MPCA NEWS
|
ONLINE
|
573.635.7117
phone • 573.635.3575
fax • www.mpca.org • ©
MPCA 2010
MARCH 9, 2010
1. The 2010
2. Lobby Day Is Wednesday,
4/7/10 - Please Register Today! Nothing You Do Is More Important For Your
Business, Your Industry & Your Association!
3. Important Liquor License
Information For MPCA Members With
4. NACS Industry Update
Luncheon: 5/27/10 in
5. UST, Piping &
Equipment Seminar: 6/21/10.
6. Former MPCA Member Erving
Toellner Passes Away.
7. Federal Legislative &
Regulatory Updates.
A. Changes
To USDOT Safety Rating Program Under CSA 2010 Initiative.
B.
Biodiesel Tax Credit In Jobs Bill.
C. Senator
Advises “Cap & Trade Is Dead”.
D. Please
Participate In ULSD Survey.
E.
Petroleum Marketing Practices Act (PMPA) Decision.
F. More
Pushback On EPA’s Greenhouse Gas Ruling.
G.
Democrats Ready To Move Healthcare.
8. Save Money On Credit Card
Fees, Workers Comp/Health/Property/Liability Insurance & Employee
Background Checks! Check Out MPCA’s Member Benefits Program Today!
1. THE 2010
A. TIME-FRAMES & MAJORITIES. The 2010 Missouri Legislative Session commenced at noon on Wednesday, 1/6/10, and will end at 6:00 PM on Friday, 5/14/10. Spring Break runs from Friday, 3/5/10, through Sunday, 3/14/10.
Republicans hold a 23-11 majority over Democrats in the Senate and an 87-71 majority in the House (5 vacancies).
B. LEGISLATION. MPCA must take clear and consistent positions on all contentious issues so that staff can be effective when lobbying and so that our message is consistent, clear and concise.
I. Stealing $40
Million From PSTIF To Balance The Budget. As you
know,
SB 1000 (Sen. Green) and HB 2305 (Rep. Kelly) have been filed as vehicles for a massive fund sweep, including $40+ million from PSTIF.
Click here to download the PSTIF Fact Sheet prepared by Carol Eighmey, PSTIF Executive Director, which shows that:
a. PSTIF has a negative equity and is by definition insolvent because liabilities exceed assets. As of 1/1/10, PSTIF had $84 million in total assets and $109 million in total liabilities.
b. State law requires that the load fee be used for cleanups only. Using PSTIF funds to plug holes in the State budget would violate the purpose of the load fee and PSTIF and would violate the public trust.
c. PSTIF is self-funding through the $20 load fee and does not receive any general revenue or other state or federal funds.
d. PSTIF funds should not be used to pug holes in the state budget because state law makes PSTIF and not the state solely responsible for the PSTIF liabilities.
e. There are very serious economic consequences if PSTIF funds are swept including real property transactions will be reduced to a trickle, jobs will be lost in the environmental clean-up industry, the PSTIF load fee may have to be increased, etc.
f. PSTIF recently reduced the load fee from $40 to $20. If PSTIF funds are swept, a load fee increase will have to be considered.
►What You Need To Do Right Now. Please go to item “E” below and call all of the State Senators and Representatives which represent your home and all of your locations and urge them to strongly oppose sweeping any PSTIF moneys to balance the state budget.
Feel free to mention any of the reasons contained in the attached PSTIF Fact Sheet, and feel free to fax the PSTIF Fact Sheet directly to your State Senators and Representatives.
II. SJR 29 “Fair Tax”: Taxing Consumption (Sales) & Not Productivity (Income).
►Background. As was reported in previous Newsletters, several Constitutional amendments - HJR 56 (Rep. Emery), HJR 71 (Rep. Koenig), SJR 29 (Sen. Purgason) & SJR 37 (Sen. Ridgeway) - have been introduced which propose to eliminate the current individual and corporate income, sales and use taxes and replace them with an enhanced and broadened state sales tax on taxable services and property.
Please note that these proposals would apply the enhanced and broadened state sales to taxable property and services – accounting, landscaping, legal, dentist, babysitting, etc.
