CRA Member Newsletter- End of Summer 2023 Edition

CRA Member Newsletter

September 01, 2023 | CRA Newsletter: Legislative, Budget, Regulatory, Local, Political & Other Updates

Message from the President

What a week. As we approach the final two weeks of the legislative session, I am proud of what the CRA team as already accomplished. I hope you will take a few minutes to read all of what the CRA team has been working on below.

This week we have two HUGE CRA wins! We negotiated with the Governor and author of SB 553 (Workplace Violence) resulting in CRA removing our opposition and, because of CRA's leadership and advocacy, we were able to keep AB 1347 (receipts bill) from moving to the Senate floor.

I hope you will consider joining us next month in Irvine for our Annual Meeting (details below). We have a great agenda and look forward to having robust conversations with members on issues important to the retail industry in California.

Rachel

In this Issue:

Legislative Updates
Regulatory Updates
CA Community Pharmacy Coalition Updates
CRA Annual Meeting
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), CRA successfully negotiated new language, with a big help from the Governor's office, which allowed us to formally remove our opposition. The new language completely rewrote Section 4 of the bill, which details the Workplace Violence Prevention Plan and the updated language mirrors what is the Cal/OSHA proposed regulations. Specifically, the rewritten language excludes any reference to confronting suspected shoplifters, the issue we heard most from our members. It is important to note that Section 1 & 2 of the bill that deal with TRO's and Section 3 of the bill that deals with Illness and Injury Prevention Program (which was part of the Cal/OSHA draft regulations) are untouched with the recent amendments. See here for the amended language that will officially be in print over the weekend.

Appropriations/Suspense File Update

The Assembly and Senate Appropriations Committees dispensed with their respective suspense files Friday, September 1. See below for an update on priority bills CRA has been tracking. Please reach out to Ryan if you have any questions or would like more information.

CRA Oppose

ACA 1 (Aguiar-Curry) Local Government Financing -- Passed

AB 524 (Wicks) Family Caregiver Status -- Passed

AB 647 (Holden) Grocery Workers -- Passed with Amends

AB 853 (Maienschein) Grocery/Chain Drug Acquisition -- Passed

AB 1347 (Ting) Receipts -- Failed

AB 1356 (Haney) Relocations, terminations, and mass layoffs -- Passed with Amends

AB 1546 (Gabriel) Privacy Statute of Limitations -- Failed Passage

SB 253 (Wiener) Climate Corporate Data Accountability Act -- Passed with Amends

SB 261 (Stern) Greenhouse gases: climate-related financial risk -- Passed with Amends

SB 365 (Wiener) Civil Procedure: Arbitration -- Passed

SB 616 (Gonzalez) Paid Sick Days -- Passed with Amends

SB 627 (Smallwood-Cuevas) -- Displaced Workers -- Passed with Amends

SB 777 (Allen) Grocery Bags -- Passed with Amends

CRA Support

AB 376 (Villapudua) Cal Grant C -- Passed

SB 339 (Wiener) HIV PrEP/PEP -- Passed with Amends

SB 430 (Dodd) Tied-House Exception -- Failed Passage

Data Broker Legislation

CRA is actively working to oppose SB 362 (Becker ), which unfortunately is moving to the Assembly Floor. Although this bill exempts businesses that have a direct relationship with consumers (for now), SB 362 will impact CRA's members abilities to gather marketing data from everyone other than major social media companies.

The bill would cause anticompetitive effects and strengthen the grip of social media giants in the data ecosystem. There are no requirements that 3^rd parties to authenticate consumers and provide clear disclosures to consumers about the impact to deleting their data. By limiting the ability of data brokers to compete effectively in the marketplace, the bill would benefit social media giants who are exempt from the proposed bill.

