CRA Member Newsletter
September 09, 2022 | CRA Newsletter: End of Session Round Up & More Updates
Message from the President
As this newsletter hits inboxes, California is still in the midst of an energy crisis as elevated temperatures across the state put our electric grid to the test. Now we brace for a tropical storm that can impact Southern California with record rain, wind, and lighting strikes on top of numerous fires raging throughout the state. Whether due to policy decisions related to the environment over the past few years or to climate change, it is apparent California has a lot of work to do to when it comes to how we reach our environmental goals. The good news, the California Retailers Association is in the middle of discussions on this issue with state lawmakers, regulators and the Governor’s office and we look forward to engaging our members in thoughtful conversations on how the California retail industry can lead for our employees, our customers and for the communities in which we operate on this important issue.

GOVERNOR NEWSOM SIGNS THE FAST ACT – A NEW NATIONAL PLAYBOOK FOR LABOR

Other national news centering on California includes the Governor’s signature of the FAST Act (AB 257). We joined our colleagues at the California Restaurants Association in opposing the bill, but unfortunately, although it was very close, it did pass the State Legislation and was signed by Governor Newsom.

The FAST Act is now the subject of a referendum campaign. Opponents, led by the National Restaurant Association and the International Franchise Association, have 90 days from the date of the bill’s enactment to collect the requisite number of signatures, based on voter turnout in previous elections, to qualify a measure for the ballot. If a referendum qualifies, the FAST Act could be stayed from being implemented until the voters decide the issue in November 2024.

We can also expect legal challenges based on state or federal constitutional theories of separation of powers and equal protection and, possibly, on the grounds that the FAST Act’s creation of the Council constitutes an unconstitutional delegation of legislative authority. Given the consequential nature of the FAST Act and the examples of other major California policy battles, such as AB 5 and the classification of workers, ongoing litigation over several years is likely, if, should the referendum qualify, is not overturned by California voters.

RETAILERS NEED TO CARE ABOUT THE FAST ACT

The FAST Act could have significant and long-term impacts not only on California’s restaurant industry, but on other industries, including retail, in and outside of California. Proponents of the legislation have made it clear that California, and we have already been told retail is the next industry they are targeting, is a starting point, and copycat legislation may follow in other states in the not-too-distant future, as happened with the Fight for $15 movement. California is one of the most expensive and complex states in which to operate a business, and the passing of the FAST Act may cause business operators and brands to rethink their business model in California, including, specifically, new ways to manage labor. As costs have escalated sharply over the past several years, many companies have looked to technology to replace labor or to reduce the cost of labor. That trend may accelerate with the FAST Act’s passage. In addition, while not specifically mentioned in the language, the FAST Act could also increase the likelihood of more PAGA suits in California.

HELP CRA GET PAGA RELIEF IN 2024

This leads to the next issue of priority for CRA over the next two years – PAGA Reform. The initiative to provide PAGA relief for California’s businesses has qualified for the 2024 ballot and CRA is actively engaged in the public affairs campaign as well as the statewide ballot initiative campaign. I hope you will join me as we discuss next steps on the PAGA initiative with the author of the initiative on September 19th via Zoom. If you or your colleagues are interested in learning more, please email Ryan here and he can send you more information and the Zoom link.

This is our best chance to get much needed PAGA relief but will take significant investment from the retail industry. I am all in and will do whatever I can to ensure the retail voice is represented – in negotiations with the legislature and the Governor and on the campaign trail (if we get to that point), but I cannot do it without the financial investment of retailers. I can assure you, the investment you make in helping CRA with the PAGA campaign will save MILLIONS to your company in PAGA settlements.

Be on the lookout for our annual legislative wrap up and our report of the CRA annual meeting later this month. Lots of new programs and opportunities for CRA members to engage on important issues facing our industry and how we can work collectively on telling the retail story in California.

Rachel
End of 2021-2022 Session Round Up
This past year has seen some historic victories for retail, particularly in the realm of organized retail crime, as well as numerous successes in fending off significant threats to retail supply chains and restrictions on retail business practices. There were, as usual, some disappointments in the Legislature, but we retain hope that the Governor will see fit to address at least some of those issues with his veto pen. 

