CRA Member Newsletter

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October 1, 2024 | CRA Newsletter: Governor Action on Legislation, Regulatory & Other Updates, CRA Annual Meeting Recap

Message from the President

The 2023-24 Legislative session has come to an end, and what an ending it was! I am extremely proud of what the CRA team accomplished for our members this legislative session. I just got off the phone with a member of the Legislature who was complimenting me on our successful session. He said, “your members should be very proud – you had more accomplishments than any other business association in the state." He was right, and I am thankful for the work of the CRA team and the partnership of our member companies.


A few of the highlights include:


Passage of an 11 bill bi-partisan retail theft package that includes a new felony for serial theft that also includes not only the person stealing, but the booster they are selling to; makes the ORC statue (490.4) and the ORC task forces through the California Highway Patrol permanent; allows county DA’s to stack retail theft charges from multiply counties; creates felony enhancements for smash and grabs, arson in stores and knowing selling of stolen goods; creates a new “retail theft restraining order"; and expands probable cause to include the use of video, among other things. This was the most significant package of retail theft bills passed by the legislature and signed by the Governor in modern California history and I am proud that CRA had an active role in making sure it happened. There is more work to be done next year with the Legislature and Administration, but CRA is well positioned to ensure the retail industry and our priorities in this policy arena are well represented.


Self-Checkout – CRA negotiated with Assembly leadership to keep this bill from moving to the Assembly floor for a final vote and, while this year was only focused on certain retailers, we knew if it passed it would quickly expand to warehouse, distribution centers and all retailers in the state. While we did work via the coalition to try and negotiate amendments, we never seemed to get close to any agreement. I, along with Ryan and at the request of Leadership, met with the author to personally try and see if we could negotiate an agreement and, while it was a very congenial conversation, we could not find common ground on outstanding issues. I was, however, able to find a few provisions in the bill that, when brought to the attention of leadership, allowed me to get it held in Rules committee. This bill will be retuning next year as we know it is a priority of labor (UFCW).


Gift Cards – This bill was a bit frustrating for us as we tried to work on a compromise with the author and for whatever reason the author (or at least his staff) did not seem to want to negotiate. This was another bill that was quietly worked behind the scenes with the Administration behind to ensure our member priorities were advocated for. I was thrilled that at the end of session, the author was encouraged to use the bill as a vehicle for another issue, which is what the author chose to do. I am not sure whether or not it will return next year, but if it does, we will certainly be ready.


Warehouse (AB 98) – The issue of warehouse and the environment has been something CRA, and the greater business community has dealt with for many years. There have been multiple attempts to legislate where warehouses can be built, truck routes, air quality, etc. This year Speaker Rivas tasked two legislators – Assemblymember Juan Carrillo and Assemblymember Eloise Reyes to work with select stakeholders to come up with a compromise bill to move this issue forward. This resulted in AB 98. While not perfect, it was a step in the right direction and while there were several groups on both side of the issue – business and environmental justice – opposed the bill, CRA joined other groups including the Cal Chamber, Cal Restaurants Assn, CA Hospitals Assn, UFCW, CA State Council of Laborers and others in support of compromise. Both authors and the Speaker acknowledge more needs to be done next year and by coming out neutral on the bill, CRA was ensuring we are at the table for further negotiations. 


Cal/OSHA Workplace Violence Regs – We were disappointed to see the proposed regulations from Cal/OSHA related to workplace in response to SB 553 go back on the negotiated deal we had cut with the Governor’s office and the author to remove our opposition from SB 553. Unfortunately, Cal/OSHA added the issues we had concerns with and negotiated out of the bill back into the draft regulations. I have already been in contact with the Governor’s office and the Director of GoBiz and am cautiously optimistic we can work to find a compromise before the final adoption at the end of 2025.


These are just a few of the highlights from this past year. Please take a moment to read more about our accomplishments in the articles below. Now our attention turns to 2025 and our priorities for the next session. We are looking forward to leaning into telling the retail story around environmental sustainability issues, specifically EPR programs; how retailers utilize artificial intelligence; and focusing on workforce development. We have several new programs and opportunities to engage in along with new educational programs and opportunities to build on the great work and reputation CRA has at the State Capitol and throughout California.


