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					                                                                                                     APRIL / MAY 2006

Election Season Opens...
Who’s Running?
      pring is here and the filing season for candidates opened May 1, 2006 and closed May 12, 2006.
      Now we have some idea of what the elections and next legislative session may hold.
        Mary Lau, President of the Retail Association of Nevada, cautions that the wrong mix, elect-
      ed to office, could bring back the threat of higher or additional taxes.
“We already know that lawmakers are looking for money for state retirees, new roads and
all-day kindergarten. The state surplus can only go so far, and then they’ll be looking for new taxes,”
Lau explained.
        The chances of Nevada’s Assembly going Republican in this election are very slim. And
Democrats are challenging key Republican Senate seats such as Sandra Tiffany (R-Clark 5) and
Barbara Cegavske (R-Clark 8). A change of two seats could remove Senator Raggio as majority lead-
er and give the leadership to the Democrats. Lau cautions that voting will be very important
this year.
        “The Primary Election on August 15 and the General Election on November 7 can make a
difference in your businesses’ future. If you’re not registered to vote, get registered. If you’re going
to be traveling in August, get an absentee ballot,” Lau advised.
Following are some of the filings in key Nevada races:

Key races: Candidates are listed in alphabetical order. Minor parties are omitted. (I) - Incumbent

U.S. SENATE                                             GOVERNOR
Jack Carter, Las Vegas, Democrat                        Bob Beers, Las Vegas, Republican
John Ensign, Las Vegas, Republican (I)                  Melody Damayo, Henderson, Republican
Edward Hamilton, Las Vegas, Republican                  Jim Gibbons, Reno, Republican
Ruby Jee Tun, Carson City, Democrat                     Jim Gibson, Henderson, Democrat
                                                        Lorraine T. Hunt, Las Vegas, Republican
HOUSE OF REPRESENTATIVES DISTRICT 1                     Stanleigh Harold Lusak, Fallon, Republican
Shelly Berkley, Las Vegas, Democrat (I)                 Leola McConnell, Las Vegas, Democrat
Asimo Sondra “Silver” Lawlor, Las Vegas, Democrat       Dina Titus, Las Vegas, Democrat
Russ Mickelson, Las Vegas, Republican
Michael Ace Monroe, Las Vegas, Republican
Kenneth Wegner, Las Vegas, Republican                                                         Continued on page 9

Sharron Angle, Reno, Republican
Jill Derby, Minden, Democrat
Dawn Gibbons, Reno, Republican
Richard Gilster, Las Vegas, Republican
Dean Heller, Carson City, Republican
Glenn Thomas, Minden, Republican
                                                          TV Feeding Fears? ......................... 2
                                                          RAN Assists on Part D ................... 9
Mark Budetich, Boulder City, Democrat                     New Tips from Jim Larsen .............. 5
Tessa M. Hafen, Henderson, Democrat
Barry Michaels, Las Vegas, Democrat                       Crisis Public Relations .................... 4
Anna Nevenic, Las Vegas, Democrat
Jon Porter, Boulder City, Republican (I)                  Organized Retail Theft .................... 8
Freddie Warman, Indian Springs, Democrat
                Page 2                           Retail Association of Nevada                        April / May 2006

TV May Feed Fears, Food Industry Says
(Portions from the May 9, 2006 edition of Milwaukee Journal Sentinel)

         lthough the Asian form of         sumers were unable to get food at        of 165 degrees — is more than ad-
         avian influenza does not           home because a pandemic would            equate to destroy the virus.
         exist in the United States,       be “a disease of crowds,” Ham-               Conditions in the U.S. poultry
         and a pandemic might not          monds said. Schools would close          industry also are radically different
be imminent here, the nation’s             and restaurants’ businesses would        from those in Asia, where millions
supermarket industry and poultry           “disappear for some period,” as          of chickens, ducks and other
companies are bracing for needless         people would avoid crowded places        poultry live in close proximity with
panic that could be caused by              and eat meals at home to minimize        swine and other livestock and with
newspaper stories and TV shows.            risk of exposure, he said.               humans, the council notes on its
Recently the Food Marketing                     “If this problem comes to           Web site.
Institute met for their annual con-        America, we may have to share re-            By contrast, the vast majority
vention in Chicago. The Associa-           sources to find innovative ways to        of chickens and turkeys in the U.S.
tion represents about 23,000 of the        serve customers,” he said.               are raised in sheltered conditions
nation’s 30,000 supermarkets, and               Some experts think that mi-         where they have no contact with
has recently teamed up with the            grating birds could spread the           other animals and very little con-
National Chicken Council to pro-           virus to the U.S. this year. If that     tact with humans.
tect poultry sales “from needless          happens, the chicken industry will           The type of highly pathogenic
hurt because of irrational fear.”          immedi-                                                          H5N1 avian
     “Our (supermarket) members            ately be                                                         influenza
are concerned that people will             challenged           Avian influenza is a public                  that has
panic, whether or not there’s an           to quell                                                         killed poul-
influenza pandemic,” said Tim               fears that               health issue but not a                  try in Asia
Hammonds, president and chief ex-          the virus                                                        has not ac-
ecutive officer of the supermarket          could be                     food safety issue.                  quired the
industry’s trade association.              spread                                                           ability to
     The Chicken Council’s Web             through            “You can’t get avian influenza                 move easily
site, www.nationalchickencouncil.          eating                                                           from human
com, notes that the Asian form of          chicken,                from properly handled                    to human.
avian influenza has killed more             Ham-                                                             The U.S.
than 100 people worldwide since            monds                       and cooked food,”                    has
2003 and has killed or forced the          said. Avian                                                      never im-
slaughter of more than 200 million         influenza                said Tim Hammonds.                       ported
chickens, ducks, turkeys and other         is a public                                                      poultry
domestic fowl in Asia, Europe and          health                                                           products
Africa.                                    issue but not a food safety issue,       from Southeast Asia. Since the
     Still, the council, public health     Hammonds said. “You can’t get avi-       Asian flu crisis erupted, the federal
officials and the food industry said        an influenza from properly handled        government also has prohibited
it’s better to be safe than sorry.         and cooked food,” he said.               the importation of live birds or
Hammonds said the institute                     Avian influenza is caused by a       other potential carriers of avian
has assembled a national medical           virus, and like all types of viruses,    influenza.
advisory team and has created a            it is destroyed by the heat of nor-          The poultry industry has
consumer-friendly brochure about           mal cooking, he said.                    launched a Web site, www.avianin-
avian flu available at              The U.S. Agriculture Depart-        fluenzainfo. com, to respond to
If a pandemic were to occur,               ment has confirmed that this heat         public concerns. ■
it would spin out of control if con-       level — to an internal temperature

