CRA Spring Newsletter
May 21, 2021 | CRA Spring Newsletter: Budget, Legislative, Regulatory and Public Affairs Updates
Message from the President
So much to update on in California! It has been a very busy few weeks working with the Governor’s office on re-opening, watching CalSOHA and expected new guidelines and this week both the Assembly and Senate had hearings on bills referred to the Suspense file. More on that in the body of the newsletter, but because of the hard work of the CRA team we were able to get our Assembly Bill 331 which continues the funding for the Organizations Retail Crime Taskforce to the Assembly floor and stop Senate Bill 289 on battery take back from moving forward. We still have a laundry list of bills to watch over the next few months, including AB 701 focusing on warehouses and distribution centers, but today we celebrate a few small victories!
 
June 15, 2021 is the big day in California! That is when both the mask mandate and physical distancing will no longer be in effect in California. Today Dr. Ghaly announced “Beyond the Blueprint”, which outlines what happens when the state fully re-opens. As of that date, the only restrictions will be on indoor events over 5000 and outdoor events over 10,000. I do have to caution; counties can be MORE restrictive than the state and they have made it very clear that employers must comply with CalOSHA emergency orders. CalOSHA was set to vote on May 20th on new regulations but have postponed to June 3rd. CRA is actively monitoring the situation and as soon as we see the revised regulations we will send to our members. I am anticipating more regulations around vaccine and mask wearing in the workplace.
 
Just this week, in another bit of good news – the Speaker of the Assembly and the President Pro Tem of the Senate announced that each legislator will be limited to moving 12 bills to the other house. We will find out in the next few weeks which priority bills will be moving forward and hope a few of the bills we are tracking, that we are opposed to, do not make the list. In addition, we are waiting for a decision from legislative leadership on whether they will re-open the State Capitol to the public. While we do not anticipate the Capitol opening prior to the July Summer recess, we are hopeful the Capitol will be open for the final few weeks of the session when the Legislature reconvenes on August 15th.
 
As we anticipate the legislative and congressional redistricting process in California, it was announced that California will LOSE a Congressional seat. Odds on favorite is the loss will be in Southern California. As a reminder, California’s redistricting process is done by an independent appointed body. In addition, the 2022 race for State Attorney General is already heating up. As you recall, former AG Xavier Beccera was appointed HHS Secretary in the Biden Administration, which allowed Governor Newsom to appoint his successor, former Assemblymember Rob Bonta. Per the California State Constitution, he will need to run for election in 2022. Current County District Attorney Anne Marie Schubert has announced she will run against Bonta. Schubert is known for her investigation, arrest and conviction of the Golden State Killer and has been very engaged with CRA on the issue of Organized Retail Crime. As the race heats up, CRA will be inviting both candidates to engage with CRA members who are part of the CRA Political Action Committee. Not a member of the PAC? Send me an email so we can get you engaged today!
 
This month Governor Newsom released his Budget May Revise, which kicks the California budget process into high gear. While there has been some speculation on the numbers he used and the amount of surplus he reported, it is clear California is in good financial shape. CRA, in collaboration with other business associations, is advocating the state focus on paying down the Unemployment Insurance Fund and take the burden off business. 
 
Now our focus turns to June 15th and seeing California move past the pandemic. We continue to monitor and I am sure we will encounter a few bumps in the road. As California begins the process of fulling re-opening and moving “Beyond the Blueprint”, please do not hesitate to reach out to me directly if you have any questions or need any assistance from our end.
 
Rachel 
Legislative and Political Updates
Next Steps in Gubernatorial Recall Effort

Secretary of State Shirley Weber confirmed that the recall petition has more than enough signatures to trigger an election.

The threshold for running in a recall race is relatively low compared to a regular election, which means Californians could have dozens of candidates to choose from on the ballot.

Here's what happens next:
  • Notification and withdrawl period (40 days)
  • Estimating Costs (30 days)
  • Signature certification and election date confirmation (60-80 days from certification)
  • Recall election (November)

A recall ballot has two questions. The first question will ask the voter whether or not they want to recall Gavin Newsom. The second question will ask who should succeed Newsom if he is recalled.

The election will likely be conducted mostly by all-mail ballots, per SB 29, signed into law earlier this year which will automatically send California voters a ballot in the mail for 2021 elections, similar to the way in which the state conducted the 2020 election.

In order for Newsom to hold his seat, a simple majority of voters (at least 50% plus one) must vote against recalling him. If the majority of voters choose to recall him, the candidate with the most votes from question two will finish out Newsom’s term, which runs until early 2023.