As always, if you have any questions, ideas or suggestions, please do not hesitate to reach out.



Rachel

In This Newsletter Issue:

  • Governor Action on Legislation
  • Regulatory & Related Updates
  • CA Community Pharmacy Coalition Updates
  • CRA Annual Meeting Recap
  • Other Outreach and Activities
  • Help Cal Retailers Advocate for you

Governor Action on Legislation

See below for a list of bills the Governor has signed or vetoed.


Bills Signed


AB 98 (Juan Carrillo & Reyes) Planning and zoning: logistics use: truck routes

CRA Position: Neutral


AB 347 (Ting) Household product safety: toxic substances: testing and enforcement

CRA Position: Oppose


AB 863 (Aguiar-Curry) Carpet Recycling

CRA Position: Neutral as amended


AB 1902 (Alanis) Prescription drug labels: accessibility

CRA Position: Support


AB 1976 (Haney) Occupational safety and health standards: opiod antagonists in first aid kits

CRA position: Neutral


AB 2371 (Juan Carrillo) Electrified security fences

CRA Position: Support


AB 2499 (Schiavo) Unlawful discrimination and paid sick days: victims of violence

CRA Position: Oppose 


AB 2511 (Berman) Beverage container recycling: market development payments

CRA Position: Neutral


AB 2863 (Schiavo) Automatic renewal and continuous service offers

CRA Position: Neutral as amended


AB 2885 (Bauer-Kahan) Artificial Intelligence

CRA Position: Neutral


AB 2991 (Valencia) Alcoholic beverage control: retailer payments: electronic funds transfers

CRA Position: Support as amended


SB 399 (Wahab) Employer communications: captive audience meetings

CRA Position: Oppose


SB 551 (Portantino) Beverage containers: recycling

CRA Position: Neutral


SB 707 (Newman) Responsible Textile Recovery Act of 2024

CRA Position: Neutral as amended


SB 940 (Umberg) Civil disputes

CRA Position: Neutral as amended


SB 1053 (Blakespear) Reusable grocery bags 

CRA Position: Neutral as amended


SB 1059 (Bradford) Cannabis: local taxation: gross receipts

CRA Position: Support


SB 1089 (Smallwood-Cuevas) Food and prescription access: grocery and pharmacy closures

CRA Position: Neutral as amended


SB 1103 (Menjivar) Tenancy of commercial real properties: agreements: building operating costs

CRA Position: Neutral


SB 1113 (Newman) Beverage container recycling: pilot projects: extension

CRA Position: Neutral


SB 1143 (Allen) Paint products stewardship program

CRA Position: Support as amended


SB 1280 (Laird) Waste management: propane cylinders: reusable or refillable

CRA Position: Oppose


SB 1451 (Ashby) Professions and vocations; Paxlovid extension

CRA Position: Support


Bills Vetoed


AB 1949 (Wicks) California Consumer Privacy Act of 2020: collection of personal information of a minor

CRA Position: Oppose


AB 3048 (Lowenthal) California Consumer Privacy Act of 2018: opt-out preference signal

CRA Position: Oppose


SB 26 (Umberg) Mental health professions: CARE Scholarship Program

CRA Position: Neutral


SB 1022 (Skinner) Enforcement of civil rights

CRA Position: Oppose


SB 1066 (Blakespear) Hazardous waste: marine flares: manufacturer responsibility

CRA Position: Support


SB 1047 (Wiener) Safe and Secure Innovation for Frontier Artificial Intelligence Models Act

CRA Position: Oppose

Regulatory & Other Related Updates

CalRecycle Updates


Request for feedback on SB 54 reuse, refill and source reduction requirements

In anticipation of the Department of Resources Recycling and Recovery's (CalRecycle) release of public comments to the draft SB 54 regulations, the SB 54 Advisory Board is formulating comments and feedback on what the Advisory Board would like to see included in the final regulations. Part of this effort includes an Advisory Board subcommittee focused on reuse, refill and source reduction, which CRA is participating in.