 April / May 2006                            Retail Association of Nevada                                Page 3

An Interview with Senator                                                                    Mark Your
Maurice Washington                                                                           Calendar
Q. What are the most                           more mar-
pressing issues facing the                     ket-based                                     NATIONAL RETAIL
2007 Legislature?                              approach?                                     FEDERATION
     Our statewide infrastructure                   Oh, I’m
needs, like water and transportation.          in favor of a                                 June 5–7
We are seeing an increasing demand             market ap-                                    Loss Prevention Conference
for more roads and highways, but we            proach, but                                     & Exposition
lack the funds for their construction.         it has to be a                                Minneapolis, MN
Another major issue is the affordability       fair market
of health insurance, and the growing           approach.                                     August 6–8
number of people that lack coverage            I’m opposed                                   NRF Tech 2006: IT Leadership Summit
for health care.                               to mandates                                   LaCosta Resort & Spa
                                               because they arbitrarily raise the costs      Carlsbad, CA
Q. Where do you find the money                  of coverage and limit options. Individu-
for infrastructure?                            als and employers need options as to          Jan 14–17, 2007
     Well, the most logical and equi-          what coverage they can afford and             NRF 96th Annual Convention & Expo
table source is user fees, like tolls for      what coverage they need.                      Jacob K. Javits Convention Center
new roads, and impact fees for sewer,                                                        New York City, NY
water and other utilities. The people          Q. Do you think there is an “un-
who use it pay for it. But I’d like to see     derground movement” by gaming
more collaboration between public and          and others to bring back gross re-
                                                                                             June 9–12
private sectors for quicker building of        ceipts in 2009?
                                                                                             Grocery Manufacturers Association
roads.                                              I don’t know if that is the case
                                                                                             GMA Executive Conference
                                               yet. I haven’t heard anyone rattling          White Sulphur Springs, WV
Q. Regarding health care, you                  sabers. What I don’t what to see again
chair the interim committee on                 is any industry-specific taxes. No one         June 12–14
health care. Are you finding some               industry should be targeted, and that         Food Marketing Institute
potential solutions to the growing             includes gaming.                              Washington Public Policy Conference
crisis that you can turn into legis-                                                         Grand Hyatt
lation that can be passed in 2007?             Q. Do you see any need at this                Washington, DC
     I’m very optimistic that we can           time to revisit the property tax cap
pass something next year. We are               issue next year?                              June 14–16
finding solutions, but some ideas                    Most people seem to be satisfied.         Supermarket Smarts
are a bit “out of the box,” which may          I have not heard of any law suits that        Philadelphia, PA
cause angst among some folks. I just           question the constitutionality of the bill,
hope that everyone involved will work          so I don’t think we’ll have to address it.    June 22–24
together to explore some of these op-          But we will have to see the outcome of        American Society for Automation
tions. We don’t have a choice, we have         the TASC and Prop.13 initiatives to see         in Pharmacy Midyear Industry
to stabilize the system and drive costs        how they may impact that.                       & Technology Issues Conference
down, and I think we can. We also                   I do know that Washoe County             Palm Beach, FL
need to address mental health in this          school district is concerned about how
scenario. It is a growing issue across         the tax cap will limit their bonding          Oct. 8–11
the state.                                     capability for school construction. I         NACS Show 2006
                                                                                             Las Vegas, NV
                                               think they will need to make their case
Q. Do you prefer the mandate ap-               to the people to seek how they want to
proach like Massachusetts just                 fund it. But that may be an issue that
passed, or would you prefer a                  we’ll need to address. ■

                Page 4                           Retail Association of Nevada                       April / May 2006