Click here to review MPCA’s 2/3/10 opposition memo to the Senate Committee on Government Accountability & Fiscal Oversight (GAFO).
►Update & Good News. SJR 29 was debated for a short period of time in the Senate on 3/4/10 right before the Legislature recessed for Spring Break. The very good news is that the substitute bill offered on the Senate floor by sponsor Sen. Chuck Purgason (SS SCS SJR 29) addressed MPCA’s main concern – it exempts “motor fuel purchases subject to an excise tax” from the enhanced and broadened state sales - but it still leaves some important questions unanswered that need to be fleshed-out in the near future.
►SS
SCS SJR 29 Facts.
1. SJR 29 is a Constitutional amendment that would require a vote of the people in November 2010.
2. On 1/1/13, the state corporate income tax, state corporate franchise tax and state bank tax would be repealed. Starting on 1/1/13, the state individual income tax would be reduced by 20% per year until fully eliminated on 12/31/17. On 6/30/13, the state sales and use tax would be repealed.
3. On 7/1/13, an enhanced and broadened state sales tax on taxable services and property would be imposed and capped at no more than 7%.
4. SJR 29 is designed to be “revenue neutral” – the revenue lost by repeal of the income, corporate, bank, sales and use taxes is replaced by the enhanced and broadened state sales tax on taxable services and property.
5. On 6/1/13, all state and local sales tax exemptions in effect are repealed.
6. The only state sales tax exemptions allowed in SJR 29 are:
a. Intangible personal property;
b. Property for which the tax authorized under this section has been collected due to a prior taxable transaction;
c. Property purchased to be a component part or ingredient of new personal property to be sold at retail;
d. Any property or service purchased by a person engaged in a trade or business, including agriculture, to be used in such trade or business for resale, to produce, provide, render or sell taxable property or services, for purposes of appreciation or the production of income, or in furtherance of other bona fide business purposes;
e. Tuition and fees paid to an accredited institution of higher education for educational services;
f. Tuition and fees paid to any elementary, secondary, or vocational school for educational services;
g. Motor fuel
purchases subject to an excise tax;
h. Insurance premiums;
i. Monetary donations, and purchases of tangible property, on behalf of, for, or by charitable organizations exempt from taxation under federal law;
j. Any sale which the state of
7. The Legislature can enact additional state sales exemptions upon a two-thirds vote in both chambers.
8. Between 7/1/13 and 6/30/18 and possibly beyond, the Legislature may adjust the enhanced and broadened state sales tax rate to ensure revenue neutrality as the individual income tax is phased-out at 20% per year.
9. Local political subdivisions are required to recalculate their local sales tax rates – presumably downward - to ensure revenue neutrality.
10. The Legislature is authorized to pass a law to subsidize the poor from the increased state sales tax since the poor spend a greater portion of their funds on goods and services.
►SJR
29 Unanswered Questions.
1. There appears to be several conflicting provisions in SJR 29 which could be interpreted to mean that the state sales tax rate is not capped at 7%.
2. Does the 7% state sales tax rate apply to the excise taxes on tobacco and alcohol resulting in a double tax or a tax-on-a-tax?
3. Retailers are currently allowed to keep 2% to help offset the costs of collecting and remitting the current state sales tax. SJR 29 contains no sales tax collection fee for retailers.
4. Since all state and local sales tax exemptions are repealed, fuel purchases subject to sales tax would now have to pay higher state sales tax rate.
►The Next Step. SJR 29 will be debated in the Senate and possibly the House over the next several weeks but most political pundits do not anticipate that SJR 29 will pass the Legislature and be on the November 2010 ballot.
MPCA believes that the proponents of SJR 29 are using these debates as a dress rehearsal and are likely to try and get a similar proposal on the 2012 ballot through the initiative petition (IP) process. Stay tuned.
C. MPCA CAPITOL REPORT. Click here to view the updated MPCA Capitol Report which tracks all the 2010 legislation that is of interest to MPCA.
Please take the time to regularly and carefully review this very important document, and do not hesitate to contact me with any questions or concerns.
