October 2006

OCTOBER 2006
General Election November 7, 2006
F
ollowing are the statewide offices and Legislative contests in this year’s election. Minor party
candidates were omitted due to lack of space. RAN urges all members to study the candidates
and make their own decisions. For your information, names in bold are those lawmakers
or candidates who scored well in the RAN matrix and/or are supported by RAN. For more
information on the matrix go to www.rannv.org.
U.S. Senator
• Carter, Jack — Democrat
• Ensign, John — Republican
Representative in Congress District 1
• Berkley, Shelley — Democrat
• Wegner, Kenneth — Republican
Representative in Congress District 2
• Derby, Jill — Democrat
• Heller, Dean — Republican
Representative in Congress District 3
• Hafen, Tessa M. — Democrat
• Porter, Jon — Republican
Governor
• Gibbons, Jim — Republican
• Titus, Dina — Democrat
Lt Governor
• Krolicki, Brian — Republican
• Unger, Robert — Democrat
Secretary of State
• Miller, Ross — Democrat
• Tarkanian, Danny — Republican
State Treasurer
• DeStefano, Mark — Republican
• Marshall, Kate — Democrat
State Controller
• Martin, Steve — Republican
• Wallin, Kim — Democrat
State Attorney General
• Chairez, Don — Republican
• Masto, Catherine Cortez — Democrat
Capital Senate District
• Amodei, Mark — Republican
CLARK SENATE DISTRICTS
State Senator District 2
• Carlton, Maggie — Democrat
• Mendoza, Tina — Republican
State Senate District 5
• Tiffany, Sandra — Republican
• Woodhouse, Joyce — Democrat
State Senate District 7
• Care, Terr y — Democrat
State Senate District 8
• Cegavske, Barbara K. —
Republican
• Cook, Chandra — Democrat
Continued on page 6
INSIDE
Retail Container Ports ................................. 2
Encouraging Deviance by James Larsen .... 3
Combat Methamphetamine Epidemic Act ... 3
National News Briefs ................................... 5
Holiday Gains in 2006 ................................. 7
Victory for State Tax Panel .......................... 7
DEA Issues Rules........................................ 8
Sales Tax Holidays ...................................... 8
Holiday Promotions Starting Earlier Online . 9
If the Democrats Win Congress ................. 10
Fate of State Minimum Wage .................... 11
Page 2
Retail Association of Nevada
October 2006
Retail Container Ports
Continue to Hit New Records
W
ASHINGTON, D.C.,
October 6, 2006 — Traffic at the nation’s major
retail container ports hit
new records over the summer and
is expected to continue to do so as
the annual shipping cycle reaches
its peak this month, according to
the monthly Port Tracker report
released today by the National Retail Federation and Global Insight.
“We are now in the height of
peak season, with October volumes
expected to be the highest of any
month this year,” Global Insight
Economist Paul Bingham said.
“The ports are operating without
congestion, and truck and rail
systems are handling the record
volumes well. We expect the ports
to be able to handle these volumes
without significant congestion, and
we expect continued acceptable
performance over the next six
months.”
“With volume growing this
quickly, retailers are depending
on Port Tracker for up-to-date
information more than ever,” NRF
Vice President and International
Trade Counsel Erik Autor said.
“These numbers are being watched
very closely by the retail industry.”
All ports covered by Port
Tracker – Los Angeles/Long
Beach, Oakland, Tacoma and
Seattle on the West Coast, and New
York/New Jersey, Hampton Roads,
Charleston and Savannah on the
East Coast – are currently rated
“low” for congestion, the same as
last month.
Nationwide, the ports surveyed
handled 1.44 million Twentyfoot Equivalent Units (TEUs) of
container traffic in August, the
most recent month for which actual
numbers are available. The figure
was up 5 percent from July and 8.4
percent from August 2005.
With volume continuing to
grow, the August number has
already topped 2005’s year-long
peak of 1.37 million TEU, set last
October. September is forecast at
1.4 million TEU (up 4.9 percent
from September 2005) and October
at 1.46 million TEU (up 6.5 percent
from October 2005). After the
holiday-driven shipping season
peaks in October, volume over the
six-month period of the forecast
will begin to decline to 1.35 million
TEU in November (up 6.7 percent
from November 2005), 1.3 million
TEU in December (up 8.3 percent
from December 2005), 1.26 million
TEU in January (up 3.2 percent
from January 2006) and 1.19
million TEU in February (up 11.6
percent from February 2006). One
TEU is a 20-foot cargo container or
its equivalent.
Port Tracker, which is
produced by the economic
research, forecasting and analysis
firm Global Insight for NRF, looks
at inbound container volume, the
availability of trucks and railroad
cars to move cargo out of the
ports, labor conditions and other
factors that affect cargo movement
and congestion. Subscription
information is available at www.
nrf.com/porttracker or by calling
(202) 783-7971. ■
Marketplace Drives Drug Prices Down
W
al-Mart Stores, Inc. announced a new pilot program under which 65 company pharmacies in
the Tampa, Florida area will sell 30-day prescriptions of the some generic medications for $4.
In response to the program, Target last week announced that company pharmacies will
match Wal-Mart prices for generic medications, and health-care experts predict that “more
competitors will be forced to follow suit” as Wal-Mart expands the program nationwide.
Consumer-groups and medical experts cheered the announcements.
Baltimore Sun
“
Great managers know they don’t have 10 salespeople working for them. They know they have 10 individuals working for
them . . . A great manager is brillant at spotting the unique differences that separate each person and than capitalizing on them.
