January 30, 2026 | CRA Member Newsletter Updates: Legislative, Regulatory, Federal, Local & Legal, Members News and Reminders & More. | | Message from the President | | | |
Happy New Year. I cannot believe we are already at the end of the first month of 2026 and, as usual, it has been a busy one!
First, I am pleased to report that, due to the outstanding work of the CRA team, Assembly Bill 405 (The Fashion Act) has been held in committee and is officially dead for the year.
This outcome is a direct result of CRA’s strong California presence, our trusted brand with policymakers, and the deep, bipartisan relationships we have built across the Legislature. It underscores the real value of having a California-based association with credibility, access, and influence at the Capitol and the ability to translate that into concrete results for our members.
A huge thank-you to Ryan and Jacob, who met with numerous legislators and personally dropped into a number of offices to make the case. Their work, along with the broader efforts of the CRA team, was instrumental in clearly demonstrating how detrimental this bill would have been to California consumers and the retail community.
This is exactly what effective, relationship-driven advocacy looks like and exactly why CRA’s voice continues to matter in Sacramento.
California Attorney General Rob Bonta recently announced that this office is launching an investigation into so-called “surveillance pricing” practices - focusing on whether companies use consumer personal data to set or adjust prices. This investigation reflects increased regulatory scrutiny at the intersection of consumer privacy, algorithmic decision-making and pricing practices. While California law already regulates how consumer data is collected and disclosed, the AG's Office is signaling interest in how data may be used downstream, including for pricing. California has historically served as a policy bellwether, and similar inquiries or legislative efforts may follow in other states. Keep reading to get more information on this latest development on the regulatory side.
Surveillance pricing will continue to be one of our top priority issues in 2026 and we encourage our members and their subject matter experts in the area of privacy, AI, surveillance pricing and related subject areas to attend our upcoming Advocacy Days - Tuesday, March 3 and Wednesday, March 4 - which is a unique opportunity to educate policymakers on critical issues impacting retail. While the AG announcement itself is not surprising, it reinforces my view that this will be a major issue this year—and, if Governor Newsom chooses not to engage (which I am increasingly inclined to expect), an even bigger issue for the next administration. We will need to do significant education and engagement around this topic and underscores the importance of a coordinated California-focused strategy moving forward. This will be a major focus at our Advocacy Days. Get more information including registration and sponsorship opportunities further down in our newsletter. For questions about the event, contact sarah@calretailers.com.
Another priority issue we will be discussing and educating policymakers on during our Advocacy Days includes environmental issues such as California's Corporate Climate Reporting Regulations and the implementation of Senate Bill 707 - the Textile EPR in addition to the overall costs of these EPR programs and how we can work collaboratively to maintain focus on achieving environmental sustainability goals while also keep the costs in check for producers and consumers. There is also another open comment period underway with CARB - please send your feedback to our team by next Wednesday, February 4. Continue reading to get more information on the rulemaking processing including current legal updates.
Also, hot off the presses last night, CalRecycle released their highly-anticipated updated regulatory text for California's SB 54 Packaging EPR law, which, on our first read, include substantive changes to the food and agriculture exemption process. Keep reading to get our complete update on this issue and be sure to have your legal, compliance and sustainability teams review and send feedback to our team by February 11 to be included in our next comment letter, which is due to CalRecycle February 13.
And finally, as an update, the SB 707 PRO application, of which CRA is leading the charge, was submitted to CalRecycle and the decision deadline is March 1. This is another example of the CRA working to implement the goals of environmental sustainability while advocating to keep compliance costs in check. If you would like more information on our application, please do not hesitate to reach out.
Rachel
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In This Newsletter Issue:
- CRA Advocacy Days - Register Today!
- Legislative Updates
- Regulatory Updates
- Federal and Local Updates
- Member News and Reminders
- Outreach and Other Activities
| | | Registration and Sponsorships Now Available for 2026 Advocacy Days | | | |
We invite you to join the CRA team and fellow retail leaders in Sacramento as we engage directly with policymakers on the issues that matter most to our industry and to the communities we serve. Together, we will share the real-world impact of proposed policies and regulations and highlight practical solutions that help protect affordability for California consumers.
