August 05, 2022 | CRA Newsletter: Legislative, Political & Regulatory Updates
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Message from the President
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Happy end of the California Legislative session! We are now in the sprint to the finish of the legislature adjourning at the end of the month. Next week we will know the fate of several bills as the Assembly and Senate Appropriations committees have their suspense hearing where we are hoping some of the bills we are opposing will be held. After that, we will know what we are dealing with as we have the final two weeks of floor session.
Some things we are watching – the B2B agreement in CCPA. As you may recall, that is set to sunset, and we are working with the greater business coalition on that issue. SB 693 will be the vehicle, but look for that bill to go to the end of the wire. We are also tracking bills related to privacy in relation to children on the internet, an embedded battery bill and a retail packaging bill.
On the positive side, we are cautiously optimistic that the Assembly will pass, and the Governor will sign, SB 301, which is the California version of the federal INFORM Consumers Act. This bill has moved through the process with ZERO opposition and ZERO no votes. I am proud of the CRA team on managing this issue and look forward to providing California retailers another tool in the tool box when it comes to combatting retail theft.
Speaking of retail theft and ORC, I am thrilled to report CRA was able to secure our ENTIRE ask in terms of funding for ORC. This was a HUGE lift, given the ORC Taskforces were in jeopardy of being eliminated completely just a year ago. CRA secured permanent funding for the ORC Taskforces, increased the number of task forces from three to five, secured funding for dedicated ORC prosecutors for each task force and established local law enforcement grants for retail theft. Some thought it could not happen, but due to the support and engagement of our asset protection professionals from our member companies, we were able to get it over the finish line!
That leads me to encourage you to join CRA for two exciting events this fall – our 2022 Annual Meeting in Sonoma, California and the California Organized Retail Crime Association Conference in Ontario, California. As you may recall, CRA has taken over the management of Cal-ORCA and we are thrilled to grow that association into the premier ORC Association training and connecting retailers, law enforcement and policy leaders across the state. As a member of CRA, you are automatically a member of Cal-ORCA and I hope you will take advantage of that. If you have questions or would like to receive more information, please reach out.
Finally, in the next few weeks I will be sharing more information regarding PAGA (Private Attorney Generals Act) – I know this is a thorn in the side for many members and CRA is taking a leadership role in supporting the PAGA initiative that will be on the 2024 general election ballot in California. This will be our best opportunity to impact PAGA and provide some relief – not only to employers, but to employees who rarely see the bulk of these settlements. More information to come, but I am hoping the retail community, and CRA members, will rally and financially support the initiative.
As always, if you have any questions or need additional information do not hesitate to reach out, especially during this busy legislative time.
Rachel
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California End of Legislature Update
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The Legislature reconvened for a final month-long flurry of activity prior to the midnight August 31st deadline to pass bills onto the Governor’s Desk. Among the many hundreds of bills still moving are nearly 100 measures that CRA continues to lobby or monitor with impacts to the retail community.
Prior to the Legislative recess on June 30th, there were several positive developments for retailers. Among the most notable was the Governor's signature on a final State Budget on June 27th which included all of CRA’s requested funds for Organized Retail Crime- funding we were able to secure for for the next three Budget years for ORC, including:
- Expanding and making permanent the CHP’s ORC Task Force
- Creation of a special unit at the Department of Justice for retail theft
- $10 million annually in local grants for dedicated ORC prosecutors
- $85 million annually in local law enforcement grants for ORC-related expenditures
This is a huge win for the retail industry in California. But it is now incumbent upon us to assist in implementation and to provide data and feedback to the Administration on the impact of these funds in mitigating ORC in the state.
Prior to the Recess, the Legislature passed and the Governor signed Senate Bill 54 (Allen) creating a comprehensive product package recycling regime, which will bolster recycling infrastructure while mandating recycling rates for plastic packaging materials of up to 65% by 2032 along with source reduction mandates. With the enactment of SB 54, sponsors agreed to pull the initiative from the November ballot that would have imposed a tax of up to $.01 on all plastic packaging and foodware items. By the end of session, and in an act of good faith to encourage the proponents to remove the initiative from the 2022 ballot, CRA took a “Neutral” position on SB 54, and we were pleased that change led to avoiding an expensive ballot campaign. We are hopeful the Legislature will utilize the broad negotiations that went into SB 54 as an opportunity to pull AB 2026 (Friedman), a CRA-opposed measure, which now could set different requirements for the subset of plastic and polystyrene packaging related to online retail deliveries – materials that are covered under SB 54.
