December 2016

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THE SALES SLIP A Member Service of Vermont Retail & Grocers Association (802) 839—1928 | [email protected] | vtrga.org | @vtrga DECEMBER 2016 The Vermont Senate, with a total of 30 seats, will consist of two new Democrats this year, bringing the total to 23. Franklin & Rutland County retained Republican seats, while Washington County lost one Republican seat; Bill Doyle, Senator since 1969, and Democrats picked up one seat in Chittenden County. There are now 7 Republicans remaining in the Vermont Senate. The Vermont House, with a total of 150 seats, did not see much change. With one recount unresolved in the Windsor-Orange 1 District, Republicans lost one of their 54 seats, while the counts for Democrats, Progressives, and Independents remained the same at 84, 6, and 7 respectively.

On Tuesday, November 8th VRGA’s Robin Miller along with Husband Robert welcomed baby John to the world and into all of our hearts. While Robin is out on maternity leave please give a warm welcome to Elissa Spagnola assisting us in the office.

2017 LEGISLATIVE FORECAST The Vermont General Assembly will convene on January 4, 2017 for the first year of the twoyear biennium, and as usual will start with a slow first week as the General Assembly waits for the new Speaker; projected to be Mitzi Johnson (D)-South Hero, to announce committee assignments. The Senate President; Tim Ashe (D)-Chittenden County will also need to work with the “Committee on Committees” on committee assignments. Both chambers are expected to have new Majority Leaders, and the Scott Administration will be announcing more than 65 newly appointed agency/department heads over the next 45 days. Each appointee will need to be confirmed by the Senate.

Steam will pick up quickly as the Fiscal Committee warned the new Administration and legislators to anticipate a $50-$80 million shortfall for the FY17 budget and at least a $16 million deficit in FY18. In addition to the continued budget woes, VRGA anticipates that several retail and food related issues will surface in 2017, including; predictive scheduling, mandated paid family leave, legalization of marijuana, Tobacco & Ecigarette taxes, fee increases for licenses and permits, expansion of Medicaid coverage to young adults up to the age of 26, and increased taxes to fund the Clean Water Act, to name a few. Court Issues Hold on Overtime Rules On November 22, 2016, a federal court judge in Texas issued a preliminary injunction that temporarily blocks the U.S. Department of Labor (DOL) from implementing and enforcing its revised white collar overtime regulations on a national basis. The regulatory revisions, which would more than double the minimum salary requirements for the major white collar exemptions to the federal Fair Labor Standards Act (FLSA), were set to become effective on December 1, 2016.

Judge Amos L. Mazzant III, a federal judge for the Eastern District of Texas, issued the ruling in a consolidated set of cases brought by 21 states and several business organizations. Both cases challenge the changes to 29 C.F.R. Part 541, which defines and delimits the standards for evaluating whether employees are exempt executive, administrative, and/or professional employees. Under the current regulations, the minimum salary requirement for these exemptions generally is $455 per week, which annualizes to $23,660 per year. Under the revised regulations, the minimum salary would more than double to $913 per week, which annualizes to $47,476 per year. In his decision, Judge Mazzant found that the plaintiffs’ challenge to the final regulations has a substantial likelihood of success on the merits and that the plaintiffs have shown that they would be irreparably harmed if the rule was not enjoined. Vermont's Paid Sick Leave Law Takes Effect January 1 Effective January 1, 2017, under the new Paid Sick Leave law, employees will be able to earn up to three days of paid leave per year in 2017 and 2018, and up to five days per year in the years following. The new law exempts businesses with under 5 full time employees until January 1, 2018, and other exemptions apply to various types of employees. On Wednesday, November 3rd Vermont Retail & Grocers Association in partnership with Tim Copeland & David Harlow of Downs Rachlin Martin PLLC, provided a FREE Members-only Webinar to 113 participants. Members can access the PowerPoint slides and Webinar recording (from 11.3.2016), and a 7-page FAQ on the Members Only Section of our website, www.vtrga.org. If you need assistance logging in, please contact the association office, [email protected] or 802-839-1928. Note: The second half of the webinar also includes information on the federal overtime regulations, which have subsequently been placed on hold by a federal judge in Texas.

