Winter Newsletter
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February 07, 2022 | First CRA Newsletter of the New Year
Message from the President
Your California Retailers Association is off to a strong start for 2022. As we look to the next few months ahead, we will be busy. Here is what we are watching:

  • Potential Vaccine Mandate
  • CalOSHA ETS and what becomes permanent
  • The Governor’s announcement on his “endemic plans”
  • Supply Chain and Goods Movement
  • Retail Theft and ORC (look for an exciting CRA announcement on this issue soon)
  • Predictive Scheduling
  • Environmental Sustainability issues
  • Privacy

I cannot stress strong enough how important your company’s voice matters and I encourage subject matter experts to engage in our committees and work groups.

In addition, CRA is actively following the political landscape in California (more in the newsletter below). Lots of changes at the state and local level, in addition to congressional races and statewide campaigns. We also have a full ballot of initiatives that we are tracking. If you are not engaged in our political committee, I encourage you to engage. Many folks who start in California polices end up in Washington, D.C. as Speakers, Minority leaders or even Vice President! By engaging with CRA’s political committee you can invest in relationships now.

As always, do not hesitate to reach out if you have any questions or need additional information on issues in California.

Rachel
Legislative, Budget & Political Updates
Legislative Update

Monday, January 31st was the constitutional deadline for all measures introduced in the prior year to advance out of the first house. Among the measures considered, a CRA-supported measure to enhance transparency on online marketplaces advanced as well as a gender-pricing or “pink tax” measure, which CRA has remained neutral. We were successful in halting measures to expand mandatory paid sick leave from three days to five and in halting a single-payer healthcare bill that would have led to massive tax increases including payroll, income and a gross receipts tax.
 
CRA-Supported Measures Advancing to the Assembly
SB 301 (Skinner) SUPPORT. This measure, patterned after the INFORM Act proposal in the U.S. House of Representatives, passed with unanimous support from the committee. It will require online marketplaces to include verified contact information for third-party sellers with product listings. SB 301 moves to the Senate Floor with zero No votes so far. CRA sent a floor alert urging a yes vote on the bill. Read the letter here, also available on CRA's member portal. The Prosecutors Alliance also shared their support for the bill via Instagram.
 
Measures of Concern to Retailers Advancing to the Assembly
AB 1287 (Bauer-Kahan) NEUTRAL. The Legislature’s latest gender-pricing or “pink tax” measure advanced to the Assembly Floor with no amendments. We had anticipated possible amendments from the committee that would boost fines under the bill, but ultimately none were adopted. CRA has been actively engaged in conversations with the author on this bill, and as it is tailored to match the New York statute and contains no private right of action, we remain neutral.  
 
AB 1067 (Ting) NO POSITION. This is a “spot bill” related to the issue of beverage container recycling. Assemblymember Ting is hoping to pull together stakeholders in an effort to reform the state’s “Bottle Bill” program that would include relief for retailers from the increasing pressure of store take-back requirements in the wake of the collapsing domestic market for recycled cans and bottles. CRA has taken no position on the bill yet, but will continue to engage with this author and others in the hope of obtaining relief for increasingly burdened grocery, pharmacy, and other retailers covered under the program.
 
CRA-Opposed Measures That Failed in the Assembly
AB 1119 (Wicks) OPPOSE.  This measure would have added any individual with “family responsibilities” as a protected class under the Fair Employment and Housing Act (FEHA). The bill also would have required reasonable accommodation of such employees, potentially including additional time off requests and unexpected schedule changes. These requirements would have been subject to FEHA’s private right of action for enforcement.  
 
AB 95 (Low) OPPOSE. As written this bill would have required employers to grant paid time off for bereavement leave up to 10 days. The author had agreed to amend the bill to make those days unpaid and to remove the bill from the Labor Code to avoid PAGA implications. It is our understanding that he will introduce a new bill on this topic next month.

AB 1400 (Kalra) OPPOSE. This measure establishes a $400+ billion system of state-run health care, replacing all private health insurance and financed by substantial increases in payroll and income taxes as well as a 2.3% gross receipts tax, which would be devastating for low-margin industries like retail. Currently 94% of Californians have health coverage and a majority of the remaining uninsured are undocumented adults who would be eligible for Medi-Cal under Governor Newsom’s Budget. Read the opposition letter CRA sent to the Appropriations committee here, also available on CRA's member portal.
CRA Coalition Opportunity on Organized Retail Theft in the Governor's Budget

The CRA team has circulated a draft coalition letter to our members in support of the Governor’s budget proposals on organized retail theft. The Budget includes an unprecedented $100+ million over the next three fiscal years to disrupt organized theft rings through enhanced enforcement efforts. 

