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supported us on the 11th of July 2007 by providing complimentary products. Not to mention, many other partners have also supported us in this event, and the AKF Partnership Walk 2007. We thank our members for bringing awareness for the AKF self-reliance programs addressing development for poor communities in affected regions of the world. We were fortunate to help Ibn Sina Foundation a 501(C) (3) public charity origination for their health initiatives and united with them on their launch of their Montessori school for low income families. We have also joined hands with Interfaith Ministries for the Meals on Wheels program for the Houston seniors’ campaign which was a huge success. GHRA also participated in the city of Houston‘s Task Force Committee which was established by Mayor Bill White for the safety and security of convenience store business owners and personnel. Under the members benefit program, GHRA gave 200k to family members of homicide victims. With respect to global developments, we have also offered our expertise in building trade associations similar to ours elsewhere around the world. We are grateful to all of the members who have supported us on our legislative utility efforts. We will also collaborate with financial institutions like PMCU, Nizari Progressive Credit Union to help assist our members obtain business capital for start-ups and growth. Working together we can continue to tap into potential business developments for convenience stores. Once again, we would like to convey good wishes to everyone on this milestone year. Karim Dhukani President

President’s Corner

TNRCC & TCEQ Regulations By: Shama Kasimali This Breaking News segment encompasses the recent regulation passed with regard to updating gasoline dispensing equipments. Taking into view, the frequency of transfers of ownership and management of convenience store businesses, it is vital for this organization to keep our members abreast of current federal gasoline regulations. The Texas Commission on Environmental Quality (TCEQ) in accordance with the Texas Natural Resource Conservation Commission (TNRCC) has instilled control strategies, or measures to deal with pollution. Stage I and Stage II are two strategies helping Texas achieve its goals for air quality.

The content of article only express views of individual authors and not necessarily the views and opinions of GHRA and its representatives. 2

Stage I vapor recovery is a control strategy to capture gasoline vapors released when gasoline is transferred to a storage tank. Consequently, the vapors are returned to the tank truck as the storage tank is being filled with fuel, rather than released to the ambient air. Stage II is the control strategy that captures gasoline vapors when a vehicle is being fueled at the pump. In regard to the above, the vapors are returned through the pump hose to the petroleum storage tank instead of being released into the air. On some vehicles, Stage II vapor-recovery systems help capture up to 95 percent of harmful gasoline vapors that may otherwise be released to the atmosphere.

GHRA President Karim Dhukani with Texas Secretary of State Phil Wilson

IMPORTANT INFORMATION: Facilities that have Stage II vapor recovery systems which were installed before April 1, 2005 must have their equipment upgraded to an ORVR compatible system as required by Rule 115.249(c)(2). Failure to comply with this rule may result in a Notice of Violation. In addition, failure to correct the violation within 30 days will result in a Notice of Enforcement. This type of violation could include penalties up to $10,000 per day. In connection to new ownership, there are a few things to be aware of while buying a facility with petroleum storage tanks. First, potential liability comes with owning a petroleum storage tank, even if the tank is never used. Second, any delinquent fees and previously imposed penalties will affect processing applications. Finally, as a precautionary measure, potential buyers must ask questions, look up pertinent information, and consult with experts before completing a gasoline store sale in order to be covered in case of any issues arising later on in the process.

Information found on Texas Commission on Environmental Quality Online http://www.tceq.state.tx.us/implementation/air/vaporrecovery/vapor_recovery.html

Building Bridges

Meeting with Texas Secretary of State Phil Wilson

By: Karim Dhukani Austin, Texas – Texas Secretary of State Phil Wilson, appointed by Governor Rick Perry and officially sworn into office July 1, 2007, recently hosted GHRA representatives in his Texas Capitol office. Among many duties, the Secretary of State provides a repository for official and commercial records, administers state elections, publishes government rules and regulations, and serves as the Governor’s chief economic development leader. Previously, Secretary Wilson served as Governor Perry’s Deputy Chief of Staff. Additionally, Secretary Wilson served as the Governor’s official designee on the $200 million Emerging Technology Fund and the $185 million Texas Enterprise Fund. Under Wilson’s leadership, Texas leveraged more than $10 billion in capital investment to create more than 45,000 new jobs. GHRA President Karim Dhukani and GHRA government affairs liaison Steve Koebele discussed the Texas business climate and Secretary Wilson’s economic development vision. The main focus of the discussion centered on challenges and opportunities facing the convenience store industry. Dhukani and Koebele described a key strategic initiative of the GHRA: integrating annual permit and license renewal due dates during one calendar month. Also, GHRA provided comments on brand new Texas Online™ “Consolidated Business Application” for individuals seeking new permits required to operate convenience stores. Secretary Wilson solicited additional input from GHRA for further improvements to Texas Online™ and the business application process. Upon invitation by Mr. Dhukani, Secretary Wilson said that he would be honored to visit Houston and visit the GHRA membership.

