Jan Teague

President/CEO

360.943.9198, ext. 19

jteague@retailassociation.org

Mark Johnson

Vice President of Government Affairs

360.943.9198, ext. 15

mark.johnson@retailassociation.org

Tammie Hetrick

Vice President of Retail Services (RASI)

360.943.9198, ext. 13

tammie@retailassociationservices.com  

Jim Szymanski

Unions may be in trouble

By Jan Teague, President/CEO

Unions are realizing that some of their members in union-sponsored health plans may not be able to access subsidies for health care.  These plans are jointly administered by the unions and employers and impact 20 million people who work mainly for smaller businesses.  Their worry is that these employers will drop coverage entirely so their workers can access the subsidies.  For the unions the issue becomes a loss of membership. 

Why join the union if employees don't see a benefit?  The unions are putting a lot of pressure on President Obama to write the new health care rules in such a way that their problem goes away. 

According to a Wall Street Journal article last month, union-sponsored plans are behind on the health care changes.  They quote Randy Beall, who represents the Sheet Metal Workers Local 85 in Atlanta, who expects the new law's requirements will add between 50 cents to $1 per hour to the cost of a member's compensation package. This is primarily being driven by lifting the annual $250,000 cap on a claim.  If a non-union small business doesn't provide health insurance and their workers can get a federally-subsidized plan, these contractors can have lower job-related costs.  That all translates into a shift in competition for various contracts to non-union companies.  You can bet that these companies will be evaluating the impact of this on their ability to compete.

The article goes on to express concern from a number of union groups that say they supported the new health care law thinking it would lower health care costs. Now they seem to be having second thoughts.

I would guess that President Obama will fix their concern somehow. But it will be difficult to offer this favor up since it will open the gates to other employers who want to get their health care plans subsidized.  After all, the new health care law offers subsidies to households earning up to 400 percent of the poverty level or $92,200 for a family of four.  That will definitely sweep in a lot of employees who work for smaller businesses. 

In fact, I do think that here in Washington State we could see some of these same concerns with smaller unionized companies being able to compete.  

Why repealing the non-resident sales tax exemption will cost jobs and taxes

By Mark Johnson, VP Government Affairs

Repealing the non-resident sales tax exemption will unquestionably cost Washington workers jobs.  It is impossible for Washington businesses to lose millions of dollars in sales and maintain the same level of staffing.  Particularly hard hit will be border communities in Clark and Cowlitz counties where many Oregonians currently shop.  Small businesses will feel the brunt of this repeal. 

One small business owner told us that over 60 percent of her sales were to Oregon residents.  I understand the complaints that Oregon residents are getting a "free" ride by using our streets and infrastructure but not paying a sales tax.  But the reality is that their purchases employ Washington residents who pay not only sales tax but Business and Occupation taxes, unemployment insurance, property taxes and workers' compensation. 

Many particular industries that depend on Oregon residents will be disproportionately impacted.  Repealing the non-resident sales tax exemption doesn't evenly impact Washington businesses.  Interestingly, repealing this exemption will negatively impact tourism.  Folks who come to Seattle on cruise ships, such as Alaskans, purchase souvenirs and other items such as jewelry sales tax free.  If this repeal passes, they will simply buy that watch or bracelet back home, save themselves hundreds of dollars in sales tax and rob a Washington State jeweler of the sale.

A tax review commission reviewed impact from the sales tax exemption and recommended that the state continue it because it removed a disincentive for non residents to make purchases in our state. Instead of repealing the sales tax exemption for non residents, our state should look at other ideas such as a sales tax exemption for back-to-school clothing and supplies, contained in House Bill 1329 and Senate Bill 5529.

A sales tax exemption for back-to-school supplies would give millions of Washington families a break on their sales taxes when they need it the most, help generate increased sales and economic activity, employ more people and generate more state and local taxes.  It's a win-win-win proposition.  I encourage the Legislature to pass HB 1329 or SB 5529.

WRA board meets with key legislators

A host of key WRA board members met last week in Olympia with bipartisan leadership in the Senate and House to discuss the bills of prime importance to retailers.

