Newsletter 1

RSGDA December 2015

ATTORNEY'S CORNER Recently, it has come to the attention of your Association that our members may have a serious chink in their armor of protection against theft of monies from their business accounts, a weakness that could leave them holding the bag for any losses and without any recourse against their banks. Ordinarily, under the banking laws the accounts of individuals have many protections against theft of funds from their bank accounts. Banks are held to a high standard by law when it comes to safeguarding the funds of individual depositors. However, not many small businesspeople are aware that their business accounts do NOT have the same level of protection that individual depositors have. Under the Uniform Commercial Code ("U.C.C.") the banks are only required to protect their business accounts with "commercially reasonable" security protocols. But with cyber crime running rampant these days, just how secure is "commercially secure"? Not necessarily very secure we're afraid. There have been reports that some criminal hackers have been able to so penetrate and procure passwords and other information from small businesses that they even can access your calendar and arrange to have your funds transferred to their accounts when you are away from your business and hence unaware of such illicit activity. Banks have been sued over such losses, which can range from thousands to more than a million dollars. Unfortunately, the standard of "commercially reasonable" security is so broad that it is almost impossible to win such a lawsuit. What to do? The best protection is to educate your managerial staff to such risks and make them aware of the danger these cyber criminals pose. Forewarned is forearmed. You might also arrange with your bank that funds cannot be transferred from your account over a certain amount without the authorization of two people. In addition, you might be able to designate to your bank a single dedicated computer in your office from which all money transfer requests must originate. It's true that these precautions may seem like a real nuisance to busy business owners. Unfortunately, the benefits of the internet also brings certain dangers which must be guarded against. Failure to do so could destroy your business. It already has done so to some. Don't let this happen to you!

The contents of this column are not intended as legal advice. I give no legal advice without an appointment and interview with a client.

INSIDE THIS ISSUE 1 Attorney’s Corner

2 New UST Rule Could Affect Some States Right Away

2-3 Governor Cuomo Announces Statewide Effort to Crack Down on Skimmers at Gas Pumps

3 Shell Issues Alert On Skimming Fraud

3-4 Cybersecurity: A Scary Subject For Petroleum Marketers

4 Costs Of Transition To Chip Card Technology

4-5 New Chip (Without) Pin Cards Create Confusion

5 Highway Bill Passes House

5-6 EPA Proposes Nationwide Self-Sealing Valve Requirement For Small Containers Of Motor Vehicle Refrigerant

6 Safety Agency To Rule On Requiring Emergency Braking Systems In Commercial Vehicles

6 President Obama Kiboshes Keystone Pipeline

6 President Obama Strikes Automatic Enrollment From ACA

6-7 Electric Cars Biggest Threat To Retail Fuel Market Share: Fuels Institute

7 FDA Acts Against Retailers For Illegal Sales To Minors

7 Pennsylvania Considers Raising Tobacco Age

7-8 Tobacco Companies Raise Cigarette Prices

8 E-Cigarettes Banned In Checked Bags

8-9 House Committee Marks Up Bill Limiting The Definition Of Joint Employer

9 Legislation Favors Big-Box Retailers In Sale Of Beer, Wine

9 Man Accused of Buying 800-Plus Gal Fuel

With Stolen Credit Card Is Arrested

9 DMV Record Retrieval

9 Attention Inspection Stations

REPAIR SHOP & GASOLINE DEALERS ASSOCIATION (585) 423-9924 -- (716) 656-1035 – rsgda@nysassrs.com – www.nysassrs.com

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New UST Rule Could Affect Some States Right Away The EPA's newly revised underground storage tank rule immediately introduced marketers in up to 12 states to some new requirements -- if their states didn't have those requirements already. Those states are the 12 that have UST programs that aren't approved by the EPA. In such states, effective Oct. 13, 2015: 1) Ball float valves in vent lines no longer can be used to meet the overfill prevention requirement at new installations and when existing flow restrictors are replaced; and 2) Testing in accordance with the EPA's new rule must be done after a repair. The 12 states are Alaska, Arizona, California, Florida, Illinois, Kentucky, Michigan, New Jersey, New York, Ohio, Wisconsin and Wyoming. Marketers in those states are required to follow two sets of regulations: state regulations and the federal rule, said David Fialkov, vice president of government affairs and regulatory counsel for the National Association of Truck Stop Operators. The 38 states with EPA-approved programs, however, have up to Oct. 13, 2018, to implement those requirements if they haven't done so already. Marketers in those states follow only one set of UST rules -- those issued by the state-administered EPA-approved program. "It's very important for tank owners to know whether they operate in a state that has EPA-program approval or whether they don't because that distinction could have real practical consequences for when they're going to have to comply with certain components of the new EPA rule," said Fialkov. The EPA's new rule also has several additional requirements that must be implemented by Oct. 13, 2018 in all states. For example, one of those requirements is the 30-day walk-through inspection. --Vincent Taylor, vtaylor@opisnet.com Copyright, Oil Price Information Service Governor Cuomo Announces New Statewide Effort to Crack Down on Skimmers at Gas Pumps Governor Cuomo announced the beginning of a new, statewide cooperative effort to crack down on illegal credit/debit card skimmers at gas pumps across New York, seeking to end criminals’ ability to empty the bank accounts of their victims. With card data theft incidents on the rise across the country, the State Department of Agriculture and Markets’ Weights and Measures Bureau is conducting New York’s first-ever training and sweep of gas station dispensers across the state to proactively protect consumers and gas station owners. Agriculture and Markets staffers will train county weights and measures officials to spot skimming devices in their communities. “Credit card fraud is a nightmare that could have a long-lasting impact on a victim's finances and credit rating,” said Governor Cuomo. “With this aggressive new action, we're aiming to crackdown on this fraud before it starts."

