MERCHANTS MESSENGER VOLUME THIRTEEN NUMBER ONE SPRING 1997 VIVA LAS VEGAS: COME TO OUR SPRING CONFERENCE Participate in our Spring Conference in Las Vegas scheduled for Wednesday, April 2, and Thursday, April 3. Room rates for Harrah's Casino, 3475 Las Vegas Boulevard, are as follows for Monday, March 31, through Wednesday, April 2: single and double - $63.00; triple - $78.00; and quad - $93.00.If you want to stay through Thursday night, April 3, the rates are: single and double - $99.00; triple - $114.00; and quad - $129.00. Hotel tax is 8%. You must negotiate weekend rates yourself based on availability of rooms. You must call 800/634-6765 and refer to Group Code 103NFBM. You must guarantee the cost of your reservation plus tax for the first night by check, money order or valid credit card. MAKE YOUR RESERVATION BY MARCH 3, 1997. We plan to meet all day on Wednesday and adjourn by Thursday noon. We scheduled a mid-week conference to get the best room rates. IT TAKES THE FEDERATION TO WIN A VICTORY By Charles Allen Many of you know that the Kentucky Business Enterprise Program has a single vendor policy which the Vendors Committee was able to negotiate with the agency in 1995. The policy has been implemented through attrition. Of the five multi-vendor locations remaining, two involve family members. I myself have been alone since January 1, 1996. This policy change represents the end of a struggle that lasted almost twenty years. It involves the work of many Federationists such as Dennis Franklin, who once served as president of our Louisville chapter and as chairman of our Vendors Committee. Raymond Katon has served as president of our Louisville chapter and has been a member of our Vendors Committee for years. Who could ever forget Russell Sanford, former president of our Kentucky Merchants Division, who campaigned tirelessly for what he called "one-on-one?" He was a lifetime member of our national Merchants Division and served on our Board of Directors. Russ loved the Federation and attended conventions and the Washington seminar regularly. Dennis and Ray often attend conventions and the Washington Seminar. Although different persons have led our struggle at different times, our shared focus has never deviated. The National Federation of the Blind has been our source of strength over the years; faces may change - the philosophy is constant. The last series of events that brought about change began prior to the meeting in Washington, D.C. of the National Council of State Agencies for the Blind with vendors from all over the country. The meeting's purpose was to identify problems in the vending program. Our NFB Director of Governmental Affairs, James Gashel, contacted Don Morris, our Merchants Division treasurer, and me to get our input into a fact sheet he was developing for the meeting. The multi-vendor system was one of the problems Mr. Gashel listed. The NFB fact sheet influenced the outcome of the NCSAB meeting and had a favorable impact on our Kentucky Department for the Blind Commissioner, Priscilla Rogers. (We shall hope our efforts had a positive influence on other administrators throughout the country.) Commissioner Rogers got to know and to work with Federationists throughout the country. She came to understand that it would be far better to put agency and vendor resources into improving our program rather than to continue spending time and money in arbitration. It finally became possible to negotiate the single vendor policy. Before the NCSAB meeting I had filed a grievance against the agency because of the agency's placing another vendor with me when the assistant's position became vacant. With my wife Betty's assistance, I filed for and won an administrative review. The win was meaningless because the agency had already filled the position. I then lost the evidentiary hearing. The hearing officer said that, no matter how well I could run a facility, the agency had the authority to assign another vendor to work with me. My attorney, Stephen Bolton, was astounded at the decision. When Commissioner Rogers received a standard notice from the Rehabilitations Services Administration Commissioner, Fred Schroeder, requesting that we try to negotiate a settlement, making federal arbitration unnecessary, she, Stephen Johnson, BEP Director, and I began talking again with our new single vendor policy in effect. I believed that the settlement had to involve fair treatment of the vendor then assigned as my assistant. He had been assigned to work with me without being told that I was involved in a hearing process to establish my facility as a single vendor operation. The National Federation of the Blind introduced me to an attorney named Andrew Freeman who had wide experience in federal arbitration in the vending program. His ability and understanding were key elements in developing a settlement acceptable to my former assistant and to me. The agency built a vending route for my former assistant who is pleased with the outcome. (Incidentally, he now holds office in two of our NFBK chapters.) The Federal Regulations many times use the phrase "the vendor in the location." I am finally the ONLY vendor in MY location. In looking back over this long struggle, I am keenly aware that the National Federation of the Blind has been essential to the continuation of the battle and to its final victory. We again recognize the significance of the NFB in the lives of blind persons. Financial Corner by George Littrell, III Many of you will remember George Littrell, our Associate Member, from the presentation he made at our spring conference in New Orleans, 1995. The following article by George updates several important tax changes and describes new pension possibilities as well as investment ideas. Among those he includes is the Dow 10 Investment Trust. It may or may not work this way for you, but I invested in the Dow 10 Trust, January, 1995, in the twenty-five months since, my return has been 70.8%. That is to say, that every one hundred dollars is now worth $170.80, after only twenty-five months. Call George at Merrill Lynch 1-800-595-4204. Don Morris Tax Law Changes We have seen some big changes in retirement planning and pension plans. The Small Business Job Protection Act of 1996 has many provisions that will affect both small and large businesses. I will outline a few here: Spousal IRA The spousal IRA contribution has been raised to $2,000 from $250. This means that everyone can contribute $2000 to an IRA every year. (The old limit was $250.) Everyone should consider putting away money in an IRA. Most people do not make IRA contributions because they are not tax deductible. The main benefit on an IRA contribution is not the tax deductibility, but the long term tax deferral. The worst enemies of your savings are inflation and taxes. The IRA or other tax deferred accounts eliminate taxes on your savings. From that point your job is to make good investment choices with your IRA dollars, so that you can keep your money growing faster than the inflation rate. You should look for ways to earn at least 5% to 8% on your retirement dollars. Repeal of the SARSEP Although the basic SEP plan is still in place, the Salary Reduction SEP has been put on the shelf. If you did not have a SARSEP opened by 12/31/96, you can no longer use this plan for your small business. (All plans in place before 12/21/96 are grandfathered) However, the have introduced the 401(k) SIMPLE and the SIMPLE Retirement Accounts for small businesses. 401(k) SIMPLE and SRA (SIMPLE Retirement Accounts) The government has created a new retirement plan for the small business. This plan applies to businesses with less than 100 employees. SIMPLE (Savings Incentive Match Plan for Employees) allows employee salary reduction, like the SARSEP, but requires employer matching contributions to certain levels. The SIMPLE is a pretty fair plan for a small business. They removed the participation and percentage limits on the employer contribution to a retirement plan in exchange for a small matching contribution for the employees. The employer must match the first 3% of each participating employees' contributions. The employer does not have to make contributions for non-participating employees. The good news is that the percentage limits on the employer's personal contribution have been lifted. The problem with the SARSEP and regular 401(K) is that the employer could contribute very little, if the employees did not make substantial contributions. The cap on the employer's personal contribution is set at $6000 in the SIMPLE. This should make them very attractive to employer's who will have little participation from there employees or had low average contribution rates. The only complication is that each plan must file a form 5500 each year. Dow Ten Investment Strategy I have spent some time on how to save for retirement, here is an investment to use for some of those retirement dollars. The Dow Ten Strategy is very simple and has been very successful over time. Just take the 30 Dow stocks and put them in order from highest dividend yield to lowest dividend yield. You then buy equal amounts of each of the top ten yielding stocks and hold them for 12 months. At the end of a year, you re-rank the list. Sell the stock that have fallen off the list and buy the stocks to replace them. The results have been well above the Dow average and the S&P average over the last 10 years. If you have any questions please call (800) 595-4204 or write P.O. Box 841, Frederick, MD 21705 From the Bookshelf Although the following books are not about our industry, they are about innovative thinking and creative/intelligent problem solving in business. The first book titled "The Goal" by Elihau Goldratt and Jeff Cox, RC 30293. The book is narrated by Roy Avers and is complete on seven sides. From the annotation: This guide for improving your business is disguised as a novel. Alex Rogeau, Division Manager of a manufacturing plant, has a business and marriage that are both about to collapse. With the help of an old friend, who offers instructions about creative approaches to improving productivity and profitability, all is saved. This book is about progress, about the creation and acceptance of improvements - change for the better. It is about a process of ongoing improvement. This global perspective of organizations can be used to prevent the decline of manufacturing (even as practiced within our facilities). Whether the operation is a one-man band or whether there are many employees, identifying bottle necks is the first step in this process of improvement. As in our enterprises, inventory control, order processing, customer satisfaction and management decision making are all problems which Alex and his colleagues identify and solve. The book is recommended to learn creative approaches, and problem solving which can be applied to our business. Another recommended reading: A question often asked or a statement made is, "I want to go into business, what shall I do?" Those of you who read this and are in business recognize the many missing ingredients in the question. A book titled, "The Entrepreneurial Mind" RC 31825, is a good primer for would be business owners. Written by Jeffrey A. Timmons, narrated by Phil Reagensdorf, it is complete on five sides. Annotation: A professor at Babson College and Harvard Business School writes a how-to book for entrepreneurs based on his experience as a teacher, researcher and practitioner. Some of the topics covered are skills that are needed; forming a new venture team; the family business; the entrepreneur and the law; planning and goal setting; and getting feedback from others. What are the attributes, attitudes, philosophies and strategies of successful entrepreneurs? How are entrepreneurs born and made better? What are the myths and realities about the entrepreneur? What competencies must entrepreneurial managers have to lead an organization? This book offers a wealth of new information drawn from the venture capital industry and from research. The author puts his money where his mouth is. In addition to teaching, he is an advisor and investor in emerging firms. Following are some chapter titles which are indicative of the book's subject matter: The Elements of Success; Start Ups and Early Growth; The Nature of Success, What Does It Take? What Skills Are Needed? Forming the New Venture Team; Rewarding the New Venture Team; The Family Venture; Personal Ethics and the Entrepreneur; Planning and Goal Setting; Shaping a Personal Strategy; Assessing Entrepreneurial Attributes and Roles. Newsline for the Blind: Enclosed as an insert in this issue of the Merchants Messenger is a brochure describing Newsline For The Blind. This is a wonderful service. If you are not familiar with Newsline, read the brochure. See if your chapter (city or State) can sponsor the service or can find donors to sponsor it. Newsline for the Blind is the best way for blind people to stay current in detail with today's news and information. Vending Machines Tell All Charles E. Hamilton, Director of the Business Enterprise Program of Minnesota, called me the other day, with exciting news. Rather than me trying to repeat it, Chuck has provided two letters which are self explanatory. Finally, somebody is listening and responding to the needs of blind vending machine operators. Presumably we will be able to access all of the digital information eventually. Read the letters for more detail and talk to Chuck at our spring conference. Introduction of the 1996 Series Currency by Gary Lowman, U.S. Secret Service There will be no recall or devaluation of U.S. currency already in circulation. The United States always honors its currency at full face value, no matter how old. The new $100 notes, the first in the series, were introduced into circulation in March 1996. The new designs of lower denominations will be introduced later, one at a time, at intervals of approximately six to twelve months. As older notes reach the Federal Reserve from depository institutions, they will be replaced by the newer notes. This multi-year introduction of the new currency is necessary because of the time-intensive processes involved in engraving and producing the new designs. Sufficient inventory will be produced to ensure worldwide availability of the new series. The Bureau of Engraving and Printing will provide machine manufacturers with new notes so they can prepare vending machines, ATMs and other cash-handling equipment. While machine manufacturers will have to make modifications to accommodate the new bills, they will have a broader field of machine-readable features from which to choose to authenticate currency. In conjunction with the Federal Reserve, the Treasury Department will conduct a worldwide public education campaign with two primary objectives, communicate to the general public that there will be no recall or devaluation; and provide information about authenticating the new series to the public as well as central banks, depository financial institutions, other cash handlers and law enforcement agencies. The New Design - The new currency will be the same size and color as the old notes, with the same historical figures and national symbols. "In God We Trust" and the legal tender wording also will remain on the new bills. This continuity will facilitate public education and universal recognition of the design as genuine U.S. currency-an important consideration since there will be dual circulation of the old and new currencies around the world. A larger, slightly off-center portrait Is the most noticeable visual change. The larger portrait will incorporate more detail, making it easier to recognize and more difficult to counterfeit. Moving the portrait away from the center, the area of highest wear, will reduce wear on the portrait, shifting the portrait off center will provide room for a watermark, making it harder for counterfeiters to print. The watermark will depict the same historical figure as the portrait. Serial numbers on the new currency will differ slightly from old currency. The new serial numbers will consist of two prefix letters, eight numerals, and a one-letter suffix. The first letter of the prefix will designate the series (for example, Series 1996 will be designated by the letter A). The second letter of the prefix will designate the Federal Reserve Bank to which the note was issued. In addition, a universal Federal Reserve seal will be used, rather than individual seals for each Reserve Bank. The use of a unique thread position for each denomination will guard against counterfeiting. Among the other counterfeit deterrent features are color shifting ink, micro printing and concentric fine-line printing: Color shifting ink changes from green to black when viewed from different angles. This feature will be used in the numeral in the lower right-hand corner. The numeral in the lower left-hand corner will incorporate micro printing, a printing technique using lettering that can be read with a low-powered magnifier. Extremely small print ("USA 100" on the $100 bill) appears as a thin line to the naked eye and yields a blurred image when copied. On the $100 bill, similar micro printing will also be used on the lapel of Benjamin Franklin' s coat. The background of the Franklin portrait on the $100 note will incorporate the technique of concentric fine-line printing, as will the background of the picture of Independence Hall on the reverse side. This type of fine line printing is difficult to properly resolve on scanning equipment and to accurately replicate by other means of printing. Although all denominations of currency will have security features, the number of features will vary according to denomination. The $100 note will have a full package of features, while the $1 note will have fewer and less sophisticated features. The basic appearance of all denominations will-not vary. History of the Redesign - Until the late 1920s, U.S. currency was redesigned frequently. There also were several types of notes in circulation: United States Notes, National Bank Notes, and Silver Certificates. Since the introduction of the Series 1928 Federal Reserve Notes, changes in the design, including the use of micro printing and a security thread in Series 1990, have not affected the overall architecture of U.S. currency. The counterfeit-deterrent features added in Series 1990 were the first stop in responding to advances in reprographic technologies. Although these features have proven effective and will be retained, additional measures are necessary to protect against future threats posed by continued improvements in copy machines and scanners. The new design, beginning with Series 1996, is the culmination of a five-year study aimed at staying ahead of the counterfeiting threat and is part of a continuing process to protect U.S. currency. Authority to change currency design and security features rests with the Secretary of the Treasury, but Congress has been informed throughout the redesign process. The New Currency Design Task Force, comprised of representatives from the U.S. Treasury Department, Federal Reserve System, U.S. Secret Service and the Bureau of Engraving and Printing (BEP) made its