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Home   Membership   Expos   Publications   Knowledge Center   Education   Coffee Service   Gov. Affairs May 6, 2011
 
 
 


High Priority
FDA issues draft rules on vending calorie disclosure

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The U.S. Food and Drug Administration released proposed rules on how the vending industry will be expected to disclose the calorie counts of food and beverages sold in vending machines. Draft rules were published in the Federal Register on Wednesday, April 6, 2011 and the public now has 90 days to comment. No final rules will occur this year, and enforcement may not occur prior to 2013. Some relevant points of interest to the vending industry include:
    • The Food and Drug Administration (FDA) agrees with the comments that a sign that is a poster may be an appropriate medium to convey the required calorie declarations, so long as the sign is in close proximity to the covered vending machine food or selection button. The Agency tentatively concludes that “close proximity” could mean adjacent to the vending machine, but not necessarily attached, so long as the sign adjacent to the machine is clear and conspicuous at the same time as the food, its name, or its selection button or selection number is visible.

    • FDA tentatively concludes that “front of package” nutrition information could be a way to provide visible nutrition information, so long as the criteria for color, font and type size are met and total calories in the article of food are included.

    • Per operator costs are estimated to be $2,400. FDA estimates that average per machine costs are less than $10 annually. This is considerably less than the FDA estimated last year.

NAMA will submit comments on behalf of the industry and will also circulate draft comments that individual members can use as a starting point for their comments. For additional information contact Ned Monroe at nmonroe@vending.org.



Government announces strict marketing guidelines
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The Interagency Working Group on Food Marketing to Children, which includes the Food and Drug Administration, Centers for Disease Control, the Department of Agriculture and the Federal Trade Commission, has proposed strict new voluntary rules on marketing food and drinks to those younger than 18. Under the guidelines, the marketing of certain foods would be limited to those which "make a meaningful contribution to a healthful diet" and those which lack ingredients that are unhealthy or fattening. The proposals would also limit advertising beyond television to include radio, magazines, the internet and social media. For additional information contact Ned Monroe at nmonroe@vending.org.


Feds issue rules for food on some government properties
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The General Services Administration and the Health and Human Services Administration have issued regulations for foods sold on government properties managed by HHS and GSA. Click here to follow the link. This document is a final version of a document NAMA reviewed last fall, and is less onerous on the industry and our customers than the earlier draft. An issue may be the sodium levels of snacks which will be capped at 230 mg sodium per serving. But it only requires at least 25 percent "better for you" product mix, and it doesn't discuss caffeinated beverages. So NAMA's repeated conversations with the GSA and HHS last year did improve the guidelines. The Health and Sustainability Guidelines are applicable to all food service concession operations and vending machines managed by HHS and GSA. GSA will work with concessions operators to progressively implement these guidelines for federal facilities as contracts expire and opportunities to enhance offerings emerge. For additional information contact Ned Monroe at nmonroe@vending.org.



Employment improves in 38 states in March.
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The U.S. Labor Department has reported that the nation's unemployment rate is slowly improving. According to the agency, 38 states gained jobs in March and the unemployment rate fell in 34 states, the largest number to see a decline in nine months. The rate rose in seven states and was unchanged in nine and Washington, D.C. Rising employment is good for the vending, coffee and food service industry, since Business and Industry remain the number one sales location for our membership. For additional information contact Ned Monroe at nmonroe@vending.org.


Conference for Food Protection seeking council members
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The Conference for Food Protection is an organization which brings together representatives from the food industry, government, academia, and consumer organizations to identify and address emerging problems of food safety and to formulate recommendations for changes to the Model U.S. Food Code. The Conference seeks to balance the interests of regulatory and industry people while providing an open forum for the consideration of ideas from any source. The Conference meets at least biennially to provide this forum. Though the Conference has no formal regulatory authority, it is a powerful organization that profoundly influences model laws and regulations among all government agencies and minimizes disparate interpretations and implementation. The CFP is seeking applications for Council membership at the 2012 biennial meeting to be held April 13-18, 2012 in Indianapolis, Indiana. Those in the vending, coffee or foodservice management industries with interest in food safety and food code issues are encouraged to apply. Interested parties may apply online at www.foodprotect.org. Applications will be accepted through June 30, 2011. For additional information contact Ned Monroe at nmonroe@vending.org.



