CRA Member Newsletter
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March 27, 2020 | Special COVID-19 Issue
Message from the President
WOW! What a few weeks it has been. The CRA team has been working hard to assist CRA members as we navigate the complexities of California Government and we will continue to advocate on your behalf. Not only are we following issues coming out of state government, we are closely monitoring local ordinances – and there are several them. We are submitting letters, providing testimony, commenting on calls- all to protect California’s retail industry.
This crisis will pass, and we are hopeful that soon ALL retailers will be able to open their doors and get back to business, but even when that happens, we know we still have a long road ahead of us. 

CRA is setting the stage to advocate on economic packages in California to help the retail industry get back on their feet. We are partnering with several other business associations to provide ideas to help member companies as we move beyond the COVID-19 health crisis. Over the next few weeks and months, CRA will solicit input and feedback from members on specific needs when it comes to your economic recovery in California.

We are in uncharted territory, but know the CRA team is here as your voice in California. Thank you for your trust in us.

To those of you who are not CRA members, I hope you will consider joining. Your support allows CRA to be THE voice of retail in the state, and I hope, given the past few weeks, you realize your investment in the California Retailers Association is an investment worth making.

Rachel
COVID-19 Policy Updates
Bottle/Bag In-Store Take Back
 
The CRA team has been working to find resolution on this issue of CRV take back and address the issue of consumer reusable bags in retail stores. This week, we partnered with the California Grocers Association on a joint letter to Governor Newsom ( READ HERE ). We have spoken with the Administration and have been assured the issue has been passed on to the highest level and we are hopeful to have a resolution soon.
 
We will update members as soon we get an answer one way or another.
California State Budget Update

Gov. Newsom announced that he has shelved his initial budget plan and will pursue a “workload” budget . The stripped-down spending plan will work as a stopgap, as the economy weathers the COVID-19 crisis, and will allow California to meet its constitutional deadline for passing a budget.

Newsom’s Department of Finance sent letters to the Legislature and to government agency secretaries advising them that the normal schedule for state budgeting is on hold and that the goals the governor described in January are up for renegotiation.
The letter to the agency secretaries and department directors warned them that they “should have no expectation of full funding for either new or existing proposals and adjustments. The only exception to this new evaluation criteria will be proposals or adjustments necessary to support the emergency response to COVID-19. New requests, which fall outside these parameters, will not be reviewed.”
The administration is adapting to the economic havoc caused by the coronavirus.
The Department of Finance sent a letter to the Senate Budget and Fiscal Review Committee and the Assembly Budget Committee, informing them that the department will not be sending any “Spring Finance Letters” this year, due to the novel coronavirus pandemic.
Finance is typically required to provide the California Legislature with updated expenditure and revenue information for policy adjustments related to the governor’s January budget by April 1, but that won’t be happening this year.
“Despite the sustained efforts, the virus continues to spread and is impacting nearly all sectors of California’s economy. Among these impacts is a potentially severe drop in economic activity, with corresponding negative effects on anticipated revenues for the upcoming 2020-21 fiscal year and beyond,” the letter read, in part. “In light of this evolving situation, the Department of Finance will not propose any April 1 Finance Letter adjustments to the governor’s budget or any May l adjustments to the governor’s budget in appropriations for capital outlay.”
According to the letter, the Department of Finance now will reevaluate all budget changes within the context of a workload budget, that will include all April 1 and May 1 requests. All potential adjustments will be included in the May revision, as well as previously approved adjustments incorporated in the governor’s budget.
State Legislature Update

The California Legislature is recessed until Monday, April 13th in response to COVID-19. The Joint Recess allows either house to be called back into session upon call of the leadership of either house, but also allows the recess to be extended if required to comply with a gubernatorial order for home isolation. 

Prior to adjourning, the Legislature passed measures to allow Governor Newsom $1 billion in spending authority to address emergency needs related to Covid-19, and a measure to support school finances through the closures and additional funding to deep-clean school sites.

The Senate also approved procedures allowing Senators to participate and vote remotely during emergency Senate business. Nearly one-third of the Senate is 65 years of age or older and subject to the Governor’s current order on home isolation.

