CRA Member Newsletter

https://calretailers.com/wp-content/uploads/2019/06/png2.png

July 11, 2024 | CRA Newsletter: Annual Meeting, Legislative, Regulatory & Other Updates

Message from the President

July is a quiet month in California’s Capitol as the Legislature enjoys the month off before the August sprint to the end of the legislative session.


The CRA Annual meeting is quickly approaching, and we are just a little over a month away for the deadline to book your room at CRA's discounted room rate. Register today to secure your spot at our event in Napa, which will include our second annual Retail Law Summit with our national partner NRF and leaders from throughout California who will speak about top of the ticket issues impacting retail including Artificial Intelligence, Extended Producer Responsibility and Retail Theft. In addition, attendees will hear firsthand about how we were able to come to a deal on PAGA reform, what is happening behind the scenes on retail theft politics and get the latest legislative and regulatory updates from the past session. Don’t miss out on this opportunity to join other CRA members to discuss priorities for 2025 and discuss important industry issues brands are facing in California.


While it is quiet in and around the Capitol, the CRA team is still busy prepping for what will be a sprint to the finish line come August 5 when session resumes. We are still working on major legislation including the 12-bill Retail Theft package, a self-checkout bill, legislation related to gift cards, ban on plastic bags, EPR legislation, AI bills, Labor bills, cannabis and more. 


There are a lot of moving parts in California right now and a lot of political intrigue of what could happen and where people could end up. The good news is CRA is in a great position with many key leaders in the legislative and executive branch to ensure key priorities to our members are advocated for. Over the next few weeks, as information flows in the media or through other channels, if members have any questions about what is happening in California on any issue, please do not hesitate to reach out to me directly. I am happy to share what I know from being on the front line as someone who is literally right across the street from the State Capitol. I want to make sure members have all the information they need to make the most informed decisions possible.


Here's to an exciting next few weeks – both legislatively and politically!



Rachel

In CRA's April 2024 Newsletter Issue:

  • CRA Annual Meeting
  • Legislative Updates
  • Regulatory Updates
  • CA Community Pharmacy Coalition Updates
  • Other Outreach and Activities

CRA Annual Meeting

CRA Annual Meeting

Sunday, September 15 - Tuesday, September 17

Napa Valley Marriott Hotel & Spa

3425 Solano Ave. I Napa, CA 94558


Rooms must be booked by August 16 to secure discounted group rate


The California Retailers Association will host this year's Annual Membership Meeting on Sunday, September 15 through Tuesday, September 17 at the Napa Marriott. CRA members will hear from industry leaders and policymakers on a variety of issues impacting the retail industry including EPR, Retail Theft, Labor & Employment Issues, PAGA Reform, Artificial Intelligence and more. We will also have the latest Legislative, Regulatory and Political Updates. Be sure to book your room by Friday, August 16, to secure our discounted group rate. Additional details including sponsorship opportunities, special guests and other programming will be released soon.


CRA Member: $375

Register at the member rate HERE.


CRA Non-member: $450

Register at the non-member rate HERE.


The link to book hotel rooms under CRA's discounted group rate will be provided upon payment of event registration.

Cal Retailers' Annual Meeting will include the

Second Annual California Retail Law Summit

Tuesday, September 16

Napa, CA


Join the National Retail Federation and the California Retailers Association for the second annual California Retail Law Summit, Sept. 16 in beautiful Napa, California at the Napa Valley Marriott. This leading legal summit for retailers only is an unparalleled event convening retail in-house counsel for expert-led discussions and CLE-eligible sessions designed to help retailers navigate the complexities of California’s ever-evolving legal landscape. Some of California’s top retail law experts will share insights and tactics on how to get ahead of the most pressing issues impacting retailers operating in California, including the hottest litigation threats, regulatory compliance requirements and legislative developments.


Retail Member (NRF/CRA): $200

Retail Non-member: $250


Register HERE.

