FoodScan

November 30, 2009

GR COMMITTEE MEETS AND RANKS PRIORITIES FOR 2010 ---"WINE" AND "BOTTLE" REMAIN AT THE TOP. Although the leading priorities are the same, the emphasis shifted for 2010 during FIA's Government Relations Committee annual planning meeting on November 19th. Wine in Grocery Stores (WIGS) is ranked as the top legislative issue with caution expressed to retain the 3.5¢ "Bottle Law" handling fee should efforts be made to reduce it.  With the recently revised WIGS proposal offering liquor stores more commercial opportunities in exchange for grocery stores being permitted to sell wine and a reduction in the franchise fee (a one-time/store payment for the right to sell wine) from .46% of sales to .33% with this fee transferring upon the sale of a store, the complexion of the "wine" debate has changed substantially.  Combined with New York State's growing deficits and continued "wine" support from the Governor's Office, WIGS appears to be better positioned for positive consideration by the NYS Legislature.  While "Bottle Law" expansion captured only unsugared water and increased the handling fee from 2¢ to 3.5¢, the new statute also required that chains of ten or more units within NYS must have a specific number of RVM's installed.  The Government Relations Committee is seeking a reduction in this mandate.  Included among other ranked proactive issues that FIA will be aggressively lobbying are the following: an increase in check cashing fees; retention of the 3.5¢ handling fee; WIC master license; credit card interchange fees; workers' compensation reform; and tobacco licensing fees.  Defensive issues include: further "Bottle Law" expansion; paid family leave; mandated health benefits; plastic bag bans/taxes; caloric value posting in food stores; privacy/Social Security Number restrictions; truck --- local road restrictions; and "fat" tax.  As usual, setting the agenda and tone for the next NYS Legislative session will be the Governor's mid-January "State of the State" address and the presentation of his 2010-11 fiscal year Executive Budget to the Legislature on January 19th.  Invariably, these presentations are of keen interest.  However, with New York's unrelenting deficit battles, Gov. Paterson's fiscal 2010-11 budget and 2010 "State of the State" will rivet attention on where new revenue will be raised and where NYS dollars will be cut.

FIA ACTIONS

FIA’s Interests to be Represented at December 2^nd “Wine” Roundtable Sponsored by Legislators Krueger and Morelle. This Wednesday, December 2^nd, Senator Liz Krueger (D-Manhattan), Finance Committee Vice Chair, and Assemblyman Joe Morelle (D-Rochester), Insurance Committee Chair --- both lead sponsors in their respective chambers on the industry’s proposal to sell wine in grocery stores (WIGS) --- are conducting a New York City roundtable discussion on the issue. All stakeholders have been invited to participate. The purpose of the roundtable is to bring all sides of the WIGS debate together in order to address varying viewpoints. FIA’s interests will be represented by two independents Paul Fernandez, Met Foods & NSA Board member and Deric West of Honeoye Falls Marketplace. Look for a report on the roundtable in the December 14^th edition of FoodScan.

 FIA Meets with Senate Minority Leader Skelos. During a one-hour luncheon session, a small gathering of FIA members, staff, and other retailers met with Senate Minority Leader Dean Skelos (R-Nassau) as he reacted to the recent local election results and the NYS budget deficit controversy. With Democrats losing major races in several key jurisdictions, Skelos felt that these results bode well as the GOP prepares to win back control of the Senate in 2010 after losing the majority in 2008 by a scant two seats, 32-30. Regarding the NYS budget deficit, Skelos cautioned that he would fight any cuts in education since shortfalls would be thrust onto overly-burdened real property taxpayers. Finally, Skelos offered that, although in the minority, Senate Republicans could be “difference makers” on various industry issues.

CAPITOL CURRENTS 

The Past Nine Months Have Devastated Governor Paterson’s “Favorability” Rating with a 180º Turnaround. Nine months is not only the gestation period for humans, the American buffalo, cows, and otters but also for a reversal of Gov. Paterson’s political fortunes. As pundits say, a year is a lifetime in politics. For Governor Paterson, it’s even less. Towards the end of January 2009, Siena Research Institute reported that the Governor polled 60% favorable and 23% unfavorable --- a very comfortable margin of acceptance by the electorate. But, through a combination of New York’s continued faltering economy, Paterson’s perceived ineptitude in addressing the State’s deteriorating fiscal crisis (shared with the NYS Legislature), the fumbling of his U.S. Senate appointment to replace former NYS Senator and Secretary of State Hilary Clinton, an exodus of key staff, and other real and imagined deleterious circumstances, the Governor’s “favorables” flipped within nine months and, by the end of October, his ratings plummeted to 61% unfavorable and 27% favorable. In a general election match-up, former New York City Mayor Rudolph Giuliani would whip him 56%-33%, while in a Democratic primary NY Attorney General Andrew Cuomo crushes him 70%-20% (incidentally, in this same Siena poll, Cuomo tops Giuliani 50%-43%). But, “Election 2010” is nearly year away and, as they say, a year is a lifetime in politics.