Regulatory Updates
CRA News and Activities
Californians for a Safe and Rapid Recovery Update

CRA’s President and CEO Rachel Michelin and the Family Business Association of California's Executive Director Robert Rivinius co-authored an op-ed in CalMatters, a premier statewide media outlet focused on CA politics, policies and regulations, focused on getting the need to get Californians back to work.

Michelin: “Local governments from Coachella to La to SF are pushing mandates that fail to recognize the progress we have made w/vaccinations & lowering our daily case rates. Instead, they are supporting premiumpay ordinances pushed by powerful special interests that will force store closures job losses and a higher cost of living for everyone. It is simply counterproductive and will slow our economic recovery.”
CRA Addresses San Francisco County Board of Supervisors on the County and City's Ballooning Organized Retail Crime Problem
CRA’s President and CEO Rachel Michelin spoke at a San Francisco Board of Supervisors Public Safety and Neighborhood Services Committee hearing that addressed commercial shoplifting in neighborhood small business and anchor stores. Impacted member companies Walgreens, CVS Pharmacy and Safeway also provided comments.

Michelin: “Leaders of ORC rings are funding trafficking, terrorism and other terrible things all over the world. We are working to extend funding for the ORC Task Force, funded in 2018, and now a national standard for ORC helping CHP and local law enforcement share information. ORC rings are targeting homeless and other vulnerable individuals to go into stores and steal so they can keep their hands clean from these crimes. We want to be partners with local jurisdictions to get these offenders, who have fallen prey to ORC rings, access to treatment programs and help stem theft. But we need to also stop these rings at the top."

SF Supervisor Ahsha Safai: "ORC has been out of control. People are scared to go in stores. We have to solve this.”

San Francisco Chronicle covered the hearing: 'Out of control': Organized crime drives S.F. shoplifting, closing 17 Walgreens in five years. Read the article here.
CRA Chamber and Small Business Outreach
CRA was invited to participate in a virtual panel discussion on COVID-19 recovery alongside LA County Supervisor Kathryn Barger and Mike Colonna, President & CEO of NORMS Restaurants. The "Policy on Tap" forum was hosted by the San Fernando Valley Chamber of Commerce and include the sharing of ideas surrounding what retail will look like post pandemic. The event is part of CRA's small retailer program.

Michelin: "It is very challenging right now to fill job positions. Retailers are offering well above minimum wage and supply chain, ports, logistics jobs going unfilled is starting to have major impacts on what consumers can access in stores. The second wave of the pandemic is still affecting our small businesses across CA and nationwide, which were operating with limited capacity or completely closed and now that everything is open they do not have the people to work the hours needed and they wind up not being to operate all over again. I am impressed by the resiliency of the retail and larger business community and small retailers in particular with new out of the box and innovative ideas to stay open taking shape and transforming the future of retail. The collaboration across industries developed relationships that will strengthen the business community and CA’s economic recovery into the future."
KPCC Air Talk Radio Host Larry Mantle Speaks with CRA’s President and CEO Rachel Michelin to Check In On The Retail Industry’s Recovery As SoCal Moves Into The Yellow Tier
Although retail stores have dealt with fewer drastic coronavirus-related closures than indoor restaurants, museums and other recreational businesses, the pandemic has still radically restructured the industry.

Michelin: “The supply chain has been a big issue. Our smaller retailers have had to shut their doors because of backups in our ports, logistics supply chain. This is affecting more than just CA- we are the gateway when it comes to the supply chain. We are watching the issue closely including the rise in gas prices and how that affects how quickly goods get on shelves and the cost of goods. We are focusing on recruitment for getting people to work in our ports and logistical systems and streamlining goods delivery to our stores and consumers.”
CRA Joins Spark Plug Podcast
CRA was invited to record an episode focused on the future of retail in a post pandemic world. The episode will be recorded on Tues. April 18, featuring CRA President and CEO Rachel Michelin, and will air at a future date to be announced on sparkplug.audio.

The upcoming podcast episode, sponsored by snowshowstamp.com, will focus on understanding what a retail association does in terms of policy directives and shaping the future for the 5th largest economy in the world. Retail will be at the forefront of the recovery in CA with pharmacies providing vaccinations throughout the state. The episode will also highlight organized retail crime, expectations consumers have now about retail with the increased reliance on online shopping and delivery during the pandemic, CRA’s work on state and local regulations and top priorities of dealing with congestion at ports and the ripple effect on the supply chain, retail moving into the healthcare space, online marketplace and the pivots small retailers made to survive the pandemic including new ways of doing business and implementing out of the box ideas that will likely stay into the future.

