Spring Newsletter
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April 22, 2022 | CRA Spring Newsletter
Message from the President
The CRA team has been hard at work representing the retail industry before the State Legislature, City Councils and regulatory boards across the state. Lots of new issues were added to our plate focusing on privacy, employee data, packaging and labor. 

We continue to focus on retail theft and ORC, and while we saw a few setbacks, there is still plenty of time for CRA to advocate to protect our employees, our customers and the neighborhoods retailers serve. In my years advocating to the State Legislature, I have learned nothing is final until the stroke of midnight on the final day of session – August 31st – and in California terms that is light years away!

As the legislative session starts to heat up, I hope you will take advantage of engaging with the CRA team. We are here to help all our members, our door and email are always open. Please do not hesitate to reach out if you have questions, input or comments on policy proposals being considered in California.

Finally – SAVE THE DATE! CRA will be hosting our IN PERSON Annual Meeting September 26 – 27 in Sonoma, California. More details to follow, but we are working on a DYNAMIC agenda that you will not want to miss!

Rachel
Legislative, Budget & Political Updates
CRA Retail Theft Legislative Effort Update

Capitol Weekly recently published an op-ed co-authored by CRA's President and CEO Rachel Michelin regarding Cal Retailers' efforts on Organized Retail Crime. This is part of our Californians Safe Stores and Neighborhoods campaign focusing on the 4 D's -- Dismantle, Disrupt, Deter and Divert.
 
The CRA team has been working hard on this issue and we continue to advocate on all aspects of our retail theft package -- $300 million in the Governor's budget proposal, support of Senate Bill 301, California's version of the federal INFORM Consumers Act and Assembly Bill 2390 to allow aggregation of petty theft charges up to the $950.00 felony threshold for grand theft. This bill is set to be heard in the California Assembly Public Safety Committee on April 26th.
 
In addition, CRA is planning a "Retail Theft Summit" on June 17th in Sacramento. This Summit will bring together representatives from the Governor’s office and the Attorney General, members of the State Legislature, criminal justice advocates, business leaders, CRA members who are part of our public affairs campaign and other stakeholders to work on comprehensive statewide policy initiatives related to retail theft and organized retail crime. 
 
If you would like to become involved in our Californians for Safe Stores and Neighborhoods campaign, please reach out to Rachel directly She can share how CRA members can support our efforts around ORC and retail theft in California. This is a marathon, not a sprint. The CRA team is committed to seeing meaningful policy changes that provide relief to retail employees, retail consumers and the neighborhoods in which retailers operate from the growing problem of retail theft and ORC.
Budget Appropriation to Address Retail Theft

CRA sent a letter to the Chairs of the Senate and Assembly Budget Committees on behalf of a coalition of businesses and industry groups urging support for the Governor’s Budget Change Proposal to enhance enforcement of organized retail theft: 
  • $6 million annually to the California Highway Patrol for expansion of the Organized Retail Theft Task Force (ORCTF) into Sacramento and San Joaquin Counties and the Fresno region.
  • $10 million annually to the Board of State and Community Corrections for grants to counties in support of dedicated prosecutors for organized retail theft cases.
  • $85 million annually to the BSCC for grants to enhance local law enforcement presence at retail locations.
  • $6 million annually to the Department of Justice for a special unit on organized retail theft. 

Read the letter here, also available on CRA's member portal.
Additional Retail-Theft Related Legislation

CRA sent a letter of support for AB 2543 (Fong), which, if amended to include a plan for revitalizing pretrial diversion programs for individuals charged under the proposed law, authorizes acts of shoplifting that occur on 2 or more separate occasions within a 12-month period to be punished as a “wobbler” offense where the aggregated value of the merchandise taken exceeds the grand theft threshold of $950. 

Read the letter here, also available on CRA's member portal.
Berkeley IGS Poll Shows Crime Among Top Issues of Concern
for Voters

Voters offer a wide array of responses when presented with a list of fifteen issues facing California and asked which one or two they consider most important for the state to address. Topping the list are housing affordability, mentioned by 31%, homelessness (29%), crime and public safety (23%) and gas prices (21%).
CRA Supports Rep. Young Kim's Federal Legislation to
Combat Retail Crime

House Small Business Innovation, Entrepreneurship and Workforce Development Subcommittee Ranking Member Young Kim (CA-39) introduced the Improving Federal Investigations of Organized Retail Crime Act (H.R. 7499), a bipartisan bill to help address organized retail crimes hurting retailers and endangering public safety. 