REMINDER Vermont’s Minimum Wage Will Increase on January 1 The Vermont minimum wage rate will be increased to $10.00 per hour - from the current rate of $9.60 per hour - effective on January 1, 2017. The change was part of legislation passed in 2014 along with further increases each year till 2018, at which point the wage will be $10.50. Following that, the wage will increase annually based on CPI unless the legislature intervenes. Vermont law requires all employers to post the minimum wage rates. Updated posters for both the minimum wage and meals and lodging allowance are available at the Vermont Department of Labor’s website: labor.vermont.gov/wordpress/wp-content/ uploads/Minimum-Wage-Poster.pdf Please note that Vermont's minimum wage does not apply to high school students under 18, however federal minimum wage law ($7.25) does. Additionally, the association has an all-in-one Vermont employment poster. If you need a copy, please contact the association office, 802-839-1928 or [email protected]. IRS Targets Diesel Pump Labels According to several trade reports, the IRS has increased its inspections of diesel pump labels. Fines for violations can be $10/gallon of every gallon in the tank connected to the dispenser at the time of the violation. Labels must be maintained and checked regularly as they can fade or fall off due to weather. The IRS requires specific labels for all dyed diesel and dyed kerosene dispensers indicating the fuel is for nontaxable use only. The requirement has been in place for dyed diesel dispensers since 1993 and for dyed and clear kerosene dispensers since 1998. Post the following warning on any retail dispenser – including skid tank, consumer dispensers at bulk plants or card locks – where dyed diesel fuel and/or dyed kerosene are dispensed for use by a consumer: “DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE” or “DYED KEROSENE, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE.”

The following label must be posted on all blocked pumps that sell clear, untaxed kerosene: “UNDYED UNTAXED KEROSENE, NONTAXABLE USE ONLY.” REMINDER: Gas Stations Need to Comply with ADA Service at the Pump By law, gas stations are required to provide every motor vehicle operator with a disability, who has been issued a registration plate or parking card for persons with disabilities, the following services:  Pump the gas for the individual, provided that more than one staff person is on duty, and  Charge the same self-service price available to patrons who pump their own gas. To assist gas stations with complying with the Americans with Disabilities Act, the Vermont Petroleum Association has printed stickers containing the international symbol of accessibility and a space to print a telephone number that patrons can use to call for assistance. Please contact the association office at [email protected], with the requested number of stickers and a mailing address and they will be sent to you. The new decals are $0.75 each for VRGA and VPA members, $1.00 for other businesses. If you have questions about your responsibilities, please contact the Vermont Center for Independent Living, 802-229-0501, Disability Rights Vermont, 802-229-1355, or the Vermont Human Rights Commission, 800-416-2010 or [email protected].

National Retail Federation Forecasts Holiday Sales to Increase 3.6% NRF announced it expects sales in December, excluding autos, gas and restaurant sales, to increase a solid 3.6 percent to $655.8 billion — significantly higher than the 10-year average of 2.5 percent and above the seven-year average of 3.4 percent since recovery began in 2009. Additionally, NRF is forecasting non-store sales to increase between 7 and 10 percent to as much as $117 billion. More at vtrga.org/news. Federal Reserve Says Visa Violates Law by Steering Debit Card Transactions to Its Own Network The National Retail Federation called on Visa to stop using new EMV technology to steer debit card transactions to its own processing network, a practice the Federal Reserve says violates merchants’ legal right to competition over who will process the transactions. On many credit/debit card readers installed since the card industry began implementing new Europay MasterCard Visa chip card technology last year, debit card users are presented with a screen that asks them to choose between “Visa Debit” and “U.S. Debit.” For those who choose Visa Debit, the transaction is routed over an expensive network owned by Visa and the consumer is usually required to use an easily forged signature to approve the transaction. When U.S. Debit is chosen, the transaction goes over the retailer’s choice from about a dozen competing networks that charge merchants less but provide more protection by allowing the use of a secret, secure PIN. Other alternatives offered by Visa can lead to the same results even without the screen.