Legislative Updates

Retail Theft

The Cal Retailers-supported package of bi-partisan Retail Theft bills passed out of Assembly and Senate Appropriations Committees. The bills now head for a vote of the full legislature and then to the Governor's desk for signature. The bills in the package are as follows:


Assembly Retail Theft Bills

AB 1779 (Irwin) Allows for cross jurisdictional prosecution among county district attorneys.

AB 1802 (Jones-Sawyer) Makes the Organized Retail Theft statute permanent and eliminates the sunset on the Organized Retail Crime Task Force (CRA already secured permanent funding for the ORC Task Forces in 2021).

AB 1960 (Rivas) Sentencing enhancements for property damage due to smash and grabs. 

AB 1972 (Alanis) Adds Rail to the Property Crimes Task Force Cargo Theft. 

AB 2943 (Zbur) Creates a new serial retail theft felony, expands probable cause to, among other things include video, provides protection to retailers to not be deemed a public nuisance if they call law enforcement to respond to retail theft, provides clarity on the ability to aggregate up to the $950 threshold. 

AB 3209 (Berman) Establishes Retail Theft Restraining Orders.


Senate Retail Theft Bills

SB 905 (Wiener) Removes locked door loophole for car break-ins.

SB 982 (Wahab) Makes the Organized Retail Theft Statute permanent.

SB 1144 (Skinner) Closes the loophole for off site transactions for on-line marketplaces.

SB 1242 (Min) Sentencing enhancements for theft related to arson.

SB 1416 (Newman) Sentencing enhancements for professional Organized Retail Theft.


The bills' continued swift movement through the legislature make it clear that Retail Theft policy priorities have shifted this year. This seismic shift is a testament to the California Retailers Association team's strategic and persistent work with state leadership including the Governor's office, Speaker's office, Senate Pro Tem, various members of the legislature and other key stakeholders to ensure Cal Retailers is in the best position possible as bills continue to be debated and make their way through the legislative process.


Additionally, the Little Hoover Commission just released their report on Retail Theft, which concluded that, among other findings, the state should prioritize data collection and collaboration with research institutions as it seeks to understand and combat retail theft in the long term. The report was prompted by a request from 66 members of the legislature to study issues surrounding retail theft. The report notes that since the Legislature and the voters are now considering changes to the penal code sections addressing retail theft, the Commission’s recommendations focus on long-term improvements in the way the state reports and assesses retail theft and law enforcement’s response. CRA President Michelin testified in one of their hearings last year. Access the report here.


Labor Bills

SB 1446 (Smallwood-Cuevas). Grocery retail store and retail drug establishment employees: self-service checkout and consequential workplace technology. One of our top priorities heading into August, the CRA team continues to lead opposition to this bill, which would effectively ban self checkouts and serve as a "nose under the tent" for drastic regulatory action on artificial intelligence and technology. This bill is currently in Assembly Appropriations waiting a hearing date, which we expect to be the first week of August.


SB 1089 (Smallwood-Cuevas). Grocery and Pharmacy Closure Notices. This bill is in Assembly Appropriations. CRA has worked closely with a coalition of business groups and have submitted amendments to the author and sponsor. We are still working on a few pieces of the bill, but largely the author and sponsor have been receptive to our concerns.


SB 399 (Wahab). Employer Communications: Intimidation. We have heard this bill is being resurrected and expected to be acted upon in August in Assembly Appropriations- hearing date not yet set. CRA was in strong opposition last year, as currently drafted, and we will continue to be opposed along with a broad business coalition. We are unsure if there will be amendments, but we will keep CRA members updated.


SB 1116 (Portantino). Unemployment Insurance for Workers on Strike. This bill was held in the Assembly Insurance committee. It may come back in a different form in August, but that’s yet to be determined.


