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

HB 1870 should be about prohibiting credit card company price fixing practices

By Jan Teague, President/CEO

A bill has surfaced in a number of states that distracts legislators from taking action against credit card monopolies that charge outrageous fees on every single credit card transaction.  Instead, these states should be looking at the price fixing practices of credit card companies.  For many retailers the fees can be more than $1.00 per transaction. 

HB 1870 says that the retailer can't pass on this charge to the customer.  That's like talking about treating the symptom, not the disease.  Let's do talk about these fees and let's take steps to curtail them where they get set.

According to our National Retail Federation, over the years 10 states representing 40 percent of all U.S. credit card transactions have prohibited passing these fees on to the customer.  My guess is that the banks and credit card companies have a lot of influence in those states.  Regardless, these states create a situation that if a national chain has stores in any of these states and has stores in other states, they must treat all states the same.  So for the most part, larger retailers can't charge the customer.  It seems to me that HB 1870 is primarily looking at the small retailer.

There are ways for the smaller retailer to charge a fee and the rules are complicated.  It sounds like some restaurants in Washington have figured out how to do it.  We don't represent restaurants, but I can tell you that general merchandise retailers have no intentions of charging. 

I do think that the fees are outrageous and that the credit card companies have a monopoly.  They continue to raise their prices and because consumers demand that retailers take these cards, retailers have to pay the charges or not have business from their highly-valued customers.  For a smaller retailer or for small ticket items, the charge can be over $1.00 per transaction meaning an item could be $4.00 and the fee another $1.00.  Each retailer applies for the "privilege of using the service" and is rated based on volume of business and size of transaction, so it's hard to say how much each smaller retailer pays. 

Retailers have gone to Congress to ask for limits on these charges and they have taken the credit card companies to court on several occasions and won.  There was a recent court case that is being appealed that may settle the legal fighting, but not really resolve the outrageous fees these credit card companies charge.  The judge said that the credit card companies would have to pay the retailers back a percentage, but they can never ever file another lawsuit no matter how much the credit card rates might be in the future. 

Even if a retailer sells his business, future owners are bound by the decision and can't complain.  These credit card companies raise rates annually.  And, it may not be a small percentage, it may be that they get a new retailer to sign up at one rate and then raise it dramatically the second year.  Few retailers like the court decision and they are appealing it.  What's happening to retailers is not good.

Part of the recent court decision is a settlement for retailers that says they can charge the customer part of the fee.  This is a questionable part of the settlement because of state laws I mentioned that prohibit the practice.  No one wants to charge the fees because they upset the customer who is a highly coveted individual. A customer can change their mind on where to shop based on something like a fee.  It's very hard to get regular customers, but it is very easy to lose them.  So, when I say retailers have no plans on charging, it is not a universal/all retailer statement.  But it's likely that few will try it. 

The legislature should hold back on taking action on HB 1870 unless it wants to consider credit card company price fixing.  As I said, focusing on smaller retailers who might want to do surcharging is like trying to treat the symptom, not the disease. Some states are taking the right action such as Vermont, where lawmakers passed a price fixing bill.  Credit card companies are not protected by national banking laws, so there is an opportunity to curtail the credit card companies from conspiring on setting these high transaction rates. 

Let the Department of Ecology do its job - defeat HB 1294

By Mark Johnson, VP Government Affairs

House Bill 1294, banning TRIS, a flame retardant chemical sometimes found in bedding and upholstery, and instituting an alternative assessment and green screen process, is the wrong approach.  Banning chemicals at the legislative level is not the proper process.  That is why we have a Department of Ecology. 

DOE already has a process for putting a chemical on its list of high concern.  TRIS should be no different than any other chemical.  If DOE carefully reviews the science available and determines that TRIS is hazardous to humans then it should add TRIS to the list.

I am tired of each session a new chemical of the year comes forward to be the target of the toxic coalition's ban efforts.  One year it's PBDE's, another year it is BPA.  Ideally this should be handled at the federal level by federal agencies so we have consistent regulations across the country, not state by state or city by city.  This is a nightmare for multi-location retailers to try and comply. 