NRF Calls on Visa to ‘Do the Right Thing’ After Ending Practice That Steered Debit Card Transactions The National Retail Federation welcomed Visa’s announcement on November 22 that it will no longer use EMV technology and rules to improperly steer debit card transactions to its own processing network following an investigation by the Federal Trade Commission and a ruling by the Federal Reserve. “We’re glad to see Visa has recognized that they have crossed the line,” NRF Senior Vice President and General Counsel Mallory Duncan said. “It’s a shame it took two federal agencies to make that clear. Now the real question is whether Visa will do the right thing by cleaning up the mess they’ve created.” Visa said it would no longer require that consumers using a debit card in Europay MasterCard Visa chip card readers be presented with a screen forcing them to select either “Visa Debit” or “U.S. Debit.” For those who choose Visa Debit, the transaction is routed over an expensive network owned by Visa and the consumer is usually required to use an easily forged signature to approve the transaction. When U.S. Debit is chosen, the

transaction goes over the retailer’s choice from up to a dozen competing networks that charge merchants less but provide more protection by allowing the use of a secret, secure Personal Identification Number, or PIN. The Federal Reserve ruled earlier this month that the practice violates a 2010 debit card reform law that says retailers must be allowed to choose between at least two unaffiliated networks to process debit transactions. In addition, Visa disclosed in a filing with the Securities and Exchange Commission that the issue has been under investigation by the FTC since July. While NRF welcomed today’s move to end the practice, Duncan said Visa should work with merchants and equipment providers to ensure that removal of the screens is not done in a way that voids the certification of retailers’ EMV systems. Under rules unilaterally imposed by the card industry last year, retailers who do not have certified chip card readers are subject to increased liability for fraud if a chip card turns out to be counterfeit, unnecessarily exposing merchants to huge losses.

Predicting where retailers will focus their energy in 2017 2017 will be a tipping point for many of the technologies that have been in startup mode for two to three years. That’s not to say that concepts such as artificial intelligence and virtual reality are ready for prime time, but clearly we’re at a point where these emerging technologies have proven valuable and are on the cusp of sparking greater change. We’ve also reached an inflection point in the expectations of consumers and how they want to interact with brands and retailers. Shoppers expect brands to understand what’s important to them. They want and demand trust; if they have a problem, they expect answers. Connecting with today’s shopper implies understanding the fierce urgency of now that prevails in their lives. For retailers, that means being prepared to adapt quickly and transform processes when needed. Shoppers can be a punishing crowd; get on their bad side and you’ll suffer. Innovation is imperative in today’s “what’s next” climate. That doesn’t necessarily imply an overhaul, but it does suggest the need for regular, impactful changes and a vigilant eye on the future.

market, reports it used 36,400 new bags compared to 65,800 during the same period in 2015. When customers do not bring in their own bags, Woodstock Farmers’ Market charges a nominal 10 cents for a large bag and 5 cents for a small bag, with 100 percent of those fees donated to Woodstock Community Food Shelf. A total of $1,830 has been donated so far. There is also a Bag Library where customers leave bags that can be borrowed by those who forgot to bring in their bags. Wanting to reduce unnecessary waste and aid efforts to protect the environment, Woodstock Farmers’ Market instituted the innovative bagging policy urging customers to reuse and recycle paper and plastic bags, or purchase reusable grocery and produce bags. Since the program started 3,430 reusable bags have been sold. Plastic produce bags are still available at no charge, however the Market urges customers to “Shop Naked” (meaning use no plastic bags at all) or consider purchasing convenient 3B Bags—reusable nylon mesh produce bags with a drawstring, at $.89 each for a small bag and $.99 for a large bag. Rappaport said the mesh bags have the added benefit of allowing produce to be rinsed off while still contained in the bag. Over 600 mesh bags have been sold from May – September. Rappaport advised any other retail businesses adopting the reuse bag policy to  Advertise the program extensively well in advance of implementing it  Donate 100 percent of the bag fees to a favorite local charity.  Train the cashiers who interface with customers thoroughly. Provide them with reasons why the reuse bag policy is good for everyone.