Steve McCarthy, California Retailers Association Vice President of Government Affairs and Policy: “The rapid rise in organized retail crime in California is hurting employees, consumers and store owners and international crime rings are contributing to this problem. The federal government has an important role to play in stopping ORC. We appreciate the leadership of Congresswoman Kim and the co-sponsors of HR 7499 in bringing this legislation forward."
Product Safety Legislation

CRA sent a letter in opposition unless amended to AB 1817 (Ting). The bill lacks any mechanism for a product or component manufacturer to demonstrate that certain PFAS in specific product applications do not present any hazards or exposure potential to the user or harm to the environment. 

Read the letter here also available on CRA's member portal.
Call Center Penalties

CRA sent a letter in opposition to AB 1601 (Weber), which deters companies from creating jobs in California because it improperly penalizes any companies who move California call center operations to a different country.  

Read the letter here, also available on CRA's member portal.
Upcoming Key Legislative and Political Dates

  • April 26 Public Safety Committee Hearing for AB 2390
  • April 29 Last day to hear fiscal bills in committees
  • May 14 May Revise (Budget Deadline)
  • June 7 Primary Election and San Francisco District Attorney Recall
  • June 15 State Budget Due
  • July 1 - Aug 1 Summer Recess
  • August 31 Adjournment
Ballot Measures, Candidates and Election Date Updates

The statewide primary 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.

Click here to view a crowdsourced candidate tracker.

Click here to read the latest on the statewide initiatives vying for the 2022 ballot.
Statewide Business Community Unites to Outline State Budget and Policy Priorities

The California statewide, regional and local business community came together to announce its key budget and statewide priorities for the governor and state Legislature.

In a letter sent to the governor, the organizations outlined the need for investment in equitable economic recovery that allows businesses of all sizes to re-hire California workers and re-build the 5th largest economy in the world.

CRA Opposes Anti-Business Legislation 

CRA is opposing the following bills:

  • SB 1162 (Limon). Encourages new, burdensome litigation against employers based on the publication of broad, unreliable data collected by the state. Read the letter here.
  • AB 2095 (Kalra). Forces employers to publicly disclose information regarding labor and employment issues for employees across the entire company. Read the letter here. 
  • AB 2182 (Wicks). Imposes a burdensome new accommodation requirement on small businesses to provide employees with time off any time school or a care center is unavailable. Read the letter here.
  • AB 2188 (Quirk). Creates an unprecedented, protected class for marijuana users and undermines employers’ ability to provide a safe and drug-free workplace. Read the letter here.

All legislative letters are available on CRA's member portal.
Unemployment Insurance Fund Relief Budget Push Update

CRA joined a letter in support for AB 2570 (Daly) as amended and sent to the Assembly Insurance Committee. The bill helps address California’s looming unemployment insurance fund (“UI Fund) insolvency and reduce future tax increases for California’s struggling businesses. 

Read the letter here, also available on CRA's member portal.
COVID-19 Legislation

CRA joined a letter of support to AB 1980 (Choi) sent to the bill's author and Assembly Revenue & Tax Committee. The legislation provides tax credits to businesses to offset the costs of providing COVID-19 supplemental paid sick leave. 

Read the letter here.

CRA opposes AB 2693 (Reyes) as it it extends COVID-19 notice requirements that are no longer appropriate as the state moves into the endemic phase of COVID-19 in 2023. Read the letter here.

All legislative letters are available on CRA's member portal.
Supply Chain Legislation

CRA sent in letters of support on the following bills related to the supply chain.

  • SB 1104 (Gonzalez). Creates the Office of Freight within the Governor’s Office of Business and Economic Development (GO-BIZ). Read the letter here.
  • AB 1679 (Fong). Establishes a Supply Chain Coordinator within the Governor’s Office of Business and Economic Development (GO-BIZ). Read the letter here.
  • AB 2406 (Aguiar Curry). Updates existing California law to better protect its economy from unfair supply chain fees. Read the letter here.

CRA also submitted a letter to Governor Gavin Newsom urging his focus on contract negotiations expected to begin May 12 between the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU) before the July 1 contract expiration date to ensure today’s challenges to California's supply chain are not compounded.

All letters are available on CRA's member portal.
Battery Take-back and Recycling

CRA has taken an oppose position on two identical measures requiring take-back of single-use and rechargeable batteries as well as battery-embedded products. AB 2440 was heard in committee and passed on a 7-1 vote. SB 1215 was heard in Senate committee on April 20th.

