September Newsletter
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September 14, 2021 | End of Session Wrap Up
Message from the President
Friday marked the final day of the 2021 Legislative Session and what a session it was. The halls of the Capitol were empty as most folks were not allowed in. Yet again, we lobbied via phone, text and zoom.

I am happy to report that CRA had an 82% win rate! Of the 50 top bills we engaged in, we won 41 and lost only nine. In addition, we pushed our sponsored bill, AB 331, over the finish line and ensured the California Organized Retail Crime Task force continued to be funded.

As we look past the legislative session, we start to look at what CRA will focus on in the next few months:

  • Environmental Sustainability Issues – we know in 2022 we will be focusing on several bills related to sustainability. Our goal is to ensure we are telling the “story” of how the retail industry is leading on this issue. 
  • Gender Pricing – There is a bill pending in the State Assembly and we will work with the author on ensuring this does not over impact or overly burden CRA members.
  • Organized Retail Crime – we will continue to work with Cal ORCA providing leadership and structure so we can impact policy in the state. Look for our first “Retail Theft Summit” in San Francisco early next year. 
  • COVID vaccine mandate – CRA is closely following the national debate on a vaccine mandate, but are anticipating a possible Executive Order and negotiations on legislation in California BEFORE we see any action or regulations out of OSHA. 
  • Paid Sick Leave – while we were successful in ensuring the COVID Supplemental Paid Sick Leave expires on September 30th, we anticipate another fight in the next few months – most likely tied to the EO on a possible vaccine mandate.
  •  2022 Ballot Initiatives – we are starting to turn our attention to the 2022 Election and what ballot initiatives we might see. We know the packaging initiative has qualified, we are working on PAGA reform, there is talk of a new split roll initiative in addition to a few others.

I hope you will join us for our Annual Meeting on October 29th so you can hear directly about new initiatives and projects CRA is advancing on our members' behalf. In addition, we will preview our legislative agenda for the 2022 session.

As always, my door is always open. Please do not hesitate to reach out directly should you have any questions, concerns on ideas related to California and the work of CRA.

Rachel
Legislative Recess Wrap Up
Legislative Win: Paid Sick Leave and Vaccine Mandate

CRA members escaped this year's legislative session without a bill on vaccine mandate and/or an extension of COVID paid sick leave. The Assemblymember leading the charge to extend the COVID supplemental sick leave, which would have required many employers to offer 80 paid hours off for COVID-related illness, was unable to get the support to pass legislation to extend supplemental sick leave past the September 30th sunset.
 
Part of the reason why the author did not pursue the extension was due to the advocacy of CRA and the coalition in opposition to the extension. Read our letter here. CRA also signed onto a letter opposing Assemblymember Nancy Skinner's SB 95. Both letters are also available on CRA's member portal.
 
While we are not anticipating it, the CRA team will continue to monitor this issue if there is an effort by the Governor, post the September 14th recall election, to extend the sick leave via an Executive Order.

Additionally, Assemblymember Buffy Wicks held her bill saying she would not move on it this year, but plans to re-introduce in January. She has asked CRA to engage on further conversations and negotiations over the interim, which we agreed to. 

End of 2021 Legislative Session
Bill Status Update

View CRA's end of session bill list and status updates here, also available on CRA's member portal.

We have prepared a graph below to depict the outcome of the first year of the 2021-2022 legislative session. Our legislative victories far outnumber the losses thanks to the tireless work of CRA's advocacy team.
The graph below also shows our efforts in opposing more bills than supporting or remaining neutral, which is not surprising given California's political climate and highlights the challenges CRA faces each year in the legislature.
Upcoming Legislative Dates

Oct. 10, 2021: Deadline for Governor Newsom to act on bills sent to his desk
Jan. 1, 2022: Statutes take effect
Jan. 3, 2022: Legislature reconvenes for the second year of the 2021-2022 legislative session
Legislative Win: AB 654 Change of Position

This was a great outcome for CRA and our members. This was the Labor push to have worksites with COVID outbreaks listed on the Internet by location, which would have been terrible for stores that had COVID positive customers come through at the wrong time. The bill got bottled up in the Assembly so the author amended that provision out to instead include some genuine “clean-up” provisions that are helpful. CRA went from Oppose to Support. 
 
The bill passed the Senate 37-0 and, since it contains an urgency clause, takes effect immediately if signed into law by Governor Newsom.

