October 18, 2021 | CRA October Newsletter: 2021 Legislative Wrap Up and Look Ahead to 2022, Regulatory and Public Affairs Updates |
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Message from the President |
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With the end of the 2021 Legislative Session, I was hopeful the CRA team would have some time to catch our breath and strategize for 2022, unfortunately that does not seem to be the case!
As I know you are all aware, we are facing supply chain issues impacting the goods movement, not only in California, but nationally. California, as the 5th largest economy in the world, accounts for 40% of the nation’s goods coming through the Ports of Los Angeles and Long Beach, alone. CRA has been very active on this issue, positioning the association as a resource to all entities along the supply chain movement. In addition, I will be testifying on November 3rd at the Select Committee on the California Goods Movement to represent the retail and warehouse industries in the state and, on Friday, will join the leaders of the Port of LA and Long Beach on a panel discussion related to supply chain issues facing our industry. CRA is looking for ways to lead on this issue – look for new initiatives to be announced by the association in the next few weeks.
If supply chain issues were not enough, CRA is still actively engaged in the issue of retail theft. While much of my focus has been in San Francisco, we are looking at ways to broaden our reach and have an impact on this issue throughout California. We recently confirmed a meeting for CRA members with the San Francisco District Attorney – Chesa Boudin, to share our concerns directly with him (more details below) and have confirmed a meeting with California Attorney General Rob Bonta in November. He will be addressing the issue of ORC and retail theft in California for CRA members.
As we look to the 2022 legislative session, we expect to have a full legislative agenda with issues related to COVID and the vaccine, environmental sustainability, labor issues, crime & homelessness and other pressing issues. We will have a greater sense of where the state is headed once we digest the State Budget that will be released by the Governor in early January.
Moreover, 2022 is an election year and there will be no rest of the weary on the political side. I have been meeting with potential candidates for statewide and legislative office and we are doing a due diligence in monitoring and educating ourselves on the statewide initiatives. Look for more information on the political landscape in the next few months.
Shortly, you will receive an email invitation to sign up for CRA committees and list serves, I encourage you to sign up, especially if you are a subject matter expert – WE NEED YOUR INPUT!
As always, please do not hesitate to reach out to me directly if I can be of assistance or if you have any issues, we can help you with.
Rachel
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The deadline for the Governor to take final action on legislation came and went Sunday with a mix of wins and disappointments for retailers. Overall, the Governor vetoed just 8% of measures reaching his Desk in the final weeks, a considerably lower rate than previous years and less than half his veto rate from 2019. This was, perhaps, due to the relatively limited number of bills and corresponding pressure to pass the remaining measures in play.
For retailers, the biggest disappointment of the past month was Newsom’s approval of AB 701 (Gonzalez) which, while softened considerably by amendments taken after intense lobbying by CRA and other opponents, will heap substantial new liability on warehouse operators, complicate employee management and could add new challenges to our struggling supply chains. (Read CRA's veto letter here, also available on CRA's member portal).
Labor also won the Governor’s signature on SB 62 (Durazo) which will create joint and several liability for “brand guarantors” including retailers for manufacturer wage violations in the garment industry. Retailers who contract for the making of house brand clothing will now be liable for unpaid wages and other compensation, including interest, for employees of manufacturers or even subcontractors. In forcing retailers to assume responsibility for decisions not under their control, this measure complicates the ability of retailers to contract for the manufacture of clothing in California.
Retailers were pleased with the Governor’s veto of SB 792 (Glazer), which proposed to add a new reporting requirement for online retailers to report all sales by point of delivery. That measure, sponsored by the League of California Cities, was intended to drive advocacy for eliminating local sales tax agreements between many local governments and retailers for the location of distribution centers. In his veto message, the Governor cited CRA’s concerns that the “bill creates a burdensome and costly new reporting requirement for many retailers that is unrelated to their tax obligations.”
With the approval of AB 1084 (Low), retailers with 500 or more employees nationally will be required to maintain “gender neutral” departments for children’s toys and baby items in their California stores. CRA initially opposed this measure, but took a neutral position after amendments in June to remove children’s clothing from the bill.