Below is a quick recap of priority bills that CRA engaged on for the retail industry in California.  

As a reminder - the Governor has 30 days (until September 30th) to sign or veto bills. 

BILLS CRA SUCCESSFULLY ADVANCED ON BEHALF OF RETAIL

SB 301 (Skinner) SUPPORT.  CA INFORM Act. Online marketplace transparency. Requires online marketplaces to verify, and high-volume, third-party sellers to display to the consumer, specific contact information for the seller on the order confirmation and transaction history.     
Status: To the Governor.
Read signature request letter here.
 
SB 154/SB 178 (Budget) SUPPORT. Real Public Safety Plan. ORC Funding. Provides over $100 million annually over the next three years for improved enforcement of retail theft and ORC. Allocates $6 million per year to expand and make permanent the CHP’s ORC Task Force. Includes $10 million annually in grants for dedicated ORC prosecutors, $6 million for a special theft unit at the Office of the Attorney General, and $85 million in grants for additional local law enforcement dedicated to ORC and retail theft.
Status: Chaptered. Effective July 1, 2022
Read support letter here.
 
SB 1215 (Newman) SUPPORT. Embedded Battery Products: E-Waste.  Adds embedded battery products to the state’s electronic waste (E-Waste) program. 
Status: To the Governor.
Read signature request letter here.
 
AB 2406 (Aguiar-Curry) SUPPORT. Ports: Detention and demurrage fees. Expands prohibitions on detention and demurrage fees where pickup or return of a container is impeded by port congestion or other circumstances out of the control of the cargo owner or shipper. 
Status: To the Governor.
Read signature request letter here.
 
SB 54 (Allen) NEUTRAL. Product Packaging: Recycling and source reduction. Provides specific targets for recycling and source reduction of plastic packaging. Includes all packaging types within the stewardship program. This negotiated measure moved the plastic packaging tax off the November 2022 ballot. 
Status: Chaptered. 
Read letter here.
 
SB 1262 (Bradford) Courts: indexes. SUPPORT. Reverses a court decision and restores the status quo for background checks by allowing filtering of court records by date of birth and driver’s license number.
Status: To the Governor.
Read signature request letter here.

SB 1338 (Umberg/Eggman) CARE Court Program. SUPPORT. Authorizes specified adult persons to petition a civil court to create a voluntary CARE agreement or a court-ordered CARE plan and implement services, to be provided by county behavioral health agencies, to provide behavioral health care to adults who are currently experiencing a severe mental illness and have a diagnosis identified in the disorder class schizophrenia and other psychotic disorders, and who meet other specified criteria.
Status: To the Governor.
Read signature request letter here.
 
BILLS WHERE CRA WON AMENDMENTS TO REDUCE/ELIMINATE HARM TO RETAIL

AB 1287 (Bauer-Kahan) NO POSITION.  Gender pricing. Prohibits a person, firm, partnership, company, corporation, or business from charging a different price for any two goods that are substantially similar if those goods are priced differently based on the gender of the individuals for whom the goods are marketed and intended. Authorizes the Attorney General to seek an injunction to enjoin and restrain the continuance of those violations. Authorizes civil penalties not to exceed $10,000. CRA worked with the author and committees to keep a private right of action out of the bill and to cap penalties. 
Status: To the Governor. 
 
AB 2273 (Wicks) NO POSITION. Internet age-appropriate content and data management.  Establishes new privacy standards and internet content restrictions for businesses that offer an online service or product “likely to be accessed by a child”. Prohibits the business from using the personal information of a child to profile the child or use the information in a way that is materially detrimental to the child. CRA obtained amendments that narrow the impact to retail and improve the bill’s right to cure.   
Status: To the Governor
  
AB 1817 (Ting) NEUTRAL. PFAS: textiles.  Prohibits the manufacture or sale of textile articles containing PFAS after January 1, 2025.  Delays implementation for products related to extreme weather conditions to 2028. CRA won amendments to delay implementation to 2025 and 2028, reduce retailer liability and for a more reasonable product testing threshold. 
Status: To the Governor.
Read removal of opposition letter here.