Read the change of position letters here and here, also available on CRA's member portal.
AB 701 Sent to Governor's Desk

Assemblymember Lorena Gonzalez's AB 701 moved off the Senate Floor on a 26 Yes 11 No, mostly party-line vote and was sent to the Governor for signature or veto. Newsom has 30 days- until October 10- to take action on bills, even if he is recalled. We suspect Newsom will sign AB 701, but wait towards the end of the deadline to do so.

While CRA worked hard to kill the bill (read further down for a full recap of our public affairs effort to defeat AB 701) and, in doing so, secured a more "watered down" version, AB 701 is still a bad bill. Below is a description of amendments made in Senate Appropriations back in August along with the language. 

While the amendments made earlier in session delete the CalOSHA standard – a significant victory – the notice requirements in the bill got more onerous in that all employees must now be notified of quotas, there is an additional Labor Code requirement for employee access to bathroom facilities, which would be subject to PAGA, and a new enforcement section for the Labor Commissioner that includes, among other things, a report to the Legislature aimed at shaming companies with violations.

For those of our members in grocery, the amendments also exclude Farm Product Warehousing and storage. 

Read our coalition letter here, also available on CRA's member portal.
Solid Waste and Olive Oil

CRA opposed AB 478 (Ting), which dealt with recycling of thermoform plastic containers. The bill was held in Suspense and is dead for the year. Read CRA's opposition letter here.

CRA remained neutral on AB 535 (Aguiar-Curry), the olive oil labeling bill, which was enrolled. Read CRA's neutral letter here.
Veto Requets Sent to the Governor

  • AB 416 (Kalra) establishes the California Deforestation-Free Procurement Act as amended September 3, 2021 creating impossible reporting obligations for recycled products disincentivizing use. Read the veto request letter here.
  • AB 616 (Stone) is the latest incarnation of the UFW’s card check legislation, designed for the sole purpose of thwarting the secret ballot election process that has been at the core of the Agricultural Labor Relations Act (ALRA) since its inception. Read the veto request letter here.

All veto letters are available on CRA's member portal.
Public Affairs/Political Updates
FAIR PAY AND EMPLOYER RESPONSIBLITY ACT California PAGA Reform

PAGA (The Private Attorneys General Act of 2004) is an important issue to members of the California Retailers Association. It allows private attorneys to sue employers over regulatory enforcement issues related to labor, in place of enforcement by appropriate state agencies.
 
Over the past few months, the CRA team has participated in several conversations regarding PAGA reform and proactive actions the business community could take. As we begin to look at the 2022 election cycle, it is time to garner CRA member's interest in the association taking a leadership role in a possible ballot initiative campaign for the 2022 November General Election to reform PAGA.
  
We will be hosting a private briefing for CRA Members on Wednesday, September 22, 2021, at 11:00 am PT with the campaign team so CRA members can be briefed on the research, understand next steps and ask questions. 
 
RSVP IS REQUIRED! Please RSVP HERE to Ryan and he will forward you the zoom information. 

You can access background materials to review prior to the PAGA briefing:
 
 
This will be an expensive campaign and, should CRA engage, members will be asked to make a meaningful contribution to the CRA Issues Political Action Committee.
 
Please reach out to Rachel or Ryan with any questions.
CRA Leads the Fight Against AB 701

CRA continues to lead the effort to oppose Assemblymember Lorena Gonzalez's Warehouse bill- AB 701. The following is a snap shot of three week sprint.

CRA's President and CEO Rachel Michelin spoke with dozens of news outlets over the final three weeks of session addressing retailers' and the greater business community's concerns over the bill. In addition to interviews, the following statement was sent out:

“AB 701 impacts distribution centers across industries, and will increase the cost of living for all Californians, kill good-paying jobs and damage our fragile supply chain. Everything we buy and use moves through the manufacturing, storage, and distribution process. Whether it’s our food moving from the farm to fork or clothes from the thread to our closet, we will all pay the price for AB 701. California families can’t afford AB 701."

