April 8, 2011

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!
•Below Cost Selling, Street Sign Bill, Diesel Bonds & Redistricting

NEWS AROUND THE STATE
•Federal workers face furlough as D.C. budget battle continues
•Report: Half of state highways need repairs
•NJGCA in the News: Risalvato talks pump price hike, speculators
•Trenton to make substantial payment to pension fund

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

TRAINING CLASS SCHEDULE
•New Class Added: NJ EMISSION INSPECTOR TRAINING CLASS

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

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

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

BELOW COST SELLING, STREET SIGN BILL, DIESEL BONDS & REDISTRICTING
 
Have you ever gotten a great start negotiating something, but deep down, you know that it won’t end on a high note?  No matter if it’s a negotiation with a prospective customer, your wife, your children, or even your employees, it is bound to happen one time or another…and this week it happened to me.
 
Over the last six months, we’ve reported an ongoing dialogue over a proposed Below Cost Selling bill (known as the ‘Rebate Bill’ by some), as we’ve tried to compromise with the legislation’s supporters.  It all started out very well and I was incredibly hopeful of coming to an agreement that would be mutually beneficial.  Eric DeGesero, my counter part at the Fuel Merchants Association of New Jersey (FMANJ), has done a praiseworthy job of trying to get the details worked out.  In addition, the NJGCA board members and staffers have also worked alongside FMANJ to get this resolved.  NJGCA and FMANJ have done everything possible to avoid a showdown on the floor of the Assembly and Senate.
 
Why are we fighting so hard on this?  If enacted into law, the legislation would permit cross-marketing giveaways at your gas station. That means that big box retailers could incentivize customers who purchase gasoline with free coffee or other items tied in to the sale of the gasoline.  In doing so, the vendor would basically create a below cost selling situation.  For example, Mrs. Motorist could purchase $10 in gasoline, but then get a coupon to buy a bag of potato chips at half-price.  Or Mr. Grocery-shopper may accumulate $200 in purchases at their local supermarket, and as a bonus reward, get 20¢ off per gallon discount on the first ten gallons purchased at a gas station. 
 
Yes, I know what you’re thinking: ‘You can’t do that Sal!’  Yet, under this proposal your competitors would be able to do just that – and put you both on unequal footing.
 
The proponents of this bill, the New Jersey Food Council (NJFC), are pushing this legislation to help their members, which includes big-box gasoline retailer chains with convenience stores, food stores, super markets, and grocery shops.  Standing between them and the Legislature is NJGCA and our longtime allies at FMANJ. Believe me when I tell you’ve we’ve tried to hammer out a compromise from every angle.  We’ve met with our opponents, exchanged revisions and amendments to the bill, held large-scale meetings, and ultimately agreed to halt our discussions a few weeks ago to digest the final round of counter-offers. 
 
On Wednesday, we had a joint meeting with select NJGCA and FMANJ directors and board members to decide our collective final strategy moving forward.  After much deliberation, the unanimous decision was reached that we stand our ground to oppose this bill.  That means if our opponents do not accept our compromise, and move forward with this legislation in its present form, then we will fight it vigorously! 
 
The confusion and disorder in Trenton may actually work to our advantage for once.  Since we are heading into the height of the budget season, everyone in Trenton is 100% focused on getting the budget passed (especially now that redistricting is done – but more on that later).  However, with gas prices on the rise, and motorists screaming for some relief, legislators may act out of impulse; and that is never good.
 
But don’t jump to any conclusions yet!  Stay tuned because we will need ground troops making phone calls and visiting legislators, and yes…..to show up in Trenton if the bill is scheduled for a hearing.
 
Another proposal was put forward which would make it mandatory for you to post additional Cash/Credit Pricing information on your street signs.  While we do not have a great deal more to report on this, we do have an URGENT REQUEST to make: PLEASE SEND US EXAMPLES OF TOWNS WITH RESTRICTIVE SIGN ORDINANCES.  One thing being overlooked by the sponsors of this bill is that every town has different ordinances and variance laws controlling sign posting.  Please alert me IMMEDIATELY if your town is one of those which would restrict/require you to get a variance regarding the size of your street sign and/or regulate the lettering sizes on your sign. 
 
Many of you sell diesel fuel and know that the state recently changed the law regarding the collection of diesel taxes.  Up until January 1^st, the state collected all diesel taxes at retail locations and made small business owners remit them each month.  In order for the state to ‘trust you’ with their money (funny how it’s THEIR money and not the PUBLIC’S money, isn’t it?), you were required to purchase a performance bond and/or bond insurance.  The idea being that the bond would cover your liabilities if your diesel tax remittance wasn’t fulfilled. 
 
