November Newsletter
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November 23, 2021 | CRA November Newsletter
Message from the President
Happy Thanksgiving! I wanted to take this opportunity to wish CRA members a happy and health holiday season.

As we look forward to 2022, CRA will be busy advocating on behalf of the retail industry in California. Organized Retail Crime, vaccine mandates, paid sick leave, packaging, gender pricing are just a few of the issues we will tackle, but as we reflect on the upcoming holiday season, I am proud of the work the CRA team has done on behalf of our members, and I look forward to working with each one of you to advance the retail industry in the state.

On behalf of the CRA team, we wish you only the best in the final weeks of 2021 and look forward to a successful 2022.

Rachel
Legislative Updates
Gender Pricing Update

The CRA team is collecting member feedback on the gender-pricing bill slated to be heard in the Assembly in January, and specifically how CRA should negotiate the bill’s enforcement provisions on our members' behalf. 

California Assemblymember Bauer-Kahan has expressed a desire to move forward with AB 1287. The bill is currently in Assembly Appropriations Committee and must be moved out of committee and off the Assembly Floor in January. Discussions between the author and the committee have begun over possible amendments to move the bill out of committee. 

The current version of the bill is fairly reflective of the New York statute. However, the bill was held over this past year because the committee believed the penalties were not sufficient to encourage prioritization of AG enforcement resources. The civil penalties proposed in the bill are $250/$500.  

With regard to enforcement, our chief concern last year was keeping this bill within the AG’s authority and not including local prosecutors. Maintaining that limited authority may require us to make some concessions on higher penalties. 

One option includes patterning the measure after the recently passed measure on labeling of disposable wipes containers (AB 818/2021).  That measure provides penalties of $2500 per day/up to $100,000 total.

We need member feedback on appropriate penalty levels, whether higher penalties would still be preferable to local prosecution and whether there are local prosecution options we can live with. Previous legislation has allowed for counties north of 750,000 in population (currently 15 counties) to enforce statewide measures in addition to the Attorney General.

The CRA team will will continue to have discussions with our members on this very important issue- if you would like to be included in the working group please email Ryan.
Federal Monitoring of State Workers' Compensation

CRA sent a letter to the committees with jurisdiction and to House and Senate leadership in opposition to the inclusion of state workers’ compensation monitoring in the concurrent resolution on the budget for fiscal year 2022, S. Con Res 14. This provision was included in the language reported by the House Committee on Education and Labor to authorize funding for the Office of Workers’ Compensation Programs for monitoring of State workers’ compensation programs. 

The Office of Workers’ Compensation is responsible for oversight of federal workers’ compensation programs, but is not responsible for monitoring state workers’ compensation programs.

We are monitoring the continuing discussion of the contents of the budget reconciliation package.

Read the letter here, also available on CRA's member portal.
Federal Reconciliation Tax Hikes

CRA signed onto a coalition letter to California’s congressional delegation opposing the reconciliation tax hikes. The letter urges a rejection of proposals in Congress to increase taxes on large and small businesses to pay for the massive multi-trillion-dollar reconciliation package. Employers have suffered staggering financial setbacks as a result of the COVID-19 pandemic and the reconciliation bill will only add to that struggle while they are attempting to rebuild, recover and deal with acute workforce shortages.

Read the letter here, also available on CRA's member portal.
Upcoming Legislative Dates

Jan. 1, 2022: Statutes take effect
Jan. 3, 2022: Legislature reconvenes for the second year of the 2021-2022 legislative session
Regulatory Updates
Delay of Federal COVID-19 ETS
"Soft Vaccine Mandate"

The state’s adoption of the federal OSHA ETS (the ”soft” vaccine mandate) was not taken up during the last CalOSHA Standards Board general meeting given the litigation uncertainty surrounding the federal ETS.  
 
As a member of the CalOSHA Advisory Committee for the proposed permanent regulation on COVID-19, the CRA team will keep our members updated with any further developments.

