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Session starts with coup in Senate
By Mark Johnson, VP Government Affairs
The 2013 Legislative Session started with a coup in the Senate when minority Republicans were joined by two Democrats to form a Majority Coalition lead by Democrat Rodney Tom. Key committee chairman positions have been filled with Senator Any Hill (R) being appointed chair of the powerful Ways and Means budget committee, Senator Jane'a Holmquist Newbry (R) as chair of the Commerce and Labor Committee and Senator Mike Padden (R) as chair of the Law and Justice Committee.
We at WRA look forward to working with these and the other committee leaders. It is still unclear as to the degree of participation by the Democrats with chairmanships and co-chairmanships.
This week will be consumed by pomp and ceremony as we install our new Governor Jay Inslee (D) and say goodbye to our outgoing Governor Chris Gregoire (D). I had the chance to meet with Governor-Elect Inslee last Thursday and was impressed with his candor and grasp of the issues. I was particularly happy to hear that Inslee is a supporter of "Main Street Fairness or Marketplace Equity" e-fairness efforts, one of our members' top priorities on a state and national level.
Governor-Elect Inslee has made several high ranking department appointments including Joel Sacks to lead the Department of Labor and Industries, one of the agencies WRA does a considerable amount of work with. I have had the pleasure of working with Joel for several years, most recently with the Employment Security Department where I found him to be hardworking, accessible, fair, and extremely knowledgeable about the issues as they pertain to both employers and employees.
This session will be consumed by the need to adopt a two-year state budget. Already budget writers are facing a $900 million shortfall and another $1 billion to $2 billion need to start funding basic education because of a Washington State Supreme Court decision. It is going to be a tall task but I am optimistic the governor and legislature can get the job done.
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Inslee pledges job creation as top priority
Gov. Jay Inslee today said job creation would be his top priority as he became the state's 23rd governor.
In his inauguration speech, Inslee recalled the past four years of recession and that some 300,000 unemployed state residents continue to look for work.
He proposed tax credits to encourage small, entrepreneurial companies to do more hiring and identified aerospace, life science, the military, agriculture, clean energy and maritime as key industries in promoting job growth in the state.
"We must support innovators in these areas," Inslee said. "We must build a working Washington capable of sustained economic growth."
He also called on the Legislature to support improvements to the state's transportation system, including roads, trains and buses. The economy cannot grow given expected population growth without infrastructure improvements, Inslee said.
Inslee's speech followed by a day former Gov. Christine Gregoire's farewell speech after eight years in the office. She challenged the Legislature to spend more for education, as determined by the state Supreme Court and identified aerospace, high technology and life sciences as key industries that will help lead the state to economic recovery. Continued trade with China, Canada, Japan and Korea will remain important to the state economy, she said.
"Our trade economy kept us going through the hard times," Gregoire said. "Like never before, we must trade with the world."
Gregoire said she was confident the state would continue to recover from the four-year recession.
"The State of Washington is coming out of the great recession," she said. ""The state of our state is strong."
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Committee studies performance of individual retro groups
By Tammie Hetrick, VP Retail Services
The Retro Advisory Committee met this week to discuss refund/assessment results of individual retro groups. The committee's aim is to obtain a better understanding of what types of companies are driving down overall refunds.
From the data provided, it appears the committee is on track with draft rules that will require the individual retro companies to comply with similar requirements as group retros. This includes having a safety plan in place, being in business for 4 years, and an acceptable plan for cooperating with Labor & Industries claims management.
It has been difficult to get individual retro companies to take an active role in understanding retro and the increased safety awareness expected of those companies. Many companies join as an individual retro provider and don't fully understand the risk and implication of poor performance. By modifying the rules, we are hoping to see individual retro companies take a more active role in safety and gain a better understanding of how retro works to improve the performance of retro as a whole.
The committee also received an update on the Medical Provider Network that began this month. Most doctors are enrolled in the network with the exception of out-of-state doctors, military and tribal facilities and Department of Corrections providers.
Generally, workers today can seek treatment with any doctor of their choosing for the first visit, then must transfer to a provider in the network. There will be a phase-in plan to incorporate physical therapists and occupational therapist with other ancillary providers, facilities, etc into the network at a later date.