EPR and Environmental Legislation

There are myriad of legislative proposals this session that expand on an already growing and fragmented Extended Producer Responsibility system in California. As we head into the end of the 2023-2024 legislative session, we are focused on two EPR bills in particular - SB 1143 (Allen) Household hazardous waste: producer responsibility and AB 863 (Aguiar-Curry) Carpet and flooring recycling: producer responsibility organizations: fines: succession: training. The CRA team continues to actively oppose both bills and will be working throughout July with large coalitions that have formed against the bills to ensure the retail industry's concerns are included in discussions between industry and the bills' authors/sponsors. Please send any feedback your company has on these bills to sarah@calretailers.com so we can include as many specifics as possible in the conversations we are having.


SB 707 (Newman). Textile Extended Producer Responsibility. CRA has been working closely with the author’s office and they are still open to amendments. Please talk with CRA staff and send amendments as soon as you can.


AB 2236 (Bauer-Kahan) / SB 1053 (Blakespear) Plastic Bag Ban. These bills will be heard next in Senate Appropriations. They were amended to remove all reusable bag definitions, which CRA supports. The bills are drafted now to only allow paper bags to be sold at a “point of sale,” defined as a place where purchased goods may be transferred to a customer, including, but not limited to, a checkout counter, self-checkout kiosk, in-store pickup, curbside delivery and home delivery. This means a reusable bag can be sold anywhere in the store except those locations covered under point of sale. We are working with the author to narrow the point of sale definition to exclude in-store pick up and home delivery.


Artificial Intelligence

AB 2930 (Bauer-Kahan) – Automated Decision Tools. This bill is currently waiting a hearing date in Senate Appropriations. The CRA team needs feedback on the language to present to the author. Please send any feedback your teams have ASAP to sarah@calretailers.com.


Gift Cards

SB 1272 (Laird). Gift Card Redeemable Amount. CRA has asked for the following amendments: delayed implementation until Jan. 2026; raise to $15 or less Jan 2026; raise to $20 or less Jan 2031; study by the appropriate agency (DoJ or CHP) on fraud related to the raise in cash back amount; and insert a one use requirement. The author is working on feedback.


Alcohol

AB 2991 (Valencia). Retail Alcohol Payments Electronic Funds Transfers. This bill is currently in Senate Appropriations. The author’s office spoke with Alcoholic Beverage Control (ABC) on the language and ABC suggested they strike the language defining “direct store delivery.” The reasoning is, it is not currently defined in law and ABC does not think it is necessary. CRA is still in support of the bill, but please send us any concerns with our position.


Reminder- Historic PAGA Reform Signed Into Law, Effective Immediately

The two PAGA bills, which contain the language for the final negotiated PAGA Reform deal - SB 92 and AB 2288 - were passed by the legislature and signed by Governor Gavin Newsom with an urgency clause, which means the bills took effect immediately upon signing. View the Floor Alert for both bills here.


CRA will be hosting a briefing on what is in the bill package, how the negotiations came together and answer questions members may have after the bills have moved through the process & are signed. Be on the lookout for call information, which will be sent out soon.


Thank you to those who supported efforts to secure meaningful reform to CA's Private Attorney's General Act. These new laws will curb lawsuit abuse, allow employers the time to fix mistakes and make sure workers are made whole.


State Budget

Governor Newsom signed the 2024 State Budget bill. Get more info here.


Upcoming Legislative deadlines:

  • August 5 End of Summer recess; session resumes
  • August 15: Suspense File hearings in both houses
  • August 31 Year 2 session ends at 11:59pm


CRA Monthly Policy Calls

The following includes the remainder of the 2024 monthly policy call calendar covering this year's legislative session (dates are subject to change). Policy calls are held on Fridays at 10:00am PT.

  • August 16

Regulatory Updates

CalRecycle Updates


SB 54

Covered Materials Category List Published

Pursuant to Section 42061(a)(1) of the Public Resources Code (PRC), CalRecycle must establish and post a list of covered material categories (CMCs) by July 1, 2024. An updated list of categories can be found on the SB 54 Covered Material Categories webpage or by clicking here.


