Newsletter — January 25, 2024 | |
|
POLICY
THE LOCAL FRONT
POLITICAL NEWS
RETAIL THEFT & PUBLIC SAFETY
IN THE NEWS
TRENDS
SAFETY
| |
What we are tracking — WR Legislative Hot List
Washington Recycling and Packaging (WRAP) Act (HB 2049)/(SB 6005)
- Objective: Defines 'producer' to put manufacturers at the top of the responsibility chart and retailers at a lower position, preventing them from paying for packaging and recycling for every item on their shelves.
- Status: Facing opposition from many stakeholders, WR expressed our concerns that this program is too broad and uncertain to adopt in a short 60-day Session.
- HB 2049 Voted out of committee 1/18/2024, referred to appropriations 1/23/2024; SB 6005 had a hearing 1/23/2024.
Beverage Container Recycling (HB 2144)
- Objective: Similar to Oregon's long-time program, optional retailer take-back, and mandatory redemption kiosks in larger stores.
- Position: WR worries about kiosk requirement, Department of Ecology biased oversight, and rural infrastructure challenges.
- Status: Voted out of committee 1/18/2024; referred to finance 1/22/2024.
Artificial Intelligence Bills (SB 5838)/(HB 1934), (HB 1951)
- Objective: Senate version heard, amended, voted out of committee.; House hearing held 1/19/2024.
- Position: More information is needed before the state begins regulating. Supports retail inclusion in a task force, seeks timeline extension; high-priority concerns. Believes a national solution would be preferable.
- Status: SB 5838 in Ways and Means; HB 1934 scheduled for a vote on 1/26; no vote scheduled yet for HB 1951.
Fast Fashion Bills (SB 5965)/(HB 2068)
- Objective: Regulate the fashion industry for supply chain transparency.
- Position: WR strongly against, citing overreach and problematic supplier obligations. Better served to debate at a national level.
- Status: Both bills heard, awaiting votes.
Retail Career Grant Program (SB 5958)
- Objective: Promote micro-credentialing in retail through college grants.
- Position: Strong support, aligns with workforce initiative.
- Status: Waiting to move out of committee.
Retail Workforce Workgroup (SB 6296)
- Objective: Establish a workgroup to standardize retail credentials and degrees as recommended in a 2023 report.
- Position: Strong support, aligns with workforce initiative.
- Status: Hearing on 1/26/2024.
Gift Certificates as Unclaimed Property (HB 2095)/(SB 5988)
- Objective: Unused gift card balances remitted to State after three years.
- Position: Concerns with privacy issues, operational challenges; WR actively opposing.
- Status: Hearings held – waiting for a vote.
Consumer Protection on Gift Certificates (HB 2094)/(SB 5987)
- Objective: Increase 'cash-back' limit, assign cash value to loyalty rewards, payment flexibility.
- Position: Actively engaged, opposing, and sharing concerns in coalition.
-
Status: Hearings held – waiting for a vote.
Unemployment Insurance (UI) for Striking Workers (SB 5777)/(HB 1893)
- Objective: Remove UI disqualification based on a lockout of employees in a multi-employer bargaining unit.
- Position: WR is opposed to these bills.
- Status: SB 5777 passed to Rules for a second reading 1/17/2024; HB 1893 awaiting vote.
Organic Food Management (SB 6180)/(HB 2301)
- Objective: Reduce methane production through statewide food waste mandates.
- Position: Support intent with concerns for mandates’ feasibility.
- Status: Hearing held – awaiting move out of committee.
| |
|
Washington may become one of a few states that allow striking workers to qualify for unemployment benefits under certain conditions. SB 5777/HB 1893 would allow workers who walk off the job to qualify for unemployment benefits if employers lock them out of their place of employment. The proposal is strongly backed by labor unions across the state.
The proposal follows a year of notable walkouts across the country and in Washington State. According to the Bureau of Labor Statistics, there were more U.S. strikes involving a thousand workers or more in 2023 than in any year since 2013.
