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

When will Washington State have $100 billion to spend?

By Jan Teague, President/CEO

I think that the proposed $81.4 billion in state spending is getting pretty close to that $100 billion mark, don't you?  It took a decade to increase our spending by 24 percent or roughly $1.5 billion per year.  This year we expect to have $2 billion more to spend than we had last year. 

I think in another decade, we will have combined spending of over $100 billion.  I find that idea totally shocking. You can see the details for yourself by clicking on this 2013-15 budget link to a state fiscal information website.

How did we get this far?  The state budget is bolstered by Federal funds.  They make up around 25 percent of funds, according to Senator Michael Baumgartner from Spokane, who published a handy guide to the budget.  But the more revealing growth in state spending details were published a few weeks ago by the Everett Herald. 

Once you add in all the various funds for government operations, transportation, social services, higher education, public schools, special appropriations, and natural resources, the whole flow of tax dollars is over twice what the state collects in sales tax, B & O tax, and property tax. 

The budget talks are focused on spending more for education.  The Senate will be publishing its budget next week and the negotiations will start in earnest after that.  The two sides will be fighting over millions, not billions.  It's all important, but let's be real. 

Government spends a lot of our tax dollars and that isn't going to be curtailed to any significant degree. 

Flash mob robberies are a serious threat

By Mark Johnson, VP Government Affairs

Watch this video from Oregon to get an overview of a flash mob robbery.

This problem shouldn't be confused with flash mobs that involve dancers or music. Instead, these organized retail crimes are serious threats to the safety of employees, shop owners and customers. The losses these groups of 10 to 100 can cause are devastating, especially to a small store operating in one location.

The tv report showed 20 to 30 mob members. All sizes of stores around the country have been hit by this crime.

It is time the legislature took a pro-active stance toward ensuring the state has a deterrent including penalties for such criminals. This new law would be a new tool for police, prosecutors and retailers to ensure our stores are safe and welcoming for customers and employees.

The Senate passed the bill 49 to 0. I hope the House also recognizes how important this bill is and sends it to the Governor for his consideration.

Sells commits to hearing Retro bill

The bill would allow Retrospective Rating programs to schedule independent medical exams and refer injured workers for vocational services. WRA believes that under supervision from Labor & Industries, this authority would help to process claims in a more timely manner.

"The bill would help to improve efficiency," said Tammie Hetrick, WRA's VP of Retail Services. "We're hoping that the bill stays on the committee calendar."

Earlier scheduled hearings in the House were canceled. The Senate passed the bill in February.

Hetrick thanked Rep. Larry Springer, (D-Kirkland) for his work to keep debate alive on this issue. He sponsored a similar bill in the House.

Legislature nears three quarter mark

Today is Day 73 of the legislature's scheduled 105-day session though there is more talk that the budget debate will be challenging enough to require an overtime session that lasts well into May.

WRA is narrowing its focus on the bills that passed either the House or Senate and are still up for consideration in the opposite house.

Here's a run down, subject to last-minute changes, of bills still under consideration that could affect some segment of retail:

*WRA continues to advocate for SB 5112 that would save employer insurance costs by allowing Retrospective Rating programs to schedule medical examinations for injured workers. WRA is seeking a floor vote in the House after the Senate passed the bill.

*Bills to allow more beer, wine and spirits tastings in stores remain alive for approval. HB 1422  has a hearing on Friday and SB 5517 passed out of a committee this week. SB 5396 (providing limited on premises spirits sampling) has passed the Senate and moved out of a House committee.

*A bill that would target flash mob robberies organized on social media had a hearing this week in the House after passing in the Senate. WRA supports SB 5178 that would help to head off the trend spreading to Washington State.

*WRA has asked the Senate to ignore HB 1870 that would require retailers to inform customers if they levy a surcharge for credit and debit card processing. Most retailers have said they have no plans to impose such fees.