”
Marcus Buckingham
www.RANNV.org
October 2006
Retail Association of Nevada
Page 3
Encouraging Deviance
By James Larsen, Ph.D.
N
ew research measures an
impact supervisors do not
want to have.
Imagine this scene: three
supervisors are in a meeting with
their manager. On the table in front
of them are numerous individual
attendance records loosely arranged
into three piles.
“Gentlemen,” says the manager,
“we have a problem. Human
Resources has called my attention to
a pattern of sick leave abuse in your
three areas.” He picks up one of the
stacks of paper and goes on. “Your
people are using sick leave to give
themselves three-day weekends. I
don’t suppose this is a surprise to
you. You have to get the work done
even if you are short-handed. But
if Human Resources knows, then
upper management knows too,
and they’ll be watching to see what
happens next. Speak to your people.
Let’s get this turned around.”
Each of the supervisors picks
up a stack of attendance records and
leaves. Each walks away thinking
about his next actions.
Peter, one of the supervisors,
decides to meet with his employees
and instruct them to correct this
problem. He won’t be mean about it.
He’ll just tell them it has to change.
The only problem Peter sees is
one of personal embarrassment.
He takes his share of Fridays and
Mondays off, too, so he’s hoping no
one points that out.
Franklin, the second supervisor,
has the same problem. He likes
to spend the extra time with his
wife who has Fridays off. But
he’s too embarrassed about upper
management noticing the abuse
to say anything to his employees.
He’ll just hope for the best and say
nothing to his people. He’ll also
improve his attendance on Fridays.
Richard, the third supervisor,
hasn’t used any sick leave in the
last year. He’s so healthy that it
annoys people if he mentions it, so
he doesn’t mention it, and he won’t
bring it up in the meeting he has
planned for his people. He’s going
to tell them to correct the abuse,
and he’ll warn them that upper
management is watching.
Three supervisors . . . three
groups of employees . . . three
different strategies . . . what do you
suppose these employees will do?
According to research
conducted by Brian Dineen, from the
University of Kentucky , the third
supervisor, Richard, will get the best
response from his employees. They
will significantly reduce their abuse
of sick leave.
Franklin ’s employees (he was
second) won’t change. They won’t
reduce their abuse of sick leave, but
they won’t increase it either.
Peter’s employees (the first
supervisor) will significantly
increase their abuse of sick leave,
and upper management is likely to
notice that right away.
Professor Dineen studies
employee conduct. He studies
deviant behavior, like employee theft
and sick leave abuse, and he studies
good employee conduct, instances
of behavior he calls employee
citizenship behaviors. In his most
recent research, Dineen examined
two features of supervision that he
believed would impact employee
conduct. He was hoping to measure
their effects.
The first feature he called
supervisory guidance, and it refers
to supervisory efforts to encourage
good conduct and discourage
bad conduct. Peter and Richard,
supervisors 1 and 3, used guidance
when they spoke to their employees.
The second supervisory feature
he examined he labeled integrity
which he defined as a matching
of a supervisor’s words and
deeds. Peter, the supervisor who
discouraged sick leave abuse while
abusing it himself lacked integrity,
while Richard, the supervisor who
did not use sick leave, had integrity.
Dineen found that employees
react strongly to supervisory
guidance depending upon their
beliefs about the integrity of their
supervisor. If they believe their
supervisor has high integrity, then
they react positively to supervisory
guidance and their behavior
improves. If employees believe their
supervisor has low integrity (his
words don’t match his deeds), then
they react negatively to supervisory
guidance and their behavior
worsens. In Dineen’s study, when
guidance was used and integrity was
low, deviant behaviors significantly
increased and employee citizenship
behaviors decreased. Curiously,
in Dineen’s sample, supervisors
with low integrity fared best if
they just kept quiet and offered no
supervisory guidance at all. At least
the conduct of their employees didn’t
worsen.
The obvious lesson from this
research is that supervisors are
well served by a reputation for high
integrity. It is especially useful when
supervisors must offer guidance to
encourage good conduct. A second,
less obvious lesson is to avoid
triggering employee rebellions by
giving supervisory guidance without
corresponding integrity. That will
keep a bad situation from becoming
a calamity. Now you know. ■
Reference: Dineen, Brian R., Roy Lewicki, and
Edward Tomlinson (2006) Supervisory Guidance
and Behavioral Integrity: Relationships With
Employee Citizenship and Deviant Behavior.
Journal of Applied Psychology, 91 (3), 622-635.
C 2006 Management Resources
www.RANNV.org
Page 4
Retail Association of Nevada
October 2006
New Program Trains Pharmacy Staff on
Combat Methamphetamine Epidemic Act
NACDS Foundation and LearnSomething, Inc. collaborate on pharmacy tool
A
lexandria, Va. – June
29, 2006 – Assisting
community pharmacies to
combat methamphetamine
misuse and abuse by the public
is the objective of a new training
program, called the MethGuard
TM Combat Methamphetamine
Epidemic Act of 2005 training
program,
developed jointly
by the National
Association of
Chain Drug Stores
Foundation and
Learn Something,
Inc, a nationally
recognized
provider of
pharmacy training
programs.