Skimmers are devices attached to ATMs or credit card processing devices to steal the credit card and PIN numbers of customers. ATMs and open point-of-sale terminals, such as gas pumps, are targets for criminals, ranging from local thieves to international crime syndicates. The credit scoring company FICO estimates about 30 percent of all credit card fraud happens at point-of-sale locations such as gas pumps. Government and private research sources indicate that the cost to consumers of point-of-sale card fraud is between $3 billion and $6 billion a year. This spring, a mass inspection of more than 7,500 gas stations in Florida found 103 credit card skimmers in use. The Weights and Measures Bureau developed a training module, which it used to educate its own supervisors and inspectors along with county-level weights and measures staff in how to identify the skimming devices. Those inspectors spot-checked approximately 500 gas dispensers in the last several weeks across the state. A local weights and measures inspector spotted a skimmer in a gas dispenser in Niagara Falls, while an Agriculture and Markets weights and measures specialist found one in a dispenser in Rochester. A subsequent investigation by the Monroe County Sheriff’s Department and the Rochester Police Department turned up four more skimmers at gas stations in Rochester, Scottsville, Wheatland, and Fairport. There are approximately 42,000 gas dispensers in New York State. “Preventing gas pump fraud is not part of the mandate for our Weights and Measures Bureau, but our department’s leaders felt they had the expertise to help protect New Yorkers from this growing scam. I believe we will be able to work together with county bureaus to help prevent and deter some of this fraudulent activity,” said State Agriculture Commissioner Richard A. Ball. Staff members are trained to look for various types of skimming devices: • Pig-tailed skimmers installed at the card reader inside

the dispenser, the most common type of skimming device;

• False keypads or card readers installed on the outside of the dispenser;

• Bluetooth enabled skimmers that transmit stolen information over short distances.

If a device is identified, Weights and Measures staff members will alert the gas station owner and local police. “These credit card skimmers cause immense problems for people. This is a natural addition to our skill set and we are looking forward to working together with the counties to help pull the plug on criminals who take advantage of innocent people,” said Mike Sikula, Director of the Weights and Measures Bureau, who helped develop the training program. Experts offer several ways in which people can spot skimmers and help keep themselves from becoming victims of fraud. Check the gas pump or ATM carefully for signs of a skimmer, such as: • A keypad that’s raised above the surface of the device;

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• A card scanner that seems loose, which is a sign of a skimmer that’s snapped on top of the actual card scanner;

• A tiny camera attached to the top or sides of the device, sometimes with temporary lighting, to capture credit card numbers and PIN entries on video.

• Other ways consumers can protect themselves when using their debit or credit cards include:

• Use a credit card for purchases whenever possible because of its superior fraud protection;

• If using a debit card, use it as a credit card if possible so a PIN number does not have to be used;

• When inputting a PIN number, cover the keypad with your free hand.

If a consumer suspects a device on a gas pump, they should report it to the police. Consumers should check their bank accounts regularly for signs of fraud and report compromises immediately to police and their credit card provider. Shell Issues Alert On Skimming Fraud Shell has issued a warning to branded marketers that thieves are placing skimmers outside gasoline dispensers on card readers, inside the store card swipe machines and inside the fuel dispensers. The Shell Fraud Prevention Team is urging marketers to notify technicians and site management to conduct additional inspections for skimmers, which are small devices that siphon payment card account information. If skimmers are discovered Shell says: • Do not touch the device. • Contact the local police. • Place an out-of-service bag over the dispenser nozzle

and leave the dispenser alone. • Take pictures of the device and dispenser. • Do not leave the dispenser panels open and block off the

dispenser with security cones, if possible. • Run a receipt for the last transaction on the dispenser to

establish a timeline of use. • Have the station save all video from the security

cameras to potentially help identify criminals and their vehicles.