Most states plan to raise business taxes to meet unemployment costs
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According to a New York Times article on April 28, "more than two-thirds of the states expect to raise taxes on businesses this year" in order to fund unemployment benefits. This state tax increase is due to "stubbornly high unemployment" which has "depleted the unemployment trust funds of most states." For additional information contact Ned Monroe at nmonroe@vending.org.


California bill would tax sweetened drinks
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A bill introduced in California would levy a tax of one cent per fluid ounce for drinks with added caloric sweeteners, including sports drinks and iced teas. Bob Achermann, spokesman for the California-Nevada Soft Drink Association, said a better approach to combating obesity is to raise awareness of eating well and exercising. For more information contact Sandy Larson at slarson@vending.org.


California: CAVC to hold legislative day May 11
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The California Automatic Vendors Council will hold a lobby day May 11 in Sacramento. The group plans to meet with key legislators on various issues including sugar sweetened beverage taxes, vending on state owned property and a new bill that would give authority to local governments to impose taxes on a variety of items including soda. The group will be delivering snack bags to the legislators and will be including information on the Fit Pick program. For more information contact Sandy Larson at slarson@vending.org.


California: Victory on sugar sweetened beverage tax
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On April 25, AB 669 was heard in the Assembly Revenue & Taxation committee and was held on the Suspense file, due to its cost. Assembly member Monning opened by stating that the equivalent of 16 sugar packets in soda is the main driver of obesity. The sponsors of the bill mentioned that the annual cost of medical care attributable to obesity in California is estimated to be almost $7.7 billion. They also said that, of the $1.7 billion estimated to be raised by this bill, 85% would go to the local level (schools and communities). There was a lot of testimony in both support and opposition. Opposition was lead by the California Nevada Soft Drink Association, The Restaurant Association and The California Retailers Association. CAVC also testified in opposition to the bill. Opposition pointed out that the obesity crisis will only be solved via calories in vs. calories out, not taxation. They also raised the issue of the taxes already being levied on soda and opposition to targeted taxation. The bill was heard again on May 2nd and did not make it off of the suspense file and is therefore dead for this year. For more information contact Sandy Larson at slarson@vending.org.


California: Vending on state property bill advances
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CAVC opposed AB 727, introduced by Assembly Member Holly Mitchell (D-Los Angeles), when it was heard in the Assembly Business and Professions Committee on April 12 and was successful in stopping the bill from moving forward with a vote in that hearing. The bill came before the committee again on May 3 and passed out of the committee. The bill will now go to Appropriations; CAVC will continue to oppose the bill. AB 727 would require that, by 2016, 100 percent of products in vending machines on state property comply with the nutritional standards outlined in state law. Current law requires that 35 percent of products in vending machines on state property comply with these nutritional standards. The CAVC lobbyist testified at both hearings in strong opposition to provisions in AB 727, arguing that the 100 percent requirement was entirely unworkable and would eliminate a vending operator’s ability to provide snacks and drinks to state employees that they request and desire. For more information contact Sandy Larson at slarson@vending.org.


District of Columbia: Workplace wellness bill
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DC B 143 establishes a workplace wellness policy for the District government; provides for healthier options in vending machines under District control and permits a healthy retail food vendor in the John A. Wilson Building. For more information contact Pam Gilbert at pgilbert@vending.org.


Illinois and Wisconsin: Midwest Annual Vending Conference May 13-14
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The annual meeting of the Illinois Automatic Merchandising Council and the Wisconsin Automatic Merchandising Council will be held May 13-14 at the Grand Geneva Resort in Lake Geneva, Wis. The theme of the meeting is "Back to the Future Again" and will feature both networking and education opportunities. The keynote speaker of the event will be Heather Bailey, an employment law attorney with the firm of Smith Amundsen in Chicago and a NAMA Knowledge Source Partner. Roundtable discussions covering recent industry developments will be held following the keynote during the Saturday morning business meeting. For additional information contact Kim Radulski at kradulski@vending.org.