However, this is no longer necessary.  Since the New Year, all diesel taxes are collected at the rack.  That means you can reap the additional savings by canceling your bond insurance! 
 
Nevertheless, in order to officially cancel your policy, you have to show proof that you are released from this obligation.  Here’s what you need to do and keep in mind:

1). There is no online form to cancel the bond or release any cash deposits.
2). In order to file a diesel tax bond release, follow these steps:

a). Send a request in writing requesting that the Division of Taxation release your diesel tax bond or for  cash deposit refund.
b). You must include your:

i. Federal Identification Number (12-digit Tax ID Number)
ii. Corporate Business Name
iii. The “Doing Business As” Name (DBA Name)
iv. Business Address
v. Name of Person Sending in Request (owner of the business)
vi. Business phone number and cell phone number

3). You must then either FAX or MAIL the request to Mr. Fester Watson:

a). FAX the above request to Mr. Fester Watson at 609-292-2863
            or
b). MAIL the above request to Mr. Fester Watson at

Division of Taxation
Attention:  Mr. Fester Watson
P.O. Box 189
Trenton, NJ 08695-0189

NOTE: Once Mr. Watson receives the request, he will review your account for any outstanding delinquencies or deficiencies.  If there are none, your account will be processed.  If there are any outstanding delinquencies or deficiencies, you will be responsible for addressing those matters before your bond is released.

4). Once you receive the bond release, you can contact your bond insurance provider and have the insurance policy canceled.  Any premium left over should be sent back to you. 

If you have any questions or comments on this process, please contact Debbie Hill at 973-376-0066.
 
Finally, last Friday we discussed the New Jersey Legislative Reapportionment Committee and how the process was to be completed last Sunday.  If you didn’t read last week’s Road Warrior, or don’t remember the particulars, click HERE to (re)view the details.
 
As you know, this Committee is responsible for redrawing New Jersey’s 40 Legislative Districts the year after the census.  Each political party is to submit a map and the 11^th Commissioner Member – who is supposed to be independent-minded and acts as a tie-breaker – can either pick one map over the other or propose his own map.  The result of the Committee’s work essentially determines which political party will likely control the Legislature for the next decade.
 
After reviewing all the information presented to him, Dr. Rosenthal – the appointed tie-breaker in the redistricting process - selected the map presented by the Democrat delegation.  His selection means that it is likely that the Democrat party will continue to control the Legislature for the next decade.
 
Like I stated in last week’s Road Warrior, no matter who wins the map, the most important thing as small business owners is to get involved in the process and help steer both the Democrat and Republican parties to nominate pro-business oriented candidates.  While many of our members seem to ignore politics for one reason or another, no one can doubt the enormous impact that policies forged in Trenton have on your establishment. The only way to prevent a problem from hurting you TOMORROW is to show up TODAY and make your views heard.  Failing to do that means we will continue to fight overly-burdensome, feel-good legislation from those who see you only as a revenue source rather than a vital part of the state’s economy. 
 
To read more about the redistricting process and the final map selection, click HERE

Thanks for listening - See you next week!

Regards,
Sal Risalvato
Executive Director

NEWS AROUND THE STATE

4/8/2011:
Federal workers face furlough as D.C. budget battle continues
Workers employed by the federal government are preparing for a long government shutdown as Congress and the White House continue to spar over passing a federal budget.  If the shut down becomes a reality this evening, approximately 800,000 non-essential workers would be furloughed.

4/7/2011:
Report: Half of state highways need repairs
According to a new report by the New Jersey Department of Transportation (NJDOT), 50% of the highways maintained by the department are in need of some repair.  NJDOT oversees more than 8,400 miles of roadway and is seeking approval of Governor Christie’s $8 billion, 5-year Transportation Capital Plan.  The report assigns a condition-grade to state roadways, such as ‘deficient and in need of repair’ to ‘mediocre to fair condition’.  Click above to read more on this report.

4/5/2011:
NJGCA in the News: Risalvato talks pump price hike, speculators
Executive Director Sal Risalvato recently spoke to Asbury Park Press reporter David Willis on the rising cost of gasoline.  Sal said that part of blame is due to investment-speculators driving up prices because they are worried about interruptions in Middle East oil production. Ultimately, Sal says, any increase hurts motorists and station owners. Click above to read the entire article.

4/4/2011:
Trenton to make substantial payment to pension fund
New Jersey State Treasurer, Andrew Sidamon-Eristoff, has said that the Christie Administration will make a half-billion payment to the state’s under-funded pension fund.  However, Treasurer Sidamon-Eristoff said that the Governor has agreed to make the $506 million early if the Democrat-controlled Legislature agrees to raise the retirement age and require state workers to pay more toward their pensions.  The state’s pension system is currently under-funded by $54 billion.

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