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Y o u r C o n n e c t i o n T o T h e V o i c e O f R e t a i l i n g ™
T h e O f f i c i a l P r i n t e d N e w s l e t t e r O f T h e P e n n s y l v a n i a R e t a i l e r s ’ A s s o c i a t i o n • w w w . p a r e t a i l e r s . o r g
V o l u m e 3 6 , N u m b e r 5 , O c t o b e r 2 0 0 3
Monday, September 29, 2003marked the 21st Annual
PRA/PaRPAC Legislative Receptionand Silent Auction. As always, thehighly anticipated event was an enjoy-able night for all!
Despite competition from six otherlegislative events that same evening,over 200 legislators, Capitol Hillstaffers, member retailers and gueststurned out. The most exciting occur-rence of the evening was a visit from
Governor Edward G. Rendell. The gov-ernor graciously took time to speak withconstituents and pose for photographswith dozens of star-struck admirers.
Also in attendance was Speaker ofthe House John Perzel, a long-time sup-porter of the PRA.
With donations of nearly 200 itemsfrom large and small retailers fromacross the state, the Auction raised over$9000 for the PRA and PaRPAC.Thank you to all who contributed mer-
chandise and to all of ourreception sponsors (See pages4 and 7 for complete list ofsponsors and contributors).
Earlier in the day, thePRA held its Annual Board ofDirectors meeting and AwardsLuncheon. During the lun-cheon, Brian Rider presentedThe Bon Ton’s Bob Stern with
21st Annual Silent Auction AUCTION AND LEGISLATIVE RECEPTION DRAWS BIG ITEMS AND BIG NAMES
Retailer Express Lane5 i t e m s o r l e s s f o r f a s t
c h e c k o u t !
Streamlined Sales Tax Bill hits DC.See page 2.
Important information aboutthe Visa/MC Settlement. Readour Chairman’s report on page 3.
We say goodbye to a good friendand colleague on page7.
Increasing Health Care costs: anational crisis. See page 9.
The National Do Not Call Listwent into effect October 1. Readabout it on page 12.
continued on page 8
Above: Gov. Rendell took amoment for a photo opwith Stephanie and Aman-da. Right: Brian presentsBob Stern with the “Retail-er of the Year” award. FarRight: Dave Mayernik,Janie Robbins and Rep.Harry Readshaw show theirexcitement over the mer-chandise.
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Published bi-monthly in the interest of a proficient retail indus-try in the state of Pennsylvania. Opinions expressed by indi-viduals in The Retailer are not necessarily endorsed by the Penn-sylvania Retailers’ Association.
Pennsylvania Retailers’ Association 224 Pine Street • Harrisburg, PA 17101-1325
(717) 233-7976 • 1-800-PA RETAILwww.paretailers.org
Chairman of the Board: Dean Sheaffer • President & Pub-lisher: Brian A. Rider •Director of Business Operations:
Karen Gochenaur •Director of Public Affairs & MembershipDevelopment, Editor: Stephanie FrederickJohnston
Legislative & Marketing Assistant: Amanda L. FletcherAssociation Counsel: Robert A. Mills, Esq.,
McNees, Wallace & Nurick.
Address all correspondence, pictures, and news articles to theabove address. Closing date for news is the 15th of the monthpreceding each month’s edition. For information pertaining toadvertising, please contact the Editor at the above address orphone number. The right is reserved to reject any advertising.
Postmaster: Send address changes to the above address.Printed by Graphtech, Harrisburg, PA 17110
continued on back page
Online Sales Tax Bill Hits HouseBY ROY MARK FOR DC INTERNET NEWS
Colorado Gov. Bill Owens told aHouse Judiciary subcommittee
[on October 1, 2003] that theStreamlined Sales Tax Project(STTP), which would requireonline retailers to charge and col-lect sales taxes, would negate one-third of President Bush's federalincome tax cut of 1991.
Owens, who admitted themajority of the nation's governorssupport the STTP, also said the planwould “fundamentally alter” e-com-merce and was unfair to rural andsenior Internet users.
“With Internet sales being justone percent of total sales, I don'tthink this is the time to burden thisburgeoning business,” Owens toldthe Subcommittee on Commercialand Administrative Law.
The Republican governor cameto Capital Hill to oppose H.R. 3184,which grants congressional ap-proval to a national compact nego-tiated among state governments tostreamline and simplify more than7,500 diverse sales tax laws amongstate and local governments. Thelegislation would have the practicaleffect of allowing states to enforcesales taxes on online sales.
The bill was introduced [in lateSeptember] by Rep. Bill Delahunt(D.-Mass.) and co-sponsored byRep. Ernest Istook (R.-Okla.). Sim-ilar legislation is expected to beintroduced in the Senate by MikeEnzi (R.-Wyo.) and Byron Dorgan(D.-N.D.).
“The SSTA marks a significantdeparture from the sales and use taxsystem now in place,” Delahuntsaid. “Under the Commerce Clause
of the U.S. Constitution, Congresshas the sole authority to regulatecommerce among the states.”
Currently, sales and use taxes are
owed on all online transactions, butstates are prohibited from requiringremote sellers to collect and remitthose levies. A 1992 U.S. SupremeCourt decision said states can onlyrequire sellers that have a physicalpresence or “nexus” in the samestate as the consumer to collect so-called use taxes.
