CRA Summer Recess Newsletter
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July 16, 2021 | CRA Summer Recess Newsletter
Message from the President
The CRA team has been VERY busy advocating on issues important to our members at the state and local level. And I am happy to report were met with some great successes!

ORGANIZED RETAIL CRIME
It was touch and go for a while whether the California Organized Retail Crime Task Force would continue to be funded, but due to the diligent work of CRA, I am happy to report the Task Force will remain operational for years to come. The CRA team worked every angle we could and engaged the Governor’s office directly on this issue. Not only did we secure funding to keep the task force operational, but we were also able to secure additional money for the Department of Justice specially for ORC. In addition, our sponsored bill, AB 331 which continues the ORC statue, passed both houses with NO OPPOSITION and is awaiting the Governor’s signature.

Advocating on ORC at the state level was just the beginning. For the past few weeks, we have been actively engaged in San Francisco and have been working to improve the retail theft situation in the city. The CRA team met with the San Francisco District Attorney this past week and next week we are meeting with the Mayor and San Francisco police chief. I am hopeful we can have a positive influence on combating this growing problem and ensure our retail employees and our customers are safe. 

GOVERNMENT MANDATED PREMIUM PAY
For the past few months, CRA has been active advocating at the local level to impact ordinances related to government mandated premium pay or “hero” pay. We have been very successful in our advocacy in ensuring these ordinances are not renewed and there is an expiration date. The CRA team has met with several city and county leaders on this issue and will continue to monitor and ensure these ordinances do not continue to spread. 

MASK MANDATE
This week Los Angeles County reinstated the indoor mask mandate, regardless of vaccination status. This in not only concerning because LA is the only county in the state with a mask mandate, but we are hopeful we will not see other counties following suit and a return to a patchwork of mask ordinances through California. So far, the Bay Area counties have indicated they will NOT mandate masks for vaccinated individuals, but as we learned during the height of COVID, things can change quickly. The CRA team is monitoring this issue very closely and will alert members if we hear any pending county health decisions regarding mandating masks.

SUMMER RECESS
The California Legislature has adjourned for their Summer Recess and will not be in the Capitol until August 16th. Once they return, we will hit the ground running for the final four weeks of the legislative session. Some big issues we will focus on include AB 701, the “warehouse bill” that could significantly impact retailers in the state, budget trailer bills, labor related legislation, environmental sustainability and any other shenanigans that seem to come up with a deadline looming. On top of all that, we have the special recall election on September 14 that could have a significant impact on the future of the state.

As always, the CRA team is here to help our members anyway we can, and we encourage you to engage in the many committees and work groups on the various issues that are important to your bottom line. Please do not hesitate to reach out if we can be helpful in any way.

 Rachel 
Legislative Recess Wrap Up
State lawmakers wrapped up policy committees and finalized a State Budget agreement before departing for Summer Recess yesterday. They will return August 16th for a final four-week push to move bills to the Governor’s Desk prior to the September 10th adjournment.  

For CRA, the run-up to the Recess finished on a high note as the Legislature approved CRA-sponsored legislation to extend the CHP’s ORC Task Force. Assembly Bill 331 (Jones-Sawyer) passed the Senate 39-0 and the Assembly 68-0 and now moves to the Governor’s Desk where we expect a prompt signature. Earlier in the week, the Governor signed SB 129 (Budget) which included $5.7 million for Task Force operations. Thanks to the work of CRA and our coalition partners this program, which would have expired on July 1, will continue until at least 2026.

For some of our priority Oppose measures, the news was not as good. AB 701 (Gonzalez) on warehouse performance quotas, passed both of its policy committee tests on party-line votes. The bill has been amended to curb some of its excesses but remains strongly opposed by retailers, agriculture, manufacturers and others in the supply chain. That bill moves on to Senate Appropriations Committee where we anticipate it will be held until August 26. CRA will be campaigning over the Recess and into the final weeks of Session to convince persuadable Senators to vote against this sweeping bill that will add substantial costs and uncertainty to warehousing and supply chains. Read the amendments here.

Also moving through the policy committee stage to Appropriations were SB 792 (Glazer) adding a complex new layer of sales-tax reporting for online retailers, and SB 62 (Durazo) which creates joint and several liability for “brand guarantors” including retailers for wage violations by garment manufacturers.  

