December 7, 2012

Dear NJGCA Member:

Thank you for reading this week's NJGCA Road Warrior!

CLASSIFIEDS!
•Do YOU have equipment for sale or are you looking for a new employee?!

NEWS AROUND THE STATE
•NJGCA in the News: Risalvato testifies on Lottery Privatization
•Report: Electric cars cheaper to maintain than traditional cars
•Christie seeks 100 percent federal reimbursement for Sandy
•Safety First: Seatbelt use rises to all time high

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

Greetings from sunny Florida! I’m in the Sunshine State for the next few days on a belated honeymoon to Disney World, but even typing this up on a laptop (I hate laptops) couldn’t stop me from sending you my weekly message!

On Wednesday, NJGCA was in Trenton to testify before the Assembly Budget Committee on the proposed privatization of the lottery. The late-scheduling notice on the hearing put a big crimp in my better-later-than-never-honeymoon plans, but thankfully it began early enough to allow me to make a mad-dash to the airport. As you know, we are generally in favor of any measure of proposal that privatizes various government functions. Typically, privatization helps to reap big benefits to taxpayers (who usually pay less for the same services) and helps grow private sector businesses (who contract with the state to provide those services).

Sal speaks to Ebbie Ashabi and Roger Verma before Wednesday's Assembly Budget Committee hearing on privatizing the lottery.

Sal giving testimony with Ebbie Ashabi and Roger Verma.

Members of the Assembly Budget Commitee during Wednesday's hearing. Committee members asked Sal, Roger, and Ebbie a series of questions during their testimony.

NJGCA Member Ebbie Ashabi testifies on how lottery ticket sales are essential to his small business, as patrons typically also purchase other, more profitable products.

Members of the public and the press listen as NJGCA testifies before the Assembly Budget Committee.

In this case, however, the situation has given all of us pause for concern. While the idea of privatizing the lottery may not be a terrible idea if done correctly, the devil, as they say, resides in the details. How will any privatization be conducted? Will additional fees or charges be imposed on lottery agents? Will a new payment structure be enacted that could soften the current 5 percent ticket-commission? These are lots of good questions that need answers before we endorse – or condemn – any kind of privatization.

More importantly, however, is what do we do with the elephant in the corner? That is, will such an effort eventually bring internet lottery gaming to New Jersey? As you know, internet lottery sales could very well diminish customer traffic at your shop. Those frequent lottery customers also purchase high-profit items like candy, chips, sandwiches, and more. If they were to simply stop patronizing your store because they could buy lottery tickets online, can you imagine what that would do your bottom line?

A few members of the committee questioned what lottery privatization has to do with internet lottery sales; aren’t they two distinct things? The simple answer is YES, but as we all know, nothing is ever that simple. Any move to shift the lottery to a private entity may certainly reap savings for Trenton and taxpayers, but could also force any new operator to scramble for additional profits. There’s nothing wrong with profits, especially since consumers win whenever companies are competing with each other for them. But in this scenario, a push for more revenue and additional profits may eventually entice any private lottery operator to ask the Governor and State Legislature for internet lottery purchases. Doing so would arguably boost their profits, while directly reducing yours.

Now that doesn’t mean a bill couldn’t be crafted to address our concerns, but as I’ve said in the past, sometimes all you need is for the camel’s nose to get under the tent and it’s all over. For now, I’m pleased to report that our message was seemingly well received with the committee members. This was only a hearing, so the bill wasn’t voted on and testimony was taken solely for informational purposes, but no one expects the idea to go away for good. Stay tuned!

The various generator bills that are being proposed are still being talked about by the press and legislators in Trenton. Right now Team NJGCA counts EIGHT proposals of one kind or another that would compel you to have a generator on site. Only one bill, proposed by Senator Buono, offers softer language that would mandate them only for stations on the A.C. Expressway, Turnpike, and Parkway, while offering low-interest loans for everyone else.

Regardless of specifics, the recent crisis is creating a lot of pressure to have “something” done before the next storm. But what? Forcing station owners like you to buy a generator – when you possibly cannot pay for it – is not the answer. This is especially true since the big issue during Sandy wasn’t power – it was gas deliveries! As I jokingly said during a recent interview on this, perhaps rather than mandate generators at your station, the Legislature should just ban hurricanes! Monday night I was interviewed on NJTV and asked to discuss the issue of generators at gas stations. You can view the interview by CLICKING HERE.