The final week in June we saw the demise of CRA-opposed AB 2840 (Reyes), which would have imposed significant new obstacles in siting warehouses in Riverside and San Bernardino counties. Assemblymember Reyes, the Assembly’s Majority Floor Leader, pulled the measure from committee for lack of support, but has promised to return to this issue next year. This bill had the potential to worsen supply-chain congestion in California with warehouses already at capacity and ports still overwhelmed by goods shipments.
Moving forward in the final month, CRA is eyeing dozens of remaining measures in the respective fiscal committees and on the floors of each house, in particular:
Assembly Appropriations Committee
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Senate Bill 301 (Skinner) would establish an online marketplace transparency law in the largest state in the Union, hopefully providing further impetus for Congress to act on the federal level. The bill is in Assembly Appropriations Committee and CRA is in strong support.
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SB 1215 (Newman) would add battery-embedded products to the state’s Electronic Waste (e-waste) program. CRA is actively supporting this measure based on agreement with the author and sponsors of AB 2440 (Irwin) to remove battery-embedded products from that bill. That bill would require stores to take back all battery products including battery-embedded products.
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SB 1162 (Limon) would require specified statistical data on employee pay to be reported and published by company, as well as require pay ranges for open positions to be advertised on third-party job listings. CRA continues to participate in coalition efforts to stop this measure as it would open all employers to significant potential liability and reputation damage based on statistics that are not necessarily indicative of discrimination or “pay equity” issues.
Senate Appropriations
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As mentioned above, CRA continues to oppose AB 2026 (Friedman) based on its impact to shipments to online customers and particularly the lack of viable alternatives to polystyrene and other materials in shipping fragile and/or valuable items.
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CRA will remain Opposed Unless Amended on AB 2440 (Irwin) until battery-embedded products are removed from its proposed retailer take-back program.
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CRA has substantial concerns with the latest draft of AB 2273 (Wicks), an internet privacy/content bill related to minors that is aimed primarily at social media, video games and other online apps, but would include online retail within its broadly written provisions. We are working with the author, sponsors and the Legislature to include amendments that would limit its impacts on retailers.
Senate Floor
CRA is still Oppose Unless Amended on AB 1817 (Ting), which would ban the sale of most textile goods containing PFAS chemicals by January 1, 2025. While recent amendments improved the bill somewhat, CRA remains concerned that the 1/1/25 deadline is unrealistic and lacks an adequate sell-through period, that the “certificates of compliance” requirement creates new liability for retailers for noncompliant products and that the standards for PFAS detection beyond 1/1/27 are arbitrary and may be unachievable.
CRA continues to work in conjunction with the California Trucking Association in strong support of AB 2406 (Aguiar-Curry), which would update a statute that prohibits ocean carriers from assessing Detention and Demurrage charges on cargo owners and shippers for failure to pick up or return shipping containers when port congestion does not physically permit them to do so.
As always, if you have any questions or would like to discuss in more detail, please do not hesitate to reach out.
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Additional Legislative & Political Updates
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Board of Pharmacy
Licensure Delays
CRA submitted a joint letter (READ HERE) with NACDS to the Board of Pharmacy expressing concerns with recent delays in approvals of licenses and permits by the Board of Pharmacy.
We continue to advocate on this issue and will keep you apprised of any new developments.
Inventory Reconciliation Regulation
The Office of Administrative Law has approved rulemaking to amend Division 17 of Title 16 of the California Code of Regulations, section 1715.65, related to Inventory Activities and Inventory Reconciliation Reports of Controlled Substances.
The amended regulation is effective January 1, 2023.
July 27-28 Board Meetings
The Board posted the meeting materials for the July 27-28, 2022, Teleconference Board Meeting. The board meeting is remote only.
The agenda can be found here and the meeting materials can be found here.
MEDI-CAL Rx
Multi Factor Authentication/Single Sign On Solutions
DHCS held a call on the next steps/approach for the Multi Factor Authentication/Single Sign On solutions for Medi-Cal Rx. You can access the slide deck from that meeting HERE.