D. VIEW LEGISLATION ONLINE. To view 2010 legislation, visit the following websites:
Click here to view House Bills.
Click here to view Senate Bills.
E. CONTACT YOUR ELECTED OFFICIALS. To contact your State Representatives and State Senators, visit the following websites:
Click here to contact your Representatives.
Click here to contact your Senators.
F. HOUSE AND SENATE COMMITTEES. To view 2010 State House & Senate Committees and Committee members, visit the following websites:
Click here to view the House Committees.
Click here to view the Senate Committees.
2. LOBBY DAY IS WEDNESDAY, 4/7/10
- PLEASE REGISTER TODAY! NOTHING YOU DO IS MORE IMPORTANT FOR YOUR BUSINESS,
YOUR INDUSTRY & YOUR ASSOCIATION!
A. WHY YOU SHOULD ATTEND. Nothing you do for your business, your industry and your Association is more important or has a greater political impact than your active participation in MPCA’s Annual Lobby Day event. If you attend only one MPCA event in 2010, this should be it.
MPCA’s single greatest strength is our grassroots impact, and there is no better way to illustrate our strength then by having a huge turnout on Lobby Day.
All MPCA members - especially Board members, Marketer members, C-store members, Associate members and Partner members - should attend and should bring along key employees, family members and prospective members. The more bodies walking the Capitol halls the better!
B. WHEN, WHERE, AND HOW TO
REGISTER. MPCA’s Annual Lobby Day will be held on Wednesday, April
7, 2010, at 11:00 AM at the Capitol Plaza Hotel,
Please click here for a registration form to register yourself, your key employees, your family members and any prospective members.
There is no charge to attend MPCA’s Annual Lobby Day. However, we need to know if you will be attending so that we can order an appropriate number of meals and have your name badge printed and ready for this event.
**Important Date Correction** The 2010 Lobby Day registration form distributed at PACE contained a typo. As stated above, the correct date for the 2010 Lobby Day is Wednesday, 4/7/10.
C. PLEASE SCHEDULE APPOINTMENTS ASAP & BRING BUSINESS CARDS. Please take the time to immediately contact all of your Senators and Representatives (contact links are below) that represent your home and all of your locations and schedule an appointment with them for sometime on 4/7/10 after our Lobby Day luncheon concludes around 1 PM.
Make sure you bring plenty of business cards to hand out and leave with your elected officials.
To contact your State Representatives and Senators, visit the following websites:
Click here to contact your Representatives.
Click here to contact your Senators.
3. IMPORTANT LIQUOR LICENSE
INFORMATION FOR MPCA MEMBERS WITH
Currently, c-store liquor licenses in
A Wallis dealer, Harinder Singh, is attempting to get the
ordinance modified so that any and all qualified c-store applicants in the
I have advised Mr. Singh to hire legal counsel and a
lobbyist who specializes in
The purpose of this
email is to alert you to this effort and to seek, on behalf of Mr. Singh &
Wallis Co., your input and support. Many voices speaking as one can accomplish
much more than a lone voice shouting at the wind.
If interested, please reply to – ron@mpca.org; awallis@mail.wallisco.com; & harinder@rasoi.com - so that Wallis Co. and Mr. Singh can begin a coordinated and broad-based effort to get the ordinance changed so that fairness and uniformity rule the day.
4. NACS INDUSTRY UPDATE LUNCHEON:
5/27/10 IN
The NACS Industry Update & Luncheon will be held in
Rob Forsyth, President, FKG Oil Company dba Moto Mart;
Don McNutt, President, Midwest Petroleum Company;
Lynn Wallis, President & CEO, Wallis Companies;
William Fleischli, Executive Vice President,
Ronald J. Leone, Executive Director,
Click here for more details including how to register.
5. UST, PIPING & EQUIPMENT
SEMINAR: 6/21/10.
The Missouri Department of Natural Resources is hosting a panel of underground storage tank, piping and equipment contractors, installers, manufacturers, owners and regulators to discuss numerous timely issues including equipment options, monthly tank monitoring, and inspections.
