NRHA Legislative Council meets, reviews key issues

Hardware Retailing, Sept, 2006

[ILLUSTRATION OMITTED]

The North American Retail Hardware Association's (NRHA) Legislative Leadership Council gathered for its mid-year meeting during NRHA's National Convention in Williamsburg, Va.

Chaired by Dave Warren, Dave's Ace Hardware in Milton, Wis., members of the council in attendance were Bill Coakley, Coakely's Ace Hardware, Canton, N.Y.; Paul Easter, Easter's Inc., Altoona, Iowa; Mitch Haase, Mitch's Incredible Ace, Plainfield, Ind.; Ken Hellmuth, Hazen Hardware Hank, Hazen, N.D., and Bruce Johnson, Johnson's Ace Hardware, Wellford, S.C.

Top of the agenda was an update on the political climate in Washington and the status of the association's priority legislative issues by John Satagaj, NRHA's Washington counsel.

Both parties are jockeying for voters in this fall's mid-term election, Satagaj said, pointing out that there is little time left to act on major legislative issues because of a month-long recess in August and a desire to leave Washington in early October to campaign. He said there was already talk of a lameduck session in November.

Turning to NRHA's priority issues, Satagaj noted that legislation has been introduced in the Senate to ease the way for states to require online, catalog and direct mail merchants to collect sales taxes but is unlikely to pass this year.

Satagaj said that legislation to provide permanent estate tax relief for small businesses could pass. He was less optimistic about passage of legislation to allow the creation of association or small business health plans, saying that, although the House had passed such a bill, the Senate failed to act.

On the matter of product liability reform, Satagaj said that Congress has changed tactics from a major overhaul of the nation's tort system to incremental changes. One of those changes is the Innocent Sellers Fairness Act, which would protect retailers from inclusion in product liability lawsuits. The bill isn't expected to see a vote this year but could be reintroduced successfully in the next Congress.

There is growing interest in energy conservation and environmental protection, Satagaj said, adding that Congress gradually is moving toward regulations such as CAFE standards for vehicles and incentives for energy efficient appliances, homes and buildings.

On other issues, he told retailers not to be surprised if the federal minimum wage were increased this year. He also alerted them to increased attention to products containing lead by state legislatures and the Consumer Product Safety Commission.

The council will meet again in January to set priorities for 2007.