WR testified in opposition to both bills in their House and Senate hearings. WR pointed out that Washington’s unemployment insurance system provides the highest level of unemployment benefits in the nation, and those benefits should be directed toward workers who lose their jobs through no fault of their own. WR reminded the House and Senate that employers pay all the costs of UI benefits and that there are many scenarios where someone may leave their position and remain eligible for UI benefits.
However, striking workers are making an affirmative decision to voluntarily leave their jobs and, under current law, are not eligible for UI benefits.
The more concerning aspect of the proposal is to “socialize” the UI benefits for striking workers. That means that the cost of UI benefits for workers striking against an individual company would be borne by all employers in Washington State. Accordingly, all employers in the state would bear the costs of labor-management disputes regardless of their origin or company that is involved.
A similar bill passed by the California Legislature was vetoed by California Governor Gavin Newsom because of the potential cost to their unemployment insurance trust fund. WR agrees with Governor Newsom – the costs and impact to Washington’s Unemployment Insurance Trust Fund would be dramatic and inject unpredictability in this important benefit program for workers who lose their jobs through no fault of their own.
| |
|
Senate Bill 5472, introduced in the Washington State Legislature, marks a significant stride in addressing unemployment among hard-to-place job seekers, such as individuals with felony convictions or those experiencing homelessness. This incentive will add another layer of financial incentives above what the Federal Work Opportunity Tax Credit offers.
This bi-partisan bill will offer a credit against business and occupation tax or public utility taxes. The credit is offered to employees hired after October 1, 2023, at up to 10 percent of wages and benefits or a maximum $500 after the employee has been employed for three consecutive full calendar quarters.
WR supports this bill because it furthers our Retail Workforce Initiative to help employers with the challenges of hiring people of all talents and backgrounds. It offers mutual benefits for both employers and job seekers. Employers gain financially, making it more appealing to consider a broader and more diverse range of candidates. This expands their talent pool and aligns with corporate social responsibility goals. This bill offers job seekers a crucial opportunity for employment and social reintegration. Stable employment can be a transformative step, providing not just income but also a sense of purpose and community.
Moreover, the bill includes a mechanism for review and adjustment. The effectiveness of the tax credits will be evaluated by December 31, 2032, ensuring that the bill's objectives are being met and allowing for future modifications if necessary.
SB 5472 represents a thoughtful legislative effort to foster a more inclusive workforce in Washington State. By aligning economic incentives with social goals, the bill holds the promise of creating new opportunities for those often left behind in the job market, potentially serving as a model for similar initiatives elsewhere.
| |
|
WR Local & State Government Affairs Manager Crystal Leatherman has been actively working with a coalition of business groups to understand the implications of proposed legislation aimed at revising Washington's gift card laws.
Senator Trudeau and Rep. Alvarado introduced companion bills HB 2095/SB 5988 and HB 2094/SB 5987. The bills include requiring businesses to transfer unused gift card balances to the state's unclaimed property fund and would alter existing gift card practices, including cash-out limits and app payment methods. Hearings for all four bills took place on January 16, during which various business groups, national experts, and members from state chambers of commerce expressed their strong opposition. WR is closely monitoring the progress of these bills in case they move forward for an executive session.
Watch Crystal’s video update on this important topic.
| |
|
In a significant move to address the challenges and opportunities presented by Artificial Intelligence (AI), Washington's Attorney General Bob Ferguson is collaborating with lawmakers to introduce a bipartisan AI Task Force in the 2024 state Legislative session. This initiative, spearheaded by Sen. Joe Nguyen, D-White Center, and Rep. Travis Couture, R-Allyn, aims to ensure that Washington remains at the forefront of technological innovation while addressing the ethical implications of AI.
The proposed task force, as outlined in Senate Bill 5838 and House Bill 1934, will be a 42-member bipartisan group. It will include members from the Legislature, state agencies, tribes, technology experts, civil liberty advocates, consumer advocates, businesses, and other stakeholders. This diverse team will work together to explore the benefits and risks associated with AI, engaging in discussions with industry representatives, civil liberty groups, and subject matter experts. Their goal is to provide well-rounded recommendations to the Legislature.
