May 16, 2024 | CRA Newsletter: Legislative, Budget, Regulatory, Local & Other Updates | |
Message from the President | | |
It has been a busy month in Sacramento ending with Suspense committee where the fate of over 1,000 bills was in the balance. With the state facing a record budget deficit, we expected a bit more fiscal discipline from our friends in the State Capitol and while the Assembly showed some restraint the Senate was much more liberal in letting a number of bills out of committee to continue through the legislative process. While it was disappointing, I am confident that in the end CRA will continue to successfully advocate for the retail industry in California and either stop some of the onerous bills or significantly improve them.
Next week we anticipate the 12 bill Retail Theft package to be voted on in their respective houses. The Assembly has seven bills that bring new felonies for serial shoplifting, clarifying aggregation laws, bring back multi-jurisdictional prosecution, add sentence enhancements for property damages during a theft, add railroad to cargo theft, institute a "retail theft restraining order" and eliminate the sunset for the ORC Taskforce and statue in Penal Code 490.4. The State Senate is considering five bills in their package including a new felony for professional shoplifting, guardrails on offsite transactions related to on-line marketplaces, sentencing enhancements for arson in stores, sentencing enhancements for selling, exchanging or returning property acquired through theft and increase criminal penalties for car break-ins. This is the most comprehensive package of bills I have ever seen that has bi-partisan support in the Legislature as well as support from the Governor.
I hope you will take a few minutes to read all of the updates in the May newsletter - there is a lot of information including California's new Cal Recycle Director, background on the May Revise that sets the stage for the State budget negotiations, updates on SB 54 and the work of the Advisory Committee as well as the rulemaking process and recent guidance released by the Attorney General on SB 478 related to hidden fees.
I also hope you will join me and the CRA team in Napa for our 2024 Annual meeting in September as we debrief on what happened in the legislative session and start planning for 2025.
As always, if you have any questions or need additional information, please don't hesitate to reach out.
Rachel
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In CRA's April 2024 Newsletter Issue:
- Suspense File and Other Legislative Updates
- Regulatory Advocacy & Local Updates
- CA Community Pharmacy Coalition Updates
- Upcoming Events
- Other Outreach and Activities
- CRA In The News
- Member News
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Suspense File and Other Legislative Updates | | |
The CRA team prepared a snapshot of results from both Assembly and Senate Suspense hearings, which were held today. Through our lobbying efforts, CRA secured a number of wins on legislation impacting our members. The recap is below. There are three options for results since we are in the second year of the 2023-2024 legislative session; Either the bill failed in committee, passed out of committee or passed out of committee with amendments. If the bill was amended, those amendments will be in print in the coming days. Two year bills that carried over from 2023 are waiting committee assignments, which are expected end of May or in June. CRA will send out a more comprehensive update on legislation next week.
Please reach out to Ryan@calretailers.com if you have any questions on the results or amendments. Also, please log in to your member portal account on Cal Retailers' website to view advocacy letters related to these bills. If you need assistance including creating a member portal account or resetting your password, please reach out to sarah@calretailers.com.
Reminder: The CRA team is holding our next monthly policy call tomorrow, May 16, to review these results with our members and discuss next steps. If you would like to be added to the monthly policy calls or believe you are on them, but did not receive the calendar invites, please reach out to sarah@calretailers.com.
CRA WINS
CRA Lobbying Helped Stop the Following Bills in Appropriations Committee:
AB 2066 (Reyes) The California Food Safety Act. Oppose.
AB 2491 (Lee) Cosmetic products: safety. Oppose.
AB 2762 (Friedman) Recycling: reusable beverage containers. Oppose.
AB 3204 (Bauer-Kahan) Data Digesters Registration Act. Oppose.
SB 903 (Skinner) PFAS. Oppose.
CRA lobbying helped move the following bills to the Floor:
RETAIL THEFT BILLS:
AB 2943 (Zbur/Rivas) Crimes: shoplifting. Support.
AB 1794 (McCarty) Crimes: larceny. Support.
AB 1960 (Soria) Sentencing enhancement: property loss. Support.
AB 1802 (Jones-Sawyer) Extends the sunset on retail crime task force. Support.
AB 3209 (Berman) Retail theft restraining order. Support.
SB 905 (Wiener) Crimes: theft from a vehicle. Support.
SB 982 (Wahab) Crimes: organized theft. Support.
SB 1144 (Skinner) Online marketplaces. Support.
SB 1242 (Min) Crimes: fires. Support.
SB 1416 (Newman) Sentencing enhancements. Support.
OTHER LEGISLATION:
AB 2223 (Aguiar-Curry) Industrial hemp. Support.
SB 1059 (Bradford) Cannabis: local taxation: gross receipts. Support.
SB 1231 (Allen) SB 54 clean up bill. Support.