CMCs were previously published on December 28, 2023, pursuant to PRC 42061(c) and (d), which require CalRecycle to publish a list of categories that are deemed recyclable or eligible to be labeled as compostable. This new publication provides an update of covered material categories, including a list of changes that have been made since the prior publication. The update does not include an update to determinations of recyclability or compostability by CMC. CalRecycle will update the recyclability and compostability determinations annually (starting January 1, 2025), to meet requirements of PRC 42061(e). Read More.


Next Advisory Board Meeting

On July 19 from 10:00AM - 4:00PM, CalRecycle will host the next Advisory Board meeting for the implementation of SB 54 (Allen, Chapter 75, Statutes of 2022). During this meeting, the Advisory Board will discuss:

  • Presentation from CalRecycle: Updates and Next Steps on SB 54 Regulations
  • Barrier and Solutions to a Circular Economy, Consistent with SB 54: Compostability/Compostable Covered Materials
  • Barrier and Solutions to a Circular Economy, Consistent with SB 54: Leakage of Plastic into the Environment
  • Next Steps and Advisory Board Role Related to the SB 54 Plastic Pollution Mitigation Fund


Get more information including a link to the agenda and meeting access here.


CEQA Public Scoping Meeting

CalRecycle, as the Lead Agency, is preparing a Program Environmental Impact Report (PEIR) pursuant to the California Environmental Quality Act (CEQA) for SB 54 (Allen, Chapter 75, Statutes of 2022) Proposed Regulations.


On July 22 from 1:00PM - 3:00PM PST, CalRecycle will conduct a public scoping meeting for the purposes of soliciting written comments from interested parties, responsible agencies, agencies with jurisdiction by law, trustee agencies and involved federal agencies, as to the appropriate scope and content of the PEIR.


Get more information here.


PRO Producer Work Group Meeting #8

Circular Action Alliance (CAA), California's first and only approved Producer Responsibility Organization (PRO) for the implementation of SB 54 held their eight producer working group meeting. View CRA's recap here. The meeting deck, key takeaways and materials from PWG #8 and other previous working group meetings are available here.


The next CAA PWG meeting (PWG #9) will be held on July 16, 2024 at 9:00AM PST, where the CAA team will share an overview of CAA’s Participant Agreement. The Agreement will outline terms and conditions, confidentiality and verification and auditing requirements for producers. Registered producers should encourage their legal counsel to attend the July 16 PWG. Register here.


Registration for PWG #9 will close next Monday, July 15 at 12 pm ET. Attendees who are not signed up by the July 15 deadline will not be permitted to join the PWG.


Federal Battery and Critical Mineral Recycling Funding Opps Available

The US Department of Energy's Battery and Critical Mineral Recycling Program is designed to award grants for research, development and demonstration projects to create innovative and practical approaches to increase the reuse and recycling of batteries. The next estimated application opening date is Q3 2024. Visit Battery and Critical Mineral Recycling | Department of Energy to view eligible funding uses and to stay apprised of future funding opportunities.You may reach out to BatteryRecycling@hq.doe.gov for more information. 

CARB Updates


New Forklift Rule Approved

CARB passed a new regulation that will phase out the operation of large spark-ignited (LSI) forklifts in California and spur the use of zero-emissions alternatives. Under the rule approved June 27, manufacturers cannot produce or sell, for use in California, Class IV and Class V LSI forklifts – categories that largely operate on propane, gasoline and natural gas – beginning in 2026.


The rule also phases out the use of spark-ignited forklifts by large fleets, defined as 26 units or more, starting in 2028. The phase-out schedule is by model year and designed so that no forklift is required to be phased out before it is 10 years old. Smaller fleets will phase out the use of spark-ignited forklifts starting in 2029. Read more.


Next One-Stop Truck Event in Whittier

The Whittier Event is the next stop of a multi-stop roadshow that CARB is hosting throughout California. Join CARB, local agencies and air districts on July 23 in Whittier to get insight, education and resources on CARB’s clean truck and diesel regulations, compliance, funding and more. Each stop will provide an opportunity to listen to regulatory overview presentations, participate in one-on-one compliance discussions and meet CARB regulatory experts and incentive program staff. Get more info here.


