Legislative Issues

2009 WMDA Legislative Agenda Update
We are about to finalize our 2009 legislative agenda at the upcoming Board meeting (well before you read this) and as we continue to see the sell-off of most of the remaining refiner-owned properties, there is no compromise as yet with the opponents of a dealers’ Right of First Refusal. It also appears doubtful that any compromise will be reached before the start of the session. This is unfortunate for many reasons – chief among them is the adversarial tone that will be set between suppliers and their customers. It would seem that our suppliers could look at their own relationship with refiners and find a little understanding for the dealer position. None of them would ever into a business relationship as restrictive as a dealer’s typical lease.

This issue has taken on the characteristics of a life or death standoff and, as with any confrontation between people who must work together, the ramifications of the outcome will be felt for years to come. We hope you are up for the challenge because the dealer community must come together as it has in the past for other industry-defining movements including divorcement and predatory pricing (sales below cost). This will include calls, visits and e-mails from our membership and customer base all over the state to members of the legislature. Let’s be clear, if we are to tell our story properly the dealer must engage his customers to be part of the effort. This is where your years in the community will pay off. Let your customers know that your very survival is at stake and you need their help. Nothing will be more gratifying to you than watching your customers come to your aid and if you’ve been a supportive neighbor they will be there.

It has always surprised us that the idea of periodic motor vehicle safety inspection has been difficult for the legislature to embrace. A brief tour of any parking lot in the state would yield numerous safety concerns from a brief visual check of tires and suspension. All of our surrounding states have it in place and the last time the National Highway Traffic Safety Administration (NHTSA) studied the issue the evidence clearly showed that a state vehicle safety inspection reduced accidents. We will bring this issue to the legislature again. Speaking of vehicle inspections, it looks like the folks running the Vehicle Emission Inspection Program (VEIP) have gone against their word again and left the automotive repair shops out of the process for the foreseeable future. It is surprising for a number of reasons and consumer convenience is at the top of the list. It’s not hard to believe that most consumers would enjoy the convenience of having their vehicle’s emission test performed at their local garage instead of driving to the state-run VEIP facility. The test on most vehicles today is simply a matter of plugging in the computer scanner and there is no reason our repair shops should not be involved.

Remember that if any (or all) of these issues provoke your interest, as a citizen of Maryland, you have the opportunity at any time of contacting your legislator (Delegate or Senator) by simply connecting to http://mdelect.net/electedofficials/ and entering your address (use your home and business) to find your legislators’ e-mail addresses and phone numbers. Please take advantage of this and don’t forget to identify your relevant business or home address.

Association Legislative Efforts that Affect a Member’s Bottom Line

All Jurisdictions

Maryland

District of Columbia

Delaware

All Jurisdictions

Introduced legislation to guarantee the First Right of Refusal on all lease transactions.
Introduced legislation to prohibit maximum price setting.
Introduced legislation to prohibit the transfer of legal fees.
Introduced legislation for terminal pricing to eliminate zone pricing.
Introduced legislation for oil company disclosure of price.
Testified on Capitol Hill on rising gasoline prices.
Testified before Congress in zone pricing.
Opposing OSHA mandatory 2-clerk rule for stations open 24 hours.
Delayed EPA proposal to lower NAAQS standards (bringing Delaware and Maryland into non-compliance; thus requiring RFG, Stage II, VEIP, etc.
Passed small business expensing legislation (increasing the amount allowed under Code Section 179 from $17,500 to $25,000 by the year 2003).
Passed work opportunity Tax Credit bill (available for business hiring from 6 targeted groups – the credit is equal to 35% of qualified wages).
Supporting legislation to return 85% of Federal LUST funds.
Supporting legislation to repeal the retroactive liability provisions of Superfund.
Passed new c-store depreciation schedule (allowing for a 15 year depreciation instead of the longer 39 year line method).
Passed legislation to prohibit motor fuel tax for deficit reduction.
Passed legislation freezing the Federal Motor Fuel Tax rate through 2003.
Support efforts to deregulate electric companies and to form a co-op for WMDA members.
Supporting Right to Repair legislation for independent repair facilities.
Supporting Association Health Plan legislation to bring better, affordable health insurance to members.
Supporting Asbestos reform legislation to eliminate members’ risk.