We have been told the Legislature is thought to return to the State Capitol and resume state business the beginning of May. When they do come back, we are being told the number of bills they can carry will be limited. That is just a rumor. Bills are still being amended. We will update CRA members as more information is available.

In the meantime, the CRA team is closely monitoring any legislation being introduced or amended.
CA Tourism Industry Response

CRA joined other associations, including the CA Hotel and Lodging Association and the California Restaurant Association, in asking the administration for consideration on economic stimulus ideas to support the tourism industry in California. CRA President & CEO Rachel Michelin meets with these groups and members of the Administration via conference call each week to discuss ideas to help our industries when we move to the economic recovery stage.  

Reach the joint letter HERE . 
Distribution Centers
CRA sent a letter to City and County leaders statewide requesting that all distribution centers remain open, without regard to whether the connected retailer is deemed “essential”, as local jurisdictions consider emergency measures. It.is critically important that, in response to the public health crisis, there are minimal disruptions to the supply chain in order to keep store shelves stocked with food and other vital consumer goods, which provide a lifeline to their communities.

Any closures of distribution centers will have reverberations throughout the supply chain and California's economy, including impacts to ports and trucking capacity as supplies back up in the system. Moreover, distribution centers can continue to serve customers by filling on-line orders and pose no significant additional health risk to managers, employees or the public.

Employees at distribution centers work in large warehouse spaces that usually are sparsely staffed. They are also following strict COVID-19 protocols. Their closure would be an unnecessary shortchanging of both consumers and employees and create a severe disruption to a critical cog in California's supply chain.

CRA has been working with the Governor's Office on providing greater clarity on essential operations in the state. The most recent communications include:

  • ALL distribution centers can remain open;
  • Call centers for "web business" can remain open; and
  • Essential retailers are listed who can keep their physical stores open.

The CRA team continues to monitor this situation and will forward information to our members as we receive it.

If companies are going to have any employees working in the state, in any capacity, CRA recommends:

  • Signage throughout the facility promoting washing hands, social distancing, etc.;
  • If you have a PA system for announcements, that you have announcements running regularly reminding folks to wash hands, social distancing, etc.;
  • That you enforce regular cleaning of the facilities;
  • That you make hand sanitizer readily available; and
  • You do not allow employees 60+ to work.

CLICK HERE to read the CRA letter to Governor Newsom.

CLICK HERE to read the County letter.

The letters and executive order are also available on CRA's COVID-19 Resources and Updates Page .
Trucking and Labor

Taking action to ensure that key commodities can be delivered to California retailers in a timely manner during the COVID-19 outbreak, Governor Gavin Newsom signed an executive order to ease restrictions on commercial drivers engaged in support of emergency relief efforts.

The change comes in conjunction with the Federal Motor Carrier Safety Administration’s emergency waiver announced earlier this month to ensure the free flow of critical supplies and equipment.

The executive order also suspends existing law for employers directly impacted by COVID-19 and directs the Labor and Workforce Development Agency to provide guidance to impacted employees.

The Governor’s full executive order can be found here , also available on CRA's COVID-19 Resources and Updates Page .
CRA joins other groups in letter to President Trump

CRA joined 89 other trade associations from throughout the United States on a letter advocating on behalf of the retail industry and economic stimulus.

CLICK HERE to read the letter.
Supply Chain Issues due to COVID-19 
 
CRA president & CEO Rachel Michelin has been participating in a weekly call to discuss logistical and supply challenges due to COVID-19 and the closure of many retailers. Some of the issues we are working with the group on is greater clarification on the function of Distribution Centers, on-line sales and possible curb side pick up of goods. The group has collectively been advocating to the Administration that we need to look at the supply chain as a whole and that one part that is not functioning correctly effects the entire chain. We are working to get better clarity on “essential” workers and ensure businesses can open so goods are not turned back and left at the ports. 
 
If you are a CRA member and are having supply chain issues or logistical challenges, please email Rachel directly
Clarification on Web Based Sales and Curb Side Sales

Today, CRA submitted a letter to Governor Newsom asking for greater clarification for non-essential retailers to continue online sales and have the option to offer curb side pick up at a brick and mortar store.

CLICK HERE to read the letter.

