June 08, 2022 | CRA Newsletter: Primary Election Results and Other Key Updates
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Message from the President
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Wow! What an election night! While voter turnout for the California primary was low, there were still some surprises and some outcomes CRA was hoping for. Obviously, CRA was closely watching the recall election in San Francisco of the District Attorney. I was very active on the media, both nationally and locally, with the message that retail theft was out of control in The City and it was putting retail employees and our customers at risk. While CRA was not actively involved in the recall campaign, I do believe the fact that I was willing to take the retail message to the media had an impact on last night’s outcome. Now we wait for the election to be certified, then the board of supervisors will approve it and finally, Mayor London Breed will appoint a successor. We will be reaching out to the mayor with the ask that whomever she appoints has a priority to work with CRA and our members on curtailing retail theft.
With the recall of the SF DA, all eyes turn to Los Angeles. Crime was certainly a major issue in the race for Mayor and has set up a showdown between Congresswoman Karen Bass and Businessman Rick Caruso. Given what we saw last night, crime will play a significant role. Adding to the LA drama (it is home to Hollywood) is the potential recall of the Los Angeles District Attorney George Gascon. The recall campaign needs about 570,000 signatures by July 6th to qualify. As of last week, before the recall in SF, the campaign hit the 500,000 mark and all indications are it will qualify. That means we are looking at a recall election in January or February of 2023 – this will certainly be a cloud hanging over the LA’s mayor’s race. CRA is keeping a close eye on these developments. To that end, the LA City Attorney, Mike Feuer, has reached out and we are working with his office on a LA-focused Retail Theft Summit. More information to follow, but it certainly gives CRA another opportunity to represent our members on issues related to retail theft.
I am pleased to announce that Attorney General Rob Bonta will join CRA at the Cal-ORCA (California Organized Retail Crime Association) conference in October. CRA recently took over management of the association and we are thrilled with the planning of the 2022 IN PERSON conference. As a reminder, your membership in CRA includes membership in Cal-ORCA so I hope you will engage with Cal-ORCA. More information on the conference, including partner investment opportunities, will be sent next week.
In a bit of good news, we are cautiously optimistic that our advocacy to the Governor will pay off and our request for additional funding for ORC will be included in the approved state budget that will be voted on by the full legislature next week. As a reminder, this agreement includes $300 million over the next three years for ORC; two new ORC Taskforces bringing the state total to five; permanent funding for the taskforces; and dedicated ORC prosecutors. We will update members when the budget bill passes, but CRA is already in conversations with the CHP and the CA Department of Justice on implementation.
Finally, I will be joining two CRA member companies later this week at NRF Protect for a robust panel conversation on ORC and what we have done in California to move the needle on this issue. If you or your AP teams will be there, let me know. I would love to connect.
Crime is not the only issue on which CRA is focusing. The goods movement and supply chain challenges are also top of mind. Last week, I joined other goods movement stakeholders in the Inland Empire to talk about the challenges we are facing when it comes to the supply chain and the list is endless. One of the biggest take aways was the issue of educating policy makers and regulators on how the supply chain operates. CRA is working on a new coalition to increase the retail voice statewide on issues related to and influence the supply chain. Much like we did with ORC/Retail theft, I believe there is an opportunity to move the needle and work collaboratively with stakeholders on finding solutions to the complex issue. If you are interested or would like additional information on the proposed new coalition, please reach out to me directly HERE.
The CRA is still very much engaged on a long list of issues that impact retailers in California. We are still focused on packaging, labor issues, Covid (yes mask mandates are back), predictive scheduling and many more (which you can read about below).
As we enter the final few weeks of the legislative session, I encourage you to engage with CRA on the many committees and list serves that are available to our members. We welcome your input and look forward to engaging with you.
Rachel
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Legislative, Budget & Political Updates
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Legislative
CRA has been advocating on a number of bills impacting retail pharmacy and has successfully mitigated legislation that would be harmful to chain drug stores, including:
AB 2265 (Arambula), which would have required pharmacies to dispense Schedule II controlled substances in lockable vials and placed the burden on pharmacies to front load the costs of the vials and continuously seek reimbursement from manufacturers. CRA testified in opposition in both the Assembly Business and Professions Committee and the Assembly Judiciary Committee and, after successfully lobbying the Legislature, the bill was held on the Assembly Appropriations Committee Suspense file. AB 2265 is the third version of the bill introduced in the last three years, so although it is dead for the year, it could be reintroduced in the future.