Your voice makes a difference. Advocacy Days is a powerful opportunity to strengthen relationships with lawmakers, elevate the retail perspective, and ensure that decision-makers understand how their policies affect jobs, prices, and everyday Californians.
We look forward to seeing you in Sacramento and working together to shape smart, balanced policy for California’s retail future.
CRA Advocacy Days is open to CRA members ONLY. Cost: $50. Space is limited. Registration is required.
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The legislature is back and bills are slowly being introduced but that will pick up as we get closer to the February 20th bill introduction deadline. Be on the lookout for emails asking for feedback on bills in the coming weeks. Bills that are still in their house of origin and have not been voted on this week are now dead. Below are updates on a few bills and ideas we know are going to be introduced in coming weeks.
Failure to Pay Wages: Penalties
SB 310 (Wiener) - Senator Wiener confirmed yesterday that this bill will not be moving forward this year. We are unsure if he will introduce the bill again, but this was a huge win. CRA was very active with the Chamber-led coalition to defeat this effort and we applaud everyone involved.
California Fashion Act: AB 405
Due to the tireless work of the CRA team, AB 405 has been held in committee and is officially dead for the year. This is a huge win for our industry. That being said, we will continue to monitor bill introductions to see if the Fashion Act gets reintroduced. We have not heard one way or the other regarding a potential reintroduction, but given the multiple attempts in other states, CRA will be ready to engage again should we need to.
Indirect Source Rule
AB 914 (Garcia) - This bill is dead (no longer moving forward), but we do expect a reintroduction of a bill on this issue. As we continue to monitor bill introductions, we will update our members once we see this bill introduced.
BPA Ban in Receipts: AB 1604
Assemblymember Stefani has introduced AB 1604 (Stefani) that will ban intentionally added bisphenols in receipts. Specifically, the bill would ban BPA in receipts starting January 1, 2027, and ban all bisphenols from receipts starting January 1, 2028. This is similar to efforts a few years ago by former Assemblymember Phil Ting. The author's office reached out to CRA on this bill and is open to all feedback. We need feedback ASAP on the timeline and feasibility of this bill so we can follow up with the author's office. Please send feedback directly to Ryan@calretailers.com.
The Right to Human Customer Service Act: AB 1609
Assemblymember Zbur introduced AB 1609 (Zbur) that would require large private businesses to provide consumers with human customer service support and communications during the business hours of 8 a.m. to 6 p.m. daily. Additionally, this bill requires online customer service platforms to give customers the option to request customer service assistance from a human being, and upon that request, require the operator of the online platform to provide human assistance within five minutes after the request was made. We need very specific examples of why this would be difficult to implement and, if any, amendments that would make this easier to comply with. Please send feedback directly to Ryan@calretailers.com.
Common Cents Act: Rounding Cash Transactions
Assemblymember Ward plans to introduce a bill to address the penny shortage and allow business to round final cash transactions to the nearest nickel. The author's office reached out to us on this bill to gather feedback and has committed to taking all concerns into consideration. While there is no bill yet, we know he will introduce it in the coming weeks and it will mirror what has been introduced in New York, see HERE for the New York legislation. Please review the New York legislation and provide feedback ASAP. Please send feedback directly to Ryan@calretailers.com.
Social media Platforms: Advertising: Tax
We are pleased to report that AB 796 (Lowenthal), which CRA opposed, was held in the Assembly Revenue & Tax Committee and is dead and no longer moving forward.
Railroads: Safety: Wayside Detectors
CRA joined an opposition letter to SB 667 (Archuleta) that would make it more difficult to move goods around the state and create a patchwork of rules across a national rail system, resulting in supply chain delays and increased costs. The CRA Team also opposed the bill in committee. Read the letter HERE. The two-year bill passed out of its House of Origin and is now in the second house (Assembly).
New Assembly Committee Assignments
Assembly Speaker Robert Rivas made a number of changes on Assembly committees including replacing several chairs and making a number of committees larger including Business & Professions. Get more information HERE.
