Minnesota Petroleum Marketer - Constant Contactfiles.constantcontact.com/702e4b12101/6c6ef5d1... · · Current CDL holders seeking a license upgrade (e.g., a Class B CDL holder seeking

PETROFUND FEE NOTICE

The Petrofund Board voted, at it’s

September 14th , 2016 regular meeting, to impose the Petrofund Fee from

January 1, 2017 - April 30, 2017

Issue #1906 December 16,2016

Minnesota Petroleum Marketer

Issue #1906 December 16, 2016

Inside this Issue:

MINNESOTA PETROLEUM MARKETERS ASSOCIATION

3244 RICE STREET ST. PAUL, MN 55126-3047

651/484-7227 800/864-3813 FAX 651/484-9189

Kevin Thoma—Editor E-Mail: [email protected]

www.mpmaonline.com

The Minnesota Petroleum Marketer (ISSN 1062-8282) is published semi-monthly by the Northwest Petroleum Association dba Minnesota Petroleum Marketers Association. Subscription cost $25.00 per year. POSTMASTER: Send address changes to Minnesota Petroleum Marketer at address above.

Happy Holidays! 2

Minimum Legal Cigarette Prices 3-4

LIEAP 5

Play At Pump 5

USDA Snap 6

2017 Convention 7

Training Standards for New Truck Drivers 8

PMAA News 9

Insurance Corner—Tips for Using Ice Melt Effectively 10

Legal Corner 11-12

Classifieds 13

Bulletin No. 1906 -2- December 16, 2016

To All of You…..

From All of Us at MPM,

Kevin Holly Angie & Jana


MINIMUM CIGARETTE PRICES


CIG PRICES (CONT’D)


LIEAP

We want to reach out to your low income customers who need help paying their bills or repairing their furnace. The EPA program year is well underway and we are beginning to get an idea of how this EPA season looks. While we are just en-tering the heart of the heating season, initial data indicates a continued reduction in the demand for the program. Since this means we will have resources to help people, we want to do our diligence in assuring we reach those who don’t know about or have not yet applied for the program. The improved economy, lower fuels costs and recent mild winters have contributed to the trend of reduce demand of EPA. Still we know only about 1/3 or eligible households apply for Energy Assistance, so there are still households who need the help. As you know, EPA targets low income seniors over 60, people with disabilities and families with children under 6 years old. But any households at or below approximately 50% of the state median income are eligible. We are asking for energy vendors to consider doing special outreach efforts. Whether that is a targeted mailing, out-bound calls or through customer service representatives, we are hoping vendors can take this opportunity to connect with those eligible households in need. I know its still early in the program year but the majority of applications come between September and December, and with the numbers we are seeing, it is clear additional outreach will help get these resources to customers in need. If you do perform outreach, I’d appreciate it if you could let me know what you are doing. Jon Brown—Energy Vendor Management, Minnesota Department of Commerce P: 651-539-1869 Email: [email protected]

PLAY AT THE PUMP (NACS)

Last January, the North Carolina Education Lottery helped c-stores make it more convenient for customers to play Cash 5, Mega Millions and Powerball by adding an option to play the lottery at the pump, News & Observer reports. The cloud-based payment platform, Play at the Pump, let customers swipe their debit or credit card (plus a $1 transaction fee) while getting gas.

Developed by Linq3, Play at the Pump touted that it would interact with the 70% of customers who only get gas at con-venience stores. “It’s about convenience and security,” said Matt Lovelle, chief operating officer for Linq3. “Families don’t have time to go in the store.”

But that added convenience hasn’t made Play at the Pump popular in North Carolina. Nearly two years later, 208 gas sta-tions have the option, out of approximately 6,330 locations in the state. When the Powerball jackpot ballooned to a record $1.5 billion in January 2016, less than $150,000 in sales were made at Play at the Pump, compared to more than $86 million for regular tickets.

Part of the slowness in convenience store owners adapting to Play at the Pump is that lottery ticket sales bring customers inside the store. “The two lowest margin products in a convenience store are fuel and lottery tickets,” said Jeff Lenard, NACS vice president of strategic industry initiatives. “You want to be mindful of how you offer them, because they lead customers to other items.”