Shell also is telling station operators to make their sites a "hard target." The company advises retailers to replace the universal dispenser keys with site specific keys; use quality video monitoring equipment; and place security seals tape across dispenser access points that indicate potential tampering. --Donna Harris, dharris@opisnet.com Copyright, Oil Price Information Service Cybersecurity: A Scary Subject For Petroleum Marketers Cybersecurity is “one of the scarier topics for people doing business today,” Bethany Coleman-Fire, associate

with law firm Davis Wright Tremaine LLP, told attendees of this week's 2015 SIGMA Annual Meeting. Cybersecurity is so scary because it is constantly changing and difficult for companies to figure out how to thwart attacks, Coleman-Fire explained during an educational session Tuesday entitled “Cybersecurity: Practical Considerations for Petroleum Marketers.” “A lot of terms are bouncing around,” she said, “and most people don’t know what most of them mean.” Only one thing is for certain: Nobody is immune from cyberattacks. In fact, 71 percent of attacks are waged against smaller businesses. At convenience stores, skimming at the point-of-sale (POS) is most commonly making news headlines. “There were seven times more POS intrusions in the first quarter of 2014 than all of 2013,” the Portland, Ore.-based attorney relayed. Still, Coleman-Fire stressed that skimming incidents at the pump are certainly not the only potential cyberattacks c-stores face. Ransomware and denial of service attacks are growing exponentially. Ransomware occurs when hackers breach a computer system, with the attacker demanding money in order to regain control of the operating system. Many retailers have decided to pay off the criminals because it is so difficult for law enforcement officials to bring the offending party to justice, Coleman-Fire acknowledged. Denial of service attacks happen when a network of computers overwhelm a retailer’s operating system. Hackers can either request money, similar to ransomware, or use as a smokescreen whereby a retailer’s information technology department solely focuses on stopping the attack while a cybercriminal is actually infecting a system with other malware. Also occurring on a less frequent but growing basis are attacks on mobile devices — mostly on Android devices — as well as attacks on Linux and Mac OS operating systems, she pointed out. PREVENTING CYBERATTACKS Cyberattacks are definitely scary, but there is good news, revealed Coleman-Fire. There are effective measures c-store retailers can take in an effort to prevent or lessen the impact of cyberattacks. “Cybersecurity is a family affair,” she said. “The biggest cause of a breach is human error.” She presented a five-phase approach to fight back against cyberattacks. Included in the game plan: Create an effective internal response team with clear responsibilities; • Select outside counsel; • Implement fast, low-cost changes; • Select an incident response team; • Consider cyber insurance; • Review current hiring and termination practices, such as

pre-employment background checks; • Update/implement written information security policies

and procedure;

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• Develop a response plan; • Implement security awareness training; • Establish technical controls; and • Test and maintain the system. On the topic of cyber insurance, a relatively new industry offering, the attorney advised that c-store retailers should get multiple insurance quotes as the price for some could be “outlandish.” Retailers must review the terms of the insurance plan regarding what happens post-attack, such as if a c-store operator can pick their own vendors and attorney. “It can be a scary experience if you don’t know the people who are coming in and trying to fix the problem,” said Coleman-Fire, adding that retailers should also check if the policy covers pre-breach services. As for how much coverage c-store retailers should seek, Coleman-Fire flatly stated it is too costly to seek coverage for a full breach, which on average costs retailers $5.3 million per incident. The amount of insurance needed varies widely, but $2 million in insurance coverage should be sufficient for single-store operators, she concluded. Costs Of Transition To Chip Card Technology The House Small Business Committee held the second hearing on “The EMV Deadline and What It Means for Small Businesses” on October 20, which focused on the retailer experience with the EMV transition. At the first hearing, held two weeks ago, the Committee heard from witnesses in the banking and payment card industries who touted the low costs of the EMV transition and the security benefits of Chip without PIN. Wednesday’s hearing focused on retailers and showed a different picture: the high and varied costs of the EMV transition and its security weaknesses. Testifying at the hearing, Jared Scheeler, managing director of The Hub Convenience Stores Inc., indicated that it has cost his chain of four North Dakota convenience stores $134,500 to date to install point-of-sale and pump card readers that accept EMV chip transactions. The average transition cost is more than $26,000 per store, compared with an average profit of $47,000 per year, bringing the total cost to roughly $3.9 billion for the 152,000-plus convenience stores nationwide. “As a small business, the transition to EMV has been a costly and burdensome undertaking. It does not appear that the card companies took into consideration the realities of operating a small business when they came up with their transition plans,” asserted Scheeler. “In addition to the substantial time and money involved, the card companies have erected considerable obstacles that restrict my ability to reduce payment card fraud at my stores.” In addition to the direct cost of replacing equipment, Scheeler cited lost management time; payments and lost income to downtime from required software upgrades; as well the substantial but yet not fully known obstacles of getting equipment programmed and certified by the card companies. Each company requires separate certifications