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Retail takes hit in December jobless report
Though the state's unemployment rate declined in December, the retail industry lost an estimate 4,700 jobs, according to the state's latest unemployment report.
Joe Elling, the state's chief labor economist, said December's drop in the unemployment rate, to 7.6 percent - the lowest point in four years - was due to artificial reasons.
The declining rate is due largely to a shrinking labor force, meaning some unemployed job seekers have stopped looking for work, Elling said. The unemployment rate represents the percentage of the labor force that's without a job and actively looking for work. As fewer people continue to hunt for a job, they are not counted when calculating the unemployment rate.
December's rate of 7.6 percent fell slightly from 7.8 percent in November.
The healthiest segments of the economy in December were construction; leisure and hospitality and education and health services, according to the state. Retail led the industries showing the most job losses in December.
The full report is available here.
Source: Employment Security Department
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New rules for brakes sold in the state
Any manufacturers or sellers of vehicle brakes are urged to read a Department of Ecology rule related to new requirements that went into effect the beginning of this year.
In short, brake manufacturers now must report to the state the composition of brakes they sell, particularly whether they include copper. By 2015, any brake they sell in Washington must be certified and not include copper. Retailers will have until 2025 to clear their inventory of brakes containing copper, said Ian Wesley of the Hazardous Waste and Toxics Reduction Program of the Department of Ecology.
In response to questions about how the rule works, Ecology has posted a publication that attempts to answer several questions. Visit Better Brakes Rule to learn more. Visit here for a complete list of reporting requirements to the state.
Wesley also will take questions at 360-407-6747 or at ian.wesley@ecy.wa.gov.
Source: Department of Ecology
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Law to recycle mercury-containing bulbs takes effect
A new state law effective this month requires all Washington businesses and government agencies to recycle mercury-containing light bulbs and tubes.
It now is illegal to throw such bulbs in the trash.
To help with the transition, Seattle-based light recycling company EcoLights is offering businesses a helpful FAQ on its website that explains the new law, who it affects and what it means for businesses.
For more information, you can go to the Ecolights' website, http://ecolights.com.
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NRF website sorts through health care reform requirements
A National Retail Federation website is a good resource for companies large and small working to plan and comply with expected national health care reforms.
The site explains possible penalties, definitions of employee categories and current concerns in the business community. Visit the site at www.retailmeansjobs.com/healthcare.
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NRF to host Feb. 1 webinar on health care reform
This will be a year of preparation by businesses for hundreds of new rules and mandates related to national health care reform scheduled to take effect in 2014.
To help retailers prepare, the National Retail Federation will host a Healthcare Webinar beginning at 11 a.m., West Coast time, on February 1. The event is limited to NRF members.
Neil Trautwein, NRF's Vice President, Employee Benefits Policy Counsel, will review major features of the Affordable Care Act, outline implications for retailers and answer questions.
Meanwhile, retailers can learn more about the law by visiting www.retailmeansjobs.com/healthcare. Click here to register for the webinar.
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Webcast next week on health care law compliance
The tax and advisory firm Ernst & Young will conduct a webcast at noon, West Coast time on Tuesday, January 22. regarding company compliance with the national health care law, the Affordable Care Act.
The Retail Industry Leaders Association (RILA) among others has sent a letter to President Obama asking that transition relief be provided to give employers additional time to comply with the law. The law is effective January 1, 2014 for plan years that area on a calendar basis.
To help prepare for the law, visit this Q&A on employer mandates provided by RILA.
Meanwhile, to register for the webcast, please access this link.
Source: RILA
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WRA offers discounted shipping service
As a WRA member, you could begin saving up to 27 percent on select FedEx shipping services by joining a new shipping service free of charge.
And considering new annual shipping rate increases from major carriers, it's a good time to check out WRA's agreement with PartnerShip, a national freight management company committed to reducing shipping costs particularly for small businesses. For PartnerShip's analysis of recent freight shipping rate increases, click here.
Savings from the new shipping program can, of course, help you to offset the cost of your membership dues.
The program applies both to inbound and outbound shipping, including freight, through an agreement with PartnerShip, a WRA-endorsed shipping management company.