In addition, the author of AB 654 (Reyes) appears she will attempt to move that bill off the Assembly Floor upon the Legislature’s return. AB 654 requires the Department of Public Health to report on its website the locations of any workplaces with COVID-19 outbreaks, such as store locations. In a vote of confidence for government efficiency, the bill was amended yesterday to specify that DPH must remove any location information where that location has not had a positive test in the prior 14 days.  

On the positive side, CRA-supported SB 244 (Archuleta) to reduce fire risks caused by rechargeable batteries, continues to advance on unanimous votes as does AB 332 (Committee on Toxics) to reinstate prior rules on the disposal of treated wood waste.  

For retailers impacted by the state’s Bottle Bill program, the news was mixed. The good news is that CRA-opposed SB 38 (Wieckowski) was held in policy committee. The bad news is that CRA-supported AB 1454 (Bloom), which would include some relief for retailers from take-back requirements, was also held, as the two houses and the Administration battle over whether to reform the Bottle Bill or replace it with an EPR program. While we remain hopeful, the odds of significant reform this year appear to have diminished.   

Finally, CRA is monitoring AB 1084 (Low) which requires retailers with 500+ employees in-state to establish gender neutral children’s departments for displays of toys and child care items. That legislation continues to advance, passing Senate Judiciary Committee this Tuesday on a party-line vote. AB 1084 was amended on June 21 to remove references to clothing, moving CRA to Neutral on the bill. 

Be sure to check our updated Master Bill List for further updates on CRA-tracked bills and their status. 
Legislative Calendar Update

August Deadlines
  • Aug. 16 Legislature reconvenes from Summer Recess
  • Aug. 27 Last day for fiscal committees to meet and report bills
  • Aug. 30- Sept. 10 Floor session only. No committee may meet for any purpose except Rules Committee, bills referred pursuant to A.R. 77.2, and Conference Committees
September Deadlines
  • Sept. 3 Last day to amend bills on the floor
  • Sept. 10 Last day for any bill to be passed. Interim Recess begins upon adjournment.
  • Oct. 10 Last day for Governor to sign or veto bills passed by the Legislature before Sept. 10 and in the Governor's possession on or after Sept. 10.
Regulatory Updates
Mask Mandates return to California

Los Angeles County announced face coverings will be mandated indoors regardless of vaccination status effective Saturday, July 17. Social distancing and capacity limits are also being considered.
 
CRA has reached out to other counties. For now, Bay Area counties will *not* reinstate indoor mask mandates, but San Francisco is pondering some changes.
 
The California Department of Public Health stated it supports local counties that feel stricter measures are necessary, but is not planning a statewide resumption of the face covering mandate.
 
The CRA team is monitoring the situation and will alert members as new information becomes available.
New appliance standards becoming effective in July
Provided by CRA Member Energy Code Ace

The following standards will become effective next month: 
  • Desktops, Thin Clients, Mobile Gaming Systems (Tier II). Effective 7/1/2021. California Energy Commission. Learn More.
  • Dedicated-Purpose Pool Pumps. Effective 7/19/21. U.S. Department of Energy. Learn More.
  • Replacement Dedicated-Purpose Pool Pump Motors. Effective 7/19/21. California Energy Commission. Learn More.
CARB 2022 Scoping Plan

CRA submitted comments in advance of the proposed California Air Resources Board (CARB) Scoping Plan update required by Health and Safety Code § 38561 (AB 32 Nunez, 2006). CARB will present a preliminary plan to the Board in early 2022 and complete the Scoping Plan process by late 2022. Comments included:
  • The State’s Carbon Goals Are Statewide, Not Sector-by-Sector
  • CARB Should Identify Barriers to Innovation
  • Continue Existing Incentives and Identify New Incentives For Technological Development

Read the comments here, also available on CRA's member portal.
South Coast AQMD Indirect Source Rule Litigation Update

We are roughly four weeks from the anticipated litigation filing date challenging the South Coast AQMD Indirect Source Rule.

Members can read the litigation one-pager FAQ here. The California Trucking Association is leading the challenge and looking for financial help from the broader industry. Email shimoda@caltrux.org if you are able to contribute.
Public Affairs/Political Updates
Californians for a Safe and Rapid Recovery Update

Since its formation in March, Californians for a Safe and Rapid Recovery has engaged with city council members and county supervisors, provided testimony at local government meetings, published earned media and pushed back against premium pay ordinances across the state. The coalition, spearheaded by CRA, is opposed to government-mandated premium pay that is counterproductive for workers and hurts consumers and our communities,
 
With your help and support, in four short months we defeated 13 ordinances and five ordinances either expired early, aligned with Governor Newsom’s June 15 reopening date or were prevented from renewing despite the union’s efforts to extend premium pay.  
 