Click here to read a coalition letter CRA signed on to, which was submitted earlier this month to CalOSHA regarding the “New COVID-19 Emergency Temporary Standards Amendments". Points 1, 2, and 3 speak to CRA's issues. The readopted ETS (covering 1/14 to 4/14) eliminates some of the distinctions between vaccinated and unvaccinated workers and reinstitutes some social distancing requirements.

The letter along with other previous outreach on CalOSHA regs related to COVID-19 are available on CRA's member portal.
California Privacy Rights Act of 2020 (CPRA) Update

CRA submitted preliminary comments on the proposed rulemaking under the California Privacy Rights Act of 2020 (CPRA). 

Read the comments here, also available on CRA's member portal.
Proposed Rule-making Regarding Warnings for Acrylamide Exposure

CRA joined a comment letter submitted to the Office of Environmental Health Hazard Assessment regarding Proposed Amendments to Article 6, Clear and Reasonable Warnings (Acrylamide).
 
Read the letter here, also available on CRA's member portal.
Local Vaccine Mandates Update

CRA continues to be proactive in reaching out to cities and counties who are discussing a vaccine verification mandate to ensure retail is not included. So far, we have been fairly successful including ensuring that retail, malls and shopping centers were not included in the City of Los Angeles mandate. Additionally, retail was left out of the County of Los Angeles mandate.

Below is a list of cities and counties who have passed an ordinance, are considering an ordinance or who we are watching. We will continue to keep members updated on any developments. 

Vaccine mandates are currently in place in the following areas: 

  • Palm Springs – Read order HERE
  • San Francisco – **General retail not included, but pharmacists are included. Read order HERE
  • Berkeley – Read order HERE **includes all pharmacists must be fully vaccinated by Oct. 15
  • Contra Costa County – Retail not included. Read order HERE
  • City of Los Angeles – **Retail, shopping centers and malls are not included. Learn more about SafePassLA HERE
  • Los Angeles County – Retail not included. Read order HERE
  • West Hollywood – Read order HERE

Rescinded mandates:

  • Cathedral City – Rescinded by Council in last week of September.

Who we are watching: 
 
  • City of Millbrae – Put on hold (for now)
  • Alameda County – No update. Hasn’t been mentioned since September.
  • City of Sacramento – No update. Hasn’t been mentioned since August.
  • San Diego County – On October 13, Board Chair Nathan Fletcher said San Diego County not likely to implement an indoor vaccine mandate, such as Los Angeles. Read news article with quote HERE
CRA Upcoming Events
Virtual Retail Roundtable with
Attorney General Rob Bonta
Tuesday, November 30
1:30pm PT

Members Only

California's Attorney General Bonta will join CRA for a Retail Roundtable on November 30th at 1:30 pm PT. He will share his journey to AG, talk about Organized Retail Crime and the funding CRA obtained for the Department of Justice as well as answer questions for CRA members.

This is a CRA MEMBER ONLY EVENT. All CRA members in good standing will be invited to participate.

Questions? Email Ryan.
CRA Outreach and Activities
CRA President Calls for Greater Collaboration to Address the Growing Supply Chain Crisis

California Retailers Association President and CEO Rachel Michelin testified before the California State Assembly Select Committee on Ports and Goods Movement and the California State Senate Select Committee on Ports and Goods Movement in a joint informational hearing on the current congestion at California’s ports. Michelin addressed spiking costs, scarce containers and how the backup is impacting businesses.

"This is an immediate crisis that needs long-term solutions. The only way we get to those solutions is by quitting the finger pointing and working together across industries. We need meaningful and collaborative roundtable discussions with elected officials, regulators and other stakeholders to come up with effective actions that can fix this overwhelmed and vast system of systems. This legislative hearing is a start."

A record backlog at California's major ports - Los Angeles and Long Beach- are impacting businesses of all sizes, which will again feel the strain this holiday season adding to last year's challenges during the height of the pandemic.