Legislative and department leaders who addressed the board included Sen. Mark Schoesler, the Senate Republican leader; Rep. Joel Kretz, the Deputy House Minority Leader; Attorney General Bob Ferguson; Rep. Larry Springer, Deputy Majority Leader; Ted Sturdevant, Gov. Inslee's Executive Director of Legislative and Policy; and Sen. Rodney Tom, the Senate Majority Leader.

WRA board members advocated the proposed sales tax holiday for back-to-school sales, reforms to the workers' compensation system, increasing penalties for pharmacy robberies and preserving the sales tax exemption for some non residents who shop in Washington State. The board also urged lawmakers to defeat proposals for statewide mandatory sick and safe leave policies and bills that would increase costs to retailers by reclassifying independent truck drivers as store employees.

Springer estimated that legislators were faced with a $2.8 billion shortfall in state revenues heading into the next biennial budget. He did not speculate how the legislature would trim costs or raise revenues.

Lawmakers are awaiting the next state revenue forecast on March 20 before tackling the adoption of a new state budget including proposals to cut expenses and raise revenues.

Kretz raised his opposition to proposals to raise state gasoline taxes to pay for various transportation projects. Instead, he said lawmakers need to focus on the economy by adopting policies that encourage employers to do more hiring as the best way to solve the state's strained finances.

Schoesler said he hoped to preserve the non-resident sales tax exemption so that retailers in locations that border Oregon, where there are no sales taxes, would not be financially harmed from lost sales.

Halfway point of session in sight

This is Day 45 of the 2013 legislative session. In one week's time, lawmakers will have reached the halfway point of this year's session.

WRA now is tracking about 250 bills that have at least some bearing on retail operations around the state. In two days, many of the bills WRA is tracking will reach a deadline for action, if they have fiscal implications.

However, bills lawmakers deem necessary to adopt a state budget can be acted upon until the last day of session, scheduled on April 28.

Lawmakers are delaying action on adopting a budget until details of the state's revenue forecast are released on March 20. Until then, here is an update on the status of key bills of importance to WRA:

*Workers' comp reform: SB 5127 (removing age limitations on structured settlements) and SB 5128 (addressing compensation for injured workers) have passed the Senate and are in the House for further action.

*Sales tax holiday for back-to-school clothing and items: SB 5529 has moved from a Senate economic development committee to the Ways and Means committee for future action.

*Beer and wine tasting: SB 5517 has advanced from a Senate commerce committee to the Rules Committee for further action. It would expand the number of retail locations where beer and wine could be sampled before a sale.

*Pharmacy robberies: The Senate has moved SB 5149 to the Rules Committee for possible further action. The bill would allow a judge to lengthen a sentence after conviction of someone who robbed a pharmacy.

WRA on KING 5 in support of "flash rob" bill

The crimes involve robbers who organize through social media before showing up at a store to rob it all at once. Teague commented on the need for the bill during a recent television report. In case you missed it, go to KING 5 to watch the report.

Source: KING 5 TV

WRA presents members with new free webinars this year

WRA, in cooperation with the Council of State Retail Associations, will again present a series of free educational webinars this spring and early summer. For the first time this year, the Retail University webinars will be hosted twice the same day to be more convenient for participants.

The webinars are presented free as a benefit of WRA membership. Please click on the links to register.

This year's topics are:

*What retailers must know about health care reform, on March 12 - 6:30 a.m. MT / 5:30 a.m. PT (Webinar 1) or 9:30 a.m. MT / 8:30 a.m. PT (Webinar 2)

*Intro to Social and Mobile Media Marketing, on April 24 - 6:30 a.m. MT / 5:30 a.m. PT (Webinar 1) or 9:30 a.m. MT / 8:30 a.m. PT (Webinar 2)

*How small retailers can recognize and prevent shoplifting, on May 21 - 6:30 a.m. MT / 5:30 a.m. PT (Webinar 1) or 9:30 a.m. MT / 8:30 a.m. PT (Webinar 2)

*Intermediate Mobile and Social Media Marketing, on June 27 - 6:30 a.m. MT / 5:30 a.m. PT (Webinar 1) or  9:30 a.m. MT / 8:30 a.m. PT (Webinar 2).

