CRA Member Newsletter November Edition

CRA Member Newsletter

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

November 30, 2023 | CRA Newsletter: Legislative, Political, Regulatory, Local & Other Updates

Message from the President

As we come to the end of 2023 the CRA team is still hard at work on behalf of or members.

Things we are looking at are conversations around AI and its use in the retail industry. We have sent out a request to members asking to help benchmark how retailers are using this technology so we can be proactive as conversations begin in the new legislative session.

Be sure to mark your calendar for CRA Advocacy Days at the Capitol as well as our Retail Champion of the Year Awards Reception. Join us as as we advocate for the industry and recognize those policy makers who have championed issues important to our members.

We are actively engaged in many policy issues related to Cal Recycle and the implementation of SB 54. In addition, we have continued our conversations with the author of SB 707 related to the proposed textile EPR and have been part of a coalition looking at how we can streamline the Bottle Bill. Circular economy and environmental sustainability will certainly be top of mind next year and CRA is well positioned to advocate for the industry as these discussions take place.

As a reminder, the State Legislature returns on January 3, 2024 with an end of the month deadline to pass two year bills out of the house of origin. We have a few bills we are monitoring and will share the updated bill list at the beginning of the year. In addition, the deadline to introduce new legislation is February 17, 2024, and we anticipate a number of new policy proposals we will be reviewing.

Again, thank you for your support of CRA and the work that we do for the retail industry in the state.

Happy holidays!

Rachel

In this Issue:

Legislative and Political Updates
Save the Date for CRA Advocacy Days
Regulatory and Local Updates
CA Community Pharmacy Coalition Updates
CRA Outreach and Activities
CRA In The News
Cal-ORCA Updates

2023 Legislative and Political Updates

Artificial Intelligence

Next year's legislative session will be here quickly, kicking off on January 3. As such, the CRA team sent questions to our members that the CRA team thinks will be top of mind for legislators going into the second year of the 2023-2024 legislative cycle. We anticipate a lot of AI related legislation and our members' feedback will help us prepare for advocacy efforts around this issue. Please provide feedback by Wednesday, December 20. Responses can be emailed to cra@calretailers.com. To view the list of questions we sent out click here.

Additionally, President Biden issued an Executive Order on managing the risks of AI. The EO “establishes new standards for AI safety and security, protects Americans’ privacy, advances equity and civil rights, stands up for consumers and workers, promotes innovation and competition, advances American leadership around the world and more.”

View the Executive Order here. View the EO Fact sheet here. Read two articles on the EO here and here.

The Newsom Administration also released a report outlining the state’s opportunities to use Generative Artificial Intelligence (GenAI) while highlighting potential harms. This is the first of several expected reports and deliverables required by the Governor's Executive Order issued earlier in the year. View the report here. Read more about the report and its release here.

Select Committee on Retail Theft

Assembly Speaker Robert Rivas announced the creation of the Select Committee on Retail Theft for the 2023-24 Regular Session. View the committee membership here.

Cal Retailers will be engaging with the Select Committee through the Californians for Safe Stores and Neighborhoods Coalition, which was formed for business leaders and retailers representing numerous industries across California, to come together to combat Retail Theft. The coalition, recognizing that the safety of employees, customers and neighbors are at stake, will continue to work with state leadership to implement effective strategies to combat retail crime that put businesses, employees and consumers at risk. Read CRA's statement in response to the select committee announcement here.

The first hearing is anticipated to be held in a few weeks and CRA President and CEO Rachel Michelin will be among those called to testify. The CRA team will update our members as soon as we have more specifics. Michelin has also begun having productive conversations with members of the new committee including the Chair, Assemblymember Kevin McCarty, each of who reached out to CRA shortly after the committee was announced.

Speaker Rivas also made an initial round of new committee assignments. Click here to view the list.

Save the Date - CRA Annual Advocacy Days

Save the date for our 2024 Advocacy Days, which will be held Tuesday February 6 and Wednesday, February 7 in Sacramento. The CRA team will be sending out an official save the date within the next week. Please look out for details and add the event to your calendar. This will be an important opportunity to get before state legislators at the start of year two of the 2023-2024 legislative session to highlight our legislative priorities. We will also be holding a board meeting and hosting our legislative reception where we will announce our Retail Champions.

Regulatory and Local Updates

CalRecycle Updates

SB 54 Packaging

Workshops

The CRA team continues to attend all SB 54 informal rulemaking related workshops. Below is a list of workshops and recaps we have exclusively provided to our members since the last monthly newsletter. All related workshop notices and materials including presentation slides have also been provided. Please reach out to sarah@calretailers.com with questions.

PRO Application Workshop. Read the recap here. PRO applications are due by 11:59 PM PT January 1, 2024.
Non-Regulatory Workshop on Covered Material Categories list and Needs Assessment. Read the recap here.