CRA lobbying helped secure amendments that made these very bad bills much better
AB 2374 (Haney) Displaced janitors. Oppose
Legislation that was not on suspense and currently on the floor or in second house:
AB 1779 (Irwin) Cross-jurisdiction aggregation (PART OF RETAIL THEFT PACKAGE)
AB 1990 (Carrillo) Criminal procedure: arrests: shoplifting (PART OF RETAIL THEFT PACKAGE)
AB 2371 (Carrillo) Electrified security fences.
AB 2513 (Pellerin) Gas stoves and ranges: warning label.
AB 2863 (Schiavo) Automatic renewal and continuous service offers.
AB 2991 (Valencia) Alcoholic beverage control: retailer payments: electronic funds transfers
AB 3048 (Lowenthal) Alcoholic beverage control: retailer payments: electronic funds transfers
SB 1103 (Menjivar) Tenancy of commercial real properties: agreements: operating costs.
SB 1137 (Smallwood-Cuevas) Discrimination claims: intersectionality of characteristics.
SB 1272 (Laird) Gift certificates.
SB 1280 (Laird) Propane cylinders: reusable or refillable.
SB 1494 (Glazer) Local agencies: Sales and Use Tax: retailers.
Legislation that died before Appropriations committees and suspense:
AB 2829 (Papan) Digital Advertising Services Tax Law.
AB 2896 (Valencia) Alcoholic beverages: tied-house restrictions: advertising.
AB 3058 (Low) Universal basic income: employment replaced by AI.
AB 3124 (Low) Internet websites: personal information.
AB 3151 (Gipson) Chassis
AB 3250 (Carrillo) Wage deduction: tardiness
SB 1154 (Hurtado) California Preventing Algorithmic Collusion Act of 2024.
SB 1167 (Blakespear) Solid waste: single-use drinking vessels.
SB 1309 (Padilla) Lithium Battery Production Council
SB 1345 (Smallwood-Cuevas) Employment discrimination: criminal history info
SB 1434 (Durazo) UI: benefit and contribution changes.
Upcoming Legislative deadlines:
- May 24 Last day for each house to pass bills introduced in that house (House of Origin deadline)
- May 28 Policy committees can resume.
- June 15 Budget bill must be passed by midnight
- July 3 Summer recess begins
- August 5 End of Summer recess; session resumes
- 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.
- May 17
- June 21
- No meeting in July
- August 16
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Governor Gavin Newsom unveiled the revised 2024-25 California State Budget, known as the May Revise. The May Revise is an annual tradition in Sacramento and is intended to update the Governor’s Budget that was released in January now that the State’s tax revenues have been received. The budget has been reduced by $23 billion compared to last year's, now totaling $288 billion. The budget reflects a growing deficit, now estimated at $44.9 billion, due to a $7 billion increase since the budget was initially proposed in January.
The Legislature adopted early actions to reduce current year spending, totaling $17.3 billion in solutions, as a result the shortfall is mitigated to approximately $27.6 billion. According to the Governor, despite substantial fiscal challenges, the revised budget aims to preserve current service levels across most health care, social services, and other essential programs. Governor Newsom emphasized that while some core services might be impacted, the plan primarily supports the continuation of existing programs without significant cuts. However, he also referred to over 200 cuts being made to the Budget, details of which are expected to be released next week. Read more.
Of special notes in the CRA team's recap of the May Revise:
- One additional feature of the May Revise is the inclusion for the California Air Resources Board to implement two corporate climate disclosure laws, SB 253 and SB 261.
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The California Department of Finance released their state budget trailer bills language ahead of schedule. Not all language is in yet, but the information that is out early can be viewed here.
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Regulatory Advocacy & Local Updates | | |
California Community Pharmacy Coalition Updates | | |
The CCPC met on April 19 and May 10 to discuss legislative and regulatory updates and activities, which include the information provided below.
Legislative Updates
Suspense file updates:
The CRA team sent supplemental label language to Assemblymember Juan Alanis' office regarding his AB 1902. Once that language is incorporated into the bill, the CCPC will move to a support position.
CRA submitted a CCPC support letter to Assembly Appropriations Committee for AB 3063 (McKinnor).
Board of Pharmacy
The BoP held a board meeting on April 25th. Included in our recap are the following takeaways from the meeting:
- The full board did not vote to pursue central fill regulations or new non-resident pharmacy requirements;
- upcoming sunset report was discussed;
- additional potential requirements for nonresident pharmacies and mail order;
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Formall oppose position taken by the Board on SB 1365 (Glazer).
Get the full recap here.
Renee Armendariz Barker, of San Carlos, has been reappointed to the State Board of Pharmacy, where she has served since 2022. Armendariz Barker has been Sterile Products Manager at the Lucile Packard Children’s Hospital Stanford since 2019. She is a board-certified Sterile Compounding Pharmacist and received a Compounded Sterile Preparations Certificate from the American Society of Health System Pharmacists.
