CRA Member Newsletter- July 2023

CRA Member Newsletter

July 24, 2023 | CRA Newsletter: Legislative, Budget, Regulatory, Local, Political & Other Updates

Message from the President

For the next few weeks, all is calm at the State Capitol as we are on summer break. As we digest what bills we will focus on at the end of the session push, we will also strategize how to best advocate for our members prior to the September 14^th end of session deadline.

I was thrilled to be appointed by Governor Newsom and CalRecycle to the SB 54 Advisory Committee. CRA is one of only two business associations on this committee, which gives CRA members the unique opportunity to ensure the retail perspective is considered as we begin the process of implementing SB 54. CRA's leadership on issues such as EPR and the circular economy was on display as we were able to convince Senator Josh Newman to hold his textile EPR bill (SB 707) to work with CRA members on language. I hope you will take advantage of the opportunity to join Senator Newman at our EPR work session which is part of our 2023 annual meeting in October - more info on that below.

When the legislature reconvenes in August it will be full speed ahead and the CRA team will continue to work on issues important to our members such as workplace violence, retail theft, receipt bans, corporate climate reporting, labor and other issues important to our members.

As always if you have questions or input on any issues going through the legislative process do not hesitate to reach out to the CRA team.

Rachel

In this Issue:

Legislative Updates
Regulatory Updates
CA Community Pharmacy Coalition Updates
CRA Outreach and Activities
CRA In The News
Cal-ORCA Updates
CRA Member Portal

Legislative Updates

All legislative advocacy letters are available on CRA's member portal. Access the portal here.

"Workplace Violence" Legislation Update

SB 553 (Cortese), passed out of the Senate and is now in the Assembly for second house policy committee review. This was not unexpected given the extreme uphill challenge we faced in light of the sympathetic topic (workplace violence) and super democratic majority. With the bill in the second house, we will need to work hard and quickly forewarn potential committee votes of our concerns. Despite its passage, CRA, along with a large business coalition, worked hard to spread the word on this bad bill, which has set us up for a strong opposition effort moving forward. Read CRA's opposition letter here and the coalition opposition letter here.

Additionally, CRA has leveraged our credibility with media as a go-to resource on the crime issue to talk about the impacts of this bill with prominent news outlets. Keep reading to see news coverage on this issue.

Other Priority Legislation Updates

The CRA team secured a win on SB 478 (Dodd) getting clarification in the bill that postage or carriage charges that will be reasonably and actually incurred to ship the physical good to the consumer will be excluded from the bill. This language was accepted in the Assembly Committee on Privacy and Consumer Protection.

AB 660 (Irwin) was held in committee and will not move this year. As the bill can still be acted upon next year, the CRA team will be continuing to engage with the author's office.

CRA secured amendments to AB 1286 (Haney) that include closure language that CRA successfully negotiated with the author. With these amendments, all of the closure language contained in AB 1286 will be modified or removed.

CRA continues to be one of the lead opponents to AB 1347 (Ting), the receipts bill. Unfortunately, the Senate Environmental Quality Committee recommended an increase in the penalty from up to $100 per day to $3,000 for businesses that make more than $2 million. The committee also took out the requirement that the penalty be assessed after a violation occurs three times. We will continue to work this bill hard leading up to the Suspense File hearing in August.

AB 1228 (Holden) was removed from policy committee by the proponents of the bill. We anticipate AB 1228 will come before the Senate Judiciary Committee again in August. CRA will continue to keep members updated on opposition efforts.

CRA, along with the California Restaurant Association and Western Growers, issued a statement in response to the State Legislature's attempt to circumvent the Fast Act Referendum by resurrecting the Industrial Welfare Commission. Read more here.

The new Assembly Speaker Robert Rivas announced committee changes. Read the updates here.