The court ruled that the currentpatchwork of taxing jurisdictionsacross the country is too complexand burdensome for online retailersto charge and collect sales taxes. Inorder to collect the taxes, the courtruled, states would need to first sim-plify the existing system.
Spearheaded by the NationalGovernors Association (NGA),states and local governments, with
input from the private sector, havebeen working for three years tooverhaul the nation's sales tax struc-ture. Last November, delegates from32 states approved a model inter-state agreement that establishesuniform definitions for taxablegoods and requires participatingstates and local governments tohave only one statewide tax rate foreach type of product by 2006.
To date, 34 states have agreed toenter into the compact, and 20states have already passed imple-menting legislation. Under the bill,these states would be permitted toenforce sales tax laws on merchantswho ship goods into their state andhave over $5 million in gross annu-al sales. The legislation also requiresstates to compensate retailers fortheir costs in collecting sales taxes.
Supporting the legislation is acoalition of national retailers as wellas the National Governors Associa-tion, the National League of Cities,National Council of State Legisla-
The states havebeen busy simpli-fying their salestax systems andthere’s no longer
any excuse fornot collecting the
sales tax cus-tomers owe.”—Maureen Riehl,National Retail
Federation
®Visa /MasterCard
Settlement and What
it Means to PA
Retailers
33
D e a n S h e a f f e rC h a i r m a n o f t h e B o a r d
Chairman’sCo
rn
er
In recent issues the PRA has reported onthe May 2003 settlement of the 1996
lawsuit filed by the National Retail Feder-ation and some of the nation’s largest retail-ers against Visa ® and MasterCard ®. Thesettlement affects every retailer whoaccepts these card transactions. I wouldlike to take a moment to recap what thelawsuit means to your business and to giveyou some food for thought concerning yournext discussion with your Merchant Bank.
The lawsuit alleged that the compa-nies’ “honor all cards” practice of requiringretailers who accept their creditcards to also accept their “VisaCheck” and “Master Money”signature debit cards was a viola-tion of federal anti-trust law. Mer-chants objected to the cards becausethey carry higher transaction fees thanindependent bank debit cards (such asATM cards) where a consumer completesa transaction by using a PIN number.
Under the current system, merchantspay a flat fee of between 10 and 20 centswhen a customer uses a PIN on a debitcard transaction, but are forced by Visaand MasterCard to pay a percentage ofthe sale - historically between 1.5 and 2percent - when the customer signs a salesslip instead.
Under settlements reached with Visa ®and MasterCard® this past Spring threethings happen. First, the fees for signaturetransactions are substantially reduced formany merchants between August 1 andJanuary 1, 2004. Second, the card issuersagree to pay damages of approximately $3billion to be divided among retailers rep-
resented in the suit, based on a percentageof the debit card transactions they con-ducted. Third, and most important, begin-ning January 2004, merchants will nolonger be required to accept signature-based processing of Visa or MasterCardbranded debit cards unless they choose todo so. Merchant’s will be allowed to insistthe cards be processed on the much lessexpensive PIN basis.
As a consequence of the settlement,in many cases, the price
the retail industry mustpay to accept signa-
t u r e -b a s e dd e b i t
h a sa l r e a d y
dropped byapproximately
1/3 beginning August1, 2003. The price could drop substantial-ly more in January 2004 when, for the firsttime, merchants will have the right tonegotiate the price they pay for signaturebased debit cards, should they even chooseto accept them. In short, Visa and Mas-terCard will need to compete for retailers’debit card business.
There is a reason the card associa-tions are urging consumers to sign for deb-it transactions rather than enter a PIN.There is a reason some financial institu-tions have started charging customers forPIN-based transactions.
Therefore, I urge you to clearlyunderstand:
1) How much each type of credit ordebit card transaction costs your business
2) How your Merchant Bank distin-guishes each type of charge (interchange,assessments, authorization fees, settle-ment fees etc.). Understand what eachfee is for and how the bank calculates it.
3) How much your customers wantor need each payment type (particularlysignature vs. PIN-based debit transac-tions).
Once you understand, considerwhich cards you want to take next yearand how hard you are going to negotiatethese fees with you Merchant Bank.
You’ve never been in a stronger posi-tion to negotiate and may never be again.
With thanks to the National RetailFederation.
®
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3806 Market StreetCamp Hill, PA 17011717-975-1985Fax: 717-975-2247
appointed to the Health Commit-tee of the Council of State Gov-ernments and the Board of Direc-tors of Preservation Pennsylvania.
In the 1995-96 session of theGeneral Assembly, Vance authoredlegislation, now law, which prohibitsdiscrimination against victims ofdomestic violence by insurancecompanies. The law is designed toprevent victims of domestic vio-lence from being victimized twice,once by the abuser and once byinsurance companies, which denythem coverage. Prior to the enact-ment of her legislation, more than100 companies considered domesticviolence as an underwriting criteriaincluding eight of the top writers, byvolume, in the state.