This new
initiative was
created in response to the
employee training and education
requirements of the Combat
Methamphetamine Epidemic
Act of 2005. The Act mandates
that retailers provide training
to all employees involved
in the sale of any over-thecounter product containing
pseudoephedrine, ephedrine, or
phenylpropanolamine – and to
certify with the Drug Enforcement
Agency that the training has been
completed. Beginning April 7th,
all retailers are now required to
enforce daily sales limits on these
products. Other requirements
for employee training, product
placement, consumer identification
Ann Wagner, R.Ph., senior vice
president of policy and pharmacy
regulatory affairs for NACDS. “The
program was specifically tailored
to help retail employees perform
the new duties and procedures
required by the Combat
Methamphetamine Epidemic Act.”
The online training program
is flexible
to meet the
specific training
requirements
of individual
companies,
including
company policies
and procedures.
The program
can be branded
to fit within the
look and feel of
other training
programs, including company
logos and customized
introductions.
One hour of Pharmacy
Continuing Education (PCE) credit
is available to individuals who
successfully complete the training.
For demonstrations of the
program and more information:
www.nacdsf.learnsomething.com ■
“The Act mandates that retailers
provide training to all employees involved in
the sale of any over-the-counter product
containing pseudoephedrine, ephedrine,
or phenylpropanolamine . . .”
and logging processes went into
effect on September 30, 2006.
“This training program
prepares pharmacists, pharmacy
technicians, and associates
for real world situations, such
as identifying suspicious
retail purchases of products
that might be used to make
methamphetamine,” said Mary
NACDS Foundation is the education, research, and charitable affiliate of the National Association of Chain Drug Stores. Through
educational and research initiatives, the NACDS Foundation supports programs that advance the community pharmacy for the benefit
of the public it serves. In addition to its own initiatives, the NACDS Foundation supports other educational and charitable causes across
the country. Further information about the NACDS Foundation and its programs is available at www.nacdsfoundation.org .
LearnSomething, Inc. is the leading provider of e-learning solutions for the food, drug, and healthcare industries. LearnSomething, Inc.
products and services help companies meet training needs quickly and effectively through flexible online and CD-ROM based training
programs. For more information, please visit www.learnsomething.com .
www.RANNV.org
October 2006
Retail Association of Nevada
Page 5
National News Briefs
RETAIL HOLIDAY MARKETING
Targeted marketing media help
retailers improve margins by basing
offers on customer behavior and reducing dependency on discounting.
Retailers look forward to the
increased sales they can expect during
the holiday season, but as revenue
opportunities increase, so do the
marketing challenges. Advertising
clutter and media fragmentation,
which both increase in the fourth
quarter, make it difficult for retailers to
garner customers’ undivided attention.
In addition, discounting is rampant
during the holiday season, making
it even more difficult for retailers to
focus on merchandise quality
and value.
But there is a better way: targeted
marketing media, including direct
mail, email and voice and mobile
marketing, help retailers drive more
profitable holiday sales when they
are executed using thoughtful best
practices.
By targeting marketing efforts
toward customers’ lifestyles and behavior, retailers can cut through the
holiday clutter and promote offers that
generate increased value and loyalty
for both retailer and customer.
NRF
STOP ‘N SMELL
THE GIFT CARDS
Gift cards are getting dressed up,
scented and socially responsible just
in time for this year’s holiday shopping
season.
Among the newest innovations
that consumers can look forward to in
the coming months are peppermintscented scratch ‘n sniff gift cards,
eco-friendly biodegradable cards made
from corn, and 3-D holographic cards.
Industry experts say retailers
know more and more holiday shoppers
want the convenience of gift cards not
just for Christmas but for other events
such as weddings, graduation or
Mother’s Day.
A lack of any hot new items has
also made gift cards a good alternative
this season, the experts say.
While one toy chain is featuring
3-D action gift cards, others are partnering with suppliers of innovative gift
card packages, such as pop-up
Christmas scenes.
Total gift card sales over the
November-December period last year
rose 20 percent to $18.5 billion.
CNN Money
MARKETERS DISCOVER
SOME MALE SHOPPERS
Marketers are only beginning to
understand the secrets of the male
shopper. Largely forgotten are the
millions of boomer dads, who shop a
lot more than their fathers or grandfathers ever did. Also often overlooked
is the army of men in the 20s and
30s who care about their appearance
but still like to drink beer and watch
sports. The male teen is another big
shopper, a sophisticated consumer
with the Web research skills to give
him an outsize-say in family purchases.
A study commissioned by
Gentlemen’s Quarterly found that 84%
of men said they purchase their own
clothes, compared with 65% four years
ago. And 52% of retailers surveyed said
their typical male customer shopped at
a store at least once a month, up from
10% in 2001.
The single male home buyer has
traditionally been all but ignored by
builders obsessed with married couples and single women. But one new
townhouse project is expressly outfitted for single men. With dark wood
cabinets, black granite countertops,
and stainless steel appliances, it has a
big kitchen and oversize dining room.
Gray walls, a doublewide shower in the
master bedroom rather than a bath,
and a higher-than average sink all nod
to the guy they’re trying to attract. Of
the 28 homes sold since June, 11 went
to single men. AOL Money & Finance
WELLNESS SELLS!
“Grocery Headquarters”
Magazine is adding a new section to
its publication called Selling Wellness.
The publishers note that consumer
interest in healthy lifestyles is thriving
and retailers are striving to make
such products a fundamental part
of their store offerings. So to meet
the challenge of marketing and
merchandising, the new section will be
a resource on the latest trends, news
and promotional tactics. For more
information, contact Suzanne Vita
Palazzo at spalazzo@groceryheadquar
ters.com
GOOD QUOTE
“Hard work spotlights the
character of people: some turn up
their sleeves, some turn up their
noses, and some don’t turn up at all.”