for credit, PIN debit and signature debit, which will be followed by pilot testing and “significant” staff training before EMV transactions can be accepted. Finally, ongoing maintenance and upgrade expenses are expected to exceed $2,200 per store annually. Members of Congress asked a wide variety of questions at the hearing. Chairman Steve Chabot (R-OH), Ranking Member Velazquez (D-NY), and Representative Blaine Luetkemeyer (R-MO) all wondered about how and why the costs of the EMV transition vary by industry. After hearing from Scheeler, Chairman Chabot agreed that the costs to transition were “significant” for a business in the convenience store industry compared to some other industries. Policymakers from both parties repeatedly asked the witnesses whether small businesses had been given enough information to inform their transition plans. In fact, at one point Representatives Janice Hahn (D-CA) noted that she thought Visa’s “20 city EMV education tour” fell woefully short of providing small businesses with the information they needed to effectively transition to EMV. New Chip (Without) Pin Cards Create Confusion The Federal Bureau of Investigation (FBI) recently issued a public service announcement warning that EMV cards, while offering enhanced security, can still be targeted by fraudsters. However, on October 13, the FBI revised its warning because EMV chip cards in the United States are not being issued as chip-and-PIN cards. In its initial announcement, reported in NACS Daily, the FBI suggested that consumers using an EMV card at a POS terminal should also use a PIN instead of a signature to verify the transaction. “This fully utilizes the security features built within the EMV card,” said the bureau. McClatchyDC.com reports that the FBI “had to reverse field a bit” to clarify that non-use of PINs would not fully protect consumers against fraud. The news source cites a 2012 Federal Reserve System study of 23.8 billion credit card transactions that found 13.5 million, or 5.68%, were fraudulent. The study also found that only 2.72% of debit, prepaid and ATM transactions, which require PINs, were fraudulent. Fraud was more pronounced among signature and prepaid transactions than among those that used PIN numbers. “The percentage of signature transactions that were fraudulent was more than seven times that of PIN transactions in 2011,” the study stated. Brian Dodge, executive vice president of RILA, told the news source that chip-and-PIN is the best security technology available, noting that banks issuing credit cards do not issue PINs, and card networks do not require PINs because there is no incentive for them to do so. Carolyn Balfany, a MasterCard senior vice president, told the news source that the card company allows, but does not require, consumers to choose whether to sign their EMV card or enter a PIN. “Ultimately, it’s up to the issuing bank to decide,” Balfany commented, adding, “Chip transactions protect consumers from counterfeit which is, hands down,

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the prevalent form of fraud in the U.S. PIN also protects against lost and stolen card fraud.” Meanwhile, Al Pascual, director of fraud and security at Javelin Strategy and Research, told the news source that consumers could be confused by the new method of inserting an EMV card into an EMV-enabled POS instead of swiping, coupled with the extra step of entering a PIN, which could cause “friction in checkout lines.” While analysts, card companies and banks debate whether consumers can handle entering a PIN at the checkout, one bank in Buffalo, New York, is confident consumers can remember another four-digit number. First Niagara Financial Group Inc. is issuing EMV credit and debit cards with chip-and-PIN security technology. “This significant investment in chip-and-PIN technology affirms our commitment to improving security and peace of mind for our customers and the retailers with whom they conduct business,” said Justin Bigham, First Niagara’s head of consumer product management, in a press release. “We believe this positions First Niagara among the leaders in the banking industry when it comes to card security and fraud prevention.” Highway Bill Passes House On November 5, the U.S. House of Representatives passed a six-year highway bill by an overwhelming 363-64 vote. Congress will need to identify new revenues to support the program through 2021. The House and Senate bills now go to a conference committee to work out differences. Included in the bills is the new tire registration mandate. CONGRESS SHOULD REJECT A NEW TIRE REGISTRATION MANDATE FOR INDEPENDENT DEALERS Section 34433 "Tire registration by independent sellers" was included in the DRIVE Act and adopted by reference into the companion House bill, the STRR Act (HR 22). If included in the conference report, the provision would set into motion a NHTSA rulemaking that could reinstate a 1970s-era paperwork mandate on small businesses. The impact would be to potentially shift blame for recall performance from the product manufacturers to independent gasoline stations, truck stops, Repair-shop and tire dealers. This provision could reinstate previously rejected NHTSA rules that Congress halted under the Motor Vehicle Safety and Cost Savings Authorization Act of 1982. Under the 1970's-era rules, NHTSA demanded detailed registration information and levied hefty fines on independent dealers who had failed to comply. The demands were onerous and serious legal requirements became the responsibility of mechanics, tire installers, and gasoline station managers. Yet compliance rates were low and small businesses could not afford to pay the fines, which could reach as high as $700,000. This regulatory burden threatened the viability of the family-owned businesses. The system was unworkable and did not effectively advance safety.