“As container ships continue to sit outside our major ports and with the shortage of truck drivers and warehouse workers, small and mid-sized retailers will be hit hardest. We are seeing small business, unfortunately, unable to get their merchandise in time for the holiday season, which has already begun to impact consumers. For a second year in a row now, there is no guarantee consumers will be able to find certain items on store shelves."

Measures to address the crisis discussed during the hearing included workforce training to alleviate the growing shortage in truckers, warehouse and port workers, more public-private partnerships, especially at the local level, to increase velocity and flow at the port terminals and continued efforts to move empty containers off the port docks and freeing up warehouse space and chassis, the wheels containers sit on when being trucked across the state.

"I appreciate the efforts of Assemblymember Patrick O’Donnell and Senator Lena Gonzalez for starting these critical conversations at the state legislative level and hope to see more of these collaborative discussions moving forward. This is not a 30 day issue, it is a six month and beyond issue that must be solved."

The CRA team live-tweeted the hearing.
California Business Community Responds to Governor Gavin Newsom's
Executive Order on the Goods Movement Crisis

CRA joined our colleagues in the following statement in response to Governor Gavin Newsom’s Executive Order addressing the supply chain crisis.

“While we support the governor’s response to this crisis, today’s Executive Order is a first of many steps in addressing the crisis unfolding at every level of the supply chain. There are additional real, tangible actions the governor could take to meet the moment and tackle this crisis head-on, but convening taskforces in 2022, delaying urgent actions for at least a month, and pushing funding discussions to the January budget proposal do not provide the sense of urgency needed to address this crisis now."
WATCH: CRA President and CEO Rachel Michelin Presents Current State of Affairs for the Retail Industry as Keynote Speaker at Roseville Chamber Luncheon

Rachel addressed the Chamber and its members on what shoppers and employers need to know about the upcoming holiday season, how the issues in the supply chain in California have rippling effects and what to expect in 2022.
CRA President and CEO Rachel Michelin Speaks to Elk Grove Police Department at Local Retail Theft Symposium

The event was hosted by the Elk Grove Police Department's Loss Prevention Program and included their regional loss prevention managers. Joining Rachel in the presentations were Sacramento County District Attorney Anne-Marie Schubert who spoke on the desire to prosecute and California Highway Patrol, which provided details on what the statewide Organized Retail Task Force does. Rachel updated the group on CRA's successful efforts this year to extend and secure funding for the task force, along with additional outreach to address the growing problem of ORC.
CRA Participates in Los Angeles Area Chamber of Commerce Forum Addressing Ports Congestion and Supply Chain Crisis

CRA participated in an online forum hosted by the Los Angeles Area Chamber of Commerce that addressed the current issue of ports congestion, which is disrupting the already stressed supply chains. The forum focused on educating stakeholders about the root causes and all contributing factors of the current situation with the goal of serving as a critical first step to addressing the crisis.

Shared on Twitter and Linkedin.
CRA In The News
In Case You Missed It...
CRA In the News Responding to Top Issues Affecting Consumers, Economy & Jobs

The California Retailers Association continues to be at the forefront of major issues impacting retailers and the greater business community throughout California, the nation and world including the ongoing supply chain crisis and Organized Retail Crime (ORC).

CRA President and CEO Rachel Michelin spoke with ABC7 Bay Area News about the growing ORC problem in San Francisco, which has lead to the closure of Walgreens stores and reduction in operational hours for Target and Safeway. WATCH HERE.

Over just a few weeks time, Rachel has been interviewed by dozens of news stations, including Fox 40 in Sacramento, requesting expert opinion and industry reaction to the supply chain crisis, which is having an immediate impact on the holiday shopping season, and ORC.

CRA is gearing up for another very busy year in 2022 and one of the key ways we get out in front of important issues impacting our members is by being their voice in the press.