Sam Ewing
CALIFORNIA GOES AFTER
TAXES . . . FROM CONSUMERS
The California Board of
Equalization (BOE) is seeking to
collect taxes owed from about 12,000
residents who relied on the Internet
or mail order out-of-state vendors to
purchase cigarettes or other tobacco
products.
The BOE says that when
consumers use the Internet to purchase untaxed cigarettes, they also
inherit a “tax liability by purchasing
and shipping the merchandise into
California.” Such tax liabilities range
from $45 to $8,000, although the BOE
believes the larger amounts are likely
to be unlicensed businesses and not
individual consumers.
The BOE will contact several
thousand taxpayers statewide each
quarter and estimates they will collect
over $50 million over the next
two years.
Daily News
www.RANNV.org
Page 6
Retail Association of Nevada
General Election
State Senate District 9
• Nolan. Dennis — Republican
State Senate District 10
• Coffin, Bob — Democrat
State Senate District 12
• Hardy, Warren B. — Republican
WASHOE SENATE DISTRICTS
State Senate District 1
• Mathews, Bernice Martin —
Democrat
State Senator District 2
• Emerson, John H — Democrat
• Washington, Maurice —
Republican
State Senator District 4
• Townsend, Randolph —
Republican
CLARK ASSEMBLY DISTRICTS
A.D. 1
• Kirkpatrick, Marilyn —
Democrat
• Myers, Linda West — Republican
A.D. 2
• Blumberg, Carlos — Democrat
• Mabey, Garn — Republican
A.D. 3
• Kalagian, Mel — Democrat
• Pierce, Peggy — Democrat
A.D. 4
• Allen, Francis — Republican
• Butcher, C. — Democrat
A.D. 5
• Dudas, Dawn — Democrat
• Weber. Valerie — Republican
A.D. 6
• Mumford, Har vey J. —
Democrat
A.D. 7
• Arberr y, Jr. Morse — Democrat
• Vaughan, Stan — Democrat
A.D. 8
• Buckley, Barbara — Democrat
• Peacock, Patricia M. — Republican
A.D. 9
• Segerblom, “Tick” — Democrat
A.D. 10
• Hogan, Joseph M. — Democrat
• Ozark, Jonathan — Republican
A.D. 11
• Kihuen, Ruben — Democrat
October 2006
Continued from front page
A.D. 12
• Haynes, Lee Wayne — Republican
• Ohrenschall, James —
Democrat
A.D. 13
• Christensen, Chad —
Republican
• Taylor, Adam — Democrat
A.D. 14
• Koivisto, Ellen M. — Democrat
A.D. 15
• McClain, Kathy — Democrat
A.D. 16
• Oceguera, John — Democrat
A.D. 17
• Atkinson, Kelvin — Democrat
• Car valho, Angelo — Republican
A.D. 18
• Jarvis, Ken — Republican
• Manendo, Mark — Democrat
A.D. 19
• Claborn, Jerry D. — Democrat
• Smith, Bradley “Joseph” —
Democrat
A.D. 20
• Hardy, Joe — Republican
• Lynch, Art — Democrat
A.D. 21
• Beers, Bob — Republican
• Keene, Richard “Brian” —
Democrat
A.D. 22
• Stewart, Lynn D. — Republican
• Urias, Ruben — Democrat
A.D. 23
• Grierson, Steven — Republican
• Womack, Rosemary — Democrat
A.D. 28
• Denis, Mo — Democrat
A.D. 29
• Gerhardt, Susan — Democrat
• Smith, Michael R. — Republican
A.D. 34
• Horne, William C. — Democrat
A.D. 36
• Goedhart, Ed — Republican
• Murray, Laurayne — Democrat
A.D. 37
• Conklin, Marcus — Democrat
A.D. 41
• Parks, David — Democrat
• Wong, Bob — Republican
A.D. 42
• Mortenson, Harry — Democrat
WASHOE ASSEMBLY DISTRICTS
A.D. 24
• Bobzien, David — Democrat
• Holcomb, Brooks —Republican
A.D. 25
• Gansert, Heidi S. — Republican
A.D. 26
• Cobb, Ty — Republican
• Hardenbrook, Richard J. —
Democrat
A.D. 27
• Fruehan, Glenn G. — Democrat
• Leslie, Sheila — Democrat
A.D. 30
• Smith, Debbie — Democrat
A.D. 31
• Anderson, Bernard — Democrat
• Thompson, Randi — Republican
A.D. 32
• Mar vel, John — Republican
• Sprinkle, Mike — Democrat
RURAL ASSEMBLY DISTRICTS
A.D. 33
• Carpenter, John C. —
Republican
A.D. 35
• Goicoechea, Pete — Republican
A.D. 38
• Grady, Tom — Republican
• James, Cathylee — Democrat
A.D. 39
• Brown, Joetta — Democrat
• Settelmeyer, James Arnold —
Republican
A.D. 40
• Parnell, Bonnie — Democrat
• Ward, Sheila M. — Republican
SUPREME COURT JUSTICE
Seat F
• Douglas, Michael L. —
Nonpartisan
• Steel, Cynthia — Nonpartisan
Seat G
• Becker, Nancy — Nonpartisan
• Saitta, Nancy M. —
Nonpartisan
www.RANNV.org
October 2006
Retail Association of Nevada
Page 7
NRF Sees Holiday Gains in 2006
NRF FORECASTS 5.0% GROWTH IN RETAIL SALES THIS HOLIDAY SEASON
W
ashington, DC, September
19, 2006 — While
consumers have shown
a surprising amount of
resilience in 2006, retailers can
expect a more subdued holiday
season. According to the National
Retail Federation (NRF), total
holiday retail sales are expected to
increase 5.0 percent over last year,
bringing holiday spending to $457.4
billion.* In comparison, holiday
sales in 2005 rose 6.1 percent to
$435.6 billion.
