CRA Member Newsletter January 2024

CRA Member Newsletter

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January 31, 2024 | CRA Newsletter: Legislative, Political, Regulatory, Local & Other Updates

Message from the President

Happy New Year! We are off to a fast and productive start to 2024. The California State Legislature is back in session and focusing on a number of critical issues facing retailers in the state. Retail Theft/ORC is certainly at the top of the list.

In addition, CRA is actively working to help bring much needed relief through PAGA (Private Attorney Generals Act) reform and I am very appreciative of the members who have contributed to the public affairs campaign. If you are interested in being part of the groups who will direct CRA’s policy related to PAGA, please reach out so we can discuss engagement in the legislative process through the industry-wide public affairs campaign.

Other important issues we are looking at include artificial intelligence, environmental sustainability including new EPR programs, labor issues and how the state will close a pretty significant budget deficit – all while dancing around a very active election year.

As you can tell – there is a lot going on, so I encourage you and your teams to sign up for our list serves and work groups, so you get all of the information we share with our members.

Next week I am thrilled to be joined by over 40 CRA members as we meet with over 80 members of the State Legislature and as we recognize Assembly Speaker Robert Rivas as our “Retail Champion of the Year.” Cal Retailers' Advocacy Days provides retailers the opportunity to share all the great things the industry does throughout California and advocate on issues important to the industry. It is a jam-packed two days, but well worth it as we continue to increase the CRA brand in the halls of the State Capitol.

Later this week I am excited to join the FIRST meeting of the SB 54 Advisory committee. At this meeting I will have the opportunity to meet the other members, we will elect a chair and start laying out what we will do as an advisory committee. I am sure this will be the first of many very lively meetings.

Finally, plans are already made for CRA’s 2024 Annual Meeting in Napa, California. I hope you will join us on Monday, September 16^th and Tuesday, September 17^th. More details to follow.

As the deadline for bill introduction looms, please do not hesitate to reach out to me or anyone on the CRA team if you have any questions, concerns or suggestions. We welcome your input and look forward to a productive 2024!

Rachel

Special CRA Newsletter Feature: Retail Theft Podcast Episode by Assemblymember Rick Zbur

Assemblymember Rick Chavez Zbur, Chair of the Assembly Select Committee on Retail Theft, is featured in a podcast episode focused on Retail Theft. The episode is part of the "Look West: How California is Leading the Nation" podcast series, which provides a personal view of the California leaders in the State Assembly and their unique perspective on different issues affecting California.

Listen on Spotify

Listen on Apple Podcast

In CRA's January 2024 Newsletter Issue:

Legislative Advocacy Updates
Regulatory Advocacy Updates
Federal and Local Advocacy Updates
CA Community Pharmacy Coalition Updates
Upcoming Events
Other Outreach and Activities
2023 End of Year Report
Member News
CRA In The News

2024 Legislative Advocacy Updates

Legislation Update

Wednesday, January 31 is the last day for two-year bills to pass out of their house of origin. See below for results on some of the legislation CRA is tracking. The deadline to introduce legislation is Friday, February 16. Typically, bills are slowly introduced until the deadline approaches then we see a wave of new bills. This is the case this year, although we have seen a steady introduction of bills relating to retail theft and we still expect even more. CRA staff is working hard behind the scenes with legislators, legislative leadership and the governor’s administration on the best policy to combat retail theft and a path forward. For an overview of introduced bills, with a focus on retail theft legislation, please make sure you’re signed up for CRA’s Policy Call scheduled for February 16 at 10am.

Please note, once a bill has been introduced it cannot be acted upon or heard in committee until after 30 days. Given California is holding its Primary Election on March 5, we do not expect committee hearings to start ramping up until mid-March. Once all the bills have been introduced CRA staff will send out a comprehensive list of legislation impacting the retail industry.