“It’s a decision that each retailer has to make,” said Gary Harris, executive director of North Carolina Petroleum and Con-venience Marketers. “Outside sales give retailers a smaller percentage than indoor sales. That’s a disincentive.” For ex-ample, retailers receive a 3% commission per sale for Play at the Pump transactions, so they must consider what they are losing in terms of ancillary sales for in-store lottery dollars.

“We sell convenience,” Lenard said. “It’s about a customer coming to your store and not someone else’s. You’ve differen-tiated yourself, you’ve made yourself more convenient and you may have even taken pressure off of your gas price.”


USDA SNAP

While there were some significant changes from what was originally proposed, the final rule still goes further than Congressional intent. Below is a quick summary:

· To continue to accept SNAP benefits at your store you will need to have at least 84 staple food items

(not 168 as was proposed) on your shelves regularly starting one year from the date that this rule

becomes effective. This minimum stock of 84 items includes: 7 varieties in each of the 4 staple food

categories (1. Veggies/fruits 2. Dairy 3. Meat 4. Bread/cereals, with 3 units of each variety.

· If you don’t yet accept SNAP benefits at your store, but want to apply to do so, you will need to have

at least 84 staple food items on your shelves regularly starting four months from the date that this rule

becomes effective. (Should be published in the Federal Register soon)

· Multiple ingredient foods will continue (proposed rule wouldn’t count multiple ingredient

foods) to be counted as staple foods in the category of their main ingredient. This means that a can

of cream of mushroom soup with a listed main ingredient of “mushrooms” would be considered a sta-

ple food in the vegetables or fruits staple food category.

· Also if more than 50% (not 15% as was proposed) of your business’s total gross sales come from

prepared foods cooked or heated onsite by the retailer, before or after purchase, you will no longer be

eligible to accept SNAP benefits;

· If you are a store owner who accepts SNAP benefits and your store breaks SNAP rules, then your

name, the name of your store, and the nature of your violation will be made public starting on the date

that this rule becomes effective.

· The rule does not change what food is eligible for purchase with SNAP benefits.

The table below shows the number of items required under the new requirement, the proposed requirement, and the old requirement.

NUMBER OF STAPLE FOOD CATEGORIES

NUMBER OF STAPLE FOOD VARIETIES PER

CATEGORY

NUMBER OF STOCK-ING UNITS PER VARI-

ETY

TOTAL NUMBER OF FOOD ITEMS REQUIRED

New Requirement 4 7 3 84

Proposed Requirement 4 7 6 168

Old Requirement 4 3 1 12


2017 CONVENTION


TRAINING STANDARDS FOR NEW TRUCK DRIVERS

The U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) announced a Final Rule establishing comprehensive national minimum training standards for entry-level commercial truck and bus operators seeking to obtain a commercial driver’s license (CDL) or certain endorsements. The standards established in today’s rule address the knowledge and skills necessary for the safe operation of commercial motor vehicles and also establish minimum qualifications for entities and individuals who provide entry-level driver training. The entry-level driver training Final Rule retains many of the consensus recommendations of a negotiated rulemaking committee comprised of 25 stakeholders and FMCSA representatives. “Ensuring that drivers are properly trained is a critical element in improving road safety for everyone,” said U.S. Trans-portation Secretary Anthony Foxx. “The entry-level training standards for large truck and bus operators put forth today exemplify a commitment to safety from a broad coalition of commercial motor vehicle stakeholders.” The comprehensive CDL training requirements, which emphasize safety and promote driving efficiency, will result in lives saved, reductions in fuel consumption and emissions, vehicle maintenance cost reductions, and industry-wide per-formance improvements. The rulemaking was mandated by Congress in the Moving Ahead for Progress in the 21

st Cen-

tury Act (MAP-21). “This new rule represents the culmination of a sustained and coordinated effort to identify appropriate pre-licensing CDL standards that will enhance safety on our Nation’s roads,” said FMCSA Administrator T.F. Scott Darling, III. “Without the collective efforts of our stakeholders working closely with us, we could not have completed this important lifesaving rule. We especially appreciate the Entry-Level Driver Training Advisory Committee for its tireless efforts and expertise to en-hance roadway safety through the negotiated rulemaking process.” Under the Final Rule announced today, applicants seeking a CDL would be required to demonstrate proficiency in knowledge training and behind-the-wheel training on a driving range and on a public road, with training obtained from an instructional program that meets FMCSA standards. There is no required minimum number of hours for the knowledge or behind-the-wheel portions of any of the individual training curricula, but training providers must determine that each CDL applicant demonstrates proficiency in all required elements of the training in order to successfully complete the pro-gram. Mandatory, comprehensive training in all 50 states, the District of Columbia, and all U.S. territories would apply to the following individuals under the Final Rule:

· First-time CDL applicants, including: o “Class A” CDLs o “Class B” CDLs

· Current CDL holders seeking a license upgrade (e.g., a Class B CDL holder seeking a Class A CDL) or an addi-tional endorsement necessary to transport hazardous materials, or to operate a motorcoach or school bus.

All of these individuals are subject to the entry-level driver training requirements and must complete a course of instruc-tion provided by an entity that meets the qualification standards set forth in the Final Rule. FMCSA anticipates that many entities currently providing entry-level driver training, including motor carriers, school districts, independent training schools, and individuals will be eligible to provide training that complies with the new requirements. Drivers who are not subject to or are excepted or exempted from federal CDL requirements are not subject to this Final Rule. For example, military drivers, farmers, and firefighters who are excepted from federal CDL requirements are not subject to this Final Rule. The entry-level driver training Final Rule goes into effect on February 6, 2017, with a compliance date of February 2020. Visit the following link to view the entry-level driver training Final Rule: https://s3.amazonaws.com/public-inspection.federalregister.gov/2016-28012.pdf . Visit the following link to learn more about Entry-Level Driver Training: www.fmcsa.dot.gov/eldt. Visit the following link to view the list of Entry-Level Driver Training Advisory Committee mem-bers: https://www.fmcsa.dot.gov/advisory-committees/eldtac/entry-level-driver-training-advisory-committee-members.


PMAA NEWS

EPA FINALIZES 2017 OBLIGATED BLENDING VOLUMES The U.S. EPA finalized the volume requirements and associated percentage standards that apply under the RFS program in calendar year 2017 for cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel. The EPA also finalized the volume requirement for biomass-based diesel for 2018. The final standards meet or exceed the volume targets specified by Congress for total renewable fuel, biomass-based diesel, and ad-vanced biofuel. Although the increase in obligated volume requirements represents a 10.7 percent across the board ethanol blend, PMAA believes that refiners will continue to use RIN credits to maintain E10 blended gasoline for the foreseeable future. Renewable Fuel Volume Requirements for 2014-2018:

Total renewable fuel volumes grow by 1.2 billion gallons from 2016 to 2017, a 6 percent increase. Advanced renewable fuel, which requires 50 percent lifecycle carbon emissions reductions, grow by roughly 700 million gallons between 2016 and 2017. Non-advanced or “conventional” renewable fuel increases in 2017 meet the 15 billion gallon congressional target for corn ethanol fuel. The standard for biomass-based biodiesel, which must achieve at least 50 percent lifecycle greenhouse gas emission reductions compared to petroleum-based diesel, grows by 100 million gallons. The required volume of biomass-based diesel for 2017 is twice as high as the minimum Congressional target. Cellulosic biofuel, which must achieve at least 60 percent lifecycle greenhouse gas emissions reductions, grows by 35 percent over the 2016 standard. The advanced biofuel standard, which is com-prised of biomass-based diesel, cellulosic biofuel, and other biofuel that achieves at least 50 percent lifecycle greenhouse gas emissions reductions, increases by 19 percent over last year’s obligated volume. RINs prices on the open market rose significantly after the 2017 obligated volumes were announced as traders speculate on future demand required to prevent a move to E15 by obligated parties.

PMAA is disappointed but not surprised that the outgoing Obama Administration decided to raise the ethanol mandate. PMAA will now work with the incoming Trump Administration to cap the ethanol mandate at 9.7 percent of gasoline supply going forward. Capping the ethanol mandate at 9.7 per-cent will resolve UST compatibility concerns with E10 plus blends, reduce RIN prices which will result in lower RFS compliance costs for refiners and preserve the ability for position holders at the rack to blend.

