State Advocacy

In today’s highly competitive business environment, changes in state 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 state and local level affecting retailers. Our team effort approach also gives members an opportunity to take an active and direct role in communicating with their state legislatures on issues of concern.

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

AT THE STATE LEVEL ...

COMMERCIAL ACTIVITY TAX
Ohio’s Commercial Activity Tax (CAT) continues to be a source of revenue depletion for those involved in the petroleum industry across the state. AFPD continues to work with the legislature and state agencies to have issue of the CAT as applied to petroleum reexamined.

Improper business practices concerning collection of CAT were reported to the Ohio Department of Taxation by AFPD. However, Ohio law did not provide for penalties to be levied against a supplier for the illegal act of directly invoicing a retailer for the cost of the CAT. AFPD advocated and was successful in having a new law enacted which mandates a penalty for companies who illegally itemize the CAT as described in the Ohio Revised Code. For a first time offender, the individual or business responsible for sending the invoice will receive a written notification from the Department of Taxation. Each subsequent violation of the law will result in a $500 penalty.

STATE CREDIT CARD and CASH AT THE PUMP LEGISLATION
AFPD is working with state legislators on legislation addressing two issues important to our members. The yet to be introduced bill would allow for a retailer to offer discount prices for gasoline purchases not made with a credit card and would require credit card companies to disclose to the merchant any changes to their contract. The legislation is currently being circulated for cosponsorships - AFPD expects the legislation to be introduced soon.

EVAPORATION ALLOWANCE
AFPD aggressively sought preservation of the evaporation allowance for retailers after the Governor’s version of the transportation budget attempted to eliminate it completely. Through numerous meetings with State Senators and Representatives, AFPD fought hard not only to have an evaporation allowance restored but also to fairly split the allowance 50/50 between the retailers and jobbers, which currently did not occur under Ohio law. In the end, AFPD was successful in achieving our objective. The enacted version of the transportation budget includes a 1% evaporation allowance, split 50/50 between the retailer and the jobber.

SB 213 - WORKERS’ COMPENSATION GROUP RATED PROGRAM
Continued reduction of Group Rating Discount has resulted in severe impact on Ohio Businesses through rising premiums. AFPD is an active member of the Ohio Workers’ Comp Group Rating Coalition which seeks to prevent further reductions in the discount and other changes which may be harmful to AFPD’s members participating in the group rating program. AFPD supports SB 213 that requires the maximum credibility not be reduced below 65% and it eliminates the break even factor.

OHIO LOTTERY COMMISSIONS
There have been no increases in Retail Agents commission since mid 1990s. AFPD is seeking an increase in retail agent Commissions. AFPD has been successful in having member retailers be appointed to the newly formed Ohio advisory council.

RETAIL TOBACCO & LICENSE FEES
As a means to produce much needed revenue to the State, the Governor’s office and state legislators sought an increase in licensing fees for wholesale and retail distributors of tobacco products in the state budget. While AFPD and other affected organizations were unable to have the fee increase lessened or eliminated due to the economic troubles Ohio faced, AFPD worked hard to ensure that the fees were applied uniformly for all retailers.

AFPD also continues to oppose any and all proposals that would allow local governments to impose an additional tax on tobacco products.

HB 272, HB 273, HB 417, HB 137 & SB 62 - LIQUOR PERMITS RESTRICTIONS
AFPD is actively involved in the discussions on the following pieces of legislation that deal with changes to Ohio liquor laws. All of these bills remain pending in the early stages of the committee process.

• HB 272 (S. Williams – D) seeks to increase the fee for C-1, C-2 and C-2x liquor permits to $2,500 per location.
• HB 273 (S. Williams –D) prohibits the transfer of ownership or location for C-1, C-2 and C-2x liquor permits if the proposed change is within a municipality or unincorporated part of a township that is already saturated with the proposed type of permit.
• HB 417 revises appeal procedures for refusal to issue, renew, transfer a retail liquor permit by limiting appeal process and providing cities more time to object. Bill also requires permit holders that violate liquor laws to file names and address of their employees with the Ohio division of liquor control commission.
• Senate Bill 62 (Turner – D) would prohibit the Division of Liquor Control from issuing a retail liquor permit or enter into an agency contract if the proposed location is within 500 feet of a school, church, library, public playground, or township park. (HB 137 (Weddington – D) is a similar bill introduced in the House which would increase the limit to 1,000 feet)

AFPD strongly opposes any legislation that seeks to further restrict a retailer’s ability to obtain a liquor permit.

SB 3 - SMALL BUSINESS
SB 3 makes regulatory changes to require state agencies to prepare a special analysis that describes the impact of administrative rules on small businesses and creates a small business person in state government to help ease regulatory burdens on these vital Ohio employers. The bill passed unanimously in the Senate and is currently pending in the House State Government committee. The House also passed a similar measure, HB 230.