AB 82 (Weber) – This bill would prohibit a retail establishment from selling, transferring or otherwise furnishing dietary supplements for weight loss or over-the-counter (OTC) diet pills, as defined, to any person under 18 years of age without a prescription. This bill passed the Assembly and now moves to the Senate. CRA will continue to monitor this bill for any updates.

AB 863 (Aguiar-Curry) – The assemblymember has indicated to CRA she is in the process of reviewing the California carpet stewardship program and would like to overhaul it. CRA staff met with Asm. Aguiar-Curry who said she’ll share sample language with us soon, and CRA committed to getting her feedback on the concept. The current language in print will be completely amended. If you sell carpets in California please let Ryan with CRA know as soon as possible.

AB 1000 (Reyes) – This bill would prohibit specified public agencies within the Counties of San Bernardino and Riverside from approving the development or expansion of a “qualifying logistics use” (generally, a warehouse of 100,000 square feet or more) within 1,000 feet of a sensitive receptor, as defined. This bill was pulled from the Assembly Local Government Committee at the request of the author because the Speaker highlighted issues with the policy and recommended the author collaborate with a working group convened by the Chair of the Local Government Committee on a path forward. Additionally, Asm. Ramos ran a separate measure (AB 1748) that was a more reasonable policy than AB 1000, but legislative leadership thought it didn’t go far enough. We expect Asm. Ramos to also play a role in the working group. AB 1000 as a vehicle is dead so a new bill will need to be introduced. CRA will continue to monitor this issue and give updates moving forward.

AB 1516 (Kalra) – This bill would require the Labor and Workforce Development Agency to convene a working group to study and evaluate topics related to the minimum wage in California. Additionally, the bill would require the working group to submit to the Legislature, on or before July 1, 2025, a report that outlines recommendations for raising the minimum wage for all workers in California. The bill was amended last week to include a representative from employers in the working group. The bill passed the Assembly and now moves onto the Senate. CRA will continue to monitor this bill for any updates.

Retail Theft Updates

Little Hoover Commission Holds Third Hearing on Retail Theft

The Little Hoover Commission held their third out of a series of four hearings on Retail Theft, this one focused on reporting and tracking crime statistics related to Retail Theft. Researchers discussed "whether there are improvements that could be made to better inform evidence-based decision making". Testimony was given by representatives from UC Irvine, Public Policy Institute of California, Californians for Safety and Justice and the Committee on Revision of the Penal Code.

View the hearing recording here. The Commission will be sending a fact sheet out ahead of their full report in order to get information out quickly given this year's policy proposals in the State Legislature. There will be one more Commission hearing on February 8 and the next Assembly Select Committee on Retail Theft hearing will be the following day, February 9, in the morning, and will be a JOINT hearing with the Assembly Public Safety Committee.

Retail Theft Working Group with Assembly Public Safety Committee Chair

CRA President and CEO Rachel Michelin is participating in weekly meetings with Assemblymember Kevin McCarty to discuss retail theft policy priorities for this year's legislative session.

Governor's Legislative Package

The CRA team issued a statement responding to Governor Gavin Newsom's ORC and Property Crimes legislative package he unveiled at the start of this year applauding the Governor for continuing to lead on the issue of Organized Retail Crime and working collaboratively with retailers on legislative proposals that provide real, tangible solutions to serial theft. Read the statement here.

CA Safe Stores and Neighborhoods

Cal Retailers is also tracking additional bills being introduced in this year's legislative session that seek to address the issue of repeat theft and will be engaging with our state's policymakers through our Californians for Safe Stores and Neighborhoods campaign, a diverse coalition of businesses and business advocates including small retailers, chambers of commerce, local elected officials and many other stakeholders all impacted by ORC and Retail Theft and looking for solutions to the growing crises.

Members of the California Retailers Association will be invited to meetings throughout the year to lend their expertise and provide feedback as part of the policymaking process. Learn more.