Meeting with Bryan Mayor and Bryan Chief of Police. By: Karim Dhukani Bryan- College Station, Texas- September 2, 2007 An executive level meeting took place between the Mayor of Bryan- College Station and the Police Chief of Bryan concerning the safety of the GHRA stores in the Bryan- College Station area. This meeting was also attended by Government Affair Chairman Hassan Momin and a few members from the Bryan area. The guests were given an overview of the Association’s mandate and its goals and achievements. GHRA’s involvement in the Houston Task Force committee was discussed. Houston Task Force committee helps to prevent crime in the convenience store sector in the city of Houston. It remained evident that each of the GHRA store member wanted to be of assistance to the community and to the other retailers in general by offering their store premises to police officers as a satellite station. GHRA is also working with Crime Stoppers to stop criminal activities in the community. GHRA’s number one concern is the safety of its member stores

http://www.tceq.state.tx.us/implementation/air/vaporrecovery/vapor_recovery.html




GHRA and Bryan-College Station Representatives with Mayor of Bryan- College Station and the Police Chief of Bryan

GHRA Directors with President and CEO of Silver Eagle Distributors John Nau.

and their respective customers. In order to do that the association arranges special classes at the office facility to educate the members about the safety. Police chief Mr. Tryon thanked GHRA and its members for coming forward and showing interest towards the safety of the business owners. We are hoping that in the future we will have similar discussions with the Mayor and the Police Chief to endorse our commitment towards the cause.

Meeting with the President and CEO of Silver Eagle Distributors Mr. John Nau.

By: Karim Dhukani Sept 15, 2007- A simple introduction of GHRA was presented to the President and CEO of Silver Eagle Distributors. He was quite pleased to hear that GHRA was continuously working with TABC’s executives to improve the members’ educational programs. The same members can train their employees on TABC rules and regulations and give updates from time to time to uphold the law concerning illegal selling to minors. GHRA is working closely with Silver Eagle Distributors on a beer category management program for all our member stores, so they can improve their sales depending on different customer base shopping at the store level. Mr. John Nau admired the association’s work-in progress. He gave his full support towards our future programs in educating our members, in promoting

different selling ideas, and in distinct scholarship programs for our members. Silver Eagle has also decided to work with the Aga Khan Foundation (AKF).

Cadbury Schweppes Strengthens Ties for the Future By: Karim Dhukani May 2, 2007- In Plano, Texas, Cadbury Schweppes group hosted a meeting with the GHRA Board of Directors on “Strengthening Stronger Ties for the Future Growth of GHRA and its Members”. Present at the meeting from the Cadbury Schweppes group were Mr. Terry Graham, South East Division; Mr. Grove, Marketing and Sales Executive; Mr. John Mircheff, Dallas Region Representative; Mr. Rob Colarossi, Customer Marketing Executive; Mr. Brian Castillo, Occasion Based Marketing Executive; Mr. Nevin Grinnell, Innovation Executive; Ms.Jana Taylor, Category Management Executive; and Mr. Grove Brame, Region VP of Houston. From our own local team we had Mr. James Collins, VP of Business Development and Kirk Hollis, Key Account Manager. A brief overview of GHRA as a trade association was given and a detailed explanation of GHRA’s community involvement, educational programs, safety and security programs were mentioned. From 2002 to the present day, sales have increased significantly. Our member’s active participation in all promotional programs has helped us reach this level of success. This corporate level meeting turned out to be both informative and beneficial for our members in terms of their growth efforts. Mr. Grove from Cadbury gave a brief overview of the company’s infrastructure and overall portfolio management. He simultaneously recognized that GHRA will actively develop innovative ideas for the association’s future prospects.


Cadbury Schweppes representatives and GHRA Board of Directors Mr. Rob Colarossi from the marketing team provided a shopper’s insight. In this regard, he offered a few tips in promoting the products by explaining what a consumer is looking for when they approach a convenience store. He gave suggestions on how we can improve the sales of our stores. Cadbury Schweppes also hosted a dinner for the GHRA Board of Directors at which the President and CEO of Cadbury stopped by to greet us and thanked the GHRA and its members for the sales growth achieved by the GHRA members. Furthermore, he gave his commitment toward developing more programs for the future growth of sales. The association is working to bring more initiatives to improve our sales and make stronger ties with companies at the corporate level, which will foster better relationships. This can only be possible if we work together.

Texas Trade Associations meeting with TCEQ Officials By: Karim Dhukani Mr. Glenn Shankle, the executive director of the Texas Commission on Environmental Quality Commission (TCEQ), and select members of his staff recently welcomed representatives of the four Texas Trade Associations at the

TCEQ headquarters. The TCEQ is the main environmental regulatory agency in Texas. The TCEQ has approximately 3,000 employees, 17 regional offices, and has a $480.7 million operating budget for the 2007 fiscal year.

Mr. Shankle is responsible for managing the daily operations of the TCEQ. His major responsibilities include implementing TCEQ policies, making recommendations to the TCEQ commissioners on contested permitting and enforcement matters, and approving uncontested permit applications and registrations.

The representatives of the four Texas Trade Associations discussed matters related to gasoline pumps, petroleum storage tanks, and TCEQ enforcement initiatives. The Trade Associations expressed the desire to maintaining the highest levels of compliance in partnership with TCEQ. As an example of that working partnership, TCEQ staff will be incorporated as an important element of compliance training on behalf of members located in cities and towns throughout Texas.