recommendations to the Advanced Currency Deterrence Steering Committee which then made recommendations for the new design and security features to the Secretary of the Treasury. A National Academy of Science (NAS) Committee on Counterfeit Deterrence Features conducted complementary but separate studies. More than 120 security features were examined and tested, including those submitted in response to a BEP solicitation, those used in other world currencies, and those suggested by the NAS. Evaluation criteria included impact on security, proven reliability, ability to be manufactured in large quantities, and durability over time. Among the features evaluated were holograms, color shifting films, thread variations, color patterns, and machine-readable enhancements. The strategy of the Design Task Force is to incorporate as many features as are justifiable. The new features have proven successful in other countries as well as in test environments at BEP and the Federal eserve. The Design Task Force will continue to see and test new security features as technology further evolves. Cost - The total cost of developing the new design was approximately $765,000. Included in this cost was funding for the National Academy of Science Study -- $265,376. Another $500,000 was spent to purchase test quantities of features and carry out internal evaluations. Current notes cost 3.7 cents each, and BEP produces about nine billion notes each year. Security enhancements will increase the cost by a fraction of a cent. The Federal Reserve System is funding the development and introduction of the new currency through earnings the Federal Reserve receives from interest on its holdings of U. S. government securities and on fees charged to depository institutions for providing services such the processing and clearing of checks. NFB LEGISLATIVE AGENDA FOR 1997: The following important information was distributed at the ashington Seminar. These three points were the theme and purpose for the hundreds of Congressional visits that were made espousing these positions. You can help secure this needed legislation by making yourself familiar with each of these issues. Public policies and laws affecting blind people have a profound impact on our entire society. Most people know someone who is blind. It may be a friend, a family member, or a co-worker on the job. The blind population in the U. S. is estimated to exceed 700,000. Fifty thousand Americans become blind each year. By themselves, these numbers may not seem large, but the social and economic consequences of blindness directly touch the lives of millions. In the form of its social consequences and to some extent its economic consequences, blindness affects virtually everyone. Public policies and laws that result from misconceptions about blindness or lack of information are often more limiting than the loss of eyesight itself. This is why we have formed the National Federation of the Blind. The Federation's leaders and the vast majority of the members are blind, but membership is open to anyone who wants to join in the effort we are making to win understanding and equality in society. Our priorities for the first session of the 105th Congress reflect an urgent need for action in three specific areas of vital importance to the blind this year. (1) Congress should restore work incentive equity for blind individuals by re-enacting the identical earnings exemption threshold for blind and senior citizen beneficiaries under title II of the Social Security Act. This proposal seeks to reduce (or eliminate altogether) the work disincentive of the Social Security earnings limit as it now affects blind beneficiaries. In spite of a law passed in 1977 creating a logical and identical earnings exemption threshold for blind people and retirees, beneficiaries who are blind were singled out for exclusion from a series of seven specified annual increases in the exempt amount mandated under a new law solely for seniors. This means that a lower earnings limit for the blind--S12,000 as compared to $13,500-is now in effect. By 2002, when the exemption for seniors becomes $30,000, the lower limit created by Congress for the blind in 1996 will be less than half the amount allowed for seniors unless the law is changed. People of working age who are blind must not be forgotten now that the earnings exemption for retirees has been raised. Just as with hundreds of thousands of seniors, their positive response to the higher amounts of earnings allowed will bring additional revenues into the Social Security trust funds. The chance to work, earn, and pay taxes is a constructive and valid goal for senior citizens and blind Americans alike. This is why the statutory linkage of the exempt earnings amounts which existed under the law for almost twenty years should be restored. For more details and an explanation of the need for this legislation, see the fact sheet entitled "WINNING THE CHANCE TO EARN AND PAY TAXES: HOW THE BLIND PERSON'S EARNINGS LIMIT IN THE SOCIAL SECURITY ACT MUST BE CHANGED." (2) Congress should amend the Individuals with Disabilities Education Act (IDEA) to include provisions for strengthening programs of Braille literacy instruction. This can be done by enacting Braille literacy for blind persons provisions as part of the Individuals with Disabilities Education Act (IDEA). Goal Five of the National Education Goals declares that by the year 2000, "Every adult American will be literate .... "For blind people this means having the ability to read and write in Braille at a level of proficiency which makes performance on equal terms possible. Without legislative change, today's blind children will not be able to meet this national goal. As many as 34% of the blind students enrolled in elementary and secondary schools in the U.S. during the last school year were classified as "non-readers." Fewer than 10% read Braille. Current federal and state laws require that an appropriate educational opportunity must be provided to children with disabilities. Each such child is to have an individually planned program of instruction to meet identified needs, but growing illiteracy for blind children has been the result. Remedial federal legislation, similar to laws now enacted in 28 states, can help to reverse this trend. For more details and an explanation of the need for this legislation, see the fact sheet entitled "BRAILLE LITERACY AND THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT." (3) Congress should enact legislation this year to reauthorize the existing federal/state program of vocational rehabilitation. This program, as currently authorized under title I of the Rehabilitation Act of 1973, is now in its final year before action must be taken to continue grants to states for serving persons with disabilities, including people who are blind. During the 104th Congress, vocational rehabilitation was among the programs first included but later removed from a proposed job training, education, and employment system consolidation bill. Nonetheless, with the program's reauthorization due for consideration this year, the possibility of consolidation with other programs has been discussed and could be proposed again. Vocational rehabilitation has been recognized as a specific responsibility to be shared by the federal government and the states for 77 years. The mixture of this program (intended to address essential and complex disability-related needs) with generic job training, education, and employment programs for the general population is a fundamentally flawed concept. For someone who becomes blind in mid-career, unemployment is only one of many consequences. By comparison, however, the need for special help to deal with blindness is by far the most profound initial problem. This is why vocational rehabilitation services should continue to receive dedicated federal funding to support a targeted and identifiable service delivery system. For more details and an explanation of the need for reauthorization see the fact sheet entitled "BLINDNESS, REHABILITATION, AND THE NEED FOR SPECIALIZED PROGRAMS." People who are blind are asking for your help in securing positive action by Congress in the areas outlined here. Legislative proposals will be offered to achieve each of our specific objectives. Many priorities confront this session of Congress, and the needs of the nation's blind are among them. By acting on these priorities in partnership with the National Federation of the Blind, each member of Congress can help build better lives for the blind both today and in the years ahead. The following is the text of a letter generated by Congresswoman Barbara B. Kennelly of Connecticut. It was sent to all Members of Congress. Restore Fairness and Equity to the Blind! January 29, 1997 Dear Colleague: Since 1977, the linking of the blind to senior citizens for the purposes of the Social Security Earnings Test has assisted in helping many blind individuals become self-sufficient and more productive. This is no longer the case. Beneficiaries who are blind were singled out last year and excluded when Congress raised the earnings limit for seniors. This means that a lower earnings limit for the blind--S12,000 as compared to $13,500-for seniors is now in effect. By 2002, when the exemption for seniors becomes $30,000, the lower limit created by Congress for the blind in 1996 will be less than half the amount allowed for seniors. Blindness is often associated with adverse social and economic consequences. It is difficult for blind individuals to find sustained employment or for that matter employment at all. The blind want to work and take pride in doing so. Our action nearly twenty years ago provided a great deal of hope and incentive for blind Americans. We should not roll back the successes of the past two decades. Therefore, I plan to introduce legislation next week to re-establish the link between the blind and senior citizens for the Earnings Test which we were so wise to do in 1977. If you would like more information or would like to become an original cosponsor to my legislation, please contact Adam Rak in my office at (202)225-2265. Sincerely, BARBARA B. KENNELLY Member of Congress Things to Remember: In 1997 Membership Dues for the NFB Merchants Division are now due and payable. Dues are $10.00. Please remit to Don Morris, Treasurer, 16547 Old Emmitsburg Road, Emmitsburg, MD 21727-8927. Do it now while you think of it. Urgent!!!!! Division Spring Conference April 2-3, 1997 at Harrahs, Las Vegas, Nevada. 1-800-228-3427 - Group Code 103 NFBM. See Charlie's article elsewhere in this Messenger for specific details. DON'T DELAY. Merchants Division presents national seminar New Orleans, LA, Sunday, June 29, 1997 9:00 a.m. - 11:30 a.m. Don Bell, president, Management Management, a long time Federationist and nationally recognized public speaker and motivator will entertain, enlighten and educate. Don will raise your sights and your spirit and help you add purpose to your life. Seminar fee $20.00. See article elsewhere in this issue of the Messenger. DIVISION RAFFLE TICKETS available. Please contact Wayne Shevlin, 919-847-3470; Charles Allen, 502-875-2436; or Don Morris, 301-447-2795; to secure raffle tickets for our annual $1,000 prize awarded at the National Convention Banquet. Proceeds from raffle ticket sales go a long way in covering the costs of the Messenger Newsletter and other division expenses. Free Booth Space Available At National Convention. The space that's free and available to you is behind the Merchants Division table. The space is available for you to sell raffle tickets, Snak-Paks, and flowers. Its also a great place to meet and greet fellow Federationists and to give free soda-pop. Please contact Joe Van Lent or Charles Allen if you are willing to make time for this important project. Try it, you'll like it. Snak-Pak Items NEEDED When you pack for your trip to New Orleans don't forget to include a 24 or 48 count package of candy, gum, mints, or other such product to include in the SNAK-PAKS. Sugar free items are very popular. Contact Don Hudson, Colorado as soon as you arrive in New Orleans so your contribution to the SNAK-PAKS can be included early on. Also let Don know if you're willing to help assemble SNAK-PAKS. NAMA REPORT By Charles Allen Attending the National Automatic Merchandising Association's 50th Annual Convention and Trade Show in St. Louis last November was definitely a highlight of 1996 for me. NAMA provided Mark Russell as the speaker at the opening meeting. Hearing his political satire was worth the price of membership. Accompanied by my wife Betty, I spent hours looking at new developments in the vending industry. Crane National Vendors has come out with a fresh look in the design of vending machines. Their "Millennia Styling" line has a rounded front