The “Missouri Waste Control Coalition Conference” will be
held on June 21, 2010, at the Lodge of the Four Seasons at the Lake of the
Ozarks,
Click here for more information or visit http://www.mowastecoalition.org
Click here to register. http://www.mowastecoalition.org/conferencesregis.html
6. FORMER MPCA MEMBER ERVING
TOELLNER PASSES AWAY.
MPCA received the following on 3/3/10 from Dennis Toellner, Erving Toellner’s son.
“Erving H. Toellner, 80, of
Erving Herman Toellner was born in
In addition to his wife, he is survived by his children and
their families, Ron and Judy Toellner (Bethany and Brad), of
Memorial contributions are suggested to the American Stroke Association or the American Heart Association.”
7. FEDERAL LEGISLATIVE &
REGULATORY UPDATES.
I. PMAA. MPCA recently received the following from the Petroleum Marketers Association of America (PMAA).
A. “CHANGES TO USDOT SAFETY RATING PROGRAM UNDER CSA 2010 INITIATIVE. The U.S. DOT is preparing to finalize a new system for determining motor carrier safety ratings. The new program, known as Comprehensive System Analysis (CSA 2010), replaces the current SafeStat data collection system.
Click here to download PMAA’s Regulatory Report on this important topic.”
B. “BIODIESEL TAX CREDIT IN JOBS BILL. Last week, Senate Majority Leader Harry Reid (D-NV) and Finance Committee Chairman Max Baucus (D-MT) introduced Jobs bill II (H.R. 4213), which is currently being considered on the Senate floor. Included in Jobs bill II is the vital one year extension of the one dollar per gallon biodiesel blender’s tax credit. The credit will also be available retroactively for biodiesel produced during the credit's lapse. The biodiesel tax credit expired Dec. 31, 2009.
PMAA and member associations are also urging the Senate to include a one-year
extension of the National Oilheat Research Alliance (NORA) authorization in
Jobs II and have been conducting a targeted grassroots campaign to communicate
to the Senate the urgency to include NORA in Jobs II.
Many of you have contacted your Senators numerous times to ask that they extend
the biodiesel tax credit. Still, it is worthwhile to contact your Senators once
again at 202-224-3121 and remind them that passage of a biodiesel tax credit
one year extension is needed immediately.”
C. “SENATOR ADVISES "CAP & TRADE IS DEAD". According
to the Washington Post, in a recent meeting with prominent environmental
lobbyist, Senator Lindsey Graham (R-SC) uttered five words which PMAA hopes
will be engraved in stone "cap and trade is dead." In 2009, the House
of Representatives passed cap and trade legislation which, if enacted, would
have severe repercussions for gasoline and diesel marketers and their
customers. "The Waxman/Markey cap and trade bill would have pushed
gasoline over four dollars a gallon and likely over five dollars," said
The pronouncement by Senator Graham is significant because Graham has been
working closely with Senator John Kerry (D-MA) and Senator Joe Lieberman (I-CT)
searching to write climate legislation that moderate Senators could support.
Both Kerry and Lieberman have been highly visible in their effort to curb
greenhouse gases, which they believe are the primary source of climate change.
Many scientists agree that greenhouse gases contribute to climate change but
often disagree on exactly how much carbon emissions contribute.
PMAA has been very opposed to the Waxman/Markey cap and trade bill because it
unfairly burdens consumers of liquid fuels such as gasoline, diesel and heating
oil. Senator Graham indicated that he and Senator Kerry plan to introduce
legislation in March that will apply different carbon controls to individual
sectors of the economy. While many experts believe global carbon restrictions
are needed, the recent global conference in
The cap and trade concept has become more controversial in recent months
because of its potential for massive bureaucracies and credit trading
influence. Giving Wall Street a new avenue to speculate on carbon credit value
is not attractive to many legislators.
While the new Kerry/Lieberman/Graham legislation will likely impose unnecessary
price increases on liquid fuels, the measure will be better than cap and trade.
PMAA will report more when additional details of the legislation are released.”