SUPPLY CHAIN

Editorial: Newsom dawdles as port crisis sinks U.S. economy
Southern California News Group

Will the Bay Area see holiday shopping shortages? Here's what retail experts are saying
San Francisco Chronicle

Port crisis pulls California farmers into ‘perfect storm’ of competing interests
Agri Pulse

Groups Urge Newsom to do More to Fix Port Congestion
Sacramento Business Journal

Quote of the Week
Sacramento Business Journal

California legislators spend 5 hours hashing out supply chain problems and solutions
The Mercury News
Also appeared in:

‘A multi-faceted problem’: Lawmakers confront major congestion issues at California’s ports
KTXL Fox40 (Sacramento)

California legislators convene supply chain hearing to address port congestion
Northern California Record

Theft at clogged California ports worsens supply chain issues for businesses, consumers
Northern California Record

Produce piling up as California port crisis rolls on
Courthouse News Service

Supply Chain Delays Disrupt California Agriculture Exports
Associated Press/The Business Journal
Also appeared in:

CEO of California Retailer’s Association discusses supply chain impact on holiday shopping
KTXL Fox40 (Sacramento)

LA, Long Beach ports delay when they will levy slow-container fee until Nov. 15. – Daily News
Los Angeles Daily News

LA, Long Beach ports delay when they will levy slow-container fee until Nov. 15. – Press Telegram
California News Times & Press-Telegram

Call the National Guard? California businesses call port backlog an 'emergency' situation
Commercial Carrier Journal

Driver shortage, state regulations add to California supply chain crisis
Northern California Record

California business community responds to Governor Newsom’s executive order on the goods movement crisis
Orange County Breeze

Start your holiday shopping early to avoid delays amid supply chain impacts, experts say
ABC10 Sacramento

California: Governor's exec order not enough to alleviate supply chain woes - Ag Council
FreshFruitPortal.com

New law takes aim at ‘bad actors’ in trucking—and the companies using their services
Long Beach Business Journal

Are California labor laws holding back supply chain? Businesses ask Newsom for a break
Sacramento Bee Capitol Alert
Also appeared in:

ORGANIZED RETAIL CRIME

Gov. Newsom promises swift action after weekend of smash and grabs
KTXL Fox 40 Sacramento

String of Bay Area high-profile retail robberies brings calls for action
The Mercury News
Also appeared in:

After Nordstrom robbery in California, will other retailers be next? Experts say yes.
USA Today

Expert explains why stolen merchandise doesn't always end up being returned to retail stores
ABC7 Bay Area
Also appeared in:

A new breed of brazen takeover robbers hitting California luxury retailers, raising ire
Bakersfield Californian

Bay Area crime spree raises questions about district attorney, prosecution of shoplifters
KMPH Fox26

San Francisco Target theft suspect arrested for alleged thefts of more than $40G from store
Yahoo News
Also appeared in: 

Video Shows Man Stealing Piles of Clothes From San Francisco Store Amid Shoplifting Surge
Newsweek
Also appeared in:

'Breaking point': Once 24-hour Safeway in SF's Castro is reducing its hours due to theft
ABC7 Bay Area

San Francisco Retailer Forced to Change Hours Due to Excessive Theft, Fourth Chain to Do So
Newsweek

Due to high theft, a San Francisco retailer has been forced to change its hours, making it the fourth chain to do so.
The Washington Newsday

Violent shoplifting incidents on the rise in large cities
Fox News

Retail Evolution and City Transformation in the Post-Pandemic Economy
Loss Prevention Magazine

More San Francisco residents are hiring private security amid crime spike
NBC 15 News (Alabama)
ABC 7 News (Arkansas)

Other Issues/Topics

Major Retailers Decide To Close On Thanksgiving
CBS2/KCAL9 Los Angeles

Retailers compete for holiday workers, but North Bay smaller businesses may have an edge
The North Bay Business Journal

Chamber Seeks Full 9th Circ. Look At Forced Arbitration Ban​​​​​​​
Law 360

Biz Groups Urge 9th Circ. To Rethink Arbitration Ban Ruling
Law360
CRA Member News & Highlights
Forbes: Macy’s Will Pay For Its Employees’ College Tuition

Macy’s has joined the ever-growing list of major employers offering to pay for its workers’ college education along with boosting their wages and other benefits.

