NJGCA OPPOSES BILL TO ALLOW LOTTERY COURIERS
EMV DEADLINE EXTENDED TO OCTOBER 2020
FRUSTRATING SILENCE ON MVC INSPECTIONS
THREE UPDATES: MINIMUM WAGE INCREASE, SALES TAX DECREASE, DIESEL TAX INCREASE

The first issue this week is a piece of legislation which would allow a “lottery courier service” to operate in NJ.  Governor Christie vetoed the bill in the last session of the Legislature, but before that happened, some of our friends in the Legislature asked us not to publicly oppose the bill.  Since we don’t object to a legitimate courier service for lottery (as it can only bring more business into your stores) we were agreeable, based on our initial impression of how the courier service would be constructed.  The bill was reintroduced this session, and we’ve come to the realization that this is not a true courier service, in that it does not require that the lottery tickets be delivered to the purchaser.
 
This bill will allow an individual to set up an account with private vendors (and yes, the bill would allow there to be multiple vendors, which is good).  An individual interested in purchasing lottery tickets this way would set up an account with a vendor and deposit money into it. The vendor would charge a fee and then go to the lottery retailer (you) to purchase the tickets.  One obvious concern is that this will reduce foot traffic into your locations.  One “courier” could purchase the tickets for 10, 50 or 100 customers.  The courier then has to certify to the individual the proof of the lottery purchase with proof of the numbers that were drawn. Losing tickets can be discarded and winning tickets can be redeemed for you.  Tickets never need to actually be delivered to the purchaser.  Clearly, again, this raises a concern that if the courier is not making any deliveries, they can charge a nominal “fee” for their service, and essentially open the door for internet lottery. If these vendors were true “couriers” meaning they picked up and delivered lottery tickets for the elderly or the home-bound (as the bill claims it is intended for), then the fee would be higher to cover the expenses of the time and the travel required to make each delivery of tickets.
 
Legislators in general are in favor of internet lottery because more lottery purchases will lead to more revenue to the State. This bill was heard in the Assembly Gaming and Tourism Committee on Monday and although we have many friends on the committee who have strongly sided with us on other issues, the bill passed unanimously, despite our opposition. To listen to the testimony I provided, please click HERE. Every legislator that voted YES noted that they are extremely concerned by the points I raised and they are expecting the bill to be amended before it goes for a vote to the full Assembly.  I am meeting with the bill’s sponsors next week to begin hammering out what changes need to be made.  There was also a news article discussing the issue and quoting some of the testimony from Monday's hearing, which you can read HERE.
 
Next, last week Visa announced that they were extending the deadline for the transition to EMV capabilities for pay-at-the-pump from October 2017 until October 2020.  Since I informed you of this last week, MasterCard, American Express and Discover have made similar announcements. More will develop on this issue, however, we now have a 4 year window to deal with it, and I will keep you updated as information becomes available.
 
Also, I've received a few phone calls asking about the progress of the new inspection system that was supposed to be in place this past year.  I know it is frustrating but the current system that has been in place since 2009 is still operational.  The contractors who bid on a new system are not playing nice in the sandbox and have protested the winning bid.  Although I'm not permitted to have direct communication with MVC on the subject, I am able to learn bits and pieces and construct my own puzzle.  I mentioned several weeks ago that MVC has extended the current contract with Parsons until November 2017. However unlike previous extensions, this contract can be interrupted and ended as soon as the new contractor is in place.  That interruption can happen with 90 days notice.  I am still hopeful that we will learn of a new system to be in place early next year.
 
Finally, we have previously notified you of these changes but here are a few reminders just to make certain that nothing slips through the cracks:

1. Minimum wage will go up on January 1, 2017 from $8.38/hour to $8.44/hour as a reflection of the increase in inflation over the past year.You must inform and authorize your payroll company to make these changes for you.Additionally, if you are in the market for a new payroll company, AlphaCard Services (NJGCA’s MBP in that area) has put together a great, exclusive program for NJGCA members which cannot be beat.You would be doing yourself a disservice if you did not give them the opportunity to come in to your business and do a comparison with you. NJGCA’s AlphaCard rep is David Shamosh and his phone number is 866.253.2227 x 39.You can also call NJGCA and we will put David in touch with you.

2. The sales tax will be decreasing on January 1, 2017, from 7% to 6.875%.  This was part of the gas tax increase deal.  Please make a note to make that change in your billing software and programs.

3. Finally, on January 1, 2017, the diesel tax will also be increasing.The tax is supposed to increase approximately 16¢ on January 1, and there will be another increase on July 1, 2017. I say approximately, because remember what happened with the gas tax?  For the longest time we were expecting a 23¢ increase and then days before it went into effect on November 1, we found out the true amount was 22.6¢. Stay tuned for more specifics on the diesel tax increase.

Thanks for reading -- See you all next week!

Sal Risalvato
Executive Director