Recently, Rep. Vance hasauthored legislation that could
make receiving health benefits eas-ier and more affordable. HouseBills 1891 and 1892 relate to healthbenefit plans offered by a smallemployer and aim to prohibit med-ical underwriting due to geneticinformation, mental illness ordomestic violence. It would alsoprohibit restrictions due to preex-isting conditions.
Vance continues to be active inher community as a member of sev-eral charitable, community and reli-gious organizations, including as aboard member of the AmericanTrauma Society, Pennsylvania Divi-sion; Health Alliance of Pennsylva-nia; a trustee of Harrisburg AreaCommunity College; and as a mem-ber of the advisory committee forDomestic Violence Services for Cum-berland and Perry Counties.
Rep. Patricia H. Vance, a profes-sional nurse, is one of the few
House members with a medicalbackground. She was elected to theHouse of Representatives in 1991.
In the House, she is vice chairof the Professional Licensure Com-mittee, and is a member of theHealth and Human Services,Finance and Insurance commit-tees. Previously, she chaired theSelect Committee on Pharmaceu-ticals. Rep. Vance also has been
Pat Vance
Thank you to the following retailers who
donated merchandise to the
21st Annual Silent Auction!
You helped us raise more than $9000!AlticorAltria Corporate Services, Inc.Boscov'sCharming Shoppes, Inc.Dance DistributorsHome Depot, Inc.Ideas and ObjectsJC Penney Co.M & C Quality ShoesMacy'sMapes 5 & 10 Stores, Ltd.
Mary KayMovie Merchants/TansationsPicture ThisSearsSmith VillageTarget Corp.The Bon-Ton Stores, Inc.The Pfaltzgraff Co.TransUnion Corp.University Business MachinesWal-Mart Stores, Inc.
Wolf Furniture Company
Legislative
P r o f i l e
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B r i a n A . R i d e r , P r e s i d e n t
Co
rn
er
President’s
On the verge of the holidayshopping season, an online
fraud-fighting expert warns thatretailers too often let down theirguard during their busiest times outof fear that fraud prevention mightblock too many valid transactions.The situation worsens the closer itgets to Christmas. “Fraudsters knowretailers are running scared to maketheir sales numbers during the lastdays of the holiday shopping sea-son,” says Jeff Foster, executive vicepresident of credit card processingand fraud-prevention firm RetailDecisions U.S.A. “They know thatbuying $600 worth of electronicsduring the last week before Christ-mas is a lot easier than at any othertime of the year.”
At the same time, he adds, retailemployees are often more likely tomake mistakes during the busiest shop-ping days, making it more likely thata fraudster will slip through usual secu-rity policies. Such policies includecalling a cardholder to confirm per-sonal information when, say, a largeorder requests overnight delivery toan address not the same as the card-holder’s known billing address.
“If you’re a merchant usuallydoing 1,000 orders a day with threeor four people on the phones toreview orders, maybe you can keepcontrol of risk and what’s going outthe door,” Foster says. “But if youhave 10,000 orders a day during theholidays and your staff is overworked,you may be approving orders that
would normally require first gettingthe cardholder on the phone.”
Foster suggests retailers use sys-tems that automatically alert themto high-risk transactions, such asthe eFalcon scoring service fromFair Isaacs, which uses neural net-working technology to score the risklevel of pending transactions. Atthe same time, he warns, criminalsare getting more sophisticated infinding weak sites. “Many fraudstersare doing a better job of targetingsites they know are vulnerable,” hesays, “and they’re doing a better jobof sharing that information withother fraudsters.”
This article first appeared Sept.18,2003 on InternetRetailer.com
With the Holidays Near, Retailers
Adjust Fraud Fear
State House &
Governor Rendell
Consider Sales Tax Hike
At press time, the state House andGovernor Rendell are considering
increasing the sales tax rate from 6% to6.5 or 6.75%. The state Senate hasalready expressed their opposition tothis proposal. The Pennsylvania Retail-ers’ Association (PRA) has also relayedour opposition to this proposal to Gov-ernor Rendell and legislative bodies.
House Speaker John Perzel isunable to garner the necessary votes toincrease the Personal Income Tax (PIT)as proposed by Governor Rendell. TheSenate is also opposed to increasing thePIT. Because of this, and the fact many
feel Pennsylvania is facing a structuraldeficit, the House is consideringincreasing the sales tax rate.
Various other business organiza-tions have voiced their opposition tothis proposal. Please contact your stateHouse member and relay your opposi-tion to increasing the sales tax rate. Ifyou need assistance in contacting yourlegislator, call the PRA offices at 800PA RETAIL.
Working together, we can defeatthis proposal. Please contact me if youhave any questions regarding this pro-posal or any other initiatives being con-
sidered to increase Pennsylvania’s rev-enue stream. Thank you.
U.S. retailers will only add a few more workers this[holiday season compared to] last year amid no
signs of a significant comeback in consumer spending,outplacement firm Challenger, Gray & Christmas Inc.reported Monday.
Retailers added about 555,000 workers in Novem-ber and December 2002, according to the Bureau ofLabor Statistics. This compares with an average of655,000 per year in 1998, 1999 and 2000.
“Retailers, like other sectors of the economy, areproceeding cautiously when it comes to adding work-ers,” said CEO John Challenger, in a statement. “An
anticipated increase in holiday sales by itself will prob-ably not be enough to boost hiring as much as some peo-ple are probably hoping.”