                                                                                    NEW SCAM
Crisis P.R.                                                                         INVOLVING
                                                                                   “BLACK VISA

         here was an old joke about     by bringing back “Jack”. Wearing
         how you knew it wasn’t
         a good day when your
                                        a clown head and suit, the figure
                                        represents the founder of Jack in the
                                                                                    GIFT CARD”
         business’s door opened and     Box. Running humorous ads, the             CARD DESCRIPTION:
there stood Mike Wallace and his        company was able to remind people               The card is black and has em-
“60 Minutes” camera-crew.               of how much they loved Jack in the         bossed numbers on it. It has a VISA
     Today, with the internet, blogs    Box while they were growing up.            logo on the bottom right side of
and 24-hour news stations, it doesn’t   The ad campaign was successful.            the card. In the top right portion of
take much to put your business in a         The LaTours, and co-author             the card it said “Gift Card $100” in
crisis mode.                            Elizabeth Loftus – Univ. of California,    white lettering. There is no name
    That was the situation for one      Irvine — surveyed 100 UNLV un-             embossed on the card as it is a
                                                                                   gift card.
fast food restaurant when a Las         dergraduates. The students, aware
Vegas wom-                                                         of the chili
                                                                                   METHOD OF OPERATION:
an accused                                                         incident,            The suspect obtains a Black
them of                 Today, with the internet,                  were shown      Visa Gift Card and changes the
serving her
chili with a
                  blogs and 24-hour news stations, two ads. Half   ent
                                                                        differ-    magnetic stripe to that of a valid
                                                                                   credit card.
portion of a       it doesn’t take much to put your were shown                          When taken at the register, it
finger in it.                                                       an ad offer-    will function as a credit card.
The ensu-
                        business in a crisis mode.                 ing a free           The sale will go through on the
ing publicity                                                      milk shake,     stolen number that was altered to
caused sales to drop by approximate-    the other half were shown an ad with       the magnetic stripe.
ly $2.5 million.                        a child enjoying a hamburger with
                                                                                   HOW TO IDENTIFY:
    According to a study by Kathryn     a restaurant’s Playland in the back-
                                                                                         The card number that appears
A. Braun-LaTour and her husband,        ground. The text on the ad asked
                                                                                   on the register screen will not
Michael, the restaurant made a mis-     readers to remember their childhood        match the embossed number on
take when it offered free milk shakes   visits to the fast food spot, along with   the Black Visa Gift Card.
in an effort to bring back customers.   the food and playing.                            This particular Black Visa Gift
    The study, “Is That a Finger in         The results were startling. Twice      Card had a dollar amount in the up-
My Chili?” was published in the         as many people who saw the ‘au-            per right side of the card and states
Cornell Hotel and Restaurant Admin-     tobiographical emotional’ ad were          it is a gift card. In this case, the
istration Quarterly. The authors de-    ready to go to the restaurant, take        transaction totaled far more than
termined that most public relations     their children and didn’t blame the        the stated gift card amount as the
following business crisises have        company, as those who saw the free         card had been altered with what
been wrong.                             milk shake ad.                             appears to be a MasterCard credit
                                                                                   card number.
    Rather than “laying low” to give        The differences between the
                                                                                         There is no customer name on
the public time to forget, companies    emotional ad and the free milk shake
                                                                                   the gift card, however it will func-
should be using an emotional adver-     ad were, “statistically speaking,”         tion as a credit card and require
tising appeal to reassure customers     immense according to Michael Las           a signature. Associates are to be
and bring them back.                    Tour, chairman of the marketing            matching signatures on credit card
    For example, Jack in the Box        department at UNLV’s College of            purchases. That would be impossi-
suffered a setback when seven           Business.                                  ble in this case as there is no name
people died from E. Coli in 1993.           Bottom line? Best way to handle        or signature on these cards.
Besides changing suppliers and          a crisis is to address the problem               There is a contact number on
cooking habits at its’ restaurants, the and appeal to people’s positive mem-       the Black Visa Gift Card that you
chain was able to repair its brand      ories of the company. ■                    can call to validate card activation. ■

  April / May 2006                            Retail Association of Nevada                                     Page 5

Purchasing and Self-Identity
By James Larsen, Ph.D.


