE MEMBER TOOL BOX
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