Maryland

Passed model Anti-Predatory Pricing legislation.
Extended the moratorium on service station conversions to 2009.
Allows for TVAS for 4 years.
Defeated proposal to require towers to accept credit and debit cards.
Extended to January 1, 2007 the job creation tax credit.
Defeated proposal for tow truck operators to provide specific information to owners of vehicles before a tow.
Lowered proposed cigarette tax increase from $1.50 a pack to 38 cents a pack.
Defeated proposal to remove the cap of $275 on the retail motor fuel dispenser meter fee.
Repealed the inheritance tax rate.
Ensured that all licensed agents of the State Lottery Agency receive regular commissions of 5%.
Deregulated electricity industry.
Defeated 2004 bill to raise motor fuel tax rate by 10 cents a gallon.
Raised waiver fees for vehicles failing VEIP test.
Defeated proposal to lower sulfur content in gasoline.
Challenging below cost selling, zone pricing, disclosure, and rebates.
Seeking a decentralized VEIP retest.
Defeated proposals prohibiting cigarette counter displays.
Defeated legislation to revoke business license for sale of cigarettes to minors.
Defeated legislation for excessive fines for sale of cigarettes to minors.
Defeated legislation to allow counties to police and fine for sale of cigarettes to minors.
Defeated proposed MDE increased taxes and fees to fund additional employees and equipment.
Defeated proposed sales tax on repair labor.
Defeated proposal to allow counties to set motor fuel prices.
Passed legislation for low interest loans for tank upgrades and replacements.
Defeated legislation to increase the minimum wage to $7.70 per hour.
Supported Worker’s Comp reform,
Defeated proposal to repeal refiner prohibition of games and chance.
Defeated proposal to allow stations to be operated by a producer or refiner with any entity in which the producer or refiner has a direct or indirect ownership of financial interest.
Defeated a proposal to require repair facilities to disclose to a customer any commission that is paid in connection with repair.
Defeated proposal that would have imposed a general service gross receipts tax of .4%.
Passed proposal to allow retailers to charge up to $25 for the acceptance of bad checks.
Supporting legislation to allow a 20% state tax credit for VEIP equipment,.
Defeated a proposal to tie gasoline tax to the consumer price index.
Raised small claims court limits to $5,000.00.
Defeated proposal for a Community Right to Know Fund, with an annual fee of $10,000.00 for 1 location up to $20,000.00 for 2 or more locations.
Defeated proposal for fees to establish a Solid Waste Management Fund.
Defeated a bill to put a 2% premium tax on HMO’s.
Defeated legislation to 12 workweeks of family leave per year.
Defeated a bill that would have required fence protection around all sites that stored oil or motor fuel.
Passed drive-off legislation.

District of Columbia

Supported elimination of Arena tax.
Allow for a $3,000 employee wage credit if you are located in a D.C. Enterprise Zone and if you qualify you are eligible for a 20% wage credit for the first $15,000 of wages paid to a D.C. resident.
No tax on capital gains from the sale of stock, partnership interests, or property of certain D.C. businesses in all wards.
Some businesses located in D.C. Enterprise Zones also are eligible for an additional $20,000 of expensing under IRS Code Section 179 for qualified zone property; and certain tax exempt financing for certain zone facilities.
Amended arena tax to exclude city and federal taxes.
Defeated proposal for industry fee to finance Gasoline Station Advisory Board.
Extended the moratorium on service station conversions.
Supporting legislation to lower workers’ comp rates.
Defeated proposal for a bottle deposit.
Supported legislation to extend recycling program.
Supported legislation to repeal the snack tax.
Raised Baseball tax trigger from $3 million to $6 million in gross receipts.

Delaware

Supporting anti-drive off legislation.
Seeking extension of divorcement to all new refinery acquired stations.
Supported electric deregulation.
Opposed legislation to prohibit auto repair shops from using non-OEM parts (except for limited use).
Opposed legislation to prohibit the use of self-service displays for cigarettes and other tobacco products.
Opposed motor fuel tax increase.
Supported legislation to lower gross receipts tax.
Passed a bill to suspend the prohibition of temporary voluntary allowances.

For further information contact:

Paul Fiore
Director of Government Affairs

301-390-0900 or 1-800-492-0329 ext. 102
email: pfiore@wmda.net