It appears President Obama has passed his first test with the American people. In modern political times, the media and political analysts have paid a great deal of attention to a new President’s first 100 days in office. Now that the Obama Administration has been measured for this first benchmark, it’s time for us to analyze the numbers.
Polling on President Obama’s personal attributes and measuring the population’s feelings about his job performance — and that of Congress — is interesting, sure, but it does not tell us much about the effect of the new administration and government on the convenience and petroleum retailing industry. To assess their impact, it’s much more instructive to look at the policies that have already been enacted and those under consideration. Below is a quick recap of what 2009 has yielded so far:
- Federal Tobacco Excise Tax: The law (Public Law 111-3) increases the federal excise tax on tobacco products, notably a 62-cent-per-pack tax hike on cigarettes, to pay for low-income children’s health-care program. NACS Position
- Pay Discrimination: The law (Public Law 111-2) eliminates the statute of limitations governing when an employee can bring a claim against a current or former employer alleging sexual discrimination in compensation. NACS information
- Credit Card Fees: H.R. 627, the Credit Cardholders’ Bill of Rights Act of 2009, seeks to protect the interests of consumers from abusive practices of the banks and credit card companies. The bill passed the House on April 30 by a vote of 357 to 70. Consideration of the legislation created multiple opportunities to highlight the negative effects of high interchange rates and abusive treatment of merchants by credit card companies and their member banks. NACS Position
- Remote Sales of Tobacco: H.R. 1676, the PACT Act, would increase enforcement of age verification and state excise tax collection for Internet sellers of tobacco products. The bill was passed by unanimous consent out of the House Judiciary Committee on April 29. NACS Position
- Commodities Markets: Legislation (H.R. 977) to regulate speculation in the commodities futures market to ensure that non-commercial traders cannot exert undue influence over the price of commodities, such as crude oil. The bill was passed by the House Agriculture Committee and is pending before the House Financial Services Committee.
- FDA Tobacco: Legislation (H.R. 1256) introduced in the House would grant the Food and Drug Administration with the regulatory authority over the manufacture and retailing of tobacco products. The bill passed by a vote of 298-112 and is awaiting Senate consideration. President Obama has indicated he will sign it into law. NACS Position
- LIFO Repeal: The House and Senate budget bills include provisions to eliminate the use of LIFO. The president’s budget also included the repeal LIFO, which is a textbook accounting method used to determine both book income and tax liability. The term refers to the assumption made by a business in establishing the value of its inventories. NACS Position
- Card Check Unionization: Legislation has been introduced in both chambers that would eliminate the requirement for a secret ballot election to unionize a workplace. House bill (H.R. 1409) has 226 sponsors (218 votes necessary to pass the bill) while the Senate bill (S. 560) has stalled because the needed 60 senators will not support the legislation, ensuring a successful filibuster. President Obama supports enactment of the bill. NACS Position
- Menu Labeling: S. 558 and H.R. 1398, the Labeling Education and Nutrition (LEAN) Act, have been introduced in both chambers to require the display of nutritional information in foodservice venues with 20 or more locations. The bills provide options for how to display the information and set a national uniform standard, therefore eliminating the possibility of confusing and conflicting state laws. The MEAL Act (not yet introduced) requires the nutritional information to be displayed on menus and menu boards. It allows for states to enact further regulations. The LEAN Act actually provides the consumer with more nutritional information than the MEAL Act. NACS Position
- Climate Change and the LCFS: Representatives Henry Waxman (D-CA) and Edward Markey (D-MA) released a draft bill, the American Clean Energy and Security Act of 2009, in March to combat carbon emissions and limit pollutants. A hearing was held over four days in April with upward of 65 witnesses to discuss the bill and make the case for a cap and trade system to limit carbon emissions. Of note to the industry is the provision in the bill known as the Low Carbon Fuels Standard (LCFS), which would require transportation fuels to meet reduction standards of lifecycle greenhouse gas emissions starting in 2023.
- Rest Area Commercialization: The topic of rest area commercialization will likely come up during the reauthorization of our nation’s surface transportation programs, which will begin this summer. NACS will be working with other businesses that have locations just off the highway system to help reserve this competitive market, which has proven beneficial for both consumers and businesses. NACS Position
- Health Insurance Reform: President Obama and leaders in the House and Senate have vowed to enact comprehensive health-care reform. Uninsured and underinsured Americans are the focus of most policy proposals. Healthcare expenditures in 2006 totaled $2.1 trillion and that number is expected to double by 2017. NACS Position
- Food Safety: As the nation faces more frequent food safety concerns and more serious episodes of food-related illness, Capitol Hill is offering a variety of proposals to make the food supply even safer. Most efforts center on giving the Food and Drug Administration more funding and more authority in the areas of safety plans, inspections, standards and recalls. NACS will be focusing on the influence these possible new regulations would have on retailers — especially those engaged in their own foodservice businesses.