Click here for a recap of the first subcommittee meeting and please share with your subject matter experts. We are looking for feedback on what was discussed, especially since the majority of those providing input are environmental NGOs or local government representatives and not voices from the business community. The goal of the SB 54 regulations, to meet statute requirements, is to ship 25% less packaging into California by 2032 with incremental deadlines leading up to that total and 10% of the 25% has to come from reuse and refill.


As a reminder, CRA's President and CEO Rachel Michelin was appointed to the SB 54 Advisory Board providing a voice for the retail industry during the SB 54 rulemaking process. As such, we need the help of our members and their subject matter experts in weighing in on these draft regulations including the numerous Advisory Board meetings, where applicable.


For context with the reuse, refill and source reduction subcommittee discussion, the most recent SB 54 Advisory Board meeting included Advisory Board recommendations regarding barriers and solutions to a circular economy specifically around reuse/refill and other source reduction efforts. View highlights from the last Advisory board meeting here.


SB 54 PRO Producer Workshop Meeting Recap

Circular Action Alliance (CAA), California's first and sole Producer Responsibility Organization (PRO) for the implementation of SB 54, California's packaging Extended producer responsibility (EPR) held its 30th producer workshop, which focused on sharing more information about when the fee schedules will be published in Colorado and Oregon. CAA also shared their vision, what to expect in the CAA’s revised program plan for Oregon, insights from the Colorado program plan consultation sessions and next steps in the producer compliance journey. CAA’s new leaders including CAA’s CEO, executive directors for Oregon and Colorado and the senior vice president for producer services were also introduced. Additionally, there were a number of questions and answers about California's packaging EPR.


The CRA team covered the workshop on behalf of our members. The detailed Q&A's from these producer workshops, which are posted in the zoom chat during the meetings, are not shared, so CRA provides them in our recaps exclusive to our members. View our recap of the workshop here and access the workshop recording here.


Save the date for the next CAA Producer Working Group, which is scheduled for October 22 at 9:30A PST. Learn more and register here.


Reminder: SB 54 Notification Regarding Demonstration of Expanded Polystyrene

CalRecycle sent out a notice of an upcoming deadline regarding expanded polystyrene food-service ware and packaging regulated by the Plastic Pollution Prevention and Packaging Producer Responsibility Act, Senate Bill No. 54 (Allen, Chapter 75, Statutes of 2022) (SB 54). 


SB 54 prohibits producers of expanded polystyrene food service ware from selling, offering for sale, distributing or importing expanded polystyrene food service ware in or into the state unless the producer has demonstrated to CalRecycle that the recycling rate of all expanded polystyrene food-service ware and packaging regulated by SB 54 is not less than 25 percent on and after January 1, 2025. Additional demonstrations of recycling rates must also be met. The notification contains additional details. View the Notice here.


Reminder: Public comments on Battery-Embedded Products Regs Due Oct. 2, 2024

CalRecycle has started to draft regulatory language to implement, interpret and make specific certain provisions of SB 1215 (codified in Public Resources Code section 41516, and sections 42460 – 42486). A copy of the draft regulation text and workshop presentation slides (from a previous informal workshop CalRecycle held to introduce the regs) can be viewed here. Read CRA's recap of the workshop here, which includes questions and comments that are not provided by CalRecycle afterwards.


Public comments are due October 2, 2024. Submit comments here or send your feedback to sarah@calretailers.com or by replying to this email.


Visit the Battery-Embedded Products rulemaking webpage for more information.


Please note that under the California Public Records Act (Government Code section 7920.000 et seq.), all written and oral comments, attachments and associated contact information (e.g., your address, phone, email, etc.) become part of the public record and can be released to the public upon request. 

Local Updates


SCAQMD Seaport Indirect Source Rule

CRA sent a letter to Los Angeles Mayor Bass and Long Beach Mayor Richardson opposing the South Coast Air Quality Management District (SCAQMD) Seaport Indirect Source Rule (PORT ISR), and supporting the Mayors development of an infrastructure approach to cleaner air at the Ports of LA and LB. Read the letter here

South and East Coast Ports Strike Update


CRA President Michelin spoke with the Los Angeles Times regarding the looming South and East Coast ports strike, which started today, Tuesday, October 1. We are actively monitoring the situation and engaging with our national partners and will continue to work with our California partners in the goods movement sector.


