December 3, 2010

Dear NJGCA Member:

Here's what you'll find in this edition of the NJGCA Road Warrior, and thank you for reading:

EXECUTIVE DIRECTOR'S MESSAGE: GREETINGS & SAL-UTATIONS!
•Price Hikes!!!  PLUS Issue Updates, Gas Taxes & Tool Kits

NEWS AROUND THE STATE
•State residents to lose extended federal unemployment benefits
•Garden State becoming friendlier to businesses
•State unemployment benefits to be cut to 26 weeks from 99 week high
•NJGCA in the News: Association President talks self-serve

A REGULATORY ADVISORY FROM ATS
•New air regulations will be enforced on January 10, 2011 -- will you be ready?

NJGCA WANT AD CLASSIFIEDS
•Do you have what this member is looking for?!

TRAINING CLASS SCHEDULE
•See our latest training class schedule below!!

POLITICAL PARTICIPATON: THE NJGCA PAC
•Participate in the NJGCA PAC today and help us keep our Agenda rolling in Trenton!

A SPECIAL MESSAGE FROM BELLOMO FUELS
•Serving New Jersey since 1910 -- 100 years of supplying gasoline retailers like YOU!

THE MEMBER TOOL BOX
•On the NJGCA Homepage
•Know your Territory Manager!


 EXECUTIVE DIRECTOR'S MESSAGE: GREETINGS & SAL-UTATIONS! 

Whooaa...PRICE HIKES!! PLUS ISSUE UPDATES, GAS TAXES & TOOL KITS

 

 URGENT!!!!  NEWS FLASH!!!  URGENT!!!!
 
The weekly Road Warrior is usually written and edited on Thursdays in order to be sent to members for review on Friday mornings.  This week, I had to stop the presses in order to alert NJGCA members of events that have been brought to my attention today.  Over the course of the day even while out of the state, I received 3 different accounts from members regarding the U.S. Department of Labor entering their businesses over the past 2 days.  Although I do not have details from the USDOL, it appears as if they are conducting raid style audits of your payroll.  Their tactics appear to be threatening and intimidating.
 
All accounts from members state that USDOL officers enter the premises and completely halt all operations.  They segregate the employees and interview them individually and privately, with each officer taking employees to different locations on the premises to be interviewed.  USDOL officers are asking employees questions that pertain to the number of hours that they work each week, the rate of pay that they receive and then compare overtime records.  They seem to be searching for workers that are not being paid overtime, and workers that are being paid cash under the table.
 
I wrote you back in October that I had met with NJDOL Commissioner Hal Wirths and he expressed plans to work with USDOL to make an effort to find fraud in the unemployment system, and to find both employers and employees that are cheating the system.  My guess is that the reports that I have received today will only be the beginning and enforcement will be stepped up.  Keep in mind that illegal immigration and undocumented workers that are cheating the tax system are becoming a bigger issue than previously discussed.  The USDOL will take serious actions should they enter a location and find undocumented workers.
 
My job is to alert you that this is taking place, however, it is also my job to advise you that illegal employment practices such as avoiding overtime, paying workers under the table and off the books, and hiring undocumented workers are virtually impossible to hide in an audit, and easily uncovered by interviewing both employees and customers.  I must warn against any of these practices.
 
If USDOL visits you, please alert me immediately.

WE NOW TAKE YOU BACK TO YOUR REGULARLY SCHEDULED ROAD WARRIOR:

For the 5th time this year we are seeing an upward spike in the cycle that we experience in gas prices.  Many racks have been increasing over the past week, and just last night several majors jumped 10 cents or more.  Why?  Because they want more profit!

There isn’t any actual reason for prices to rise at this time.  This has been the case over the past year each time we get in to an upward trend in the cycle.  Traders are speculating and gambling the price upwards without any correlation to supply and demand.  Each time the market corrects itself by moving downward after suppliers realize that they have priced fuel too high, and they will drink their gasoline if they don’t lower the price.  I expect the same will happen in this cycle.  Suppliers are smart enough to maintain their margin and I pray that you will do the same. 

Enough said!

As you know, one issue that continues to crop up and threaten us is Below Cost Selling.  While we have successfully combated this issue in the past, many legislators continue to believe that this is a good idea. However, since legislators are reluctant to get involved in any situation where two business groups oppose each other, the sponsors of this bill have asked that both sides sit down to negotiate terms for a more satisfactory bill.  The group supporting this initiative, the Food Council of New Jersey (an organization we have worked very well with in the past and remain friendly with), represents supermarkets and grocery stores.  While we have had constructive, thoughtful and serious discussion with them, their ultimate goal is to allow cross promotions that could result in a relaxation of existing Below Cost Selling laws.  The Food Council wants to reward supermarket customers with steep discounts at the pumps regardless of whether the cost of the promotion results in a gallon of gas being sold below cost.  Together with our friends at the Fuel Merchants Association of New Jersey (FMANJ), who represent many small gasoline distributors (and some of whom supply many of you), we’ve been trading proposals with the Food Council.  As of this writing, we have yet to reach a compromise but believe we are getting closer. 

For the past several months, we’ve also been updating you on the issue of proposed Cash/Credit pricing regulations and how some legislators want to prevent you from charging more on a credit card sale.  These proposals would limit the difference you can post your price between cash and credit.  Again we’ve been working with our friends at FMANJ.   Several sponsors have agreed that they will not support this legislation and have asked that their names be removed from sponsorship.  Once we meet with legislators and demonstrate the mathematics involved, they realize that implementing Cash/Credit pricing not only helps small business owners like you, but it also helps your customers.  Once they hear how the numbers work, they are backing off their support.  However, we must remain vigilant.  If these bills (or any other bills that could harm you) make it to a hearing, we will need you there to explain how this will be harmful too you.