TABC “MINOR STINGS” By: Jim L. DeFoyd, Attorney at Law A “Minor Sting” occurs when an agent with the TABC or other law enforcement officers use a minor for the purpose of entrapping Clerks, Waitresses, Bar Tenders or others who may sell or deliver

an alcoholic beverage to a person under the age of 21 years. Most of such “Minor Stings” are conducted at Convenience Stores. However, Restaurants, Liquor Stores and Night Clubs are also often subjects of these operations. How do the “Minor Stings” normally work? Usually, the TABC agent is working with a team of at least two or three agents and one minor. One of the agents will enter the store alone and begin to shop. He is followed by a minor who goes to the beer box, usually to buy one or more beers along with some additional items such as chips. The favorite time is when the Clerk is very busy and has a lot of customers trying to check out. The minor will attempt to buy the beer and will try to “fool” the Clerk. If the Clerk asks for an ID the minor will usually show one which is almost always under the age of 21 years in hopes that the Clerk will be so busy that he will not closely examine the ID which may or may not be a “fake” ID. If the Clerk sells the beer to the minor he will take the receipt and exit the store. The agent

side the store is observing and often is video-taping the incident. He also will leave the store after the minor. Later, some times as long as one hour or more, an agent will enter the store to either arrest the Clerk or give the Clerk a citation for the offense of Sale to a Minor.

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What happens next? The agent will obtain the name, address, phone number, social security number, Texas driver’s license number, and other information from the Clerk. He will ask if the Clerk has attended the TABC Seller/Server Training School. The Clerk may be arrested immediately and the store turned over to another employee or the owner is called to come to the store. More often, the Clerk is given two citations, depending on whether or not the Clerk has been to the TABC School. One citation is a criminal case against the Clerk. The agent will tell the Clerk that a warrant will be issued for his arrest through the Sheriff’s office of the county where the store is located. It may be two or three weeks before the warrant is actually issued and given to the Sheriff’s office to execute. The Clerk must go to the Sheriff’s office and post a bond. However, he may be arrested without even knowing when the warrant is

issued. Thus, the Clerk should immediately contact an attorney who is experienced in handling these types of criminal cases. This criminal case is a Class A Misdemeanor filed under Section 106.03 of the Texas Alcoholic Beverage Code. The Texas Penal Code under Section 12.21 provides that a person guilty of this offense may be confined in the county jail up to One (1) year in jail and/or a Fine up to $4,000.00. What about the second citation? The second citation usually given to the Clerk is an Administrative Case filed against the owner or person who holds the license or permit to sell alcoholic beverages. If the Clerk is Seller/Server Certified, the case is “restrained”. This means that if all of the employees of the store are certified then the TABC will not pursue the administrative case against the permittee or store owner. However, if the Clerk is not certified then the agent will prepare a case against the permittee or store owner. This administrative case has nothing to do with the criminal case and the outcome of the criminal case may not be material to the administrative case. The administrative case can result in the suspension of the permit or imposition of a civil penalty assessed by the TABC. The permittee or store owner should immediately contact an attorney who is experienced in handling matters before the TABC and State Offices of Administrative Hearings (S.O.A.H.), to represent him in this matter. Normally, for the first offense the suspension may result in a suspension of the permit for a period of seven (7) or more days or the payment of a civil penalty in lieu of the suspension of $150.00 dollars for each day of the suspension. It is very important that the permittee understand that the TABC is not bound by any schedule and has the authority to cancel the permit for even one offense if it is deemed to be a serious violation. This is why it is best to obtain legal assistance in handling these matters with the TABC.


Directors from Texas Trade Associations with TABC officials in Beaumont Meeting.

What can we do to reduce the chances of being caught up in a “Minor Sting”? The first thing is to make sure that every employee attends the TABC Seller/Server Certification Class and receives his two (2) year certification. The Clerk must be instructed to carefully examine every ID to make sure that the person is over 21 years of age and that the description on the ID matches the

person who has presented it to him. If the description on the ID does not match the general physical appearance of the person, he should not sell the alcoholic beverage. Under no circumstances should the Clerk accept out of state identification as proof of age without at least two additional forms of matching identification. I always advise the Clerk to ask for the ID of every one he believes to be under 35 years of age. This will help train the Clerk to be aware of the age limit and will always be a compliment to the person who is asked if he or she is over 21 years old. Remember, the certification of the Clerk must be renewed every two (2) years to remain valid. What happens if the Clerk is certified but mistakenly sells to a minor anyway? The Clerk is still going to be cited and arrested for the criminal offense of Sale to a Minor. For the first time this happens the Clerk must be re-certified within a certain number of days to maintain his Certification. There are more serious re-certification penalties for subsequent offenses. It is incumbent upon the permittee or store owner to make sure the Clerk is re-certified. The TABC will revoke store’s status and further cases will not be “restrained” regardless if the other employees are certified unless the action is taken immediately. It is the intent of this article to make the permittees and Clerks aware of the practical side of “Minor Stings”, but further discussion and instructions should be given by good professional help.

Moving Our Relationship with the Texas Alcoholic Beverage Commission Forward

By: Karim Dhukani June 7, 2007- Beaumont, Texas We had our second quarterly meeting with the Texas Alcoholic Beverage Commission. We truly appreciate Mr. Alan Steen for his commitment towards our trade association and for meeting with us on a quarterly basis and discussing ongoing issues while offering suggestions on TABC matters. Present at the meeting from the TABC family were Mr. Alan Steen, the Administrator of TABC; Mr. Rick Cruz, Captain of TABC; Mr. Richard Willis, Compliance TABC; Ms. Lakysha, Captain of TABC Beaumont; and Ms. Deborah Jones, Lieutenant of TABC Beaumont. The trade associations were represented by Mr. Karim Dhukani, President of GHRA; Mr. Nasruddin Kassam, Vice President of GHRA; Mr. Hassan Momin, Secretary of GHRA; Mr. Aziz Maredia, Director of GHRA; Mr. Noorddin Kara, Vice President of STMA; and Mr. Aziz Khoja, Office Manager of GAMA. Discussions were centered on issues of inspection of TABC officers, record keeping, and easing the application correction record process.