Legal Challenge to Climate Bills SB 253 and SB 261

A lawsuit has been filed in the U.S. District Court for the Central District of California, Western Division challenging California’s new climate reporting laws—SB 253 (Wiener) and SB 261 (Stern). The lawsuit asserts that both SB 253 and SB 261 unconstitutionally compel speech in violation of the First Amendment and conflict with existing federal law and the Constitution’s delegation to Congress of the power to regulate interstate commerce. Read more.

CRA Monthly Policy Calls

The following includes the remainder of the 2024 monthly policy call calendar covering this year's legislative session (dates are subject to change). Policy calls are held on Fridays at 10:00am PT.

February 16
March 15
April 19
May 17
June 21
No meeting in July
August 16

Regulatory Advocacy Updates

CalRecycle Updates

SB 54 Packaging

Last Informal Rulemaking Workshop

CalRecycle will hold the last informal rulemaking workshop for SB 54 tomorrow, Thursday, February 1, which will focus solely on answering clarifying questions about the draft regulations. The session is the last informal public forum for the regs as CalReycle prepares for a 45-day comment period, which will open when CalRecycle initiates the formal rulemaking process. The CRA team will keep our members apprised of this timing and provide a recap of tomorrow's session.

Stakeholder and PRO Outreach

The Circular Action Alliance (CAA), which CalRecycle selected as California's first Producer Responsibility Organization or PRO, held an EPR stakeholder webinar - read CRA's recap here, exclusive to CRA members, and view presentation slides here (enter passcode: CAAUpdate3! to access the presentation).

As a reminder, CAA also hosts regular Producer Working Group Meetings for the implementation of SB 54, which the CRA team attends and provides recaps for our members (these meetings are not recorded). The next CAA Producer Working Group will be held Tuesday, February 20 at 12 pm ET/10 am MT/9 am PT. Register here. Participation is open to all producers, trade associations representing producers and legal counsel to producers.

The CRA Team also attended CAA's third Producer Working Group Meeting geared towards helping make producers aware of upcoming requirements in California and other EPR states (OR, ME, CO, MD) and increase their understanding of compliance obligations including answering questions like “how will CAA minimize free riders and keep pricing fair/equal across all producers?” and “what does the preliminary producer reporting and fee timeline look like?" View the recap here.

The CRA Team also participated in the National Stewardship Action Council (NSAC)'s first SB 54 working group meeting of the year, which focused on reviewing the draft regulatory text. NSAC is made up of a diverse array of industries impacted by the regulation and their working groups include CAA.

SB 54 Advisory Group

As a reminder, CRA President and CEO Rachel Michelin was named to the inaugural Plastic Pollution Prevention and Packaging Producer Responsibility (SB 54) Advisory Board and will be serving as an important voice for the retail industry and larger business community during the SB 54 rulemaking process. Read the announcement here. View the entire list of board members here.

CA Electronic Waste Recycling Program

Annual Net Cost Report Requirements

CalRecycle has posted the signed Public Notice detailing the requirement that approved collectors and approved recyclers in California’s CEW Recycling Program calculate and submit Net Cost Reports for operations conducted in 2023. Read more.

Revised CEW Net Cost Reporting Forms

As noted above, CalRecycle revised the Net Cost Report forms for use by approved recyclers and collectors to conform to current regulatory requirements and improve accessibility for the visually impaired. The revised forms and guidance document are available on the Program's forms and information webpage, but all participants are encouraged to use the secure internet portal for their report submission. Approved participants will receive direct communications regarding access to the online system in the near future. Read more.

CEW Recycling Fees Effective January 1, 2024

On September 27, 2023, the Office of Administrative Law (OAL) approved emergency regulations governing the CEW recycling fee. The emergency regulations maintained and adopted the CEW recycling fee at the current rates in each size category. Read more.

CARB Updates

Advanced Clean Trucks

The CRA Team attended the second Truck Regulation Implementation Group (TRIG) Outreach meeting hosted by the California Air Resources Board (CARB). Read the recap here. If your company has additional feedback to share with CARB that may have caught your eye in reading the recap or outside of the information provided here, please email sarah@calretailers.com.