Attorney General Ferguson emphasized the importance of embracing new technology thoughtfully, highlighting the need to balance innovation with responsible use. He stressed the significance of protecting against potential irresponsible applications and unintended consequences of AI.
Additionally, House Bill 1951, titled "AN ACT Relating to promoting ethical artificial intelligence by protecting against algorithmic discrimination," aims to address the issue of algorithmic discrimination in AI. This act seeks to regulate AI use in critical decision-making processes, including hiring, education, housing, healthcare, and criminal justice proceedings. The focus is on mitigating the inherent biases that may exist in AI programs, which could significantly impact the lives of Washington residents.
The task force is scheduled to meet at least twice a year and is expected to deliver a preliminary report to the Governor and the Legislature by December 1, 2025, with final findings and recommendations due by June 1, 2027. This initiative marks a proactive step towards ensuring that AI development and deployment in Washington are both innovative and ethically responsible.
Crystal Leatherman provides video update on this important topic.
| |
|
Greater Spokane Inc. delegation meets in Olympia to talk retail
A delegation of approximately 60 business, education, and community leaders met in Olympia this past week to advocate on behalf of the greater Spokane region with a unified agenda. This year, the delegation represented a partnership with the Greater Spokane Valley Chamber of Commerce, Downtown Spokane Partnership, and West Plains Chamber of Commerce.
WR President and CEO Renée Sunde was invited to speak to the delegation about the retail industry, further addressing one of GSI’s priorities focused on defending and improving Washington’s business climate and supporting the employers that create jobs in the Spokane region.
Sunde’s presentation focused on three primary topics, including the economic impacts of the retail industry in Washington, the continued transformation of the industry, and the top priority issues facing retail during the 2024 legislative session.
As the second largest private sector employer in Washington State, the retail industry employs approximately 400,000 people and drives $19.8 billion into the state’s economy. Retailers have been at the forefront of innovation and creativity as Washington is the headquarters for many national and globally recognized brands. Even with the industry’s broad impact, 98% of retailers are small businesses employing under 50 people.
Sunde also spoke to the industry’s workforce as current in-demand skills are evolving rapidly, making retail’s workforce tremendously dynamic. With the rapid growth of technology, today’s retail jobs go far beyond traditional front-end cashiers and brick-and-mortar operations to include warehousing, distribution, forecasting, logistics, marketing, finance, online integration, and AI programming.
Sunde wrapped up the presentation with a review of top priority issues that the WR Policy and Government Affairs team is following closely.
WR would like to thank Greater Spokane Inc. CEO Alisha Benson and Jake Mayson, Director of Public Policy, for their ongoing partnership with the team at Washington Retail Association and their dedication to the employers, economy, and communities throughout the Spokane region.
| |
|
On Tuesday, the eight members of the City Council voted to fill the seat left vacant by the resignation of Councilmember Teresa Mosqueda, who moved on to the King County Council.
From a list of 72 applicants, a majority of the Council chose Tanya Woo, a businesswoman and activist in the Chinatown community who narrowly lost to incumbent Councilmember Tammy Morales in November. Woo secured five votes (from CMs Rob Saka, Bob Kettle, Cathy Moore, Maritza Rivera, and Council President Sara Nelson), while Mari Sugiyama (CM Morales), Linh Thai (CM Hollingsworth), and Vivian Song (CM Strauss) each collected one vote. Woo was selected from a group of eight finalists.
This is a relatively short appointment because the voters will fill the seat in the 2024 general election to fill the final year of the term. Position 8 will also be on the 2025 ballot to fill a full four-year term.
Councilmember Woo is expected to run to keep the seat. If four or fewer candidates run in the 2024 election, all candidates will be on the general election ballot. The seat will also be on the primary ballot if more than four candidates file.
| |
|
In a unified act, 35 state retail associations have joined forces with 255 state and national organizations, representing a broad spectrum of the U.S. economy, to endorse HR 7024, the “Tax Relief for American Families and Workers Act.” This coalition underscores the widespread support for the bill, which aims to stimulate economic growth and job creation through key tax policy changes.