If CRA member companies are interested in joining us in supporting this package, please forward organization logos to Ryan Allain at ryan@calretailers.com.   
New Theft-Related Bills

Assemblymember Brian Maienschein has introduced three bills on Organized Retail Crime and package theft. CRA has not taken a position yet on these bills and many other related to retail theft. Want to be part of the conversation? Join our Legislative Committee today!

AB 1698 creates an “organized package theft” statute almost identical to the existing statute on organized retail theft, even with the 2026 sunset. This is the approach that Jones-Sawyer favored in his feud with Evan Low over package theft (Low wanted felony penalties for repeat offenders) that is the reason why we don’t have a specific package theft law yet. 

AB 1699 adds a point to the driving record of any driver involved in the commission of organized retail theft or organized package theft.

AB 1700 requires the Attorney General to set up a website for reports of items found on online marketplaces that are suspected to be stolen goods, and requires the AG to report those to local authorities.
The Great ReShuffle

Here is the latest updates on the rapid reshuffling of legislative offices underway.

  • Senator Mike McGuire is the new Senate Majority Leader, succeeding Senator Robert Hertzberg who is now running for Los Angeles County Board of Supervisors
  • Senator Susan Talamantes Eggman succeeds McGuire as Assistant Senate Majority Leader.
  • Senators Bob Hertzberg and Henry Stern and Assemblymember Richard Bloom are running for the Los Angeles County Board of Supervisors to replace Supervisor Sheila Kuehl
  • Assemblymember Lorena Gonzalez, Chair of the Approrpiations Committee, resigned to lead the California Labor Federation. Assemblymember Chris Holden replaces her as Chair
  • Assemblymember Adam Gray is running for the newly drawn Congressional District 13
  • Assemblymember Jordan Cunningham, will not seek reelection
  • Senator Andreas Borgeas will not seek reelection
  • Senator Sydney Kamlager is running for Congress.
  • Assemblymember Chad Mayes will not seek reelection.
  • Assemblymember Patrick O'Donnell will not seek relection.
  • Assemblymember Autumn Burke resigned.
  • Senator Connie Leyva will not seek reelection and is instead running for San Bernardino County Board of Supervisors.
  • Click here to view Assembly committee changes announced by Speaker Anthony Rendon.

CA Congressional Delegation

  • Rep. Jerry McNerney (CA-09) is not seeking reelection
  • Rep. Josh Harder (CA-10) will run in McNerney’s newly redrawn district, instead of the seat he had originally planned to run for and for which Democratic Assemblymember Adam Gray of Merced announced his candidacy.
  • Rep. David Valadao (CA-21) will run for reelectionin a newly redrawn, and increasingly Democratic, congressional district.
  • Former Assembly Republican Leader Connie Conway is running to finish Rep. Devin Nunes' (CA-22) term. Nunes resigned his seat to run former President Donald Trump's media startup.

Local

  • The City of San Francisco will hold a primary election on Feb. 15 for candidates running to replace former Assemblymember David Chiu, who stepped down to become San Francisco’s city attorney and for city assessor-recorder. Feb. 15 is also the recall election for three San Francisco school board members.
  • Palm Springs City Councilmember Christy Holstege has announced plans to run for Asm. Chad Mayes’ seat. 

All of this reshuffling means California’s 120-member Legislature will include at least 25 new lawmakers after the November election and more changes are likely, as candidates have until mid-March to declare their plans. 
Paid Sick Leave

Governor Newsom and legislative leaders announced a framework to extend supplemental paid sick leave through September 30, 2022. That measure is now in print and the Legislature is expected to pass the measure this week.
 
Ultimately, CRA will not be able to stop this bill. We are, however, educating lawmakers on the onerous nature of this measure in the context of existing, costly pandemic-related mandates on retailers such as the CalOSHA ETS exclusion pay requirements as well as testing and test proctoring challenges. 

Click here to view the COVID Supplemental Sick Leave bill now in print.

Click here to view the Opposition Coalition's floor alert. The bill we be brought up by both houses this week.
Statewide Vaccine Mandate Proposal

A bill introduced by Senator Richard Pan- the Keep Schools Open and Safe Act- would supersede Governor Newsom’s student COVID-19 vaccine mandate by requiring all kids in K-12 to get the shot by Jan. 1, 2023.