Retailers want reasonable, simple to understand and comply with regulations and laws.  The safety of retail customers and employees is of the highest importance.  If a product is found to be hazardous by a recognized government agency in any way it is immediately removed from the shelves and not offered for sale.  This was the case when high levels of lead, a government recognized hazardous substance, were found in children's soft-sided lunch bags.

So let's stop telling the DOE how to do its job.  Vote no on HB 1294.

Session reaches halfway point

At the end of business today, the 2013 legislative session will have reached the half way mark.

A week from today, lawmakers will face a deadline for taking final action on many bills that originated either in the House or Senate. Action can be taken until the final day, April 28, on any bills deemed necessary to adopt a new state budget.

WRA has been tracking or monitoring more than 250 bills that could have some impact on retail operations in the state and nation. WRA will be focusing on how the legislature reacts to last week's state Supreme Court ruling throwing out the two-thirds majority for new taxes and scaling approval back to a simple majority.

Here's a look at the status of key bills under review by WRA:

HB 1329, SB 5529 - WRA support continues for bills that would allow a back-to-school sales tax holiday weekend in August. Unfortunately, neither bill made it past their fiscal committees.

HB 1422, SB 5517 - WRA supports these bills that would allow for beer and wine sampling at more retail locations around the state. HB 1422 is on the House calendar. SB 5517 is in the Rules Committee.

HB 1294 - WRA is opposing a flame retardant ban and alternative assessments that should be addressed on the federal level.

SB 5149 - WRA continues to support a bill that would allow judges to add an extra year of jail time for robbing a pharmacy. The Senate this week unanimously passed the bill. It now goes to the House for action.

HB 1890 - WRA continues to oppose a repeal of the non-resident sales tax exemption, which is crucial to retailers throughout the state but especially those near the border with Oregon, which does not charge sales taxes. A House Finance Committee has conducted a hearing with no further action.

Taxes for transportation are unpopular, new poll finds

A solid majority of registered voters polled last week were against paying higher gasoline taxes or higher car tab fees to make state transportation improvements.

The Stuart Elway poll found that 72 percent of 412 voters polled opposed raising the gasoline tax, already among the highest in the nation, while 62 percent were opposed to raising car tab taxes.

State House Democrats last month proposed nearly a $10 billion transportation plan to be financed through higher taxes. The Legislature could approve a tax package or send it to voters, but Republicans control and Senate and Democrats the House. It currently is uncertain what if any action the Legislature might take.

Visit the Seattle Times to read a report on the poll.

Source: Seattle Times

Get ready for health care requirements next week

It's getting late to get ready for national health care reforms scheduled to go into effect next year. Many employers who fail to offer coverage will be fined if they don't.

Every month since late last year, new regulations have been forthcoming that make new requirements of employers in the move to cover more employees. Many of the regulations are complex and will be costly. This is no time for employers to put off getting ready. Every wasted week or month will make it that much harder to adjust when the law goes into effect.

"What retailers must know about health care reform" will be the first of a series of four free webinars WRA will offer this year in cooperation with the Council of State Retail Associations. The 45-minute health care webinar will be on Tuesday, March 12 at two times, 5:30 a.m. and 8:30 a.m., Pacific time.

To register ahead of time, click on the following links: - 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)

Other free webinars later this year will cover introductory and intermediate social and mobile media marketing and preventing shoplifting:

*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).

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

Campaign launched to repeal Issaquah plastic bag ban

Organizers of a campaign to repeal Issaquah's plastic shopping bag ban began gathering signatures last weekend for a November election.

WRA supports the use of reusable bags but opposes plastic bag bans because they rob consumers of choice. WRA instead supports enhanced recycling of plastics bags to improve the environment. WRA objects to individual community bans that result in a patchwork of different regulations from community to community.

The Issaquah ban went into effect on March 1. It includes a minimum 5-cent per bag charge for requesting a paper bag from merchants. WRA also opposes fees that typically accompany plastic bag bans. Repeal organizer Craig Keller needs to gather about 2,800 signatures of registered Issaquah voters to qualify for an election to repeal the ban.

Visit saveourchoice for more background. Contact Keller at craig@saveourchoice.us.