The bill, currently under review by the House Ways & Means Committee, proposes reinstating three critical tax policies: immediate expensing of domestic Research & Development (R&D) expenses, enhanced interest deductibility, and 100% accelerated depreciation. These measures are vital for maintaining the competitive edge of American businesses in the global market.
The letter to Congress, signed by a broad array of organizations, including the American Retail Federation, the American Manufacturing Association, and various state chambers of commerce, emphasizes the importance of these tax policies in fostering innovation, job creation, and economic growth. The signatories argue that these measures have historically enjoyed bipartisan support and have enabled U.S. businesses to innovate and create high-paying jobs, thereby contributing to national security and global economic leadership.
The letter also highlights the urgency of this legislation in the context of increasing global competition, particularly from countries like China, which are offering substantial incentives to their industries. The coalition argues that restoring these tax provisions is crucial for protecting small and medium-sized businesses, safeguarding family-supporting jobs, and encouraging billions of dollars in pro-growth investments.
The Tax Relief for American Families and Workers Act is seen as a pivotal step in bolstering the U.S. economy. By advocating for the restoration of these key tax policies, the coalition of state retail associations and other organizations is sending a strong message to Congress about the importance of supporting American innovation, manufacturing, and overall economic growth. The widespread support for this bill reflects a collective recognition of the need to maintain America’s competitive edge in the global economy.
| |
|
Amidst the debate over the hot topic of police pursuits, TVW steps in with a compelling new documentary that delves deep into this contentious issue. The documentary, titled "Pursuit," offers a balanced exploration of the ongoing debate surrounding police pursuit policies and focuses on the developments over the last four years.
The crux of this debate isn't a simple binary of "always pursue" versus "never pursue." Instead, it revolves around the critical question of how much discretion law enforcement officers should have in deciding when and how to engage in pursuits. As the documentary highlights, the current state law significantly restricts officers' ability to pursue, limiting it to a few categories of violent crimes. This has sparked concerns about rising crime levels due to these constraints.
"Pursuit" is not just another documentary; it's a half-hour deep dive into the high-profile restrictions imposed on police pursuit authority by state lawmakers in 2021 and the subsequent amendments in 2023. It brings to light the challenges highly trained officers and their supervisors face under the current legal framework, which many argue doesn't provide them with adequate latitude to make critical decisions in the field.
The documentary also sheds light on Initiative I-2113, a proposal aimed at striking a balance. This initiative seeks to maintain high standards for the decision to pursue while granting police more discretion than they currently possess. It's a nuanced approach to a complex issue, and "Pursuit" does an excellent job of presenting both sides of this debate.
For anyone interested in understanding the intricacies of police pursuit policies and their impact on law enforcement and public safety, this TVW documentary is a must-watch. It's an insightful, well-researched piece that contributes significantly to the ongoing conversation about police pursuit laws.
| |
From left to right: Mark Johnson, Sr. VP of Policy & Government Affairs, Kent Liu, ORC Task Force Unit Leader, Jerry Lerum, ORC Task Force Lead Investigator, Katie Thomason, ORC Task Force Assistant Attorney General, and Renée Sunde, President & CEO | |
|
WR President and CEO Renée Sunde and Senior VP of Policy and Government Affairs Mark Johnson participated in Tuesday's Organized Retail Crime Task Force meeting.
Attorney General Bob Ferguson kicked off the meeting and introduced the new task force staff – pictured above. This fifth task force meeting was the best attended, with over 130 participants in person and online.
Senior Assistant Attorney General John Hillman, Division Chief for Criminal Justice, described guidelines and parameters for the task force and shared details of the first case filing. He also announced several other cases are near filing soon.
Johnson participated in the Legislative update highlighting the small business theft deterrent grants budget proviso and several ORC/retail theft bills, including Senate Bill 5056 – increasing penalties for ORC rings that use multiple accomplices and House Bill 2390 and Senate Bill 6200 allowing seizure of cars from criminals that resist arrest or elude police. On a national level, Johnson highlighted the Combating Organized Retail Crime Act CORCA – S. 140 and HR 895 – both enjoying broad bipartisan support before Congress.