Kentucky: Annual meeting June 24 - June 26 in Covington
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Mark your calendar for the Kentucky Automatic Merchandising Council, or KAMC, annual meeting June 24– 26, at the Holiday Inn in Covington. Please plan to join members of the vending industry for networking, education sessions, state and federal legislative updates and family fun. For more information contact Marylou Monaghan at mmonaghan@vending.org.


Maryland: MD-DC Vending Association annual meeting June 2 and 3
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Mark your calendar for the MD-DC Vending Association annual meeting June 2 and 3, at the Harbourtowne Resort in St. Michaels, Md. Please plan to join members of the vending industry for networking, education sessions, state and federal legislative updates, golf and more. For additional information contact Pam Gilbert at pgilbert@vending.org.


Maryland: Tax increase on alcohol
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The MD General Assembly pushed through a tax increase on alcohol in the final hours of its 90-day session. The measure (SB 994) will raise the sales tax on alcohol from 6 percent to 9 percent on July 1, 2011. For more information contact Pam Gilbert at pgilbert@vending.org.


Michigan: Legislative update
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The Senate passed all budget bills that provide funding for the FY 2011-2012. The House of Representatives is also working on their version of FY 2011-2012 budget bills. Senator Roger Kahn, Chairman of Senate Appropriations, has included funding for comprehensive state-wide tobacco tax enforcement, something MDVA has been urging for years. The Senator has asked that MDVA work with the State Police and Department of Treasury to develop a plan. MDVA will keep wholesalers updated as this process moves forward.

The House of Representatives passed Governor Snyder’s tax plan which included the elimination of the MBT and replacing it with a 6 percent corporate income tax; eliminating or reducing several income tax exemptions including the exemption for pensions, the Earned Income Tax Credit (EITC) and the state's film credit; and freezing the income tax rate at 4.35 percent until 2013. The proposal now goes to the Senate where it may have a more difficult time passing.

Governor Snyder, Senate Majority Leader Richardville, and Speaker of the House Bolger reached agreement on the revenue side of the FY 2011/2012 budget. The Governor’s original proposals have been adjusted include $150 million more in total cuts. This agreement does not include any tobacco tax increases or any other tax increases on MDVA members in the form of "loopholes." The Governor's office has begun an aggressive advocacy campaign to gather support across the board for this proposal. The various components of this agreement will need to be passed in both the Senate and the House of Representatives. For more information contact Pam Gilbert at pgilbert@vending.org.



Michigan: MDVA Day at the Capitol May 11
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An outstanding line-up of special guest speakers has been confirmed for the morning session on May 11, including Lieutenant Governor Brian Calley, Governor Snyder’s Chief of State Dennis Muchmore, and Speaker of the House Jase Bolger, Senate Majority Leader Randy Richardville, House Tax Policy Chair Jud Gilbert, House Minority Leader Rick Hammel, and Senate Minority Leader Gretchen Whitmer. This is an honor for MDVA! Please make every effort to attend this very important event in Lansing. Continental breakfast starts at 8:30 am, the program begins promptly at 8:45 am. It is critical these Legislative Leaders see that members are active and involved. We have had significant success in the past and we must continue that success into the future. If you have not already done so, please call or email your RSVP – and bring others from your organization as well. For more information contact Pam Gilbert at pgilbert@vending.org.


Missouri: Governor signs bill to eliminate corporate franchise tax
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Missouri Governor Jay Nixon recently signed a bill that will gradually phase out the state’s corporate franchise tax over the next five years. The tax is not based on whether a corporation is a franchise, but is actually based on the amount of assets that a business has located in Missouri. The current franchise tax is one-thirtieth of one percent of a company’s taxable assets. Governor Nixon signed the bill in the hopes that eliminating this burdensome tax will allow for company expansion and job creation by Missouri employers. For additional information contact Kim Radulski at kradulski@vending.org.