The CRA team has concerns about the California Consumer Privacy Act in the current language and are keeping an eye on the bill, but not engaging for now. It is unclear how far it will go given current political will and the difficulty with enforcement if passed. CRA will continue to support COVID-19 vaccine efforts overall.

Click here to read the bill language.
CRA Releases Statement in Response to Governor Newsom’s
2022 State Budget Proposal

President and CEO Rachel Michelin: “On behalf of retailers across California, I want to thank Governor Newsom for his commitment to addressing the growing problem of organized retail crime (ORC) in his budget.

“ORC is on the rise across the country and California is one of the hardest-hit states. There is no simple solution for reversing this trend, but the Governor’s retail theft Budget package is a big first step toward eliminating ORC that has victimized our employees, customers, and the communities we serve.


Unemployment Insurance Fund Relief Budget Push Update

Governor Newsom's proposed 2022 state budget includes $3 billion for the UI Fund, in the form of $1 billion this year, and $2 billion next year to pay down the debt. This is a proposal of direct spending and is significantly higher than last year's $1.1billion proposal from the Governor's Office. The effort now shifts to lobbying on the legislative side. See page 209 for the most important excerpts on this point of the budget summary, available here.
 
If last year is any indication, the issue will be the legislature attempting to lessen this amount or change it to a specified-businesses-only tax credit spread over a longer period.
 
For context: the present best estimate of fraud's contribution to the UI Fund is $1.3 billion, per EDD in December of 2021, so the proposed $3 billion would cover the fraud and also cover about $1.7 billion of the $19.7 billion outstanding debt, which can be monitored here.
Upcoming Key Legislative Dates

  • Feb. 18 Last day for bill introductions
  • April 7 - 18 Spring Recess
  • June 15 State Budget Due
  • July 1 - Aug 1 Summer Recess
  • August 31 Adjournment
Local District Attorney Recalls

San Francisco District Attorney Chesa Boudin faces a recall election on June 7 and a recall effort against Los Angeles District Attorney George Gascon qualified for the ballot.

CRA is monitoring both of these developments in addition to other key local races throughout the state, including the race for Mayor of LA.

Join our Political Committee and be the first to know political developments at the local and state level.
Ballot Measures, Candidates and Election Date Updates

The statewide primary date will be held on June 7 and will coincide with the special general election for CD 22, AD 11 and AD 80 to fill vacancies resulting from the resignations of Rep. Devin Nunes, Asm. Jim Frazier and Asm. Lorena Gonzalez.

The primary for special elections will be held April 5, which now includes AD 62 to fill the vacancy created by the resignation of former Asm. Autumn Burke.

Two special elections will be held Feb. 15 (and another two on April 5) to fill empty seats in the state Legislature. 

Click here to view a crowdsourced candidate tracker.

Click here to read the latest on the statewide initiatives vying for the 2022 ballot.
Regulatory Updates
CCPA and Loyalty Programs

Attorney General Rob Bonta announced that his office is doing an “investigative sweep” of business that operate loyalty programs to ensure compliance with the CCPA.

Read the announcement here.
Cal/OSHA Update

The second Readopted ETS took effect on January 14 and CalOSHA has issued a revised set of FAQ’s to clarify the new requirements for exclusion of COVID cases and close contacts based on the new CDC guidance and CDPH order. Access those FAQ’s here and click on “CDPH Isolation and Quarantine Section”. CRA members should review these if they have not already.

One issue to note: despite no mention of social distancing in either the CDC recommendations or the CDPH order, CalOSHA is retaining a social distancing requirement in the case of boosted close contacts who cannot obtain a test or otherwise do not test by Day 5 after exposure.
  1. Q: What if tests cannot be obtained following a close contact?
  2. A: If employees covered by Table 2 cannot be tested as required, quarantine must continue for at least 10 days as explained in the table. If employees covered by Table 3 cannot be tested on day 5, employers should follow the ETS. For vaccinated close contacts, as of January 14, 2022, that means wearing a face covering and maintaining six feet of distance for 14 days following the close contact.(emphasis added)

Once again, the biggest news is on the federal level with the reinstatement of the stay on the OSHA vaccine mandate. For us in California, that means CalOSHA’s governing board will not adopt a conforming state-level mandate as had been planned. The CRA team will stay tuned along with everybody else.