similar to can drink machines. Crane also has developed a machine that serves both hot and cold drinks. The "Twin Drink Center" has four versions making different combinations of fresh-brew and freeze-dried coffee with bag-in-box cold drink and conventional cold drink. All of these options can offer regular and decaffeinated coffee, tea and hot chocolate plus options for cappuccino, espresso or caffe latte. This machine can also vend four carbonated cold drinks plus sparkling water and ice water; options include iced coffee, iced tea and iced cappuccino. If that were not enough, the machine offers the option of three cup sizes. It allows the vendor to change the product to match a change in customer demand. Do you remember our conference in New Mexico when Larry Posont found the bubble gum machine of his dreams? Now you can get a combination of machines that will vend bubble gum and candy. This combination has a number of vertical rectangular units that resembles the Sears Tower in shape if not in size. A number of rounded units can be attached to these vertical units. You can call Machine-O-Matic Limited, located in Ontario, Canada, at 800/265-6772(USA) for more information. If you have customers who want to buy fruit. Royal Apples has a machine, the Nutri-Matic 602, that vends fruit - apples, oranges and pears. Its six columns hold approximately 165 servings. Customers can look through its glass front to make a selection. For more information, call 616/940-2744. A machine I truly liked is from California Fruit and Vending - Captain's Pop Hot Air Popcorn. The machine vends a folded container. In the container's side pockets are two packets, one of salt and the other of canola-butter flavoring. The customer opens the container and places it under a spout which fills it up with fresh, hot, air-popped popcorn. The machine requires very little maintenance. We need to be aware of computer-linked systems which are becoming a part of our vending business. Kaba's Telak electronic lock system is IBM compatible and would let you know every time a machine is opened. A Windows for Vending system would allow an owner or a Business Enterprise Program to track the movement of a machine from one location to another. The system can automatically calculate commissions, taxes or set aside for any payment period. Prepaid cards for vending machines and cafeterias are available as well as prepaid phone cards. This still does not make currency and coins obsolete. Do you have customers who would like to surf the Internet on their breaks? Call Net Vend America at 800/939-5374. The customer buys time on a computer pay terminal. Finally, I heard about the potential for the development of a new United States one dollar coin. In Canada, vendors may have to prepare for a two dollar coin. This NAMA convention could be described as one emphasizing combinations, computers and coins. Because You Asked If you wish to set up an account with Vendors Supply of America, call 1/800/671-0022. Charles is at ext. 1771; Linda, ext. 1786; Troy, ext. 1774. There are no local office telephone listings in the VSA flyer. These folks should be able to tell you if VSA delivers to your location. 1997 National Federation of the Blind Convention Date: Sunday, June 29 -- Saturday July 5. Place: Hyatt Regency New Orleans, 500 Poydras Plaza, New Orleans, Louisiana Hotel Reservations: For room reservations call the National Center at (410) 659-9314 or write to National Convention, National Federation of the Blind, 1800 Johnson Street, Baltimore, Maryland 21230. Reservations will be taken on a first come, first served basis, and no reservation will be valid unless it has been made through the National Office of the National Federation of the Blind. Reservations made through the hotel are not valid and will not be honored. The reason for this policy concerning reservations is that we have only 1,100 rooms in the Hyatt Regency, so after the 1,100 rooms are gone, the overflow will be placed at another hotel. In order to make the situation workable and to be certain that we get the maximum number of rooms at the Hyatt, we are handling reservations in the National Office of the Federation. Room Deposit: A $40 deposit is required when you make your room reservation. Checks, money orders (made payable to: National Federation of the Blind), and credit card numbers are accepted. The credit card account will be charged immediately. If a reservation is canceled prior to June 1, 1997, half of the deposit will be returned. After that date deposits will not be returned. Exceptions may be made in certain demonstrated emergency situations. Hotel Room Rates: One in a room, $40 per night; two in a room, $42; three in a room, $44; and four in a room, $46. There is also a tax of 11 percent plus $3 a night. There will be no charge for children under 12 in a room with parents as long as no extra bed is required. If you want to come a few days early or stay a few days late, convention rates will apply. As in years past, these room rates apply only for those who register for the NFB Convention. Convention Registration: Registration for the convention is $10 per person and takes place throughout the convention between Monday, June 30, and Saturday, July 5. We do not offer pre-registration. You must register in person at the convention. Anyone who does not register for the con- vention will be required to pay regular hotel rates. Persons who register are eligible for door prizes. Drawings for door prizes are made throughout the general sessions and the banquet. Accommodations: The elegant Hyatt Regency New Orleans is located just eight blocks from the French Quarter. It features two towers-- Poydras, with 27 floors; and Lenai, with 11 floors. The huge room on the third floor of the Poydras Tower will easily accommodate both the general sessions and the exhibit hall. In addition to a swimming pool on the seventh floor, the Hyatt also features several restaurants, cocktail lounges, and a large shopping mall. A shuttle service to and from the French Quarter will be provided to hotel guests during the National Convention. Convention Schedule: Sunday, June 29--seminars for parents of blind children, blind job seekers, and vendors and merchants; several other workshops and meetings; and special activities for children and youth. Monday, June 30--convention registration, exhibit hall open all day, first meeting of the Resolutions