“At the end of the day, when [a strike] carries on, it’s the consumer who pays,” said Rachel Michelin, president of the California Retailers Assn., which joined more than 200 trade groups in signing a letter to the White House urging Biden to bring the parties together to avert a potentially devastating hit to businesses and the economy."


Read the full LAT article here.

Minimum Wage


The CRA team is part of an earned media effort to oppose Prop. 32, an initiative to raise the minimum wage to $18 statewide. Read an opposition op-ed placed in The San Diego Union Tribune here. The latest poll from the Center for Urban Politics & Policy at CSU Long Beach, USC and Cal Poly Pomona has voters at 43.4% yes, 40.5% no, and 16.1% still undecided on Prop. 32. Read the poll here.

Prop. 65 Webinar


Cal Retailers is partnering with the law firm of Norton Rose Fulbright to host a webinar on Friday, October 4 at 10:00AM PST for CRA members regarding Proposition 65, recent additions to the list and enforcement.


The webinar is open to all CRA members and we encourage members to include their Prop. 65 subject matter experts. The webinar will cover the following topics:

  • BPS – receipt paper and apparel issues
  • BPA – industrywide settlement for socks and status of activewear litigation
  • Chromium in leather – status of opt-in settlement
  • TiO2 in cosmetics – retailers in coordinated litigation, injunction in first amendment litigation
  • DEA in cosmetics/personal care products – new industry-wide litigation
  • Short-form warning regulation amendment status

Click here to sign up for this webinar.


Jeff Margulies will be presenting - read his biography here. He has extensive experience with the California regulatory environment and has provided similar webinars to CRA members in the past.

CalOSHA Updates


Cal Retailers Submits Comments on CalOSHA Draft Workplace Violence Prevention Plan Regulations

Following California’s Workplace Violence Prevention Plan regulation becoming effective, the California Division of Occupational Safety and Health (Cal/OSHA) published its draft Workplace Violence Prevention regulation.


The CRA team submitted comments to Cal/OSHA regarding this draft regulation. Read our comments letter here. Thank you to our members' subject matter experts who provided valuable feedback, which we included in the letter. We will keep our members updated when Cal/OSHA schedules the Workplace Advisory Committee meeting, which is expected sometime this Fall.


As a reminder, Cal Retailers worked hard last year through a series of meetings and communications with the Governor's office and Senator Cortese to reach a deal on SB 553. The deal included replacing Section 4 - the "Workplace Violence Prevention" section with language that mirrors what is the Cal/OSHA proposed regulations and removing any language pertaining to shoplifting/retail theft.

 

What remained in the legislation, which was signed into law, included the following:

  • Section 1 & 2 - which refers to TRO's, which CRA did not receive any input from members;
  • Section 3 - The Illness and Injury Prevention Program (which is part of the Cal/OSHA draft regulations). 

While not perfect language, Cal Retailers, through our extensive advocacy efforts, came a LONG WAY from where the bill started with language to prevent loss prevention professionals from engaging with potential shoplifters to labeling retail as a "High Violence Industry."


Now, Cal/OSHA is in the regulatory rulemaking phase for SB 553, which covers nearly every employer in the state. As part of the legislation, Cal/OSHA is tasked with developing Workplace Violence Prevention regulations and presenting it to the Board before December 31, 2025. Cal/OSHA recently published its initial draft regulation (Title 8 CCR 3343), which contains more specific workplace violence prevention requirements. Under SB 553, a new regulation must be adopted by December 31, 2026.

CARB Updates


Second Public Hearing to Consider Proposed Amendments to the Advanced Clean Trucks (ACT) Regulation and the Zero-Emission Powertrain Certification (ZEP Cert) Test Procedure

The California Air Resources Board (CARB) will conduct a public hearing on October 24, 2024 at 9:00am PST to consider approving for adoption the proposed amendments to the ACT regulation and the ZEP Cert test procedure. The hearing will be held at the California Environmental Protection Agency, CARB Byron Sher Auditorium located at 1001 I Street, Sacramento, CA 95814. The public agenda will be posted 10 days prior to the hearing, which will include information on how to participate.


