August 1, 2025 | CRA Legislative Summer Recess Newsletter

Gift Cards

The CRA team continues to work on SB 22 (Laird) and getting the bill into a workable place for the retail industry. Just before Summer Recess, we had a call with members concerned with the bill and provided an update after meeting with the Governor's office. We continue to work over the break on language between the Governor's office and the author. As the bill is currently written, retailers will be opened up for significant fraud and extremely onerous compliance and employee training requirements for issuing cash back on gift cards. The bill carries significant retail theft and ORC concerns.

Self-Checkout

We remain opposed to SB 442 (Smallwood-Cuevas) and continue to work through Summer Recess to get the bill to a workable place for retailers.

Shopping Carts

The CRA team is working on setting up a meeting with Senator Dave Cortese, author of SB 753, to ensure that retailers' asks are front and center on the bill heading into the last month of session. As a reminder, this bill was last heard in Assembly Local Government committee and, despite some lively debate and questions from committee members, the bill moved out of committee. We still have significant concerns and will continue to engage with the author over the break.

ADMT and Surveillance Pricing

The CRA team is also working on opposition letters for Assembly and Senate Appropriations Committees on a number of bills including AB 1018 (Bauer-Kahan) Automated Decision-Making Systems and AB 446 (Ward) Surveillance Pricing.

As a reminder on AB 1018, this bill cleared the Senate Judiciary Committee, and the author agreed to some key amendments. Here’s what we know so far:

• Pre-use notices can be sent via automatic replies.
• The opt-out provision is being removed.
• The requirement for deployers to contract with an auditor is also being dropped.

CRA will now be submitting an opposition letter in the second house's Appropriations Committee where the bill is headed next and our team is collecting feedback on outstanding issues with the bill. The earlier feedback was incredibly helpful, but with these changes, it’s important to share any new concerns including around documentation retention periods and definitions around “substantial modification,” “disparate impact,” “disparate outcome,” “consequential decision,” “covered automated decision system,” and “automated decision system.”

And on AB 446, while the dynamic pricing provisions have been stripped from this bill, we still have significant concerns, especially since it still impacts discounts and loyalty rewards programs. The author did remove the Private Right of Action, but as it stands, businesses could still find themselves defending discounts in court. This remains a high priority oppose.

Thank you to all of our members who have provided feedback, including comments on quick turnaround deadlines, for these priority bills.

Anti-Trust

California’s antitrust landscape is undergoing a significant transformation, driven by administrative and legislative momentum. The California Law Revision Commission (CLRC) is advancing a comprehensive modernization of the state’s antitrust statutes, with proposals targeting monopolistic conduct, mergers and emerging abuses of market power, while the State Legislature is moving forward with multiple bills aimed at tightening merger oversight, deterring collusion and regulating algorithm-driven pricing behavior.

These efforts signal a shift toward more assertive, state-specific antitrust enforcement with implications for compliance, litigation and the role of California as a national leader in competition policy. One thing is abundantly clear, antitrust reform is just getting started in California. Read more HERE. 

Pharmacy

The CRA team sent out the latest amendments to CRA's pharmacy members regarding AB 1503 (Berman) the California Board of Pharmacy Sunset Review Bill. The team is collecting member feedback to prepare for Senate Appropriations Committee, which is where the bill will be heard next. Click on the link above for the latest amendments, which are now in print.

Sponsored Bills

Governor Newsom signed CRA sponsored legislation AB 1487 (Hoover), which includes cleanup language on the state's mattress stewardship program.

Legislative Deadlines:

• August 18, 2025 - Legislature Reconvenes
• September 12, 2025 - Last day to pass bills; Interim recess begins upon adjournment

Prop. 65 Updates

On May 2, 2025, the U.S. District Court for the Eastern District of California granted a request for declaratory relief and a permanent injunction by the California Chamber of Commerce, finding that California's mandated warning for acrylamide in food products violates the First Amendment and enjoining enforcement of Proposition 65 (Prop 65) warning requirements as to dietary acrylamide.

Get more information HERE.

The California Retailers Association and Norton Rose Fulbright also hosted a webinar on recent Proposition 65 actions targeting BPS in thermal paper. Experts Jeff Margulies and Lauren Shoor shared key compliance insights and answered audience questions regarding these actions. Access the recording HERE.

Local Updates

Los Angeles Businesses File Measure to Repeal Gross Receipts Tax

A group of Los Angeles business leaders filed a local ballot measure July 23 that would repeal Los Angeles’ gross receipts tax, saving taxpayers approximately $800 million per year.

The “Los Angeles Cost of Living Relief Initiative,” targeted for the June 2026 ballot, was filed by members of the Central City Association, the Los Angeles Area Chamber of Commerce, the Greater San Fernando Valley Chamber of Commerce and the Valley Industry and Commerce Association (VICA).

VICA President Stuart Waldman told the Los Angeles Times that the city’s economy has been slowed by tax increases, fee increases and new regulations, including the mandate that hotel and airport employees be paid at least $30 per hour by 2028. Read more HERE.

Referendum moves forward to overturn $30 minimum wage for LA hotel and airport workers

A referendum aimed at overturning the so-called Olympic Wage Ordinance in Los Angeles has enough signatures to move forward. A total of 140,774 unverified signatures will now be reviewed by the Los Angeles County Registrar-Recorder/County Clerk for validity. County staff will compare the signatures with registered voter records. The ordinance will remain suspended and will not take effect during the verification process. Read more HERE.

