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

ACTION ALERT!

Contact your legislators to defeat state tax increases

WRA members are strongly urged to contact their state legislators and ask them to defeat House Bill 2038, which would repeal several tax and investment incentives and extend other taxes scheduled to expire.

The sales tax exemption for non-residents, upon which some retailers depend for a significant portion of their annual sales, is among the targets of the bill sponsored by Rep. Reuven Carlyle, D-Seattle. Other parts of the bill objectionable to WRA include a repeal on a sales tax exemption on bottled water and an increased tax on certain craft beers brewed in Washington State.

All of these ideas would raise prices, threaten sales and slow the economic recovery from the most severe state economic slowdown since The Depression.

If you know your legislator, please leave a message at the Legislative hotline, 800-562-6000. Or, contact the legislature  and type in your address to learn who represents you and how to contact them by telephone or e-mail.

Thank you for your prompt attention to this matter. The Legislature is scheduled to adjourn on April 28, so please act quickly.

Small businesses drop health care coverage

By Jan Teague, President/CEO

In Washington State, only 37 percent of small companies offered health insurance to employees by 2011, a drop of 10.5 percentage points from 1999.  This fact struck me when I read it this week in an April 11 article of the Spokesman-Review. 

The paper goes on to say that a just released report says the average annual employee-only health insurance premium rose from $2,490 in 1999 to $5,081 in 2011.  For family coverage, the premium rose from $6,415 to $14,447.  That's a lot of money.  I wonder who will be paying this money once the state exchange is open for business.

The story paints a bright picture for companies with more than 50 employees.  For the most part they offer health insurance and that hasn't changed since 1999.  The idea that 96 percent of businesses with over 50 employees offer health insurance poses some interesting thoughts on the impacts of Obamacare. 

**Since most larger businesses offer health insurance, the impact of Obamacare on these companies is the new paperwork they have to do to prove it. 

**Obamacare doesn't require small businesses with under 50 employees to cover employees, so they won't see a lot of change unless they currently offer coverage. Their rates will likely go up in 2014 to help pay for the subsidy programs the state will be offering.

**The most significant financial impact will be the individual mandate for those who work for a small business.  Individuals are required to get insurance and will be flooding to the state exchange to get it.  So they flood to the exchange and get a subsidy (likely given the high income threshold for a subsidy).  Yes, they will buy coverage, but at what cost?  Any cost will impact an individual who doesn't now pay for health insurance.  We thought the increase in social security taxes this year impacted retail sales.  Just wait until Obamacare takes money out of people's disposable income. 

Trying to sort out what will happen in our country in terms of increased costs for health care insurance is not that clear.  Two states this year have introduced bills that have significant penalties for larger employers who do not offer health insurance.  These states are California and Connecticut.  They hope to pile on to the Federal penalty so that it isn't cheaper to pay the penalty than to offer the insurance.  Since the costs of health care keep going up every year, the penalty would have to go up every year to keep up with health care costs. 

A few insurance companies back east just released their premium rate increases which are running about 15 percent.  They are saying this doesn't take into consideration any increases that might relate to Obamacare. 

Too bad Congress didn't deal with the cost of health care and only focused on requiring people to have coverage.  It's not only shaping up to be a mess, it's just one more thing that will keep the economy from recovering any time soon.

Pharmacy robbery bill passes Legislature - on to the Governor

By Mark Johnson, VP Government Affairs

Senate Bill 5149, prime sponsored by Senator Mike Carrell (R-Lakewood), will allow a 1-year sentencing enhancement for criminals who steal from a pharmacy. 

The Washington Retail Association and its members have been working on this legislation in one form or another for five years.  Our thanks to Senator Carrell for getting it through.  We now want to encourage Governor Inslee to sign it into law.

The bill received strong support in the House passing 93 to 4 and unanimously in the Senate. 