CRA will keep members apprised when we receive a response from the Governor’s office.
CRA Policy Call- Open to the Public
Friday, April 3
10:00am

The CRA team will be holding a policy update call next Friday, April 3 at 10am, which will be open to the public. The call will include critical and timely updates on CRA's response efforts related to COVID-19 including statewide and local developments as they relate to California's retail industry. This is a ONE TIME Policy call that provides the public with access to CRA policy actions.

The call is part of a monthly Policy Calls series that CRA provides exclusively to members with updates on important legislation and regulation moving through the process and to solicit member feedback. Call information will be provided upon registration.
COVID-19 Regulatory Updates
CCPA AG Regulations Update
The Attorney General has not suspended implementation of the CCPA Regulations. CRA is participating in a webinar next week specific to the regulations and will provide an update to members afterwards.
 
The deadline to submit public comments to the second set of modified regulations is today at 5:00pm.

CLICK HERE to read CRA's comment letter on version 3 of the AG regs.

CRA joined a number of other business organizations in asking the AG to POSTPONE enforcement of CCPA (July 1) until the COVID-19 crisis passed.

Read the letter HERE .

While the AG did not formally respond to the letter, he did comment in the media that he will NOT postpone enforcement.

Read the article HERE .
Transport Refrigeration Unit (TRU) Regulation

CRA has signed onto a letter submitted to the CA Air Resources Board requesting a temporary pause in the TRU rule-making process due to the unique circumstances created by the COVID-19 crisis.

This pause will allow companies affected by the proposed regulation to focus on ensuring the nation‘s supply chain provides essential goods like food, beverages and medicine to the residents of the state.

The comment deadline for the TRU rule has been extended to April 27. This is a further extension of the previously promised two-week extension. A formal notice from ARB is forthcoming.

CLICK HERE to read the letter, which is also available on the CRA member portal .
Wildfire Regulations

CRA submitted a letter to the Occupational Safety & Health Standards Board (OSHSB) regarding last week's scheduled review of wildfire regulations up for re-adoption. The board, unfortunately, did not make any of the changes that CRA, along with other business interests, had requested. We weren’t surprised – Cal/OSHA staff was indicating that they were reluctant to accept changes from any groups as it would open the door to accepting changes from all groups. Nonetheless, CRA submitted concerns for the record. 
 
Click here to view the letter CRA submitted to OSHSB. The letter is nearly identical to the letter previously submitted to Cal/OSHA.

To view previous letters and newsletter articles on the issue visit the CRA member portal here .
San Francisco and Los Angeles Labor Issues

San Francisco

CRA sent a letter to the City of San Francisco requesting a review of local provisions around predictable scheduling to allow for local retailers to provide immediate employment opportunities for San Franciscans who have been unemployed due to the COVID-19 Shelter In Place order.

The review request includes a suspension of provisions of San Francisco’s Formula Retail Employees Ordinances for the duration of the State of Emergency in the City and County of San Francisco, including the Hours and Retention (SF Police Code Article 33F) and Fair Scheduling and Treatment (Article 33G).

The Letter also asked the Office of Labor Standards Enforcement to make the suspension retroactive to the Mayor’s March 16th Shelter In Place order, in recognition of the deep need for retailers to staff up quickly during that time.

By temporarily relaxing predictable scheduling requirements during the COVID-19 state of emergency, San Francisco retailers will be able to staff up rapidly to meet demands and quickly offer employment opportunities to residents who need them.

Click here to the read the letter, which is also available on the CRA member portal .

Los Angeles

Los Angeles City Council is trying to take advantage of the coronavirus pandemic and pull a major labor power-grab by dictating the hiring practices of businesses "Right of Recall" and implementing a citywide workers “Right-of-Retention" policy.
The two ordinances are part of an "emergency" COVID-19 package that the Council first voted on March 17th. They are back as items #2 and #4 on Friday's 3/27 council agenda.
Read the ordinances   HERE .

How does it impact retailers?

The "Right of Recall" ordinance:
  • Applies to any person or entity who employs a worker who works in the City of Los Angeles and who earned gross receipts in 2019 exceeding $5,000,000.
  • Targeted to impact workers who were laid-off retroactively at anytime on or after March 4, 2020 with a presumption that any termination following this date was for non-disciplinary reasons.
  • Requires that an employer shall offer in writing, to the last known address of every laid off worker, any position which is or becomes available for which the laid off worker is qualified. The worker has 10 days to reply. 
  • If two workers qualify for the same position, the person with seniority shall be offered the position.
  • Exempts businesses with a Collective Bargaining Agreement.
  • Remains in effect until March 4, 2022. The City Council can vote to extend it.