WR strongly values our partnership with the ORC Task Force, which is an integral part of the multi-pronged approach to increasing worker and public safety, combating retail theft, and thwarting ORC rings.
The next ORC Task Force meeting will likely be held in March. Contact the Task Force for more information and referrals: ORCU@ATG.WA.GOV
| |
 | |
Washington's public safety landscape, while facing significant challenges, is a complex issue that contrasts with the optimistic view of the state's overall strength. The state has seen concerning trends in retail theft, property crime, and automobile thefts, ranking
highest nationally in these categories. Additionally, 2023 marked a year with a notably high number of homicides in Seattle. These statistics highlight specific areas of concern within the broader context of the state's well-being.
In response to Washington's public safety challenges, Initiative 2113 has been introduced as a significant measure. This initiative, which aligns with the concerns of many Washington citizens, suggests reinstating vehicular pursuit options for law enforcement, a practice limited by 2021 legislation. The modification of this policy has been a subject of debate across the political spectrum, with differing views on its impact on public safety. House Republicans have shown support for the initiative, seeing it as a potential solution to current issues, while House Democrats have expressed reservations, reflecting the complexity and nuance in addressing public safety effectively.
Another critical area of focus is the state's police officer per capita ratio, where Washington ranks last nationally. To address this, proposals like HB 1380, offering recruitment and retention bonuses for officers, and HB 2202, mandating minimum staffing ratios, have been introduced. These measures aim to bolster police presence, a vital step towards improving public safety.
Additional legislative efforts include HB 1456, which seeks to modify the definition of theft to enable more proactive measures against shoplifting. HB 2358 proposes increased penalties for highway obstruction, targeting disruptions that pose risks to public safety and traffic flow. These initiatives are designed to tackle various facets of the public safety crisis.
In summary, Washington faces significant public safety challenges, highlighted by concerning crime statistics and legislative debates. Initiatives like I-2113, along with proposed bills to increase police presence and address specific criminal activities, represent a concerted effort to improve the state's public safety environment. These measures, if implemented, could mark a turning point in ensuring a safer Washington for all.
| |
|
In 2023, Costco Wholesale Corporation experienced a monumental year marked by significant growth and strategic developments. The company's annual meeting, conducted virtually and led by new CEO Ron Vachris, revealed impressive fiscal achievements and ambitious plans.
Vachris, who began his career at Costco as a forklift driver four decades ago, succeeded Craig Jelinek as CEO on January 1. Under his leadership, Costco reported remarkable sales figures and membership growth. The company sold nearly 200 million of its famous hot dog-and-soda combos, falling just short of its 200 million target but showing a substantial increase from the 156 million sold the previous year. Vachris expressed confidence in reaching the 200 million mark in the current fiscal year.
Another highlight was the sale of 137 million $4.99 rotisserie chickens, a 20 million increase from 2022. This surge in sales contributed to the strong performance of Costco's service deli. The company's membership base also saw significant growth, with 71 million paid household members, a 7.9% increase, and nearly 128 million cardholders, up 7.6%. Notably, membership renewals reached a historic high of 90.5%.
Financially, Costco collected $4.7 billion in membership fees, an 8% increase from the previous year. In part, the growth was attributed to the opening of 23 new warehouses, with plans to open 31 more in the 2024 fiscal year. As of the meeting, 11 new locations had already been launched, bringing the total to 872 warehouses globally.
Costco's net sales reached $237.7 billion, a 7% increase driven by sales at newly opened warehouses. The company is also testing a new system for improving the checkout experience, involving membership card scans at select stores. This initiative aims to streamline the process and prevent nonmembers from using borrowed cards.
Overall, Costco's 2023 fiscal year showcased robust growth, innovative strategies, and a strong commitment to enhancing customer experience and operational efficiency.
| |
|
According to a recent article by Susan Reda, VP of Education Strategy, the retail industry in 2024 is expected to experience “guarded positivity” despite the geopolitical challenges on the horizon. The article suggests that artificial intelligence’s influence will continue to grow, and consumers will demand sustainable actions from retailers. The customer experience will remain more important than ever, and retailers must adapt to changing consumer preferences.