Background:
Prior to Medi-Cal Rx Go-Live, DHCS reviewed and granted an exception to the Medi-Cal Rx Multifactor Authentication Policy to those pharmacies that submitted an application requesting an exception.
The date this exception expires is 12/31/2022.
DHCS would like to engage with pharmacies to discuss a solution that will meet the policy.
Update on Phase 1, Wave 3 - Reinstatement of PAs for 11 Drug Classes
A new update regarding Implementation of Phase I, Wave III – Reinstatement of Prior Authorizations for 11 Drug Classes, has been posted to the Medi-Cal Rx Web Portal on 7/26/2022. Click here to view.
SB 212 - DRUG/SHARPS TAKE-BACK
CRA sent a letter to CalRecycle last week (READ HERE), co-signed by the CA Pharmacists Association, registering our concerns with CalRecycle’s stance that all pharmacies are required to distribute sharps take-back containers at point of sale (vs. mail-back).
We continue to advocate to ensure sharps mail-back is permitted, consistent with the intent of SB 212.
Waiver Allowing Pharmacists to Independently Administer Paxlovid
The Department of Consumer Affairs issued a waiver allowing pharmacists to independently initiate and furnish Paxlovid, subject to specified conditions. Please click here for details.
Board of Pharmacy Appointee
The Governor appointed Renee Armendariz Barker to the Board of Pharmacy as the new compounding pharmacist member. Jig Patel was reappointed to the Board as the chain pharmacist member, taking Debbie Veale’s slot (Jig formerly held a general licensee slot). There are two remaining vacancies on the board - the long-term care slot and the public member slot, replacing Shirley Kim whose term just expired and was not renewed.
Amended Pharmacy Law Waivers
In light of Governor Gavin Newsom’s declaration of emergency and the national declaration of emergency, and consistent with Business and Professions Code section 4062, California State Board of Pharmacy President Seung Oh has amended the expiration dates of the following waivers of specific provisions of Pharmacy Law:
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Mass Vaccination Sites – The amended expiration date is December 31, 2022, or until 30 days following the declared disaster, whichever is sooner.
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In Case You Missed It...
"We need the Governor to lead on this issue that not only impacts California, but the entire nation."
"We need to find a workable solution that protects workers from misclassification without eliminating the owner-operator model from the trucking industry."
Additional news coverage:
Trade groups now “neutral” on California bill targeting weight loss supplements
Natural Products Insider
Former California State Senator Bob Dutton Dies at 71
California Globe
Target and Walgreens Are Making Drastic Changes Amid Skyrocketing Shoplifting in San Francisco
Foundation for Economic Education
California workers found better paying jobs, but experts warn recession puts them at risk
CalMatters
Retailers: Decisive vote to recall SF District Attorney reflects voter concerns on crime and safety
Northern California Record
Inside the fight to force makers of plastic trash to clean up their mess
Sacramento News & Review
California Adds Jobs in May; Economy Shows Signs of Weakness
NBC Bay Area
Also appeared in:
San Jose Safeway shooting spurs fears of more conflicts with shoplifters
The Mercury News
Starbucks to permanently close 6 LA locations after reported drug use by public, crime concerns
CBS Los Angeles
To protect supply chain, independent truckers need clarity
American Journal of Transportation
A Candid Interview with California Retailers Association’s Rachel Michelin
Loss Prevention Magazine Podcast
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Free Virtual Trainings on the New ORC Reporting System
The California Organized Retail Crimes Association (Cal-ORCA), which is now under the management of CRA, is using a new state of the art system for reporting, tracking and aggregating data across local jurisdictions and state lines. All of Cal-ORCA's members should have received a notice from Auror with details on two upcoming virtual free training sessions. We have also included details here. Please save the date and add these sessions to your calendar if you are interested in learning more about how to access and navigate the online crime reporting portal. If you have not yet heard from Auror, please send us an email at cra@calretailers.com.
- Thursday, August 11th 11AM-11:45AM PST
- Tuesday, August 16th 11AM-11:45AM PST
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Nominations Now Open for Cal-ORCA Conference Awards
Join The California Retailers and California Organized Retail Crimes Associations as we recognize four categories of outstanding service in the fight to stop Organized Retail Crime and Retail Theft.
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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”.