Advanced Clean Fleets

CARB does not plan to take enforcement action on the drayage or high priority fleet provisions of the ACF regulation until the U.S. EPA grants a preemption waiver applicable to those regulatory provisions or determines a waiver is not necessary. This enforcement discretion does not apply to State and Local Government Fleets. Read more.

Guidance Documents Available for the Heavy-Duty Engine and Vehicle Omnibus Regulation

CARB has posted new guidance documents for manufacturers, dealers, upfitters and buyers to clarify when a heavy-duty engine must be California-certified and subject to the California Averaging, Banking and Trading program requirements (fully offset) under Title 13, California Code of Regulations, Sections 1956.8(b) and 2015(r). These guidance documents provide additional information to assist stakeholders in planning efforts to comply with the Heavy-Duty Engine and Vehicle Omnibus (Omnibus) regulation. Read more.

Independent Contractors

The Biden administration enacted a new labor rule that aims to prevent the misclassification of workers as “independent contractors,” a step that could bolster both legal protections and compensation for millions in the U.S. workforce.

Major app-based platforms including Uber, Lyft and DoorDash expressed confidence that the new rule would not force them to reclassify their gig drivers. But business groups warned the rule creates uncertainty for employers and much depends on how the Labor Department decides to enforce it. Read more.

Prop. 65 Short Form Warnings

CRA sent a letter to the California Office of Environmental Health Hazard Assessment (OEHHA) requesting OEHHA withdraw the proposed amendments to Title 27, Article 6, Clear and Reasonable Warnings - Safe Harbor Methods and Content as the proposed rulemaking does not materially further the goals of minimizing unnecessary prophylactic warnings and better informing consumers about potential exposures to listed chemicals. The amendments also impose significant costs on retailers and others in the regulated community, and creates more potential liability for retailers from meritless enforcement actions. Read the letter here.

Privacy

The California Privacy Protection Agency (CPPA) met for their first Board Meeting of the 2024 calendar year- they didn't update any timelines for when to formalize rulemaking on Automated Decision Making Tools and Data Impact Assessments, but we do anticipate more information coming in their next hearing on those topics.

The CPPA is in the process of shopping their bill proposal to a few legislators on the Global Opt-out, but didn't specifically mention any authors.

The Agency also shared during the board meeting that Board Member De La Torre, one of the inaugural CPPA Board members, will be stepping down once a replacement Senate appointee is named. Read more.

Cal OSHA Indoor Heat Regulation

Cal/OSHA released their third 15-day change for the indoor heat regulation at the very end of 2023. Read the third change here. The only significant change appears to be in the "scope" section, where the Division tweaked their "de minimis exposure" exemption - see (a)(1)(C). Procedurally, it is extremely unlikely that another 15-day change order is issued - so this will likely be passed into effect in March 2024.

Federal and Local Advocacy Updates

Tax Relief for American Families and Workers Act

CRA joined state retail associations urging Congress to immediately enact pro-growth H.R. 7024, the “Tax Relief for American Families and Workers Act", which will restore three tax policies vital to workers and America’s future:

immediate expensing of domestic R&D expenses;
enhanced interest deductibility;
and 100% accelerated depreciation.

Read the letter here.

Alliance for Economic Fairness Update

The CRA team attended the first Alliance for Economic Fairness meeting of the new year for updates on the effort to stop local minimum wage ordinances including the renewed push from proponents of the $30 wage ordinance in Los Angeles. The Alliance is currently focused on a grassroots advocacy campaign to ensure the Los Angeles City Council hears the voices of coalition partners in opposition to their measure. Advocacy efforts include:

The LA City Council has hired Berkeley Economics Advising and Research (BEAR) to conduct an economic impact analysis of the measure. BEAR will be reaching out to local businesses to gain input on the potential impact.
Media prep for coalition interview requests related to BEAR.
Gathering of selfie style opposition video testimonials - especially from small businesses opposing the LA minimum wage ordinance
Opposition letters