Michelin: "Retail is very good at reinventing itself".

The episode will also discuss efforts to regulate what products retailers sell and how they sell them in their stores including gender neutral legislation and efforts in local jurisdictions throughout the state to mandate premium pay.
CRA 2021 Policy Calls 

The remainder of CRA's 2021 monthly policy calls covering this year's legislative session is listed below (dates are subject to change). For CRA members' designated contacts who are not regularly receiving these policy call reminders and calendar invites, please email cra@calretailers.com to be added moving forward. Policy calls are held on Fridays at 10:00am PT.
  • June 18
  • July 9
  • August 20
  • September 10
Upcoming Policy Issues that will Impact Retail in California

As we look towards the 2021-22 California Legislative session there will be many policy and regulatory proposals that CRA will advocate on. Some of these issues include, but are not limited to:
  • Organized Retail Crime task force funding and extending the Legislative sunset
  • Packaging and Environmental Sustainability
  • Warehouse and Distribution Centers 
  • Labor issues (both in the Legislature and CalOSHA)
  • On-line Marketplace
  • Third Party Delivery services
  • Supply Chain regulations

As we continue to navigate the COVID-19 crisis, now more than ever, I hope you are finding that your CRA membership is a good investment. We are advocating to protect our members from increased costs related to sick leave, worker’s compensation and liability threats, advocating to the State Legislature and Governor, in addition to working county by county to ensure new regulations or ordinances do not negatively impact the retail industry. 

We are all in this together and the California Retailers Association is here to fight for your interests and that of the retail industry in California.
CRA Member Highlights
Recycling Today: Best Buy hits zero waste goal at reverse logistics center

Retailer’s reverse logistics center in Chino, California, achieves 99 percent landfill diversion making environment a priority.

"We have collected more than 2 billion pounds (1 million tons) of tech from customers for recycling since 2009. Our recycling program is part of our continued effort to protect the environment and support our customers throughout the life cycle of their products, making it easier for them to give their tech a second life and out of landfills.”
The Home Depot Foundation Expands Trades Training Initiatives with
Path to Pro Scholarship Program
New Program Provides $250,000 in Scholarship Funding to SkillPointe Foundation for Next Gen Tradespeople

The Home Depot Foundation is expanding its $50 million trades training commitment with the launch of the Path to Pro scholarship program to train the next generation of skilled tradespeople.

The scholarship program will grant $250,000 in financial assistance to high school seniors and graduates entering or currently enrolled in building construction trade programs.

Scholarships will be awarded by The Home Depot Foundation’s nonprofit partner, SkillPointe Foundation, and will be selected based on requirements including:
  • Candidate must be a current high school senior, high school graduate or have a GED equivalent planning to attend an accredited building construction trade college or postsecondary program in the U.S.
  • Candidate must be intending to enroll or currently enrolled in an accredited building construction trade college or postsecondary program in the U.S.
  • Candidate must be currently enrolled in a building construction trade college or postsecondary program in the U.S.

To learn more about The Home Depot Foundation’s Path to Pro scholarship program and to apply visit www.myscholarship.app/homedepotfoundation.
CRA Partner Events
The White Label World Expo - Las Vegas 2021

The ultimate destination for resellers and branding experts is finally back! The White Label World Expo will be held at the Las Vegas Convention Center on September 1 & 2, and is 100% free-to-attend! Experience the awe-inspiring knowledge of over 200 speakers from industry experts, 50+ masterclasses and 300+ exhibitors!

White label and private label experts will gather to source all of the newest products and servicesmaximize their profitability and discover new ways to generate revenue - The White Label World Expo is an unparalleled, cutting-edge event covering the ins & outs of eCommerce and retail capabilities.

All CRA members who attend the expo will be treated as VIP attendees and gain access to the VIP After PArty during night one of the event.
COVID-19 Resources and Updates
The CRA team continues to send updates to our members with the latest information and resources related to COVID-19 including city, county and statewide executive orders and guidance, status of color-coded county tier system, latest sector updates and more. This information is also compiled on CRA's COVID-19 Resources and Updates web page. To receive this proprietary information, members can send an email to cra@calretailers.com.
CRA Member Portal
CRA members get access to CRA's exclusive online member portal, which contains coalition letters, floor alerts, regulatory comments and testimony that California Retailers Association authored or signed on to during previous Legislative sessions as well as the latest updates on the 2021-2022 legislative session. The portal also contains newsletter, news alert archives and important association governance documents for your reference. If you have not yet received your login credentials and access instructions please email cra@calretailers.com. We are also available to answer any questions you may have regarding portal navigation.