In 1982, Congress changed the requirements to establish a voluntary registration process in which customers, rather than dealers, voluntarily registered their tires. This process is similar for other consumer products, such as child safety seats and toys, where the purchaser voluntarily registers their purchase to get recall notices. We are not aware of any other safety products in which an independent salesperson is responsibility for a customer's product registration or a manufacturers' product defect. While the provision is vague and gives broad latitude to NHTSA to regulate these small businesses, the language is specific enough to include direction for tire dealers to turn over their customer lists to manufacturers, even when no recall has been issued. This is an idea that dealers adamantly oppose. Dealers are urging conferees to remove Sec. 34433 from the bill and prevent a return to the failed, onerous paperwork requirements of the past. We do agree however, that recall performance can be improved and we would like to work on with the tire manufacturers to achieve this goal. For example, we believe one way to improve recall performance would be for manufacturers to add low-cost, proven RFID chips to tires that allow maintenance professionals to scan the tires and immediately be alerted to open recalls during routine maintenance. Adoption of this technology not only will improve registration compliance, but also greatly improve recall rates. We ask Congress to encourage tire manufacturers and dealers to come to a mutual agreement to improve recall performance, rather than pit the two sides against each other with controversial legislation and new regulatory burdens. Association Note: This does not look good EPA Proposes Nationwide Self-Sealing Valve Requirement For Small Containers Of Motor Vehicle Refrigerant The Environmental Protection Agency (EPA) issued a proposed rule on Thursday, Oct. 15 that would prohibit knowingly venting, releasing or disposing of ozone-depleting and substitute refrigerants. While much of the rule applies to stationary units, it also includes a provision that would require small containers of 134a (those holding two pounds or less) used to service motor vehicle air conditioners (MVAC) be equipped with a self-sealing valve that prevents the venting of the refrigerant during and after a can is used. These valves are currently required in the state of California. EPA is promoting the self-sealing valve requirement as an alternative to prohibiting the sale of the refrigerant to do-it-yourselfers. The agency claims that if they were to prohibit the sale of small cans, “individuals who normally service their own MVAC would be required to either seek certification under section 609 or take their car to a technician to be serviced. EPA estimates that the cost associated with those two actions could be as much as $1.5 billion per year.”

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Further, EPA pointed to California as a case study where the self-sealing valves have provided an “effective way to reduce emissions of HFCs used to service MVACs without limited sales to certified technicians. These valves reduce the release of refrigerant during service and may also reduce releases from the can after the servicing is complete.” The requirement of a self-sealing valve would become effective one year from the promulgation of the final rule. A prohibition on the sale of non-compliant products would become effective two years following promulgation of the rule. The valves would be required to meet the same performance specifications as those in California. A 60-day comment period will commence once the proposal is published in the Federal Register, which is expected to occur sometime in the next several days. Instructions for commenting can be found in the initial copy of the proposed rule unveiled last week. Safety Agency To Rule On Requiring Emergency Braking Systems In Commercial Vehicles On Friday, Oct. 16, the National Highway Traffic Safety Administration (NHTSA) announced it had granted a petition from multiple organizations to move ahead with creating a federal rule to require commercial vehicles to come equipped with emergency braking systems. NHTSA will immediately move forward to creating a draft proposed rule based on their years of study and research on the topic. The petition, initially offered by the Truck Safety Coalition, the Center for Auto Safety, Advocates for Highway and Auto Safety and Road Safe America back in February, and supported by the Commercial Vehicle Safety Alliance, asks NHTSA to create a federal standard requiring vehicles over 10,000 lbs. gross vehicle weight rating to come equipped with forward collision assistance and mitigation (FCAM) systems. The FCAM systems in question would consist of a series of cameras or sensors that detect vehicles in the roadway ahead of the commercial vehicle and would send warnings and eventually apply brakes in the event a collision was imminent. The draft rule will take some time to come together before being released for review and comment by the public. However, it would be one of the first of its kind requiring a form of advanced vehicle technology that would apply a corrective action for the driver. President Obama Kiboshes Keystone Pipeline President Obama rejected a presidential permit for the Keystone XL pipeline, citing concerns about its impact on the climate, reports The Washington Post. "America’s now a global leader when it comes to taking serious action to fight climate change," Obama told reporters on Nov. 6. "And frankly, approving this project would have undercut that global leadership. And that's the biggest risk we face: not acting." Denying TransCanada Corp. a cross-border permit for a 1,179-mile pipeline between Hardisty, Alberta, and Steele

City, Nebraska, is the latest decision in a seven-year fight “over a project that came to symbolize what Obama could do unilaterally to keep fossil fuels in the ground,” writes the Post. President Obama Strikes Automatic Enrollment From ACA President Obama signed into law a bipartisan budget package that includes legislation to permanently strike the Affordable Care Act’s (ACA) mandatory automatic enrollment provision off the federal books. The mandatory automatic enrollment provision would have required employers with more than 200 full-time employees to automatically enroll employees into coverage if a plan was not voluntarily chosen or declined by an employee. If this requirement would have remained in effect, employees could have lost the opportunity to select the coverage that best meets their own health-care needs, and employers could have been subject to duplicative and costly regulations. Striking the ACA’s automatic enrollment provisions has been a top legislative priority for the E-FLEX Coalition. The advocacy effort to bring this legislation to President Obama for his signature included hundreds of meetings with members of Congress, congressional staff, grassroots efforts and a strong partnership of E-FLEX Coalition members. The Employers for Flexibility in Health Care (E-FLEX) is a coalition of leading trade associations and businesses in the retail, supermarket, temporary staffing, restaurant, hospitality, construction and other service-related industries, as well as employer-sponsored health plans insuring millions of American workers. Members of the E-FLEX Coalition have been working to implement the health-care law in ways that help ensure employer-sponsored coverage remains a competitive option for employees. Electric Cars Biggest Threat To Retail Fuel Market Share: Fuels Institute The electric car is not dead, contrary to the 2006 documentary "Who Killed the Electric Car?" The electric vehicle is very much alive and is estimated to present the biggest threat to the retail petroleum market. Electric vehicles are expected to gain sizable market share at the expense of gasoline and diesel in the future, John Eichberger, executive director at Fuels Institute, said Friday. About 98% of today's surface transport energy is petroleum, but the petroleum kingdom may crumble in the long term, he said. A 500-mile battery for an electric vehicle is no longer a dream, and it is becoming a reality, Eichberger said. The electric vehicle will appeal to the next generation of consumers, and it could gain significant market share in the U.S. in 2030 and beyond, he said.Eichberger was speaking at OPIS' 17th Annual National Supply Summit in downtown Houston. The two-and-half conference ends today.