California Community Pharmacy Coalition Updates

Legislative Updates

PrEP

Lawmakers passed a bill that CCPC supports, which removes barriers for pharmacists to distribute PrEP, a preventative HIV medication, to patients without a prescription. The bill’s author, San Francisco Democrat Sen. Scott Wiener, called it an “essential part of any strategy” to prevent 4,000 HIV infections a year in California. The measure builds on a 2019 law, increasing the supply amount from 60 to 90 days, and requiring health plans to cover related pharmacist services when furnishing the medication. It now heads to the governor’s desk.

Remote Processing

Additionally, UFCW sent an email notice to legislative offices regarding remote processing and their opposition to the Board of Pharmacy's legislative proposal. In the email, Jassy Grewal wrote to legislative staff to let them know that "UFCW will be opposing the measure due to concerns related to giving the Board of Pharmacy open regulatory authority to adopt remote processing provisions with limited safeguards, concerns related to HIPAA compliance and patient safety, lack of enforcement capacity to ensure compliance with the measure, impacts on reduction of staffing within existing community chain pharmacies, among other concerns."

SB 362 (NEWMAN - 2021)

Senator Newman sent a letter to the Board of Pharmacy outlining concerns with how the Board is interpreting his bill. CRA President and CEO Rachel Michelin spoke with the Senator directly and is keeping a line in with him to see how the meeting went. The CRA team will update the CCPC as soon as we have information.

Board of Pharmacy Updates

The CRA team attended the Board of Pharmacy's January Licensing Committee, Communication/Public Education Committee and Enforcement and Compounding Committee meetings covering issues we are tracking for the CCPC including Pharm Tech Ratio and Pharm Tech Training Requirements, Central Fill, Mail Order, AB 1286 FAQs and Medication Error Reporting. With regards to AB 1286 FAQs, the CRA team is working on a letter to the Board of Pharmacy requesting clarification on the enforcement of provisions of AB 1286 via the board’s draft AB 1286 FAQs, which can be viewed here. Please send specific questions/scenarios you’d like to see addressed by COB Friday, February 2 by emailing cra@calretailers.com.

The CRA Team is also working with the Governor's appointment unit to fill Jig Patel’s position on the Board of Pharmacy.

Medi-Cal Rx Updates

The Commercial Paxlovid™ Reimbursement and Update on Billing for Pharmacists Prescribing Paxlovid alert has been published. Read the alert here.

The Planned UAC System Migration for January 13, 2024 alert has been published. View the alert here.

Reject Code 16 Implementation was Postponed. View the alert here.

Upcoming Events

Cal Retailers Legislative Reception to Honor Assembly Speaker Robert Rivas

Join the California Retailers Association Board of Directors for our annual Legislative Reception featuring the Honorable Assembly Speaker Robert Rivas on the evening of Tuesday, February 6 (next week!). Mingle with retailers from across the state and nation, our state's policymakers and those working in and around the Capitol while we honor Assembly Speaker Robert Rivas as Cal Retailers' 2024 Legislative Retail Champion of the Year. The event starts at 5:30PM PST and will be hosted at SMIC's Sip & Quip Wine Bar in Downtown Sacramento. Register here. View sponsorship opportunities here.

Save the Date!

CRA Annual Meeting

Tuesday, September 17

Napa, CA

The California Retailers Association will host this year's Annual Membership Meeting on Tuesday, September 17 at the Napa Marriott. CRA members will hear from industry leaders and policymakers on a variety of issues impacting the retail industry including EPR, Retail Theft, Labor & Employment Issues, PAGA Reform, Artifical Intelligence and more. We will also have the latest Legislative, Regulatory and Political Updates. Details including registration, sponsorship opportunities, special guests and other programming will be released soon.

Save the Date!