AB 2448 (Ting) NO POSITION. Hate incidents: public settings. Establishes a pilot program for businesses to report incidents of harassment on their premises. CRA won amendments to limit and later eliminate new reporting requirements for retailers.
Status: To the Governor.
 
SB 1162 (Limon) OPPOSE. Pay Data: Job Postings. Requires employers of 100 or more employees to submit specified pay data to DFEH including median and mean hourly rate for each combination of race, ethnicity, and sex within each job category. Requires DFEH to publish the data on its internet website. Further requires employers to include the pay scale for the position for any third-party job postings. CRA successfully lobbied to eliminate the requirement to publish individual company pay data. 
Status: To the Governor.
Read veto request letter here.
 
SB 1044 (Durazo) NEUTRAL. Emergency conditions: employees. Prohibits an employer, in the event of a state of emergency or an emergency condition, from taking or threatening adverse action against any employee for refusing to report to, or leaving, a workplace within the affected area because the employee feels unsafe. Also prohibits an employer from preventing any employee from accessing the employee’s mobile device or other communications device. This bill was amended to limit circumstances where employees can leave the workplace.
Status: To the Governor.

BILLS CRA STOPPED THAT WOULD HAVE NEGATIVELY IMPACTED RETAIL

SB 1189 (Wieckowski) OPPOSE. Employee biometrics. On or before September 1, 2023, requires a private entity in possession of biometric information to develop and make available a written policy establishing a retention schedule and guidelines for permanently destroying the biometric information, as prescribed. Prohibits a private entity from disclosing biometric information unless certain criteria are met, or from conditioning the provision of a service on the collection, use, disclosure, transfer, sale, or processing of biometric information unless biometric information is strictly necessary to provide the service. Authorizes a private right of action for aggrieved individuals.
Status: Failed in Senate Appropriations Committee
Read oppose letter here.
  
AB 2026 (Friedman) OPPOSE UNLESS AMENDEDOnline retail packaging. Prohibits by 2024 for large online retailers, and 2026 for small online retailers as defined, from using expanded or extruded polystyrene or single-use plastic shipping envelopes, cushioning, or void fill to ship products to consumers. 
Status: Failed in Senate Appropriations Committee
Read oppose letter here.
 
AB 2840 (Reyes) OPPOSE. Warehouse siting. Creates extensive “ban zones” for siting of new warehouses over 100,000 square feet in Riverside and San Bernardino counties. Further requires extraordinary mitigation measures beyond those already required in the California Environmental Quality Act (CEQA). 
Status: Failed in Senate Finance and Governance Committee
Read oppose letter here.
 
AB 1192 (Kalra) OPPOSE. Requires employers to report data regarding wages, benefits, scheduling, and safety for their entire United States workforce. The data would be published on the Labor and Workforce Development Agency’s website by employer name.
Status: Failed on the Assembly Floor.
Read oppose letter here.
 
AB 710 (E. Garcia) OPPOSE. Prohibits the sale of certain imported agricultural products unless they are produced in compliance with specified California laws regardless of where they are produced.
Status: Failed in Senate Business and Professions Committee
Read oppose letter here.
 
SB 260 (Wiener) OPPOSE. Greenhouse gas emissions. Supply chain reporting. Requires the reporting of greenhouse gas emission data throughout the entire supply chain to include activities such as business travel, employee commutes, procurement, waste, and water usage, regardless of location.
Status: Failed on the Assembly Floor
Read oppose letter here.
 
SB 1149 (Leyva) OPPOSE. Settlement Agreements. Prohibits confidential settlement agreements and protective orders in actions involving an allegation of product defect or environmental hazard and would subject attorneys engaged in these actions to professional discipline for noncompliance.
Status: Failed on the Assembly Floor.
Read oppose letter here.