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The Fuels Institute, founded by the National Association of Convenience Stores in 2013, is a nonprofit research-oriented think tank dedicated to evaluating market issues related to vehicles and the fuels that power them. U.S. gasoline demand is projected to drop to about 7 million b/d in 2035 from the current level of about 9 million b/d, according to the Energy Information Administration. While more drivers will be on the road due to a projected population growth trend, these drivers will add more vehicle miles traveled on less fuel as vehicles continue to improve fuel efficiency, Eichberger said. Registered cars will be 55% more efficient in 2035 versus 2015. In addition, the potential emergence of autonomous vehicles could also reduce fuel demand in the future. The Fuels Institute also found via its survey that over the past few years, consumers are becoming more open to a nongas vehicle. The younger generation is not loyal to petroleum. Also, the auto industry now boasts a lineup of more than 30 electric-car models, compared with less than a handful a few years ago. With more visibility on the road, consumers' reception of electric cars will gain traction, Eichberger said. While electric cars are expected to pick up more market share, the market share for natural gas vehicles in the light-duty segment is expected to be relatively stable, he said. Natural gas prices are expected to be relatively stable in the long run. --Edgar Ang, eang@opisnet.com Copyright, Oil Price Information Service FDA Acts Against Retailers For Illegal Sales To Minors The Food and Drug Administration (FDA) is taking action against a group of retailers for repeatedly violating restrictions on the sale and distribution of tobacco products, including sales to minors. The complaints are the first-ever No-Tobacco-Sale Order (NTSO) actions against retailers, the agency announced. Under the law, the FDA may pursue an NTSO against retailers that have a total of five or more repeated violations of those restrictions during compliance inspections within 36 months. "Retailers are the first line of defense in preventing the illegal sale of harmful and addictive products like cigarettes and smokeless tobacco to youth," said Mitch Zeller, director of the FDA's Center for Tobacco Products. "These enforcement actions will send a powerful message to all retailers that there are real consequences for repeatedly violating the law." The FDA's actions seek to prohibit the sale of regulated tobacco products at eight retail establishments for 30 days. The eight retailers are: • Thais Mini Market LLC dba I and S Grocery Inc. in

Newark, N.J.; • C and C Supermarket LLC in Irvington, N.J.; • Yemco Fuel Inc. and Nakeeb Hassan dba Marathon in

Detroit;

• Kat Party Store Inc. dba Mr. Grocer Liquor Store in Detroit;

• Family Food Market Inc. in Detroit; • Horizon Enterprises Inc. dba 95th Mobil and Food Mart

in Chicago; • Mon-Jan Corp. dba Monaghan's Pub in Baltimore; and • MFA Petroleum Co. dba Break Time 3028 in Columbia,

Mo. After the FDA initiates an NTSO action by filing a complaint, a retailer can respond to the complaint, but must generally do so within 30 days. If an NTSO goes into effect, a retailer is responsible for ensuring that the establishment does not sell regulated tobacco products during the specified period. According to the agency, removing or covering tobacco products are examples of steps a retailer may choose to take to ensure compliance with an NTSO, but these specific actions are not required. It is up to the retailer to decide what measures to take to ensure no regulated tobacco products are sold at the store during the period of time specified in the order. The FDA plans to conduct unannounced compliance check inspections during that period to check whether the establishment is complying with the terms of the order. Pennsylvania Considers Raising Tobacco Age Pennsylvania might join Hawaii in requiring the minimum age for tobacco use to be 21, Philadelphia Magazine reports. The current age for tobacco product purchases in the state is 18. On Wednesday, state Rep. Vanessa Lowery Brown sponsored House Bill 1628 to change the minimum age to buy tobacco products. “Studies show that the vast majority of those who smoke daily began before the age of 19,” said Brown. “Restricting access to tobacco products until age 21 should lower the smoking rate in the commonwealth.” Hawaii’s law, which goes into effect January 1, is the first statewide measure to set the minimum age for tobacco purchases at 21. Hawaii included e-cigs in its law. New York City also forbids the selling of tobacco products to those under 21. Four states have set the minimum age for tobacco purchases at 19: Alabama, Alaska, New Jersey and Utah. Brown’s push has a slim chance of success, given how difficult enforcement would be for those who simply cross the state line to buy smokes. Also, Brown herself is set to go on trial later this year on bribery charges. Meanwhile, 10 U.S. senators are backing a proposal to limit the sale of tobacco products to adults age 21 and older. Tobacco Companies. Take Cigarette Price Hikes Cigarette list prices are going up, a common move on the part of tobacco companies this time of year. Philip Morris USA was the first to announce a hike, increasing the list price 7 cents per pack, or 70 cents per