Next TRIG Outreach Meeting - July 31

The next meeting of the Advanced Clean Fleet (ACF) Regulation Truck Regulation Implementation Group (TRIG) Outreach committee will be held on Wednesday, July 31 from 1:00PM - 2:30PM PST.


As a reminder, CRA's Sarah Pollo Moo is a member of CARB's TRIG Outreach Committee, which was created by the Agency to engage in active dialog with interested stakeholders to smooth implementation of the ACF Regulation. See the complete TRIG member selection list here

CalOSHA Updates


The Cal/OSHA Standards Board met and the agenda was packed. Below are highlights of several issues we are tracking for our members. Please reach out with questions.

 

Changes to Cal/OSHA Board

Former Chair Dave Thomas (Labor Representative) was removed from the Chairperson role and Public Member Joseph Alioto will be the new Chair going forward. Former Public Health Member Laura Stock was removed from the Board with multiple labor groups expressing disappointment at her removal.


Indoor Heat Regulation Passed

Heat Illness Prevention in Indoor Places of Employment Passed (info here). The Board finally passed the Indoor Heat regulation with the adopted text available here. No substantive changes have been made other than the removal of correctional facilities in the draft version we’ve had since April. The final vote was 5-0-1 with Management Representative Kathleen Crawford abstaining.

 

Pursuant to staff comments, we expect this to go into effect August 1 if the Office of Administrative Law (OAL) expedites its review, which we expect to happen.


Read more in Politico and CalMatters.

 

Crystalline Silica Hearing (info here)

The Board received a lengthy briefing from Division staff regarding turning the recent emergency regulation on respirable silica into a permanent regulation and the status of their draft. If you would like a copy please email sarah@calretailers.com and we will request it from Cal/OSHA staff. There are not any significant changes and much of the content is visible in the text itself, available at the above link.

 

For other related documents and additional background on the issues discussed during the June CalOSHA Board meeting, click here to access the meeting agenda.


California Community Pharmacy Coalition Updates

Legislative/Budget Updates

A budget trailer bill (AB/SB 164) passed and signed by the Governor increase the CURES fee from $9 to $15 effective 4/1/25. View the bill text here (see Section 3).


The CA Department of Finance released BTB Language that would align the COVID-19 vaccine administration payments to payment reimbursement structures for vaccines administered in accordance with the Medi-Cal State Plan. Read the proposed BTB language here.


After confirming all our requested amendments were taken by the author's office, the CRA team submitted a letter of support for AB 1902 (Alanis) Prescription drug labels: accessibility.


The CRA team is working on next steps for the Paxlovid Sunset extension issue.


Board of Pharmacy

The CA Board of Pharmacy's standing committees will be meeting next week. The CRA team will be in attendance and is working with CCPC members to review agenda items ahead of the meetings.

  • Enforcement and Compounding Committee July 17, 2024. Access the agenda here.
  • Legislation/Regulation Committee July 17, 2024. Access the agenda here.
  • Communication and Public Education Committee July 18, 2024. Access the agenda here.
  • Licensing Committee will meet July 18, 2024. Access the agenda here.
  • Full Board meeting July 31 – August 1, 2024


Medi-Cal Rx

CURES Version Update

Beginning August 1, 2024, all California dispensers of controlled substances will be required to report dispensations to the Controlled Substance Utilization Review and Evaluation System (CURES) using version 4.2B of the American Society of Automation in Pharmacy (ASAP) format. On and after this date, data submitted using the current CURES ASAP version 4.1 format will no longer be accepted.

Other Outreach and Activities

CRA President Named a Sacramento Business Journal 2024 Women Who Mean Business Honoree.


CRA President Michelin was honored at the Sacramento Business Journal's Annual Women Who Mean Business Awards event. Michelin was among a distinguished list of awardees who were celebrated as the Sacramento area's most dynamic, accomplished and influential businesswomen. The entire CRA team was in attendance.

California Retailers Association https://calretailers.com/
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.
Facebook  Twitter  Linkedin  Instagram