Upcoming workshops:

Thursday, December 14th; 10:00AM - 12:00PM. Topic: non-regulatory. The first half of the workshop will include an overview of the needs assessment and the component studies that will be conducted by department staff or contracted out. The second half of the workshop will focus on data that the Department currently has, and requests for that data that could aid in the needs assessment studies.

Stakeholder and PRO Outreach

The CRA team continues to participate in key SB 54 stakeholder meetings including the National Stewardship Action Council's SB 54 working group, which is made up of a diverse array of industries impacted by the regulation, and having regular conversations with the Circular Action Alliance (CAA), a nonprofit Producer Responsibility Organization (PRO) established to support the successful implementation of Extender Producer Responsibility (EPR) laws for paper and packaging in the U.S. CAA is applying to be the PRO in California.

CRA is closely monitoring next steps in the implementation of SB 54 and how our members will need to comply. Critical to SB 54 compliance in the coming weeks is the selection of the PRO, which will administer SB 54 and manage many producer compliance obligations on their behalf.

Earlier this year, Colorado selected CAA as the PRO to administer its EPR law and help producers meet their compliance obligations. CAA’s vision is to operate as a PRO in all states that have enacted EPR laws for paper and packaging – including California – to deliver harmonized best-in-class compliance services to all producers, scale innovation and build systems that help both companies and consumers waste less and recycle more.

CAA will be applying by the end of this year to act as California’s single PRO representing all producers. As part of their application, CAA is requesting that producers support the organization with a non-binding letter of support. Letters in support of CAA will be critical to ensuring that CAA is selected and able to act as a harmonized single point of compliance for producers both in California and across states.

CAA has also been working to help make producers aware of upcoming requirements across EPR states, and to help producers begin to understand their compliance obligations (including questions like “am I an obligated producer?” and “what should I do to prepare my packaging data for reporting?”). CAA encourages CRA’s members to attend the organization’s December 5 Producer Working Group Meeting where CAA will start to unpack these questions and more. To learn more about CAA click here. To sign on to a letter of support and for any questions, please email Sarah at sarah@calretailers.com.

SB 54 Advisory Group

As a reminder, CRA President and CEO Rachel Michelin was named to the inaugural Plastic Pollution Prevention and Packaging Producer Responsibility (SB 54) Advisory Board and will be serving as an important voice for the retail industry and larger business community during the SB 54 rulemaking process. Read the announcement here. View the entire list of board members here.

SB 1013 Bottle Bill

Workshops

The CRA team continues to attend all Bottle Bill related workshops. Below is a list of workshops and recaps we have exclusively provided to our members since the last monthly newsletter. All related workshop notices and materials including presentation slides have also been provided. Please reach out to sarah@calretailers.com with questions.

Beverage manufacturers and producers workshop. Read the recap here. View the presentation here.
New additions to the Beverage Recycling Program workshop. Click here to view the recap and other information related to the workshop.
Informational webinar on beverage container funding programs associated with AB 179 and SB 1013. View the presentation here.
New additions to the Bottle Bill workshop. View presentation slides here and access CRA's recap here. Important note on the presentation slides: the powerpoint provided during this workshop will be what CalRecycle adheres to until regulations are finalized and approved by OAL. CalRecycle recommended several times throughout their presentation during this workshop for companies to use the presentation as a "cheat sheet" for their operations.

Upcoming Workshops:

Thursday, December 14 from 10:00AM - 12:00PM. Topic: recent changes to the bottle bill via SB 1013 and SB 353 and how those changes will impact beverage dealers including: new beverages and container types that will be subject to CRV starting January 1, 2024; CRV labeling on beverage containers; shelf labeling and consumer education.

Processing Payment Emergency Regs

CalRecycle proposes to adopt emergency regulations to changing the reasonable financial return applied to the calculation of processing payments for the period of January 1, 2024, to December 31, 2024. The proposed emergency regulations will amend the California Code of Regulations (CCR), commencing with Section 2975, Subchapter 12, Chapter 5, Division 2 of Title 14. Learn more about the proposed emergency action including the Notice of Proposed Emergency Action here.

Notice of AB 793 Plastic Content Reporting and Compliance Permanent Regulations Final OAL Approval

The Office of Administrative Law (OAL) approved the permanent regulations to clarify, implement and make specific the requirements of AB 793. The effective date of these regulations is January 1, 2024.

View the Public Notice here and CalRecycle's website for more information about this rulemaking.

Do not hesitate to reach out to the CRA team with questions.

Energy Code Ace:

Title 20 Compliance

Retailers often miss verifying they are selling products compliant with California’s Title 20 Appliance Efficiency Standards. The California Energy Commission (CEC) estimates that these standards save Californians more than 34,000 GWh of electricity annually, resulting in a reduction of greenhouse gas emissions equivalent to 5.2 million passenger vehicles. The CEC also estimates that 105 billion gallons of water are saved annually through compliance with these standards. When companies ensure they are only selling compliant products, they are able to align corporate, social and environmental responsibility initiatives with customer values.