The format will include 30-45 minute presentations with available time for questions. Participants can listen only by phone, but a computer will be required to see the complete presentation and to ask questions.

Please contact Jan Teague, WRA's President/CEO, if you have questions at 360-943-9198, Ext. 19 or a jteague@retailassociation.org.

New federal rule protects workers on service contracts

A new executive order requires successor service contractors to offer employment to predecessor employers, with limited exceptions.

The December ruling by the Federal Acquisition Regulatory Council follows a prior ruling by the Department of Labor. The effective date of the council's ruling was January 18 of this year.

To help employers understand the impact of the ruling, the legal firm Jackson Lewis has prepared a free webinar that covers issues that employers may face, including conflicts with other executive orders and changes in normal hiring practices.

Click here to watch the webinar on Executive Order 13495. Click here to read the order.

Sources: Jackson/Lewis, Federal Register

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.

Oregon promotes no sales taxes in commercial, video

Legislators who will vote on WRA-backed bills this session to waive or contain sales taxes should watch a commercial that has been airing in Washington by Travel Portland.

The 15-second commercial that recently has been on major Washington tv stations encourages visitors to shop in Oregon because it doesn't have a sales tax. Tourism promoters in Oregon know the same reality as WRA: lack of a sales tax is an incentive to stretch budgets and to shop.

WRA supports HB 1329 and SB 5529 that would allow a sales tax holiday weekend starting this year for back-to-school items. A study shows it would raise government revenues by encouraging shoppers to buy other items on which there is a sales tax.

WRA opposes HB 1273, which would repeal the sales tax exemption for out-of-state residents. This tax break has proven to be an effective incentive for Oregon residents to shop across the Columbia River if they work in Vancouver, and similarly for Spokane retailers.

Sources: You Tube, Washington Legislature

WRA shipping service redesigns, improves websites

Our national partner, PartnerShip, unveiled a new company website and an improved, separate shipping website.

The new company website includes new content, live chat, an employee directory and the ability to buy discounted shipping supplies. The new shipping site has streamlined the enrollment process.

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.

Savings from the new shipping program can, of course, help you to offset the cost of your WRA membership dues.

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."

New report explores state school funding

A report released this month by The Washington Research Council shows how Washington compares with nine other states regarding funding for schools.

The 27-page report offers context for the Legislature's debate this year to address the McCleary court decision's finding that the state is not adequately funding schools. It compares Washington's performance to California, Colorado, Connecticut, Maryland, Massachusetts, Minnesota, New Jersey, North Carolina, and Virginia.

The report examines how Washington pays for schools, compares outcomes per capita with the other states and examines the part education funding plays in the state budgeting process.

To read the complete report, click here. 

Vancouver paper prints WRA letter in support of back-to-school tax holiday

As lawmakers continue to debate a proposal to allow a sales tax holiday this year for back-to-school shopping, the Vancouver Columbian published a letter in support of the idea by Jan Teague, WRA's President/CEO.

Teague thanked Rep. Jim Moeller, D-Vancouver and Sen. Ann Rivers, R- La Center for sponsoring bills to allow a sales tax free weekend in August for select back-to-school items up to $100 for clothing and $10 for supplies.

"The incentive would help keep Washington shoppers home who typically shop in Oregon, where there is no sales tax," Teague wrote.

WRA supports the bills because a tax holiday would boost revenues to government and retailers while extending a break to parents. The increased sales also would encourage retailers to hire additional employees to help meet the increased demand from the sales tax holiday. Click here to read the entire letter.

Temporary health exchange website launched

The Washington Health Benefit Exchange this week launched a website to begin answering questions about how health care reform will work in the state. The new site will evolve into the online portal where customers will be able to compare policies available to them.

Washington is one of a dozen states that elected to establish its own health care exchange accessible through the website, www.wahbexchange.org. The site will begin enrolling customers on Oct. 1 for health insurance policies that will take effect on January 1, 2014.

The new temporary site will "re-launch" in the same location later this year.