These bills would:
  • Establish a stewardship program for single-use batteries, rechargeable batteries, and battery-embedded products 
  • Mandate all retailers with 5 or more locations in the state to make each location “available” to serve as a collection site
  • Provide an unspecified weight limit on all embedded-battery products to be collected
  • Create a process for other entities to volunteer to collect
  • Establish an unspecified access standard for consumers (1 location per __,000 residents)
  • No POS fee – costs are to be borne by producers, and stewardship group provides equipment, training, signage, safety guidance and educational materials

CRA sent an oppose letter that outlined numerous concerns regarding this legislation’s impact on CRA members' stores, our retailers' ability to properly identify and classify all products returned and ability to deal with non-conforming items while maintaining a safe environment in stores that is compliant with all other laws including hazardous waste.

CRA is meeting with manufacturers and the author of the Assembly measure. There is a strong likelihood that a measure on battery recycling will pass at some point – the CRA team's goal is to come up with a workable program that retailers can comply with. 

One option we are discussing internally is, in exchange for removing provisions requiring takeback of battery-embedded products, to concede a Point-of-Sale fee that we would design to be simple and transparent. We would look to avoid the more complex fee structures involved with programs like E-Waste. While we recognize there are already concerns with collection of rechargeable batteries, it is unlikely we will get existing requirements removed.  

Read the letter here, also available on CRA's member portal.
Regulatory Updates
SCAG Greenprint and Draft Regional Advanced Mitigation Program (RAMP) Policy Framework for Connect SoCal

CRA joined a Business and Construction Industry Coalition in submitting comments concerning the Greenprint and the Draft Regional Advanced Mitigation Program (RAMP) Policy Framework that was presented at the February 18, 2022 meeting of SCAG’s Regional Advance Mitigation Planning Advisory Task Group. 

The comments include concerns over the ways that SCAG is proposing to implement two aspects of Connect SoCal: (i) the Greenprint, related to regional data sharing, and (ii) the Regional Advance Mitigation Program – or RAMP, related to land conservation and mitigation. SCAG’s current proposals are unfolding in ways that threaten to harm the region’s ability to achieve the infrastructure and housing benefits that Connect SoCal promises. 

Read the letter here, also available on CRA's member portal.
Cal/OSHA Update

The CalOSHA Standards Board readopted the ETS at their Thursday April 21st meeting.

This new ETS is in effect through Dec. 31, however it can be replaced at some point within that time frame. Paid sick leave expires end of September, but we will still have exclusion pay for several months afterwards through the end of the year. This is the fifth set of different rules since the start of the regulation. A permanent rule is expected after this year, which will constitute the 6th set of rules. As a member of the advisory committee, CRA Vice President Steve McCarthy will continue to keep our members updated.

Reach out to Steve with any questions.
Prop. 12 Update: Supreme Court to Consider California Rules Regarding Treatment of Pigs

The Supreme Court will consider whether California’s protection of livestock unfairly burdens pork farmers across the nation.
Examination of PierPASS and Public Hearing on Gate Management at the San Pedro Bay Port Complex 

CRA joined a letter from a group of port users and the ports of Long Beach and Los Angeles – expressing encouragement that the FMC is holding a session on PierPASS, requesting systematic examination of gate management at the San Pedro Bay be conducted and further requesting that a public hearing to consider long term gate management solutions at the ports of LA and Long Beach.

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

CRA sent a letter to the Los Angeles City Council opposing the scheduling ordinance (Council File 19-0229). If enacted in its current form, this ordinance would be among the most restrictive in the country to the detriment of both employers and employees.  

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

NRF Stresses Urgency with West Coast Port Contract Negotiations

To avoid additional supply chain disruptions, the National Retail Federation is encouraging the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) to begin contract negotiations well before the June 30 contract expiration. 

Read NRF's release here and their letter to the International Longshore and Warehouse Union and Pacific Maritime Association here. CRA is supporting these efforts.
CRA In The News
In Case You Missed It...

RETAIL THEFT

Op-ed: Political leaders must lead fight against organized retail crime
Capitol Weekly

Rep. Young Kim introduces bill to address organized retail crime
Orange County Breeze

Political leaders must lead fight against organized retail crime
The Ripon Advance

Rep. Kim introduces bill to improve enforcement coordination, crack down on retail crime
Homeland Preparedness News

Retail theft bill withdrawn after Assembly committee proposes narrow amendment 
Southern California Record

Lawmakers spar over crime policy
CalMatters E-News

California legislature to hear bill aimed at deterring serial retail offenders
Fox News Digital Originals
 
John & Ken Show April 5 Podcast
KFI 640AM Los Angeles
 
Lawmakers Are Calling for Action on Growing Retail Theft in California
KCRA3 TV (NBC) Sacramento

Cal Retailers CEO and Californians for Safe Stores and Neighborhoods Statewide Chair Responds to AB 2390 Being Pulled by Author from Assembly Public Safety Committee
Los Angeles Post

New bill aims to stop California’s repeat retail theft, provide diversion programs, job training
Northern California Record