Hiring will not come close to the levels seen pre-2001, Challenger said. There is a greater willingnessamong current staff to put in more hours, and signifi-cant productivity gains are likely to reduce the need fornew workers, Challenger said.
This article first appeared on CBS.MarketWatch.com Sep-tember 29, 2003.
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There are still nearly 100 shopping days untilChristmas, but retailers already have visions of
ringing cash registers dancing in their heads.After years of disappointing holiday sales,
most signs seem to point to a healthy Novemberand December for retailers. Theeconomy is picking up steam,consumer confidence is turn-ing upward and the recentround of federal tax cuts hasgiven people a few more dol-lars to spend.
The National Retail Fed-eration predicts a 5.7 percentincrease in the sales of toys,clothing, home furnishingand other general merchan-dise this holiday season,which would make it the best infour years. The increase would be morethan double last year’s gain.
“Consumers have spent the last several years on anemotional and economic roller coaster,” Tracy Mullin,president and chief executive officer of the retail federa-tion, said in mid-September. “Now, Americans appearready to shop and ready to spend, just in time for the
biggest shopping season of the year.”Last year, holiday sales made up nearly 23 percent
of total retail sales for the year, the federation said.The national federation predicted a 4 percent
increase in sales for last year’s holidayseason, but sales actually went uponly 2.2 percent amid worries ofthe slumping economy and theimpending war in Iraq.
“After several strongmonths of retail sales growth, itseems clear that the economy ispicking up momentum just intime for the holidays," statedNRF chief economist RosalindWells. “Retail sales gains for the2003 holiday season will be farbetter than the meager increases
retailers experienced a year ago.”NRF defines “holiday retail
sales” as sales in November and Decem-ber for retail stores in GAFS category: gen-
eral merchandise stores, clothing and clothing acces-sories stores, furniture and home furnishing stores,electronics and appliance stores, and sporting goods,hobby, book and music stores.
NRF Anticipates Healthy Holiday5.7 PERCENT INCREASE EXPECTED
US Holiday Hiring to be Up
SlightlyHIRING NOT EXPECTED TO REACH PRE-2001 LEVELS
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A m a n d a L . F l e t c h e rL egis lat ive & Market ing Assistant
Sp
ea
kin
g
LegislativelyThough the past two years have
been enjoyable, as well as chal-lenging, I have decided to leave thePRA and begin a new path of my life.
I have learned a great deal workingat the PRA, about Pennsylvania’s leg-islative process and the issues manyretailers face in Pennsylvania’s businesscommunity. I have been fortunate tohave three wonderful mentors andfriends—Brian, Stephanie and Karen—who have taught me more than I haveroom to mention! I have also enjoyedworking with the PRA’s members, legis-lators and other lobbyists.
The PRA staff has tirelessly aimedto please members, with business and
legislative services, as well as by pro-viding guidance and support. Theyhave relentlessly pursued new mem-bers to make a bigger and better Asso-ciation. It is the teamwork betweenthe staff and the Association’s mem-bers that makes the PRA such a suc-cessful trade association.
I will miss everyone very much,yet look forward to beginning a newchallenge. I will take with me manygreat memories of the past two yearsand hope to keep in touch with thecountless friends and colleagues withwhom I have been privileged to work.
I thank you all again and wish allthe best to the PRA!
Farewell to the PRA!
Thank You to Our Sponsors of the 21st Annual Silent Auction &
Legislative Reception
GOLDBoscov’s ✯ Trans Union Eastern Region ✯ UST Public Affairs, Inc.
SILVER
Charming Shoppes ✯ Macy’s ✯ Target Corporation The May Department Stores, Inc. ✯ Walgreens
BRONZE
Consolidated Nat‘l Insurers ✯ Direct Selling Association 51st Associates ✯ National Association of Chain Drug Stores, Inc.
The Bon-Ton Stores, Inc. ✯ Wal-Mart Stores, Inc.
8 88
the Retailer of the Year Award. Serving as the board’s vicechairman since 1997, Bob stepped down this year.
During the Board Meeting, Trish Greenberg, co-own-er of Movie Merchants/Tansations was named as the newvice chairperson and Dean Sheaffer was again electedchairman. Under their leadership, the PRA will surelycontinue to strengthen its financial and political position.
For those of you unable to attend this year’s events, youwere missed and we hope that you will join us next year.This is an excellent opportunity to meet other PRA mem-bers and legislators in a relaxed atmosphere. This is whyPRA members, legislators and their staffs continue toattend, year after year—not to mention the great deals!See you next year!
Auction...from front page
Rep. Jeff Habay chats with Vernon Johnston and Amanda.
Wal-Mart’s Chris Buchannan and Mike Faltiesak of JCPenney.
The governor smiles for our cameras with PRAChairman Dean Sheaffer of Boscov’s (top left),Tom Zapf of Macy’s (center left), our incredibleauction staff: Stevie Heller, Kathy Heller, KarenGochenaur and Stella Kaufman (bottom left)and Movie Merchant’s Trish Greenberg (above).