Litigation Funding Transparency Act

CRA submitted a letter to Rep. Darrell Issa in support of the federal Litigation Funding Transparency Act (LFTA). In recent years, our country’s civil litigation system has suffered due to the growing influence of the third-party litigation funding industry. These unknown big money financiers have used this system to further grow their corporate profits by fleecing plaintiffs and in turn, increasing costs on businesses and consumers. To oppose these efforts, CRA urges federal lawmakers to enact the LFTA into law to reveal who is crippling our justice system.

Textile EPR Legislation Update

Following many personal conversations CRA President Rachel Michelin had with Senator Newman over the past few months, the CRA Team is happy to report that SB 707 related to textile EPR is now a "two-year bill." That means the bill will be taken up in January of 2024 - allowing us time to continue to work with the author on bill language.

Michelin personally committed to the Senator that CRA will have an active role in these conversations. To that end, there are two important meetings with the Senator that CRA members are encouraged to participate in:

Zoom with the Senator on Monday, August 21, 2024, at 11 am PT. If you are interested in joining, please email Rachel and she will forward the zoom link.
Senator Newman will be joining CRA at our Annual Meeting October 1 - 3, 2023 in Irvine California. CRA will be hosting a specific EPR working meeting with the Senator on Monday October 2nd. Continue reading this newsletter for more information.

Prop. 47 Review Request

For over two years, the California Retailers Association has pushed the State Legislature to take a more active role in examining Proposition 47 and its impact on retail theft/organized retail crime. CRA's President and CEO Rachel Michelin has taken this message to the California and national media markets advocating that California needs to "Fix Proposition 47" and the language specific to retail theft.

CRA led the policy debate in the State Legislature for the past two years by sponsoring legislation to "Fix 47" which included AB 2390 and AB 1708- two legislative proposals authored by Assemblymember Al Muratsuchi and sponsored by CRA that tried to address the problem retailers are facing with repeat offenders. Both failed to pass out of the Assembly Public Safety Committee.

BUT, due to the diligence of the CRA team and the visibility via local and national media, 66 members of the California Legislature, including members of both parties, submitted a letter requesting the Little Hoover Commission "investigate retail theft, shoplifting and organized retail theft in California and publish a report detailing its findings."

To read more about the specifics of the request made in the letter and to download the letter click here.

Infrastructure Budget Package

Governor Gavin Newsom signed his infrastructure streamlining package that will accelerate critical infrastructure projects and help California achieve its world-leading climate and clean energy goals. CRA supported this package.

Legislative Deadlines

Monday, August 14 - Legislature reconvenes from Summer Recess
Friday, September 1 - Last day for fiscal committees to meet and report bills
Monday, September 4 - Labor Day
Tuesday, Sept. 5 - Thurs. Sept. 14 - Floor session only. Only Rules and Conference committees can meet
Friday, September 8 - Last day to amend on the Floor
Thursday, September 14 - Last day to pass bills; Interim Recess begins upon adjournment
October 14 - Last day for Governor to sign or veto bills

Regulatory Updates

All regulatory advocacy letters are available on CRA's member portal. Access the portal here.

CalRecycle Updates

SB 54 Updates

CRA President and CEO Rachel Michelin was named to the inaugural Plastic Pollution Prevention and Packaging Producer Responsibility (SB 54) Advisory Board. Read the announcement here. View the entire list of board members here.

On June 28-29, 2023, CalRecycle hosted informal rulemaking workshops on the topics of recyclability and compostability

determinations, the covered material category list, impacts on local jurisdictions and individual compliance for producers, small retailers and wholesalers. Get the discussion documents, workshop presentation slides and information on additional upcoming workshops here. Get the CRA team's recaps of the two June workshops here and here.

CalRecycle's next set of informal public workshops for SB 54 will be held on July 24 and July 25. The July 24 workshop (agenda available here) will focus on the following topics: Recycling Rate; Compostable Items; Definition of Reusable/Refillable; Definition of Producer; Producer Responsibility Plan; Data Reporting in Documents. The July 25 workshop (agenda available here) will include: Update on Needs Assessment; Ecomodulation; Advisory Board; Enforcement.