Reach out to Steve with any questions.
Supply Chain Update

CRA signed onto a letter from a group of port users and the ports of Long Beach and Los Angeles requesting expedited consideration of the West Coast Marine Terminals’ filing for the extension of the temporary adjustment to the Traffic Mitigation Fee (TMF).

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

CRA has requested Governor Newsom appoint a Cabinet-level advisor who can coordinate state efforts to streamline goods movement and convene stakeholders to address near-term and medium-term issues at the ports include trucking, rail and warehouses struggling with worker shortages, capacity limitations, cargo theft and other challenges.

Read the letter here, also available on CRA's member portal. The letter was shared on CRA's social media channels including Facebook, Linkedin, Twitter and Instagram.
Prop. 65 Short Form Rulemaking

CRA sent a letter to the Office of Environmental Health Hazard Assessment with comments to modification of text Title 27, California Code of regulations Proposed Amendments to Article 6 Clear and Reasonable Warnings - Short Form dated December 17, 2021.

Read the letter here, also available on CRA's member portal.
Portable Luminaires -
Title 20 revisions

The CRA team received some positive news from Energy Commission staff: staff has begun preliminary scoping work on the portable luminaires Title 20 rulemaking with the goal of presenting to the Commission for approval in March or April. At that point, the revised rule would be put out for a 45-day comment period and as long as all goes well, they would hope to complete by early summer.

This is a big development as many of CRA's members have been waiting years for a change that will remove the requirement to include a “bulb in the box” with any portable luminaire available for purchase in California. We will continue to keep members apprised of any additional developments or needs during this process.
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 – Revised their ordinance to include booster shots. Businesses have until 2/7/22 to comply with the revision. 
  • 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
County of San Francisco Public Health Emergency Leave

CRA joined San Francisco business associations in submitting a letter to the San Francisco County Board of Supervisors requesting that the Rules Committee postpone consideration of File # 220022 - The Public Health Emergency Leave measure so that the proposal can have more input from the employer community.

Read the letter here, also available on CRA's member portal.
Fire Safe Regulations

CRA joined a coalition of California Home Builders and Businesses in a draft letter with supplemental comments on the Board of Forestry’s proposed Fire Safe Regulations. The letter highlights the coalition's concern that the current draft Fire Safe Regulations undermine the Governor’s efforts to solve the housing crisis by preventing the construction of new fire safe homes and that prior comments submitted by the coalition have not been addressed. The unintended consequences of the current regulations will harm housing production without a commensurate fire safety benefit.

Read the draft letter here, also available on CRA's member portal.
City of Encinitas Proposal to Ban Helium Balloons

The CRA-lead coalition Californians for Environmental Responsibility, a broad coalition representing social justice organizations, small businesses and minority chambers of commerce among others, sent a letter to the Encinitas City Council requesting their no vote on a proposed ordinance prohibiting the sale of lighter-than-air balloons. The letter included a compromise of including a restriction for balloons on beaches as a sensible alternative to an outright ban.

Read the letter here, also available on CRA's member portal.
Prop. 12 Enforcement Delayed

A lawsuit filed by business groups, including CRA, was successful in delaying the enforcement for part of a new law that would have caused price hikes and supply shortages for bacon and other fresh pork products throughout the state. The law, which took effect on January 1, was created by a 2018 ballot measure- Proposition 12.

Click here to view the complaint.

Read more about Prop. 12 here.

News coverage regarding this lawsuit is included in the section that follows.
CRA In The News
The California Retailers Association is going to be featured in an upcoming issue of Business View Magazine. The 6-8 page feature is going to be the keynote feature for the Innovation, Pivots, Development & Growth; California Retail Throughout Covid series.

There is an opportunity for CRA member companies to be featured within this series at no cost to you or the association.

We have been working with one of their research directors, Mike Luchetta, who will be conducting preliminary (off the record) interviews with businesses to determine who they will move forward with.

Business View Magazine is a global leader in multi-platform Business to business profiles, news and opinion with more than 840,000 subscribers across North America. To view a current issue please visit their website at www.businessviewmagazine.com.

If interested, feel free to reach out directly to Mike Luchetta of Business View Magazine at 239-309-0368 ext. 407 or via email at mike@businessviewmagazine.com for additional information. 

We look forward to shining a light on all things retail for 2022!

Check out below the latest round of media mentions for CRA since our last newsletter was published.
In Case You Missed It...