 
BILLS CRA OPPOSED; 
CRA WILL REQUEST/HAS REQUESTED VETO FROM GOVERNOR

AB 2440 (Irwin) OPPOSE.  Battery recycling: extended producer responsibility. Creates an extended producer responsibility program for single-use batteries, rechargeable batteries, and battery embedded products up to an unspecified weight. Requires retailers who sell any of these items and have five (5) or more locations in the state to offer their store locations to serve as a collection site for covered items. 
Status: To the Governor.
Read oppose letter here.
 
AB 257 (Holden) OPPOSE. Fast food franchises. Authorizes the creation of a Fast Food Council which would have the authority to set wages and standards for working conditions within fast food restaurants. 
Status: Signed into law by Governor.  
 
AB 2183 (Stone) OPPOSE. Agricultural workers. Unionization. Authorizes the use of a “card check” vote to approve union representation for agricultural workers, or a vote-by-mail option if the employer agrees to relinquish all rights to communication with workers regarding unionization.
Status: To the Governor. 
Read veto request letter here.
 
AB 2777 (Leyva) OPPOSE. Confidential Settlement Agreements. Creates a one-year “reviver” window in which private sector employers can be sued over ancient allegations of sexual assault – “reviving” these claims no matter how far back in time they may have occurred.
Status: To the Governor
Read veto request letter here.
 
SB 1256 (Wieckowski) OPPOSE. Disposable propane tanks. Bans the sale of disposable propane tanks of up to two pounds by 2028.
Status: To the Governor
Read veto request letter here.
 
BILLS SPONSORED OR SUPPORTED BY CRA THAT THE LEGISLATURE FAILED TO ADVANCE
 
No extension of the CCPA exemptions for employee and business-to-business data. 
Read letter here.
 
AB 2390 (Muratuschi) SPONSOR. Retail theft. Penalties. Would have allowed prosecutors to aggregate the value of petty thefts for purposes of charging grand theft. 
Status: Failed Assembly Public Safety Committee.
Read Co-Sponsor letter here.
Additional Legislative Updates
Proposition 12 Update
We wanted to update members on Proposition 12 which was passed by California voters in 2018. As a reminder, this proposition set new standards in relation to hens, veal, and breeding pigs in how they are treated and confined. As part of the initiative, the CA Department of Food and Ag (CFDA) was required to finalize regulations by September 2019. CFDA finally released final regulations three years later.

The California Retailers Association has been engaged on this issue, including direct outreach to the Administration. 

You can access the final regulations here. You can visit CDFA's website here

General points that could be helpful to our members:

  • All products covered under the initiative must include a label that the product complies with Proposition 12.
  • For one year, records need to be kept for all products covered under the initiative
  • Any producer of products outlined in Proposition 12 must register with the CDFA in order to sell their product in California.

These regulations took effect September 1, 2022, but due to the work of CRA and a collaboration of business organizations, a California Superior Court Judge ruled a 180-day stay meaning these regulation will not be enforced until February 28, 2023.

CRA is closely monitoring a current case pending before the U.S. Supreme Court that questions if Proposition 12 is constitutional with opening arguments to begin on October 11, 2022 (National Pork Producers v. Ross) and will continue to update on members as this issue evolves.

If you have any questions or need additional information please do not hesitate to reach out.
Chain Drug Updates
Medi-Cal Rx Updates

MCRxSS Announcement

A weekly notice, Medi-Cal Rx Weekly Wrap-Up for August 19 – August 25, has been posted to the Medi-Cal Rx Web Portal on 8/26/2022.

A new alert, Phase I, Wave III Prior Authorization Submission, has been posted to the Medi-Cal Rx Web Portal on 8/26/2022.

If the above links do not take you to the documents, simply copy and paste the following link into your browser to access the Bulletins and News page: https://medi-calrx.dhcs.ca.gov/provider/pharmacy-news/

For more information, contact MediCalRxEducationOutreach@magellanhealth.com

***Please note: Internet Explorer is no longer a supported web browser. Please utilize Chrome, Microsoft Edge, or another supported web browser when clicking on links for the Medi-Cal Rx Web Portal.