99 99 99 9999999
& M
em
be
rsh
ipMarketing
S t e p h a n i e F r e d e r i c k J o h n s t o nD i r e c t o r o f P u b l i c A f f a i r s & M e m b e r s h i p D e v e l o p m e n t
The number of Americans wholack health insurance rose
sharply in 2002, mainly because ofincreases in unemployment and twostraight years of cuts in employer-provided health coverage.
The number of uninsured Amer-icans jumped last year by 2.4 million,to 43.6 million, the Census Bureaureported September 29. That is 15.2percent of the population, comparedwith 14.6 percent in 2001.
The increase was the steepestsince the recession of the early 1990s,when the percentage of uninsuredalso hovered around 15 percent.
The 2002 increase would havebeen “twice as large or larger” ifMedicaid, the public health pro-gram for the poor, and the State
Children’s Health Insurance Pro-gram, a state-federal initiative forlow-income children, had notpicked up the slack, said RobertGreenstein, executive director ofthe Center on Budget and PolicyPriorities, a liberal research group inWashington.
Those programs increased enroll-ments by a total of four million lastyear. Many states are cutting themback now because of tight budgets.
The Census Bureau derives thefindings from an annual survey of78,000 households.
The estimated percentage ofuninsured people in 2002 variedwidely state to state, from lows of 8percent in Minnesota, Rhode Island,Wisconsin and Iowa to a high of
24.1 percent in Texas.The percentage of uninsured
residents grew in 18 states—includ-ing New Jersey, where 13.1 percentof residents were uninsured last year,and Pennsylvania, where the figurewas 9.7 percent.
The plight of the uninsured isone of the most crucial problems inmodern medicine. People withoutcoverage are more likely to forgopreventive care and to seek treat-ment only when their illnesses requirevisits to emergency rooms. By thattime, their illnesses typically aremore advanced and costlier to treat.
The problem tends to be gravestfor vascular diseases that have noovert symptoms in their early
Number of Nation’s Uninsured
Increases SharplyBY TONY PUGH FOR THE PHILADELPHIA INQUIRER
continued on page 14
As you head into the Holiday seasonthis year, remember your fellow
Association members. Not only arethey a wonderful support system for youas you look for better vendors, new mar-keting ideas, and other time and mon-ey-saving tips, but they are also yourcustomers.
Recently, you received the newPRA Discount Card in your mail. Thiscard entitles PRA members to discountsat many member retail stores. This is anexcellent way to bring additional busi-ness in your door without spending adime on advertising!
If you have not already offered adiscount, you may do so simply by call-ing the PRA offices at 800 PA RETAIL.
Offering a discount will not onlyhelp you and the other members whoshop in your store, but it helps the PRAas well. How? By giving prospectivemembers one more reason to join. If youcould save hundreds of dollars a year byshopping at PRA member stores,wouldn’t that alone make your mem-bership worthwhile?
Every discount you offer makes thePRA that much more attractive andmarketable. The more members wehave offering discounts, the more willwant to join. It’s that simple.
So pick up the phone today and callthe PRA with your discount! After all,you have nothing to lose, and every-thing to gain!
Shopping, PRA-Style!
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Bill # Subject Position Status
2 0 0 3 - 2 0 0 4 L e g i s l a t i v e S e s s i o nHR 95 Health Insurance Affordability Support H Consideration of Resolutions(Concurrent Resolution) Addresses the health care crisis and establishes the Health Insurance AffordabilityCommission to undertake a comprehensive review of the causes of various social, health-related and financialimpacts resulting from recent changes and long-term trends in the health care insurance market and to makerecommendations.
HR 219 Employee Retirement Income Support H Consideration of Resolutions(Concurrent Resolution) Memorializes Congress to pass legislation to improve access and choice for small busi-nesses with respect to medical care for their employees and provide workers employed in small businesses andself-employed workers with access to and choice of affordable health plan options similar to those now enjoyedby workers in corporate and union health plans.
H 99 Weights and Measures Oppose H Agriculture & Rural Affairs CommitteeFurther provides for general powers and duties that relate to weights and measures, for investigations, fororders, for enforcement and regulation of price scanning systems, for offenses and penalties.
H 122 Sales and Use Tax Support H Environ Resources & Energy CommitteeExempts the sale of energy-efficient products to reduce carbon dioxide emissions from sales and use tax.
H 216 Gift Certificate Sale Prohibition Oppose H Consumer Affairs CommitteeAmends the Crimes and Offenses Code. Prohibits the sale of gift certificates with expiration dates.
H 536 County Tax Uses Oppose H Finance CommitteeAuthorizes counties to impose sales and use, personal income or earned income and net profits taxes.
H 616 Home Improvement Contracts Neutral H Commerce CommitteeProvides for the regulation of home improvement contracts and for registration of certain home improvement contractors.
H 648 Budget Appropriation Bill Neutral Tabled in HouseProvides for the expenses of the Executive, Legislative and Judicial Departments of the Commonwealth, thepublic debt and for the public schools for certain institutions and organizations, and for the payment of billsincurred and remaining unpaid at the close of the fiscal year ending June 30, 2003.