            hen a person makes a                Ahuvia’s goal was exploratory. He           example, another young woman who
            purchase, especially for an         wanted to learn how acquiring and           decides to give up the life of an invest-
            important item like a car           possessing items fit in with the             ment banker and become an artist. All
            or house, a dress or a suit,        process of forming and maintaining          of the purchases that help her imple-
salespeople often observe a few silent          an identity. Following are his major        ment this decision have identity main-
moments before the purchase decision            findings.                                    tenance value in that they confirm this
is made. The customer is thinking                    People have a strong need to           change in her life direction. Imagina-
hard about something, and if the sales-         maintain their identities, and they ac-     tive fashion purchases that would be
person knew what the customer was               complish this by displaying it to oth-      quite unsuitable for an investment
thinking about, he/she could speak to           ers and then noticing the reactions of      banker will serve to help her trans-
this thinking with a goal of gaining a          others. For example, people whose           form her identity from what she was
purchase decision.                              self-identity includes acquiring wealth     into what she wants to become.
     Master salespeople who train nov-          through their own industry might                 When purchasing involves trans-
ices or write books for them, claim to          purchase expensive items that display       forming the self into a desired identity,
know what is going through the minds            this feature of their identity to others.   there is often an element of distrust
of customers. They say the customer             Driving a Cadillac through the old          in one’s own judgment or taste. For
is mentally trying on the new item to           neighborhood and being recognized           example, a young woman may want
see if it fits. That is, to see if it fits in     by former neighbors is an example of        to dress stylishly but distrust her own
with their self-identity, their image of        such a person’s self-identity mainte-       taste. She might imagine the prefer-
who they are or who they would like to          nance.                                      ences of another person whose taste
become.                                              Aluvia believes that personal iden-    and judgment she feels are superior
     Consider, for example, middle              tities are best understood as a story:      to her own, and a sales clerk could be
aged men who sometimes visit new-car            People come from somewhere, they            that person.
showrooms and examine the sports                encounter obstacles and conflicts, and            Purchases can extend the self,
cars. Master salespeople who observe            they move toward a particular future,       becoming literally a part of a person’s
this, tell us these men are only quiet          a unique future that becomes an ideal       identity. A tool can enable a person to
on the outside. In their imaginations,          for them. When purchasing fits into          perform tasks that he/she otherwise
they are speeding around town, and              this life narrative, then it helps people   could not perform. For example, a
they are trying to sense if they would          advance this story, and that’s desir-       well-equipped kitchen can enable a
feel younger and more energetic, more           able. People want to advance their life     person to become a cook. A chain
hopeful, with fewer aches and pains, if         stories, so purchasing which facilitates    saw can enable a person to become a
they owned these cars. It is the feel-          this process is significant and helpful.     woodsman. A fishing boat enables a
ings they are trying on, and if the car              Purchases may help resolve iden-       person to become a sport fisherman.
fits, they might just make a purchase.           tity conflicts. Imagine, for example, a      A private plane enables a person to be-
     Is this explanation true? Do cus-          young woman living in a high-rise in        come a pilot.
tomers mentally try on items before             Chicago, but suppose she grew up on              Professor Ahuvia’s research re-
they buy them? Aaron Ahuvia from                a ranch in Nebraska. Art works, wall        minds us of the intensely personal na-
the University of Michigan recently             hangings, and other memorabilia that        ture of much purchasing. Purchases
completed a study which helps answer            vividly displays the rural Nebraska life    often do have important personal
these questions.                                style would find a welcome place in          meanings as people wrestle with their
     Ahuvia conducted 70 phone                  her apartment, and living with these        self-identity needs. Identities need to
interviews and 10 follow-up, in-depth           objects and images would help her           be expressed and transformed, and
interviews with customers. The in-              feel at home in her Chicago high-rise.      salespeople stand in a crucial position
depth interviews lasted two to five              With these purchases, she creates a         to facilitate this process. Those who
hours each. Aluvia explored five top-            solution, a resolution to the identity      do a good job of it are likely to exceed
ics: 1) life history, 2) things people          conflict of a farm girl in the big city.     their sales goals. ■
love, 3) their history with these loved              Purchases may also help close
                                                                                            Reference: Ahuvia, Aaron (2005) Beyond the Extended
items, 4) people that they love, and            chapters in a person’s life narrative       Self: Loved Objects and Consumers’ Identity Narratives.
5) objects they felt neutral about.             and open new ones. Imagine, for             Journal of Consumer Research, 32 (June), 171-185.

                  Page 6                         Retail Association of Nevada                            April / May 2006

Are Nevada Businesses
                                                                                      Go On-Line
Being Set Up for a Big New Hit?
                                                                                      to Get Teen
        hey are, according to Steven       Legislative Committee chose a consul-
        Miller, editor of BusinessNe-
        vada and policy director for
                                           tant, largely along party lines, to look
                                           at Nevada’s funding of education. The      In Stores

        the Nevada Policy Research         consultant, which most Republicans                 ccording to E-Commerce
Institute.                                 on the committee voted against, is                 Times, a new Forrester
    In a recent column, Miller pointed     well-known for doing these studies in              Research study says that if
out that businesses were hit with an       other states. Those have all resulted              retailers want to capture the
                                   SET UP?
“unneeded tax increase” in 2003, and       in huge tax increases, and some court      loyalty of teen shoppers they better get
that in 2005, the Assembly, controlled     cases wherein the courts ordered the       “with it” in cyberspace.
by Democrats, held the Republican          states to raise taxes. (The interim com-       The Report says that today’s
controlled Senate hostage until they       mittee has been criticized for allowing    marketers are more “American
                                                                                      Bandstand” than “American Idol”
could get an unconstitutional split-       the consultant to hold secret meetings,
                                                                                      making it hard for them to understand
roll property tax passed. (Although        which many claim are a violation of
                                                                                      the “connected, gadget-grabbing 73
Nevada’s Constitution requires equal       Nevada’s Open Meeting Law. Only one        million people under the age of 18.”
taxation, residential properties are       Republican on the Committee fought             Marketing to teens presents a
now taxed with a 3% cap, while busi-       against the secret meetings—Senator        unique challenge -- an understanding
nesses received an 8% cap.)                Bob Beers.)                                of the “wired world” as well as a
    Miller says more is on the way in            How to fight these possible on-       generation that has hardly known life
2007. He claims that Assembly Demo-        slaughts against your pocketbook?          without the web.
crats are planning the following bills:    Miller suggests passage of Sharron             The study points out that teens
     • Another version of Richard          Angle’s Property Tax Restraint Initia-     are buying computer hardware,
Perkins’ 2003 bill AB 322 which would      tive is the answer. He points out that     software, DVDs, books and music off
have affected the profits of hospitals,     it would end the split-roll passed in      the Internet, while preferring to be in
                                                                                      stores for clothing, accessories, home
or as Miller puts it “turn them all into   2005, and reduce businesses’ property
                                                                                      items and footwear.
soviet-style state property.”              tax rates from the 8% to 2%. He further
                                                                                           Teens will also use lists and
     • Education Adequacy Study            claims that passage of Tax and Spend-      “e-mail a friend” to socialize their
— This study and any legislation           ing Control (TASC) would prevent           on-line shopping experience.
which results from it has had many         the lawmakers from putting new taxes           What don’t they like? Pop-up ads.
in the state concerned. The interim        onto business. ■                           Most teens are quite adept with the
                                                                                      tools to block them.
                                                                                          Promotions that do work for teens
                                                                                      are “advergames,” instant-win games,
Nevada Ranks #2 for E-Prescribing                                                     online coupons, streaming video ads
                                                                                      and cell phone promotions.