“Consumers have faced a
number of economic challenges this
year and have taken them in stride,”
said NRF Chief Economist Rosalind
Wells. “Although sales gains will not
be as robust as last year, retailers can
still expect above-average holiday
sales growth.”
Over the last ten years, the
average percentage increase in
sales for the holiday season is 4.6
percent. One-fifth of retail industry
sales (19.9%) occur during the
holiday season, making it the most
important time period of the year for
the industry.
“Consumers make small
sacrifices all year so they can
splurge a little during the holidays,”
said NRF President and CEO Tracy
Mullin. “If gas prices continue
to fall, shoppers will find a little
something extra in their wallets,
giving them even more reason to
celebrate.”
The National Retail Federation
is the world’s largest retail trade
association, with membership that
comprises all retail formats and
channels of distribution including
department, specialty, discount,
catalog, Internet, independent
stores, chain restaurants, drug
stores and grocery stores as well as
the industry’s key trading partners
of retail goods and services.
NRF represents an industry with
more than 1.4 million U.S. retail
establishments, more than 23
million employees — about one in
five American workers — and 2005
sales of $4.4 trillion. As the industry
umbrella group, NRF also represents
more than 100 state, national and
international retail associations.
www.nrf.com.
* NRF defines “holiday retail
sales” as retail industry sales which
occur in the months of November
and December. Retail industry
sales include most traditional retail
categories including discounters,
department stores, grocery stores,
and specialty stores, and exclude
sales at automotive dealers, gas
stations, and restaurants. ■
Victory for State Tax Panel
C
arson City District Judge
Michael Griffin has ruled that
the Nevada Tax Commission
has the authority to meet in
closed session to consider taxpayer
appeals.
The Decision is a victory for
the tax panel which argued taxpayer
appeals had to be heard in closed
session because of the sensitivity of
the financial information required in
such proceedings.
Attorney General George Chanos
argued against the tax panel, saying
that Nevada’s Open Meeting Law
required all actions to be taken
in public.
Griffin concluded that the
exception is one of the very few to the
open meeting law.
The decision is also a victory for
Southern California Edison, which
won a $40 million refund from the
Tax Commission in May 2005 after a
three-year administrative hearing. The
refund was related to its operation of
the Mohave Generating Station near
Laughlin.
The Commission has been holding
seven other taxpayer appeals waiting
for a decision in the case so they
would know how to proceed.
Chanos is deciding whether or
not to appeal the case to the Nevada
Supreme Court. He said that he
believes he would win, but that the
time and cost of the appeal will factor
into his decision.
The issue arose in 2005 after the
Attorney General’s office advised the
Commission that all votes would have
to be taken in public. The Commission
said this was a change of advice from
the Attorney General.
The Retail Association of Nevada
joined the amicus brief filed on behalf
of the Tax Commission. ■
V
Y
R
O
T
IC
www.RANNV.org
Retail Association of Nevada
DEA Issues Rules
T
NEW LOG BOOK
GUIDELINES:
• Time of Purchase
• Purchaser’s Address
• Misrepresentation Warning
DEA RULES
he Department of Justice’s
Drug Enforcement
Administration (“DEA”)
released its much
anticipated interim final rule
implementing the Combat
Methamphetamine Epidemic Act
of 2005 (“Combat Meth Act”). The
interim final rule establishes new
requirements for retail sales of
over-the-counter (nonprescription)
products containing ephedrine,
pseudoephedrine, and
phenylpropanolamine — drugs
commonly used in over-the-counter
cold and flu products. The rules
provide details on the certification
process, and provide clarification
on the daily sales limit and logbook
requirements.
As of September 30, retailers
were restricted from selling
any nonprescription product
that contained any amount of
pseudoephedrine (PSE), ephedrine
(EPH), or phenylpropanolamine
(PPA), unless they have successfully
self-certified with DEA that certain
employees have, in accordance with
criteria issued by DEA, undergone
training to ensure tht the individuals
understand the requirements of the
CMEA.
• Pharmacies must restrict
the sales of all dosage forms of
Pseudoephedrine, Ephedrine, and
Norpseudoephedrine
• Sales must be limited to 3.6
grams per individual per day
• Dry forms of these products
(including gel caps) must be sold
only in blister packs, each blister
containing not more than two dosage
units
• Purchasers are limited to
purchase no more than 9 grams per
month
Updated purchase logs are available
to order — YES, you need a new
version of the log book in order to
comply!
SALES TRAINING REQUIRED:
Pharmacies must certify employees
who sell the products have been
trained in the federal requirements.
Businesses wishing to selfcertify can do so online at www.
DEAdiversion.usdoj.gov. The
process is simple and requires
providing the pharmacy information,
including:
• DEA Number (if applicable)
• Point of Contact Name
• Business Contact Information
• Tax ID
• Number of employees trained
• Total number of employees at
location
• Type of establishment
(e.g. pharmacy)
• Products handled
SELF-CERTIFICATION
Procedures are also available for
chains to register multiple locations
in a single process. Information regarding the chain self-certification
process may be obtained by contacting the DEA Registration Unit at 800882-9539.