WRA co-sponsors three free webinars this year

WRA is offering members three free webinars this year in cooperation with the Council of State Retail Associations.

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

*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.

State gains retail jobs in past year

The latest state report estimates that 10,900 new retail jobs were added to the economy in the past year, a gain of about 3 percent.

The figures were contained last week in an Employment Security Department report that concluded the state had regained about 70 percent of the 205,000 jobs lost during the recession.

The state's "other retail trade" category, composed mostly of online retailers, generated the most new retail jobs, an estimated 5,500 over the one-year period. General merchandise stores generated an estimated 3,200 new jobs followed by food and beverage stores, 1,900.

All eight state retail job categories showed gains in the past year. Overall, the state gained an estimated 65,000 jobs in the past year. Click here to read the entire state jobs report.

Source: Employment Security

WRA urges retailers to reject court settlement on swipe fees

New website speeds response for retailers

WRA President/CEO Jan Teague is asking members to reject a proposed court settlement with Visa and MasterCard regarding fees they charge retailers who do business with those creditors.

A new website launched by a coalition of business groups who agree with WRA makes it easier for retailers to opt out of the settlement. Go to http://www.merchantsobject.com to learn more and register opposition to the settlement.

Retailers should have received a 27-page notice from Visa and MasterCard regarding a lower court decision on transaction fees. The National Retail Federation, Retail Industry Leaders Association and WRA consider it a bad settlement and are urging retailers to reject the terms before a May 28, 2013 court deadline for objecting to the deal.

In exchange for minor financial relief for fees paid, retailers would waive all rights to further litigation against Visa and MasterCard.

The settlement notice includes a form Teague urged members to fill out stating that they object to the settlement. By opting out the settlement, retailers lend weight to attempts to negotiate terms more favorable to retailers.

At a minimum, WRA is asking that retailers submit a letter of objection that will help when the appeal is heard on the terms of the settlement this fall. The letter of objection can be submitted and will not change a retailer's settlement payment should a retailer want to settle now.

It must be mailed to Payment Card Interchange Fee Settlement, P.O. Box 2350, Portland, Oregon 92708-2350 and postmarked by May 28. Retailers are urged to keep a copy of the opt out letter for their records.

Lawmakers should take aim at credit price fixing, not retailers

Lawmakers should be focusing on credit card companies, not retailers, in the recent raft of bills being introduced around the country to prohibit retailers from charging new fees, writes the President of the New Jersey Retail Merchants Association.

Fees that have tripled in the past decade and eaten into retailers' profits are set by credit card companies. Various state lawmakers should be working toward reversing credit price fixing rather than introducing bills banning retailers from charging higher fees, writes John Holub in a guest column in the Newark Star-Ledger.

Please read the guest column for the entire essay. Holub reports that retailers paid $30 billion in credit swipe fees in 2011. He reports that swipe fees in the U.S. are eight times as high as those in Europe. Further, consumers often don't know the fees because they don't show up on receipts.

Holub writes that retailers, many with narrow profit margins, cannot afford to increase fees and have no plans to do so. Lawmakers should refocus their attention on the source of the problem, credit card companies and banks, Holub writes.

"By focusing only on credit card surcharges, we are stacking the deck against both merchants and consumers and, in effect, helping the banks and credit card companies maintain their stranglehold on the swipe fees," Holub wrote.

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."

NY Times supports sales tax fairness

WRA is among many business organizations supporting the bill so that traditional retailers who collect the tax will be able to compete fairly with online sellers, many of whom use a tax loophole to avoid collecting the tax.  In addition, local and state governments will collect new revenue to pay for vital services.

The Times notes that the bill would not impose new taxes, but rather, enable collection of taxes already due under state laws.

Congresswoman Suzan Delbene (D-Bainbridge Island), a sponsor of the bill in the House, plans an announcement later this week on the need for the bill.

Carrell, Freeman undergo health treatments

Sen. Mike Carrell, R-Lakewood, is expected to receive a bone marrow transplant in the coming weeks as treatment for a blood condition he is battling.

