LEGISLATIVE
ISSUES – Spring 2007
The following is
a list of legislation currently pending before the 212th State
Legislature. If passed, these bills will have a significant
impact on the food distribution industry. This list was compiled after
a thorough review of the NJFC bill tracking system and discussions
with several legislators. While it is impossible to definitively determine
what pieces of legislation the New Jersey Legislature will review and
take action on, it is likely that a number of these bills will be heard
and or voted on during this session.
Consumer Affairs
Manufacturers Rebates
S-2313 (Sweeney) A-3539 (Burzichelli)
Position: Oppose
Impact: The
committee substitute makes it an unlawful practice for retailers to
advertise merchandise for sale indicating the availability of a manufacturer’s
rebate by displaying the net price of the item, unless the amount of
the manufacturer’s rebate is provided to the consumer by the
retailer at the point of sale. <<TOP
RFID
A-3996 (Watson-Coleman)
Position: Oppose
Impact: Assembly
Majority Leader Watson-Coleman’s bill would require retailers
using Radio Frequency ID (RFID) tags to post notices at the point of
sale informing customers that RFID is used; attach labels to merchandise
which contain RFID tags and disable, detach or destroy RFID tags upon
completion of a sale.<<TOP
Shopping Cart Wipes
A-4109 (Stender)
Position: Oppose
Impact: A-4109
would mandate supermarkets provide customers with sanitation wipes
to clean shopping carts. NJFC continues to oppose mandates on the
industry and most retailers throughout the State already provide
this convenience to customers as an incentive to shop at their stores.
Additionally, NJFC is concerned that this bill unfairly singles out
food retailers and ignores every other object New Jerseyans come
in contact with on a daily basis.<<TOP
Raw Produce Origin Labeling
A-4110 (Stender)
Position: Oppose
Impact: This
bill would require retail food stores to identify the state of origin
or the country of origin of raw produce sold to consumers by either
labeling the produce or by displaying the information near the item.<<TOP
Do Not Mail List
A-4119 (Stender)
Position: Oppose
Impact: This
bill would institute a “Do Not Mail” list and would prohibit
mail solicitation to any resident whose mailing address is included
on the list.<<TOP
Labor
Paid Family Leave
S-2249 (Sweeney) A-3812 (Albano)
Position: Oppose
Impact: This
bill extends the State’s current temporary disability insurance
(TDI) system to provide workers with family temporary disability
leave benefits to care for members of the worker’s family unable
to care for themselves. The bill allows 12 weeks of leave to participate
in providing care for a family member suffering a serious health
condition, participate in psychological comfort and arranging third
party care for the family member and care for a child during the
first 12 months after the child’s birth.
NJFC members are concerned that
the tax on employee wages to pay for family leave benefits may
get passed through to business due to labor contracts.<<TOP
Plant Closing Pre-Notification
S-472 (Sweeney) A-1044 (Van Drew)
Position: Oppose
Impact: As amended,
A-1044 requires employers with 100 or more employees to provide 90
days notice if the employer terminates 50 or more employees in any
30-day period. The bill defines a “termination of operations” as
the permanent or temporary shutdown of a single establishment or
of one or more facilities or operating units within a single establishment.
The bill provides an exception for a termination of operations made
necessary because of a court order, fire, flood, natural disaster,
national emergency, act of war, civil disorder or industrial sabotage.
Employers that fail to provide notifications
pursuant to the bill will be required to provide generous severance
pay to terminated employees of one weeks pay for each year of employment
per day the employer missed the notice requirement.<<TOP
Loss Prevention
E-fencing
A-3866 (Cryan)
Position: Support
Impact: This NJFC Loss Prevention Committee initiative would require
internet auction sites to disclose a seller’s information when
merchandise is offered for sale on an auction site. The bill also places
restrictions on selling multiple retail gift cards and is cross referenced
with federal pseudo-ephedrine sales restriction laws and the State
Organized Retail Theft law, which were both recently enacted. <<TOP
Shopping Cart Notification
A-3925 (Cruz-Perez)
Position: Support
Impact: This NJFC Loss Prevention Committee initiative would require
local and county governments to notify retailers of the location of
stray shopping carts and allow three business days to retrieve the
carts, before imposing fines on retailers. The bill was unanimously
passed by the General Assembly.<<TOP
ORT Task Force
A-3992 (Cryan)
Position: Support
Impact: NJFC
supports the creation of an Organized Retail Theft Task Force established
by this bill. The Task Force’s mission is to examine the advantages
and disadvantages of instituting various measures to counter losses
from ORT in New Jersey and would consist of seven members including
a representative from the New Jersey Food Council. The bill requires
the Task Force to report its progress to the Governor and the Legislature
annually, and to issue a final report within three years.<<TOP
Environment
Plastic Container Recycling
Enhancement Act
S-556 (Smith) A-2850 (McKeon/Panter/Gordon).
Position: Oppose
Impact: This
bill, as passed by the Senate, would require rigid plastic containers
manufactured, sold or offered for sale in this State to consist of
at least 25% recycled content by January 1, 2008.
