STATE ASSOCIATIONS FOCUS ON ENERGY, LABOR AND TAX RELIEF

MARTIN SCHNEIDER

STATE ASSOCIATIONS HAVE BEEN BUSY THIS YEAR LOBBYING FOR THE PASSAGE OF BILLS ON ENERGY, LABOR AND TAX RELIEF, AMONG OTHER ISSUES.

WHILE DETAILS OF THE SPECIFIC MEASURES VARY FROM STATEHOUSE TO STATEHOUSE, THE OVERALL ISSUES, AS DESCRIBED BY ASSOCIATION EXECUTIVES INTERVIEWED BY SN, ARE LARGELY THE SAME.

ENERGY

With power shortages a fact of life in California, and threatening elsewhere, conservation has become a major issue for supermarkets.

The California Grocers Association, Sacramento, has focused nearly all of its legislative efforts toward dealing with the state's energy shortage. The association has promoted efforts to have the state's supermarkets reduce energy consumption by 10% during crisis situations, and will continue efforts throughout the year.

"Many of our members have gone forward, cutting energy by 10% or more at all times, which has given us a lot of credibility at the state capital when we address this issue," said Peter Larkin, CGA president.

Larkin also told SN the CGA is lobbying for a bill that will secure mobile energy sources for supermarkets in times of crisis.

Another bill the association is promoting will regain direct access to energy suppliers for supermarkets, he said.

"Energy conservation will play an increasing role in the association towards the summer months, as we try to avoid major blackouts," Larkin added.

Also concerned about power shortages, the Massachusetts Food Association, Boston, is promoting 11 energy-related bills. The most pressing bill regards energy deregulation, a hot issue among many state associations.

Like many state associations, the MFA is making attempts to procure the best energy costs for its members. By negotiating for wholesale energy prices as a large commercial group, the association said it hopes to gain lower rates for supermarket operators in the wake of deregulation.

The Connecticut Food Association, Hartford, also has created an Energy Aggregation program to pool together retailers to get the best price on energy needs now that deregulation is a reality in the state, according to Grace Nome, CFA president.

LABOR ISSUES

The U.S. Congress is likely to consider increasing the minimum wage this year, and supermarket executives and their associations are eager to express their opposition to the measure.

Many state associations are hard at work pressing members to explain to their lawmakers why increasing the minimum wage would be bad for the economy in general and the supermarket industry in particular.

Associations are also actively involved in trying to dissuade legislators from raising the minimum wage at the state level. In Illinois, the state House of Representatives has passed a bill raising the minimum wage to $6.15, according to Brian Jordan, president of the Illinois Food Retailers Association, Lombard. Jordan fears that the increase would cripple businesses in the state.

The IFRA is working to stop the state Senate from passing the "job-killing legislation," which would close off job opportunities to individuals with the lowest skill sets, said Jordan.

Bills to reform workers' compensation, another labor issue of importance to supermarket executives, have been introduced into many state legislatures this year. In California, Larkin told SN, "We are working hard to energy-related bills. The most pressing bill regards energy deregulation, a hot issue among many state associations.

Like many state associations, the MFA is making attempts to procure the best energy costs for its members. By negotiating for wholesale energy prices as a large commercial group, the association said it hopes to gain lower rates for supermarket operators in the wake of deregulation.

The Connecticut Food Association, Hartford, also has created an Energy Aggregation program to pool together retailers to get the best price on energy needs now that deregulation is a reality in the state, according to Grace Nome, CFA president.

LABOR ISSUES

The U.S. Congress is likely to consider increasing the minimum wage this year, and supermarket executives and their associations are eager to express their opposition to the measure.

Many state associations are hard at work pressing members to explain to their lawmakers why increasing the minimum wage would be bad for the economy in general and the supermarket industry in particular.

Associations are also actively involved in trying to dissuade legislators from raising the minimum wage at the state level. In Illinois, the state House of Representatives has passed a bill raising the minimum wage to $6.15, according to Brian Jordan, president of the Illinois Food Retailers Association, Lombard. Jordan fears that the increase would cripple businesses in the state.

The IFRA is working to stop the state Senate from passing the "job-killing legislation," which would close off job opportunities to individuals with the lowest skill sets, said Jordan.