Reda also highlights that the bullish spending retailers experienced during the holidays between Thanksgiving and Cyber Monday is undeniable, supporting consumers’ commitment to gift-giving despite inflationary pressure. More than 200 million people shopped online and in stores, according to NRF, spending an average of $321.41 on holiday-related purchases during the 5-day holiday weekend.
It’s worth noting that while AI is already being used for demand forecasting and customer sentiment analysis, it remains an outlier when it comes to making industry-wide predictions. A human touch is needed when the data set comprises global policies, cultural swings, demographic shifts, and various industries.
In 2024, the retail industry is expected to be cautiously optimistic, with retailers needing to adapt to changing consumer preferences and demands while navigating geopolitical challenges and economic headwinds.
Read the full blog post here
| |
|
The retail industry, transformed by the COVID-19 pandemic, continues to evolve with positive and innovative changes. Here are five key ways the pandemic is still influencing retail:
Hybrid Workplace Influence: The shift towards hybrid work models has significantly impacted consumer shopping habits. More people working from home means increased local and online shopping, leading to a revival in neighborhood retail. This trend represents a lasting transformation in the retail landscape, with consumers favoring stores closer to their homes.
E-Commerce Growth: The pandemic has accelerated e-commerce, a trend that shows no signs of reversing. Consumers have embraced the convenience of online shopping, prompting retailers to enhance their digital platforms. This shift towards online shopping is reshaping retail, merging the ease of digital transactions with the tangible experience of physical stores.
Advanced Inventory Management: The pandemic underscored the importance of efficient supply chain management. Retailers now use technologies like AI for better inventory optimization, ensuring more effective stock management and reducing out-of-stock scenarios. This proactive approach is paving the way for a more resilient retail future.
Persistence of BOPIS: Buy Online, Pick Up In Store (BOPIS) has become a mainstay in retail, offering a convenient blend of online ordering and physical shopping. Retailers are adapting their store formats to facilitate this service, ensuring a seamless customer experience.
Reassessment of Self-Checkout: Initially popular during the pandemic, retailers are now reevaluating self-checkout. Balancing efficiency with concerns about shrinkage and theft, the industry is seeking innovative solutions to enhance the checkout experience while maintaining security.
The pandemic has been a catalyst for significant change in the retail sector, leading to more dynamic, customer-centric, and resilient practices. These adaptations are enriching the shopping experience, providing consumers with greater convenience, choice, and flexibility.
Read more
| |
|
Do you ever wonder what the actual cost of safety is to your business? Is it limited to the cost of training or Personal Protective Equipment, like a pair of work gloves or safety glasses?
The cost of safety is never purely financial, as the human cost must always be considered. Injured workers can lose their mobility, functionality, and motivation, depending on the type of accident—all of which directly affects their lives, family, friends, and coworkers.
Imagine if an employee works with a chemical that splashes into their eyes. What if the damage isn’t temporary but changes how the employee must work for the rest of their life? It would have been better for the employee to wear a $15 pair of safety glasses to avoid the lost time, wages, pain, and life-changing loss of sight.
There is no simple answer to how much safety costs. It doesn’t compare to the losses resulting from workplace injuries. The price of prevention is relatively low when running a business. Achieving safety requires employers and employees to work together as a team.
Our safety team is available to help members improve their safety programs beyond compliance and toward quality safety practices for the whole team. Contact us at safety@waretailservices.com to learn more.
| |
WR diversity statement
WR is committed to the principles of justice, equity, diversity, and inclusion. We strive to create a safe, welcoming environment in which these principles can thrive.
We value all people regardless of race, ethnicity, gender, religion, age, identity, sexual orientation, nationality, or disability, and that is the foundation of our commitment to those we serve.
| |
|
Renée Sunde, President/CEO — 360.200.6450 — Email
Mark Johnson, Sr. VP of Policy & Government Affairs — 360.943.0667 — Email
Crystal Leatherman, State & Local GA Manager — 360.200-6453 — Email
Rose Gundersen, VP of Operations & Retail Services — 360.200.6452 — Email
Robert B. Haase, Director of Communications — 360.753.8742 — Email
| | | | |