Exemptions from the bill include: (1) small businesses that employ
fewer then 50 full-time employees; (2) rigid plastic containers that
contain personal care products, which are defined as hair or skin care
products that are available for retail sale without a medical prescription;
(3) beverage containers; (4) containers used for toxic or hazardous
products and (5) containers which contain drugs, medical devices, cosmetics,
food medical or infant formula as defined by the “Federal Food,
Drug and Cosmetic Act.”<<TOP
Plastic Bag Recycling Mandate
A-3994 (Stender/Greenstein)
Position: Oppose
Impact: This
bill requires retailers larger then 10,000 square feet to establish
in-store recycling programs for customers to return plastic bags
to the store. Plastic bags would need to include a statement reminding
consumers to return the plastic bag to the retailer for recycling.
Also, retailers would be responsible for the transportation of returned
plastic bags to recycling facilities and would be responsible for
maintaining records describing the collection and transport of bags
for a minimum of three years. Lastly, the bill requires supermarkets
to make reusable bags available to the consumer for purchase. <<TOP
Food Issues
Trans Fat Ban
S-2265 (Karcher)
Position: Oppose
Impact: This
bill, sponsored by Senator Karcher, seeks to eliminate the use of
trans-fat in foods prepared and served in restaurants in New Jersey.
This proposal will do nothing to address the underlying problems
causing obesity and instead represents the next round of attacks
on the food industry. NJFC continues to recommend that the Legislature
consider the solutions presented by the State Obesity Prevention
Task Force, which has studied this issue and developed a comprehensive
report for lawmakers in New Jersey.<<TOP
Nutritional Labeling
S-2264 (Buono)
Position: Oppose
Impact: This bill
requires chain food establishments to provide nutritional information
for any food or beverage item listed on its menu. Under the bill, nutritional
information would be required to be listed adjacent to each food or
beverage item on a standard printed menu and would include the total
number of calories, grams of saturated and trans fat, grams of carbohydrates
and milligrams of sodium per serving. <<TOP
Commonsense Consumption
Act
S-1088 (Adler/Bucco) A-2902 (Cohen)
Position: Support
Impact: This
bill would limit the liability of food producers, manufacturers,
packers, distributors, carriers, holders, sellers, marketers and
advertisers for claims arising out of weight gain or obesity. The
purpose of this bill is to protect companies from frivolous lawsuits
and individuals who sue because their personal diet choices resulted
in weight gain or obesity related health problems. <<TOP
School Nutrition Policy
S-1218 (Turner) A-883 (Stanly/Stender/Conaway)
Position: Oppose
Impact: Recently
signed into law, this initiative codifies existing State regulations
and unfairly blames the food industry for rising obesity levels by
placing stringent restrictions on the types of foods that can be offered
in elementary, middle and high schools. Specifically, the bill would
ban foods of minimal nutritional value, food and beverages listing
sugar as the first ingredient and all forms of candy from being served
in schools. <<TOP
Federal Issues
Card Check
H.R.800 (Rep. George Miller)
Position: Oppose
Impact: NJFC
strongly opposes this bill, which will create federal law recognizing
unionization of a workplace by Card Check method. The bill would
take away a worker’s right to a federally supervised private
ballot election when deciding whether or not to join a union. Under
this system, a worker’s vote is made public to the employer,
the union organizer and co-workers. <<TOP
Minimum Wage
President Bush has signed a $2.10 increase in the federal minimum hourly
wage as part of the supplemental Iraqi war funding bill. As written,
the increase would take place in three steps over a 26-month period.
The initial increase from $5.15 to $5.85 would be effective 60
days after signage and the second increase to $6.55 would go into
effect a year later. The third and final increase would take effect
12 months later.
Final approval of a Minimum Wage increase at the federal level will
have a harmful impact on business in New Jersey, which is still reeling
from a State imposed Minimum Wage hike to $7.15 per hour that took
effect in October of 2006. The federal proposal will increase the wage
ten cents higher then the State minimum, thus raising the cost of doing
business in New Jersey. In addition, NJFC is concerned that legislators
in New Jersey may revisit the State Minimum Wage and increase it above
the federal standard due to the high cost of living in New Jersey. <<TOP
REGULATORY ISSUES
Dairy Issue
Last summer, the N.J. Department of Agriculture held two Emergency Hearings
to explore ways to help New Jersey dairy farmers cope with low raw milk prices.
In September, the Department filed what they believe to be a combination
of short-term stabilization and long-term market adjustments.
In the short
term, the Department ordered a fuel adjustment add-on be assessed on all
Class 1 milk transactions between NJ dairy producers and NJ processors.
In addition, NJ processors were to pay NJ producers a premium for “rBST-free” milk,
a dairy product that does not contain added hormones to increase production.
Long-term action consisted of revised and expanded reporting requirements
for Store Records and Reports for all entities licensed to deal milk in New
Jersey
such as cost data, profit margins, prices charged and prices paid for milk
and milk products. The Department intends to capture financial information
and develop a pricing system throughout the market chain and enforce existing
regulations.