Washington State experiences some of the highest numbers of pharmacy robberies in the nation every year. Last year, more than 700 pharmacy robberies occurred in the U.S.  The Legislature and Governor need to send a clear message to criminals that there are significant penalties for committing this crime that endangers customers and employees and costs businesses in stolen merchandise.

Founding WRA board chairman, Tom Huff, dies

WRA's founding board chairman, Tom Huff, died last weekend at the age of 80 after suffering from the lung disease pulmonary fibrosis.

Jan Teague, WRA's President/CEO, praised Huff, a former Sears executive and WRA's first Board of Directors' Chair, for his work on behalf of the retail industry.

"Tom believed in the importance of retail's voice and guided the association's vision as the Eyes, Ears and Voice of Retail," she said. "He was a great leader both for our industry and in the legislature."

The Gig Harbor resident served in the state House of Representatives from 1995 to 2000 and served as chair of the appropriations committee. Huff was past Chairman of the Board of St. Martin's University and served as a member of the commission that last redrew state political districts to account for population changes. He was the founding WRA board chair in 1987.

Clyde Ballard, former speaker of the House of Representatives, credited Huff with being passionate to ensure that pensions were funded and that the state budget was sustainable.

Visit The Olympian to read Huff's obituary.

Sources: News Tribune, Olympian

DeBolt resigns as House Republican Leader

Rep. Richard DeBolt (R-Chehalis) today announced he was resigning as House Republican Leader due to health concerns. He plans to serve out the remaining two years of his term in office.

The House Republican caucus announced that DeBolt had an unspecified medical emergency at his home last week and has been undergoing medical tests since the event. Final tests are expected later this week.

DeBolt said his doctor recommended that he step down from leadership two years ago.

"I didn't take that advice and should have," DeBolt said.

Rep. Joel Kretz, R-Wauconda, will be acting House Leader until a formal caucus reorganization takes place.

DeBolt was first elected to state office in 1996. He has served as deputy House leader and House floor leader. He ran for re-election unopposed in 2012.

Source: House Republican caucus

WRA commentary on Inslee's new taxes published online

WRA President/CEO Jan Teague has authored an opinion piece calling into question Gov. Jay Inslee's proposal to repeal a non-resident sales tax exemption currently offered in Washington State.

Teague wrote that a repeal is bad policy that would damage economic development and threaten retail jobs prior to the retail industry recovering from the recession. State Employment Security data show there are approximately 6,200 fewer retail jobs in the state compared with January, 2008.

In some cases, repealing the exemptions would add hundreds of dollars of cost to the price of more expensive items and discourage sales in Washington State, particularly for small Southwest Washington businesses along the border with Oregon, Teague wrote.

Visit Washington State Wire to read Jan's article. The Washington Research Council also posted Jan's article on its website. 

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.

WRA-backed bills await Governor's signature

In recent days, three key bills backed by WRA have been approved by the Legislature and sent to Gov. Jay Inslee for his signature.

WRA has delivered letters to the Governor requesting that he sign all three into law. 

They are:

SB 5517, beer and wine tasting. The bill to expand retail sampling eligibility passed the Legislature and awaits signature by Gov. Jay Inslee. WRA believes the bill would better educated consumers, raise the profile of Washington State products and provide retailers possible new sales opportunities.

SB 5022, refinement of state Organized Retail Crime law. This technical fix to language in the nationally-renowned state law would enable prosecutors to apply the law in more circumstances and obtain more convictions.

It's mostly about the state budget now

Almost all of the negotiating by lawmakers to adopt a new state budget will start this week and last until the scheduled April 28 adjournment date. If legislators cannot compromise in time, Gov. Inslee will exercise his sole right to declare a special legislative session of up to 30 more days.

Today, on Day 94 of the scheduled 105-day session, there is a 5 p.m. deadline to consider bills from the opposite house with the exception of bills deemed necessary to approve a state budget. Though the budget now dominates debate, WRA has been paying attention to retail-related bills, some of which could be attached to budget bills in the closing days of the session.