We discussed the guidelines by which the TABC officers inspect stores. It was decided that these guidelines will be included in the manager awareness program. Mr. Alan Steen approved and gave us the assurance that they will discuss the matter further. Captain Cruz and Mr. Willis acknowledged and admired the efforts of the trade association towards educating their members to comply with the TABC policies and procedures. At the end of the meeting, plaques were presented to Mr. Alan Steen and all of the TABC officers for their outstanding performance to public safety.


Legal Matters

To Incorporate or Not to Incorporate? That is the question.

By: Shenila Momin In this day and age everyone incorporates, right? You would think that it makes smart business sense to incorporate. However, I still see the common gas station owner or real estate owner that form sole proprietorships under their own name and go about their business. Unfortunately for them, this is a disaster waiting to happen. When we start our business or investment, we ask our selves, “Why do I want to invest?” We want to invest so we can have a return on our investment, i.e. make MONEY. That is it. However, we need to go further and understand that if we want to make MONEY we want keep the MONEY. Right? Along with maximizing profit we also should look to minimizing risk. And in order for us to do so, we need to keep the business or property at “arms-length” from our personal assets i.e. our personal bank accounts or other business investments we have. How do we do this? Well, the first thing is to incorporate our investments so as to create a separate entity from ourselves because we want to limit our personal liability. For example, say that you own a gas station and someone walks in and slips in your store and sustains head injuries. Now that person will more likely sue you and the business. If the store is owned by a

Corporation or Limited Liability Company, then the individual can only sue your business and not you. So you are protected from “personal liability”. If, on the other hand, you don’t have a Corporation or Limited Liability Company and all you have is an Assumed Name Certificate from the County, then you can be held personally liable. This means that if you own other businesses or shares in other properties or you have money in the bank then it can ALL be subject to the lawsuit. The moral of the story is that if you want to protect you assets for yourself and your posterity, then you should look at creating a limited liability entity. How does one go about choosing the right limited liability entity? There are several types of limited liability entities such as Corporations, Limited Liability Companies, Limited Partnerships, Limited Liability Partnerships, etc. You have to first understand what type of business you have and your goals for this business. Do you want to add more businesses to this entity, do you want to purchase real estate, or do you want to make this business a publicly traded company? For example, if you just want a simple company to own and operate a gasoline station, then you can choose a corporation or limited liability company. When setting up a Corporation or Limited Liability Company, there are some formalities involved in setting up and maintaining a limited liability entity. In order to ensure a fully functional corporation or limited liability company, you must keep separate accounts for both your business assets and personal assets. If you commingle funds you could be subject to personal liability by “piercing the corporate veil.” This means that someone can get to your personal assets by arguing that the corporation is not a true corporation and that the Company is not acting like a separate entity but as your “alter ego”. In addition to limiting your liability, Corporations, Limited Liability Companies and other similar entities can be effective tax planning tools. So if you choose to incorporate, then you have a regular C-Corporation. The corporation limits liability to its owners called “shareholders”. The C-

Corporation is the most widely utilized corporate entity. The C-Corporation is subject to double taxation, one on the Company’s income and the second on the distribution of profits the company makes to its shareholders. You can elect to reduce you taxation liability by choosing to treat your corporation as a Subchapter S Corporation. The difference between the two is how they are treated for taxation purposes. The S-Corporation is a “flow through entity” which means that it is taxed one time on the shareholder’s income distribution. One of the main problems with an S-Corporation is that the shareholders must be legal resident to elect this type of tax treatment and there is a limit on the number of shareholders. The other option is a Limited Liability Company which is very popular in Texas. Similar to the S-Corporation, this type of entity is treated as a Partnership and taxed only once: at the time of the member’s (i.e. owners) profit distribution. A member of a limited liability company is not liable for the debts, obligations, or liabilities of a limited liability company, including any liability under a judgment decree or court order, except to the extent that company regulations or company agreement specifically provide otherwise. There is also no requirement that the owners of the Limited Liability Company be U.S. legal residents. Also, there is no minimum on the number of owners in a Limited Liability Company. In the end whatever entity you choose, it is important to keep your business assets separate from your own personal funds so that your personal funds are not jeopardized if your business has any shortcoming and the business debts and obligations stay business debts and obligations. Regardless of which avenue you choose, you should first seek the advice of a qualified corporate and tax attorney. This article is provided for only information purposes and should not be viewed as legal advice.

MEMBERS CORNER"What’s on your mind?”

ASK GHRA Board of Directors. We will publish answers to all members’

questions here in this SECTION.

Members Corner By: Shama Kasimali Q: I just bought a new convenience store. It was old and run-down. In fact, just a month before I got all my paperwork in order to buy the store, the current owner sold all the merchandise to a nearby store and closed the doors. This caused the store to lose whatever walk-in customers it had in the first place. I have now restocked the store and it has been up and running for the past three months, but I can not seem to get the sale to come up. Can someone please advise and maybe help me to devise a plan to pull in more customers, and eventually higher sales. I have already spent a lot of money on renovating the store, so I would like to keep costs down. Thanks for any help you can give.


