AAA CONTRACT UPDATE
NEW SUNOCO REWARDS PROGRAM UNVEILED
MARIJUANA -- A NEW PRODUCT IN YOUR C-STORE?

First off, I want to give a big thank you to all the members who have contacted me recently regarding your experiences with AAA. In last week’s Road Warrior I outlined some very serious concerns I had with the new contract AAA sent out to its approved repairers. I have also been working with our allies from Maryland who have the same concerns. As a result of that email I was contacted this week by officials from AAA.  We had a lengthy conference call involving several AAA officials and we discussed the problems and concerns regarding the relationship between AAA and its certified repairers. Although there was no conclusion or resolution to anything, they expressed a sincere willingness to repair the mistrust that now exists.
 
We have agreed to meet next month here at NJGCA headquarters. I am encouraged by their attitude and the commitment they expressed to me on the phone, and I am optimistic that we can work out several of our concerns and create a stronger relationship that will benefit everyone. I will report to you all at the conclusion of our meeting.
 
It has also been brought to my attention that Sunoco is planning to roll out a new rewards program involving Acme grocery stores. I am still in the process of analyzing this new program and its terms to see if it is fully in compliance with New Jersey’s strong law on rewards programs. As you know, NJGCA and our partners in the Fuel Merchants Association led the way in amending the law to ensure that dealers do not have to pay ANY of the costs associated with a rewards program. The most concerning aspect of the program that I have seen is that there is a $500 upfront fee to join. This does appear to me to be a violation, as N.J.S.A. 56:6-2(e) clearly says:
 

the retail dealer shall not be responsible for any of the costs associated with the rebate, allowance, concession, or benefit received by the motor fuel purchaser except for any interchange fees and transaction fees associated with the use of a credit card or debit card by a customer for the purchase of motor fuels.

 
In the meantime, if you are a Sunoco dealer I recommend that you do not sign up for this program at this time, I will let you know when I have fully concluded my investigation. If you have any more details on the program, or any questions or concerns, please reach out to me.
 
The final issue I wanted to touch on is one I never imagined I would be talking about when I took this job 9 years ago: legalized marijuana. Opinions on what was once a crazy idea have shifted dramatically in the last ten years. Nationally, a poll in June showed 54% of Americans in favor of legalization and 41% opposed. The issue jumped on my radar last week after Assemblyman Michael Patrick Carroll (R-Morris), one of the Legislature’s most conservative and libertarian members, introduced a bill that would not only legalize marijuana, but treat it exactly like tobacco. Politico-NJ ran an article specifically pointing out that convenience stores could sell pot under this bill. You can read that article HERE.
 
Realistically, this bill is not going to be moving anytime soon. Governor Christie has made it extremely clear that he opposes the legalization of marijuana in any form. However, I can certainly imagine that the next governor, who will take office in January 2018, will back legalization in some form. It has so far been legalized in Colorado, Alaska, Oregon, Washington state, and Washington DC. This November it is on the ballot in Arizona, California, Maine, Massachusetts, and Nevada. Some have estimated that the state of New Jersey could generate $300 million a year in new tax revenue if prohibition were to lifted. Given the fiscal mess this state is in, it will be hard to not allow such a change. 
 
Who knows, I may be writing you in the next few years to discuss the proper way to legally sell marijuana. It would be a bit ironic if c-stores were able to sell tobacco and pot, but not sell a six pack of beer because of our State’s out-dated liquor licensing laws.  That gives us yet another reason to seek changes to the law to make it easier for you to sell beer and wine in your c-stores!
 
Thanks for reading -- See you all next week!

Sal Risalvato
Executive Director
 

CLICK HERE TO REGISTER

CLASS DETAILS:
Class Date: Wednesday, October 19, 2016
Class Location: NJGCA Headquarters -- 4900 Route 33 West, Wall Twp, NJ 07753
Arrival Time: 7:00am (coffee and donuts will be served)
Lunch Break: 12:00pm (Pizza and soda will be served)
NJMVC Test: 1:00pm

CLASS FEES:
NJGCA Members: $250.00
Non-members: $300.00

Manuals are included and payment is due upon registration. All credit cards are accepted.

License Fee: Bring a $50.00 check made payable to NJMVC to satisfy the State's licensing fee.

PLEASE NOTE: If you live out of state, you must bring 6 points of ID with you, such as a license, passport, healthcare card, utility bill, etc.