VISA, MASTERCARD DELAY EMV DISPENSER PUMP LIABILITY SHIFT DATE TO 2020 Visa and MasterCard announced that they are delaying the EMV liability shift date for retail dispensers from October 1, 2017 to October 1, 2020. Given the lack of EMV regulatory compliant hardware, both companies decided to delay the liability shift. EMV, which stands for Europay, MasterCard and Visa, is a global standard for credit and debit cards that are equipped with computer chips to authenticate chip-card transactions.

HEALTHCARE RELIEF IN SIGHT The Small Business Healthcare Relief Act was recently added in a legislative bill known as the 21st Century Cures Act. Late Wednesday night, the House passed the 21st Century Cures Act with ease by a vote of 392-26. The bill now moves to the Senate where it is expected to be approved next week. If passed, this legislation would allow businesses with fewer than 50 employees to once again reimburse employees for their premiums on a pre-tax basis for individual coverage without penalty. PMAA has been working the Small Business Legislative Council (SBLC) for months on this issue and we are pleased to see the progress it has made.

FDA “RE-CLARIFIES” MENU LABELING COMPLIANCE DATE While FDA has delayed enforcement of the federal menu labeling standard until May 5, 2017, states like California may begin inspecting sites subject to the statewide standard as early as yesterday The compliance date of FDA’s menu labeling rule has been pushed back a number of times since the rule was finalized in December 2014. The rule was originally supposed to take effect on December 1, 2015, but prior to that date, FDA agreed to extend the compliance date one year to December 1, 2016, in response to concerns from the convenience store, restaurant and grocery industries and to accommodate the issuance of clarifying guid-ance. Congress then attached a condition to its 2016 Omnibus Appropriations Bill which prohibited FDA from using any funding to implement, adminis-ter, or enforce the menu labeling requirements until May 5, 2017 (or one year after FDA finalized its guidance document). FDA has confirmed that, although the agency will not begin enforcing the menu labeling law until May 5, 2017, the official compliance date remains December 1, 2016. PMAA has been pushing for the “Common Sense Nutrition Disclosure Act” to be included in the continuing resolution to be passed before the end of year. The legislation would modify the menu-labeling language in Obamacare to permit retailers to identify a single primary menu while not having to include nutrition labeling in other areas of the store. Furthermore, the bill clarifies that advertisements and posters do not need to be labeled and pro-vides flexibility in disclosing the caloric content for variable menu items that come in different flavors or varieties, and for combination meals. Lastly, the bill ensures that retailers acting in good faith are not penalized for inadvertent errors in complying with the rule and stipulates that individual store loca-tions are not required to have an employee “certify” that the establishment has taken reasonable steps to comply with the requirements.

2014 2015 2016 2017 2018

Cellulosic biofuel (million gallons) 33 123 230 311 n/a

Biomass-based diesel (billion gallons) 1.63 1.73 1.9 2.0 2.1

Advanced biofuel (billion gallons) 2.67 2.88 3.61 4.28 n/a

Renewable fuel (billion gallons) 16.28 16.93 18.11 19.28 n/a


INSURANCE CORNER

Six Tips for Using Ice Melt Effectively When it comes to maintaining sidewalks and parking lots for your business this winter, ice melt can be a valuable tool. Make sure you’re getting the most out of your ice melt with these tips.

1. Consider the Surface

Ice melt is not recommended for new concrete less than a year old, or on porous walkway surfaces

such as brick. To reduce damage on concrete, be sure to remove the slushy layer once the ice melt

has done its job.

2. Choose the Right Product

The best ice melt product for your business depends on a variety of factors, including expected tem-

peratures, surface materials and the need to protect any vegetation. Magnesium chloride products

may have a harmful effect on concrete. If that’s a concern, you may want to consider potassium chlo-

ride blends instead.

Don’t limit your slip-prevention tools to just ice melt. In some cases, you may find that applying a trac-

tion aid (e.g., coarse sand, poultry grit or oil absorbent) can be a helpful treatment for icy surfaces.

3. Put It Where It Counts

Ice melt must be applied directly on the walking surface to be effective. Ideally, this should happen be-

fore a snow storm. We recommend a thin mist of a liquid ice control product before the precipitation

begins. If pre-storm application isn’t possible, make sure you clear the snow first and then apply the

ice melt to ensure it actually makes contact with the walking surface.