SB 1379 (Ochoa Bogh), which would have created permanent statutory authority for pharmacists to perform remote processing. It was sponsored by the Board of Pharmacy. CRA learned shortly after the bill was introduced that the author was planning to amend it, at the request of organized labor, to limit the bill only to hospital pharmacies. These amendments would have excluded chain pharmacies. Due to CRA’s opposition, the author agreed to table the bill for the year with a commitment to work on this issue in the fall.
Other bills CRA continues to have concerns with include:
AB 1341 (C. Garcia), which would ban the sale of dietary supplements to minors and require retailers to restrict access (or “cage”) these products. CRA is opposed to this bill, however, recent amendments including the complete removal of the caging requirement and a narrowing of the scope will switch CRA to a neutral position. It is set to be heard in Senate Health Committee on June 15. Click here to view the amendments. Please let Lindsay Gullahorn at lgullahorn@capitoladvocacy.com know by COB tomorrow, June 9 if you have any comments or concerns.
AB 852 (Wood), which would make several changes to address address implementation issues associated with AB 2789 (Wood, Ch. 438, Statutes of 2018). CRA supported AB 2789, which mandated that all prescriptions in California be capable of being transmitted electronically effective January 1, 2022. Although AB 852 includes several provisions to clarify existing law to make e-prescribing workable (e.g.clarifying provisions with respect to the transfer of controlled substances), CRA is concerned that the April 18, 2022 amendments would require pharmacies to accept an electronic prescription even though it may not be compliant with a pharmacy’s compliance and contracting policies. This will force pharmacies to possibly contract with all electronic prescription platforms, even if those platforms are not compatible with a pharmacy’s systems thus not serving the patient effectively.
CRA appreciates the authorization in AB 852 for pharmacies to decline electronic prescriptions from electronic prescription providers that do not meet industry standards and privacy requirements. Unfortunately, because the bill will cause pharmacies that do not contract with every electronic prescription vendor to be in violation of the law, CRA is opposing AB 852 unless it is amended to clarify that pharmacies are not required to accept electronic prescriptions from any and all electronic prescription vendors.
Budget Related
Assemblyman Jim Wood (D-Santa Rosa) has submitted a budget request to forgive the Medi-Cal Pharmacy rate recoupment currently assumed in the Governor’s proposed budget. CRA is appreciative of Assembly Member Wood and is strongly supporting his request. The request is for $100M in 2022-23 and $110M in 2023-24 to forgive the retroactive recoupment of pharmacy reimbursements due to changes in federal reimbursement methodology requirements (NADAC) in 2017. Medi-Cal pharmacy providers are now reimbursed for covered prescription drugs using a cost-based reimbursement methodology of National Average Drug Acquisition Cost (NADAC), which is based on a nationwide survey of pharmacy invoices, plus a professional dispensing fee based on the findings of a cost of dispensing study. Altogether, this reimbursement is meant to cover the costs incurred by pharmacy providers when acquiring and dispensing medications to beneficiaries.
Although this rate methodology change occurred in 2017, DHCS did not implement it until 2019 - and did so retroactively to 2017. Pharmacies now owe tens or hundreds of thousands of dollars to the state, and the current 2022-23 proposed budget assumes that DHCS will retroactively recoup these dollars. CRA is advocating in support of Asm. Wood’s budget request given the significant economic impact the recoupment will have on chain pharmacies.
Board of Pharmacy
The Board of Pharmacy held a Pharmacy Technician Summit on April 19 after holding several listening sessions in February, March and April soliciting feedback from both pharmacists and pharmacy technicians on potential expansions of tech duties and the pharmacist to pharmacy technician ratio. CRA testified at the summit in support of expanding the ratio and allowing techs to perform additional duties. Board of Pharmacy members agreed that a change in the ratio is warranted, but did not agree to any specifics and did not seem to support a blanket/across the board ratio expansion. The Board’s licensing committee will continue to discuss this issue at future meetings.
Several new members have been appointed to the Board of Pharmacy, replacing members who have fulfilled their terms and vacated the board. The new members are Jessica Crowley (labor licensee member), Indira Cameron-Banks (public member) and Kula Koenig (public member).
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In Case You Missed It...
