National Advocacy

In today’s highly competitive business environment, changes in federal rules, regulations and laws can have a dramatic impact on your business operations. Members are provided with up-to-date information on new laws and regulations. More importantly, the AFPD maintains a comprehensive government affairs program which constantly seeks to influence legislative and regulatory policies on the federal level affecting retailers. Our team effort approach also gives members an opportunity to take an active and direct role in communicating with their federal legislatures on issues of concern.

Legislative Issues Affecting ALL Food, Beverage & Petroleum Retailers...

HR 2695 CREDIT CARD FAIR FEE ACT
HR 2382 CREDIT CARD INTERCHANGE FEE ACT
Each proposal seeks some relief for the retail merchant and consumers from the onerous credit card fees (swipe fees). Especially in the retail motor fuel business, the cost of honoring credit cards often exceeds all line item expenses with the exception of gross payroll. The AFPD strongly supports these bills that would require the Federal Reserve to regulate anti-competitive credit card interchange fees, require debit transactions to clear at their face value (at par) like checks, and eliminate unfair anti-competitive rules. Consumers would clearly benefit from reductions like those in other countries where governments have acted to reduce the fees by 50 percent or more.

H.R. 3590 and H.R. 4872 - Health Care Reform
AFPD opposes H.R. 3590 and H.R. 4872 based primarily on the increase in taxes on those companies operating as subchapter S. corporations and the inclusion of employer mandates and the application of those mandates on part-time workers. The legislation increases Medicare taxes on wages for those individuals with incomes of $200,000 ($250,000 for couple) from 1.45% to 2.35% and imposes a 3.8% tax on unearned income for higher-income taxpayers. Thresholds are not indexed to inflation. Many small business owners are set-up as Subchapter S corporations with the business income passing to them as individual income. These owners will now face new tax increases.

H.R. 3905, the Estate Tax Relief Act of 2009
AFPD strongly supports full repeal of the Estate Tax for family-owned businesses, but we support H.R. 3905 to provide the best possible relief to our members during the current environment. Senators Kyl (R-AZ) and Lincoln (D-AR) have proposed a popular bi-partisan solution in the Senate that would make the estate tax at a top permanent rate of 35% with a maximum exemption of $5 million per individual, indexed to inflation.

S. 560 and H.R. 1409 - EFCA - Employee Free Choice Act (EFCA)
AFPD opposes S. 560 and H.R. 1409, the Employee Free Choice Act.

• No Private Ballot: The mislabeled Employee Free Choice Act replaces the current NLRB supervised private ballot election process that permits an employee to vote in private when deciding whether or not have a union. With a “card check” system under the bill it only requires a union to get more than 50 percent of employees to sign a card and bypass the private ballot election process.
• Mandatory Binding Arbitration: If a collective bargaining agreement isn’t reached in 120 days employers and employees would be subject to contract terms for two years decided through mandatory binding arbitration by federally appointed government arbiters.
• Penalties: The legislation triples back pay awards for unfair labor penalties, imposes a $20,000 penalty for each violation of the Act if the NLRB or court deems the violation willful or repetitive. No penalties are increased for unions.
• No Compromise: There is NO ROOM for compromise on this legislation. All parts of the bill are equally devastating to all businesses, large and small.

S 1147 - PREVENT ALL CIGARETTE TRAFFICKING (PACT) ACT
This legislation strengthens federal laws on cigarettes sold over the Internet. The PACT Act allows states to recover lost excise tax revenue and allow legitimate retailers to recover lost business. The PACT Act also helps to prevent youth access to tobacco by banning shipping of cigarettes through the U.S. Postal Service. The House will need to take a final vote to accept the Senate version of the bill. While some Native American wholesalers indicate this legislation will cost 1000 jobs, we feel the legitimate retail industry will probably add 2000 jobs when this legislation is signed.

SMALL BUSINESS FINANCING FOR IMPROVEMENTS AND DEVELOPMENT
AFPD supports bills that would create and expand small business tax incentives. The incentives are targeted at helping small businesses invest in new capital and hire workers. Small businesses create 60 percent to 80 percent of all new jobs. However, less than 1 percent of the $862 billion stimulus bill was dedicated to small-business tax relief. Since enactment of the stimulus bill, more than 3.3 million jobs have been lost and unemployment stands at an unacceptable rate of 9.7 percent with millions more underemployed or out of the job market.

Financing (Capital) – Banking Impediments
Many small businesses want and need to upgrade their facilities, while others want to expand and buy or build additional outlets. While the banks were bailed-out, the money has not been used to help established, proven businesses meet their credit needs. In fact, some banks are calling-in mortgages that are five or six years old, with every payment made in a timely manner. But the merchant cannot get another bank to lend any money. Established, proven, veteran businessmen should be given reasonable consideration for credit lines that will enable them to continue and survive in these economic times. A review of bank practices in this regard is required.

GREENHOUSE GAS REGULATIONS
This plan seems to be an attempt to circumvent the Cap & Trade Legislation that seems to be stalled in the Senate. Restrictions can be enforced by Executive Order using the US EPA. The problem revolves around the fact that the EPA’s proposed enforcement standards are based on conclusions achieved by using a mixture of known air pollution control technologies and unknown, future technologies. More scientific evidence is necessary before implementation of any such legislation.

INCREASED ETHANOL BLENDED GASOLINET
The US EPA is promoting the use of increased blends of gasohol, using ethanol percentages in excess of 15%. The technology outlining the affect of 15% + blends of Gasohol is unproven. Underground storage tanks, piping, hoses, nozzles, and dispensers have not been adequately tested by prolonged use of Gasohol blends beyond 10%. Many new vehicle owners’ manuals specifically state that use of motor fuel with more than 10% ethanol voids the power plant warranty. At this stage of the evolution of the rule, the retailer is caught in the middle: between proposed EPA requirements and possible uninsurable liability for damage to motorist vehicles. Not to mention, the potential for damage to the underground fuel delivery system. More long-term testing of ethanol blends in excess of 10% is necessary before enforcing any rules..

HR 2057 - MOTORISTS RIGHT TO REPAIR ACT
Independent garages need the OEM manufacturers to share “trouble” or “reactivation” codes with them so the motorist has a choice of where he take his car to obtain repairs. Now, in many cases, the only choice available to the motorist is the new car dealer, which could be miles away, or not open as many hours as the independent garage. The motorist should have multiple options available to him for vehicle repairs.

FEDERAL FUEL TAX ISSUES
While no bill is pending, any cost added to retail price of fuel creates alarm in the minds of motorists. Acknowledging that the Highway Trust Fund is mostly depleted, any Federal Excise Tax on Fuel should be dedicated to the building and repair of the infrastructure, and not reappropriated to “other” non-highway projects.