Carrell was diagnosed earlier this year with a pre-leukemia ailment. He was in the hospital receiving treatment last week.

Carrell will recuperate from his home and be called to Olympia only for crucial votes, said Mark Schoesler, the Senate Republican leader.

Rep. Roger Freeman, D-Federal Way, also disclosed this week that he has been diagnosed with colon cancer and is undergoing chemotherapy. Freeman said he was diagnosed in February but that his prognosis is good. Freeman intends to continue his work at the Capitol. 

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.

Sen. Holmquist-Newbry praised online for jobs-related bills

Sen. Janea Holmquist-Newbry, chair of the Senate Labor & Commerce Committee, won praise this week from crosscut.com., a Seattle online news site, for advancing pro-business bills this legislative session.

A profile on the site listed several bills supported by WRA that Holmquist-Newbry's committee and approved for further action by the House of Representatives.

The article mentioned workers' compensation reform bills, including the WRA-backed SB 5112, that would extend the right to Retrospective Rating programs to schedule appointments for medical examinations and vocational rehab assessments.

The article also pointed to other bills approved by the Senate Majority Coalition that would block a statewide mandatory sick and safe leave policy, simplify the business licensing process and reduce how often local sales and use taxes can change during the year.

To review the coalition's pro-business program, visit pro business bills. Visit Holmquist-Newbry to read the article.

April 4 webinar scheduled regarding health care law

WRA members are encouraged to register for an upcoming free webinar that will offer an overview of requirements related to national health care reform, the Affordable Care Act that takes effect next year.

Neil Trautwein, a national expert in health care reform for the National Retail Association, will moderate the discussion.

Regulations related to the act are being made public rapidly and with little advance warning. It's important for retailers to understand their obligations under this law to avoid possible penalties.

Click here to register for the webinar, to be held from 10 a.m. to 11:30 a.m. (West Coast time) on Thursday, April 4. The presentation is free to all NRF members and members of WRA. 

Homeland Security issues new I-9 hiring form

By May 7 of this year, employers must shift to using the U.S.Citizenship and Immigration Service's new employment eligibility verification form.

The new, longer form is available now for employers who want to get used to the new forms earlier than the deadline for switching over to the new format.

The new form is two pages instead of one and includes additional data fields, including an employee's foreign passport information (if applicable) and telephone and e-mail addresses. The immigration service also believes the instructions are clearer for employers and applicants to understand.

Visit form to print a copy of it. Visit notice to review the Federal Register announcement about the new form. 

Free disaster survival seminar in Bremerton, April 11

Kitsap County businesses are invited to a free disaster survival seminar on April 11 at the Kitsap Conference Center at Bremerton Harborside.

The seminar aims to help businesses prepare for and respond to disasters ranging from floods to earthquakes. It is presented under the auspices of the Kitsap County Department of Emergency Management. Hours are from 9 a.m. to 3 p.m.

Many unprepared businesses don't survive disasters or they lose market share if they recover. The seminar will outline steps to maintain continuity through an interruption in service.

Pre registration is requested. To register and learn more, click on survive. 

Safety tip: (one in a series)

Know the four steps for safe lifting

Lifting things safely is not just physical. It's also mental.

Labor & Industries distributes a helpful poster that outlines the four steps to proper lifting.

Learning how to lift things safely depends as much on your mental approach as your muscles. L & I suggests remembering to use a hand truck if necessary and bringing the load as close to your body as possible. The steps include sizing up the load, knowing how to lift, carrying the item safely without twisting your body and setting it down without risking injury. Click here to review the steps in more detail.

WRA employs Maria Justin as a Safety Officer. She's available to members to schedule workplace safety checks and to help with drawing up a safety plan and suggesting topics for safety meetings.

Contact Maria at 360-943-9198, Ext. 21 or at maria@retailassociationservices.com.