June 25, 2021 | CRA Summer Newsletter: Budget, Legislative, Regulatory and Public Affairs Updates
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Message from the President
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June has been a crazy month in California! While June brought in the full “re-opening” of the state, we saw a chaotic CalOSHA trying to come into compliance with the Governor and CDC in terms of face coverings and social distancing. We also had great wins in the Legislature as our bill focused on Organized Retail Crime advanced with zero no votes and we were able to stop bad bills that would have increased regulations on our members. In addition, we secured amendments to other bills that allowed us to remove our opposition.
In a few weeks, the Legislature will be on a month-long summer recess only to come back for four weeks of session. It will be intense, and we have a few bills we are watching, including the “warehouse bill” – AB 701 that can significantly impact distribution centers in California. I hope you will take a minute to read CRA’s strategy on defeating this legislation.
As we look to the fall, we will be announcing some exciting new programs for our members to help “tell the retail story” on issues such as Diversity and Inclusion, Environmental Sustainability, Workforce Development and many others. I believe these new programs will strengthen the retail voice in the state and help as CRA advocates for our members.
As always, the CRA team is here to assist our members anyway we can. If you have any questions, concerns or issues please do not hesitate to reach out!
Rachel
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Legislative and Political Updates
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Gubernatorial Recall Update
Secretary of State Shirley Weber announced this week that only 43 Californians withdrew their signatures from petitions to remove Governor Gavin Newsom from office. Nearly 1.72 million signatures remain, which is more than enough to trigger a recall election later this year. Newsom is now the second Governor in the state's history to face a recall election. Next steps in the recall process are listed below with the top item to be setting the official date for the election.
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Determine cost of recall: The state's Department of Finance calculates the cost of putting on the election. Then the Legislature's budget committee gets time to review it. These two steps combined could take two months — but are on course to happen more quickly. Finance officials already got a cost estimate from the counties, putting the tab at around $215 million. And legislative leaders have said they're going to put the money in the state budget — along with $35 million for the Secretary of State — so they don't need to take the time allotted for their fiscal review.
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Set date for election: The election must be on a Tuesday, 60 to 80 days from the date the Secretary of State certified the signatures. Lt. Governor Eleni Kounalakis said she would pick a date in the middle of that window. It appears likely that the election will be between mid-September and early November, and probably sooner rather than later.
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Candidates decide to run: Candidates to replace Newsom have until 59 days before the election to file the required paperwork. One requirement that is under debate: whether candidates must disclose five years of tax returns. The Secretary of State says it's required under state law, but legal experts have said the requirement does not apply to recall elections.
- Vote.
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CRA Again Featured in Top National and State Media Outlets
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The California Retailers Association lead by President and CEO Rachel Michelin is again at the forefront of top national and statewide media outlets talking to reporters and producers about the future of retail following California's reopening, Cal/OSHA and COVID-19 workforce standards, organized retail crime and more. The following includes the latest media highlights and a roundup of the recent news featuring CRA as the leading resource and expertise for California's retail industry.
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CRA Joins San Francisco County Supervisor Ahsha Safai and Assistant District Attorney Shirin Oloumi on KQED Forum Addressing a Rise in Organized Retail Crime
CRA President and CEO Rachel Michelin spoke with Katie Orr on KQED Forum responding to a recent video that went viral highlighting growing frustration over shoplifting in San Francisco.
Rachel: “Organized Retail Crime has been a problem going on for years. We have been diligently trying to find solutions to this including pending legislation to continue funding for the Organized Retail Crime Task Force. We are trying to attack the issue from all different ways. Our priority is the safety of our employees and consumers. ORC rings are recruiting juveniles, homeless to steal items and turn them around into bigger crimes like human trafficking. That is what we are trying to stop. It’s a growing problem in our stores, online marketplaces and communities and we need elected officials and law enforcement to help the retail industry fight this issue.
It’s retailers that have taken the initiative to create and fund the Organized Retail Crime Task Force and it is retailers working to ensure the task force will be included in this year’s budget. We welcome the opportunity to work with leaders in San Francisco to find solutions, protect quality of life and ensure people feel safe in that City."
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Associated Press: IN CALIFORNIA, GET A VACCINATION, RIDE A ROLLER COASTER
It's difficult to say if the state's electronic version would be helpful to employers trying to verify the vaccine status of customers and workers, said both Michelin and Robert Moutrie, a policy advocate at the California Chamber of Commerce… Even if the state's electronic version is voluntary, people may be reluctant to download another app or have privacy issues with showing the card, Michelin said.
That extends to whether it would be helpful under the state's pending workplace rules. Worksite regulators, she said, need to “clearly specify what an employer has to do in terms of keeping on file documentation for vaccine verification.” Many businesses seem inclined to allow employees to self-attest that they have been vaccinated, she said, if only so they can avoid creating a medical record by keeping copies of vaccination cards. And there can be penalties for lying — employees could potentially be fired for dishonesty, Michelin said.
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Rachel Michelin on Spark Plug Podcast
Rachel Michelin, the President of the California Retailers Association, speaks about the recovery of the retail industry in California and her representation of the state's retail interests throughout the nation from small brick and mortar, to franchises to national retailers and online merchants. Rachel is a Senior Fellow of the American Leadership Forum.
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Californians for a Safe and Rapid Recovery Update
The public affairs campaign effort to stop local premium pay mandates popping up throughout the state continues to have a lot of success. As depicted in the graph below, once the campaign started in March, the number of ordinances passing local mandates significantly decreased. To date, the campaign has recruited 54 organizations to join the coalition to stop premium pay including organizations representing businesses statewide, regionally and locally. For a complete list of coalition members visit www.jobsnotpolitics.com/coalition/
Recent Coalition wins and activities include:
● The County of Los Angeles did not agendize an extension to their premium pay mandate for discussion during their June 22 Board of Supervisors meeting. The current mandate is scheduled to expire on June 26. Their next scheduled meeting is July 13.