Last week we briefly touched on the current state of emergency. You’ll note I said “current” since the pre/post Sandy state of emergency is still in affect. You may think that’s odd, and you wouldn’t be alone. Until recently I thought the same exact thing until I was enlightened by my colleague Eric DeGesero at the Fuel Merchants Association, who told me that NONE of the prior states of emergencies have been lifted. Why you ask? Because if they were rescinded, it could harm people who later discover that their property was damaged by the storm (think hidden, structural damage or a similar situation). If the state of emergency were rescinded, then the federal dollars that could be claimed by those individuals would be lost forever. In that light it makes sense doesn’t it?

Yet, how does that affect the gouging laws that are tied to a perpetual state of emergency? Eric DeGesero and I asked the very same question when we were on a conference call earlier this week with Eric Kanefsky, the Director of Consumer of Affairs. Mr. Kanefsky understood our concerns and is currently seeking a solution in writing to help us feel more comfortable with the situation. Between now and then, Mr. Kanefsky promised us that they wouldn’t pull any fast ones, so stay tuned!

Lastly this week I wanted to quickly discuss the new minimum wage proposal that was just passed by the Legislature and is awaiting Governor Christie’s signature. The Governor has gone on the record stating he doesn’t like the proposal, but he especially doesn’t like the automatic yearly wage increases the bill would permit. Remember, the measure wouldn’t just increase the minimum wage to $8.50 an hour, it would also allow for a yearly adjustment tied to the Consumer Price Index. That means that as the Index goes up, wages would follow suit and increase year after year.

NJGCA has gone on record as stating this would be disastrous for the business community and for any kind of economic recovery. If the Governor follows through with his threat, and vetoes the bill, the leaders in the Legislature have stated they would seek to put a question on the ballot to constitutionally allow for the increase. That’s an even bigger train wreck waiting to happen.

Point is this battle is still brewing and we’re not out of the woods by a long shot.

Alright – My blood is starting to boil and Mickey Mouse is calling so I’m signing off here.

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!

12/6/2012:
NJGCA in the News: Risalvato testifies on Lottery Privatization
Executive Director Sal Risalvato spoke before the Assembly Budget Committee on Wednesday regarding a proposal to privatize New Jersey’s $2.8 billion lottery system. Sal expressed concerns over the possibility that outsourcing the lottery could eventually lead to internet lottery sales. Click above to read the full article.

12/6/2012:
Report: Electric cars cheaper to maintain than traditional cars
New research conducted at the Institute for Automotive Research (IFA) at the Nürtingen-Geislingen University in Germany suggests that electric cars could cost 35 percent less to maintain than traditional vehicles equipped with an internal combustion engine. According to the report, the reason for the cheaper costs is due to engine simplicity. While internal combustion engines have hundreds of parts, electric motors are less complex and experience less wear and tear. Electric vehicle supporters state that the lower cost of ownership may help to offset the initial vehicle costs and entice consumers.

12/3/2012:
Christie seeks 100 percent federal reimbursement for Sandy
Governor Chris Christie is asking the federal government to fully reimburse New Jersey for the cost of cleaning up after Hurricane Sandy. Administration officials have pegged the economic damages of the storm at nearly $40 billion.

11/20/2012:
Safety First: Seatbelt use rises to all time high
A new report from the National Highway Traffic Safety Administration reveals that, for 2012, approximately 86 percent of Americans are using their seatbelts – a record level. The study states that seatbelt use is highest in states that permit law enforcement to write tickets for non-compliance, and helps explain the decline in traffic fatalities.

TRAINING CLASSES!!
-ALL CLASSES WILL BE HELD AT NJGCA HEADQUARTERS-
66 Morris Avenue - Springfield, NJ 07081 (Union County)

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!!

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

DEFENDING OUR MEMBERS.
PROTECTING YOUR INTERESTS.
ANSWER THE CALL & CONTRIBUTE TODAY!!

Promoting our agenda in Trenton is of utmost importance to NJGCA and our members.

However, in order to truly affect the debate, we must ensure our friends in the Legislature are re-elected. It is for this reason that your Association has established the NJGCA PAC.

For too long, the weight of funding our Political Action Committee, the arm of the Association responsible for political donations, has rested upon a few. This is not only unfair to those few members who have shouldered this burden, but means we are not utilizing our full strength to affect the debate in Trenton.

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:
NJGCA PAC
66 Morris Avenue
Springfield, NJ 07081
Please make your donation payable to NJGCA PAC

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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