                                                                                          And the Report concludes that
        key indicator for patient safety   by roviding a more secure and              teens will have brand-loyalty except
        is using electronic prescribing    accurate prescribing process. The          for trendy items, then they’re not that
        technology. Nevada now ranks       award is the result of a nationwide        loyal. ■
        #2 in the Nation and received      review and ranking of electronic
a SafeRx award. Named in the award
were three Las Vegas physicians:
                                           prescribing activity, and is sponsored
                                           by the National Association of Chain
                                                                                               Quick Bites
                                                                                              Compiled by Sam Geist
     Drs. Danny Johnson, Richard King      Drug Stores (NACDS) the National
and Smitha Muthialu for implementing       Community Pharmacists Association           “History teaches us that men and nations
electronic prescriptions into their        (NCPA) and SureScripts.                     behave wisely once they have exhausted
patient care routine.                          Rhode Island was #1 and Nevada          all other alternatives.”    Abba Eban
    “SafeRx” recognizes how e-             was followed by Massachusetts,              “The most rewarding trait that a leader
                                                                                       can have is the ability to hire people who
prescribing improves patient safety        Maryland and Florida. ■                     are better than himself.” Dany Lennon

 April / May 2006                       Retail Association of Nevada                              Page 7

News Notes:
STUDY ON CONSUMER                              Despite the decline in paid cop-      as an individual, or is he a company?
SENTIMENTS                                ies of newspapers, the NAA also re-        According to the Court’s Decision,
    AlixPartners, a global corporate-     ported that newspaper-run Web sites        No. The National Federation of Inde-
advisory firm, released a study that       had an 8 percent increase in viewers       pendent Businesses says that a win
suggests “significant shifts in con-       in the first quarter.                       by McDonald could have started a
sumer desires.”                                Not measured were former read-        flood of suits against companies by
    The study ranks what consumers        ers who are now getting their gro-         individuals who felt they had been
say they want from their shopping         cery ads directly from their favorite      discriminated against in contractual
experience:                               stores by e-mail. Raleys and Smith’s       disputes.
 1. Courteous employees/customer          both offer sign-ups for their ads at            2. Arbaugh V. Y&H Corp. — A
    service;                              their Websites.                            waitress won a sexual harassment
 2. Well-marked prices;                                                ABC News      suit against the corporation. The
 3. Quality merchandise;                                                             Corporation then appealed on the
 4. In-stock merchandise;                 ECONOMIC GROWTH                            grounds that federal law didn’t ap-
 5. Fair prices;                          CREATES TAX SURPLUSES                      ply to companies with 15 or fewer
 6. Unconditional terms for                  While Nevada’s booming econo-           employees. The Supreme Court dis-
    returning items;                      my is creating a rumored $2 billion        agreed saying that the Corporation
 7. A quick and easy return process;      surplus, California was surprised to       should have raised the issue in the
 8. Easy to find what they want;           find itself with a $4 billion surplus.      beginning. Experts say that if they
 9. Clean stores;                         A surge of April income tax pay-           had, they could have avoided the en-
10. Convenient hours                      ments coupled with surprising strong       tire law suit.
                                NACS      growth in it’s economy led to the               3. Rapanos v. U.S. Army Corps of
                                          excess. The debate in Sacramento           Engineers — At issue are two sepa-
SUPERMARKET                               will now center on whether to save         rate wetlands cases which have been
REMODELS UP                               the money... or spend it. Governor         consolidated for the Court’s review.
    FMI’s Facts About Store De-           Arnold Schwarzenegger wants to pay         The cases asked the Court to decide
velopment, 2005 reports that rising       off some of the state’s debt.              whether the Clean Water Act allows
construction costs and intense com-                             Caltax Newsletter    the regulation of “isolated wetlands”
petition made remodeling the activity                                                by the Corps that have no connection
of choice for food retail companies       CALIFORNIA TOBACCO                         with “navigable waters.” The Court
in 2004. The report found that new        TAX INITIATIVE BACKERS                     will also decide whether or not a
store construction remained flat and       SUBMIT PETITIONS                           tenuous connection between a wet-
store closings declined. Also, the             A coalition of hospital operators,    land and “navigable water” is enough
study found that supermarket opera-       nurses, the lung association and           to allow regulation by the Corps, or
tors set themselves apart from their      others have submitted a petition, to       if there is a minimal standard that
competition by expanding specialty        raise the California tax on a pack of      should be applied.
services such as gourmet foods, cof-      cigarettes by $2.60. That would make            These cases have the potential to
fee bars, and dollar aisles, and by       a total excise tax of $3.47/pack, the      either greatly expand or sensibly lim-
launching niche-focused stores. To        highest in the nation. Proponents          it the authority of the Corps to issue
purchase the report, visit the FMI        claim to have 1.1 million signatures       permits for transportation construc-
Store at               and say the tax would raise $2.1 bil-      tion projects in all areas of the coun-
                                          lion a year.                               try. If the Court expands the ability
NEWSPAPER                                                        Caltax Newsletter   of the Corps to regulate wetlands,
CIRCULATION FALLS                                                                    transportation construction projects
    Newspaper circulation fell 2.6        CASES IN COURT                             will become subject to greater federal
percent in the six-month period end-      COULD AFFECT BUSINESS                      scrutiny, leading to greater delay, and
ing in March.                                 Three cases are pending before         state departments of transportation
    The Newspaper Association of          the U.S. Supreme Court that could          as well as local communities will be
America (NAA) reports that more           affect your business:                      effectively removed from project-
people are turning to the Internet            1. Domino’s Pizza V. McDonald          related decisions. A decision is ex-
and other media outlets for news and      — Can the sole stockholder of a com-       pected in May. ■
information.                              pany file suit against a corporation

