This was a busy week in Washington for NACS. On Wednesday, the NACS Government Relations and NACSPAC Committees were in town for their winter meetings and to establish the association’s strategy for 2007.
Following the meeting, the retailers went to Capitol Hill to take their agenda to Congress. Meeting with leaders in both the House and Senate, Democrat and Republican, NACS members pushed forward to raise awareness regarding credit card fees, to explain how the petroleum markets work and how price gouging legislation would affect honest retailers, and to urge Congress to oppose giving the Food and Drug Administration regulatory authority over tobacco retailing. Such retailer-legislator meetings are critical to the political process.
On Tuesday, NACS testified before the House Science Committee’s Subcommittee on Energy and Environment in support of legislation (H.R. 547) directing research to improve the compatibility of alternative fuels, like E-85, with existing petroleum storage infrastructure. If successful, the expense incurred by many retailers to convert their systems to these new fuels could be largely eliminated. The legislation also seeks to develop an accurate and affordable sulfur test for diesel fuel that would improve retailers’ ability to ensure compliance with ultra low sulfur diesel regulations. The next day, the Science Committee approved this legislation without objection and it is scheduled for consideration by the House of Representatives next week.
Meanwhile, the U.S. Senate was very close to passing a minimum wage increase with some small business tax relief attached.
The leaders in both the House and Senate have not yet figured out how to deal with the differing versions of their respective minimum wage increases. Usually they would convene a conference committee to “hammer” out their differences between the two bills, but in this case they are having problems getting around the Senate version, which violates a constitutional requirement that all tax measures originate in the House. This can be waived by the House but the Democratic Leadership in this chamber want a clean wage increase without small business tax relief. Looks like it’s the usual game of politics with the minimum wage – not sound policy decision making.
On Wednesday, the Federal Deposit Insurance Corporation (FDIC) extended for an additional year its moratorium on applications from companies seeking to establish their own banks, known as industry loan corporations (ILC). NACS is a member of a coalition that opposes ILC formations due to the competitive advantage such business would acquire in the process. The additional year gives Rep. Barney Frank (D-MA), chairman of the House Financial Services Committee, more time to move legislation to prohibit company-owned ILCs unless at least 85 percent of its revenues are generated from financial activities.
Have a great weekend.
John Eichberger
Vice President, Government Relations