On environmental sustainability, it was a quieter year for retail but a number of major issues related to the “circular economy” loom for 2022. The Governor disappointingly vetoed a CRA-supported measure to enhance the safe handling and disposal of lithium batteries. SB 244 (Archuleta) had no opposition in either house, but the Governor’s veto message expressed a desire to leverage this measure for an EPR program for batteries, as has been tried the last three years running to no avail. Retailers and others in the industry already expected that this issue will be on-tap again in 2022. The Governor approved AB 1346 (Berman), which will ban combustion engines for leaf-blowers, lawnmowers and other equipment by 2024. As amended, the bill now mirrors a rule-making process at the Air Resources Board (CARB), but one that will result in significant transition costs to equipment owners including retailers who rent these items.
A suite of labor issues of concern to retailers and other employers also resulted in a mixed bag. Retailers were appreciative of the Governor’s veto of a union “card-check” measure for agricultural employees, AB 616 (Stone), that would have impacted the supply chain for food, but also created a terrible precedent for the entire private sector by steering union elections away from the secret ballot process. (Read CRA's veto letter here, also available on CRA's member portal). However, the Governor signed SB 606 (Gonzalez), which will create enhanced fines for violations of California’s own COVID-19 workplace regulations, including new “enterprise-wide” violations for employers with non-compliant policies or practices at more than one facility, and new “egregious employer” penalties which would allow penalties to be multiplied variously by five or ten times. Thankfully, the Assembly shelved SB 410 (Leyva) in the final days of the Legislative Session, which would have allowed new CalOSHA regulations to circumvent the economic analysis and consideration of alternatives currently required of all “major regulations” with an impact of $50 million or more on the economy. That measure would have negatively impacted outcomes of upcoming rulemakings such as the permanent COVID-19 workplace regulation.
Despite the passage of bills like AB 701 and SB 62, which will hammer retailers and other businesses, there is still consternation among unions, environmental advocates and other interests with the results of this legislative session. As Democrats continue to tighten their grip on the Legislature, the expectations of these interest groups only get higher. Heading into an election year in 2022, retailers can expect many more challenges ahead.
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Additional Legislative Updates |
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Political and Public Affairs Updates |
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The CRA Virtual Annual Membership Meeting will be held Friday, Oct. 29. Members will have an opportunity to hear from industry leaders and elected officials on the current supply chain crisis and other issues facing California's retail and larger business community, including a postmortem on the most recent legislative session.
Featured Speakers:
- The Honorable John D. Porcari, Port Envoy to the Biden-Harris Administration Supply Chain Disruptions Task Force
- Mr. Gene Seroka, Executive Director, Port of Los Angeles
- Assemblymember Patrick O’Donnell, Chairman, Select Committee on the California Goods Movement
- Ms. Dee Dee Myers, Special Advisor to Governor Gavin Newsom & Director, GoBiz
- Assemblymember Reggie Jones Sawyer, Chairman, Public Safety Committee, Author of AB 331
- CRA’s 2021 Legislative Retail Champion of the Year
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The entire event is VIRTUAL and for CRA Members ONLY.
RSVP REQUIRED. AGENDA AND ZOOM LINK PROVIDED TO ALL CONFIRMED ATTENDEES PRIOR TO THE EVENT.
***SPACE IS LIMITED***
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Virtual Meeting with San Francisco
District Attorney Chesa Boudin
Tuesday, November 2
11:00am PT - 12:00pm PT
Members Only
CRA invites asset protection experts from our member companies to meet with San Francisco's District Attorney via Zoom to discuss the growing problem of Organized Retail Crime. We're asking for experts so we can provide specific details and asks to the DA's Office in an effort to collaboratively work towards solutions.
This is a CRA MEMBER ONLY EVENT. All CRA members in good standing will be invited to participate.
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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.