South Coast Air Quality Management District Independent Source Rule vote

On July 18, the Cities and Ports of Long Beach and Los Angeles submitted a detailed proposal for a cooperative agreement in lieu of Proposed Rule 2304. The proposal is detailed and provides real emissions reductions as importantly preserves the cities/ports’ authority over the ports without the South Coast Air Quality Management District (SCAQMD) getting a veto on port development. The link below has more information including descriptions (and links) of the agenda item, the Proposed Rule and the ports’ proposal. The cities/ports’ one pager and talking points are also provided. 

CRA testified at the SCAQMD Governing Board meeting asking that the SCAQMD Board pause the rulemaking and direct AQMD staff to negotiate with the Cities and Ports on a cooperative agreement that could be delivered to the Harbor Commissions and AQMD Board by October.

Click HERE for a copy of our testimony. Get more information about the proposed rule and public hearing CRA is participating in HERE. Additionally, read this op-ed in the OC Register jointly authored by the Executive Directors of the Ports of Los Angeles and Long Beach, Gene Seroka and Mario Cordero. The op-ed explains the importance of the SCQAMD vote and why the path forward is not an indirect source rule.

This year's Prop. 65 Conference will be held on Monday, September 8, at the beautiful Julia Morgan Ballroom in San Francisco. 

The Annual Prop. 65 Conference is a unique gathering of over 250 businesses, trade associations, attorneys and regulators who seek to learn about, discuss varied perspectives and improve California's law aimed to reduce or remove toxic substance routes of exposure. Last year’s feedback from sponsors, attendees, and speakers was overwhelmingly positive.

Register for the conference HERE. Get more information about the conference HERE.

Join the California Retailers Association and National Retail Federation October 26-28 at the Meritage Resort & Spa in Napa Valley for the 2025 Retail Law & Policy Uncorked: The California Summit, Where California Sets the Standard—Navigating Retail’s Legal, Regulatory and Policy Frontiers Nationwide.

This gathering represents CRA and NRF's 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.

View the developing program HERE. The agenda is subject to change.

Attendees will:

• Gain actionable insights on the latest environmental litigation, compliance and extended producer responsibility (EPR) laws directly impacting retailers, including Senate Bill 54, the first in the nation textile EPR (SB 707), greenwashing, PFAS and California’s climate disclosure mandates.
• Stay ahead of fast-evolving privacy and cybersecurity regulations. Hear from regulators and top policymakers while gaining practical strategies for compliance and cross-jurisdictional readiness.
• Learn how to navigate complex pricing laws, litigation risks and workforce mandates, including wage statement compliance, arbitration enforcement and new whistleblower protections, with guidance from leading legal and legislative experts.
• Discover best practices for integrating AI into retail contracts and HR, addressing algorithmic transparency, liability and California’s unique regulatory requirements for artificial intelligence in hiring and promotion.

Network with and hear directly from influential speakers shaping California’s retail legal landscape. Invited speakers include:

• The Honorable Rob Bonta, California Attorney General
• Director Zoe Heller, CalRecycle - CONFIRMED
• Executive Director Tom Kemp, California Consumer Privacy Protection Agency- CONFIRMED
• Assistant Majority Leader Diane Papan, Member of the Assembly Environmental Safety & Toxic Materials and Judiciary Committees - CONFIRMED
• Chairman Tom Umberg, Senate Judiciary Committee 
• Chairwoman Lola Smallwood-Cuevas, Senate Labor Committee
• Chairwoman Aisha Wahab, Senate Majority Leader
• Vice-Chair Roger Niello, Senate Judiciary Committee - CONFIRMED
• Vice-Chair Tony Strickland, Senate Labor Committee
• Senator Catherine Blakespear, Chairwoman, Senate Environmental Quality Committee - CONFIRMED
• Chairman Ash Kalra, Assembly Judiciary Committee
• Chairman Nick Schultz, Assembly Public Safety Committee - CONFIRMED
• Assemblywoman Maggy Krell, Member of the Assembly Business and Professions Committee - CONFIRMED
• Assemblymember Rick Zbur, Assembly Caucas Chair; Member of the Assembly Natural Resources Committee - CONFIRMED
• Assemblymember Josh Hoover, Member of the Assembly Natural Resources Committee
• Assemblywoman Catherine Stefani, Member of the Assembly Judiciary Committee
• Assemblywoman Ali Macedo, Member of the Assembly Judiciary Committee - CONFIRMED
• Tom Kemp, Executive Director, California Privacy Rights Agency (CPRA) - CONFIRMED
• Doug Kobold, Executive Director, California Product Stewardship Council (SB 707 sponsor) - CONFIRMED
• And Legal Law firms from throughout the country

BECOME A SPONSOR!

For more information visit CalRetailers.com Visit www.calretailers.com

Union Pacific Announces the Creation of America's First Transcontinental Railroad

Union Pacific and Norfolk Southern announced an agreement to create America’s first transcontinental railroad. These legendary companies will seamlessly connect over 50,000 route miles across 43 states from the East Coast to the West Coast, linking approximately 100 ports and nearly every corner of North America. This combination will transform the U.S. supply chain, unleash the industrial strength of American manufacturing and create new sources of economic growth and workforce opportunity that preserves union jobs. Learn more.