California Retailers Association President and CEO Rachel Michelin was featured above the fold in this morning's CalMatters e-newsletter leading story on the recall of San Francisco District Attorney Chesa Boudin. CalMatters, a top tier news outlet, is read by thousands of viewers daily across California and nationwide. Michelin spoke last night with other leading news organizations looking for reaction to the recall and has several more interviews lined up throughout today. Be on the look out for more news to come out of last night's Primary results, which were closely watched across the country. Highlights from the CalMatters e-news are below:
- That Boudin’s fate could have little to no bearing on Bonta was implicit in a statement from Rachel Michelin, president and CEO of the California Retailers Association. That organization and other industry groups have been increasingly vocal about the need for state and local lawmakers to address what they perceive as rising crime and theft.
- Michelin: The Boudin recall “makes clear what Californians’ attitude has been for months — if district attorneys in California won’t provide consequences to those who repeatedly violate the law, then voters will provide consequences for district attorneys.”
- Emphasis on district attorneys — and not on attorneys general.
- That could be a coded warning for progressive Los Angeles County District Attorney George Gascón, who is fending off a potential recall of his own. “If LA County voters sign and return their recall petitions, Gascón will be walking the same plank (as Boudin) in the very near future,” the campaign working to recall Gascón said Tuesday night.
Could DA Boudin recall spell trouble for Attorney General Bonta?
CalMatters
Progressive D.A. Chesa Boudin Recalled by San Francisco Voters
National Review
CALIFORNIA RETAILERS ASSOCIATION PRESIDENT AND CEO RACHEL MICHELIN ISSUES STATEMENT ON SAN FRANCISCO DISTRICT ATTORNEY RECALL ELECTION
The Los Angeles Post
Violence rises as some employees fight back against shoplifters, thieves
USA Today
CHP busts $715K retail theft ring; Pittsburg man arrested
CBS Bay Area News
Also appeared in:
CRA President and CEO Speaks with KNX News Radio Los Angeles on State Retailer Efforts to Combat Organized Crime
KNX News Radio Los Angeles
Southern California Record
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CRA Outreach & Activities
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CRA and Cal-ORCA Announce New Website and Annual Conference Featuring Keynote Speaker California State Attorney General Rob Bonta
Website and Conference are part of collaborative between Cal-ORCA and Cal Retailers formed to address the growing organized crime crisis for businesses statewide
The California Retailers and California Organized Retail Crimes Associations unveiled a new website that provides an enhanced and responsive user experience and highlights the growing partnership between retail and law enforcement in California, which was formally established last year. Read more and check out the new website here.
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Cal-ORCA and CRA will be hosting a Conference focused on addressing the growing problem of Organized Retail Crime and Retail Theft on Tuesday, October 4 and Wednesday, October 5 at the Ontario Convention Center in Ontario, CA. The Conference will bring together policymakers, law enforcement and the business community for “Collaborating on a Safer California”.
Visit Cal-ORCA.org for details about the Conference including an agenda, sponsor opportunities and registration.
The CRA team is also attending local ORCA events throughout the state including two recent information gathering meetings in the Bay Area and Los Angeles. The Bay Area ORCA event promoted the new CRA - Cal-ORCA partnership and upcoming Conference.
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Californians for Safe Stores and Neighborhoods Update
The California Retailers Association has been spearheading a highly successful legislative public affairs and issue advocacy coalition — Californians for Safe Stores and Neighborhoods (CSS+N). In just a few short weeks since this effort was launched, CRA has quickly positioned the coalition as the premier advocate for tangible and comprehensive solutions that address the growing crisis of retail theft.
Each and every day, CRA is driving narratives in the press, galvanizing diverse communities under the CSS+N umbrella coalition and forcing our state's leadership to acknowledge the need for action. Read more.
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CRA Launches New Independent Retailer and Business Partner Affiliate Program
The California Retailers Association team is excited to announce a new program designed specifically for Independent Retailers and Business Partner Affiliates that will further expand our advocacy and educational efforts.
Working together, CRA and small, independent retailers and business partners are a solid force when it comes to advocating to state and local elected bodies and regulatory boards on issues that could not only have significant impacts on business operations, but on California’s consumers as well. By working together, this alliance can promote proposals that increase business growth in the state and proactively advocate for issues that can have a significant impact on California’s quality of life in their local communities. Read more.
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CRA President and CEO Participates in Supply Chain Panel
CRA President and CEO Rachel Michelin joined key stakeholders in the goods movement, including the Ports of Los Angeles and Long Beach, in speaking on the Inland Empire Economic Partnership's "State of the Supply Chain" panel at the Southern California E-Commerce & Logistics Summit.
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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.
- June 24
- August 26
- September 23
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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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