Energy Code Ace has no-cost tools, training and resources to help retailers comply with Title 20, including the Title 20 Basics for Retailers fact sheet. Learn more here.

CARB Updates

Advanced Clean Trucks

The CRA team attended a public workshop on the recently released preliminary draft regulation language for the proposed amendments to the Advanced Clean Trucks regulation. View the recap here. Get more information on the workshop including the draft text and presentation here.

Additionally, the U.S. Chamber of Commerce, American Trucking Associations, Truckload Carriers Association, National Tank Truck Carriers and Specialty Equipment Market Association filed a joint amicus brief in the U.S. Court of Appeals for the District of Columbia Circuit opposing California’s Advanced Clean Trucks (ACT) regulation. In its brief, the coalition argues that the U.S. Environmental Protection Agency’s waiver of preemption that gives California the green light to follow through with the ACT regulation is not technologically feasible and fails to address downstream emissions caused by switching to battery-electric trucks. Read more.

Non-Truck TRU Use

The CRA team attended a workshop that explored initial ideas for potential concepts to transition non-truck transport refrigeration units (TRU) – trailer TRUs, domestic shipping container TRUs, railcar TRUs and TRU generator sets, to zero-emission technology. Learn more about the workshop and get CRA's recap here.

Indoor Heat Regulation

Cal/OSHA’s Standards Board published proposed modifications to the draft indoor heat illness standard. These modifications were based on suggestions the Standards Board received during its recent 15-day comment period. We expect the Standards Board to vote on the regulations early 2024 and implement them Summer 2024.

View the updated proposed regulations here.

CDTFA Emergency Regulation Impacting Sales of Cannabis and Cannabis Products

The California Department of Tax and Fee Administration proposes to adopt emergency Regulation 3802, Gross Receipts from Sales of Cannabis and Cannabis Products. The emergency regulation clarifies the meaning of the phrase “gross receipts of any retail sale by a cannabis retailer” as provided in Revenue and Taxation Code section 34011.2. View the notice of emergency action and proposed text of the regulation here.

CPPA New Draft Regulations - Automated Decision Making Technology

The California Privacy Protection Agency (CPPA) updated their December 8th Board Meeting materials and specifically added a new draft of automated decision making technology (ADT) regulations. View the draft here.

It is anticipated by a number of interested stakeholders that the CPPA will use these new regulations to begin formal rulemaking at the upcoming Board Meeting. Learn more here.

As always, please do not hesitate to reach out to the CRA team with questions.

City of Irvine Single Use Plastics Ban Update

The CRA team has been actively involved in opposing a proposed ordinance in the City of Irvine to ban all single-use plastics including water bottles, bags, straws and mylar balloons. The CRA team met with city staff and sent around a survey to help increase the number of voices in the opposition effort.

The Irvine City Council took up the proposal Tuesday night and, after hours of debate, the Council decided to direct city staff to do the following:

Continue stakeholder and community outreach, cost impact analysis and other measures as needed to refine the ordinance as drafted.
Narrow the scope of the ban to specific categories of single use items, conduct additional stakeholder and community outreach and return with a revised ordinance(s) for City Council consideration.
Eliminate single use plastic and polystyrene items from City operations and City-sponsored events and return with a revised ordinance for City Council consideration.
Suspend development of the comprehensive ban ordinance and instead develop a communitywide education campaign to facilitate voluntary reduction in single use plastics and polystyrene items from general use.
Consider the implications SB 54 would have on this ordinance and vice versa.

Ultimately, the council pushed this item off for further consideration. CRA does expect this issue to be brought up again sometime within the next year, likely Spring of 2024. There was a lot of support in the public comments for this ordinance as written and some sympathy among Council members towards the proponents. CRA will continue to work on this issue with the business coalition and will keep members updated as conversations on this ordinance progress.

More on the Ban:

The ban would take effect next year and is similar to other cities and counties with a single use plastics ban. The ordinance was drafted after SB 54, which was signed into law in June 2022 and requires at least 65% of plastics in California to be recycled by 2032. The ban would encompass:

plastic bags of all kinds including grocery, garbage, sandwich and dry cleaning;
plastic bottles including single-use bottled water and beverage containers. This would eliminate all plastic bottles including water in gallon containers, boba cups, milk bottles and hairspray bottles;
plastic service food ware including eliminating all single-use to-go food ware items such as plastic utensils, cups, plates, bowls, clamshells, straws, stirrers, lids and plugs;
balloons including banning all mylar, latex and foil balloons; and
expanded polystyrene.