Businesses seeking to reach consumers use the data available for them to deliver a timely and relevant message. If data broker information is deleted, the only option will be large social media platforms. SB 362 would allow third parties, like pay-for-privacy services and other intermediaries, including vast social media companies, to send mass deletion requests to competing data brokers. This would give them undue power to control over how data services are made available to consumers, non-profits, businesses and governments.

If you have any specific comments or concerns on this bill please email Ryan as soon as possible.

Legislative Deadlines

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
January 3 - Legislature reconvenes from Interim Recess

For tentative Assembly floor session schedule the week of September 5 click here. Senate floor session will be similar.

Unemployment Insurance for Striking Workers

SB 799 (Portantino) was recently amended that will, if passed, allow workers who have been on strike for two weeks to receive unemployment benefits from the state. This proposal is similar to AB 1066 in 2019, which failed passage by one vote on the Senate floor.

This updated proposal comes at a time when the unemployment insurance fund is around $18 billion in debt and the Employment Development Department (EDD) is going through a major overhaul given the rampant fraud EDD experienced during the pandemic. SB 799 will add an estimated $200 million to the UI Fund debt, a cost that will burden all employers with higher taxes even if they are not experiencing a strike.

SB 799 passed out of the Assembly Appropriations committee today and will head to the floor. CRA is working with a broad industry coalition to prevent this bad legislation from passing. See here for the floor alert.

Homelessness Drug Addiction and Retail Theft Reduction Act

The HOMELESSNESS, DRUG ADDICTION, AND THEFT REDUCTION ACT was filed with the California Secretary of State by the proponents of the initiative, the California District Attorneys Association (read the language here).

Pause Button Campaign

CRA is part of a "Hit the Pause Button" letter writing campaign, which was created for use by any employer in the state to send a letter directly to the Governor and their specific Senate and Assembly representatives in opposition to new employer mandates being considered in the remaining weeks of session.

The specific bills addressed in this campaign are as follows:

AB 524 (Wicks); dramatically expands family caregiver status, increasing employment costs and potential litigation against CA employers;
SB 365 (Wiener); increases employer defense litigation costs by undermining arbitration laws;
SB 399 (Wahab); creates new litigation against employers related to political speech; (Successfully paused)
SB 616 (Lena Gonzalez); increases employer costs by more than doubling the number of paid sick leave days; and
SB 799 (Portantino); further indebting the -$18B UI system and increasing payroll taxes on employers by allowing striking workers to collect unemployment from a fund that is bankrupt.

Here are the links to the "Hit the Pause" website as well as the direct link to the "ACT NOW" page:

Hit the Pause website link: https://thepausepledge.com/#
ACT NOW link: https://californiaemployersvoice.quorum.us/campaign/47792/

Two Year Bills

CRA secured wins with the following bills turned into two year bills. This means the legislation cannot be taken up until January 2024 and gives our members valuable extra time for the CRA team to educate and advocate on these bills.

SB 399 (Wahab) Employer communications: intimidation. This bill severely restricts communications between businesses and their employees. Additionally, employers could not stop an employee from refusing to participate in meetings or communications regarding pending legislation or regulations. CRA opposes this bill.

SB 707 (Newman) Responsible Textile Recovery Act of 2023. CRA has worked with the author throughout this year highlighting the need to iron our major concerns retailers have with the language. Currently as written, the bill could not be implemented and would be a huge burden on retailers. CRA has committed to working with the author to craft workable language that and the author has committed to only moving forward with the bill if it is realistically implementable without unreasonable impacts on retailers. Senator Newman will be at CRA's Annual Meeting in October (continue reading for details on how to attend).

Regulatory Updates

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

CalRecycle Updates

SB 54 Updates

July Workshop Slides and Rulemaking Timeline Update:

CalRecycle hosted informal rulemaking workshops on July 24 and 25 on the topics of recycling rate, compostable materials, reusable/refillable, producer definition, the producer responsibility plan, data reporting, updates on the needs assessment ecomodulated fees, updates on the needs assessment, the advisory board and enforcement. These workshops included informational sessions and provided an opportunity for public feedback on rulemaking concepts. Click HERE for the July 24 workshop slides and HERE for the July 25 workshop slides.