4. Don’t Use Too Much

According to manufacturers, less is usually more when it comes to ice melt. Applying too much can

actually be counterproductive when the extra is tracked inside, creating a slippery residue on floors.

Help control your application by using handheld fertilizer spreaders for small areas and walk-behind

spreaders for large areas. Colored ice melt can also give you a visual indication of how much has

been put down.

5. Keep It Outside

Help reduce tracked-in ice melt residue by placing mats both inside and outside all entrances. Hard

surface floors should be mopped as needed throughout the day, and mats should be replaced when

they become saturated.

6. Don’t Forget About Refreeze

Melted ice can refreeze overnight, creating slippery and hard-to-see patches of “black ice.” Inspect

walkways before the day’s foot traffic begins so you can treat slippery spots with ice melt or traction

aids. Mark especially dangerous spots with cones or signs.

Article courtesy of the EMC Insurance Companies Risk Improvement Department, Des Moines, Iowa. For more information, visit www.emcins.com and select Loss Control.


Previously we have discussed Minnesota's new LLC Act, which governs any new LLC formed in Min-nesota. However, in 12 months, that Act will govern every Minnesota LLC ever formed in this state, new or old. Most jobbers and C-store owners, and other businesses in this industry have LLCs within their overall business model. Today we will highlight these changes, which become law after Decem-ber 31,2017.

• Voting and Monetary Rights

Under the old law, LLC voting rights and rights to distributions are determined by how much capital contributions any particular owner has made. We tend to think of this the way we do corporations, and refer to owners as a 51% owner, or a 10% owner, and so on. However, under the new law, cap-ital contributions do not matter as it concerns voting rights and monetary rights (See Minn. Stat. §322C.0404). Legislation was enacted subsequent to the new law wherein existing companies can continue to vote and make distributions based upon contributed capital (See 322C.1204 subd. 3(v)), however recognition of such in company minutes would be prudent if not necessary, especially given the changes to the rules on Operating Agreements, discussed below. New LLCs formed can also allow for voting and monetary rights to be determined by capital contribution, however the default under stat-ute is "one person one vote," and filing for an LLC using a template from the Minnesota Secretary of State or from an online legal services website will lead to that company structure.

• Operating Agreement I Buy Sell Agreement I Member Control Agreement

Under the old law, when LLCs had more than one owner, and even often with the LLC that did have only one owner, an Operating Agreement was drafted, which, like Bylaws of a corporation, set forth the duties of the owners, the board of governors, and the managers of the LLC. Additionally, either a Buy Sell Agreement or a Member Control Agreement was entered into, whereby restrictions were placed upon any owner's ability to transfer his or her ownership in the company to someone else. Any compa-ny wants to control who its owners are, and these documents help protect against creditors, ex-spouses, and others from becoming owners of the LLC.

Under the new law, Operating Agreements and Buy Sell Agreements I Member Control Agreements are now combined, and are governed by the same rules, whether or not the specific document is entitled "operating agreement" (See generally Minn. Stat. §322C.0110, et seq.). The Operating Agreement un-der the new law does not have to be in writing (although it can be), it can also be oral, it can be within a record, or it can be implied by the actions of the owners of the company, or any combination thereof (See Minn. Stat. §322C.O102 subd. 17). So, while you may have a written document, it can be altered by your words, your actions, or implications of your words and actions. Further, the term "record" can be anything stored in an electronic or other medium, meaning emails and scribbles on cocktail napkins which may be considered part of the company's "record" under this new law (See Minn. Stat. §322B.Ol02, subd. 22). In other words, one or a series of emails, voicemails, or even text messages could be interpreted to be an Operating Agreement under this new law.

Continued….


LEGAL CORNER cont...

• Management of the LLC and Fiduciary Duties Under the new law, LLCs must decide whether or not they are managed by the owners (member- man-aged), managed by the managers (CEO, CPO, etc.), or managed by the board of governors. Each of these options holds different outcomes for what is required among these respective parties. The LLC can eliminate some or all of the fiduciary duties (such as the Duty of Loyalty, Duty of Care) that current owners, governors, and managers owe to the company and to each other, so long as such elimination is not "manifestly unreasonable (See Minn. Stat. §322C.0110, subd. 1, 3, 4, 7, and 8). What the term "manifestly unreasonable means exactly is still unknown, as the courts have yet to rule on much of this new law.

