The House and the Senate both returned from their annual Independence Day work period (they used to call them "recesses"). We're guessing the folks on Capitol Hill think the words "district work period" sound more official.

As they get back to work in D.C., both houses of Congress are quickly gearing up to look at a couple vital issues to our industry: tobacco and interchange fees. We also have some good news on temperature compensation for retail fuel dispensers, and the Department of Labor has come out with their official minimum wage posters.

Credit Card Interchange
NACS is encouraged that the House Judiciary Committee Anti-Trust Task Force has scheduled a hearing on Thursday, July 19 to look into credit card interchange. The Senate Judiciary Committee held a similar hearing last year. We will continue to keep up legislative pressure on the credit card companies and their banks.

FDA Tobacco Regulation Update
The Senate Health, Education, Labor and Pensions (HELP) Committee has scheduled a mark up on S. 625, the Family Smoking Prevention and Tobacco Control Act, next week, July 18.

Introduced by HELP Committee Chairman Ted Kennedy (D-MA) and Senator John Cornyn (R-TX), the bill – if passed – will give the FDA regulatory authority over the tobacco industry, both the manufacturing and retailing sectors. NACS is opposed to the legislation in its current form for three main reasons. The legislation should incentivize responsible retail practices not just punish; states are best able to regulate retailers, not a new federal bureaucracy; and tobacco should be treated and regulated equally no matter who sells it. No retail format should be exempt from enforcement of the regulations and such exemptions should be removed from this legislation.

Federal Cigarette Excise Tax Increase
This week the Senate Finance Committee has reached a tentative agreement to reauthorize the State Children's Health Insurance Program (SCHIP). In this bipartisan agreement there is an increase in the federal tobacco tax of $35 billion to pay for expansion of the program. This is a 61-cent per pack increase in the federal excise tax on tobacco, which brings the total federal tax up to $1. NACS is opposed to an increase in the federal excise tax on cigarettes for two main reasons. First, the proposed increase in the excise tax on cigarettes is likely to increase tax evasion, and second, an increase in the federal excise tax on cigarettes is likely to increase crime at retail outlets. The official bill should be released sometime today, and the committee is scheduled to mark up the bill on July 17.

Weights and Measures Votes on Temperature Compensation
The National Conference on Weights and Measures (NCWM) on Wednesday voted to not allow states to authorize temperature compensation at retail fuel dispensers. The debate was vigorous and the vote was extremely close. According to NCWM rules, each of the two voting chambers of the conference must approve such proposals by a super-majority of 27 votes. The House of Delegates voted in favor of the change by 27-13 while the House of Representatives failed to garner the 27 votes needed, in a 23-16 vote.

One important note about these votes was the nature of the proposals under consideration. Earlier proposals debated throughout the year would have amended Handbook 44 to authorize the use of temperature compensation at retail outlets on a voluntary basis. This proposal would have been extremely powerful, considering 18 states automatically adopt any NCWM changes to Handbook 44. However, the proposal which fell shy of enactment this week, would have amended Handbook 130, which does not automatically change the laws in any state.

NACS will continue to work with its colleagues in the industry to inform the NCWM members, members of Congress and reporters about the negative implications that any required or authorized temperature compensation would have on both retailers and consumers. NACS encourages its members to reach out to their weights and measures officials to establish a dialogue on this matter. The majority of the conference this week voted to move forward to authorize temperature compensation, which means retailers have a lot of educating to do between now and the next meeting of the NCWM next summer.

Minimum Wage Posters
New federal minimum wage posters are now available from the U.S. Department of Labor (DOL). After Congress and the White House passed minimum wage increases, the posters are now available for viewing, downloading and posting. As you likely know the wage will increase in three steps: to $5.85 per hour effective July 24, 2007; to $6.55 per hour effective July 24, 2008; and to $7.25 per hour effective July 24, 2009.

Each convenience and petroleum retailer is subject to the Fair Labor Standard Act's minimum wage provisions. Under these provisions, you must post – and keep posted – a notice explaining the act in a conspicuous place in all of your establishments so that employees can easily read it. Additional posters and compliance assistance materials will be available in the coming weeks at the DOL's website: www.dol.gov.

Have a good weekend,
Chris Tampio, senior director, government relations