Public Meeting: CARB, CA Transportation Commission and the CA Dept. of Housing and Community Development

Government Code section 14516 directs the Board, Commission and Department to meet at least twice per calendar year to coordinate their implementation of policies that jointly affect transportation, housing and air quality, including interagency efforts.


Joint meetings are more informal than Board or Commission meetings. Presentations will facilitate open dialogue amongst state agencies and the public.


This joint meeting, which is scheduled for November 7 at 9:00AM PST is separate from CARB’s other scheduled Board meetings in November. Additional information including how to participate and submit public comments can be found here.


One-Stop Truck Event in Redding, CA - October 17, 2024

Redding is the next stop of a multi-stop roadshow throughout California. For a list of future One-Stop Truck Events dates and locations, visit CARB One-Stop Truck CARB One-Stop Truck Events.


Join CARB, local agencies and Air Districts on October 17 from 9:00AM - 1:00PM PST (registration begins at 8:30AM PST) and get insight, education and resources on CARB’s clean truck and diesel regulations, compliance, funding and more. Event highlights will include:

  • One-on-One Compliance Assistance
  • Overview Presentations of Clean Truck Check, Advanced Clean Fleets, and the Off-Road Regulation
  • Enforcement Overview
  • Incentive Funding Opportunities

The final agenda will be available on the registration page and will be shared prior to the event.  


The event will be located at Holiday Inn - Redding, 1900 Hilltop Dr., Redding, CA 96002. Registration is required for this event. Register here. Registration Issues? Please email OneStopEvents@arb.ca.gov.


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.


Cal Fleet Advisor's Survey 

CARB is requesting feedback via a survey conducted by Cal Fleet Advisor. This survey is specifically designed for fleets operating vehicles weighing more than 8,500 lbs and aims to gather insights that will help improve the resources and services available to fleets. 


CARB will use feedback received to help shape the services and resources provided by Cal Fleet Advisor, ensuring they meet the needs of fleets across California. The survey is anonymous and any free-form responses will be summarized to protect the respondent's identity. Take the survey here.

Privacy Updates


CPPA Issues Enforcement Advisory on the Use of "Dark Patterns" to Obtain Consent from Consumers

The California Privacy Protection Agency (CPPA) announced that it issued an Enforcement Advisory providing guidance on how to avoid using prohibited "Dark Patterns" to obtain consent from consumers. Businesses subject to the CCPA routinely request consent from consumers related to their personal information and in handling consumer requests to exercise their statutory rights regarding their personal information. The CPPA's advisory is a strong signal that the time for businesses to identify and remove Dark Patterns in these processes is now—before the CPPA commences enforcement—by reviewing user interfaces to ensure the language and interface design offering consumers privacy choices is clear and symmetrical. Read more.

California Community Pharmacy Coalition Updates

Legislative Updates

An update on the Governor's actions on bills is provided above in the first article of this newsletter.


Board of Pharmacy Updates

Quality Assurance Program Regulation

The Board of Pharmacy (BoP) is proposing a regulation related to quality assurance (QA) programs. Specifically, the regulation would require QA programs to capture the approximate date of a medication error, the staff involved, any use of automation, the type of error and workload volume. It would also require thorough review and documentation to prevent future errors. The Board’s rationale for this proposal is to "ensure a more robust review of the circumstances surrounding each error and identification of possible contributing factors, including workload, to help prevent future medication errors.” The CRA team sent in a letter with comments to the BoP in response to this regulatory proposal. View the letter here and here is the notice of proposed actionregulation text, and initial statement of reasons. Click here to view all documents associated with this proposed regulatory action and other pending regulations. Thank you to the CCPC members for providing for our comments letter.


Notice of Proposed Action - Independent HIV Preexposure Prophylaxis Furnishing - Permanent

The BoP released a Notice of Proposed Action to amend Section 1747, of Article 5 of Title 16, Division 17, of the California Code of Regulations related to the Independent HIV Preexposure Prophylaxis Furnishing - Permanent. The BoP will accept comments to the proposed text through Monday, November 4, 2024.


Contact Person: Lori Martinez

Agency Name: California State Board of Pharmacy

Address: 2720 Gateway Oaks Dr., Ste 100, Sacramento, CA 95833

Email: PharmacyRulemaking@dca.ca.gov

Fax: (916) 574-8618


Any comments directly concerning the proposed text will be considered by the Board and responded to in the Final Statement of Reasons. Click here to view all documents associated with this proposed regulatory action and other pending regulations.