09/25/2016:
Ping! The case for premium gasoline
Back in the days when we used a crank instead of an electric button to roll up our windows, Mike Buffa and thousands of other motorists would sometimes fill their tanks with premium gas instead of regular to improve performance. "It was sort of like taking a multivitamin," said the Dumont motorist. But last week, AAA kicked that old myth to the curb with a definitive study showing that American drivers wasted more than $2.1 billion last year by "trading up" this way because the higher octane in premium-grade gas offers "no benefit" for cars designed to use a regular fuel grade. This news is not particularly new. Consumer Reports and other authorities have been offering similar advice for decades. So, you'd think that more expensive premium-gas sales, generally required in luxury vehicles, would be waning. But no, sales are growing — from a low of 7.8% in 2008 to a high of 11.8% in Sept. of 2015, according to the Energy Information Administration. The reason: Auto manufacturers are gradually retooling engines to meet higher miles-per-gallon ratings under Corporate Average Fuel Economy (CAFE) standards designed to reach 54.5 mpg by 2025. Of course, there are many ways to boost fuel efficiency, such as reducing vehicle weight, improving aerodynamics, using renewable fuels, converting from gas to electric power and converting from a big engine to a smaller, high-compression version. To read comments provided by NJGCA Executive Director Sal Risalvato in this article, please click the link above.
 
09/26/2016:
Help Wanted: NJ small businesses are hurting for talent
Many small businesses in New Jersey have the “Help Wanted” sign out. But some say they just are not getting enough of the kind of qualified people they are seeking. New Jersey Business and Industry Association President Michelle Siekerka says many of their members have two hiring problems. “The future workforce may lack employability skills, which are those soft skills like communicating well, showing up on time.” Siekerka says some companies tell her they also have another problem with technical skills. Reinforcing this is an American Express survey of small businesses nationwide that found that they are eager to hire but have trouble finding the right people. Siekerka also cautioned about being “down” on the New Jersey workforce because the state “probably has the best labor pool in the nation when it comes to highly-skilled workers.” “But we do not have enough of them,” she said. She says the NJBIA is working with schools and academic institutions to better prepare the future workforce. “When the students come out of a program, whether a four-year degree program, or a one-year certification program, they can walk right out and have the skills needed by our employers.” Another problem is that some 18 to 34-year-olds are leaving the state for greener pastures elsewhere, in large part because of the state’s high cost of living.
 
09/26/2016:
Gas prices in NJ fall back after pipeline break sparked increase
New Jersey drivers dodged most of the spike in gas prices that hit southern states hard due to a break in the Colonial pipeline between Texas and Linden last week. The shut- down of the Colonial pipeline until Sept. 21 caused gas prices in states like Georgia to hit an average of $2.36 on Friday and some stations to run out of gas, due to the disruption in supplies. Al.com reported 25¢ per gallon price spikes in Alabama. New Jersey, by comparison, came out relatively unscathed, with a small run-up last week, which drifted downward, as predicted, by Tom Kloza, Oil Pricing Information Service global petroleum analyst. The average price of regular in the state was $1.99 on Friday and was $1.98 on Monday, according to GasBuddy.com. "We are out of the woods. There are still a lot of kinks from Maryland to Georgia," he said.  Colonial Pipeline No.1 went back in service on Sept. 21, after a break in the pipeline was reported on Sept. 9 in Shelby County, Georgia. That prompted a run up in wholesale gas prices, to a high of $1.46 per gallon, which dropped to $1.38 by Friday, NASDAQ reported. The next factor that could influence oil markets, is an "informal" OPEC meeting this week at the International Energy Forum in Algeria.
 
09/28/216:
OPEC agrees to cut production; oil prices surge
OPEC is finally agreeing to cut oil production. It would be the first time in eight years that the oil cartel would lower output.  The agreement was reached on Wednesday at a meeting in Algiers.  Oil prices surged more than 5% in reaction.  A global glut of oil supply caused oil prices to crash over the last two years. And OPEC nations, led by Saudi Arabia, have refused to lower production until now.  Under the agreement, OPEC oil production is expected to be reduced to a range of 32.5 to 33 million barrels of oil per day from 33.4 million. Saudi Arabia, the largest oil producer, is expected to give up 350,000 barrels a day, according to a senior OPEC source quoting the final proposal. Other OPEC nations are expected to lower production too, though more details were not immediately clear.  Three countries are exempted from the production cuts: Iran, Nigeria and Libya.  Economic sanctions were lifted on Iran earlier this year, and Libya and Nigeria have had some of their oil facilities damaged by terrorist attacks in recent months. Oil prices were as high as $100 a barrel in mid-2014 but the global oversupply caused prices to plunge to as low as $26 a barrel in February.  The volatility in oil caused stock markets to dive at the beginning of 2016.  In recent months, oil prices have rebounded a bit and oil is currently hovering near $47 a barrel.