Discussion documents for the July workshops discussion are now available. To review workshop concepts in advance of the workshops click here and scroll down to SB 54 upcoming events. The purpose of these documents is to provide interested parties with an overall outline of what is going to be discussed, and the specific feedback that CalRecycle plans on soliciting from workshop participants and in written public comments. The needs assessment topic will provide high-level background on the needs assessment, updates on the proposed timeline and process for developing the needs assessment since the February Informational Session and information on opportunities for future engagement.

SB 1013 Updates

CalRecycle announced the publication of the Glass Market Development (GMD) Payment Program instructions and related forms. The claims are quarterly with the first claim period for July 1, 2023 – September 30, 2023 and due November 10, 2023. Get more information including the GMD payment program instructions, related forms and eligibility to claim GMD payments here.

Prop. 12 (Pork) Update

Following a series of discussions the CRA team was involved in regarding possible ways to ease the transition when the Prop. 12 stay expired on July 1, the State proposed a partial solution through settlement communication. A draft stipulation was jointly filed with the court by the State and plaintiffs and signed by the court to allow a six month delay in enforcement for products already in possession of retailers (end users). However, all noncompliant product still in possession on January 1, 2024 would need to be removed and disposed of or risk a lawsuit. Read the joint stipulation that was signed by the court here.

Additionally, the CRA team participated in a series of workshops hosted by the California Department of Food and Agriculture's Animal Care Program, which is charged with implementing Prop. 12. Access the recaps below.

Enviro Justice Org Wants to Sue Warehouses to Enforce South Coast AQMD's Warehouse Indirect Source Rule

Two years ago the South Coast Air Quality Management District (“SCAQMD”) adopted its Warehouse Indirect Source Rule – Rule 2305. The rule requires warehouse operators to account for truck trips to and from their facilities and mitigate the resulting diesel exhaust emissions, including by paying a mitigation fee to the SCQAMD.

On July 19, 2023, the Center for Community Action and Environmental Justice (“CCAEJ”), an environmental justice organization from Riverside County, filed a lawsuit in federal court against the United States Environmental Protection Agency (“US EPA”) to compel the US EPA to approve Rule 2305.

The lawsuit signals CCAEJ’s intent to make Rule 2305 enforceable by citizen suits under the federal Clean Air Act. Section 304 of the Clean Air Act allows any person to file a citizen’s lawsuit in federal court against any person alleged to be in violation of the Clean Air Act or of any rule or permit issued under the authority of the Clean Air Act.

Presently, Rule 2305 is enforceable only by the SCAQMD. If the US EPA approves the rule as part of California’s state implementation plan, however, anyone affected by a warehouse facility’s indirect diesel exhaust emissions will be able to file a federal lawsuit to enforce the rule.

Meanwhile, the SCAQMD will be holding a public meeting on July 27 to discuss how it will make each warehouse’s compliance data publicly accessible on the SCAQMD website.

These developments foretell future enforcement lawsuits by local warehouse opponents. Warehouse owners and operators should take note and confirm their compliance with Rule 2305.

Labor Negotiations Between UPS and the International Brotherhood of Teamsters

CRA joined over 200 organizations in signing on to the U.S. Chamber's coalition letter encouraging the Biden Administration to help prevent a strike by the International Brotherhood of Teamsters as their labor contract negotiations with UPS continue. Read the letter here.

CCPA/Privacy Updates

CCPA Enforcement

California Attorney General Bonta announced another “investigative sweep” through inquiry letters sent to California employers. In the letters, information on California Consumer Privacy Act (CCPA) compliance is requested specifically with respect to the personal information of employees and job applicants making it clear that full CCPA compliance by employers is expected. Read more.

Privacy Agency Must Wait to Enforce Rules

The Sacramento court ruled in our favor and the relief requested was granted, suspending implementation of the regulations for 12 months, consistent with the voters’ intent. There will be a couple modifications made to the order: one of which clarifies that the 2018 law and prior regulations remain in effect/fully enforceable – which we fully expected was the case and never sought to alter. The other modification clarifies that the order applies only to regulations that were required by Prop 24. Read more here.