As a reminder, CalRecycle will accept written feedback on the July workshop content until August 8, 2023. The rulemaking concepts can be found in the discussion documents on the SB 54 webpage, along with suggested guidance for submitting written feedback in the discussion documents. Please note, there is no discussion document on the needs assessment.

SB 54 Rulemaking Timeline Update:

CalRecycle staff are currently drafting regulation text and incorporating the feedback received over the past several months of public workshops. The Agency's goal is to release draft language for public review and comment in the fall, at which time CalRecycle will host public workshops to receive additional input before moving into formal rulemaking early next year.

SB 54 Advisory Board:

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.

SB 1013 Updates

CalRecycle held their third informal public workshop on August 31, 2023 to solicit feedback on draft regulatory language to prescribe a process for the registration of dealers and stewardship plan, reporting and operational requirements for dealer cooperatives. Read the draft language here.

The CRA team attended the workshop and asked questions regarding the draft language on behalf of our members. Read CRA's meeting recap here. Questions on the draft regulatory language are due to CalRecycle by September 14, 2023. Please reach out to Sarah Pollo Moo at sarah@calretailers.com if you would like CRA to submit questions/comments on your company's behalf.

Glass Market Development Payment Program Rate for 2023

CalRecycle announced the publication of the Glass Market Development Payment Program Rate for 2023. This notice is in regards to an incentive payment for manufacturers that use recycled glass beverage containers from California in the manufacturing of new glass beverage containers in this state. Click HERE for more information.

Continuation of Plastic Market Development Payment Program

CalRecycle has published Continuation of the Plastic Market Development Payment Program pursuant to SB1013. Senate Bill (SB) 1013 (Chapter 610, Statutes of 2022) amends Public Resources Code (PRC) Section 14549.2 and Section 14581(a)(8) authorizing the Department of Resources Recycling and Recovery (CalRecycle) to make Plastic Market Development (PMD) payments through June 30, 2025. Click here for more information.

Privacy Updates

The Governor’s Office announced their new appointee to the CPPA Board, replacing Chris Thompson.

Governor Gavin Newsom Has Appointed Jeffrey Worthe to the California Privacy Protection Agency Board

Lead-Acid Battery Fees Regulations

The California Department of Tax and Fee Administration proposes to adopt chapter 8.2, Lead-Acid Battery Fees, of division 2 of title 18 of the California Code of Regulations and Regulations 3210, Definitions, 3220, Manufacturer Battery Fee, 3230, California Battery Fee, and 3240, Written Certification. The chapter and regulations are being proposed to implement, interpret, and make specific the Lead-Acid Battery Recycling Act of 2016 enacted by Assembly Bill No. (AB) 2153 (Stats. 2016, ch. 666) and amended by AB 142 (Stats. 2019, ch. 860).

To view the notice, initial statement of reasons, and proposed text, please click here.

Study Confirms when California Loses Cargo, Greenhouse Gases Increase

A new study confirms GHG emissions are, on average, 19% higher when vessels carrying cargo utilize East Coast or Gulf Coast ports over the ports of Long Beach and Los Angeles. Highlights of the study include:

GHG emissions are, on average, 19% higher when shipping lines utilize East Coast or Gulf Coast ports over the ports of Long Beach and Los Angeles; 26% over the PNW ports.
GHG Emissions can double when cargo is shipped through the Port of New York & New Jersey; up to 92% over the ports of Long Beach and Los Angeles, and up to 104% over the PNW ports.
Moving cargo through Savannah, GA rather than the PNW increases GHG emissions by up to 94%.
Moving cargo through the Gulf Coast rather than the ports of Long Beach and Los Angeles increases emissions by up to 64%.