Our efforts to communicate the negative impacts on communities and businesses, in addition to educating local leaders, was significant in stopping the spread of premium pay mandates. It is a true testament to the power and effectiveness of galvanizing our local efforts under a statewide banner.  
 
While it appears that the push for government-mandated premium has subsided, we will continue to remain vigilant and keep you updated on any new threats.  
 
Feel free to reach out to me directly if you would like to learn more about how the California Retailers Association is pushing back against state and local governments on issues that would negatively impact businesses, damage our economic recovery, and increase our cost of living.  
 
Thank you for your engagement on this critical issue. We look forward to partnering with you again in the future.  
Gubernatorial Recall Update

Recall election key dates:

  • TODAY, FRIDAY July 16 5pm: Candidate filing deadline
  • July 19: Randomized alphabet drawing for ballot order
  • July 21: Certified list of candidates and ballot order rotation (by county) 
  • July 31: Ballot mailing to military and overseas voters
  • August 5: First pre-election campaign finance statement
  • August 16: Ballot mailing begins to all registered voters
  • September 2: Second pre-election campaign finance statement
  • September 14: Election Day
CRA News and Activities
CRA Continues to be the "go-to" Resource for Top Tier Media Outlets on
Organized Retail Crime and Other Retail Industry Related News
The California Retailers Association led by President and CEO Rachel Michelin continues three straight weeks of being at the forefront of top national and statewide media outlets talking to reporters and producers about the growing problem of organized retail crime. 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.
NBC Nightly News with Lester Holt: After San Francisco shoplifting video goes viral, officials argue thefts aren't rampant

CRA President and CEO Rachel Michelin: "Think about these employees in these stores who are a witness to these crimes. They're affected, too." She said retailers are doing the best they can, but worry how some city leaders have taken a softer stance on arrests.
Fox Business: Uptick in shoplifting causing California businesses to close early

California Retailers Association President Rachel Michelin responds to increase in shoplifting at retail businesses. Read More.
Fox News: Coordinated crime sprees forcing retailers to close stores, limit hours

Viral video from San Francisco showed a band of thieves running out of a Neiman Marcus in Union Square carrying designer handbags before jumping into waiting getaway vehicles. The latest incident prompted California Retailers Association President Rachel Michelin to call for a statewide approach to this organized theft, arguing local leaders can no longer afford to snub law enforcement. 

"The answer is not what the mayor said last week, which was retailers just need to hire more security guards. That's not going to solve the problem. Security guards are there to observe and report. They're not there to stop crime. That's law enforcement. We have to figure out a way in San Francisco for law enforcement and local officials to work together."
ABC7 News: CA Retailer's Association president calls out DA Chesa Boudin amid SF's spike in organized crime

SAN FRANCISCO (KGO) -- The president of the California Retailers Association says the solution to San Francisco's organized theft problem lies, in part, with District Attorney Chesa Boudin, who she says has made it clear he won't prosecute suspects in these types of crimes.

Rachel Michelin: "Unfortunately this issue has been around for a while. San Francisco is now starting to see the long-term effects of the uptick in organized crime. We're starting to see real consequences, which is stores closing early, stores locking their doors and really, an environment where it seems as if there are no repercussions for these types of behavior for these criminals doing these types of thefts. And the issue isn't just a San Francisco one, it's a national issue. Though as the largest state, the numbers tend to be much higher in California.

"The answer really lies, I think partially, with the district attorney and the fact that he's made it clear he will not prosecute many of these crimes. When people hear that, they look at San Francisco and think they can commit these crimes and there will not be any consequences for their behavior. We need to roll up our sleeves and find a strategy to benefit the residents of San Francisco and businesses that are there,

"Think about the employees working in these stores, think about the customers and the impact these brazen crimes have on them. The answer is not what the mayor said last week, which was retailers just need to hire more security guards. That's not going to solve the problem. Security guards are there to observe and report. They're not there to stop crime. That's law enforcement. We have to figure out a way in San Francisco for law enforcement and local officials to work together."
KFBK 93.1FM Radio: California could soon experience a pork shortage. 

Starting January first 20-22, most of the nation’s pork supply will become illegal to sell in California. It's a direct result of Proposition 12 passed in 20-18.Rachel Michelin, President of the California Retailers Association, believes this will cut the state's pork supply in half.
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.
  • August 20
  • September 10
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.
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