For all others to self-certify, use
the following Web site:
http://www.deadiversion.usdoj.
gov/meth/index.html and under
Required Training and Self-Certification, you will see the link under
Retail Vendor for Self-Certification.
Click on that link and you will be
brought to an additional page where
you can either: Download training
material; Self-certify; or Reprint a
Certificate. The Certification page is
a pop-up so you need to disable any
pop-up blockers. ■
NACDS
October 2006
Sales Tax
Holidays
Spreading
W
hen sales tax holidays
were first proposed, most
states adopted them to
coincide with back to
school shopping. Parents were able
to shop for school supplies and, in
some cases, uniforms or schoolspecific clothing, minus the state
sales tax.
They have proved so popular
with lawmakers, consumers and
states that the concept is spreading
and being applied to other items.
Florida, in an effort to save
energy, is applying the sales tax holiday to energy efficient appliances, or
those marked Energy Star.
The tax break was part of the
Florida Energy Act passed by the
Florida Legislature last May. Scheduled from October 5–11, 2006, during Energy Awareness Month, items
such as refrigerators, washing machines, dishwashers, air conditioners, ceiling fans, light bulbs and other items under $1,500 in price had no
sales tax added when purchased.
The tax holiday did not apply to
dryers and ranges because the wide
differences in how they are used
makes rating them impractical according to a spokesman from Home
Depot.
Numerous stores planned sales
around the tax holiday and advertising was heavy.
Florida officials would like to see
Energy Star become a household
word is Florida. They think the sales
tax holiday is a great start towards
that goal.
Meanwhile, Arkansas has just
completed an interim study on
sales tax holidays and legislation is
expected to be passed in their next
legislative session in 2007. ■
www.RANNV.org
TAX BREAK
Page 8
October 2006
Retail Association of Nevada
Page 9
Online Retailers’ Holiday Promotions
Starting Earlier, According to Shop.org/Shopzilla Study
W
ashington, DC, October 4,
2006—The holiday season
really will be starting earlier
this year, at least on the
Internet, according to results of the
2006 eHoliday Mood Study, conducted
by BizRate Research for Shopzilla and
Shop.org. This year, 38.5 percent of
multichannel retailers said that they
would start their holiday marketing
earlier this year than last and more
than half (62.5%) will begin promotions
by November 4. This trend is in
proportion to consumer preferences,
as one in five (19.8%) online shoppers
said they plan to shop for holiday gifts
earlier this year and 34.9 percent will
start their shopping by Halloween.
“Due to shipping deadlines,
online retailers have a shorter
promotional window for the holiday
season, so many of them want to be
first out of the gate to debut holiday
merchandise,” said Scott Silverman,
Executive Director of Shop.org.
“Multichannel retailers are very good
at responding to what their customers
want and, this year, customers want to
start shopping early.”
An increasing number of
online retailers will offer shipping
promotions this year including free
shipping with or without conditions
and discounted shipping. Two years
ago, only 64 percent of online retailers
offered free shipping with conditions;
this year, 83 percent of retailers will be
offering the promotion. This trend is
in line with customer expectations, as
three-fourths of shoppers (74.9%) said
that free shipping offers are one of
the most important factors when they
decide where to buy online. Many
retailers will also be adding “early
shopper” discounts (12% of retailers
will be adding this service for the first
time, with 38.7% of retailers offering it)
HOLIDAY SALES
MORE RETAILERS WILL OFFER FREE SHOPPING PROMOS THIS HOLIDAY
and “first time buyer” discounts
(13.3% will add this service for the first
time, with 30.6% of retailers offering it)
this year.
To bring customers to their
websites, multichannel retailers will be
planning a variety of online and offline
marketing strategies for the holidays.
Most online retailers (97.4%) will be
investing in search engine marketing
and comparison shopping engines
(73.1%). Companies are also using
more unconventional online marketing
strategies with 41.6 percent of retailers
incorporating blogs or RSS feeds and
79.5 percent of retailers using viral
marketing. Offline, retailers will invest
in traditional media advertising in
newspapers (44%), magazines (52%)
and on radio (31.6%) and television
(26.3%).
“Online shoppers have become
more diverse than ever in terms of
when and how they shop, so retailers
must market to the masses this year,”
said Helen Malani, Shopzilla’s Chief
Shopping Expert. “Multichannel
retailers plan to maximize their sales
by advertising both online and offline
this holiday season.”
The survey also found that
companies are extremely optimistic
about holiday sales, with one in five
online retailers (20.5%) expecting to
experience hyper-growth of 75 percent
or more over last year. An additional
third (29.5%) plan to experience strong
growth from 30–74 percent and one
in five (21.8%) are projecting growth
between 15–29 percent over last
holiday.
ABOUT THE SURVEY
The eHoliday Mood Survey,
now in its fifth year, is the only
holiday measurement tool based on
data provided directly from online
retailers in addition to consumer data.
The Survey, conducted by BizRate
Research, a division of Shopzilla, for
Shop.org, was designed to gauge
consumer behavior and online
retailers’ success during the winter
holiday season. The poll of 2,914
online buyers (defined as anyone
who has made an online purchase in
the last twelve months) and 80 online
retailers, all members of Shop.org, was
conducted September 18–21, 2006.