Members of GHRA at GHRA Town Hall meeting

A: The good news is, renovating your store was a smart first step, so you are already on your way! The bad news is, sometimes you just need to be patient and wait and see. If customer service was an issue with the previous management, the best place to start would be hiring cheery and helpful employees. They are the first contact point once a customer enters the store. In order to show change on the exterior of your store, you may also consider the addition of a sign showing that the store is “Under New Management.” The customers that may have been turned off by service offered in the past may just give the benefit of the doubt and give the store another chance. Once you can get the customer near the store, offering a special on an item that is a basic need for many customers will surely drive more customers into your doors. One store owner that invested in a gourmet coffee machine offered a daily morning special of “A Free 12 oz. Cup of Coffee for Each Customer that Entered the Store, No Purchase Necessary” and affixed the sign very visibly on the exterior of the store to drive customers in. This will help get customers into the store to show them that you now have product to sell. The strategy worked, and not long after, customers were not only trying more cups of regular coffee, but were also buying the other types of gourmet coffees offered in the store, along with raising the overall morning sales to never-

before-seen levels for the store. The customers’ trust in the store was restored. Such minor alterations can definitely help your situation without spending a lot out-of-pocket and the customer will acknowledge the change. Q: I have been thinking for some time to add a deli to my convenience store. I have enough space to place the deli wherever I would like. What would be the best location in my store for a deli? A: The location of your foodservice program will determine its success or failure, so do not take the decision lightly. If you locate it at some remote position in relation to the main entrance, your customers will never have full exposure to it and sales will suffer. If positioned near the entrance or check point, the customers will have a more impulsive exposure. The other alternative is to change the traffic flow of the facility, so the customers are routed to a different part of the store where the food program is located. By doing this, you are increasing the impulse zone so it has a positive effect on sales. Information found in Convenience Store News for the Single Store Owner.

Education By: Shama Kasimali Looking for a way to increase your overall sales? Look no further… The one impulse category most Americans find hard to resist in retail stores is the candy aisle. Chocolate or non-chocolate, bars or bites, gum or mints, the candy category is in continuous growth mode across all retail channels.

In 2005, convenience stores in the US brought in sales of $15.7 billion in the chocolate segment alone, a 2 percent increase over the previous year, according to Convenience Store News’ 2006 Industry Report. Non-chocolate saw $8.9 billion in sales, with a 1 percent increase, and the gum category made $3.5 million, with a 4.1 percent increase. One of the biggest contributors to category growth continues to be the constant flow of new products, new flavors and new packaging. Some store owners have increased their in-store sales by constantly revamping the candy and gum category, making it one of the biggest sellers. Location is key when looking into the choice of giving your candy aisle a face-lift. Tracking candy sales also aids in judging what is moving and how fast. This also helps in replenishment. Possessing a store that is in a favorable location, such as near subdivisions, new construction, or an industrial park is certainly a location to consider adjusting. In these examples, business can come from construction and factory workers, people on their office breaks, and even people on their way home from work. Fast access is vital, especially in an impulse category like candy. New products are such a large percentage of growth and that is why manufacturers put resources behind each launch to make sure it is successful, like advertising, coupons in the newspaper and in-store promotional material. The first 12 weeks are critical and that is why speed-to-shelf

is so important. If the first time a retailer becomes aware of a new product is through an advertisement, it means someone in the market already has the product on their shelves, and our retailer is missing the key sales period for the item. Candy drives so much of its growth from new products during the trial period. Some of them stick, most of them do not, but it is during the evaluation process that you can see a bump in sales. While new products bring life to the category and put additional dollars in a retailer’s pocket, it is often the mainstay items that top the list in terms of sales. From a movement standpoint, the top sellers are still Snickers, Hershey’s and M&Ms. As for margins, most single-store operators and large chain stores both report a healthy percentage in the candy and gum category, ranging from 30 to 40 percent, and in some cases a little higher. But despite the good margins and category leaders, new products continue to create interest and ring up sales in the candy and gum category. They are a challenge to manage, but it is where the dollars start to add up. Information found in Convenience Store News for the Single Store Owner


Compliance By: Aspi Mody Dear Friends, we would like to take this opportunity to brief you all that it is mandatory for all members to participate and subscribe to the following services:

• Coca-Cola Enterprises Inc • The Pepsi Bottling Group • Cadbury Schweppes Bottling

Group (Dr. Pepper) • Frito-Lay • Oak Farms Dairy / Schepps • Better Beverage Bottling

Company ( in areas where applicable)

Also please be aware that the following will be a contract violation and may trigger compliance citation with our contracted vendors:

1. Taking down the cling signs after the salesman leaves the store,

2. Missing POS or Window signs, 3. Missing monthly spanner inserts

after the 4th day of any month (for Premium Members),

4. Not participating in the monthly promotion,

5. Not stocking all products, 6. Incorrect number of Shelves per

contract, 7. Competitive product in the

vendors equipment or cold vault space,

8. Outsourcing or buying from outside,

9. Coolers not set as per GHRA approved Planogram

10. Frito-Lay missing any of their 6 or 7 mandated locations in the store

11. Failing to timely report delivery and/or orders not executed by the vendors,

12. Failing to cancel GHRA membership after the business is sold.

We urge our members to keep their store associates informed about the GHRA Partner vendor compliance policies. In addition, please let store associates know that they should feel free to call us for any compliance related questions or concerns when the member is not in the store. Our Premium members: please remember it is the store’s responsibility to call and inform GHRA if you do not receive the monthly promotion spanner insert by the 4th day of any month. Also please note that at the end of the month the spanner inserts must be removed even though you have not received the new spanner inserts. To avoid compliance reports for breach of terms by the vendors or if you have any other issues or concerns please feel free to call me at GHRA 281-295-5300 extension 4. If you get the voice-mail please leave: (a) A brief message about the nature of your call and make sure to leave your (b) Name, (c) GHRA ID #, (d) Your contact phone number and we will promptly return back your call in the order it was received.

By: Danny Waxler In early April of this year (2007) an incident occurred involving a manager of a convenience store here in Houston. The manager was instructed by the owner of his store to go and visit a customer’s home regarding a bounced check. The manager complied and went to the address given on this customer’s Texas Driver’s License. Upon his arrival, the manager approached the residence and knocked on the front door. The issuer of the bounced check came to the door and shortly thereafter, the conversation became heated between the man and the manager of the store. Though there were no witnesses to this conversation, the man became upset and punched the store manager knocking him to the ground. The man returned inside his home and called the police. A short time later, an officer arrived at the residence and apprehended the store manager. The issuer of the bad check stated to the officer that the convenience store manager showed up at his home and began threatening him. He also stated that he had attempted to close his front door and the store manager had kicked the door to prevent it from closing. The store manager was charged with assault and needed 6 stitches to sew his lip back up. The issuer of the check committed a theft against the store by issuing the bad check, assaulted the store manager and remained unhurt and had the store manager arrested. It was his word against the manager’s word and the officer obviously believed the man who had written the bad check over the store manager, who apparently risked his life making the mistake of confronting the thief. The amount of the check: $800.00. Texas Penal Code Chapter 22.01 ASSAULT

i. A person commits an offense if the person:

1. intentionally, knowingly, or recklessly causes bodily injury to another, including the person's spouse;

2. intentionally or knowingly threatens another with


imminent bodily injury, including the person's spouse; or

He noticed several vehicles in the driveway and saw someone looking out a front window. He knocked on the front door for several minutes getting no response. The clerk then began yelling to the people inside the home, still getting no response. While still beating on the front door, two Harris County Sheriff Deputies arrived at the home and ordered the clerk to leave the porch and walk to the street where they were standing. The clerk met the officers in the street, was briefly questioned, then handcuffed and arrested for Criminal Trespassing.

3. Intentionally or knowingly causes physical contact with another when the person knows or should reasonably believe that the other will regard the contact as offensive or provocative.

In two separate cases, clerks from different convenience stores in the Greater Houston area were also directed to recover money lost from worthless checks. Both of these incidents occurred in June of 2007. In the first incident, the store clerk arrived at the residence given on the check that was returned. He exited his vehicle and approached the residence. He then knocked on the front door and was greeted by a female that stated that person the clerk was looking for was a former resident of the home and that she had recently moved in. The clerk did not believe her and told her he would wait until the man he was looking for showed up. She insisted that the man did not live at the residence. The clerk did not believe her and informed her he would wait for the man to arrive. The female asked the clerk to leave her property and the clerk did not. The woman called the police department and explained the circumstances. Shortly thereafter, a police officer arrived and both parties explained the situation. The clerk was told to leave the premises and failed to comply with the officer’s demand. He was arrested and charged with Criminal Trespassing. The man that the clerk was looking for had moved out of the house more than 2 years ago. The amount of the check? $1120.00. In the second incident, a clerk from a different store was directed by the store owner to go and speak with the owner of a roofing business that had bounced several checks at his store. The clerk went to the business address listed on the company check and found that the business address was really a residence. The clerk ignored the “Private Property” and “No Trespassing” signs affixed to the chain link fence that enclosed the property.

This particular clerk has lived in the United States for 9 years and has 2 children that were born in Houston, making them U.S. citizens. The clerk has not yet obtained his citizenship and a criminal conviction will make this process extremely difficult. Amount of the checks? $3400.00. Texas Penal Code Chapter 30.05 CRIMINAL TRESPASS 1. A person commits an offense if he

enters or remains on or in property, including an aircraft or other vehicle, of another without effective consent or he enters or remains in a building of another without effective consent and he: a. Had notice that the entry was

forbidden; or b. Received notice to depart but

failed to do so.

2. For purposes of this section:

More than 100 robberies occur EVERY DAY at convenience stores across America and more than 31,000 clerks are shot each year. Are these employees not exposed to enough occupational risks by just doing their jobs at the store? For a store clerk that is only making 8 or 9 dollars an hour, is the risk involved with collecting a bounced check really worth it? If he does not understand the laws that govern the collection process and has no knowledge of the person’s criminal record before he shows up at their house, there is a great potential for disaster. For those owners, managers and clerks that continue to go after people for bounced checks, we highly advise all to become familiar with all of the laws relative to the collection process and to do everything possible to avoid showing up at someone’s home or business making any demands or threats.

a. "Entry" means the intrusion of the entire body.

b. "Notice" means: i. Oral or written

communication by the owner or someone with apparent authority to act for the owner;

ii. Fencing or other enclosure obviously designed to exclude intruders or to contain livestock;

iii. A sign or signs posted on the property or at the entrance to the building, reasonably likely to come to the attention of intruders, indicating that entry is forbidden.