Board of Pharmacy Updates

ID Requirement for CPJE
The Board of Pharmacy reminds pharmacist candidates taking the CPJE on August 26, 2022, that candidates must present TWO different forms of identification listed below at the testing site. At least one ID form MUST contain a PHOTO. Photocopies, temporary identifications, and expired forms of ID will NOT be accepted.
Note: Your name on both ID forms must be identical – letter for letter – to your full legal name of record with the Board of Pharmacy, including middle name or initial.
Applicants must present two different types of ID from the list below:

  • US state-, commonwealth-, or territory-issued driver’s license or identification card (may only present one).
  • US government-issued passport book or card (may only present one).
  • US Social Security card (cannot be laminated).
  • US military-issued identification.
  • National identity card (English ONLY)

VERIFY YOUR LEGAL NAME OF RECORD
Please verify your full legal name of record with the board at PSI’s website: https://candidate.psiexams.com/catalog/fti_agency_license_details.jsp?fromwhere=findtest&testid=935. (If you registered for the CPJE over the phone with PSI, you will be required to create an account with PSI to verify your name of record.)
###

On August 23, 2022, CalRecycle made the following completeness determinations relating to annual program budgets (also attached): 

  1. MED-Project’s Annual Program Budgets for Covered Drugs and Home-Generated Sharps Waste – Complete
  2. The Foundation’s Annual Program Budgets for Covered Drugs and Home-Generated Sharps Waste – Complete

Visit CalRecycle’s webpages for the status of, and documents related to, all annual reports and annual program budgets submitted to CalRecycle.

The CalRecycle Pharmaceutical & Sharps Team


CRA In The News
In Case You Missed It...

California Assembly Passes INFORM Legislation
Loss Prevention Magazine

California legislature advances battery EPR and takeback bills, aiming to avert facility fires
Waste Dive

Professors and students support California bill prohibiting the sale of diet pills to adolescents
The Stanford Daily

California Legislature Passes CWA-Supported Bill to Protect Call Center Workers
Communications Workers of America

World Nation News
CAL-ORCA Updates
Time is Running Out to Lock in Exhibit Space at Cal-ORCA Conference 2022

Time is running out to book exhibit space for California's premier Conference focused on the growing threat of Organized Retail Crime and Retail Theft. Hundreds of state policymakers, members of law enforcement and the business community will come together to “Collaborate on a Safer California”. Be among the companies that will be a part of this important effort to find solutions and to help stop ORC.

Thank you to the Cal-ORCA Conference 2022 Exhibitors
  • Alto
  • American Bike Patrol
  • Auror
  • BriefCam
  • California Retailers Association
  • Cobwebs America
  • Corrective Solutions
  • eCamSecure
  • ecoATM
  • Flock Safety
  • LeadsOnline
  • Motorola Solutions
  • Private Sector Security
  • RaptorVision
  • Reveal Media
  • Security Lines 
  • Trident University
On Tuesday, October 4 and Wednesday, October 5, 2022, CRA and Cal-ORCA will host our 2022 Cal-ORCA Conference in-person. The Conference will focus on Organized Retail Crime and Retail Theft and bring together policymakers, law enforcement and the business community for “Collaborating on a Safer California”. 
CRA Outreach & Activities
Ongoing Energy Crisis

CRA's President and CEO Rachel Michelin has been in constant communication with the Governor's Office and the state's Independent System Operator (ISO) daily throughout the past week in response to California's unprecedented heat wave and ongoing energy crisis.

The state was able to avoid rolling blackouts thanks in large part to major industries including Cal Retailers and customers doing their part to conserve energy. Thank you to our members for their help spreading the word during the state's #FlexAlert.
CRA President and CEO Rachel Michelin Addresses Organized Retail Crime at League of California Cities
"Cal Cities" Annual Conference

CRA President and CEO Rachel Michelin was one of the panelists for a Cal Cities session focused on "Fixing Prop. 47". During the session, Rachel highlighted the great work of the Californians for Safe Stores and Neighborhoods Campaign including getting SB 301- California's version of the INFORM Act- through the legislature and to Governor Newsom's desk and securing more funding for and an expansion of the state's ORC Task Forces. Details of the panel are below.