Shopzilla, formerly BizRate.
com, is the most powerful and
easiest-to-use shopping search site
on the Web. With an index of more
than 35 million products from more
than 87,000 stores, Shopzilla uses
ShopRank, a proprietary patentpending algorithm, to help shoppers
instantly find virtually anything on sale
from anyone, anywhere on the Web at
the best price. Shopzilla is owned by
The E.W. Scripps Company (NYSE:
SSP - News), a diverse media concern
with interests in national television
networks, newspaper publishing,
broadcast television stations, TV
retailing and licensing and syndication.
www.shopzilla.com
Shop.org, the association for
retailers online, is where the best
retail minds come together to gain the
insight, knowledge and intelligence
to make smarter, more informed
decisions in the evolving world of the
Internet and multichannel retailing.
Founded in 1996, Shop.org became
a division of the National Retail
Federation in January 2001. The
association’s membership includes
interactive executives from storebased retailers, catalog-based retailers,
Web-based retailers, and retail solution
providers. ■
NRF
www.RANNV.org
Page 10
Retail Association of Nevada
October 2006
Important Information for
SIG Members
The NRS governing self insured groups requires notifying
members of all new members to the Nevada Retail Network
Self Insured Group. New members for NRNSIG from
September 10, 2006 to October 16, 2006 are listed below.
Advanced Technology Laboratories
Auto & Truck Electric Inc
Bladow Properties LLC
Dayton Valley Transmission
Designer Tile and Marble
Drutex Windows and Doors
Erickson, Thorpe & Swainston Ltd
Like Family Home Nursing Services
Maximum Refrigeration
Perspective Home Health Inc
Precision Tune Auto Care
Shade & Steel Structures LLC
WCDF Industries
NRNSIG members who wish to register a negative vote on a new
group member, please write NRNSIG at 575 S. Saliman Road,
Carson City, NV 89701, indicating which member and the reason(s)
for the negative vote. ■
TAKE CONTROL OF YOUR WORKERS’ COMP COST
Be Part of…
The Nevada Retail Network
Certificate #5004
● Greater management control that cuts overhead costs
● Pre-employment screening at a small co-pay for NRN members only
● Team Safety/Loss Control Program for all members
● Investigation and defense of claims
● Direct savings that give members greater incentive to control losses
Take Control Today…
Call Willeta Kerschner
775-720-8125 or 775-882-1700
• Self Insured Group •
• Membership in RAN Required •
Sponsored by:
The Retail Association of Nevada
410 South Minnesota Street
Carson City, NV 89703-4272
MEMBERSHIP INFORMATION: Find out more about RAN’s self insured group.
Call Willie Kerschner, 775-720-8125,
or the RAN office at 775-882-1700 (toll free in Nevada 800-690-5959).
Don’t forget to check out our website, www.RANNV.org.
www.RANNV.org
October 2006
Retail Association of Nevada
Page 11
If the Democrats Win Congress
(THE NATIONAL JOURNAL DOES AN ANALYSIS)
T
he September 9, 2006 cover
story of the National Journal
explored the issues Democrats
will make front and center
if they win a majority of the House
and/or Senate in the November
election. Democrats need to win 15
seats to have a majority in the House;
Senate Democrats need six seats. The
turnover of six seats in the U.S. Senate
is unlikely, but a change in the House
leadership is a definite possibility.
Following is a brief summary of
the excellent in-depth analysis by the
National Journal.
Education: “No funding left
behind.” More funding for No
Child Left Behind, with a possible
weakening of standards when the law
comes up for reauthorization in 2007.
More emphasis on math and science.
Work-force training and Head Start
bills would move. Make college tuition
deductible from taxes, permanently.
Cut student-loan interest rates. Expand
Pell Grants. (Our Interpretation:
Higher taxes for businesses.)
Health Care: Fix the Medicare
prescription drug program, putting
seniors first by negotiating lower drug
prices. Promote stem-cell research.
Import more drugs from Canada and
other industrialized nations. Bills have
passed previously but all required a
“green light” from the HHS Secretary
who claims to lack resources to ensure
safety. Redirect efforts by the FDA.
Probe waivers given to the states
which change how they must
comply with Medicaid laws. (Our
Interpretation: Higher taxes for
businesses.)
Business Issues: Prohibit the
congressional pay raise until the
nation’s minimum wage is raised. End
tax giveaways that reward companies
for moving American jobs overseas.
(Our Interpretation: High taxes for
businesses.)
Trade Issues: would likely take
a backseat. China, etc. are unknown
quantities to many members. (Our
Interpretation: They don’t know
what to do, but it will cost.)
Balanced Budget: Democrats
will look to Clinton’s policies for ideas
S
I
S
Y
L
A
N
A
on balancing the budget, but ultimately
no one is optimistic that they will
succeed. (Our Interpretation: Raise
taxes for businesses.)
Energy: Will attempt to move
national energy policy away from the
supply-side and to instead concentrate
on encouraging conservation,
fuel efficiency and promoting
alternative sources of energy. (Our
Interpretation: Green power costs
more; this will raise your prices.)
Taxes: Stung with the taxhiking label in the 2004 presidential
election, Democrats are reluctant to
raise taxes. They are talking about a
middle-class tax cut. But if only the
House has a Democratic majority, a
stalemate over tax cuts is more likely.
(Our Interpretation: Dems have
convinced many that raising taxes
on businesses does not affect the
average person; Higher taxes.)
Iraq: Oversight, oversight,
oversight. (Our Interpretation: It
will cost — one way or another.)
