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February 8, 2013 Here is what you will find in this edition:
JOIN NJGCA ON FACEBOOK -- CLICK HERE EXECUTIVE DIRECTOR'S MESSAGE: GREETINGS & SAL-UTATIONS!
BREAKNECK CREDIT CARD BILL PROGRESS
MANDATORY GENERATORS HEARING IS SCHEDULED VIRGINIA GAS TAX ELIMINATION MVC/CONSUMER AFFAIRS EVENT Before I address anything new this week, I want to revisit (and follow up on) an issue we covered last week: The supposed 4% credit card ‘surcharge’ we’ve been reading about ad nauseam from the press. To recap from last Friday’s Road Warrior, what the media is presenting to the public is the idea that this is suddenly being sprung on consumers and follows some major change in the law. In fact, that perception is utterly wrong: We’ve known about this for six months and it’s a result of a $7.25 billion lawsuit settlement. It has nothing to do with any new or imagined law that’s ever been implemented. The original 2005 lawsuit pitted Visa and MasterCard against merchants across the country. What was their beef? That Visa/MasterCard orchestrated internal company polices to fix transaction fees – and it was true, since retailers were not permitted to pass those fees along to consumers. As part of the settlement, however, merchants were permitted the CHOICE to temporarily charge patrons a surcharge equal to the processing fees in order to recoup their past losses. THE SETTLEMENT STINKS AND WILL ONLY ENRICH THE LAWYERS THAT ACTED ON BEHALF OF RETAILERS! If you’d like to read more on this, CLICK HERE to read (or re-read) last week’s Road Warrior message. Of course, you won’t have to worry about any of this since Trenton is moving to stop you from exercising that option – even if you were so inclined to do so. You see, everyone thought that this was prohibited in NJ by law; but in fact, it was your credit card processing agreement that was preventing you from doing so. Now that a settlement has been reached (but not finalized), people think that nothing will prevent merchants from passing the surcharge along to customers. You know what that kind of thinking means: “Trenton must act to protect Mr. & Mrs. Consumer and save the day”, or an elected official somewhere will rue the day they lost the opportunity to have their names mentioned in the paper. So, last week, S-2533/A-3758 was introduced to ban you from passing along the surcharge – and it has moved VERY quickly through the halls of power in Trenton. My concern about this legislation is that some one of authority may use it to interpret cash discounts are illegal. That would be very bad! What’s ironic about this is that Legislators and political pundits are screaming for something to be done, but they may ultimately end up with a solution in search of problem. I have gone on record as stating that the passing along of the surcharge to your customers is a BAD IDEA and that I DO NOT recommend doing so. Why? Because you already have the option to provide your customers with a discount for paying with cash. And secondly, and more importantly, the settlement circumvents the real problem (and reason) for the original suit: outrageously high processing fees. From a principled perspective alone it’s a bad idea because your customers will resent being charged an additional fee. Many other trade associations and advocacy groups have had similar sentiments and are advising their members to do the same. Yet that hasn’t stopped Trenton -- Even as bills were introduced, Committee hearings where scheduled, votes were counted, and press releases prepared, they never posted the language of each bill for the public to review! Thankfully we have alternative means of getting this kind of information, and were able to obtain a pre-public draft copy so we could figure out our own strategy. You may be reading this thinking that somehow it won’t affect you or that it’s nothing more than a blip on the over-regulation-radar. Yet what frightens me is the breakneck speed at which this has moved through Trenton and how some legislators may try to exploit the situation to eliminate Cash/Credit pricing. Think about that. Cash/Credit Pricing means you are offering patrons a cash discount. But to the untrained (or unhearing) ear, that may sound like your price is actually the cash price, and you’re adding a surcharge to your customers who choose to pay with a credit card. Can you imagine the mess that would make? Our full attention has been focused on that very possibility! Thankfully an amendment was offered and passed this Monday at the Senate Commerce Committee hearing that would permit fuel retail locations to “sell similar fuels at different prices to cash and credit customers”. I was able to testify at the hearing to let the members know what our concerns are. What’s more, Eric DeGesero and our friends at the Fuel Merchants Association of New Jersey (FMANJ) also did an outstanding job to help legislators see how problematic the bill is. I have cooperated and worked alongside Eric DeGesero on a number of issues over the years, and cannot thank or praise him enough for his hard work and cooperation. The companion bill in the General Assembly was heard on Thursday in the Assembly Financial Institutions and Insurance Committee – only a few hours before the entire Senate passed S-2533 by a 31-4 vote. If you didn’t catch that, let me explain it more plainly: In the Senate, the bill was introduced last week, heard in committee on Monday, and passed by the entire Senate Thursday afternoon. The entire life-span of the bill in one house of the Legislature took less than two weeks, from soup to nuts. That’s not only blazingly fast, it’s nearly unheard of! What about the Assembly version? As I stated, it was heard on Thursday morning and I suspect it will be up on the board list the next time the General Assembly meets on February 14th. I believe it will pass in some form (hopefully with the amendments we have proposed to exempt motor fuel sales) and then head for Governor Christie’s desk. Once it gets there, however, things get a little cloudier. I’m nearly certain that the Governor will either veto the legislation or conditionally veto it, with the added provision that all businesses be exempt from allowing cash discount and not just gasoline retailers. It will then need to be approved by the Legislature. A few onlookers have stated that the exemption isn’t needed, and that a cash discount is different and distinct from a surcharge. I’d agree, but would much rather have it written into the law than leave it up to the courts and regulators to interpret. As I am writing this I am learning that the Assembly Homeland Security Committee has called a hearing to discuss the myriad of bills that have been introduced that will require you to install a generator at your gas station. Things happen suddenly and fast in Trenton and my ear is constantly listening for laws that are lurking