Bills to reform workers' compensation, another labor issue of importance to supermarket executives, have been introduced into many state legislatures this year. In California, Larkin told SN, "We are working hard to make sure some much-needed reform is placed into the workers' compensation system before letting any benefits increases go through the Legislature."

The Connecticut legislature also has a workers' compensation bill before it, a measure the CFA is currently fighting. According to Nome, the bill would "tack on huge costs for businesses."

The Ohio Grocers Association, Columbus, is also involved in workers' compensation issues. "We are trying to maintain the quality group rating plan Ohio has. The Bureau of Workers' Compensation here is trying to tinker with it, but we will oppose those changes," said Tom Jackson, OGA president.

In Illinois, IFRA is supporting a bill that would prohibit balance-billing, according to Jordan. If successful, he explained, workers would no longer be responsible for medical costs in job-related injuries.

"Illinois is the only state in the nation that still allows a physician to bill a patient for services not paid for under the Workers' Compensation Act. An injured worker that has filed a workers' compensation claim should not be responsible for paying for services rendered as a result of an injury that occurred at the workplace," Jordan said.

TAXATION ISSUES

Like their national counterparts, state associations are seeking tax relief. Dave McCorkle, president, Pennsylvania Food Merchants Association, Camp Hill, noted that the PFMA is seeking a reduction in the estate tax in Pennsylvania.

The Minnesota Grocers Association, St. Paul, is lobbying for a reduction in the commercial property tax rates, according to Nancy Christensen, MGA executive director. The rates, she explained, are unusually high throughout the state.

"We have a real good shot at making progress here, as we have surpluses and the governor has said he is for tax reform," Christensen said.

Other associations are trying to ensure that no new taxes are instituted at the state level. "We're watching real close to see if they will hit us with any additional taxes," said James Smotherman, president of the Alabama Grocers Association, Birmingham.

In Illinois, IFRA is supporting two tax relief bills in the state Senate. One lowers the minimum contribution rate employers must pay in unemployment insurance taxes to 0.1%, while another creates an alternative tax credit for businesses that expend a significant amount in research and development, according to Jordan.

TOBACCO AND ALCOHOL REGULATIONS

State associations are also supporting bills to help clarify regulations regarding alcohol and tobacco sales.

In particular, retailers do not want to be held responsible for sales of alcohol and tobacco products to minors, and their state associations have taken up the cause, supporting legislation that lessens retailer responsibility.

"We have a piece of legislation in our House of Representatives asking for a tax credit for the purchase of electronic age verification devices. We have another legislative proposal which would bring about a shared responsibility between minors who attempt to purchase tobacco products and retail stores," McCorkle said of the situation in Pennsylvania.

"If we are going to have tobacco licenses in California, we'd like to see them issued with a uniformity and with training to help keep tobacco out of the hands of minors," Larkin said.

In Ohio, OGA is trying to raise the level of commissions for retailers who operate a state liquor store inside their supermarkets. "Getting this in the budget will be a big challenge," Jackson said, noting that the state budget has been cutting its expenditures and subsidies for liquor stores.

Other associations said they will continue their efforts to gain permission to sell alcohol in supermarkets. In Minnesota, the state association, according to Christensen, has been lobbying and will continue to lobby the state Legislature to allow wine sales in supermarkets.

OTHER CONCERNS

State associations also said they expect to voice their opinions about the reapportionment of congressional districts based on the results of the 2000 census. "There may be some switching around that can affect our grassroots efforts," said Smotherman of the Alabama association.

Associations have also been hard at work around the country attempting to kill "bottle bills," which many feel are detrimental to business. "We killed our bottle bill, which would have cost retailers plenty," Smotherman said.

"Killing this new bottle bill will be a major fight in Connecticut," Nome said, adding that the new bill in the state extends its reach to more types of recyclable packaging than previous bills.

Barry Scher, legislative director of the Virginia Food Dealers Association, Richmond, said his organization is also supporting prescription drug reform.

"Something needs to be done, as inner-city areas that have high levels of individuals who depend on Medicare will suffer if reform is not passed," Scher said.

In Ohio, Gov. Bob Taft has promised a 30% discount on prescription drugs for seniors, according to Jackson. But this plan, he explained, involves putting most of the costs on the backs of retailers, who already are responsible for nearly 79% of the cost of prescription drugs.

"There really isn't any room left for prescription discounts. We need the manufacturers to help us out if we are going to meet the governor's promise," Jackson said.