Second Annual California Retail Law Summit

Tuesday, September 16

Napa, CA

The California Retailers Association and National Retail Federation is hosting the second annual California Retail Law Summit on Monday, September 16 at the Napa Marriott. CRA and NRF members as well as nonmembers will gather with legal experts to discuss and deep dive on a variety of issues impacting the retail industry in California including litigation threats, privacy, labor and employment matters, Cal/OSHA, and more. Attendees will also receive exclusive updates on California’s legislative and regulatory environment. Details including registration, sponsorship opportunities and programming will be released soon.

Other Outreach and Activities

CRA Joins Sacramento County District Attorney's Office in Press Conference Announcing new Measures to Combat Retail Theft in Sacramento County

CRA Government Affairs Director Ryan Allain joined Sacramento County District Attorney Thien Ho and representatives from Walmart, Arden Fair, Zanzibar Trading Company, American Petroleum & Convenience Store Association, Sacramento Metro Chamber of Commerce, California Highway Patrol, Sacramento County Sheriff’s Office and Sacramento Police Department to announce a “new day” in Sacramento County for organized retail theft. Watch the press event here.

CRA President and CEO Honored at California Women Lead's 50th Anniversary Reception

The CRA team attended the CA Women Lead Winter reception celebrating the organization's 50th anniversary where CRA President and CEO Rachel Michelin was honored for her 17 years of leadership to CAWL.

Additional CRA team Outreach and Activities

CRA President and CEO Rachel Michelin presented to Cal Cities (League of California Cities) Public Safety Committee on Cal Retailers' advocacy work on combatting ORC and Retail Theft.

CRA President Rachel Michelin and Government Affairs Director Ryan Allain attended NRF's 2024 Retail Big Show in New York. California's legislative delegation included Assemblymembers Blanca Pacheco (Rules Committee Chair), Rick Zbur (Chair of Select Committee on Retail Theft and Assembly Democratic Caucus) and Juan Alanis (Vice Chair of Public Safety Committee). The Big Show provides an educational opportunity for Cal Retailers to share with state legislators to help tell the retail story in support of our legislative advocacy efforts in California.

Michelin spoke on a Securing the Supply Chain: Crime Prevention in Trucking Panel at the California Trucking Association's Annual Membership Meeting. She was joined by the California Highway Patrol.

The CRA Team announced Cal Retailers 2024 Board of Directors and newest team member Erica V. Quarles. Read the announcement here.

2023 End of Year Report

CRA released our Annual Report for 2023, which provides a road map of the CRA team's advocacy work on behalf of our members including legislative, regulatory, local and other outreach efforts. Click on the image below to be taken to the report.

Member News

Lowe's Hometowns Grant Program

As a part of its goal to make communities better for all, Lowe’s is accepting project nominations for the third year of Lowe’s Hometowns, its five-year, $100-million impact program to revitalize community spaces.

Since 2022, the Lowe’s Hometowns signature grant program has renovated 149 community centers, affordable housing facilities, shelters and food pantries; refurbished 15 first responder, veteran and military family facilities; and built and improved 54 community gardens, parks and playgrounds – among many other impactful projects. More than 2.5 million people are anticipated to benefit from the first two years of Lowe’s Hometowns projects within one year of project completion.

Any type of project that involves the physical improvement or renovation of a community space is eligible. All grants must go to a local nonprofit that is willing and able to take on the project. You can see past projects here, but these have included:

Community Resources/Space (e.g. park, senior citizen center, youth center, etc.)
Safe Affordable Housing (e.g. critical repairs for shelters, block of homes, accessible home needs, etc.)
Cultural Preservation (e.g. theatre or memorial renovation, etc.)
Area Revitalization (e.g. a new playground at a community park, community garden, renovations to downtown areas, etc.)
Skilled Trades Education initiatives (e.g. mobile training programs, high school vocational, etc.)

Now through Feb. 19, we encourage you to visit Lowes.com/Hometowns to nominate a project and share this opportunity with the constituents and communities that you serve.

CRA In The News