The ordinance does allow for waivers, but only if a business can prove “no product equivalent in function to the banned product exists".

ZE Forklift Rulemaking Update

CARB announced it will will hold a public hearing on Thursday, June 27, 2024 at 9:00AM PST to consider the proposed Zero-Emission Forklift Regulation. The hearing will be held at the Mary D. Nichols Campus, Southern California Headquarters, California Air Resources Board | Haagen-Smit Auditorium located at 4001 Iowa Avenue, Riverside, California 92507. The hearing will also be available online via Zoom. This public meeting may continue at 9:00AM PST the following day, on Friday, June 28, 2024. The agenda will be posted 10 days prior to the June 27 hearing. For background on the regulation proposal, notice of public hearing and information on the written comment period and comment submittal click here. The public comment period for this regulatory action started November 10, 2023. Written comments not submitted during the hearing must be submitted on or after November 10, 2023, and received no later than December 26, 2023.

California Community Pharmacy Coalition Updates

Legislative Update

The CRA team secured a meeting with Senator Newman to discuss his SB 362 related to quotas and the Board of Pharmacy. The meeting will be held via Zoom on Tuesday, December 12, 2023 at 10:30AM PST. RSVP to ryan@calretailers.com. The zoom access information will be provided upon receipt of RSVP.

Board of Pharmacy Update: Notice of Proposed Action - Designation of Pharmacist-in-Charge

The Board of Pharmacy has released a Notice of Propose Text to amend section 1709.1 to Title 16, Division 17, Article 2 of the California Code of Regulations related to Designation of Pharmacist-in-Charge. The Board will accept written comments to the proposed text until January 2, 2024.

Written comments on the proposed text can be submitted to CRA to send in on your company's behalf or sent directly to the BoP. Information for sending comments directly to the BoP is provided below.

Contact Person: Lori Martinez

Agency Name: California State Board of Pharmacy

Address: 2720 Gateway Oaks Drive, Suite 100, Sacramento, CA 95833

Email: PharmacyRulemaking@dca.ca.gov

Fax: (916) 574-8618

Click here to view all documents associated with this proposed regulatory action and other pending regulations.

DHCS Updates: Reject Code 80 and AI ID #s 356, 360, 368

Cal Retailers continues to work with the California Department of Health Care Services regarding implementation of Medi-Cal Rx and, more recently, the re-institution of Reject Code 80. CRA has asked that the Department provide more direction and notice to pharmacies and prescribers prior to re-instating the Reject Code. View the list of Code 1 drugs and their diagnoses here and view DHCS' draft educational piece here.

DHCS also put together a chart containing updates on AI IDs# 356, 360 and 368. View the chart here.

Medi-Cal Rx Updates

Medi-Cal Rx has implemented the Deactivation of override code “55555” for specific First DataBank (FDB) Generic Sequence Number (GSN) categories and NDC-specific drugs/products. Implementation began November 17, 2023. View the alert here.

Reinstatement of Brand Medically Necessary Prior Authorization Request Requirements for DAW 1 Claims alert has been published. View the alert here.

Quantity Limit Restrictions for Common Continuous Glucose Monitoring Devices alert has been published. View the alert here.

CRA Outreach and Activities

Big City Chambers Coalition Meeting and ICSC Western Conference

CRA President and CEO Rachel Michelin spoke at the Big City Chambers Coalition (BCCC) meeting, which brought business and industry leaders together to discuss key issues affecting California’s business community. The BCCC unites and amplifies the advocacy efforts of the chambers of commerce in California’s 13 largest cities.

While at BCCC, Michelin shared Cal Retailers' work to reduce organized retail theft and discussed ways the BCCC and its memberships can be active in discussions to address an issue that is top of mind in every community in California.

CalRetailers' work on combatting retail theft and ORC was also shared at the ICSC Western Conference. ICSC is the member organization for the advancement of the Marketplaces Industry.

Food Industry Association Executives Annual Meeting

The CRA team attended this year's Food Industry Association Executives Annual Meeting and, as always, received many valuable educational tools that we are looking forward to implementing in the new year. The gathering is also an important networking opportunity for our team that includes leaders and staff from State Food Industry and Retail Associations from across the nation. Learn more here.

Additional CRA Team Outreach and Activities

CRA participated in the national Fight Retail Crime Day by sending in letters of support to California's congressional delegation for the Combatting Organized Retail Crime Act (CORCA) and urging California's representatives to coauthor CORCA.

The CRA team sponsored and attended Equality California's Happily Ever After event in support of marriage equality during the California Democratic State Convention.

CRA is a sponsor of the Silicon Valley Police Foundation's 16th annual Heroes and Helpers Holiday event, which will be held on December, 6. The special and unique event will bring law enforcement, firefighters and military from across the Bay Area to support underserved children during the holidays.

In The News