May 7, 2025 | CRA Newsletter: Legislative, Regulatory and Other Updates

Friday May 2 was the policy committee for any bills tagged fiscal, which includes most of the bills CRA is tracking. This Friday May 9 is the policy committee deadline for all non-fiscal tagged bills. The big deadline coming up is Friday May 23, which is when the Appropriations Committee will dispense with their suspense file, a major hurdle for all bills, and this is where many bills are held and effectively "die" for the year. March and April were very busy months for the CRA team consisting of monitoring and engaging in legislation throughout a series of policy committee hearings. See below for key updates on bills as we look towards the Appropriations Committees and subsequent floor sessions.

ALGORITHMIC PRICING BILLS

AB 446 (Ward) - OPPOSE

Amendments were presented to the author on behalf of the opposition coalition that would have:

- Outlawed raising of prices based on Personally Identifiable Information;

- Cleaned up “standard price” definition to clarify the above;

- Maintained existing loyalty/discount programs that require consent under the CCPA;

- Kept consistency with the CCPA:

• No Private Right of Action (PRA) creation – as limited PRA was explicitly part of CCPA deal.
• No new consent obligations around aggregate data – CCPA deals with this.
• No re-writing consent standards for Personally Identifiable Information (PII) – CCPA deals with this.

- Exemptions as needed for industries that don’t have a “standard price”

Unfortunately, Assemblymember Ward presented counter amendments that do not address the opposition's concerns. Specifically, his amendments add a list of requirements that you must meet in order for a loyalty rewards programs to be exempted. These requirements for “exceptions” are going to be problematic, particularly the requirement that any data collected can only be used to offer the discount. CRA remains opposed to the bill.

SB 259 (Wahab) - OPPOSE

Recent amendments would require a clear and concise disclosure next to any price that an algorithmic pricing system was used to determine. Additionally, this bill prohibits, among other things, the use of geolocation data to determine a price, which are major issues for the retail industry.

FEEDBACK REQUESTED: Please provide CRA with some examples that highlight the need for the ability to provide prices based on geolocation data.

SB 295 (Hurtado) - CONCERNS

CRA has specific concerns about the original definition "competitor data" that included publicly available data. However, the definition was amended in committee to now state:

"Competitor data" includes the confidential, competitively sensitive information of two or more competitors in the same market. For purposes of this chapter, the user of the pricing algorithm is considered a competitor if the user provides confidential, competitively sensitive information for use in, or incorporation by, the algorithm, or competes with one or more entity that provides confidential, competitively sensitive information for use in, or incorporation by, the algorithm.

FEEDBACK REQUESTED: CRA needs feedback on this definition to present to the author. 

SB 384 (Wahab) - OPPOSE

Essentially outlaws the use of Artificial Intelligence to set prices. Conflates algorithmic pricing with price fixing (which is already illegal). Bill is focused on goods/services and rental housing. CRA is going to meet with the author’s staff to highlight concerns. 

SELF CHECKOUT

CRA continues to meet with the author’s staff and bill sponsors to address our concerns with SB 442 (Smallwood-Cuevas). As of now, in good faith to continue negotiations, CRA has not taken a position on the bill. The most recent round of amendments was significant and addressed a good number of CRA’s concerns. There is still work to be done on this issue and we appreciate the feedback we’ve received from our members.

FASHION ACT

CRA has lobbied AB 405 (Addis) extensively and provided lead opposition testimony is the Assembly Environmental Safety and Toxic Materials and Natural Resources Committees. The bill is currently on the Assembly Appropriations Committee’s suspense file. We are working to ensure it receives a high (and accurate) price tag to give cover to the committee to hold the bill and effectively kill it for the year.

WORKPLACE SURVEILLANCE

CRA has been actively engaging on AB 1221 (Bryan), AB 1331 (Elhawary), SB 238 (Smallwood-Cuevas), and AB 325 (Aguiar-Curry), all having to do with workplace surveillance. All of these bills are now in the Appropriations Committee.

FEEDBACK NEEDED: CRA is still seeking feedback form members that will help our lobbying efforts. We expect a tough floor fight on AB 1221 and AB 1331.

AUTOMATED DECISION SYSTEMS (ADS)

AB 1018 (Bauer-Kahan), SB 7 (McNerney), and SB 420 (Padilla) are all related to the use of ADS in employment. CRA is actively engaged in discussions with Assemblymember Bauer-Kahan regarding AB 1018 and is waiting for feedback from staff on CRA’s comments/concerns. CRA has been monitoring both SB 7 and SB 420. We foresee these three bills coming to a head at some point in the near future as they will have to be dealt with in some fashion due to the conflicts with each bill.