● The City of Burbank received a letter from the California Retailers Association asking them to rescind their ordinance and align with the state’s June 15 reopening. We organized a meeting with Councilmember Nick Schultz to discuss the ordinance. The following individuals below attended the meeting and we prepared talking points/set up a call with them to discuss strategy prior to meeting with Councilmember Schultz:
○ Rachel Michelin, President, California Retailers Association
○ Sarah Wiltfong, Policy Manager, Los Angeles County Business Federation
○ Tracy Hernandez, President and CEO, Los Angeles County Business Federation
○ Jamie Keyser, CEO, Burbank Chamber of Commerce
○ Kathryn Cahan, Trader Joe’s
● The Cities of Berkley, South Pasadena, and Benicia all had their premium pay mandates expire over the last five days.
Local Ordinances on the Calendar
June 26th
- County of Los Angeles ordinance expires
- City of Malibu ordinance expires
June 29th
- City of Pomona ordinance expires
June 30th
- City of Santa Ana ordinance expires
July 6th
- City of Los Angeles ordinance expires
- City of Daly City ordinance expires
- City of Richmond ordinance expires
July 7th
- City of Millbrae ordinance expires
July 8th
- City of Santa Monica ordinance expires
July 11th
- City of Redwood City ordinance expires
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CRA Meets with California Highway Patrol on Status of Organized Retail Crime Task Force
CRA met with Mike Alvarez and others with CHP to discuss the state of the ORC task force, receive an update on AB 331 and discuss next steps. CRA made the ask of Asm. Jones-Sawyer’s office to get 331 language into the budget bill. CHP supports this action, which helps shore up some of the fiscal questions leaving whether or not the Admin wants to continue task force operations and what their goal of the task force is. CHP is having internal discussions with the Admin to determine what is needed under the umbrella of the task force and appreciates CRA making the public ask of Jones Sawyer, rather than CHP having to be the face of the advocacy.
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CRA Partners with Manhattan Beach Chamber of Commerce in COVID-19 Recovery Informational Forum for Retailers
Part of CRA's Growing Small Retailer and Chamber Partnerships Program
CRA partnered with the Manhattan Beach Chamber of Commerce for a time-sensitive conversation around COVID-19 recovery and its impact on retail. Discussion points included:
- Status of Governor Newsom Executive Orders.
- Los Angeles Department of Public Health alignment with the Governor and CAL/OSHA Regulations Enforcement.
- CAL/OSHA Workplace Regulations Review and Status Update.
- Retail Advocates Update.
- Supply Chain Disruption Concerns.
- CRA's Safe Shopping Campaign and How Chamber embers Can Get Involved.
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CRA Joins Press Conference on Prop. 12 and Impact on CA's Impending Pork Shortage
“The hasty implementation of Proposition 12 greatly impacts the entire food supply chain – from farmers and food processors to retailers, grocers, restaurants and consumers,” California Retailers Association President Rachel Michelin said in the press conference. “It will create food insecurity and increase food prices on small businesses and families who cannot afford it.”
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CRA Supports Next Generation of CA's Workforce and Future Leaders
CRA was a sponsor for Big Brothers Big Sisters Northern Sierra's Annual Golf Tournament Fundraiser, which raised over $100,000 for the local nonprofit agency's mentorship programs. The monies will go to benefiting at-risk youth throughout the Northern Sierra communities including El Dorado and Nevada counties, South and North Lake Tahoe areas including the surrounding communities of Truckee, Kings Beach and the Tahoe City Region. Big Brothers Big Sisters of Northern Sierra was incorporated in 1977 and is an affiliate of Big Brothers Big Sisters of America. Serving children ages 3 to 18. BBBSNS mission is to create and support one to one relationships that ignite the power and promise of youth.
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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.
- July 9
- August 20
- September 10
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The Home Depot Continues to Support COVID-19 Recovery Efforts and Veterans Facing Homelessness
CRA member The Home Depot continues to support COVID-19 pandemic recovery efforts around the state. CALIFORNIA FORWARD ACTION FUND recently highlighted The Home Depot hand sanitizer and mask distribution work with California Governor's Office of Emergency Services.
"Fast forward to spring 2021, with the pandemic still ongoing and vaccinations just beginning to get wider distribution, businesses were asking for more masks, an essential part of safely doing business. In April, Home Depot approached the state to discuss 40 million masks which were available for donation and ready to be delivered across the country."
With an additional investment of $6.4M, The Home Depot Foundation also contributed over $100 million to veterans facing homelessness as part of a larger commitment to invest $500 million in veteran causes by 2025.
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Albertsons Achieves Nation’s First Commercial 100% Zero-Emission Refrigerated Grocery Delivery with a Class 8 Truck
CRA Member Albertsons Companies recently took delivery of two Volvo VNR Electric trucks at its distribution center in Irvine, California. The VNR Electric models from Volvo Trucks North America are the first zero tailpipe emission, battery-electric Class 8 trucks to be deployed in Albertsons Cos. company-wide fleet, and will be serving Albertsons, Vons, and Pavilions stores in Southern California.
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CRA Member Feedback Requested
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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 services, maximize 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.
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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.
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Follow CRA on Facebook, Twitter, Linkedin and Instgram to stay up to date on the latest developments in statewide and local legislation and policies, regulations, relevant industry and member related news and association events.
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