• Minority Owner Disputes

The new law does a few things as it concerns the potential of minority owners suing those owners in control of the company. First, the new law gets rid of the previous law's default acknowledgement of preemptive rights. The new law is silent as to preemptive rights (rights that allow minority owners to maintain their current level of ownership by giving them a right of first refusal prior to any new mem-bership), and minority owners no longer have these rights as a default.

Further, there is no equivalent in the new laws to Minn. Stat. 322B.383, which grants dissenting own-ers the right to a fair value buyout of their ownership interest under certain circumstances. What is proscribed in the Operating Agreement concerning any buyout of a minority owner's interest should be determinative, however recall that the Operating Agreement can be modified any number of ways, whether intentional or not.

Additionally, under the old law owners could not bring a direct action against an LLC, but could only bring derivative actions, i.e. an action brought upon behalf of the company. Under the new law, an own-er can bring both a direct and a derivative action (See Minn. Stat. §322C.0902). However, much like a corporation, LLCs may now create a "special litigation committee," to determine if the derivative claims have any merit (See Minn. Stat. §322C.0905). Special litigation committees are often used by corpora-tions to quash derivative claims brought by any particular owner if the lawsuit is not "in the best interests of the company."

So where does that leave you and your LLC? You should seek legal counsel before the end of 2017 if you are an owner of any LLC in Minnesota to fully appreciate where you stand with your company doc-uments. Depending upon your company structure, you may not need to make any changes, you may need to make only a few changes, or you may need to make substantial changes. Annual corporate review is always a good idea, but we cannot overstate the importance of doing so before December 31, 2017 with these new laws. It is not good business practice to fly blind, and these significant chang-es to Minnesota's LLC laws are numerous and could have unintended consequences to your business and to your own personal livelihood if you don't f ind out where you stand.

At Libby Law Office, law firm of the :MPMA, we would be happy to sit down with you and help advise and protect your business, and navigate these new changes to the law.


CLASSIFIEDS

NOTE: Classified ads are accepted on a first come, first serve basis. The cost is $3.00 a line for non-members. The Association office does not look into nor endorse the products and services offered through the Newsletter ads. FOR SALE: 1999 chev c7500 propane delivery bobtail, 3126 cat, 6 speed, ac, 277,000 mi, 3000 gal Westmor tank, VK-Apr 16, hydro-2015, very nice condition, ask-ing $19,950 obo, call Shane, 701-238-1281 FOR SALE: C-Store equipment for sale. We have equipment from a store closure that must go. Shelving, displays, signage, warmers, fryers, breading table, coffee equipment, etc. Call Josh for details at 507-452-4743 FOR SALE: Convenience Store located at the intersection of Hwy’s 59 & 67 in Clark-field. Many updates inside and out including complete store remodel in 2008 with new electrical, plumbing, flooring, siding, etc. LED lighting in cooler & canopy & a steel roof new in July 2014! New walk-in cooler & freezer installed in kitchen in June 2016. Kitchen sells breakfast, lunch and dinner. Also includes 2-6,000 gal. fiberglass tanks, 24-hour pay-at-the-pump, Security camera system, ATM Machine is owned, Propane Exchange program and much more! Environmental work has been completed. In-ventory in NOT included in price. $149,900. Call Jenni Shuler (320) 669-4961 FOR SALE: Coats-1055 computer wheel Balancer $2350.00. Lanair used oil furnace, 200,000 BTU’s FI $1200.00. Call Ron at 218-371-6771 FOR SALE: 2005 Western Star—Mercedes motor, 13 speed, complete records avail-able. $13,200.00 can be seen in Milaca, MN. Call Gary at 1-563-845-9711

REMINDER—This newsletter is available in an electronic version to be sent directly to your email. If you would like to receive the newsletter electronically, email Holly Werner at [email protected] and request the electronic version of the MPM Marketer.

Minnesota Petroleum Marketers Association 3244 Rice Street St. Paul, MN 55126-3047

Documents

Minnesota Petroleum Marketer - Constant Contactfiles.constantcontact.com/702e4b12101/6c6ef5d1... · · Current CDL holders seeking a license upgrade (e.g., a Class B CDL holder seeking