Refrigeration Magazine March 2016

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The March 2016 issue of Refrigeration Magazine features the Food Safety Modernization Act and highlights from the Southwestern Ice Association Convention in Texas.


  • MARCH 2016

    Food Safety Modernization Act IT'S COMING...

    C-Store M&A

    Mo. Valley Meets

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  • March 2016 REFRIGERATION Magazine 3



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    FREQUENTLY ASKED QUESTIONS ON FSMASome FAQs you may not have considered

    DRY ICE USESThree uses you may not know about

    IRS SEIZES CONVENIENCE STORE OWNERS BANK ACCOUNTImmigrant unknowingly forfeits bank account

    FSMA AND YOUIt's coming, but not quite here

    COOL PICS FROM THE SWIA CONVENTION Attendees enjoy days of education and networking

    SHIFTING FROM "JUST SOME GAS STATION" TO "MY CORNER SHOP" Convenience stores make a leap

    CALENDARRM's editorial calendar and upcoming industry events


    Table ofCONTENTS

    DEPARTMENTSspICE You Want The Good News Or The Bad News First? 4AD INDEX A list of our advertisers 26CLASSIFIED ADS Classified advertisements by region 26



    Mary Y. CronleyEditor/ 819-5446

    Joe CronleySenior Staff 295-5712

    Markurious Marketing GroupArt 439-6534


    Mary Y. CronleyEditor/ 819-5446

    Established as ICE in 1906, Refrigeration Magazine is published thirteen times a year, including the Annual Buyer's Guide.

    Postmaster: Send notice by form 3579 to:Refrigeration Magazine260 Lakeview Ridge EastRoswell, GA 30076

    Annual Subscriptions: US: $49/year or $79/two yearsInternational: $79/year

    Single Copies: $6/copy

    Copyright 2016 by REFRIGERATION Magazine. All rights reserved.

    March 2016Vol. 199 No. 4ISSN #0034-3137


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    You Want The Good News Or The Bad News First?Here in an election year, everybody talks about the other guy. They never say its you that is the problem, or you who will have to pay for the problem. The problem needs to be fixed. Everybody agrees on that. But the one whos talking says that he or she has a way to get the other guy to pay to fix it.

    Long after the election night parties, when the big plan to fix the problem is finally revealed, you find out that what you suspected the whole time turns out to be true. Whenever they were talking about getting the other guy to pay to fix the problem, who they really meant was you.

    Its a pretty basic principle that when you pay for food, whether its from the grocery, a restaurant or a hot dog stand on the corner, it should be safe to eat. Yet, here in 21st century America, last year there were mass illnesses from a popular Tex-Mex chain, and multiple raw food incidents that resulted in many illnesses and even a death! Public health isnt just one guys problem, a rich or poor problem, a Democrat or Republican problem. Whether its the Zika virus, Ebola before that, or Flints water system, there is little disagreement that public health requires protection.

    In 1970, the American automobile was king of the world. You could still get a Trans Am. We had big heavy chrome bumpers, lap belts only, no airbags, no antilock brakes. The only real safety feature was 4,000 pounds of steel around you, and it was good and worn out if it clocked 100,000 miles.

    Today, cars are about half plastic and have more airbags than cupholders (plus, they have a lot of cupholders). You can get a Toyota with a 4 liter engine that pulls more horsepower than that 1970 Trans Ams 7.9 liter engine, plus it gets 30 miles per gallon on the highway.

    Turns out that emissions controls forced the auto industry to make more efficient, smaller engines. When combined with computerized engine controls and computer controlled precision manufacturing equipment, engines produce more power with less fuel than possible in 1970, and with a little care they run for 200,000 miles.

    Everybody pays for those advances when they buy a car. In India, you can buy a car with no air bags, no safety features, no radio or air conditioner for under $2,000 US. Thats what cars would cost here without any of that stuff. Americans have to pay for all of the extras, all of us. But since every car has to have all of those features, one person cant get the cheap Indian car while the rest of us pay extra.

    It would not make much sense to turn a bunch of 1,100 pound Indian cars loose on the highway when they may not reach U.S. highway speeds, and they get crushed like a soda can in a 50 mph wreck. Some people would be put at significant risk, while others would pay a much higher price but be safer.

    When everybody pays the same price to achieve something that genuinely protects the public, it doesnt create a relative advantage for anyone over another.

    The Food Safety Modernization Act will cost money to implement. The most modern, cleanest packaged ice plant out there will have to spend money documenting and certifying their facility, even if it already meets the new standard.

    If you thought the first paragraph was a lead-in to the idea that you are going to have to pay for something that a politician promised another guy would have to pay for, youre right. Thats the bad news.

    The good news is, you will not incur any expense that your competitor will not. Like the fact that every car on the highway has to have the same safety equipment, every food plant must meet the same standard.

    And, like the fact that regulatory action made cars safer and more efficient even if more expensive, there will be societal benefits. Nobody should have to question the safety of their burrito bowl or bag of salad. Your costs will be built into your price, and with all of your competitors experiencing the same pressures, youre on a level playing field.

    Its a chance to improve the way you do business. That should be something to which every business aspires.

    Mary Yopp CronleyEditor, Refrigeration Magazine


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  • March 2016 REFRIGERATION Magazine 7

    IRS Seizes Convenience Store Owners Bank AccountA convenience store owner who had his entire bank account seized under an Internal Revenue Service policy meant to target drug dealers and money launderers will be repaid in full.

    Khalid "Ken" Quran has been fighting for months to have more than $150,000 returned from the IRS with the help of Washington-based nonprofit public interest firm The Institute for Justice.

    Quran, a Middle Eastern immigrant, says he unknowingly forfeited his entire bank account in June 2014 to agents who visited his Greenville, North Carolina, store, accusing him of skirting reporting laws.

    The business owner had been making withdrawals of less than $10,000 regularly, and drew a red flag for potential "structuring," a tactic used by criminals who break up their banking transactions to evade authorities. Transactions over the $10,000 threshold must be reported, and these rules intended to target criminals have been applied in some cases in recent years to small-business owners who operate mostly in cash.

    "He said, 'You need to sign a paper,' and I told him my English is not right," Quran told a CNBC reporter. "Then he read it to me like you would read the newspaper and said you need to sign it."

    Quran said he did nothing wrong. "No bank told me that. No bookkeeper told me that," he said.The IRS changed its policies in October 2014, restricting asset forfeitures to cases in which the property owner is suspected of criminal activity. The Department of Justice followed suit with a new policy directive for structuring in March 2015, which says the asset forfeiture program will focus on the "most serious illegal banking transactions."

    The two agencies work closely together on structuring cases, but unfortunately for Quran and other business owners, these changes were not retroactive.

    The Institute for Justice took up Quran's case and filed a petition for mitigation or remission, essentially a pardon, in July 2015, and sent a follow-up letter to the IRS, seeking answers.The nonprofit received a fax dated Feb. 18,

    that says "mitigation of forfeiture is granted in full," signed by the chief of criminal investigation at the IRS.

    "The IRS took Ken's money without ever accusing him of doing anything wrong," said Robert Johnson, the attorney representing Quran and other small businesses impacted by the IRS policy. "The IRS realized it was wrong when it changed its policies and it has done the right thing in giving it back. That money should have never been taken in the first place, and I hope this is just the beginning."

    The IRS did not respond immediately to a request for comment. "I am very, very happy, and I believe there is justice in this country," Quran told CNBC.