Small Containers of Automotive Refrigerant Regs Update

The California Air Resources Board has scheduled a public hearing on October 26 to consider approving for adoption the proposed amendments to the Regulation for Small Containers of Automotive Refrigerant.

Get more information on these regs here.

CalOSHA Updates

Cal/OSHA recently met and CRA is providing the following updates:

Silica Dust

There is an Emergency Regulation Coming! The Board voted to have an emergency regulation related to Silica drafted. This means we can expect an advisory committee to be set up in August, and a potential vote in October, with something in effect by the end of the year. Read more.

Lead Regulation Revision

Business groups spoke during this section of the meeting giving thanks to the regulatory body for some of the recent 15-day change issues. Notably, some specifics raised were:

Though amendments (including re-adding feasibility as a limitation in one provision) were appreciated, they are still not enough.
Amendments for delayed installation of some facilities didn't address the largest feasibility concerns in light of the fact that the cost estimates underlying the SRIA were grossly incorrect.

Now we wait to see if Cal/OSHA will issue another 15-day change order based on our input, or if they are going to lock in this version for the final vote. Information on the rulemaking is available HERE.

SB 553/Workplace Violence

At the very end of the meeting, one of the board members asked the Chief Deputy of Health at Cal/OSHA Eric Berg about the workplace violence regulations, specifically asking why they are taking so long to release (specifically, she asked if things were ‘sticky’). Berg responded saying the proposed regulations are tough to draft because violence is “random and unpredictable” and that “violence is difficult to anticipate.” Specifically, he mentioned they were working on exceptions to the standard.

He said once something is released, they would need to do public comment/feedback and have an advisory committee.

These comments mirror the comments CRA has been making in the media and to the author as to why trying to do this process via statute is not the way to get the best outcome and why we prefer the Cal/OSHA process – Michelin has shared these comments directly with the Governor’s office.

Additional Updates Outside of the Meeting:

COVID-19 Outbreak Definition Redefined

The California Department of Public Health (CDPH) updated the definition of outbreak for California in late June - which is referenced and incorporated into the Cal/OSHA COVID-19 workplace safety regulation. As a result, outbreak procedures for COVID-19 will be affected by this change.

Specifically, the definition of an outbreak in the COVID-19 reg is below:

(1) This section applies to a workplace covered by section 3205 if three or more employee COVID-19 cases within an exposed group, as defined by subsection 3205(b)(7), visited the worksite during their infectious period at any time during a 14-day period, unless a California Department of Public Health (CDPH) regulation or order defines outbreak using a different number of COVID-19 cases and/or a different time period, in which case this section applies when the number of cases at the worksite constitutes an outbreak under CDPH's definition.

The new CDPH definition is: "Outbreak" is defined as at least three COVID-19 cases during a 7-day period.

Functionally, employers will be able to have less outbreaks as the timer can be reset sooner so cases that previously would have been counted together can now be broken up - and was in effect as of June 20th.

City of Los Angeles Minimum Wage Ordinance

CRA joined a growing coalition of businesses opposing a proposal to increase the minimum wage in the City of Los Angeles to $30/hour. The ordinance, sponsored by Unite Here! Local 11, is deeply flawed and so poorly written that it sweeps a whole host of businesses up in its scope, including some retailers with operations at airports or in hotels.

An economic analysis from Oxford Economics projects that raising the minimum wage by up to 66 percent will lead to 14,870 fewer construction, restaurant, retail, arts and entertainment and supply chain jobs as local businesses are hurt by visitor spending declining by $1.1 billion annually. Oxford Economics also estimates it will lead to $55 million in lost local tax revenue that currently supports vital public services like homelessness. As a result, a diverse coalition across the Los Angeles region and California has formed against the ordinance.