The City of Shoreline has scheduled an April 29 meeting to consider adopting a ban on plastic bags, too. Visit Shoreline to review the city's schedule of agendas. Visit comment to submit comments about a plastic bag ban to the City Council.

Commercial energy reports due in Seattle on April 1

Owners and managers of commercial and multi-family buildings larger than 50,000 square feet in Seattle are required to make annual energy useage reports to the city.

This year's reports are due on April 1.

Click here to learn what to do to comply with the law. The city is conducting three free workshops to help owners and managers comply with the law.

Learn how to benchmark and comply before the spring rush, register for workshops:

• March 13th, 9 am to noon (learn to benchmark)
• March 20th, noon to 2 pm (update & tune-up)
• March 28th, noon to 2pm (update & tune-up)

Source: City of Seattle

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.

Health care reform will hurt the economy, essay warns

In a recent Politico opinion piece, four business leaders predicted layoffs, lower wages and a drag on the economic recovery caused by the higher costs associated with national health care reform.

The writers predicted that some business would drop coverage entirely and pay the fines called for in the new national health care law. These are the opinions of Matthew Shay, president/CEO of the National Retail Federeation; Dan Danner, president/CEO of the National Federation of Independent Business; Bruce Josten, executive vice president for government affairs at the U.S. Chamber of Commerce; and Dirk Van Dongen, president/CEO of the National Association of Wholesale-Distributors.

WRA opposed passage of the Affordable Care Act because of concerns that it would unnecessarily burden employers and hurt the economy because of rising costs.

Beginning in 2014, large employers with more than 50 employees must provide a prescribed level of care or pay fines if they don't. The added costs will result in unintended consequences for the economy, the authors wrote.

"Whatever choice the employer makes will lead to fewer jobs, lower wages and lost revenue," the authors wrote. "We can expect to see layoffs or dramatically reduced hours."

They closed by urging Congress to repeal the law. Visit Politico to read the entire essay.

Source: Politico

State's e-recycle program continues to grow

State recycling centers for TVs, computers and monitors saw nearly a 20 percent increase in volume the first two months of this year, Ecology reported.

The centers have collected 7.5 million pounds through February this year, compared to 6.28 million pounds for the same time last year.

"It is obviously very early in the year, but a 19.5 percent increase compared to the first two months of 2012 is significant," said Ecology spokesman Miles Kuntz. He attributed the growing monthly volumes to increased awareness by the public about the free program.

WRA was a supporter of the state launching the free four-year-old program that holds manufactures responsible for the safe recycling of aging computer and electronic equipment. Visit Ecology to learn more about the program including collection sites around the state.

Source: Ecology

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. 

Prepare for spring storms with webinar

The Small Business Administration has schedule a one-hour webinar next week to help companies prepare for possible spring wind and flood storms.

Bob Boyd, CEO of the company Agility Recovery, will share practical tips and best practices to reduce risks from severe spring weather conditions. These recommended steps and strategies are based on the thousands of successful business recoveries following weather disasters, including those related to flooding, tornadoes and severe storms.

Click here to register for the Tuesday, March 12 presentation that will run from 11 a.m. to noon, Pacific time.

Source: Small Business Administration

Employees can make tire stores safer

Scores of tire store employees get hurt every year, either by striking against objects or being hit by them, according to Labor & Industries.

The department's Division of Occupational Safety and Health (DOSH) estimates that too many such injuries can increase a company's insurance payments as much as 25 percent in one year.

Tire store employees typically either are struck by tires or are too close when a tire explodes. Falling boxes or power tools also cause injuries as well as parts or tools that get carelessly thrown around, according to L&I.

Horseplay in any form can cost a company unnecessarily.

L&I offers the following tips to prevent injuries in tire stores:

*Use portable step stairs rather than lifting tires high above your head to remove them or mount them on a display rack.

*Avoid stacking tires or boxes too high so that they lean and increase the danger of falling.

*Remove tools or hoses that might be lying on a floor that could cause someone to trip or fall.
*Cut out horseplay and carelessness. Refrain from throwing tools or parts.

*Use personal protective devices including safety footwear, gloves, eye and hearing protection.