ENVIRONMENTAL BILLS

CRA provided lead testimony on AB 728 (Lee) and AB 823 (Boerner) in Assembly Environmental Safety and Toxic Materials Committee. AB 823 barely got out of committee and AB 728 was questioned a lot by committee members, but ultimately passed out of committee. CRA is meeting with Asm. Boerner to discuss our continued concerns with the bill and what amendments would make the bill as workable as possible, but we maintain that AB 728 needs to be stopped.

CRA continues to oppose SB 501 (Allen) unless the bill is amended to include opposition coalition's fee-based counter proposal to the bill's Extended Producer Responsibility (EPR) Program. Allen's office sent over amendments to the bill, which we are reviewing, but the amendments do not include the counter proposal, which is still being discussed by the bill's author sponsors and the opposition coalition. Negotiations will continue into the second house should the bill make it past Appropriations.

SB 682 (Allen) continues to be a very problematic bill and CRA is part of a coalition working hard to kill the bill. This is a redo of former Senator Nancy Skinner's SB 903 PFAS bill with some minor tweaks. There are three timelines in the bill: a 2027 ban for certain covered products; a 2033 timeline for the vast majority of products; and a 2040 timeline for the limited remaining sectors not covered under the first two. Allen continues to use the expansive intentionally added definition of PFAS, along with the convoluted “currently unavoidable use” petition process. Recent amendments are expected for medical devices, but there are still too many issues with other market segments that the oppose coalition remains opposed with the objective to stop its progress in the legislature. The American Chemistry Council, one of the groups leading the opposition, is running ads against the bill.

THE CALIFORNIA INVASION OF PRIVACY ACT (CIPA) REFORM

Despite the unanimous committee vote in Senate Public safety last week, there remains a significant gap in general understanding around the current state of CIPA, particularly regarding the role of the California Privacy Protection Act (CPPA). The coalition supporting SB 690, which CRA is part of - the Alliance for Legal Fairness (ALF) - is working to clarify these issues. ALF expects the bill to move to the second house before any changes are made, but anticipates the need for future amendments as no legislative compromise should leave any industry exposed. ALF is also working on media outreach to support the bill including preparing an op-ed from the bill's author, Senator Caballero.

OTHER BILLS

SB 310 (Weiner) is a bill that seeks to undermine last year's PAGA agreement. CRA has joined a coalition actively lobbying against the bill. There was a good discussion in Senate Labor and Judiciary Committees. Hopefully this bill will not make it past the Appropriations committee, but we are ready to fight it on the Senate floor if needed.

SB 22 (Laird), gift card redemption, is now on the Senate floor. The bill was recently amended to remove the annual CPI adjustment, but retains the increase to $25 starting 2026, as well as the signage requirement. Though the bill is sure to pass the Senate floor, CRA will still actively engage and reassess how to move forward once the bill makes it to the Assembly.

AB 380 (M. Gonzalez), price gouging, is going to be amended from the duration of any emergency proclamation down to 180 days. This amendment may happen in the Assembly Appropriations committee, Assembly floor or Senate.

AB 916 (Lee) which would have restricted certain antibacterial ingredients in soaps is dead for the year as it was not heard in its final policy committee before the deadline.

AB 710 (Irwin), which was CRA’s sponsored gift card theft/fraud bill failed to get a hearing and therefore won’t be moving forward.

AB 1371 (Sharp-Collins), which would’ve allowed employees to refuse to work in various conditions they deemed unsafe, was turned into a two-year bill and may be reintroduced in January 2026.

SB 222 (Weiner), which would’ve allowed for companies to be sued for civil damages relating to climate disasters, failed passage in the Senate Judiciary Committee.

SB 799 (Allen), which would’ve allowed for bounty hunter lawsuits brought against taxpayers of any industry for tax claims, including claims already resolved by the tax agency, failed passage in the Senate Revenue and Taxation Committee.

Legislative Deadlines:

• May 9, 2025 - Last day for policy committees to meet
• May 23, 2023 – Last day for fiscal committees to meet
• June 6, 2025 - House of Origin deadline (bills must pass the House they were introduced in)
• June 15, 2025 - California State Budget due
• July 18, 2025 - Summer Recess begins
• August 18, 2025 - Legislature Reconvenes
• September 12, 2025 - Last day to pass bills; Interim recess begins upon adjournment

Local Updates

City of Los Angeles Tourism Minimum Wage Increase Proposal Update

There is growing opposition around the plan for a $30 tourism minimum wage increase. Two City Council members joined a coalition of hoteliers this week to warn against what they see as potential impacts of a proposal that would increase the minimum wage for tourism workers to $30 an hour by 2028.