The "Right of Retention" ordinance: 
  • When a business is sold or purchased by another company, this requires the new owners to retain current employees for at least 90 days.
  • At the end of the 90 days, the successor must do an evaluation of each employee and if their work is satisfactory, consider them for employment. These records must be kept for three years.
  • Exemptions for businesses with a Collective Bargaining Agreement.

Read the letter HERE the CRA submitted in opposition.

Read the editorials from the LA Times HERE and the LA Daily News HERE .
COVID-19 Resources and Updates
The CRA team has created a web page that provides our members and the public with up to date information and resources related to COVID-19. The page includes a list of national, state and local executive orders, public directives, guidelines and news impacting California's retail industry. P lease be sure to check this page frequently as updates are made daily. And for real time (minute, by minute, hour by hour) developments, follow CRA on Facebook , Twitter and Linkedin.
CRA Events and Activities
CRA distributed a list of retailers who are currently hiring to meet workforce needs created by COVID-19. The list was quickly and widely shared across social media channels including Facebook , Linkedin and Twitter . We appreciate our state legislators who helped get the word out to their districts! In just three days the post has reached nearly 16,000 people! For a complete list of retailers hiring across the country click here .
CRA President and CEO Rachel Michelin spoke with CalMatters and Women's Wear Daily about the impact COVID-19 has had on California's retail industry and economy as a whole and what to expect as the pandemic continues.

CalMatters:
Rachel Michelin, president of the California Retailers Association, which represents the state’s largest retailers, said consumers shifting to online sales may “might make a dent” in the financial landslide now burying the association’s members — but only a small one.

Even if the shelter-in-place order is lifted, you have people who aren’t working, consumers who are now wondering, ‘Am I going to have a job?’” she said. “I think people are going to think twice about buying things they don’t necessarily need until we get past this.”

A prolonged economic freeze would be particularly hard for smaller businesses that don’t have the cash reserves to cover overhead like payroll, rent, mortgages and taxes until things improve.


Women's Wear Daily:
“There’s no book on how to do this,” Michelin stressed. “Companies are just trying to figure it out.”

Based on her conversations with retail leaders, Michelin said the retail industry in California is moving “past the initial panic” of what to do over COVID-19, or coronavirus. But concern is now focused on how long the closures will last, and then, when they end, how long it will take for business to return to normal. A big driver of shopping in the state is driven by tourism, which California has seen grow for eight consecutive years, driving more than $140 billion in direct spending, according to state tourism body Visit California. With travel across the globe essentially on hold over coronavirus concerns, it may take months for visitors to start coming back in.   

“We are already looking forward, thinking about what we need to do in terms of recovery and how we put the sign back out that ‘California is open for business again,’” Michelin said. “We’re just starting those conversations.”

CRA Member Highlights
CRA continues to share the amazing response efforts our retail members have deployed across the state and country to help their employees, customers and communities cope with the rapidly evolving COVID-19 public health crisis. Retail companies are really stepping up to their communities needs' including:
  • Hiring more employees;
  • Providing increased benefits, bonuses and pay raises for current employees;
  • Establishing special store hours for senior citizens who are uniquely vulnerable to the virus;
  • Shortening store hours to allow extra time for sanitization;
  • Implementing strict social distancing protocols;
  • Donating medical supplies including N95 masks and ventilators;
  • Working with local volunteer organizations to set up hand-washing stations in parking lots;
  • Opening up drive-through pharmacy and virus testing locations;
  • And much more

Have a positive, uplifting story to tell about what your company is doing to help with response efforts? Seen or read something positive and inspiring that you think we can share? Please email cra@calretailers.com and help us communicate all of the amazing things the business community is doing to meet this challenge head on.

We, as a society, are strongest as a collective, when businesses, government and the community come together to support one another. Help us share this message with positive and uplifting stories!

Below are just a few of the many member highlights our team has been privileged to share.
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 the 2019-2020 Legislative session. The portal also contains 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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