Committee, other committees, and some of the divisions. Tuesday, July 1--meeting of the Board of Directors (open to all), division meetings (including the annual meeting of the National Organization of Parents of Blind Children, 1:00 p.m. to 5:00 p.m.), committee meetings, continuing registration, and exhibit hall open all day. Wednesday, July 2--opening general session, evening gala, and evening IEP Workshop for Parents and Advocates. Thursday, July 3--general sessions, tours (interesting ones throughout the New Orleans area), and afternoon cane travel/orientation and mobility workshops for parents and kids. Friday, July 3--General sessions and banquet. Saturday, July 4--General sessions and adjournment. Attention All Federationists Once again the Merchants Division takes great pride in presenting a program conducted by Don Bell. Bell, of Des Moines, Iowa is president of Management Management. He is a national recognized speaker and motivator. When Don last spoke at our national convention seminar more than 200 people attended. The room was literally standing room only. Don will entertain you and at the same time energize and motivate you. His presentation will follow the theme of Personal Growth. "A Positive View for a Positive You." In this up-beat presentation, Don Bell helps people examine their attitudes. He looks at three things that affect self concept and shows how to control all three. You will learn to discover and build upon your strengths and to help associates, family and friends build upon theirs. You will learn to use two disciplines for personal growth. What we want sometimes is not what we get. The discipline of Personal Mastery lets us continually examine what we want in life, weight our wants against the reality of life, then bring the two closer into balance. Mental Models are ideas we have about the way the world works that are often assumptions rather than hard facts. We learn to identify assumptions so they don't control our lives. This worthwhile presentation will commence at 9:00 at the New Orleans Hilton. Please check the pre-convention agenda for the room location. Tickets will go on sale at 8:30 a.m. The program will begin promptly at 9:00 please come early so that all can be accommodated. Come and share with Don, you will have fun and a few laughs in the process. MONETARY MUSINGS By Charles Allen Nestle continues to use white chocolate in developing new products. Look for a white chocolate Crunch bar coming out soon. H&L Yogurt Products offers a Kosher certified Wild Rose Yogurt Nut and Fruit Bar (containing raisins, peanuts and sunflower seeds) and a Wild Rose Tropical Fruit and Nut Bar (containing peanuts, papaya, pineapple and almonds). This excellent product costs about thirty cents wholesale and comes in a 6/24 count case. For further information, call 800/330-2151. Frito-Lay, Inc., has developed an excellent line of low fat potato crisps that now dominates the market. The first low fat crisp, Baked Lay's Original, was so popular that the company had difficulty keeping up production to meet the demand. Frito-Lay has added two more flavors - Baked Lay's KC Masterpiece and, most recently, Baked Lay's Sour Cream and Onion. Frito-Lay is a company that is flexible enough to adjust its product to meet the changing demands of its customers. Look for a new line of "Peter Pan" snack crackers in April from Frito-Lay.Cracker Jack is now available in two ounce bags which are good for use in vending machines. Their two flavors, Original and Butter Toffee, are also available in a fat-free version. Cracker Jack removes the peanuts from the fat-free versions, but leaves the flavor and the prize. Are you looking for an individual size serving of dip to go with chips or raw vegetables? Portion Pak, Inc., has three flavors packed in two ounce cups: Salsa Del Sol Mild Salsa; Salsa Del Sol Jalapeno Flavor Cheese Sauce; and Taste Pleasers Gourmet Cheddar Cheese sauce. The two cheese dips can be micro waved. Sauces Unlimited of San Antonio, Texas, has Alamo Street salsa in four ounce cups as well as individual servings of Picante sauce. If you want sugar and lemon in your tea, pour in a packet of Dixie Crystals lemon-flavored Quick'n Sweet sugar with CrystaBlend sweetener. You can also get these individual sugar packets with a peach flavor or a raspberry flavor. What a convenient way for us to serve plain iced tea and allow our customers to choose the flavor. Land O Lakes has introduced Cocoa Classics premium hot cocoa mix in single service packets. Combined with chocolate are twelve excellent flavors including cinnamon, mint, raspberry, French vanilla and black cherry. The Snack Factory from Princeton, NJ, has four fat-free snacks which have excellent flavor: pretzel puffs, caramel popcorn, toffee coated pretzel nuggets and maple glazed rice puffs. You are invited to submit information about new machines or products. Do you have a favorite machine (brand, type) that works exceptionally well? Those of you in cafeterias should think about recipes that your customers particularly like. Share information! Colorado Lawsuit The following is an update regarding the current status of the lawsuit between three blind vendors, including Merchants Division Board Member, Don Hudson v. GSA and a negative arbitration decision which permits destructive competition between licensed blind vendors and foreign registered corporations. Don Hudson from the Colorado Vending Program is one of the vendors whose allocated space is less than 250 square feet required by the Randolph Sheppard Act. But that's only one of the problems. GSA has permitted a non-program cafeteria to sell items in direct competition with Don even though the items are defined as part of Don's facility. Predatory practices and pricing make competition not only unfair but destructive. Jim Chalat, Esq., the attorney representing Don Hudson and the other blind vendors, is no newcomer in the fight to secure vendors' rights. Jim Chalat is the attorney who represented Don Hudson and Richard Jack as well as blind vendors across the country when they and the NFB defeated the United States Post Office intention to split one vending facility and install two blind vendors. The NFB as always supported our cause in that important case and this one too. Mr. Chalat sent us the following regarding the current case. For immediate release: Colorado blind vendors and the Department of Justice