The fuel adjustment surcharges and
rBST-free milk premium were to take effect October, 2006 but
an appeal to the Superior Court of New Jersey,
Appellate
Division, by the New York State Dairy Foods, Inc., delayed the Department’s
implementation. The New York State Dairy Food Inc., comprised of New Jersey
and New York dairy processors, opposed the Department of Agriculture's
Order. The result was a mixed bag ruling. The Court agreed with the challengers
and rejected the Department's directive to impose a premium on rBST free
milk.
The regulation would have forced processors to pay farmers additional money
for hormone-free milk. However, the Court upheld the Department's directive
to allow a fuel adjuster surcharge to move forward and collect specific
production
and processing data from any entity that handles or sells milk products.
The fuel surcharge and data collection of Store Records and Reports were
expected
to go into effect April, 2007. The Department initiated an Emergency Order
to collect pricing information and impose the Fuel Add-On Surcharge.
NJFC
outright opposed the demand for data collection by the Department on
Store Records and Reports. This demand is an intrusion on proprietary
company
information
which could be subject to the Freedom of Information Act. Also, the cumbersome
requests on so many dairy products are impractical and unobtainable.
Furthermore,
the Department requires stores and dealers to go back one year to April
2006 records and submit data by April 1, 2007. This is unrealistic. Last,
according
to dairy consultants Herebin & Company, it would cost stores around
$6,000 to $8,000 and dealers $5,000 to $10,000 to attempt to develop
a reporting system
to comply with this regulation. These are steep costs for compliance.
New
Jersey agricultural officials want this information to further develop
policies that will control milk prices and manipulate the New Jersey
dairy system. The dairy system is ruled by the Federal Order system.
It is a
cyclical process that works. Manipulation of this system that mandates
price controls
or surcharges will create a severe imbalance. The New Jersey Food Council
does not support any policy that manipulates the system or creates
vulnerabilities or violations of Interstate Commerce laws and
the Dairy Compact Clause.
The challenges of the New Jersey
dairy farmer are real just as it is with other segments of
the food
chain. The reality of a demanding marketplace
is evident
in all sectors of food distribution whether it impacts the New Jersey
farmer,
processor or the independent grocer. Economic pressures, labor costs,
energy charges, fierce pricing competition, property taxes and market
factors
have contributed to a severe downsizing from the farmer to the local
supermarket.
The most significant factor that
has compounded the problem for today’s
farmer and retailer is that consumer habits have changed and milk
is no longer the beverage of choice.
NJFC members responded immediately
to our call for action and took
our opposition to the Governor’s Office. Members effectively
articulated industry’s
position that the burden of Data Reporting was unrealistic and the
attempt to collect pricing data would be an intrusion on proprietary
company information.
The Governor’s Office agreed with Food Council members and
decided to outright dismiss the retail Data Collection Reporting,
indefinitely delay the
dealer/process Data Collection Reporting, but did extend the fuel
add-on surcharge for six months. Any action to address an rBST free
premium is off the table
at this time.
The last minute abandonment of the Data Collection Reporting for
all sectors of the dairy chain is a significant victory for NJFC
members.
We thank
all the members who participated in this process and helped us
realize this important
success for NJFC members.
It was agreed that NJFC and our
members will work with the New Jersey Department of Agriculture
to develop
more prudent proposals,
evaluate
alternative
solutions being considered in other states, and support state
appropriations that do
not manipulate the marketplace.
NJFC believes efficient and incentive
programs provide a tremendous benefit to the farming community.
A band aid approach that was
originally recommended
by the Department, only creates unintended inequities in the
dairy system, manipulates the Federal Order and opens the door
to constitutional
challenges
that only hurts dairy farmers in the long run. <<TOP
Unit Pricing Parity
Everyday, supermarkets ensure compliance with Unit Pricing
regulations designed with the consumer’s best interest
in mind. Unfortunately, consumers are not offered these same
protections when shopping for identical items at other retail
outlets that traditionally have not been in the business
of selling food. This distinct competitive advantage for
new retail channels that do not conform to equal enforcement
of current Unit Pricing laws harms New Jersey consumers.
NJFC supports draft legislation
that would amend current Unit Pricing regulations to recognize
the entrance of non-traditional
food retailers into the market and the overall evolution
of the food industry. We look forward to working with the Division
of Consumer Affairs to create an even playing field while
protecting
consumers regardless of where they shop. <<TOP
Identity
Theft Proposed Regulation
Employer Health Care Reporting
Governor
Corzine has signed Senate Bill 539 which directs Commissioners
of DHS and DHSS to prepare annual report on Access to Employer-Based
Health Insurance for certain employed recipients of State health
assistance programs. While this bill does not require any action
on businesses or their employees, it may have the effect of
creating a false or misleading impression as a result of the
way it was drafted. NJFC lobbied to have additional questions
added to the bill to clarify the data and give a more accurate
reflection of the analysis. <<TOP
Unfortunately the sponsor was not
receptive to the amendments. However, during the promulgating
of rules and regulations,
which is currently underway, NJFC has been working to submit
comments to the Commissioner of Human Services. We have again
urged that additional questions be asked during the information
gathering phase before the final report is made available
to the Legislature and the Governor. <<TOP
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