H 768 Unused Property Market Act Oppose H Commerce CommitteeFurther provides for certain sales at unused property markets of new and unused property and business invento-ry. Defines property markets as any shopping center, store, retail establishment, independent retailer, flea mar-ket, swap meet, farmer’s market, or other location where property is offered for sale.
H 885 Privacy Protection Neutral S Banking and Insurance CommitteeAmends the Crimes and Offenses Code. Adds provisions relating to privacy protection for customer transactions.
H 966 Real Property Tax Oppose H Finance CommitteeProhibits school districts from imposing and collecting real property tax. Establishes a special sales and use taxfor school district funding and the Special Sales and Use Tax for Education Fund.
H 1063 Minimum Wage Rates Oppose H Labor Relations CommitteeAmends The Minimum Wage Act of 1968. Further provides for minimum wage rates.
H 1107 Reduction of Real Property Taxes Oppose H Finance CommitteeProvides for reduction of real property taxes. Imposes additional sales and use tax and personal income tax.
1111 1111 1111 1111 1111 1111 1111 1111 1111 1111 1111 1111 11
H 1108 School Property Tax Elimination Oppose H Finance CommitteeProvides for reduction and elimination of real property taxes. Imposes additional sales and use tax, services taxand personal income tax.
H 1134 Unemployment Compensation Support H Labor Relations CommitteeAmends the Unemployment Compensation Law of 1936. Further provides for qualifications required to securecompensation, for ineligibility for compensation, for rate and amount of compensation, for determination ofcompensatory appeals and for rules of procedure.
H 1145 Real Property Tax Reduction Oppose H Finance CommitteeProvides for a reduction of real property taxes. Imposes an additional sales and use tax, including an increaseexcise tax on rooms in hotels.
H 1203 Corporate Net Income Tax Support H Finance CommitteeAmends the Tax Reform Code of 1971. Further provides for imposition of the corporate net income tax.
H 1252 Deceptive Acts and Practices Oppose H Commerce CommitteeAmends the Fair Credit Extension Uniformity Act of 2000. Further provides for unfair and deceptive acts and practices.
H 1304 Tax Reform Code Oppose H Finance CommitteeAmends the Tax Reform Code of 1971. Provides for pass-through business withholding in corporate net income tax.
H 1305 Tax Reform Code Oppose H Finance CommitteeAmends the Tax Reform Code of 1971. Further provides for the definition and determination of "taxableincome" in corporate net income tax.
H 1312 Tax Reform Code Oppose H Finance CommitteeAmends the Tax Reform Code of 1971. Further provides for sales and use tax licenses.
H 1313 Tax Reform Code Oppose H Finance CommitteeAmends the Tax Reform Code of 1971. Requires tax clearance for renewals of licenses, permits and registrations.
H 1352 Tobacco Products Delivery Watch H Judiciary CommitteeAmends the Crimes and Offenses Code. Defines the offense of unlawful delivery of tobacco products.
S 105 Weights and Measures Oppose S Cons. Prot & Prof Licensure CommitteeFurther provides for general powers and duties that relate to weights and measures, for investigations, fororders, for enforcement and regulation of price scanning systems, for offenses and penalties.
S 417 Credit Block Limitations Oppose S Cons. Prot & Prof Licensure CommitteeImposes limitations on credit blocking by the retail industry and providers of travel services. Establishes a ceil-ing amount on the amount of credit allowed to block. Prescribes a fixed time period to block a certain amountin a consumer's account or line of credit. Provides for enforcement.
S 446 Credit Information Reporting Oppose S Banking & Insurance CommitteeRegulates credit information reporting. Provides for consumer report preparation, dissemination and use, fordisclosure requirements, for dispute resolution and for public record information.
S 717 Homestead Property Tax Oppose S Finance CommitteeProvides for prohibition of levy or collection of tax on homestead property, for the Homestead Property Tax Elimi-nation Fund, for imposition of sales and use tax, for increase in personal income tax and for realty transfer tax.
S 725 Product Sellers Liability Support S Judiciary CommitteeAmends the Judiciary and Judical Procedure Code. Provides for liability rules applicable to product sellers.
S 801 Tax Reform Oppose S Finance CommitteeAmends the Tax Reform Code of 1971. Further provides for corporate net income tax and definitions. Providesfor corporate net income tax and for pass-through business withholding.
Bill # Subject Position Status
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Do Not Call List Takes EffectTELEMARKETING CALLS SHOULD DECLINE, BUT LIST’S FUTURE IS UNCLEAR
The national do-not-call list, hampered by a week-long legal struggle, went into effect [October 1,
2003], with government officials still predicting a largedecline in telemarketing calls to millions of registeredphone numbers.
The seemingly simple service is at the center of aperplexing saga involving every branch of government.In the latest twist, federal officials scrambled a daybefore enforcement was to start to rework a system thathandles complaints about telemarketers.
For now, officials are directing consumers who reg-istered phone numbers on the list to send complaints tothe Federal Communications Commission by visitingits Web site or calling 1-888-225-5322.
The list contains more than 50 million home and cellphone numbers. Companies could face thousands of dol-lars in fines each time they call a registered number.
Redirecting all complaints to the FCC was a last-minute change. The potential for more confusionremained, since outdated instructions for filing com-
plaints were still on government phone messages andWeb sites late [on September 30].