Councilman John Lee, who represents neighborhoods in the west San Fernando Valley, said the city is already facing a staggering $1 billion shortfall in the 2025-26 fiscal year. A plan to raise the minimum wage for hotel and airport workers would only make the "situation dramatically worse," as the tourism and hospitality industries are already feeling the impacts from COVID-19, federal policies and January's wildfires. Read more. CRA is part of the opposition to the minimum wage increase.

Additionally, CRA signed on to a letter to the Los Angeles City Council that LA BizFed has organized from LA’s broader business community urging the LA City Council to adopt a fiscally responsible budget that prioritizes economic recovery, protects essential services and jobs and avoids launching new costly mandates/programs the City can’t afford to administer or staff. CRA has been engaged in opposition efforts around the City of LA's Tourism Ordinance and the proposed Costly Restaurant Ordinance, both of which are referenced in the letter as examples of unnecessary new City mandates/mandates that would require expanding staff in departments already facing significant cuts. Read the draft letter HERE. We will share the final version that is submitted to the Council as soon as we have it.

City of Santa Cruz's Sugary Soda Tax Defies State Law Banning Local Governments from Imposing Grocery Taxes

A tax on sugary drinks took effect yesterday in City of Santa Cruz, seven years after California banned its cities and counties from implementing local grocery taxes as part of a deal with the beverage industry. The 2-cent-per-ounce tax, approved by Santa Cruz voters in November, is the first in the state since lawmakers approved the 2018 deal. The American Beverage Association opposed the citywide ballot measure and in court called the tax illegal and likely to strain city resources. Santa Cruz officials are prepared to challenge the state's preemption law in court, and despite the legal uncertainty, hope their new tax will spur other states and cities to act. Read more.

Federal Update

USTR Section 301 Shipbuilding Remedies

CRA joined over 300 trade associations in signing on to a letter to the US Trade Amabassador Jamieson Greer urging the US to refrain from imposing its proposed actions in response to the Section 301 investigation of China’s targeting the maritime, logistics and shipbuilding sectors for dominance. View the letter HERE.

Legislative Updates

The CRA team continues to advocate for CCPC priorities in AB 1503, the Board of Pharmacy's Sunset Review bill. We met with all members of the Assembly Business and Professions Committee, including the committee consultant, regarding increasing the pharmacy technician to pharmacist ration with Pharmacist in Charge Authority. Now that the bill language is in print, we are working on adding additional CCPC priorities to our advocacy efforts as we continue collecting feedback from members. Please send us any and all feedback on the bill ASAP so we can evaluate next steps.

Regulatory Updates

Medication Error Reporting Update

In September 2024, the Board approved the Institute for Safe Medication Practices (ISMP), an ECRI Company, as the entity to receive and review medication error reports under BPC section 4113.1. A community pharmacy shall submit the report no later than 14 days following the date of discovery of the error. The community pharmacy shall maintain records demonstrating compliance with this requirement for three years and shall make these records immediately available at the request of a Board of Pharmacy inspector. Get more information HERE.

2024 Annual Reports and 2026 Annual Program Budgets for Covered Drugs and Home-Generated Sharps Waste

On April 30, 2025, CalRecycle determined MED-Project’s 2024 annual reports and 2026 annual program budgets for covered drugs and home-generated sharps waste complete. Read about the determinations made in the signed letters and get additional information HERE.

On April 30, 2025, CalRecycle also determined The Drug Takeback Solutions Foundation’s (Foundation) 2024 annual reports and 2026 annual program budgets for covered drugs and home-generated sharps waste complete. Read about the determinations made in the signed letters and get more information HERE.

The Drug Takeback Solutions Foundation Submits Proposed Changes to its Stewardship Plan for Covered Drugs

On April 25, 2025, The Drug Takeback Solutions Foundation notified CalRecycle of proposed changes to its stewardship plan for covered drugs related to reasonable geographic spread of authorized collection sites. CalRecycle is reviewing the proposal as a significant change, pursuant to Public Resources Code section 42032(e) and Title 14 of the California Code of Regulations section 18973.1(i).

View the proposed changes and how to submit comments HERE. Comments are due May 16.

Prescribers with Restricted Authority to Prescribe Controlled Substances

The BoP distributed a list of prescribers whose authority to prescribe controlled substances has been restricted by the Medical Board of California. The Board of Pharmacy is making this information available to prevent the dispensing of prescriptions for controlled substances issued by restricted prescribers. Get more information including the list HERE.