Newsletter 8

carton. The move spreads across all core PM USA brands, including Marlboro but not Marlboro snus tins, according to Bonnie Herzog, managing director of tobacco, beverage and convenience store research at Wells Fargo Securities LLC. This list price increase will be effective with shipments on or after Nov. 15. From a timing perspective, this price increase is in-line with PM USA's cigarette price increase last year which was announced on Nov. 12, 2014 and became effective on Nov. 16, 2014, Herzog said. "We also find PM USA's timing interesting given that Reynolds American Inc.'s new retailer contracts become effective next week as well as given ITG Brands LLC's stepped up promos behind Winston," she added. Within days, RAI and ITG followed with similar moves. R.J. Reynolds Tobacco Co. (RJRT) took a 7-cent per pack increase on its key growth brands: Camel (excluding Non-filter), Pall Mall Box (Savings), Newport, Doral and Red Kamel. However, the RAI operating company took a nearly 9-cent increase on Camel Non-Filter, Pall Mall (Full Price) and several other non-growth brands which is to be offset by slightly higher discount terms on these non-growth brands except for the brands acquired from Lorillard, according to Herzog. RJRT's price increase became effective on orders placed after Nov. 12. ITG also announced a 7-cent per pack increase on Winston, Kool, Salem, and Maverick effective Nov. 13. The company made no changes to its current off-invoice discount values for any of its brands and reminded its customers that the full value of all off-invoice promotional allowances must be passed on to their customers, Herzog said. In addition, she added that Santa Fe Natural Tobacco Co. hiked its Natural American Spirit brand 7 cents a pack. The move became effective for orders after Nov. 12. In another move, Liggett also took a 7-cent per pack price increase on its brands except on Eagle 20's, she added. "Given that underlying cigarette industry consumption will likely revert towards its long-term trend of declining, pricing remains a critical driver of revenue and earnings growth," Herzog said. U.S. Government Bans E-Cigarettes In Checked Bags The U.S. Department of Transportation issued an interim final rule yesterday that prohibits passengers and crewmembers from carrying battery-powered portable electronic smoking devices (e-cigarettes) in checked baggage and bans passengers and crewmembers from charging the devices and/or batteries on board the aircraft. “E-cigarettes in checked bags can catch fire during transport,” said Transportation Secretary Anthony Foxx. “Fire hazards in flight are particularly dangerous. Banning e-cigarettes from checked bags is a prudent safety measure.” According to the DOT, on Aug. 9, 2014, at Boston's Logan Airport, an e-cigarette that was in a passenger's checked bag in the cargo hold of a passenger plane caused a fire that forced the evacuation of the aircraft. And on Jan. 4,

2015, at Los Angeles International Airport, a checked bag that arrived late and missed its connecting flight caught on fire when an e-cigarette inside the bag overheated. Passengers may continue to carry e-cigarettes for personal use in carry-on baggage or on their person but may not use them on flights. The DOT’s current regulatory ban on smoking of tobacco products on passenger flights includes the use of electronic cigarettes. However, to prevent passenger or crewmember confusion, DOT has proposed to amend its existing airline smoking rule to explicitly ban use of electronic cigarettes aboard aircraft. House Committee Marks Up Bill Limiting The Definition Of Joint Employer Yesterday, the House Committee on Education and the Workforce convened to mark up the Protecting Local Business Opportunity Act (H.R. 3459). The bill, introduced by Committee Chairman John Kline (R-MN), seeks to roll back the National Labor Relations Board’s (NLRB) recent decision to expand the definition of a “joint employer” under the National Labor Relations Act (NLRA). The expanded definition of “joint employer” could have significant impacts on the franchisor-franchisee or the business-contractor relationship. If a franchisor is considered a “joint employer” of its franchisee’s employees, then the franchisor can be liable for labor law violations committed by its franchisee, and the employees can unionize (with the union not only applying to the franchisee but also to the franchisor). The same is true of the business-contractor relationship. Those legal responsibilities have the potential to not only create liability but also to fundamentally alter the relationships of these businesses. In late August, the NLRB released its decision in a case against Browning Ferris Industries in which the NLRB expanded the definition of “joint employer” under the NLRA. Under the new standard, the NLRB found that simply possessing the authority to control the terms and conditions of employment, even if that authority is never used, is sufficient for a company to be designated a “joint employer.” Rejecting the requirement that a joint employer possess and exercise “direct and immediate control” over the terms and conditions of employment, this new definition creates ambiguity in the role that employers must play in collective bargaining agreements and the relationships between franchisors, franchisees, contractors and subcontractors. Kline’s legislation seeks to reaffirm the traditional standard that an employer must have “actual, direct, and immediate control” over an employee to be considered a joint employer. In his opening statement, Kline explained that the NLRB’s decision has potentially grave consequences for the country’s small-business owners because “[l]arger businesses will begin exerting greater control over small businesses. If they are legally liable for the decisions of their smaller partners, they will have no choice but to demand a greater role in how those small businesses operate. Or they might stop doing business with