Farmers Market Cuts Bag Usage Through New Program A mandatory bag reuse program instituted by a Vermont independent specialty food market six months ago dramatically reduced new bag use by 55 percent. Six months after implementing a groundbreaking reuse bag policy, Woodstock Farmers’ Market, a year round

IRS Extends Deadline for Employers to Furnish Forms 1095-C and 1095-B On November 18, 2016, the IRS released Notice 2016-70 to extend the due date for employers to furnish Form 1095-C or 1095 -B under the Affordable Care Act’s employer reporting requirement. Employers will have an extra 30 days to prepare and distribute the 2016 form to individuals. The due dates for filing forms with the IRS are not extended.

Background Applicable large employers (ALEs), who generally are entities that employed 50 or more full-time and full-time-equivalent employees in 2015, are required to report information about the health coverage they offered or did not offer to certain employees in 2016. To meet this reporting requirement, the ALE will furnish Form 1095-C to the employee or former employee and file copies, along with transmittal Form 1094-C, with the IRS. Employers, regardless of size, that sponsored a self-funded (self-insured) health plan providing minimum essential coverage in 2016 are required to report coverage information about enrollees. To meet this reporting requirement, the employer will furnish Form 1095-B to the primary enrollee and file copies, along with transmittal Form 1094-B, with the IRS. Self-funded employers who also are ALEs may use Forms 1095-C and 1094-C in lieu of Forms 1095-B and 1094-B. Extended Due Dates Specifically, Notice 2016-70 extends the following due dates:  The deadline for furnishing 2016 Form 1095-C, or Form 1095-B, if applicable, to employees and individuals is March 2, 2017 (extended from January 31, 2017).

MONTHLY TIP BY:

2016 Election and Compliance Issues Republican candidate Donald Trump has been elected the 45th president of the United States, and Republicans have retained control of the Senate and the House of Representatives. Under President-elect Trump and the Republican-led houses of the U.S. Congress, it is likely that some changes will be made to the ACA and other compliance issues over the next four years.

 The deadline for filing copies of the 2016 Forms 1095-C, along with transmittal Form 1094-C (or copies of Forms 1095-B with transmittal Form 1094-B), if applicable, with the IRS is:  If filing by paper, February 28, 2017. Prior to the IRS announcement, a process existed for employers to file Form 8809 to request a 30-day extension of the due date to furnish forms to individuals. Notice 2016-70 explains that the new extended due date applies automatically so individual requests are not needed. Employers that had already submitted extension requests will not receive a reply. More Information Notice 2016-70 also provides guidance to taxpayers who do not receive a Form 1095-B or 1095-C by the time they file their 2016 individual tax return. Lastly, the IRS encourages employers, insurers, and other reporting entities to furnish forms to individuals and file reports with the IRS as soon as they are ready.

Potential ACA Changes Although it is largely unclear, at this time, what changes will be made, Republicans in the past have suggested the following:  Full or partial repeal of the ACA  Changes to the Medicare and Medicaid programs  Implementing new policies to expand coverage and lower health care costs What Should You Do? Donald Trump will not take office until he is inaugurated on Jan. 20, 2017. This means that there will likely be no significant legislative or regulatory changes prior to 2017. As a result, employers should continue to prepare for upcoming requirements and deadlines to ensure full compliance.