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Rachel Michelin, President and CEO of the California Retailers Association Wins STEVIE® Award in 2021 Stevie Award for Women in Business
Women Around the World to Be Recognized During Virtual Event
Rachel Michelin, President and CEO of the California Retailers Association has been named the winner of a Bronze Stevie®Award in the “Female Executive of the Year – Government or Non-Profit –10 or Less Employees” category in the 18th annual Stevie Awards for Women in Business.
The Stevie Awards for Women in Business honor women executives, entrepreneurs, employees and the companies they run– worldwide. The Stevie Awards have been hailed as the world’s premier business awards.
More than 1,500 entries were submitted this year for consideration in more than 100 categories, including Executive of the Year, Entrepreneur of the Year, Company of the Year, Startup of the Year, Women Helping Women and Women Run Workplace of the Year.
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CRA Meets with Port of Los Angeles Executive Director Gene Seroka
CRA members joined Gene Seroka, Executive Director for the Port of Los Angeles for a meeting to discuss port congestion and supply chain movement in the Port of Los Angeles. The meeting provided CRA's members with an exclusive opportunity to ask questions and provide direct feedback to Seroka and his team.
Background
Recently, the Port of Los Angeles (POLA) announced Accelerate Cargo LA, a bold new initiative to improve freight movement and reduce delays through the port as it continues to experience record volumes. Accelerate Cargo LA is a pilot program designed to help cargo owners by coordinating gate activity, providing greater transparency and improving cargo velocity.
Today, to pick up cargo at the port, a customer generally makes an appointment to pick up a container. Yet, even in today's challenged environment with dozens of ships waiting offshore, 30% of available appointments are untouched in each of the two daily shifts. Under this pilot program, POLA will work to address this latent capacity by working directly with cargo owners, trucking companies, terminal operators and shipping lines to ensure successful gate transactions.
Presently, POLA is reaching out to cargo owners to find pilot participants who will be asked to supply basic information on cargo in the terminals and inbound. POLA staff will work with marine terminal operators to have the cargo ready for pick-up and ready to accept empty containers. This ensures the important dual transaction for truckers where they can drop an empty container and pick up an import container.
Currently, many of the POLA marine terminals are operating at or near 100% capacity. By working with retailers and other cargo owners through this pilot to maximize available truck appointments, the port will begin to free up that capacity and begin to clear up the congestion that exists on our marine terminals without adding cost to the system.
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CRA Responds to New Organized Retail Crime Initiative in San Francisco
Rachel Michelin, President and CEO of the California Retailers Association:
“California Retailers Association applauds the efforts by the San Francisco Mayor, local elected officials and law enforcement to announce a new initiative, in partnership with local retailers and the business community, to combat the City and County’s growing organized retail crime problem.
CRA’s members have hundreds of stores throughout the County and City of San Francisco that have struggled for years with the continued rise in retail theft including having to limit store hours, place consumer items behind locked cases and even close stores."
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CRA President and CEO Speaks at 2021 Property Tax Retail Roundtable Virtual Conference
CRA President and CEO Rachel Michelin spoke on a panel “Retail Associations: Our Last Line of Defense”. Thank you to CRA member Walgreens for including CRA in a timely discussion on property tax, an important issue affecting the retail industry. We were joined by several retail associations across the country including the Illinois Retail Merchants Association, Retail Council of New York State and the Kentucky Retail Federation
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CRA President and CEO Rachel Michelin Speaks with CBS Los Angeles about Ongoing Supply Chain Crisis
Rachel: “This is a national and international problem and, really, part of it is related to COVID, part of it is related to consumer spending. There’s a lot of different factors engaged. We need to recruit more truckers. We need to recruit more port workers. That’s part of a whole other conversation as to why we have such a labor shortage in California. You can attribute that to some of the policies that might have come through because of COVID. I think it’s harder sometimes, to recruit younger people in these types of jobs.”
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CRA President and CEO Rachel Michelin Speaks with KPIX 5 CBS San Francisco/Bay Area Addressing San Francisco’s New Anti-Retail Theft Initiative
Rachel: "San Francisco is one of the worst cities in the country for retail theft. While CRA applauds the initiative, we will be watching closely to make sure the talk amounts to change.
