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Election Gains & Fallout

NACS Governmental Relations team sheds light on what might be ahead for c-stores
ALEXANDRIA, Va. -- Republicans now control the House of Representatives and gained additional seats in the Senate. While these are reasons to be optimistic on several fronts, don't expect a complete dismissal of one of the largest concerns facing business owners today, said. NACS' Government Relations team.

During a webinar Wednesday, the team outlined some possibilities, including those centered around what Julie Fields, manager of government relations, called the "heart of the debate for election": health care.

The debate focused on repealing and replacing the health-care [image-nocss] bill. Sixty votes would be necessary to pass controversial provisions in the Senate, while the Democrats still maintain a majority. While Fields said to expect a lot of talk around health care, she added, "Even if the Republican House is able to pass or repeal and replace the health-care bill, it will largely be a symbolic gesture, because a repeal will stand absolutely no chance in the senate and certainly no chance to get past President Obama."

She said Congress would likely work on resolutions or a budget reconciliation bill to amend the health-care bill instead.

The webinar also focused on NACS government-related plans on some industry-specific concerns:

Menu Labeling. A recently passed menu-labeling law requires foodservice establishments with 20 or more locations to post calorie counts on menus and provide additional nutritional information to consumers about menu items. NACS is working with the U.S. Food & Drug Administration (FDA) to determine the best course for convenience stores to comply, and a final rule is expected from the FDA around mid-March 2011.

Tobacco. NACS has just filed amicus briefs in three cases challenging the validity of the Prevent All Cigarette Trafficking (PACT) Act. The PACT Act will help close the doors on tax evasion on Internet tobacco sales and ensure appropriate age verification, Fields said. "We think it's very important the law be implemented and that Internet sellers be held to the same standards that we are."

Labor Relations. According to Corey Fitze, NACS director of government relations, there is currently talk that Democrats will try to push through Card Check, a proposed law that would change how unions are allowed to organize workers. "I don't believe they have votes or time to actually push this through," he said. Also being considered is pushing through the Re-Empowerment of Skilled and Professional Employees and Construction Tradesworkers (RESPECT) act, which would redefine who is considered management. Fitze said NACS is also following the National Labor Relations Board to see what ruling they come up with, as they have a lot of power to push a pro-union agenda over the next two years.

Tax Credits. NACS is expecting a one-year extension of the ethanol tax credit at 36 cents per gallon, according Fitze. A one-year extension of the biodiesel tax credit is also possible. "However, it is NACS' opinion that a one-year extension is not enough to bring many producers back into production," Fitze added.

E15. The decision by the U.S. Environmental Protection Agency (EPA) to let retailers sell E15 for vehicles made after model year 2007 ties to a 2007 renewable-fuels standard, in which congress decided the country needs to use 36 billion gallons of renewable fuel by 2023. John Eichberger, NACS vice president of government relations, said using 10% of ethanol in every gallon of gasoline in the nation only gets to about 13 billion to 14 billion gallons. E15 is considered a stepping stone toward the larger goal, but retailer equipment must be certified by national testing laboratories as compatible to E15. Only a couple of dispensers are currently compatible. Eichberger said NACS is working on specific legislation to have existing equipment re-evaluated to allow retailers to enter a new fuel market without replacing all equipment.

Interchange Fees. Eichberger said NACS anticipates the banks and credit-card companies will make efforts to "water down the provisions" of this year's efforts in interchange fees. NACS will work to make sure "legislators don't roll back the progress we've already made," he said. NACS also is tracking actions at the U.S. Department of Justice on the ability to bring competition between card brands and within card brands allowing for lower-cost forms of plastic payments.

The NACS legislative committee will meet in December to outline top legislative priorities and define its workload for the upcoming year. Members were encouraged to get involved by visiting www.NACSonline.com/grassroots.

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