                 Page 8                             Retail Association of Nevada                                April / May 2006

NACS Supports Coalition to Pass
Comprehensive Immigration Reform
W                                  IMMIGRATION
           ASHINGTON – NACS                  implementation of an efficient,                  while providing foreign workers
           has joined members of             practical and accurate employee                 the opportunity to adjust to a more
           the Essential Worker              verification system that provides                permanent status
           Immigration Coalition             ample protection from liability for                  Creating an earned pathway
(EWIC) in signing a letter to Senate         employers who comply with the                   to legal status for undocumented
Majority Leader Bill Frist (R-TN)            system. “This system should be                  workers who meet qualifying
and Minority Leader Harry Reid               rolled out in a reasonable manner               criteria, including an option for those
(D-NV) to express support for                and should not overly burden                    who earn status to eventually qualify
comprehensive immigration reform             employers either financially or                  for a more permanent status and
legislation authored by Sens. Arlen          functionally,” notes the letter. Other          potentially U.S. citizenship.
Specter (R-PA), Chuck Hagel                  recommendations include:                             “This program should include
(R-NE), Mel Martinez (R-FL) and                   Increasing border security                 also a fix to the employment-
Ted Kennedy (D-MA).                          to strengthen national security                 based immigrant visa process and
     “We write to voice our support          by providing for the screening of               numerical limitations,” notes the
for comprehensive immigration                foreign workers and creating a                  letter.
reform and call on leadership to             disincentive for illegal immigration                 NACS is working to educate
help ensure that the Senate passes                Establishing a guest worker                lawmakers to ensure immigration
legislation,” notes the letter, which        program that will help meet the                 reform measures do not place
outlines four key provisions the             employment needs of the economy                 additional or undue burdens
coalition is urging senators to              when U.S. workers are not available,            on retailers by creating an
consider. NACS is advocating that            therefore ensuring appropriate                  unmanageable employee verification
reform legislation calls for the             workplace and wage protections                  system. ■

Organized Retail Theft                                                                             QUOTABLE
By Lea Lipscomb, Retail Association of Nevada

         rganized Retail Theft (ORT)         bill (H.R. 3402) that will provide a clear
                                                                                            “The most damaging phrase in
         costs retailers approximately       definition of organized retail crimes           the language is: ‘It’s always been
         $30 billion a year nationwide.      and will make funding available for            done that way.’”
         ORT is theft from retailers by                                                                                   Grace Hopper
                                             the education and training of federal
professional shoplifters working for         law enforcement and the creation of a           “The next best thing to knowing
large, structured criminal rings that        national database to track the details
sell the stolen product through fencing      of retail crimes. This bill, by itself, will
                                                                                            something is to know where to
operations, flea markets, swap meets          not stop ORT, but it will raise aware-         find it.”
                                                                                                         Samuel Johnson, English Writer
and online auction sites. This type of       ness and establish a foundation for
criminal activity can easily move from       combatting this problem.                       “The most important trip you
city to city and across state lines. It            If you would like more information       may take in life is meeting people
not only impacts retailers, but consum-      on ORT, the National Retail Federa-
ers, law enforcement and legislators         tion,, and the Food Mar-
                                                                                            half way.”
                                                                                                                           Henry Boyle
as well.                                     keting Institute,, have
     There are currently no laws in          very valuable information on their             It’s easy to have principles when
Nevada that specifically address or-          websites. In addition, the California          you’re rich. The important thing
ganized retail theft. However, at the        Grocers Association’s website, www.            is to have principles when you’re
federal level, there is new legislation, contains an eight-min-
that will address this issue. In Janu-       ute comprehensive video that you can           poor.”
                                                                                                   Ray Kroc, founder of McDonald’s Corp.
ary, President Bush signed into law a        watch directly from your computer to
Department of Justice Reauthorization        learn more. ■

  April / May 2006                            Retail Association of Nevada                                       Page 9

Medicare Part D

        s the deadline neared                   seniors with their
        for senior citizens                     paperwork and
        to sign up for their                    signing on through
        Medicare Part D,                        computers to the
prescription benefit, RAN                        Social Security
went into action. Assisting                     website.
the State Health Insurance                          Besides Assem-
Assistance Program (SHIP)                       blywoman Bonnie
with organization and helping                   Parnell’s assistance
to provide volunteers, Mary                     in Carson City, Sen.
                                                                       Assemblywoman Bonnie Parnell (D-Carson) works with SHIP to
Lau, Liz MacMenamin and Lea                     Maurice Washing- help seniors sign up for Medicare Part D.
Lipscomb spent hours assisting                  ton (R-Sparks);
                                                                 Assembly-                  In Las Vegas, Congressman
                                                                 woman Heidi             Jon Porter (R-Dist. 3);
                                                                 Gansart                 Sen. Sandra Tiffany (R-Clark);
                                                                 (R-Reno) and            Assemblyman Joe Hardy
                                                                 Assembly                (R-LV); Assemblywomen Valerie
                                                                 candidates              Weber (R-LV) and Francis Allen
                                                                 Randi Thompson          (R-LV) as well as Assembly can-
                                                                 and Paul Mozen          didates Kris Munn and Jonathon
                                                                 assisted at the         Ozark helped numerous seniors
                                                                 Reno Senior             decide and sign up for the most
                                                                 Center.                 appropriate plans. ■
Liz MacMenamin, RAN, and Assemblywoman Bonnie Parnell
working at the Carson City Senior Citizens’ Center.