There are countless other incidents that have occurred involving employees of convenience and check cashing stores.

Many of these employees that have been involved in similar situations are oftentimes too embarrassed to discuss the events. We have store owners, managers and clerks that have been physically attacked by other people, bitten by dogs, had guns pulled on them, rocks thrown at their cars and countless threats made against the individual and/or the store itself, just because they were trying to collect lost money from bad checks. We have worked thousands of cases involving “hot” checks and spoken with many guilty parties. Many of these people responsible for cashing or writing worthless checks are very dangerous individuals. Most are just experiencing financial hardship and pose little threat. However, there are those that are heavy drug users, some that are already on probation or parole for other crimes and some that are part of organized street gangs with no fear of the laws that govern this country.

Recordkeeping for Business

By: Ameen Ali, CPA Tax records should be kept year-round, not hastily assembled just for your annual tax appointment. But which records are important, and how and why do you keep


them? Without tax records, you can lose valuable deductions by forgetting to list expenses on your return or having unsubstantiated items disallowed if you’re audited. Generally, returns can be audited up to three years after filing. However, if income is underreported by more than 25% the Internal Revenue Service can collect underpaid taxes up to six years later. In other words, you need good records to verify what you report on your tax returns. How should you keep your tax records? Any way that is convenient for you that will allow you to give complete information on each item: how much? what for? when? where? why? The tax law requires all businesses to keep records to support the gross income, deductions, and credit claimed on their income tax returns. What records? All businesses should have a permanent set of books which summarize individual deposits, disbursements, and items of adjustment. These records should be retained indefinitely. Permanent records also include those needed to prove the basis (cost) of depreciable assets. What happens if your records are inadequate? If you fail to retain adequate records to support the items claimed on your returns, the IRS has the authority to reconstruct your income using one of several methods, including estimated increase net worth, looking at the bank records, or estimating the raw materials used in manufacture. Whatever method the IRS uses, you have the burden of proof if you dispute their estimate. Without adequate records, proving the IRS estimates wrong is difficult, at best. You could end up with an assessment for additional taxes, plus penalties and interest. Supporting documents may be needed to validate the journal entries if your returns are examined by the IRS. The general rule is that supporting documents should be retained at least until the statute of limitation for a tax year has passed. The supporting documents the IRS reviews include bank statements, cancelled or substitute checks, payroll records, invoices, and the like. You should also

retain documents supporting deposits which do not reflect income, such as loan documents. How long should records be kept? Just how long should you keep records is partly a matter of judgment and a combination of state and federal statutes of limitations. Federal returns can be audited for up to three years after filing (six years if underreported income is involved), so all records substantiating tax deductions should be kept at least that long. Here are recommended Retention Periods for various records: 7 Years

Expense Records Paid Invoices Bank Deposit Slips Bank Statements Tax Returns (generally) Employment Tax Returns Inventory Records Cancelled/Substitute Checks

Permanent Financial Statements Contracts Corporate Stock Records Minutes of Meetings Employees Records Depreciation Schedules Real Estate Records Journal and General Ledger Investment Records

Requirements for computer-maintained records are generally the same as for manually kept records.

GHRA Supports Partnership Walk 2007 By: Saleena Meghani Over 10,000 participated in the Houston Partnership Walk at Sam Houston Park in Downtown Houston on Saturday November 10th 2007, an event held annually in five major cities across the U.S. to help alleviate global poverty. A total of 67 teams comprised of businesses, community groups, schools and universities participated, raised funds and demonstrated their support for ending global poverty including teams

Continue on the next page (page 11)…..

TABC Corner SELLER SERVER TRAINING CERTIFICATE By: Richard Wills, TABC Welcome back to the TABC Corner! Many questions have been asked about what is Seller/Server Training? It is a certification course for employees (including immediate managers) who sell/serve alcoholic beverages. Sellers and servers learn how to serve alcoholic beverages responsibly and they are taught how to avoid selling alcoholic beverages to minors, intoxicated persons and to non-members of a private club. Once your employees become TABC certified through a TABC certified course provider, they will have the background, skills, and awareness to serve alcoholic beverages responsibly. Now you ask, what is in it for me? You could get a restrained administrative case also known as “Safe Harbor”! This simply means if all of your employees (sellers/servers and their immediate managers) are TABC seller/server certified, your alcoholic beverage license might be protected from a fine, suspension or revocation. Other benefits may include: A defense in civil lawsuits Lowering liability insurance cost More knowledgeable and

responsible employees Being a more responsible member

of your community How can I get my employees certified? Contact one of the TABC certified course providers in your area. A list is provided on the TABC website (www.tabc.state.tx.us) There are a number of ways in which your employees can be certified. These include classroom training, video courses, Internet courses, and computer-based courses. TABC certified course providers are privately owned and trainers are not employees of TABC. An employees’ certification is good for two years. If there are any further questions please contact your local TABC office.