The program is available to all WRA members with no minimum shipping requirements or obligations. Enrolled customers can save up to 27 percent on select FedEx services and at least 70 percent on less-than-truckload freight shipments arranged through PartnerShip.
"The new WRA Shipping Program makes a great addition to our menu of services designed to save our members money," said WRA President/CEO Jan Teague. "This program is clearly advantageous to all WRA members."
To sign up, go to www.PartnerShip.com/99WRA where you can review discounts or submit a free shipping analysis. You can also find answers to questions on the Website, or call 800-599-2902 or e-mail sales@PartnerShip.com. For more information, visit
http://www.retailassociationservices.com/services/discountshipping.html.
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Resolve to join WRA in the New Year
If you're not a member of WRA, there are several reasons you should consider joining in 2013.
If you are a member, perhaps you should tell a business friend who may not be a member to consider joining.
Associations such as WRA across the country do important work to help businesses succeed. Here at WRA we provide a host of valuable services, from keeping members informed about legislation to managing workers' compensation programs and working to save them money on insurance premiums. Our services don't end there, however.
We can offer free legal support and reduced shipping costs, assist in planning safety meetings and keep members up to date with regular newsletters.
The Council of State Retail Associations has produced a short video outlining the advantages of retail association memberships. We encourage you to watch it to help in your consideration of WRA membership.
Click here to watch the video and we hope to welcome you soon as a WRA member.
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National holiday sales increased 3 percent
A national holiday sales increase of 3 percent fell short of the National Retail Federation's prediction of a 4.1 percent increase.
"For over six months, we've been saying that the fiscal cliff and economic uncertainty could impact holiday sales. As the number shows, these issues had a visible impact on consumer spending this holiday season," NRF President and CEO Matthew Shay said. "We can't expect consumers to continue to carry the burden of growing our economy. Washington must put political differences aside and do what it takes to get our country growing again and Americans back to work."
Some key findings from NRF's annual report:
**Clothing sales increased 1 percent on a seasonally-adjusted basis this past holiday.
**Electronics sales were down about a half a percent.
**Sales at general merchandise stores were flat compared to a year earlier.
**Health and personal care store sales were up 1.4 percent seasonally-adjusted.
Click here to read NRF's holiday sales announcement.
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Revenue issues tax guidance on retail discounts
The Department of Revenue has issued an excise tax advisory for retailers who obtain or offer discounts on various merchandise.
The advisory took effect on January 7 of this year.
Put simply, a bona fide discount may not be subject to taxes while one Revenue considers not legitimate would be subject to taxes, said Dylan Waits, in charge of interpretations and technical advice.
Advisory #3173 can be found here on Revenue's excise tax advisories website. It pertains mainly to grocers and distributors who typically offer retailers discounts on inventory purchases.
Contact Waits at 360-534-1583 or at dylanw@dor.wa.gov to learn more.
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Safety tip:(one in a series)
Learn how to protect from carbon monoxide
A new state law that required carbon monoxide detectors in all apartments by this month might have caught the attention of residents to this colorless, odorless gas. Excessive and unknowing exposure to this gas can result in death.
The dangers it presents, though, are not limited to people's homes.
Workers can be exposed to carbon monoxide in warehouses and in fruit and seafood packing facilities where propane-powered forklifts are operated. Exposure can also occur when operating equipment with small gasoline engines, such as pressure washers, concrete cutters, water pumps, air compressors, and generators at construction sites. CO is also produced from kerosene space heaters (salamanders), natural gas cooking units, and propane-powered floor polishers. Outdoor use of any of this equipment is not usually hazardous but in buildings or enclosed spaces, carbon monoxide can quickly build up to dangerous and deadly amounts.
To educate employers and workers, the state has posted background about CO on a Labor & Industries website with numerous links to further information to ensure that companies and employees are protected and in compliance with the law. To learn more, visit the site here.
WRA employs safety advisor Maria Justin to help members with drawing up safety plans, settling on topics for safety meetings and to make workplace safety visit. Contact her at 360-943-9198, Ext. 21 or at maria@retailassociationservices.com.
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