Missouri and Kansas: Mid-America annual meeting June 10-12
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The Mid-America Automatic Merchandising Association will hold its annual convention June 10-12 in Lake Ozark, Mo. The featured speaker will be Ned Monroe, NAMA Senior VP of Government Affairs, who will give members advice on how to protect their companies from the government’s attack on their bottom line. Topics will include healthcare reform, calorie disclosure in vending, ADA reach regulations, tax increases and tax breaks. You won’t want to miss this interactive session! The Missouri and Kansas lobbyists will also be present to give state legislative updates. In addition to the business meeting, the weekend will include a silent auction, pool party and networking receptions, plus spouse and children’s programs. For additional registration information contact Kim Radulski at kradulski@vending.org.


New England - Conn., Mass., Maine, N.H., R.I., Vt. - Annual meeting June 11 and 12
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Please plan to attend the New England Annual meeting, hosted by the New Hampshire Vending Association, in Portsmouth, N.H., June 11 and 12. Enjoy a cruise on the harbor, a round of golf, or Market Square Day, followed by an evening with friends and colleagues on Saturday. Sunday morning’s business meeting includes a discussion of state and national issues facing the vending industry. For additional information contact Pam Gilbert at pgilbert@vending.org.


New Jersey, Pennsylvania, Delaware: Tri-State annual meeting June 16 and 17
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Mark your calendar for the Tri-State annual meeting June 16 and 17, at Caesars Atlantic City. Please plan to join members of the vending industry for networking, education sessions, state and federal legislative updates, golf and more. For additional information contact Pam Gilbert at pgilbert@vending.org.


New York: Vending Association Lobby Day May 11
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article
Mark your calendars for the New York State Automatic Vending Association Lobby Day in Albany on May 11. Plan to visit with legislators on issues affecting the vending industry in New York as well as issues affecting businesses in the state. For more information contact Pam Gilbert at pgilbert@vending.org.


New York: NY State Automatic Vending Association meeting June 8
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Please plan to join the New York State Automatic Vending Association for a fun and informative event in Binghamton on June 8. Talk with NYSAVA board members and NAMA staff, network with members, and learn what your state and national associations are doing for you. The day includes board of directors and membership meetings, a tour of the Kirkwood Frito-Lay Plant, and bbq dinner at the Binghamton Mets game that evening. For more information contact Pam Gilbert at pgilbert@vending.org.


Ohio: State association annual meeting May 13 and 14
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It's not too late to register for the OAMA Annual Meeting May 13 and 14 at Deer Creek State Park in Mt. Sterling, Ohio! Please support your state vending association and plan to attend this networking, education and golf event. For more information contact Pam Gilbert at pgilbert@vending.org.


SEVA Convention set for August 3-5, 2011
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The SEVA Convention is an annual event for operators and suppliers in the Southeast – come for education, networking, social events and of course, family fun! It will be held August 3-5, 2011 at Sandestin Resort in Destin, Fla., a location on Florida's Emerald Coast that offers something for everyone. Events during the three-day convention include a golf tournament, first-rate education sessions, beach parties, a luau and much more. Registration brochures will be sent out in mid-May. Interested in becoming a convention sponsor? Please visit www.vending.org/seva to view the sponsorship brochure and make your pledge online. For additional information contact Kim Radulski at kradulski@vending.org.

The National Automatic Merchandising Association www.vending.org

HEADQUARTERS: 20 N. Wacker Drive, Suite 3500, Chicago, IL 60606-3102, Voice: 312-346-0370, Fax: 312-704-4140

EASTERN OFFICE: 1600 Wilson Blvd., Ste. 650, Arlington, VA 22209, Voice: 571-346-1900, Fax: 703-836-8262

SOUTHERN OFFICE: 2300 Lakeview Parkway, Ste. 700, Alpharetta, GA, 30009, Voice: 678-916-3852. Fax: 678-916-3853

WESTERN OFFICE: 80 South Lake Avenue, Suite 538, Pasadena, CA 91101, Voice: 626-229-0900, Fax: 626-229-0777



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