http://www.tabc.state.tx.us/

Partnership Walk 2007 Continue… from Greater Houston Retailers Cooperative Association (GHRA), Met Life, Kinkaid High School, Prime Communications and Susser Petroleum. In addition to forming teams and contributing towards Partnership Walk 2007, GHRA played a key role in getting donations and support for this great cause from their approved vendors such as Coca Cola Enterprise Bottling Company, Huntsville Wholesale, Oak Farms and PepsiCo. They also promoted the Partnership Walk by distributing posters to their members to spread the word about the walk. On behalf of the Aga Khan Foundation U.S.A. and the Houston Partnership Walk team we extend our most sincere gratitude to the GHRA Board of Directors and its membership for their continued valuable support. Nationwide, over 27,500 participated as Partnership Walk was also held in Atlanta, Chicago, Dallas, and Los Angeles. Partnership Walk is an initiative of Aga Khan Foundation U.S.A. (AKF USA) and organized by a network of volunteers in communities across the U.S. 100% of funds raised at Partnership Walk go directly to the projects supported by the Foundation. The cost of organizing the Walk is completely underwritten by AKF USA and in-kind contributors. No contributions are used for administrative costs. Over the past 12 years over 239,000 have participated in Partnership Walk across the U.S. raising over $28 million.


An opening ceremony featured distinguished guests along with entertainment celebrating the diversity of world cultures. Addressing the crowds, keynote speaker Secretary of State Phil Wilson remarked, “The achievements of AKF USA demonstrate that overcoming the extremely challenging problems of poverty is, indeed, possible. In fact, it is inspirational.” Long time supporter Congresswoman Sheila Jackson Lee congratulated the crowd, stating “To all of you who have come to Partnership Walk today, you have a large role to play in helping the world be peaceful, loving, prosperous, and dedicated to the values of this great Foundation.” Congressman

Al Green acknowledged the walkers and volunteers, stating “All of you are making a significant contribution; this is a worthy cause, whenever we can do something to help people help themselves we are doing the right thing”. Mayor David Wallace stated “I am so proud to be here today…I have had so many wonderful experiences and at the top of that list is the Aga Khan Foundation. Its about providing hope to people that don’t have anything to eat, that don’t have money and have poverty; it is one of the greatest organizations that I have had the opportunity of spending time with in recent years. The theme for Partnership Walk 2007 was Innovative Solutions to Create Hope and Opportunity. Aga Khan Foundation U.S.A. celebrated its 25th anniversary beginning in October 2006. This year’s theme captured the depth, scope and impact of a quarter century of achievements. In every undertaking, the overriding goal of the Foundation’s work is to assist in the struggle against poverty, hunger, disease and illiteracy through the discovery and implementation of innovative solutions to development.

Ibn-Sina Foundation By: Dr. Aijaz Ali Khowaja Ibn Sina’s healthcare vision is to increase life expectancy, improve quality of life, and enhance chances of survival for immigrant and underprivileged communities. Ibn Sina has achieved this vision through building strong, strategic public and private sector partnerships, and by leveraging voluntary and professional resources from within the local communities. Ibn Sina impacts the community by providing high quality, affordable preventive healthcare to its target segments across Texas and the U.S. In order to fulfill its mission, Ibn Sina Foundation seeks to build a reliable service delivery process that is effective, sustainable, and adaptable through a combination of best practices in medicine and community health, tight operational and financial controls and data capture and mining for community health initiatives and impact.

Accomplishments

Patients Served: 55,000 since 2001 patients served to date; more than 50 patients served daily.

Financial & Operations: With the support of donors and governmental organizations, Ibn Sina has raised the necessary funds to sustain growth. The clinics currently operate six days a week for a total of 55 hours per week (longest hours in the region).

Employee Base: Since 2001 the staff has grown by 300 percent and is expected to increase to 400 percent by end of 2007.

Volunteerism: Ibn Sina has established a broad base volunteer network ranging from young dedicated professional pharmacists, physicians, and specialists to seniors and architect groups.

Hurricane-Affected Families: Since 2005, Ibn Sina’s Community Clinics have provided free or reduced cost care to over 1,000 hurricane-affected families, the majority of whom are now permanent residents of SW Houston in close proximity to the clinic.

Services Provided in the new SW Houston Community Medical Center• Expanded Maternal and Child

Health • Ophthalmology – Ibn Sina Vision

Center • Extended state-of-the-art Dental

Facility with focus on children • Cardiology and Stress testing • Specialty Clinics • Diabetes Management and

prevention of diabetic complications

• Cancer Prevention through collaborative public and private partnerships

• Ultrasound including Echocardiography

• Digital X-ray imaging • Patient Education/Health

Screening • Enhanced Outreach Approach • Clinical Research • Pharmacy

For more information visit Ibn-Sina’s web site at www.ibnsinafoundation.org

http://www.ibnsinafoundation.org/

Greater Houston Retailers Cooperative Association, Inc.


13003 Southwest Freeway, Suite 150 Stafford, TX 77477 Office Hours: Monday-Friday 9:00am to 5:00pm Phone: 281-295-5300 Fax: 281-295-5399 E-mail: [email protected] GHRA Chronicle Team Communication and Publication: Iqbal Manji Editors: Iqbal Manji, Romina Mohammed Writers: Karim Dhukani, Kaiser Kasimali, Shama Kasimali, Shenila Momin, Danny Waxler, Ameen Ali, Richard Wills, Jim L. DeFoyd, and Aspi Mody Design, Layout & Printing Romina Mohammed The following is a paid advertisement

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