The issue of electronic lottery ticket sales is still far from resolved.  We have met with the bill’s primary sponsor, Assemblywoman Quijano, to explain how internet lottery sales by the State of New Jersey, will be harmful to small business owners who sell lottery tickets in their convenience stores.  Many of you depend on traffic derived from lottery ticket sales and understand how this will hurt your businesses.  What supporters fail to realize is that those lottery tickets increase your patronage and profits, as customers buying these tickets often purchase other revenue-raising items like milk, coffee, chips, bread and other essentials. We’ve tried to make the Assemblywoman understand that small business community shouldn’t be in competition with the State of New Jersey for the same customers.  I can’t say that she agrees with our position, and wants us to propose an alternative solution.  Unfortunately, what alternative can we propose that won’t ultimately hurt you?  In the end, we may have to agree to disagree, flood her office with phone calls opposing her plan, and of course filling the state house with our members if her bill is scheduled for a committee hearing.  Stay tuned.

Last on the issues front, I mentioned recently that thanks to the initiative of Exxon dealers, amendments to our First Right of Refusal legislation have been introduced by Senator Cardinale.  I was hoping that I would be sending a Wildfire Alert this week requesting that you all head to Trenton on Monday for a committee hearing.  However, the bill was not scheduled.  I do expect that it will be scheduled sometime in January.  LET ME BE CLEAR….when I notify you about this legislation I expect that more than Exxon and Shell dealers will show up in Trenton.  Last year Sunoco and Gulf dealers sat on the sideline while their brethren Exxon and Shell dealers did the heavy lifting.  First Right of Refusal legislation will help any brand dealer when their franchise oil company someday divests their real estate.  ALL oil companies will eventually sell their real estate.

Recently there have been a number of editorials that are circulating around the state suggesting alternatives to raising the gas tax.  These pieces have stated that, while cars have become more and more efficient, the gasoline tax is not collecting as much revenue as it once did.  Rather than looking to a gasoline tax to raise monies for road repair and construction, a new study proposes using electronic devices to charge motorists for every mile they drive.  Basically, this would amount to using your EZ Pass device to keep track of how much you drive, multiply it by an acceptable fee, and then send you the bill. 

As oppressive as this sounds (and it is oppressive and more than a little frightening to think the government is watching every mile you drive) there are still many technical and legal hurdles that must be overcome before it becomes a reality.  Nevertheless, small pilot programs are being tested in Oregon and other locations throughout the US to study its viability.  While we may be a few years away from any kind of a rollout, you should be aware that this is being explored and how it may affect your customers!

Over the last few months I have stated that the Governor’s Office has been in contact with many business leaders around the state, including yours truly.  Though the substance of these meetings has been far ranging, one consistent topic of conversation is the need to pass the Governor’s “tool kit” reforms in order to reign in excessive spending and give local governments the means to combat spiraling costs. 

Recently I was sent a letter outlining what reforms would be enacted as part of the tool kit and how the small business community can help make it a reality.  You can view this letter by clicking HERE and reading what the Governor proposes.  Then, reach out to your local legislators and ask them to support the tool kit and get it passed into law!  As a small business owner, local spending, property taxes, school budgets, and the tax burden placed on your patrons is of utmost importance.  Do your part today to help your establishment and your customers tomorrow!

Thanks for reading.  See you next week!     

Regards,

Sal Risalvato
Executive Director

NEWS AROUND THE STATE

12/1/2010:
State residents to lose extended federal unemployment benefits
Earlier this week, extended unemployment benefits began to run out for 400,000 New Jersey residents. Over the last few years, Congress has extended the unemployment program four times.  A fifth emergency extension would have hiked the maximum claims period to 99 weeks of benefits. 

12/1/2010:
Garden State becoming friendlier to businesses
Earlier this week, Governor Christie stated that New Jersey is slowly becoming more attractive to the business community.  Citing years of harsh regulations and bureaucratic hurdles, the Governor says a lot more needs to be done, but the Garden State is moving in the right direction.  Citing the pressing need for such reforms, the Governor underlined the fact that $70 billion in wealth left New Jersey for states such as North Caroline, Virginia, and Florida.  Click above to read the full article.

12/1/2010:
State unemployment benefits to be cut to 26 weeks from 99 week high
The Labor Department reports that unemployment insurance benefits for first time filers will be cut from a record 99 weeks to 26 weeks, plus an additional 20 weeks that are triggered when the unemployment rate is high, as it is now.  The reduction comes on the heels of Congress’ failure to implement a $12.5 billion jobless benefit extension. 

11/27/2010:
NJGCA in the News: Association President talks self-serve
A recent Wall Street Journal article explores the issue of full-service gasoline and why pumping your own gas is illegal in New Jersey.  NJGCA President Tim Arata was recently interviewed by the Journal and gives his personal opinion on the debate.  Click on the link above to read what Tim – and others – are saying about this issue.

CLICK HERE TO READ MORE ARTICLES IN OUR “NEWS AROUND THE STATE” ARCHIVE

                                                                                                                                                                                    

 

Get up to date and get on top of this new law!

Contact us and use our easy contact form to request the complete
federal law including all the new requirements for GDFs.  

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www.atsenviro.com

NJGCA WANT AD CLASSIFIEDS

NJGCA Member Jerry Sweet needs to relocate his shop.

He is looking for a new location in the Mine Hill, NJ area and is asking fellow NJGCA Members for assistance.

If you have at least 2 bays available, please contact Jerry at 973-252-5151 or email him at Sweetmotors@optonline.net