BoP Issues Waiver in response to Public Health Emergency Declaration

In light of Governor Gavin Newsom’s declaration of emergency in San Bernardino County and consistent with Business and Professions Code (BPC) section 4062, and in response to a request for such action, the Board president through delegated authority has issued the following waiver for BPC 4071.1(a) Remote Processing, to pharmacies located in impact areas. Read the waiver here.

CRA Annual Meeting Recap

CRA recently held our Annual Membership Meeting in California's beautiful Napa Valley. CRA's Annual Meeting is a pivotal event that brings together retail industry leaders, innovators and advocates from across the country to discuss the future of retail in California. This year's meeting included the second annual CA Retail Law Summit, which is co-hosted by CRA's national partner the National Retail Federation (NRF). The Law Summit showcased insightful presentations, engaging panel discussions and networking opportunities for the legal community that fostered collaboration among members. Get the full recap exclusive to our members here.

Other Outreach and Activities

CRA President and CEO Rachel Michelin Moderates Panel on Retail Theft at BizFed's Business and Resiliency Forum


CRA President and CEO Rachel Michelin joined business and civic leaders for BizFed Institute's Business Resiliency Forum. Michelin moderated a panel on Retail Theft, which included Chair of the Assembly Select Committee on Retail Theft Assemblymember Rick Chavez Zbur and Los Angeles City Attorney Hydee Feldstein.


The panel provided a recap of the bipartisan package of retail theft bills, which were passed by the state legislature and signed into law by the Governor. The new laws will provide new tools for prosecutors and business owners that will allow for aggregation of separate theft offenses, injunctions against repeat offenders and more effective collaboration across jurisdictions.


Assemblymember Zbur explained how advocates were able to pass the most significant legislative package of retail theft solutions in California history and said "Rachel is so successful because she's trusted. We were sometimes on the phone every day. She was honest and authentic about what could and couldn't be done."

Following the signing of the final bill in the bipartisan package of retail theft legislation, Governor Newsom issued a press release, which you can read here. Read the news mentions of the bill signing, which completed the retail theft legislative package, here and a special mention from Assemblymember Zbur here.

Calling All CRA Members:

Committees, Working Groups, List Serves and 2025 Issues Review

It's that time of year again - the end of the 2023-2024 legislative session and preparation for the 2025-2026 session. As such, we are updating CRA’s committees, working groups and listservs and collecting feedback on issues our members are concerned about and want our team to focus on in 2025. 


Those of you who have signed up for existing committees, working groups and listservs in the past, we will follow up under a separate email to confirm your participation for 2025. Participating in these groups provides an opportunity for members to stay connected to Cal Retailers advocacy efforts by receiving updates on key legislation, regulations and other actions important to the retail industry in California. We encourage your subject matter experts and others to join committees, listservs or work groups in line with their expertise. 


Please do not hesitate to share the email below with other members within your organization. 


Please respond by Monday, December 2


The following are CRA’s committees, working groups and listservs for 2025. Highlighted in RED are those options that we will have a new or renewed emphasis on in 2025 with anticipated legislation and/or regulation, meaning we are in specific need for subject matter experts' active participation next year.

  • Alcoholic Beverage
  • Cal/OSHA
  • Cannabis
  • Environmental Responsibility (including EPR; SB 54/Packaging)
  • Energy & Transportation (includes warehouse/distribution center related issues)
  • Food & Grocery
  • Healthcare
  • Homelessness
  • Labor/Wage Issues
  • Legislative Committee (*one representative per member)
  • Local Government Affairs (focus San Francisco/Los Angeles)
  • Online Marketplace
  • Pharmacy
  • Privacy/Artificial Intelligence
  • Prop. 65/Green Chemistry
  • Retail Theft/ORC
  • Supply Chain/Goods Movement
  • Tax Issues
  • Workforce Development

If you have any questions or need additional information please reach out to Ryan at ryan@calretailers.com or Sarah at sarah@calretailers.com.

California Retailers Association https://calretailers.com/
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