NEWS

BRIEFS

Our deepest sympathies are extended to Mark and Dawn Godaire’s family on the tragic loss of their son, Andrew, 22, as a result of a motor vehicle accident. Mark is the manager of Mazza’s General Store in Colchester. A scholarship fund has been established in Andrew's name to support Medical Assistant continuing education at UVM Medical Center. Donations may be made to The Andrew Godaire Memorial Fund by sending a check payable to UVM Medical Center (Andrew Godaire Memorial), 111 Colchester Ave. Burlington, VT 05401. Wal-Mart held a grand opening of its new 156,000-square-foot superstore in Derby, VT that has been nearly a decade in the making. The store includes an auto center, pharmacy, full grocery, Dunkin Donuts, hair salon in addition to its full line general merchandise selection.

O’Reilly Auto Parts and Bond Auto Parts, Inc. announced that they have entered into a definitive agreement under which O’Reilly will purchase substantially all of the assets of Bond Auto. Bond Auto Parts was founded in 1956 by Earl and Mary Bond of Barre, Vermont. The company has since expanded with 24 stores in VT, 17 in NH, 2 in NY and 5 stores in MA. City Market, a Member-owned cooperative in Burlington, has declared their annual Patronage Refund to Members. Member purchases totaled over 68% of Co-op sales in fiscal year 2016, and the City Market Board of Directors has voted to return over $656,000 in cash to Members as this year’s Patronage Refund. On November 10, the Co-op mailed checks to 11,450 Members, with an average check of $57. As in years past, City Market will facilitate donations of Members’ Patronage Refund checks to Hunger Free Vermont.

The VRGA Legislative Fund is used to ensure decision makers in Montpelier hear your voice consistently throughout the legislative session

The option to support our legislative efforts is included on your annual membership renewal invoice. However, you are welcome to make a donation anytime throughout the year by calling 802-839-1928 or sending a check with the memo simply stating: Legislative Fund Contribution.

A special thank you goes out to the 31 MEMBERS who contributed to VRGA’s legislative efforts in 2016

Associated Grocers of NE - Cambridge Village Market - Cartier's Meats - Clark's Quality Foods - Coburns' General Store - Coca-Cola Bottling Co of NNE - Craftsbury General Store - Crossroads Discount Beverage & Deli - Crossroads Travel Center Davis Family Deli Provisions - Derby Village Store - Dorset Union Store - Hannaford General Office - Harborside Harvest Market - Jiffy Mart - Jimmy Kwik Store - Kamuda's Supermarket - Lipton Energy - Marty's 1st Stop - Mehuron's Market - North Bennington Variety - Pearl Street Beverage - Pump & Pantry - River Road Beverage - Rivers Edge Quik Stop - Small City Market - Stowe Mercantile - The Morgan Country Store - The Village Butcher - Village Peddler - Wayside Country Store - Will's Store.

MEMBER SPOTLIGHT Little known fact: Oil n Go is 100% local. Started here in Vermont, and still owned and operated from right here in the state, Oil n Go's auto service business began in 1996 with one store and then expanded to two stores in 2000. "Most people think Oil n Go is a national chain, but we're not. We worked hard to not only meet but exceed national level service and standards, and we have that polished professional look, but we've always been a Vermont only business and proud of it," says Rob Remillard, Oil n Go's owner and founder. Beyond quick-service, no appointment oil changes, Oil n Go also specializes in a wide range of automotive services including major repairs, scheduled routine maintenance and tire sales. With ASEcertified technicians on staff every day, Oil n Go can service a customer's vehicle literally bumper-to-bumper. "We do so much more than just oil changes at our shops," says Rob. They are famous for their "17 point service" that comes standard with every oil change and includes checking and topping off certain fluids, setting tire pressure, vacuuming carpets, washing windows and more. Aside from providing excellent car care and renowned customer service, Oil n Go also has an eye to the environment. Used motor oil is one of the worst pollutants out there: just one oil change worth of uses motor oil can affect a million gallons of water: enough to supply 50 people for an entire year.