Read more here. Read the coalition letter submitted to Los Angeles Mayor Karen Bass and Long Beach Mayor Rex Richardson here. CRA continues to work with the PMSA and other stakeholders to push back against the misguided Port Indirect Source Rule and will keep our members posted on future advocacy efforts.

ZE Forklift Rulemaking Update

The state Air Resources Board (CARB) has recently announced their updated timeline for the Zero-Emission (ZE) Forklift rulemaking. The announcement indicated that the staff report would be presented to the Board on October 20, 2023 and the expectation would be for final approval of the rule on May 23, 2024.

CARB has also sent over a draft version of the updated rulemaking that will be presented in October. Read the draft HERE. While CARB staff emphasized that this was still a draft document, it contains some significant changes to the previous rule draft from March 2023 that are cause for concern. Read more.

CRA continues to prioritize rebutting assumptions and feasibility arguments being provided by CARB under this rule and collect data for the sales & use survey. TAKE THE SURVEY HERE.

The coalition is planning to draft a NASCAR letter from multiple parties to provide CARB with the appropriate context and an understanding of how this will affect California’s entire economy. The coalition will be reaching out later in the Fall for that next steps, but would encourage our members with concerns about this rulemaking to reach out directly to the CRA team. The coalition has begun to brief CARB Board Members regarding this rulemaking and the response has been uniformly one of ignorance. Considering the impact of this rule and the manner which CARB staff have undertaken its promulgation, we will continue to brief the Board and key stakeholders.

CARB Truck Regulation Advisory Committee

The CRA Team attended California Air Resources Board's first Advanced Clean Fleets Truck Regulation Advisory Committee or TRAC meeting, which is being formed to assist Agency staff in implementing the ACF regulation still needing approval from the Office of Administrative Law (OAL). Read the meeting recap and get additional information here. With several new rules going to effect in just a few short months, the CRA team is working with CARB to host a webinar for our members to ask questions regarding the ACF regulation.

CalOSHA Updates

Indoor Heat Regulations

Earlier this year, the Cal/OSHA Board held a public hearing to consider the addition of new section 3396 to the General Industry Safety Orders of title 8. The Board received oral and written comments on the proposed revisions. The proposed new standard has been modified as a result of these comments and Board consideration. Read more.

Recent Appointments to the Occupational Safety and Health Standards Board:

Chris Laszcz-Davis (reappointed), Orinda, Democrat, president of the Environmental Quality Organization since 2002;
Joseph Alioto Jr., San Francisco, Democrat, attorney at Alioto Legal since 2020;
Nola Kennedy (reappointed), Los Angeles, Democrat, professor at CSU Northridge since 2013;
David Thomas (reappointed), Manteca, Democrat, president of the Northern California District Council of Laborers since 2017.

Calculation of Estimated Use Tax–Use Tax Table

The California Department of Tax and Fee Administration’s Business Taxes Committee has begun working on revisions to Regulation 1685.5, Calculation of Estimated Use Tax–Use Tax Table, to clarify the regulation, delete outdate provisions, and update the data sources used to compute the percentage of income spent on taxable purchases.

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.

California Community Pharmacy Coalition Updates

Legislative Updates

The CRA team sent counter amendments on AB 1286 to Assemblymember Haney's office and the Board of Pharmacy. The team met with Haney's office to discuss specifics of the counter amendments and has started outreach to the Governor's office in an effort to get the best possible scenario for our members in the bill. The bill will be heard on the Senate Floor next.

The CRA team requested Asm. Berman remove the word 'oral' in his AB 1341 related to the dispensing of control substances for substance abuse disorder, allowing for more flexibility for the types of products being used for the disorder. This will be a good fix for our members if it makes it through the legislative process and is signed by the Governor.