During the Conference, we will be honoring four award categories:
- Prosecutor of the Year
- Organized Retail Crime Case of the Year
- Law Enforcement Agency of the Year
- Law Enforcement Investigator of the Year.
These awards will be recognized publicly during the event.
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Deadline to submit nominations is Monday August 15, 2022.
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CRA Outreach & Activities
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JOIN CALIFORNIA RETAILERS FOR TWO SPECIAL EVENTS:
2022 ANNUAL MEETING
CA ORGANIZED RETAIL CRIME CONFERENCE
CRA members are invited to join the California Retailers Board of Directors and the CRA team for our IN PERSON 2022 Annual Meeting in beautiful Sonoma California!
On Monday and Tuesday, September 25-26 we will gather at the Lodge at Sonoma for networking, updates and strategic planning for the retail industry in California.
Topics include:
- 2024 PAGA Initiative
- ORC/Retail Theft/#Fix47
- Supply Chain
- Environmental Sustainability
- CalOSHA
- Privacy
- California COVID Endemic
- Recap of the 2022 Legislative session
- 2023 Cal Retailers legislative priorities
Members will also have an opportunity to let the CRA Team know what issues are important to them.
The meeting begins with a CRA member wine reception followed by the CRA membership dinner. The meeting will take place from 9am to 3pm on Tuesday, September 26th.
The member ticket for the Annual Meeting is $450 and includes lodging and all meals. Please email us HERE to RSVP.
The Cal-ORCA conference will take place October 4-5, 2022 in Ontario California. You can view the DRAFT agenda HERE. Our Special Guest is California Attorney General Rob Bonta!
We have joint sponsorship opportunities available -- member companies can sponsor the Annual Meeting AND the California Organized Retail Crime Association at the same time. This is a great way to include asset protection folks in the Cal-ORCA conference on ORC/retail theft while securing your spot at the Annual Meeting.
Sponsorship opportunities can be viewed HERE.
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Cal Retailers Meets with Homeland Security to Discuss Supply Chain Issues
With the Trade Summit in LA this year, the Department of Homeland Security reached out to the California Retailers Association with a great opportunity to meet with retailers/importers/exporters to share pressing concerns from the retail industry and to connect with local contacts for DHS in the field.
During the meeting CRA shared insights on how we can better coordinate on an efficient goods movement system that not only affects California, but the United States as a whole. Participants included:
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Tasha Hippolyte; Deputy Assistant Secretary, Trade, Department of Homeland Security
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Cynthia Echeverria; Senior National Security Liaison at U.S. Immigration and Customs Enforcement (ICE)
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John Pickel; Counselor (Trade) at Department of Homeland Security - Customs and Border Protection
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Amy Strauss; Senior Director Private Sector Office (PSO), Department of Homeland Security
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Anthony (Tony) Frangipane; Southwest Regional Director U.S. Department of Homeland Security.
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Melissa Green; Program Manager, Department of Homeland Security
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Melynda Moran; San Francisco Bay Area · Sector Outreach Coordinator · Cybersecurity and Infrastructure Security Agency
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Virtual Retail Theft Summit - Los Angeles
The CRA team and Asset Protection representatives of CRA’s member companies heard from Los Angeles City Attorney Mike Feuer to discuss and share feedback around retail theft concerns and explore ways CRA and retail companies can collaborate with the City Attorney’s office to address the growing issue and ways the office can expand its role in alleviating the problem.
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The CRA team also met with the Fresno County District Attorney and City of Fresno's Police Chief. Stay tuned for a Retail Summit being planned for the Fall focused on that region.
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Virtual panel on ‘The Great Reshuffling and Beyond’
CRA President and CEO Rachel Michelin sat on a panel discussion focused on the current state and future California's workforce hosted by CalMatters and the Milken Institute
Rachel: “Retailers were trying to manage and provide calm in the midst of the storm during the height of the pandemic.”
"Covid changed a lot for the retail industry including supply chain challenges, consumers wanting products quicker and increasing online shopping.”
“Retailers are committed to investing in their employees. Many C suite executives started at the ground level working in retail stores.”
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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.
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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.
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Follow CRA on Facebook, Twitter, Linkedin and Instgram to stay up to date on the latest developments in statewide and local legislation and policies, regulations, relevant industry and member related news and association events.
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