Candidate Filings (Continued from page 1)
ATTORNEY GENERAL                                                     STATE SENATE CLARK DISTRICT 5 (SEAT B)
Don Chairez, Las Vegas, Republican                                   Nathan Gayle, Henderson, Democrat
Catherine Cortez Masto, Las Vegas, Democrat                          John Jackson, Henderson, Republican
                                                                     Dennis P. Sarfaty, Henderson, Republican
STATE SENATE WASHOE-LYON DISTRICT 2                                  Sandra Tiffany, Henderson, Republican (I)
John H. Emerson, Sparks, Democrat                                    Joyce Woodhouse, Henderson, Democrat
Maurice Washington, Sparks, Republican (I)
                                                                     STATE SENATE CLARK DISTRICT 8
STATE SENATE CLARK DISTRICT 2                                        Barbara K Cegavske, Las Vegas, Republican (I)
Maggie Carlton, Las Vegas, Democrat (I)                              Chanda Cook, Las Vegas, Democrat
Tino Mendoza, Las Vegas, Republican                                  Tim Cory, Las Vegas, Republican

                                                                      (Next month, more filings)

             Page 10                      Retail Association of Nevada                                    April / May 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
                                                          March 10, 2006 to May 15, 2006 are listed below.
                                                          A & W Root Beer                       McDowell Insurance Services
                                                          Advanced Specialty Gases              Morts Auto Body
                                                          AV Arts LLC                           Northwest Handyman
                                                          Best Choice Home Healthcare Inc.      Prographics Inc
                                                          BMW Motorcycles of Las Vegas          Pyramid Veterinary Hospital
                                                          Boulder City Marine                   Reno/Carson Messenger Service
                                                          Coyote Grill                          Ruby Crest Design Inc.
                                                          Coyote Sports Bar & Grill             Sears Authorized Retail Dealer Store
                                                          Elko Restaurant Equipment             Solecon Laboratories Inc.
                                                             & Supplies LLC                     Sound Art
                                                          Environ Trading Inc                   Sun Valley Homes of Pahrump Inc.
                                                          Flying Diamond Pharmacy LLC           The Eatery
                                                          Franklin’s Tavern                     Tradewind Investments Inc.
                                                          Golden Steer Steakhouse               Triple S Tires
                                                          J C Water & Smoothie                  Turf Tech Inc
                                                          Jimmy John’s #326                     Unertl Optical Co. Inc.
                                                          Kids R Kids                           V & T Polishing
                                                          Las Vegas Boat Harbor Inc             Valley Golf Shop
                                                          Las Vegas Equities                    Westview Services Inc
                                                          Maxicare Home Health Agency LLC       Woody’s

                                                          NRNSIG members who wish to register a negative vote on a new
                                                          group member, please write NRNSIG at 810 E. Fifth Street, Suite A,
                                                          Carson City, NV 89701, indicating which member and the reason(s)
                                                          for the negative vote. ■

                                     ● Greater management control that cuts overhead costs
         Be Part of…
                                     ● Pre-employment screening at a small co-pay for NRN members only
 The Nevada Retail Network
         Certificate #5004            ● 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 •                               Sponsored by:
  • Membership in RAN Required •                       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,
 April / May 2006                            Retail Association of Nevada                            Page 11

Retail Tips                                                                              Nevada’s
By Barbara Wold, International Speaker, Author and Business Strategist,
Global Retail and Consumer Guru                                                          New Voter
1. Identify your values about
   customer service. Realize that
                                                  employees observe the boss’
                                                  behavior and their behavior
   customer service is a philosophy,
   not a department.
                                                  becomes a direct reflection of what
                                                  the boss is doing.                     System

2. Hire the right people to serve your         8. Go out and manage by wondering
   customers. Make sure they can                  around. Go out where the                          evada has a new statewide
   think on their feet and possess                customer is. Observe and listen                   voter registration system
   good people skills and judgment.               to how they are being treated by                  which should cut down on
3. Train your people. Tell them,                  the employees. Then praise your                   voter fraud and give us a more
   show them, let them practice and               people in public and correct their     accurate figure of those voting.
   observe how to effectively deal                behavior in private.                        The new system takes information
   with customers.                             9. Periodically call your customers       from all the county elections clerks
4. Develop their self-esteem. People              yourself to follow-up on a sale,       and puts into a central data base. Now
   cannot like and serve a customer               check on the service they received     elections officials are able to identify
   unless they like and serve                     or just say, “Thank you for your       those registered to vote in more than
   themselves.                                    business!”                             one county; those who have filed false
5. Respect and appreciate your                 10.Remember... a good salesperson         information to register; and those who
   employees. Trust them. Support                 is more important than the             are registered but deceased.
   their judgement. Show them how                 merchandise. The successful                 So far, there’s no evidence that
   they fit in the overall company and             manager and store owner will           those registered in more than one
   team. Recognize the value of their             be one who understands the             county have voted more than once, but
   work.                                          development and the delivery           these types of duplications can skew
6. Realize that a customer contact job            of high quality service, and one       Nevada’s voter turnout figures, mak-
                                                                                         ing it look like far fewer people voted

   is a stressful one. Consider cross-            who endeavors to meet the needs
   training and rotating employees                of both external and internal          than are registered.
   to do other jobs periodically. Also            customers. The successful                   Clerks are surprised at the number
   offer stress management ideas.                 organizations will be those known      of deceased voters since they try to
7. Be a model of good customer                    for their steadfast commitment to      keep up with deleting names of those
   service yourself. The “lengthening             service, quality and the ability to    who do not vote. In the past, there
   shadow” concept says that                      deliver it without fail. ■             were very few ways to verify informa-
                                                                                         tion given when registering to vote.
                                                                                         Now the statewide system will offer
                                                                                         new ways of checking registrations.
Thieves Abusing “Code Adam”                                                                     The new system that started op-
                                                                                         erating on May 8, and reviews voter
to Steal from Stores                                                                     registration reports sent in daily from
                                                                                         counties to the state computer, com-