The CRA team and members of the CCPC met to discuss strategy related to enforcement of SB 362 (pharmacy quotas bill from 2021). As discussed, Melissa Starry with Albertsons offered to submit questions to the Board of Pharmacy’s “Ask an Inspector” inbox. If you have any questions you’d like Melissa to submit, please send them to her at Melissa.starry@albertsons.com. The CRA team is also working on two letters that will be to/from Senator Newman. CRA President and CEO Rachel Michelin has been in direct communication with Sen. Newman on this issue. He reiterated his willingness to work with us to ensure SB 362 is being implemented consistent with its intent. The CCPC will wait until after session adjourns/AB 1286 is dispensed to meet with him.

Board of Pharmacy

The Board of Pharmacy is holding their next board meeting on Tuesday, September 12. View the Board Agenda HERE. Included in the agenda is a discussion and consideration of a draft proposed policy statement related to implementation of USP General Chapters 795 Pharmaceutical Compounding – Nonsterile Preparations; 797 Pharmaceutical Compounding – Sterile Preparations; 800 Hazardous Drugs – Handling in Healthcare Settings; and 825 Radiopharmaceuticals – Preparation, Compounding, Dispensing, and Repackaging. CRA will be attending the meeting and report back to the CCPC.

Medi-Cal RX

The California Department of Health Care Services has released FAQs related to the recommencement of Medi-Cal pharmacy retroactive claims adjustments. Access the FAQs HERE. As a reminder, the recoupment process begins this month with recoupments resuming in October.

CRA Outreach and Activities

CRA Annual Meeting

Early Bird Discount Ends THIS Monday, September 4

Program Agenda Now Available

CRA's Annual Meeting is quickly approaching! We are looking forward to seeing everyone on Monday, October 2 and Tuesday, October 3 at the Irvine Marriott located at 18000 Von Karman Ave, Irvine, CA 92612. Special guests include:

Senator Josh Newman, Author of Senate Bill 707
Commissioner Sean Duryee, California Highway Patrol
Honorable Chief Justice Tani Cantil-Sakauye, President and CEO, Public Policy Institute of California
Yolo County District Attorney Jeff Resig
California District Attorneys Association CEO Greg Totten
National Stewardship Action Council Executive Director Heidi Sanborn, MPA
Jim Gatto, seasoned veteran of AI
And More!

Topics include Retail Theft/ORC; Environmental Sustainability and Extended Producer Responsibility including updates and discussion on SB 54 and SB 1013; Labor & Employment issues; 2024 political forecast; updates on the California legislative and regulatory environment.

Agenda Now Available. View the Agenda HERE.

Tickets and sponsorship packages are going fast and we will sell out. Register/sponsor today so you do not miss out out on this great education, information sharing and networking opportunity between policy leaders and members of the retailers and larger business community. For questions email sarah@calretailers.com.

Thank you to Our Sponsors!

SPONSOR HERE!

ORC Retail Theft Grant Information

The Budget Act of 2022 (Senate Bill 154) established the Organized Retail Theft (ORT) Prevention Grant Program. Per the state Budget Act, funding for the Organized Retail Theft Grant Program shall be for competitive grants for city police departments, county sheriffs’ departments, and probation departments. Grant funds shall be used to support local law enforcement agencies in preventing and responding to organized retail theft, motor vehicle or motor vehicle accessory theft, or cargo theft.

Grants have already been submitted by law enforcement agencies across the state and the Board of State and Community Corrections (BSCC) will finalize the recipients of the grant money mid-September with the grant period commencing October 1, 2023 and lasting through the end of 2026. CRA will update our members on those local agencies who have been selected and, if you have not already done so, we recommend members to contact those agencies to see how retailers can be helpful partners.

The CRA team attended the Council of State Retail Associations (CSRA) Annual Meeting, which was held in San Diego. As California was the host state this year, with CRA President and CEO on the CSRA Board of Directors, the CRA team had a large role in the conference programming. Included at the event was a panel focused on Pharmacy's role in advancing health care access and equity. The panel was moderated by Michelin and included the Illinois Retail Merchants Association, National Association of Chain Drug Stores and CVS health.

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.

September 8

In The News