Legislative Deadlines
- January 31 - Last day for each house to pass bills introduced in each house
- February 20 - Last day for bills to be introduced
- March 26 - Spring Recess
State Budget Update
While Governor Gavin Newsom identified a deficit of under $3 billion in his 2026-2027 state budget proposal released earlier this month, the non-partisan Legislative Analysts' Office says the figure is closer to $18 billion. Lawmakers seem skeptical of the projections from Newsom's office - and see threats to services everywhere. Read more.
| | Federal, Local & Legal Updates | | | |
Federal Updates
Penny Production Cessation FAQs | U.S. Department of the Treasury
The US Department of the Treasury posted FAQs regarding the discontinuation of the penny. It is also our understanding that since the Treasury has put out guidance, USDA will follow in terms of impacts to SNAP. Click HERE to access the FAQs.
Local Updates
Costa Mesa Self-Checkout Ordinance Update
The City of Costa Mesa is considering a draft ordinance regulating self-checkout. The City Council passed the ordinance on first reading on Tuesday, January 20. Next steps is a final vote at their next meeting on Feb. 3, which CRA's Ryan Allain will be in attendance and testifying.
CRA President and CEO Rachel Michelin sent a letter to Costa Mesa Mayor John Stephens outlining our strong concerns with Costa Mesa’s proposed self-checkout ordinance and Ryan Allain testified in opposition during the meeting.
The ordinance is duplicative of recent state action addressing retail theft and workplace safety. The proposed requirements will increase operating costs for retailers and impact consumers at a time when affordability remains a serious concern for California families.
With comprehensive retail theft reforms now in place statewide and additional Cal/OSHA regulations being implemented, there is an opportunity for Costa Mesa to pause and consider a more coordinated, cost-conscious approach that advances public safety without unintended economic consequences.
Read the CRA letter HERE.
View the draft ordinance HERE.
Los Angeles Draft CII Permit Update - Feedback Due Today
The Los Angeles Regional Water Quality Board (Board) recently held a workshop on the draft Commercial, Industrial, and Institutional (CII) Permit. The Board directed staff to outreach to stake holders to discuss various topics for which board members requested additional input with the understanding that these discussions would help facilitate further refinements to the draft Permit that staff plan to report back to the Board by the end of the first quarter of 2026. These included:
- Who should be the permittee
- Option 1 capacity and pricing
- Permit implementation timing
- Application of the Permit to properties with Mixed Use designations
- Initial sampling requirements
- Definition of permeable surfaces
CRA is working with a broad coalition to submit redlines to the Board and the initial submission deadline is today.
There will be additional opportunities for feedback but the Board staff is moving quickly on this Permit so the coalition is looking to get feedback ASAP.
For more information on the draft Permit, please see HERE.
To see the revised draft Permit, please see HERE.
For more information, don't hesitate to reach out to Sarah or Ryan.
San Diego Tourism Workers Minimum Wage Increase
San Diego is set to implement the new, industry-specific minimum wage for tourism workers starting July 2026, part of a phased plan to reach $25 per hour by 2030. While the citywide minimum wage rises modestly to $17.75, tourism employers will face significantly higher labor costs.
Local businesses warn the wage hike could strain operations and force price increases for consumers. Hotel and restaurant owners say they may need to reduce hours, shift responsibilities, or pass costs onto guests, potentially making San Diego less competitive in tourism and hospitality. Even employers whose workers already earn above the new minimum may feel pressure to maintain pay gaps, further increasing expenses.
Read more HERE.
Los Angeles County Sales Tax Increase Proposal
Restore Healthcare for Angelenos is pushing to place a measure on the June ballot that would ask Los Angeles County voters to decide whether the county could impose a half-cent sales tax through 2031. The money would go toward helping residents pay for primary and emergency care, as well as behavioral health needs for people who have lost their Medi-Cal coverage due to federal government healthcare cuts.
The coalition says the proposal would raise about $1 billion a year, and it's working with Supervisor Holly Mitchell to present the motion to the county. The board is expected to vote on the proposal next month. If it rejects putting the initiative before voters in June, the coalition will try for the November ballot.
Get more information HERE.