have agreed to a temporary truce. An appeal filed by the Colorado State Licensing Agency (Business Enterprise Program) has been temporarily stayed pending settlement negotiations. The temporary truce was called after three blind vendors filed a motion to join the case which had originally been filed and tried before an arbitration panel by the Colorado Attorney General. Because their interests were central to the case, and believing they should be named parties with separate representation in court, DON HUDSON, VERNEATA ENGLAND, AND, MICHAEL LANG sought, and were granted permission to join the lawsuit. The lawsuit started when Business Enterprise Program filed a complaint with the Secretary, pursuant to the Randolph-Sheppard Act, against the General Services Administration. The complaint requested an arbitration, and alleged that Hudson, England and Lang were being, subjected to unlawful, direct competition, from private vending facilities at the Denver Federal Center. An arbitration board was convened and the arbitration was conducted over two days in February 1996. The arbitration board gave its opinion June 1, 1996, and concluded that the Act did not prohibit the private vending facility operators at the Denver Federal Center to directly compete with the blind vendors and to sell identical products as the blind applicants. Business Enterprise Program through the Attorney General, filed a petition with the United States District Court to review the order of the arbitration board. Hudson, England and Lang were permitted to intervene, and we intend to argue that the Randolph-Sheppard Act prohibits destructive competition by private vendors against licensed blind vendors. Essentially, we argue that the Randolph-Sheppard Act did not contemplate that a blind vendor would be given a priority to operate, and then be subjected to destructive competition, direct or indirect, such that the vendors inventory can be duplicated and marked down by an adjacent private vendor with potentially much greater capital, needing smaller profit margins, or short selling vendors' products in order to attract customers for other products with higher profits. The GSA will conduct a feasibility study of the cafeteria and food services at the Denver Federal Center, a large federal reservation in Lakewood, just west of Denver. Once the feasibility study is complete, we will try to settle the case within the confines of the proposed realignment and reconfiguration of cafeterias, and vendors. If we cannot settle the case, then we will go to court, and argue that the arbitrators abused their discretion in finding that Blind Vendors' priority to operate food service facilities were secondary to the GSA's contract rights to favor a foreign owned corporate food service operator. CHANGES IN TAX LAW AFFECTING HEALTH INSURANCE AND MEDICAL EXPENSES: Reprinted with the permission of Hodes, Ulmsn, Pessin & Katz, PA. Of Columbia, Maryland, 410/470-2000 from their newsletter LEGAL FOCUS. Simple Retirement Plans: Small businesses that normally employ 100 or fewer employees that do not maintain another qualified retirement plan may establish a savings incentive match plan commencing in 1997. This could be in the form of either an IRA for each eligible employee or part of a 401 (k) plan. Employees may make elective contributions up to $6,000 per year and employers must make matching contribution. An employer contribution is required every year under a SIMPLE. Employee contributions are based on a percentage of pay. The employer contribution must either be a matching contribution of 100% of the first 3% compensation contributed by the employee or a non-matching contribution equal to 2% of compensation of all employees eligible to participate in the plan who receive at least $5,000 per year in pay. All contributions are 100% vested. For taxpayers who file a joint return where one of the spouses has no compensation, the maximum deductible amount is $2,000 for each spouse if the combined compensation for both spouses is at least equal to the contributed amount. This increases the limit from $250 to $2,000 for the non-working spouses. Group health plans (including HMO Plans) will be required to expand the availability of coverage for plan years beginning after June 30, 1997. These new requirements are incorporated into the Internal Revenue Code as well as ER. ISA and the Public Health Services Act. The new rules do not apply to several types of plans such as disability income insurance, limited dental or vision benefits, long term care insurance or hospital indemnity plans and Medicare supplemental coverage under a separate policy. Limitations on permitted restrictions for pre-existing conditions are adopted. In general, pre-existing condition limitations will be restricted to newly covered employees and dependents and are limited to conditions that were treated or diagnosed in the 6 month period prior to enrollment. After the initial 12 months or (18 months for late enrollees) no new pre-existing condition limit may be imposed. Health insurers must renew coverage for groups and individuals so long as required premiums are paid. The 12 month period can also be reduced by counting certain prior coverage toward the exclusion period. Work Opportunity Credit The former targeted jobs credit has been replaced with the "work opportunity tax credit". An employer may elect this credit with respect to wages paid to individuals in seven targeted groups. This applies to wages paid between October 1, 1996 and October 1, 1997. The credit is generally equal to 35% of qualified wages. Health Insurance The percentage of health insurance that self-employed individuals may otherwise deduct against gross taxable income has been raised as fol- lows: Year % Deductible 1997 45% 1998-2002 50% 2003 50% 2004 60% 2005 70% 2006 & Beyond 80% Penalty Free Withdrawals from IRAs for Medical Expenses & Medical Insur- ance Beginning in 1997, taxpayers may receive early distributions from an IRA for medical expenses of the taxpayer, his or her spouse or dependents without paving a 10% penalty, provided that such medical expenses exceed 7.5% of the taxpayer's adjusted gross income. Early distributions from an IRA used to pay medical insurance for the taxpayer or the taxpayer's spouse can also be withdrawn without incurring the 10% penalty, but only if the taxpayer has received unemployment compensation for the preceding