The department store chain announced it will cover 100% of tuition, books and fees for its U.S.-based, regular, salaried and hourly employees. The offer covers several educational options, including courses for high school completion, college prep, English language learning, associate and bachelor’s degrees, bootcamps and professional certificates.
CRA Partner Events
Registration Still Open For Strategic Issues Conference

Several major groups have come together to host an event you don’t want to miss! California Business Properties Association (CBPA), American Council for Engineering Companies (ACEC), Building Owners and Managers of California (BOMA CAL), California Alliance for Jobs (CAJ), California Building Industry Association (CBIA), California Business Roundtable (CBRT), California Manufacturers & Technology Association (CMTA), California Retailers Association (CRA), invite you to attend one of the premier California policy gatherings, 2021 Strategic Issues Conference.

California’s leading home builders, retailers, manufacturers, business property owners, managers, and developers will come together to increase public policy and political awareness of state and national issues and foster collaborative efforts among business leaders from all sectors of the California economy. 

2021 Strategic Issues Conference
 
December 2-3, 2021 
Embassy Suites by Hilton Napa Valley
1075 California Boulevard, Napa, CA - CLICK HERE FOR HOTEL ROOM BLOCK
 
Our Panels Will Cover…
  • Upcoming 2022 Elections and Statewide Politics
  • California’s Response to the Drought
  • Storm Water Runoff
  • Housing in California
  • Goods Movement and the Supply Chain
  • How Crime affects California
 
Stay Informed!
CLICK HERE for updates on our line-up of keynote speakers, and panelists in the weeks to come.
 
Sponsorship Opportunities
The Strategic Issues Conference offers a unique opportunity, in an intimate setting, to enjoy significant exposure to key decision-makers and policymakers from both the public and private sectors. Your sponsorship will signal your strong support for improving the business climate in California. 

CLICK HERE for sponsorship details or contact Melissa Stevens at mstevens@cbpa.com
Join a CRA Committee, Task Force or Work Group
We know 2022 will be another very busy year for CRA advocacy and education efforts. To ensure your company's voice is included in policy and regulatory decisions at the state and local level and to maximize your member benefits with CRA, sign up for a Committee, Task Force or Work Group today. CRA wants to be as inclusive and responsive to our members as possible, but we need your help and expertise. We welcome CRA members participation on these organizational structures to assist the CRA team with the best policy strategy moving forward.

If you or any of your subject matter colleagues are interested in participating on a committee, task force or work group, please send an email to cra@calreatilers.com.

To provide an example of the importance of this organizational structure, members of CRA's Packaging Committee met virtually last week to “level-set” on product packaging issues and discuss concerns with the Recology initiative, hear updates on potential legislation and give members a forum to share feedback on retail priorities moving forward. Pandemic or not, 2022 is shaping up to be perhaps the decisive year on the packaging issue.

Retail principles the group discussed in previous meetings include:
  • EPR fees should be paid by producers, not POS
  • EPR program should be materials-neutral, not plastic-only
  • Prioritize recycling infrastructure in advance of recycling mandates
 
Click here for a copy of the Recology initiative slated for the November 2022 ballot, also available on CRA's member portal under the Political section. 
CRA Member Portal
CRA members get access to CRA's exclusive online member portal, which contains coalition letters, floor alerts, regulatory comments and testimony that California Retailers Association authored or signed on to during previous Legislative sessions as well as the latest updates on the 2021-2022 legislative session. The portal also contains newsletter, news alert archives and important association governance documents for your reference. If you have not yet received your login credentials and access instructions please email cra@calretailers.com. We are also available to answer any questions you may have regarding portal navigation.
California Retailers Association https://calretailers.com/
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