Newsletter 9

local employers altogether.” Many of his Republican colleagues agreed, believing the new standard to be too indefinite, leaving many small businesses and their owners confused about its potential impact. Committee Democrats, on the other hand, were quick to argue that this legislation is premature as the NLRB’s new standard is unlikely to apply to most franchisor-franchisee relationships. They also expressed concerns that this bill, which one member remarked was a “blunt response to a complex issue,” would seemingly undermine collective bargaining and other protections for hardworking employees. To show their dissatisfaction with the legislation, five Democrats on the panel, Reps. Jared Polis (D-CO), Mark Pocan (D-WI), Frederica Wilson (D-FL), Suzanne Bonamici (D-OR) and Katherine Clark (D-MA), offered amendments during the course of the markup that would strike the text of the bill and replace it with text from bills that Democrats have introduced to strengthen worker rights and protections. All of the amendments were rejected by the Republicans on procedural grounds. Despite the attempts made by Democrats to alter the form and function of the legislation, the bill advanced out of committee by a 21-15 party line vote, with all Republicans voting in favor and all Democrats voting against the bill. Following the markup, Committee Ranking Member Bobby Scott (D-VA) explained that while the bill may pass through the House, it is unlikely to survive in the Senate and would eventually face a presidential veto. Legislation Favors Big-Box Retailers In Sale Of Beer, Wine A Michigan bill would lift a prohibition on beer and wine sales at gas stations -- but only those that are operated by big-box retailers. The Michigan Petroleum Association and Michigan Association of Convenience Stores said it opposes the legislation because the proposal "hurts the little guys." The association said that the bill is scheduled for a hearing before the Michigan House Regulatory Reform Committee tomorrow. "All motor fuel retailers should be able to sell beer (and) wine if they choose, not just big-box retailers," the group said in an alert to members. "Modern gas stations/c-stores have changed dramatically and are uniquely suited to sell these products." A copy of House Bill 4895 shows that in order to sell beer and wine, the licensee would need to be: • located in a neighborhood shopping center of one or

more businesses with • 50,000 square feet or more of gross retail space or • have a minimum of $250,000 in inventory excluding

alcoholic beverages and the • alcohol would need to be sold at least five feet from fuel

dispensers.

The proposal leaves intact an exception for licensees in small towns and rural counties that meet certain minimum inventory requirements. The trade association points out that an identical bill was introduced in the Michigan Senate. Senate Bill 345 was referred to the Senate Regulatory Reform Committee, according to the Legislature's website. --Donna Harris, dharris@opisnet.com Copyright, Oil Price Information Service Man Accused of Buying 800-Plus Gal Fuel With Stolen Credit Card Is Arrested The Florida Office of Agricultural Law Enforcement has arrested a man in Fort Pierce, Fla., accusing him of illegally obtaining more than 800 gallons of fuel with stolen credit card information. The state has charged Julio Regalado Garcia, 51, with one count of unlawful conveyance of fuel and one count of fraudulent use of a credit card. Both charges are third-degree felonies. Garcia had filled up what is known as a "bladder truck," a truck that is retrofitted with a large, hidden fuel tank. Legal authorities have said bladder trucks are often used to obtain large quantities of fuel to sell on the black market. "Illegally obtaining and using someone else's financial information is one of the most common types of identity theft in our nation. We will do everything in our power to protect Floridians and visitors from financial crimes," said Florida Commissioner of Agriculture Adam Putnam in an announcement of the arrest. --Donna Harris, dharris@opisnet.com Copyright, Oil Price Information Service DMV Record Retrieval DMV record retrieval is available to association members and affiliates at a cost of $12 per record. Additionally, you may order DMV certified paper abstracts of driver’s license, vehicle registration, and vehicle title records for an additional fee of $2 per abstract. Please call 585-423-9924 or 716-656-1035. Attention Inspection Stations The Association has received a flurry of requests for legal representation for violations of the DMV commissioner regulations known as "clean scanning." that is when a vehicle other that the one to be inspected is substitute for the OBD-II part of the test. We have no defense for these violations. DMV has the ability to trace the OBD-II inspection to the vehicle used for the inspection. If you cannot pass a vehicle for any reason, get help. That help could come from DMV. This violation almost always results in revocation.

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Lawley Declares Dividend for 23rd Year

Declared Dividend is 20%

In 2015* the New York State Association of Service Stations & Repair Shops, Inc. is proud to declare a dividend for the Workers Compensation

Group #536 of 20% . This will be the 23rd consecutive year that the group will pay the dividend. This dividend is in addition to the up front 20% discount that all members could enjoy. Checks will be processed on 4/17/2015 and mailed directly to your address by The State Insurance Fund. * Applies to Policy Term 5/1/13 - 5/1/14

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Please contact: Bill Adams at 716.849.8641 or by email at badams@lawleyinsurance.com if you have any questions or concerns. NYSASSRS & Lawley Partnership

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