Media coverage included:


The coalition also secured op-eds and editorials in California's top tier media outlets including:

Op-eds:


Editorials:
(Los Angeles Daily News, The
*SCNG publications include: The Orange County Register, Press-Enterprise, Long-Beach Press-Telegram, Torrance, Daily Breeze, San Gabriel Valley Tribune, Whittier Daily News, Inland Valley Daily Bulletin, San Bernardino Sun, Pasadena Star-News, and The Redlands Facts

Legislative Outreach

Floor Alerts were distributed weekly and daily leading up to the Assembly and Senate Floor hearings:

  • Monday, August 30: Floor Alerts highlighting op-eds by Inland Empire Economic Partnership (link here) and California Hispanic Chambers of Commerce (link here)
  • Tuesday, August 31: Floor Alerts highlighting the coalition of nearly 50 organizations (link here) and the op-ed by the Los Angeles Area Chamber of Commerce (link here)
  • Wednesday, September 1: Floor Alert highlighting AB 701’s PAGA provisions and impact on farmers and small businesses (link here)
  • Thursday, September 2: A floor alert quoting coalition members (link here)
  • Tuesday, September 7: Floor Alert highlights how AB 701 will increase the cost of living, hurt the supply chain and unleash PAGA lawsuits (link here)
  • Wednesday, September 8: Floor Alert shares the California Auto Care Association’s op-ed (link here)
  • Thursday, September 9: Floor Alert highlights California’s current supply chain issues and how AB 701 would make it worse utilizing quotes from coalition members (link here)

Legislative Meetings held:

  • Senate pro tem Toni Atkins
  • Senator Bob Archuleta
  • Senator Patricia Bates
  • Senator Josh Becker
  • Senator Steven Bradford
  • Senator Bill Dodd
  • Senator Susan Talamantes Eggman
  • Senator Melissa Hurtado
  • Senator John Laird
  • Senator Mike McGuire
  • Senator Dr. Richard Pan
  • Senator Anthony Portantino
  • Senator Richard Roth
  • Senator Susan Rubio
  • Senate Appropriations Chief Consultant

Digital Advocacy included:

  • Sen. Portantino
Facebook/Instagram: Reached 3,768 members of Sen. Portantino’s online network
Display/rich-media: Reached 5,638 IDs
  • Sen. Bradford
Facebook/Instagram: Reached 2,707 members of Sen. Bradford’s online network
Display/rich-media: Reached 6,160 IDs
  • Capitol Insiders
Facebook/Instagram: Reached 7,726 members of this online network
Display/rich-media: Reached 16,000 IDs
  • Coalition Website: In just a few short weeks the No on AB 701 effort garnered over 1,400 visits to the website

Phone Calls:

  • Sen. Portantino: 50 calls completed/ 8 calls per day on average
  • Sen. Bradford: 51 calls completed/ 8 calls per day on average

Veto Push:

With the bill's passage, the effort now shifts to veto outreach where we are working with coalition members to send in veto letters to the Governor, along with an overarching NO on AB 701 coalition NASCAR letter.
Regulatory Updates
South Coast AQMD Warehouse ISR - Legal Update

The legal battle over the Warehouse ISR at SCAQMD has begun. Read the petition for an injunction filed in federal court by the CA Trucking Association. The petition asks for declaratory and injunctive relief on the bases that the ISR exceeds the district’s authority under both federal and state law, and that the “mitigation fee” is an illegal tax under the state constitution.  

We will continue to keep our members informed of developments as this case progresses.
Local Vaccine Mandates Update

CRA has been 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 successful.

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

Vaccine mandates are currently in place in the following areas: 
  • Palm Springs – Read order HERE
  • Cathedral City – Read order HERE
  • San Francisco – Read order
  • Berkeley – Read order HERE **includes all pharmacists must be fully vaccinated by Oct. 15
 
Approved and coming on-line soon: 
  • Contra Costa County – Read order HERE
  • West Hollywood – Read order HERE
 
Pending: 
  • City of Los Angeles – City has not agendized the item for a full vote; CRA continues to monitor
  • City of Millbrae 
 
Put on hold (for now)- 
  • Los Angeles County
  • City of Sacramento.
 
Who we are watching: 
  • Alameda County
CRA News and Activities
We wanted to take a moment and thank all of our member retailers throughout Los Angeles County for their continued efforts to prevent the spread of the virus putting their employees, consumers and communities they serve First! From the start of the pandemic California's retail industry has lead the charge in fighting this virus, implementing safety measures and proactively and voluntarily providing and distributing personal protective equipment.
CRA President and CEO Rachel Michelin Speaks with ABC7 News Addressing the Rise in Retail Theft.