We’re all in on working with law enforcement and the mayor and making sure that we can at least put a dent in this problem. We are also there to, frankly, hold the mayor and police chief accountable. We want to make sure that they follow through on what they said they’re going to do. We’re going to watch – and be active, positive participants in the process.”
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CRA President and CEO Rachel Michelin Gives Current State of Affairs for the Retail Industry as the Keynote Speaker at the Roseville Area Chamber of Commerce's 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.
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CRA Member News & Highlights |
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CVS Plans to Hire Over 3,000 in California
The announcement is part of nationwide initiative to hire 25,000 across country
CVS held a one-day national career event to recruit candidates for 25,000 clinical and retail jobs.
California candidates can apply immediately to fill 3,100 openings, which include full-time, part-time and temporary licensed pharmacist positions, pharmacy technicians, nurses and retail associates at CVS Pharmacy store locations across the state.
The hiring event is part of CVS’s recent investment in its employees. The company announced in August it would raise the corporate-wide minimum wage to $15 an hour, which goes into effect July 2022.
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Acing Sustainable Retailing: How to Keep Up with Customers’ High Standards for Efficient Products through Title 20 Compliance |
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Why invest in sustainable retailing? According to a Cone Communications study, 87% of Americans purchase products from businesses that advocate for social and environmental responsibility. As a result, customers are more likely to spend their money with retailers that meet their values. Ranking high on the list of important values for Americans is the environment, according to a Shelton Group, Good Company report. It’s not surprising that retailers are promoting their environmental sustainability efforts, including reducing their carbon footprints, using less packaging, cutting annual greenhouse gas emissions and keeping plastic waste out of landfills.
However, a key component retailers often miss in these efforts is verifying that they are selling products compliant with California’s Title 20 Appliance Efficiency Standards. The California Energy Commission (CEC) estimates that these standards save Californians more than 34,000 GWh of electricity annually, resulting in a reduction of GHG emissions equivalent to those from 5.2 million passenger vehicles! The CEC also estimates that 105 billion gallons of water are saved annually through compliance with these standards. By ensuring that you’re only selling compliant products, you’re aligning corporate, social and environmental responsibility initiatives with customer values.
Want more information? Energy Code Ace offers no-cost tools, training and resources to help retailers comply with both Title 20 and the Title 24, Part 6 Energy Code. Retailers have an important role to play in providing your customers the energy and/or water-efficient products they want and the environment needs. Make compliance a priority today and add appliance efficiency standards compliance to your corporate environmental sustainability goals.
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Registration Now Open For Our 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
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.
Early Bird Discount
We’re offering early-bird registration to Members who register by October 31st!
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.
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DX3 USA is rooted at the intersection of Retail, Marketing, and Technology. While the dynamics may have changed in the last year, the interconnectivity of these three elements is what defines the retail of today and will continue to do so in the future.
Join us virtually for DX3 USA, on November 9-10, 2021 to hear stories of success, discover the latest trends and gain inspiration from the biggest names in retail, marketing and technology.
Here is what we have in store for you:
- 2 days of insightful conversations between 2 streams- Retail & Marketing
- Interactive Workshops
- Opportunity to attend the event safely from across the globe
- A chance to meet market leaders from top Retail brands
- Network with like-minded professionals from the industry
- Innovative exhibitor booths
- Hear growth stories from C- level executives
CRA Moderating a Panel Session: "Fostering Discovery Online"
CRA's Manager of State and Local Government Affairs Ryan Allain will be moderating a session on "Fostering Discovery Online on November 9 at 10:00am. Topics and questions include:
- Can online shopping replicate the “discovery” element of in-person experience?
- Mitigating factors
- Successful innovations in discovery shopping
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CRA Member Discount
CRA members can use the code 'CRA20' to get a 20% discount when purchasing tickets for DX3 USA 2021. This offer is only for retailers and is valid from October 13th to October 27th.
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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.
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Follow CRA on Facebook, Twitter, Linkedin and Instgram to stay up to date on the latest developments in statewide and local legislation and policies, regulations, relevant industry and member related news and association events. |
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