“It will just be a more cumbersome and difficult sys-tem than the system we designed,” Federal Trade Com-mission Chairman Timothy Muris told reporters Tues-day after testifying to a Senate committee. “Thisdoesn’t mean that consumers will be without protec-
tion.” Muris said the FTC is moving to
stop accepting new numberswhile a court fight with telemar-keters plays out. Despite the legalwrangling, many of the largesttelemarketers say they willabide by the list.
Consumers can ex-pect a significantdecrease in calls,“assuming tele-marketers com-ply,” Muris said.The FTC wasblocked from operating and enforcing the list [a weekbefore the planned effective date] by a federal judgewho said the program violates the free speech rights oftelemarketers. Muris said the legal fight could stretchinto next year.
Dramatic Increase in Calls ForseenThe list was intended to block about 80 percent of
telemarketing calls. Exemptions include calls fromcharities and pollsters and on behalf of politicians. Acompany also may call a person on the no-call list if thatperson has bought, leased or rented from the companywithin the past 18 months or has inquired about orapplied for something during the past three months.
Recent legal challenges and the government’smakeshift fixes to keep the list in business have left oth-er holes in the registry’s protections.
The do-not-call list requires telemarketers to pay fora copy of the list so they can know whom to avoid call-ing. Many telemarketers have the list, but some do notand cannot obtain it since the FTC shut down thataspect of the program on Sunday in response to thecourt rulings.The FCC can only penalize those whohave the list.
FCC Chairman Michael Powell said that whileinvestigating complaints, the FCC would ask a tele-marketing firm accused of a violation whether it hadthe list. “Lying to us is a dangerous thing,” he said, not-
continued on next page
Some telemarketers say thelegal confusion has their
industry in turmoil, with manyunsure about which numberscan and can’t be called andwhat actions will result in
penalties.
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Witches and black cats are popping up in retail storesthroughout the country, just in time for the second-
largest decorating holiday of the year. This Halloween will beas big as ever, according to the findings of a new NationalRetail Federation (NRF) survey. The NRF 2003 HalloweenConsumer Intentions and Actions Survey,conducted by BIGresearch for NRF, foundthat 55.8 percent of consumers plan to cele-brate Halloween, spending an average of$41.77 on the upcoming holiday. Spendingwill be virtually unchanged from 2002, whenconsumers spent an average of $44.20.
“Halloween continues to be important forretailers as it represents the beginning of a newseason, not just one holiday,” said NRF Presi-dent and CEO Tracy Mullin. “With a varietyof costumes in the stores, community activities acrossthe country, and decorations on front porches, it’s no surprise thatconsumers, and retailers, love Halloween.”
Halloween continues to be the second-biggest holiday fordecorating next to the winter holidays. Nearly half of consumers(46.6%) celebrating Halloween plan to decorate their homeswith a Halloween theme this year, spending $10.37 each on Hal-loween decorations. They will also spend an average of $14.85 oncostumes, $14.41 on candy, and $2.14 on greeting cards.
Though Halloween will be celebrated by adults of all ages,consumers will celebrate the holiday quite differently. Young
adults aged 18-24 plan to celebrate Halloween by dressing incostume (57.3%) and throwing or attending a party (48.6%).More than half of consumers aged 25-44 will take childrentrick-or-treating (52.8%) and carve a pumpkin (54.3%) thisHalloween. Consumers over the age of 45 will spend their
Halloween night at home and hand out candy(86.9%).
“Young adults have propelled Halloweeninto a holiday for all ages,” said Phil Rist, VicePresident of Strategy for BIGresearch. “Withso many activities and celebrations, from adultcostume parties to traditional pumpkin carving,it’s easy to see that Halloween is not just for [kidsanymore.”
A variety of retailers will benefit from salesof Halloween merchandise. Discounters will
continue to see the majority of traffic, with 69.2percent of consumers planning to shop for Halloween mer-chandise at a discount store. Consumers will also be headingto grocery stores (45.5%), specialty stores like Halloween or par-ty stores (23.4%), department stores (19.1%), and drug stores(16.9%).
The NRF Halloween Consumer Intentions and Actions Sur-vey was designed to gauge consumer behavior and shopping trendsrelated to Halloween. The survey, which polled 7,569 consumers,was conducted for NRF by BIGresearch from September 4-10,2003 and has a margin of error of plus or minus 1.0 percent.
Retailers Expect More Treats
Than Tricks For Halloween CONSUMERS PLAN TO SPEND $41.77 EACH ON HOLIDAY
ing that deceiving the agency could result in seriouslegal actions.
Industry in Turmoil?Some telemarketers say the legal confusion has
their industry in turmoil, with many unsure aboutwhich numbers can and can’t be called and whatactions will result in penalties.
U.S. District Judge Edward W. Nottingham in Den-ver on Monday denied a request to suspend his decisionblocking the FTC from running the list. He also warnedthe agency could face more legal action for using the
FFCC to skirt the order.On Tuesday, the FTC asked the Denver-based 10th
U.S. Circuit Court of Appeals to suspend Nottingham’sruling that blocked the agency from operating the list.Officials from 45 states, the District of Columbia and Puer-to Rico filed a brief with the court supporting the FTC.