Plus more critical coverage in the
media of the war. ■
Voters Decide Fate of State Minimum Wage
W
ASHINGTON — On
November 7, voters in six
states will decide whether to
reject or approve minimum
wage hikes above the federal rate of
$5.15 an hour, reports Stateline.com.
According to the news source,
Democratic organizers in Arizona,
Colorado, Missouri, Montana, Nevada
and Ohio were successful in certifying
ballot initiatives that seek to raise the
minimum wage. This year, 11 states
have enacted hourly minimum wage
hikes, which brings the total number
of states to 23 that have an hourly
minimum wage rate higher than $5.15
an hour.
The news source notes that
according to the National Conference
of State Legislatures (NCSL), state
legislatures considered 30 minimum
wage bills this year, which represents
a 10-year high of legislative activity at
the state level addressing minimum
wage increases.
National polls indicate broad
bipartisan support among American
voters to boost the minimum wage.
However, in the political arena, the
issue is split among Republicans and
Democrats.
Stateline.com writes that
traditionally, Democrats have
sponsored legislation to boost the
minimum wage as a means to “help
poor families climb out of poverty,”
while across the aisle, Republicans
oppose such measures because they
maintain “government-mandated pay
raises hurt the local economy and
create job loss.” Of the 30 minimum
wage bills introduced this year at the
state level, Democrats authored all.
However, “some key Republican state
lawmakers broke from the pack to
support minimum wage increases.”
Mike Flynn of the Employment
Policies Institute said, “A lot of uncommitted voters say they support wage
hikes, but not passionately enough to
make them vote on that basis.”
Stateline.com cites an April 2006
Pew Research Center for the People
& the Press survey that found 88 percent of the general public approves
minimum wage increases, and that 59
percent of Democrats and 31 percent
of Republicans “strongly favored” minimum wage increases. ■
NACS
NOTE: Nevada’s BQ 6 contains exemptions not
in the other states’ ballot questions. It amends
Nevada’s Constitution, instead of state law.
www.RANNV.org
C A P I T O L WAT C H
C
Memo from Washington (NACS)
ongress has gone home and started
its full-court press for the mid-term
elections. Before they left, legislators spent a rare Friday in session
to complete the work they deemed necessary before recessing – such as passing a
continuing resolution to keep the federal
government operating in lieu of finalizing
the nation’s appropriations bills.
Also on the ticket the last week, were
somewhere in the neighborhood of 90 or
more bills to be considered under suspension of the rules. Such legislation is typically considered to be non-controversial in
nature and requires a two-thirds majority
to be passed by the House. Particular to
NACS interests were two of these suspension bills focusing on motor fuels issues.
The first is a bill authored by Rep.
Chris Chocola (R-IN) that would specifically authorize Congress to spend money
from the Leaking Underground Storage
Tank (LUST) Trust Fund to pay for the
reforms enacted last year by the Energy
Policy Act of 2005. Currently, a restriction
limited the ability of the administration to
request additional money for Fiscal Year
2007 from the LUST Trust Fund and forced
it to rely upon a supplement grant program.
If the Senate follows the House lead and ap-
Nevada News
Serving the Retail Community Since 1969
Nevada News is published by the
Retail Association of Nevada,
a nonpartisan, nonprofit corporation
founded in 1969 representing the
Retail Community, the
Chain Drug Council and the
Grocery Industry Council.
Mary F. Lau
President/CEO
Elizabeth MacMenamin
Director of Government Affairs
Willeta Kerschner
Account Executive/Workers’ Comp
Lea Lipscomb
Government Affairs Lobbyist/
Legislative Analyst
Ande Engleman
Newsletter Editor
Sue Arzillo
Newsletter Design & Layout
proves this legislation quickly, most likely
during a lame duck session, then EPA can
proceed to dedicate additional resources
from the trust fund to help states pay for
such requirements as inspections.
The second bill of interest had not
been brought to a vote by press time but
was expected to be considered. Rep. Bart
Gordon (D-TN) earlier this year introduced legislation to address two concerns
of the petroleum marketing industry. His
legislation would direct the Department
of Energy (DOE), in consultation with
the National Institute of Standards and
Technology (NIST), to develop an affordable and reliable field test to measure the
sulfur level in ultra low sulfur diesel. Such
a mechanism would better enable retailers
to ensure the diesel fuel they receive and
sell is compliant with federal regulations.
The bill also directs the DOE and NIST to
develop a mechanism to convert existing
storage and distribution infrastructure to
better handle alternative fuels. Such an
effort could potentially lower the cost to
retailers who wish to sell such alternative
products as E-85.
Meanwhile, the business community
continues to press Congress to act on the
issue of the death tax. In a letter signed by
Retail Association of Nevada
410 South Minnesota Street
Carson City, Nevada 89703-4272
more than 30 associations, NACS told Congress that it continued to “support a permanent end to this destructive and onerous
tax.” The organizations explained that the
estate tax “discourages savings and investment, reduces wages and job creation, and
is the leading cause of the dissolution for
many family-run businesses.”
Final action on the death tax is still
possible this year as Senate leaders seek to
find a combination of issues that will generate enough votes to pass that chamber. The
last package, which included an increase
in the minimum wage and a package of tax
extensions considered essential, was unable to get the 60 votes necessary to break
a Senate filibuster. How issues will come
together to garner enough votes remains
unclear.
As you read this, members of
Congress should be back home asking for
your vote. NACS urges you to pay attention
to the candidates, ask them questions
about issues important to you, and make
your voice heard. There are less than six
weeks until Election Day. ■
John Eichberger
Vice President, Government Relations
PRESORTED
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