California Retailers Behind Bill to Address Theft Under Prop 47
The Business Journal

Proposed CA Bill Aimed at Cracking Down on Brazen Retail Robberies Put on Pause
ABC 7 Los Angeles

Bill aimed at retail thieves dies in committee
Thousand Oaks Acorn

Charges Brought Against 9 People in California Retail Theft Ring
LA Weekly

The Business Journal

Proposed changes to California's prop. 47
KTVU 2 (Fox) Bay Area

New proposal aims to prevent organized retail theft California 
KTXL 40 (Fox) Sacramento

CA Attorney General lays charges in statewide retail theft ring that hit several Bay Area counties
ABC 7 Bay Area

9 people charged in organized retail theft ring in California 
KMPH 26 (Fox) Fresno

Attorney general announces felony charges against members of statewide organized retail theft ring
Lake County News

Attorney General Bonta Announces Felony Charges Against Members of Statewide Organized Retail Theft Ring
Office of the California Attorney General Rob Bonta

Retailers organize coalition to combat 'smash and grab' theft
Southern California Record

New campaign aims to discourage retail theft
KRON 4 Bay Area News

Special Report: Fight against organized crime
Fox11 Los Angeles

No longer the 'mask police': End of mandates brings relief for (some) business owners
USA Today

OTHER ISSUES

Industry groups divided on weight loss supplement bill
Beauty Mantin

You Can Now Get COVID Sick Leave Again in California
KQED
CRA Outreach & Activities
CRA President and CEO Rachel Michelin Honored at National Association of Women Business Owners 26th Annual Outstanding Women Leaders Awards

Rachel was among the finalists nominated for the Against All Odds category for her work advocating for and protecting California's retail industry throughout the many challenges presented by the pandemic. She was recognized at a special dinner hosted by NAWBO, which was held at Sacramento Municipal Utility District's new Museum of Science and Curiosity Center.
CRA President and CEO Rachel Michelin to Speak at BizFed Institute's Sustainable Commerce & Supply Chain Forum

The BizFed Institute is hosting a virtual forum to look at the obstacles that the supply chain faces today and in the future. The Forum will develop actionable next steps and solutions to these prominent challenges and find ways for businesses to navigate increased costs in the movement and distribution of goods regionally in Southern California. Goods movement participants will include representatives from the retail, trucking, shipping, warehouse and rail industries. Conversation will cover distribution to the consumer both from direct delivery and conventional retail. The future of business will examine the ever shaping intricacies of multiple types of goods to the end user. This includes everything from cars to grocery to clothing and more. 


CRA will also be participating in NRF Protect 2022. Click here to view the agenda.
CRA President and CEO Addresses San Francisco Chamber of Commerce During Annual CityState Sacramento Trip

The event included a delegation of business, civic and government leaders and "provided a unique opportunity to learn from local leaders working together on priorities that enhance the economic viability of San Francisco." Rachel spoke on a panel about the "State of Retail, Tourism and Crime in California".
Monthly Policy Calls
The following includes the remainder of the 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.

  • April 22
  • May 27
  • June 24
  • August 26
  • September 23
CRA Member News & Highlights
Amazon Announces Welcome Door Initiative to Assist Refugees and the Humanitarian-Based Immigrant Population

Amazon launched the Welcome Door Initiative. The Welcome Door Initiative provides a new benefit to employees in the U.S. who have work authorization through a humanitarian-based Employment Authorization Document (EAD). Prior to this announcement, employees were forced to navigate immigration benefits on their own. With the current demand to help refugees and asylees resettle in the U.S., Amazon is ready to lead by providing new resources and support for this population. Read more.
Resources for California’s Appliance Efficiency Regulations (Title 20)

It’s no surprise that consumers are changing their purchasing behaviors to be more sustainable and environmentally friendly. However, that raises the question of, “How can businesses easily provide customers with products that align with their values?” If you find yourself in this camp, look no further.

California’s Appliance Efficiency Regulations (Title 20) ensure that California consumers are only offered energy- and water-efficient products. However, it is up to retailers to ensure they are verifying that the products they sell (both online and in-store) are compliant. 

If you’re asking yourself, “What is Title 20? Why is it important? What’s my role in all of this?” then this is your lucky day. Energy Code Ace, a program that offers no-cost tools, training and resources to help retailers comply with Title 20, has just published two new fact sheets on Title 20 Basics and MAEDbS 101, both of which may be downloaded here.
 
Retailers play a significant role in ensuring customers are only offered the efficient, compliant products they want, and the environment needs. Identifying compliant products that consumers are looking for has never been easier. Make compliance a priority today and let our team know if you have any questions at title20@energycodeace.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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