Sen. John McCain, R-Ariz., chairman of the SenateCommerce Committee holding the hearing, bemoanedthe uncertainties.
“A concept that to most people is as simple as ‘donot call me’ has become tremendously complex,”McCain said.
Do Not Call...from previous page
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stages, such as hypertension, diabetes, heart attacksand stroke. In addition, cancers among the uninsuredtend to be detected at more advanced stages. Once theuninsured seek treatment, they are more likely toreceive inadequate care and to die sooner, accordingto numerous studies.
The 2002 increases in the numbers of uninsuredAmericans were across the board, among whites,blacks, Hispanics, and all age groups, from 18 to 64.
Most experts expected higher numbers of uninsuredbecause of the sluggish economy, job cuts, and employ-ers’ growing reluctance to pay rising health-insurancerates. But the scope and size of the increases showedthat the problem was no longer limited to the poor.
Last year’s declines in coverage were greatest amongmiddle-income families, the Census Bureau found. Thepercentage of families without coverage who earn$25,000 to $49,999 a year rose from 17.3 percent in2001 to 19.3 percent last year.
“Employment-based coverage is getting reallyexpensive,” said Kate Sullivan, director of health-carepolicy at the U.S. Chamber of Commerce. “Either thecompany doesn’t make it available or individuals areturning down coverage at work because they can'tafford it. That’s very alarming.”
The average cost of a family health plan rose from$8,000 in 2002 to more than $9,000 this year and isexpected to exceed $10,000 in 2004, said Helen Dar-ling, president of the Washington Business Group onHealth, which represents 180 major corporations.
People who identified themselves as Hispanic had
the lowest overall rate of coverage (67.6 percent).Blacks were next at 79.8 percent and Asians at 81.6 per-cent. Non-Hispanic whites had the highest rate of cov-erage, 89.3 percent.
Uninsured families, though they often can leastafford it, generally pay more out of their own pocketsfor medical care when they get it. They pay, on average,88 percent of their prescription-drug costs, according toa recent study by the Institute of Medicine, a unit of theNational Academy of Sciences.
Hospitals that provide emergency care regardless ofa patient’s ability to pay for it are hit especially hard byincreases in the number of uninsured patients. Manyhave closed or reduced services.
The Harbor-UCLA Medical Center in Los Angeles,which serves a mostly uninsured clientele, has droppedfrom 2,600 inpatient beds in 1995 to 1,800, for example.
“The county intends to close more beds if the courtsystem will allow it,” said Dr. Robert Hockberger, itschief of emergency medicine. “We've also cut signifi-cant amounts of staff over the last eight years.”
As medical bills for uninsured families accumulat-ed, he said, children often leave school to work and sup-port sick loved ones.
“One by one, they drop out to get jobs to pay forfood, clothing and medical care as Mama and Grandpawho don’t have insurance or regular medical care getsick,” he said. “It creates a vicious cycle, and theirattempts at the American dream are thwarted.”
This article first appeared on September 30, 2003.
Uninsured...from page 2
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A community of professionals dedicated to the protection and promotion
of Pennsylvania’s retail industry through information, business services
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Sales Tax...from page 2
tors, National Association of County Officials, Nation-al Association of Real Estate Investment Trusts, Inter-national Council of Shopping Centers, the NationalRetail Federation, and the International Mass RetailAssociation.
“Remote sellers have claimed for years that statesales tax systems were too complicated for a retailer inone state to know what sales tax to charge a customerfrom another state,” Maureen Riehl, vice president andstate and government relations counsel for the Nation-al Retail Federation, told the subcommittee. “That's nolonger true. The states have been busy simplifying theirsales tax systems and there’s no longer any excuse fornot collecting the sales tax customers owe.”
In addition to traditional brick-and-mortar mer-chants, who have long complained of the pricingadvantage online retailers hold since they do not haveto charge sales tax on purchases, a number of major e-commerce players, including Wal-Mart, Staples andTarget, have begun charging their customers sales tax-es on almost all online purchases.
Jack Vanwoerkom, EVP and general counsel for theFramingham, Mass.-based Staples, said Delahunt's leg-islation is “critical to end the current inequity wherebyStaples.com is required to collect and remit sales taxes
because Staples has made a commitment to be presentin local communities.”
Vanwoerkom added, “Pure Internet retailers do not bearthe same burden of collecting and remitting sales taxes.”
A report by the University of Tennessee last yearestimated that all 50 states could collectively lose morethan $45 billion in Internet sales tax revenue in 2006.
The study, commissioned by the Institute for StateStudies and prepared by the University of Tennesseewith data collected by Forrester Research, shows therevenue impacts for states are significant. Nearly half ofstate revenues come from sales taxes and more than 40percent of state spending is dedicated to education, lawenforcement, and transportation projects.
According to the study, in 2001, inability to tax e-commerce likely cost state and local government rev-enue a loss of $13.3 billion. By 2006, the loss will morethan triple to $45.2 billion; and in 2011 the loss will be$54.8 billion. The cumulative total of losses between2001 and 2011 is $439 billion. The report also showshow much each individual state will lose from uncol-lected sales and use taxes.
This article first appeared October 2, 2003 on DCInternet-news.com