The Board of Pharmacy (Board) released a Notice of Proposed Action to amend Article 4.5, add Articles 4.6, 4.7, and 4.8, and repeal Article 7 of Title 16, Division 17, of the California Code of Regulations related to Compounded Drug Preparations. The Board will accept comments to the proposed text through Monday, June 3, 2024. Read more here.
Medi-Cal Rx
The Medi-Cal Rx Diagnosis Crosswalk has been updated. View the update here.
The How to Address Reject Code 80 – Diagnosis Code Submitted Does Not Meet Drug Coverage Criteria alert has been published. View the alert here. Effective April 30, 2024, Medi-Cal Rx will implement claim UM edits for Code I diagnosis restriction (Reject Code 80) for members 22 years of age and older.
Refer to the Medi-Cal Rx Diagnosis Crosswalk to identify accepted diagnosis or International Classification of Disease – 10th Revision (ICD-10) code(s) to meet the Code I diagnosis restriction.
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NRF Protect
Tuesday, June 4 - Thursday, June 6
Long Beach, CA
SPECIAL OFFER for NRF PROTECT!
California Retailers Association members will always receive the NRF Member rate when registering for NRF PROTECT using NRF's special offer code!
With a focus on solving complex security challenges like organized retail crime, data breaches, crisis management and e-commerce fraud, NRF PROTECT is where you will find the experts and insights to help mitigate risks, safeguard your assets and reduce potential loss. Explore session topics and discover opportunities to dive further into certain topics with NRF's expanded number of featured sessions focusing on role-specific and cross-functional engagement during moderated group table talks and special add-on programs during the registration process.
California Retailers Association promo code: CRASAVE
Steps to Register:
- Enter company credentials
- Select All-Access Pass
- Fill in your information
- Select any additional add-on experiences you would like to add
- Enter Unique Promo code CRASAVE. If you are not already a member of NRF, once the code is entered you will see the price drop to the member rate.
- Complete payment
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Contact registration@nrf.com for any registration related questions
Learn more at https://nrfprotect.nrf.com/
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CRA Annual Meeting
Sunday, September 15 - Tuesday, September 17
Napa, CA
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
CRA Non-member: $450
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The booking link for CRA's group rate will be provided following payment of event registration | |
Cal Retailers' Annual Meeting will include the
Second Annual California Retail Law Summit
Tuesday, September 16
Napa, CA
Registration now open!
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
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The booking link for NRF/CRA group rate will be provided following payment of event registration | |
Other Outreach and Activities | | |
CRA President Speaks at Cal Chamber Capitol Summit Panel on Retail Theft
CRA President Michelin particpated in a panel discussion on tackling retail theft and public safety at the California Chamber of Commerce's Capitol Summit alongside CA Assembly Select Committee on Retail Theft Chair Assemblymember Rick Chavez Zbur, Assemblymember Juan Alanis and Senator Tom Umberg.
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CRA President Speaks at Sacramento Press Club Luncheon Focused on Prop. 47
CRA President Michelin spoke on a panel titled “What is the future of Prop. 47?” sponsored by Sacramento Press Club and moderated by KQED’s Marisa Lagos. Other panelists included Sacramento County District Attorney Thien Ho; Californians for Safety and Justice Executive Director Tinisch Hollins and Public Policy Institute of California's Magnus Lofstrom.
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CRA President Speaks at PPIC
Statewide Leadership Council Meeting
CRA President Michelin spoke at the Public Policy Institute of California's (PPIC) Statewide Leadership Council meeting in San Francisco. Michelin was on a panel focused on crime in California, which also included PPIC's Magnus Lofstrom, Cal Chamber President Jennifer Barrera, American Civil Liberties Union of Northern California's Executive Director Abdi Soltani and CA Senate Committee on Public Safety's Chief Counsel Mary Kennedy.
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Additional CRA team Outreach and Activities
CRA Government Affairs Director Ryan Allain spoke at the VCCM lunch meeting focused on Organized Retail Crime.
The CRA team attended the grand opening of Target's new food distribution center in Sacramento, which is providing hundreds of jobs for the region. Local elected representatives were also in attendance including Sacramento County Supervisor Phil Serna and staff from Assemblymember Kevin McCarty and Senator Angelique Ashby.
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Visit California: Tourism Spending in California Reaches Record High
Travel spending in California reached a new record in 2023 as visitors from around the world flocked to the Golden State. According to a new report released by Visit California, the state’s tourism economy generated $150.4 billion in travel spending last year, surpassing the prior record $144.9 billion spent in 2019 before the pandemic halted travel. Tourism created 64,900 new jobs in California in 2023, bringing total industry employment to 1,115,000 (98% of pre-pandemic employment levels). Read more.
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