PAGA Case: Leeper v. Shipt - RLC et al. Amici Brief and Motion for Judicial Notice
CRA is a plaintiff, along with the Retail Litigation Center, Inc. (RLC), National Retail Federation (NRF), US Chamber of Commerce, California Chamber of Commerce and National Federation of Independent Business (NFIB) in a case that has been submitted to the CA Supreme Court: Leeper v. Shipt - RLC et al. Amici Brief and Motion for Judicial Notice.
The RLC, NRF, CRA, Chamber, CalChamber, and NFIB and their respective members and affiliates are frequent targets for claims under the Labor Code Private Attorneys General Act of 2004 (PAGA), and they have an interest in ensuring that PAGA is interpreted and applied in a fair and balanced way for both employers and employees, consistent with what the Legislature intended when it enacted and amended PAGA. The Court’s decision in this matter will significantly impact amici’s interests, and those of California employers generally, given the proliferation of “headless” PAGA actions as a mechanism to evade arbitration and perpetrate shakedown PAGA lawsuits. Amici are uniquely situated to offer context for the Court and provide insight into the practical ramifications of permitting “headless” PAGA actions.
Read the legal amici brief HERE.
Read the short motion for judicial notice of relevant legislative history materials that are not readily available online, which were submitted to the California Supreme Court HERE.
| | CRA Member News and Reminders | |
CRA Work Groups
The CRA Team has started our 2026 work group meetings - our Monthly Policy, Environmental Sustainability, Food, Alcohol and Grocery and Community Pharmacy Groups all had initial meetings this month and we are working on planning more. If you haven't yet, we encourage you and your teams - including your subject matter experts - to sign up for CRA's working groups today!
Click Here to View and Sign Up for CRA Work Groups
| Other Outreach and Activities | | |
City of Santa Barbara Retail Symposium
CRA President and CEO Rachel Michelin was invited by the City of Santa Barbara to speak on a panel for the City’s first retail symposium, which included the Santa Barbara City Council. Michelin was joined on the panel by Rick Lemmo, Senior Vice President, Caruso Properties and Mark Ingalls, Property Manager, Camino Real Marketplace, Goleta. The panel discussion included retail trends at the State and regional levels such as the changing landscape of retail since 2018.
The symposium followed a Visit Santa Barbara Retail Tourism Summit, which Michelin was a featured speaker. The symposium was organized to educate the Santa Barbara City Council on the various facets of downtown retail, how it has evolved over the years, and what should be key considerations for the City when thinking about improving economic vitality in downtown Santa Barbara.
Local media coverage of the Symposium:
Santa Barbara News-Press
KYET Radio - Local Santa Barbara ABC and CBS Affilate Station
The Santa Barbara Independent
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Visit Santa Barbara Annual Tourism Summit
CRA President Michelin attended Visit Santa Barbara’s Annual Tourism Summit: A Look Ahead: Insights, Advocacy, and the Future of Tourism. The Summit brought together statewide and national leaders to explore the forces shaping the next chapter of travel.
Michelin spoke on a panel alongside Lynn Mohrfeld, President and CEO of the California Hotel & Lodging Association. The panel focused on tariffs and policy impacts, workforce challenges, the interplay of lodging, retail, and restaurants, California’s regulatory environment, and the growing influence of AI.
The summit provided an exclusive opportunity for Visit Santa Barbara members to gain timely insights and valuable industry perspective.
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RILA Retail CEO Forum
CRA President Michelin attended the Retail Industry Leaders Association (RILA) annual Retail CEO Forum, a gathering for chief executives from the most recognized retail and product manufacturing brands. Over the course of three days, leaders engaged in candid conversations, shared unfiltered insights, and tackled the most pressing issues facing the industry—from AI and consumer shifts to workforce transformation and global risk.
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CA Mattress Recycling Program 10 Year Anniversary
CRA's Sarah Pollo Moo attended an event highlighting the 10-year anniversary of California's mattress recycling program, which included Senator Catherine Blakespear, Chair of Senate Environmental Quality Committee, CalRecycle Michelle Martin, Deputy Director of CalRecycle's Division of the Circular Economy, Mike O'Donnell, Chief Operating Officer for the Mattress Recycling Council, the state's mattress recycling stewardship program operator, and Doug Kobold, Executive Director of the California Product Stewardship Council (CPSC). The event included a tour of a mattress recycling center - DR3 Mattress Recycling.
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