ORGANIZED RETAIL CRIME

Police shootings, deadly road rage trial and a free pass for shoplifters?
Dan Abrams Live on NewsNation Now

Region sees uptick in retail crime
Pacific Coast Business Times

Editorial: Our View: It’s time to take retail crime seriously
Pacific Coast Business Times

SB 301 Dealing with Retail Theft Rings, Passes Senate on a 34-0 Vote
The Davis Vanguard

States Want Online Marketplaces to Police for Stolen Goods
CPA Practice Advisor

California Retailers Association Releases Statement in Response to Governor Newsom’s 2022 State Budget Proposal
Los Angeles Post

PORK/PROP. 12

California judge delays enforcement of part of new bacon law
Associated Press
Also appeared in:

California grocers win brief reprieve from new bacon law
Courthouse News Service

Prop 12 Enforcement Delayed for Some Stakeholders
The National Law Review

Court Issues a Stay of Enforcement for Proposition 12 Provisions
AgNet West

California Judge Rules Prop. 12 Enforcement Should Be Temporarily Halted on Whole Pork Sales
Successful Farming

No bacon in California? Restaurants, grocers try to make sense of new pork-products law
The Fresno Bee

California Restaurants are Spared a Possible Pork Shortage—at Least for Now
Restaurant Business Magazine

Calif. Court Halts Prop 12 Enforcement
Progressive Farmer

SUPPLY CHAIN

What’s really going on with empty grocery store shelves in the Bay Area?
San Francisco Chronicle

BALLOONS

Encinitas may ban helium-filled balloons
ABC 10 San Diego

Encinitas to consider banning helium balloons
Encinitas Advocate

COVID-19

CRA President and CEO Rachel Michelin Speaks with CBS Los Angeles Addressing the Impact of the Latest COVID-19 Surge on Small Business Owners
CBS Los Angeles

Here’s how San Francisco North Bay businesses are tackling the omicron threat
The North Bay Business Journal

OTHER TOPICS

California Retailers Association CEO Discusses Results of Holiday Shopping Season KTXL Fox 40 Sacramento
CRA Outreach & Activities
CRA Announces 2022 Board of Directors

The CRA team welcomes new and returning members to the 2022 Board of Directors. CRA will be busy this year advocating for the retail industry in California by tackling ongoing challenges facing our state and nation’s business economy including Organized Retail Crime, supply chain disruptions, environmental sustainability and COVID-19. With the support of this board, we look forward to working with the Governor’s Administration, state, and local policymakers and other stakeholders on issues important to California’s consumers, economy, and workforce.

Officers:

Nick Johnson, Target (Chair)
Larry Carr, Albertson's/Safeway (Vice-Chair)
Chelsea Minor, Raley's
Cindy Laubacher, CVS Health 
Francisco Uribe, The Home Depot

Executive Committee:

Dan Lopez, Best Buy
Jonathan Choi, DART Container Corp.
Blair Reinarman, Gap Inc.
Steve Thomas, Kohl's
Chuck Miller, Macy’s
Joel Baise, Walgreens
Danielle Hohos, Williams Sonoma
Kevin Loscotoff, Walmart

Directors:
Brenda Palomino, Amazon 
Tom Tucker, Autocare Association
David McKinney, AutoZone
David Sherwood, Daniel's Jewelers
Stephenie Shah, Diageo
Meredith Preloh, Lowe's
Fran Inman, Majestic Realty Group
Lupe de la Cruz, PepsiCo
Jermaine Smith, Rite Aid
Michael Diamond, Scotts Miracle Grow
Kent Kauss, Sempra Utilities
Stephanie Sheridan, Steptoe & Johnson LLP
Kent Knutson, Tractor Supply Company
CRA is working with the California Highway Patrol to share Organized Retail Crime busts on social media and other communications channels to highlight the work of the statewide task force.
Monthly Policy Calls Return
The CRA team held its first monthly policy call of 2022 with the association's policy call committee. The following includes the planned 2022 monthly policy call calendar covering this year's legislative session (dates are subject to change). For CRA members' designated contacts who are not regularly receiving these policy call reminders and calendar invites, please email cra@calretailers.com to be added moving forward. Policy calls are held on Fridays at 10:00am PT.

  • February 25
  • March 25
  • April 22
  • May 27
  • June 24
  • August 26
  • September 23
Last Call to Join a CRA Committee, Task Force or Work Group for 2022
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.
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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