Rachel: "CRA is trying to be as proactive as possible. California Governor Gavin Newsom signed legislation that we sponsored to tackle this issue. We were also able to secure funding in the state budget for the Organized Retail Task Force, but we are doing more. We are developing the Organized Retail Crime Association under the Cal Retailers’ umbrella. We are putting together subject matter experts to work with the legislature and local elected officials on how to combat this issue…."
CRA Joins Governor Gavin Newsom in Addressing Organized Retail Crime

California Retailers Association President and CEO Rachel Michelin issued the following statement after joining Governor Gavin Newsom in a press conference addressing the growing problem of Organized Retail Crime.

"CRA applauds Governor Gavin Newsom for working with the California Retailers Association in extending the state's Organized Retail Crime Task Force for years to come with his signing of AB 331 this morning and recent ORC budget appropriation...."
CRA Joins Annual CISRA Conference and Moderates a Panel on "Tough Conversations: Fostering Successful Collaboration from Opposing Viewpoints"

Collaboration and compromises are becoming increasingly difficult in today's climate. From business to politics, it's clear that strong leadership and a willingness to listen are critical skills for fostering collaboration, especially from opposing viewpoints. The panel, moderated by CRA's President and CEO Rachel Michelin, explored the art of leading difficult conversations to bring everyone to the table to solve big challenges and issues. The discussion drew upon real world examples in business, politics and the NGO community who have mastered the skills necessary to drive positive change by bringing many viewpoints together.
CRA President and CEO Speaks with California Groundbreakers Podcast About the Latest Retail Trends.

The pandemic has changed the concept of physical stores – do we still need them, what’s their purpose now, and how should they change to stay relevant? And what about the stuff we buy – do we need to have the same things we bought before the pandemic, and do we still need to shop for so much of it?

This episode features two retail experts who speak about how the coronavirus has shaken up the industry, how consumer spending habits are shifting and what shopping will look like in the future.

Rachel joined David Fishbein, co-founder of the Runyon Group, a real-estate development firm in Los Angeles that owns, creates and manages new types of shopping hubs.

California Groundbreakers is a civic-minded, community-focused organization putting together moderated panels, interviews, discussions and events focused on cool people doing groundbreaking things and possibly causing earth-shattering change in California and beyond.
CRA Events
Nominations are open for CRA Board of Directors- Vote to be Held During Upcoming Virtual Annual Meeting

Per the CRA bylaws, all current CRA members are eligible to serve on the board of directors. Members can nominate themselves or someone they feel is qualified to be part of CRA's leadership team. 
  • A member must be in good standing; dues must be current
  • Board members serve a three year term
  • Board meetings are held via zoom once a quarter with a possible in person organizational meeting during Q1 in 2022 (pending health orders)
  • Executive Committee is nominated and voted on by the newly elected Board of Directors

Learn more about the CRA Elections Process HERE.

** Nominations are due by September 30, 2021

On October 29, 2021 CRA will host our 2021 Annual Membership Meeting virtually. More information and the registration link will be sent soon.

Meeting topics include:
  • CRA board of directors election
  • Legislative/Regulatory update
  • Organized Retail Crime
  • COVID update
  • Opportunity for members to share priorities for CRA to focus on during the next legislative session

If you have any questions or need additional information, please do not hesitate to reach out via email HERE.
CRA Member Highlights
Target, Walmart, Home Depot and Amazon are Among a Growing Number of Retailers Investing in California's Workforce
Target announced a plan to pay 100% of college tuition and textbooks to attract workers. The company is rolling out a new education program that will cover the cost of associate and undergraduate degrees at select schools. It also will help pay for graduate school costs. Employees at stores, distribution centers and headquarters locations in the U.S. will qualify on their first day. Target will cover the full cost for 250 programs aligned to its business, such as computer science, information technology and business management. If an employee chooses a different specialty or seeks a graduate degree, Target will pay up to $5,250 for non-master’s degrees and up to $10,000 for master’s degrees each year in direct payments to the academic institution. Target plans to invest $200 million in the education program over the next four years.
In similar announcemets, Amazon is investing $1.2 Billion for its employees to attend college and Walmart and Home Depot are providing tuition reimbursement programs and college fund assistance programs. Walmart is removing all costs related to its employee college tuition program, totaling $1 billion over the next five years to cover the full price of tuition and books for approx. 1.5 million employees. The goal is to remove “the barriers that too often keep adult worker learners from obtaining degrees.”
CRA Partner Events
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 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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