Ohio Senate President Bill Harris and Speaker of the House Armond Budish recently announced the development of bicameral working groups to help both chambers reach agreement on important legislation, such as SB 3 and HB 230. A priority bill for the Senate Majority Caucus, President Harris is hopeful that the working group will help move this issue forward. AFPD is supportive of a solution that helps to ease regulations on our small businesses.

FUEL QUALITY TESTING
AFPD continues to voice its opposition to any county by county fuel quality testing program proposals and efforts to make retailers responsible for paying for fuel testing. AFPD was successful in eliminating Fuel Quality Testing language from the state budget and has remained active in conversations regarding the introduction of any new piece of legislation addressing this issue.

INCREASED FEES FOR SCALES-WEIGHTS AND MEASURERS LANGUAGE
The Department of Agriculture, through the Governor’s version of the state budget, sought new and increased fees for the use of specific types of scales. AFPD was involved in many discussions with the Department and state legislators and actively opposed the fees and other language that provided for expansive and discretionary rule making authority for the Department of Agriculture Directors. Both the fees and the rule making language were eliminated from the enacted version of the budget.

POINT OF SALE METERS
AFPD opposes efforts by county auditors to operate their own weights and measures program at the point of sale. If the counties were to have the ability to implement such a program, AFPD fears that retailers would likely end up paying for it through a fee or tax levied by the County – with the complication of state and local government maintaining conflicting regulations.

AT THE FEDERAL LEVEL ...

S.1212 and H.R. 2695 - CREDIT CARD FAIR FEE ACT
AFPD supports this legislation giving retailers the ability to negotiate interchange and related fees with credit card companies and banks. This legislation also eliminates anti-competitive card company rules and increases fee disclosure to the Federal Trade Commission, Federal Reserve and consumers.

H.R. 2057 - MOTORISTS RIGHT TO REPAIR
The need for “Right to Repair” legislation has become a necessity in order to protect the rights of car owners to decide where and how they have their vehicles are serviced, whether at a new car dealer or an independent service facility. Car companies lock out access by car owners and independent repair shops to important and accurate vehicle information, thus limiting who car owners can choose to repair their cars. The “Right to Repair” ensures that the person who bought the car, and not the car company, can decide where that vehicle is repaired and maintained. Right to Repair has become more important than ever as motorists seek new neighborhood repair shops because of dealerships closing in their area.

H.R. 2454 - CLIMATE BILL
AFPD opposes the American Clean Energy and Security Act (H.R. 2454) and feels this bill would put the petroleum industry at a significant disadvantage under future regulations. The bill’s allocations of emissions allowances to various industries are adverse to retailers. The bill provides the oil and gas industry with a minimum number of emissions allowances, far below the amount necessary for the industry to reach compliance without exceptional cost. AFPD is concerned that Congress will impose a regulatory scheme on the petroleum industry that will increase the cost of refining and force refiners to reduce production to comply with the requirements. This will heavily influence the cost of fuel to
convenience stores and their customers.

S. 560 - THE EMPLOYEE FREE CHOICE ACT
AFPD opposes the Employee Free Choice Act, (EFCA) S. 560. AFPD members must continue to contact their members of the Senate to vote NO on cloture and NO on S. 560.

FEES ON ALCOHOL RETAILERS
The President proposes the imposition of $300 per retail facility that sells alcoholic beverages to help pay for the operations of the Alcohol and Tobacco Tax and Trade Bureau (TTB). AFPD opposes the attempt to resurrect the now-defunct Special Occupational Tax (SOT) on alcohol that was eliminated three years ago. AFPD is working with a national coalition to defeat the proposal.

TAXES OF FOOD AND BEVERAGES
AFPD is a member of the Americans Against Food Taxes, a new coalition of large and small businesses to oppose efforts to impose new taxes on beverages and food, such as a tax on juice drinks and soda currently being considered by some in Congress.

TRADE AREA PRICING
AFPD opposes major oil companies usage of Trade Area Pricing to develop pricing zones which prevents small retailers from being competitive and at the same time harms the general public in these areas.

AFPD keeps working hard for you!

Whether it is educating your employees on proper procedures for alcohol sales, testifying at Congressional hearings, or developing purchasing programs to save you money, AFPD is here to assist the independent retailer. Here is a brief rundown on some of the projects that we have been working on over the past month:

CAT Tax discussions
AFPD staff, board members and AFPD Ohio lobbyists met to discuss Commercial Activities Tax issues, Bureau of Workers’ Compensation rates, open enrollment, group discount, and successorship issues. The meeting also addressed credit card fee legislation, zone pricing, open supply, and Lottery commissions.

Ohio Workers’ Compensation
AFPD attended a meeting in Columbus with the Ohio Coalition regarding Workers’ Compensation Group Rated Program.

Visiting members and non-members
AFPD staff continues to visit active members and non-members on a routine basis to discuss their concerns and issues. Conducting these visits gives AFPD insight into the issues that most affect the industry.