around the corner to hurt you. I guess I will get to work preparing my testimony for Monday. Additionally, the much debated and controversial minimum wage bill - which seeks to create a Constitutional Amendment through a ballot initiative - passed the State Senate on Thursday by a vote of 22-15. It now needs to be heard in the General Assembly and you can expect that to come up on the 14th along with the previously mentioned surcharge bill. In other news, Virginia is considering the elimination of their gasoline tax. Governor Bob McDonnell wants to scrap the state’s 17.5 percent gasoline tax and replace it with a higher sales tax. While that doesn’t seem so odd, you have to keep in mind that it’s nearly “ludicrous” in the world of government budgeting. Why? Because it’s been an accepted mainstay of infrastructure maintenance for decades that those who “use the roads should pay for them”. Many feel that the gas tax should just be increased to get the funding they need for transportation projects. But that ignores the fact that the gas tax isn’t pulling in as much money as it used to. The reasoning is simple: Cars today are more fuel-efficient, fuel-sipping hybrids are available, and electric- and CNG-powered cars are gaining in popularity. These newer, more efficient vehicles are driving down gasoline tax revenues and hampering infrastructure projects. All that while we are driving more, but using less gas. So government must find a new way of raising revenue for road repair. What’s Virginia’s plan? To get rid of the gasoline tax, raise the sales tax from 5 percent to 5.8 percent, and charge alternative vehicle drivers a $100 registration fee (no, that last part isn’t a joke). The idea behind all of this is that, in switching from a gas tax (which is erratic) to a sales tax (which is more stable), transportation funding will be consistent and steady. That’s an interesting idea isn’t it? The plan has won big support in the Virginia House of Representatives and the State Senate. Many expect a final bill to soon arrive on Governor McDonnell’s desk. But, don’t get too excited about the same happening in New Jersey anytime soon. Though Virginia is bold in their ambitions, other states are closely watching to see how revenues are affected long term. That will take years of observation and statistics to prove to elected officials in Trenton. Finally, I was invited along to a joint MVC/Consumer Affairs press event last week in Morganville, which focused on the sale of flooded and salvage cars from Hurricane Sandy. Since those vehicles are titled as either salvage cars or flooded vehicles, they aren’t fit for normal sale. The state wants to prevent those cars from being passed off as ordinary used cars and protect consumers from purchasing a damaged vehicle. A website was established to give potential-buyers the appropriate title and vehicle information of these vehicles, and allow them to check the list to see if the car they are interested in buying has been reported as salvaged or flooded. You can watch a video of the event by CLICKING HERE, read our Press Release by CLICKING HERE, and see pictures from press conference below.  Acting Director of the N.J. Division of Consumer Affairs, Eric T. Kanefsky, speaks to reports on Thursday, January 31, 2013, as NJGCA Director Sal Risalvato listens to the presentation.  Sal listens to Raymond P. Martinez, Chief Administrator of the N.J. Motor Vehicle Commission, as he addresses reporters. One key fact that both MVC Chief Martinez and Consumer Affairs Director Kanefsky both pointed out is the invaluable role that auto repair technicians and mechanics will play in protecting consumers. They have encouraged all used-car purchasers to get their vehicle checked out by a mechanic to inspect the vehicle for flood damage and review the new MVC/Consumer Affairs website to see if it is listed. That means you will have another tool to serve the public and your customers! Thanks for reading – See you next week!
Regards,
BUSINESS FOR SALE! If you'd like to list your business for sale, publish a location you're selling, or are seeking a business partner for your establishment, please contact NJGCA at 973-376-0066!
CLASSIFIEDS: FOR SALE & HELP WANTED! 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!
NEWS AROUND THE STATE: THE NEWS YOU SHOULD KNOW
02/06/2013:
First round of Sandy aid coming to New Jersey Garden State residents, businesses, and municipalities will receive an initial $1.8 billion in Hurricane Sandy recovery aid as part of the first round of federal government funding. The funds come as part of a larger $50.5 billion federal disaster relief, which is expected to come in later allocations. 02/06/2013: Survey: Small Business halt hiring as worries mount According to a new Wells Fargo and Gallup survey, a growing number of small-business employers are freezing plans for any new employees due to worries their establishments will not survive the year. The results have surprised some industry watchers who have made ample credit available to small businesses through the current economic crisis. Click above to read the full article. 02/05/2013: Efficiency, performance claims of small-displacement, turbo engines questioned After testing a number of new-vehicle powertrains, engineers from Consumer Reports claim that the small-displacement, turbocharged motors currently available in the market do live up to expectations. Tests illustrate that performance and fuel efficiency results of these engines have marginal improvements over the six-cylinders they replace. Though the smaller forced induction engines seem to be equally powerful and more fuel efficient on paper, engineers state that the numbers are unachievable in real world conditions. Click above to read more. 02/04/2013: Ban on future jughandle construction discussed A new debate in the Senate Transportation Committee questions whether or not the state should ban any new jughandles from being constructed in the future. Colloquially known as the “Jersey Left”, supporters of the ban state that the time for jughandles have passed and motorists should not have to “turn right to go left”. Opponents, though not outright supporting the construction of jughandles, do not wish to see a ban imposed because every roadway intersection is unique. The bill, S-309, was released from committee, but may still receive further changes before being voted on by the full State Senate.
TRAINING CLASSES!!
1.) EMISSION TECHNICIAN EDUCATION PROGRAM (ETEP) COURSE 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!!
MEMBER BENEFIT PARTNER MESSAGE
TMP Energy Solutions 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
Promoting our agenda in Trenton is of utmost importance to NJGCA and our members.
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: 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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