To that end, Oil n Go makes sure every single drop of oil is accounted for and properly recycled. They also promote greener, synthetic oil. Rob Remillard, owner and founder of Oil n Go, believes that a key reason to go into business for yourself is to have better control of your future. And in his work itself, Rob loves being able to control the quality of service Oil n Go provides its customers. Exceeding customers' expectations is what Oil n Go is all about. Success is measured as much by the bottom line as it is through the reaction and comments of the customers. Rob says, "It's very rewarding to have your customers feel like family. And feedback is so important- we make our service experience better every time a customer tells us how we are doing: good or bad." Customer service transcends the actual nature and function of the business itself, and is a true passion for Rob. If he wasn't running one of Vermont's largest auto service companies, Rob is certain that he would still be involved in a service business that "has no limits as to it's customer service environment." When not operating Oil n Go, Rob is a devoted family-man, staying busy being an active husband and parent to four amazing children, with ages from 21 to 4 years old. He is an avid golfer and proudly participates in many non-profit causes annually.

Contact Oil n Go South Burlington & Essex Junction oilngo.com | Facebook | Twitter

Vermont Welcome Center Counts Sept.

August

% Change last month

Last Year

% Change last year

Total

89,383

114,312

84,017

-21.8%

6.4%

Guilford

64,836

80,157

60,167

-19.1%

7.8%

Fair Haven

16,578

20,157

14,461

-17.8%

14.6%

Georgia (Southbound)

7,969

13,998

9,389

-43.1%

-15.1%

Upcoming Events VPA Fall Meeting December 7, 2016 Montpelier, VT

State House Tasting Reception February 21, 2017 Montpelier, VT

Legislative Day & Luncheon February 7, 2017 Montpelier, VT

VRGA Convention & Expo April 27 & April 28, 2017 Burlington, VT

What’s next for YOU AND YOUR BUSINESS?      

Suggest to us a topic you would like to see offered at an event or as a webinar Connect with fellow members on social media, by mail by requesting a complete member address list or at an event Update your business page on vtrga.org (add images, categories, contact information, or business description) Advertise on the website, in the monthly sales slip newsletter or in our legislative e-updates Be a sponsor at one of our upcoming events or contact us about a new event opportunity Enroll in one of many money saving programs listed on vtrga.org/ benefits & vtrga.org/services

Tell us how we can best help you achieve success! Email [email protected] or call (802) 839 - 1928 Upcoming DLC Training Classes for Second Class Licensees To register for any of the DLC seminars, visit: https://secure.vermont.gov/DLC/eventreg or call 802-828-2339

Welcome to the following businesses that recently joined the Vermont Specialty Food Association. Happy Bird Poultry Farm Ember Boyle Isle La Motte, VT 802-928-3761 facebook.com/happybirdpoultryfarm

Sweet Doe Dairy LLC Lisa Davis Chelsea, VT 802-685-4960 sweetdoedairy.com

O Bread Bakery Sophie Conway Shelburne, VT 802-985-8771 obread.com

Pin Up Pickles Rachel Smith New Haven, VT 802-399-4631 pinuppickles.storenvy.com

Road Trip Food Company Stephenie Frawley Dorset, VT 802-238-9600 roadtripfoodcompany.com

Monkey Moon Bakery Chelsa Roy Brattleboro, VT 802-579-1460 facebook.com/monkeymoonvt

NEW ADVERTISING OPPORTUNITIES AVAILABLE    

Connect with us:

148 State Street Montpelier, Vermont 05602 and at vtrga.org RETURN RECEIPT REQUESTED Since 1934

VRGA will once again be sending a weekly legislative email update, as well as holding bi-weekly calls, beginning in January. We will send further information as we near the start of the legislative session.

SAVE THE DATE: Tuesday, February 7th is Legislative Day & Luncheon

VRGA IS YOUR RESOURCE FOR LEGISLATIVE UPDATES

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