Any questions or comments about the site or the enrollment process can be directed to info@wahbexchange.org or by calling 360-407-4100.

Taxpayers are pulling back on spending, new NRF survey finds

If you're spending a bit less than you might prefer, you're far from alone, a new National Retail Federation survey has found.

Recent changes in federal tax laws that have decreased take home pay for many Americans finds them increasingly paying down debts or putting money into savings rather than spending, the survey found.

Nearly 75 percent of those surveyed said their spending plans had taken a hit now that they have completed 2013 tax returns. Recently rising gasoline prices only are contributing to depressed spending, the survey found.

About 60 percent of those surveyed said they would complete their tax returns by the end of this month.

Nearly half of those surveyed said uncertainties about the economy, including expected Congressional spending cutbacks, have convinced them to delay major purchases such as a car or television and others were reducing trips to restaurants or comparison shopping to save on purchases. Click here to read more about the survey results.

Source: National Retail Federation

RILA releases health care act guide

The Retail Industry Leaders Association this week shared helpful documents outlining employer requirements to comply with the Affordable Care Act (ACA).

Most employer requirements become effective on January 1, 2014, for employers with calendar-year plans. The report was produced by Washington Council Ernst & Young.

The law firm also has composed an article covering the legal requirements of the law.

To read the firm's overview of ACA, click here.

Source: RILA

Cyber crime seminar in Lakewood March 20

Businesses needing to learn more about protecting computer information from hackers are invited to a March 20th seminar in Lakewood City Hall.

The event, sponsored by the Pierce County Economic Development Department and City of Lakewood Economic Development, will run from 8:30 a.m. to noon. City Hall is located in Lakewood Towne Center, 6000 Main Street S.W.

Presenters will cover topics including protecting trade secrets, securing point-of-sale systems and the new threats to identity posed by smart phone applications.

Click here to learn more and to register. 

Low-tax, pro-business states are healthiest economically, WSJ essay reports

Four of the nation's most economically healthy regions are in areas where governments work to keep taxes and regulations low, a Wall Street Journal opinion piece reported this week.

Rates of job and population growth in four low-tax, low-regulation regions far outpace those of regions with higher taxes and regulations. Author Joel Kotkin, a presidential fellow in urban futures, writes that the economically healthiest regions are the Great Plains, Intermountain West, the Gulf Coast and Southeast. Growth rates there outpace California, New York, Illinois and Massachusetts, he writes.

Kotkin writes that economic growth rates in the four healthy growth corridors challenge high-tax, high-regulation governments to reconsider their policies.

Click here to read the entire piece.

Source: Wall Street Journal

Safety tip:(one in a series)

It's workplace eye wellness month

Prevent Blindness America, a longtime volunteer eye health and safety organization, estimates that more than 2,000 people around the country hurt their eyes at work every day.

About 10 percent of the injuries require one or more missed workdays for recovery. Of all the work-related eye injuries, Prevent Blindness estimates that as many as 20 percent will cause temporary or permanent loss of vision.

To raise awareness, Maria Justin, WRA's safety advisor, reminds members to pay attention to the potential threats of eye injuries and the tips for better eye protection. The following examples could pose threats to eye safety:

*Flying objects such as bits of metal or glass.

*Tools

*Particles or chemicals

*Harmful radiation

*Some combination of these or other hazards.

To improve eye safety, Prevent Blindness recommends:

*Assessing a workplace for eye safety threats and acknowledging it rather than ignoring it.

*Eliminating hazards before starting work. Suggestions include installing machine guarding, work screens or other engineering controls.

*Using proper eye protection.

*Establishing procedures for eye injuries including maintaining eyewash stations that are easy to get to, especially near chemicals. Train workers in first aid and identify those with more advanced training.

*Make eye safety a requirement, not just a suggestion and put your policy in writing before displaying a copy of the policy in areas where employees gather.

To learn more about eye safety, visit the Prevent Blindness website.

WRA employs Justin to help members write up safety plans, consult on safety meeting topics and to make workplace safety visits. To make arrangements, contact Maria at 360-943-9198, Ext. 21 or at maria@retailassociationservices.com.