                                                                                         paring Social Security numbers with
         he Code Adam system is                and load it with several large LCD        the state’s driver license and vital sta-
         designed to find children who          television monitors. As one suspect       tistics records.
         have gone missing inside a            pushes the cart, the other two head             If the state program spots a prob-
         store. But according to police in     toward the exit door. Once the couple     lem, such as someone who registered
Texas, some thieves are abusing that           gets to the door, they tell a worker      in one county but then moved to an-
system to steal thousands of dollars           their disabled child is missing inside    other county and registered again, the
worth of expensive television sets.            the store.                                counties are alerted and can delete the
     The robbery scheme is called “the              At that point, workers immediately   outdated registration.
Code Adam diversion”. Investigators            start searching the store for the               Nevada’s primary election is Aug.
say two women and a man have                   missing child. The emergency effort is    15 and the general election is Nov. 7.
tried it at several Sam’s Club stores          called the Code Adam search.              Early voting for the primary starts July
throughout San Antonio, TX.                         Meanwhile, the crooks sneak out      29, and early voting for the general
To pull off the scheme, police say the         the door with the television sets. ■      starts Oct. 21. ■
three suspects grab a shopping cart

                                                                          C A P I T O L WAT C H

                          National Retail Federation Lobbies
                          Congress on Tax Issues

      enior tax executives from many of                      other legislation.                             15-year depreciation provision extended,
      the nation’s major retail companies                         The meetings also touched on a range      but that the effort has been held up by
      gathered in Washington in April                        of other issues, including the need to make    Senate budget rules.
      to lobby Congress for extension                        permanent the $1.35 trillion package of             Winters also said retailers could face
of important tax provisions that expired                     temporary tax relief passed in 2001 and        a tough battle when the 2001/2003 tax
four months ago and to hear updates on                       2003 that is scheduled to expire after 2010.   cuts come up for renewal in 2010. By that
other tax policy issues affecting the retail                 The relief included cuts in personal income    point, Congress could be balancing the
industry.                                                    tax rates that have helped boost consumer      desire to renew the politically popular cuts,
     Members of the NRF Taxation                             spending, along with cuts in capital gains     particularly cuts in personal taxes, against
Committee asked that Congress move                           and dividend rates and phase-out of the        rising budget deficits.
quickly to renew the Welfare to Work and                     estate tax. Tax executives also called for          Bob Cline, director of state and local
Work Opportunity Tax Credit programs,                        rejection of a proposal from the President’s   tax policy economics at the Ernst and
along with a 15-year depreciation life for                   Advisory Panel on Federal Tax Reform           Young accounting firm, said retailers need
improvements to leased stores.                               that would take away the ability to deduct     to closely watch tax reform efforts going
     These programs, which expired at the                    the cost of imported goods as a business       on in a number of states. A wide variety of
end of 2005, offer businesses an annual tax                  expense -- a move that would effectively       business taxes once looked at separately
credit of up to $2,400 per employee to hire                  subject imported merchandise to a 30           are beginning to converge and need to
welfare recipients and other disadvantaged                   percent tax.                                   be considered as a whole, he said. In
individuals, and have been widely used                            Ways and Means member                     particular, he warned of the trend toward
by retailers to help those individuals                       Representative Sam Johnson, R-Texas,           gross receipts taxes. Committee members
move into the workforce. The 15-year                         told the Taxation Committee at a dinner        also heard from other E&Y experts, NRF
depreciation life is important to retailers                  that his panel is working to renew WOTC/       staff and IRS retail technical advisor Dave
because it is a reduction from the previous                  WWTC, to make the 2001/2003 cuts               Moser, who outlined details of a number of
39-year period.                                              permanent and to limit a range of “onerous     current tax issues.
     Legislation to renew these programs                     taxes” faced by businesses. He said he was          For more information, contact
has been part of the tax reconciliation bill                 particularly interested in providing relief    NRF Vice President and Tax Counsel
that has been stalled for about two years.                   from the Alternative Minimum Tax.              HYPERLINK “
NRF has worked to get the reconciliation                          Bob Winters, chief tax counsel for        com/ym/Compose?To=bernsteinr@nrf.
bill moved, but is also exploring options to                 the Ways and Means Committee, said the         com” \t “_blank” or call Rachelle Bernstein
have extension of the programs attached to                   committee wants WOTC/WWTC and the              at (202) 626-8168. ■

  Nevada News
                                                          Retail Association of Nevada                                                PRESORTED
                                                          410 South Minnesota Street                                                   STANDARD
                                                                                                                                   U.S. POSTAGE PAID
                                                          Carson City, Nevada 89703-4272
                Serving the Retail Community Since 1969                                                                            CARSON CITY, NV
                                                                                                                                     PERMIT NO. 98
    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
          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

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