Other Updates

Now Active: Completion of Pediatric Integration of Members 21 Years of Age and Younger

Effective April 25, 2025, all claims are subject to UM edits and PA requirements for all members and for all drugs/products, including claims for continuing therapy prescriptions for pediatric members 21 years of age and younger. For more information providers may review the Now Active: Completion of Pediatric Integration of Members 21 Years of Age and Younger alert HERE.

We are excited to share a great opportunity for members to join the CRA team and members of the California State Legislature at the ballpark on May 20th in Sacramento. We are excited to host an event benefiting either the CalRETAILERS PAC or our 501c3 Educational Fund. The event will be held at Sutter Health Park in West Sacramento at 6:30PM PST where we have secured a suite for the Athletics vs Anaheim Angels baseball game.

There are only 20 tickets available so reserve your spot TODAY by emailing us at cra@calretailers.com.

Get more information HERE.

The California Business Outlook and Dinner

Safe Credit Union Convention Center

1400 J Street, Sacramento, CA 95814 

June 4

On June 4, 2025, Cal Retailers, in collaboration with the Cal Chamber, Cal Restaurants, Cal New Car Dealers, Western Growers, and Visit California are hosting the first annual California Business Outlook and Dinner, which was previously the Sacramento Host Breakfast.

As a presenting sponsor, CRA has two tables at the event, tickets to the VIP reception with the Governor (invited), an opportunity to highlight a member CEO on a panel with other CEO's and a video highlighting retails impact on this state. We are expecting approximately 1,000 business leaders from around the state, including local and state elected officials. 

In addition, for the first time ever, we will have a massive business lobby day, encompassing multiple trade associations at the Capitol that will focus on legislation that the entire business community is working on. More details are forthcoming on the lobby day.

Get more information about the event HERE.

SAVE THE DATE!

CRA RETAIL POLICY, LEGAL AND REGULATORY SUMMIT

The Meritage Resort and Spa

875 Bordeaux Way Napa, CA 94558 

October 26-28

Join the California Retailers Association in the Fall for our first-ever Retail, Legal and Regulatory Summit, a premier three-day event set in the scenic Napa Valley, convening national retailers, policy makers, regulators and legal experts in addressing the most pressing legislative, legal and regulatory issues impacting the retail industry in California and beyond. The conference will offer an unparalleled opportunity for retail professionals to gain insights into California's complex regulatory landscape, its impact on other states and trends for the rest of the nation. Registration, sponsorships and additional information coming soon!

CRA Team Attends Circularity 2025 Conference

CRA's Rachel Michelin and Sarah Pollo Moo attended Circularity 2025, one of the largest environmental conferences in the US that focuses on advancing solutions for the circular economy. "Focused on accelerating systems change, Circularity empowers attendees to rethink how we make, sell and circulate products in order to build a just, resilient and regenerative economy". The event provided a great learning and networking opportunity for the CRA Team as we continue to engage in myriad of environmental related legislation and regulation in California including Extended Producer Responsibility and Product Stewardship Programs that place a lot of responsibility on the retail industry to manage end of life for products made all over the world. The event was held in Denver, Colorado and featured a tour of Tersus Solutions Facility, which "supports the circular economy and drastically reduces the textile industry’s environmental impact by utilizing a closed-loop waterless cleaning system that preserves water and electricity, captures microplastics and ultimately extends the life of textiles. Learn more about the event HERE.

Pictured: CRA's Rachel Michelin and Sarah Pollo Moo at a tour of Tersus Solutions alongside Scot Case, National Retail Federation's Vice President of Corporate Social Responsibility & Sustainability and representatives of Goodwill Industries.

We will be sending out notices for our May committee meetings (schedule listed below), which will include links to register for your unique zoom link to access the meetings. Please be on the lookout for those emails. All committee meetings for 2025 have been scheduled and calendar invites sent. If you have questions about our new committee meeting process please email sarah@calretailers.com.

MAY COMMITTEE CALLS

The May committee schedule is as follows.

• Privacy and AI Committee - met on Friday, May 2; 11AM PT
• Environment - Thursday, May 15; 10AM PT
• Policy and Regulatory - Friday May 16; 11AM PT
• Labor - Thursday, May 22; 10AM PT
• Supply Chain - Tuesday, May 20; 11AM PT
• Beauty - Tuesday, May 20; 12PM PT
• Food and Grocery - Thursday, May 22; 11AM PT
• Legislative - Friday, May 30; 11AM PT
• Pharmacy - Friday, May 30; 12PM PT