D. “PLEASE PARTICIPATE IN ULSD SURVEY. PMAA is urging petroleum marketers to participate in a national survey designed to expand industry understanding of issues involving the storage of Ultra Low Sulfur Diesel (ULSD). The Petroleum Equipment Institute (PEI) announced the implementation of a brief online survey that will help identify marketers who have concerns about USLD storage. Concerns might include accelerated corrosion (rust), unexpected operational problems, gasket or seal problems, and/or premature failure of equipment and parts. Please take the short survey even if you have not had any experience with problems listed above.
Your answers will provide the petroleum industry important information to
determine how the industry should respond. Please take a moment to answer the
five question survey at your earliest convenience.
Please click here for the survey. The deadline is
April 6.”
II. SIGMA. MPCA received the following on 3/5/10 from the Society Of Independent Gasoline Marketers of America (SIGMA).
E. “PMPA DECISION. On March 2, 2010, the Supreme Court determined that a franchisee cannot file suit under the Petroleum Marketing Practices Act (“PMPA”) for constructive termination if it signed up for a renewal of its franchise. In the case, Mac's Shell Service v. Shell Oil Products, the Court considered under what circumstances a service station operator could bring suit against an oil refiner or distributor for "constructive termination" under the PMPA. Several gas station franchisees filed a lawsuit alleging that the franchisor had constructively terminated their franchises and constructively failed to renew their relationships by modifying the terms of their lease agreements. Essentially, the franchisees were arguing that the terms of the franchise agreement had changed so radically when terms were renewed, the original agreement was constructively terminated. But the Court decided that if you sign up for another term, you haven't been terminated, even if the terms of the agreement have changed.”
F. “MORE
G. “DEMOCRATS READY TO MOVE HEALTHCARE. Congressional Democrats are completing a revision of comprehensive health care legislation that could garner enough votes to pass both chambers — most likely through expedited budget reconciliation procedures. This type of legislation would only require a simple majority of votes, fifty-one in the Senate and 2/3 of the House. Democrats were working on revised language that was being written jointly by House and Senate lawmakers and White House officials, but it is not yet clear what the final legislation will include. House leaders aim to bring a final healthcare measure to the floor for a vote before Congress adjourns for its two-week spring recess, which begins March 26.”
8. SAVE MONEY ON CREDIT CARD FEES,
WORKERS COMP/HEALTH/PROPERTY/LIABILITY INSURANCE & EMPLOYEE BACKGROUND
CHECKS. CHECK OUT MPCA’S MEMBER BENEFITS PROGRAM TODAY!
A. EXECUTIVE SUMMARY. MPCA members can support MPCA and save money on a variety of necessary goods & services including workers comp insurance; health, property & liability insurance; employee criminal background checks; and credit card fees.
B. WHAT IT’S ALL ABOUT. MPCA members who take advantage of MPCA’s member services listed below accomplish 3 key objectives.
First, they save money and thus increase their company’s
profitability. Second, they help generate a very important source of “non-dues
revenue” for MPCA which helps to keep your MPCA membership dues as low as
possible. Finally, this “non-dues revenue” stream provides MPCA with the tools
we need to protect and advance your legislative and regulatory interests in
Truly a “win win” scenario for all involved!
C. WHO IS ELIGIBLE. Every MPCA member service is available to every MPCA member - marketer members, c-store members, associate members, etc.
D. SPECIFIC MEMBER SERVICES. The following is a list of member services offered by or through MPCA:
1. Employment Reports: Criminal Background, Credit, Liquor Control, Driver/Motor Vehicle & More.
2. Workers’ Compensation Insurance.
3. Health Insurance, Property & Liability Insurance, & Financial Protection Services.
4. Credit Card Processing.
5. Office Supplies & Equipment.
6. Overnight Delivery.
7. Industry Publications.
8. Age Verification Materials.
E. HOW TO GET FURTHER INFORMATION. Click here to access all the information you need regarding MPCA’s member services.
MPCA STAFF
Ronald J. Leone, Esq., Executive Director, ron@mpca.org
Karen Antweiler, Asst. Executive Director, karen@mpca.org
Angie Rickard, Administrative Assistant, angie@mpca.org