Panel Description:
Proposition 47 promised safer neighborhoods, but the unintended consequences that followed have provided something else. In 2018, the Public Policy Institute of California reported that the passage of Proposition 47 directly correlated to the uptick in theft throughout the state. That report took on new relevance in 2022 when a flurry of “smash-and-grab" robberies and retail thefts received nationwide attention. In fact, many urban cities have reported an increase in property and violent crimes in recent months. Constituents throughout the state are feeling these impacts and looking to the Legislature for solutions. Many voters want to change Proposition 47 to address repeat theft offenders. Join this session to hear about possible legislative solutions and underlying causes of the recent increase in crime.

Speakers:
Jonathan Feldman, Legislative Advocate, CA Police Chiefs Association
Robert Mestman, Assistant District Attorney, Orange County DA's Office
Rachel Michellin, President/CEO, California Retailers Association
CRA President and CEO Rachel Michelin Speaks at
CSRA Annual Meeting

CRA President and CEO Rachel Michelin moderated panels focused on Women in Retail and Organized Retail Crimes/Retail Theft at the Council of State Retail Associations Annual Meeting in Minneapolis, MN. The annual event was a great opportunity for networking with other state retail associations and sharing latest updates on legislation and regulations affecting the industry.
Member News
Lowe's Supports Communities Impacted by the Oak Fire

Lowe's Home Improvement associates and volunteers participated in relief efforts distributing over 200 tote bags to affected residents of the homes destroyed in the Oak Fire. The totes were packed with cleanup items including sanitizing wipes, goggles, work gloves, paper towels and bottled water.
Consumer Product Showcase Opportunity

The National Retail Federation will be featuring a new program during NRF 2023: Retail’s Big Show. The Consumer Product Showcase is designed for small retailers and entrepreneurs to showcase a product, amplify their brand and make priceless connections with large retailers, VCs and marketplaces. The program will take place in New York City, January 15-16, 2023, at NRF 2023: Retail’s Big Show.

Small business owners are personally invited to apply to be part of this incredible opportunity. NRF’s Consumer Product Showcase could provide the breakthrough connection needed to secure the next partnership that sets businesses apart.

To apply, complete the short application by September 15.

Benefits of NRF’s Consumer Product Showcase include:
  • Complimentary 8’ x 8’ turnkey booth with backwall, company logo, table and chair
  • Multiple networking opportunities with large retailers, VCs, marketplaces, retailers and industry partners
  • One Full Conference pass to NRF 2023: Retail's Big Show
  • Product Competition with (2) grand prizes: All retailers attending Retail's Big Show will receive a ticket to vote for their favorite product(s) within the Showcase. The two products with the most votes will win a $15,000 or $10,000 prize!

Participating companies must be ready to do business with regional, national and global retailers that operate in the omnichannel marketplace.

Please note, NRF and its sponsors have dramatically subsidized entry fees to make this turnkey experience possible – Products will be accepted on a rolling basis so apply ASAP.

If you are interested in applying, please submit your application here. For questions, contact Tami Sakell, NRF's VP of Sales, at sakellt@nrf.com.
Other Announcements
Paid Family Leave Grants for Businesses

Online application is open for grants of up to $2K available to eligible businesses with employees on Paid Family Leave!

California’s Paid Family Leave (PFL) program, which the Employment Development Department administers (EDD), provides eligible employees with up to 8 weeks of wage replacement benefits when an employee is off work for certain qualifying reasons.

Businesses with employees using PFL may have increased costs such as cross-training existing staff and hiring and training new and/or temporary employees to cover for employees on leave. This may be particularly true for small employers. The California Employment Training Panel and California Labor and Workforce Development Agency funded a grant program for small employers to assist with these issues.

Small businesses in California with 1 to 100 employees who have at least one employee utilizing PFL on or after June 1, 2022, may be eligible. Also, to qualify for the grant, businesses must:
  • Be registered to do business in the State of California
  • Be in an active status with the California Secretary of State’s Office
  • Have an active California Employer Account Number under which employees are listed for payroll.

Small businesses using a Professional Employer Organization (PEO) for payroll services are not eligible for the grant.

Employers interested in applying for the grant can apply through the grant website: Californiapfl.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.