The Alliance for Economic Fairness includes the Los Angeles Area Chamber of Commerce, California Business Roundtable, CalChamber, Hotel and Lodging Association, Apartment Association of Greater Los Angeles, Asian Business Association Los Angeles, Beverly Hills Chamber of Commerce, Compton Chamber of Commerce, Long Beach Area Chamber of Commerce, National Association of Minority Contractors, Southern California, California Travel Association and other business organizations throughout the state.

California Community Pharmacy Coalition Updates

Board of Pharmacy

The CRA team testified at the Board of Pharmacy's July meetings, which included their Legislation and Regulation; Enforcement and Compounding; and Licensing Committees meetings held on July 18 and July 19. The CRA team testified in support of AB 782 (McKinnor), in opposition to AB 1286 (Haney) and in support of remote processing. The CRA team also submitted another oppose letter for AB 1286 updated for Senate Appropriations. We added some fiscal arguments and are going to reach out to request a meeting with the Appropriations consultant. Read the letter here.

The CRA team sent a letter to Governor Gavin Newsom supporting and advocating for the appointment of Robert Nickell to the Board of Pharmacy. Nickell is a highly qualified candidate, possessing decades of diverse experience in the field of Pharmacy. In 1981, Nickell earned his degree from the University of the Pacific School of Pharmacy. Since then, Nickell has held distinguished positions, such as President of the California Pharmacists Association, and received awards and recognitions including California Pharmacist of the Year and Innovative Pharmacist of the Year.

Medi-Cal RX

Similar to the weekly retail roundup the CCPC coalition will receive a weekly coalition specific update, which includes Medi-Cal RX. Access the last update here.

CRA Outreach and Activities

CRA Annual Meeting

Sponsorships Now Available!

Save the date for CRA's Annual Meeting, which will be held Monday, October 2 and Tuesday, October 3 at the Irvine Marriott located at 18000 Von Karman Ave, Irvine, CA 92612. Special invited guests include Lieutenant Governor Eleni Kounalakis; Senator Josh Newman (author of SB 707); California Highway Patrol Commissioner Sean Duryee; CalRecycle Director Rachel Machi Wagoner, Public Policy Institute of California President and CEO and Former 28th Chief Justice of California Tani Cantil-Sakauye and other policy leaders from California.

Topics include PAGA Reform; Retail Theft/ORC; Environmental Sustainability including an SB 54 Advisory committee update and Textile EPR; Labor & Employment issues; 2024 political forecast; updates on the California legislative and regulatory environment.

Sponsorships now available. Individual

registration opens August 1st.

For more information please email CRA@CALRETAILERS.COM; Individual tickets available August 1^st while space is available; Sponsorship partnerships open to CRA members and nonmembers.

BECOME A SPONSOR TODAY!

CRA President and CEO Rachel Michelin Receives

2023 Business Makes LA County Work Award

CalRetailers' President and CEO Rachel Michelin received the "Queen Bee" 2023 Business Makes LA County Work Award (the Bizzis), presented by the Los Angeles County Business Federation. The Bizzis honor extraordinary business community leadership including those who lead small businesses to take on big advocacy challenges, head organizations that take a stand for entire industries and serve in elected offices that consistently empower businesses to grow. The CRA team appreciates its continued partnership with other leaders throughout the business community who are members of BizFed and share CalRetailers' commitment to ensuring businesses can thrive in the state.

CRA President Rachel Michelin attended the annual Food Marketing Institute's (FMI) States Issues Conference in Utah and spoke about Retail Theft, PAGA Reform efforts and Labor issues. The conference is an annual event that brings together food retail grocery associations and food and grocery company professionals from each state to discuss state legislative issues of interest to the food industry. As more and more policymaking occurs at the state and local level, this meeting provides an important opportunity to learn the lessons of the 2023 state legislative sessions and strategize for 2024. Learn more about the conference here.

CRA Monthly Policy Calls

The following includes the remainder of the 2023 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 11:00am PT.

No call in August
September 8

In The News