The Senate and House budgets add funding for education, as mandated by the state Supreme Court, but the Senate version comes with no tax increases while the House version includes a raft of tax increases. The pivot point on adopting a budget will be whether a new spending plan comes with new taxes.

Here are a few remaining bills awaiting final action:  

HB 1294, flame retardant ban and alternative assessment testing. The debate has been centering on whether testing for alternative chemical should remain in the bill. The outcome of the question was uncertain at this writing. The Senate bill does not include testing.

SB 5178, flash mob robberies. Though the Senate passed the bill unanimously to curb group robberies organized on social media websites, the House Appropriations Subcommittee on General Government has taken no action on the bill.

HB 1971, E-911 prepaid wireless tax. WRA is working to secure a 5-cent reimbursement for each sale if retailers wind up being required to collect the 95-cent tax during a sale.

WRA urges retailers to reject court settlement on swipe fees

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.

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.

The Retail Industry Leaders Association has provided valuable frequently asked questions about opting out of the settlement. Please visit http://www.rila.org/enterprise/Documents/INTERCHANGE%20Settlement%20Summary%20RILA%203-5-13.docx to review that document.

According to the settlement, 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.

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."

NRF seeking retail case studies

The National Retail Federation has launched a publicity campaign and is seeking suggestions from members about how to correct misconceptions about the industry.

If you have a positive story to tell about retail's impact on your community and on innovation, send the idea to thisisretail@nrf.com. 

In a letter to U.S. Speaker of the House John Boehner, NRF President and CEO Matthew Shay said people often fail to recognize the retail industry's impact on careers, community and innovation. The ThisIsRetail campaign aims to change those perceptions, he said.

Shay encouraged retailers to visit ThisIsRetail.com and to share stories that shed more light on the industry's impact.

Temporary health exchange website launched

The Washington Health Benefit Exchange has 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.

Research Council annual dinner set for June 4

Bill Bishop, co-author of a book that details how modern demographics explain recent elections, will headline the Washington Research Council's annual dinner on June 4 at the Bellevue Club.

Bishop co-authored The Big Sort, which describes America as increasingly clustered into culturally and politically homogenous communities even as the nation becomes increasingly diverse. Scholars and politicians alike cite Bishop's findings to explain modern election trends and outcomes.

For more details about the dinner, visit Research Council, contact dede@researchcouncil.org or call 206-467-7088. A 5:30 p.m. reception will precede the event.

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. 

Safety tip: (one in a series)

How to be vigilant about forklift safety

A forklift is a necessary tool in most larger, retail workplaces. Just as important is the need to operate this machine safely.

Labor & Industries' website details the case of a forklift fatality that occurred when an advertising sign company executive tipped over the machine as he was unloading steel tubing from a flatbed trailer. An inspection showed a faulty rear axle and steering mechanism compromised the stability of the forklift, which also was not equipped with a seatbelt.

L&I's site includes a 32-page guide on the safe operation of forklifts. It explains how forklifts operate and includes several inspection-related tips for safe operation. The report also includes frequently asked questions about forklift training.

WRA employs Maria Justin as a safety advisor. She is available to members for workplace safety visits and to help with organizing a safety plan and identifying ideas for safety meetings. Contact her at 360-943-9198, Ext. 21 or at maria@retailassociationservices.com.  

Breakfast for Heroes set for June 27

A military Breakfast for Heroes has been scheduled on June 27 at the Hilton Bellevue Hotel, 300 112th Avenue S.E.

The event is sponsored by Heartbeat, an organization that provides therapeutic services, emergency assistance and morale building programs for active and discharged service men and women in Washington State.

Featured speaker for the 7:30 a.m. will be Katherine Theresa Platoni, an Army Reserve clinical psychologist with experience teaching patients methods of reducing suffering from chronic pain and terminal illnesses. Col. Platoni's assignments have included four wartime deployments.

To register, click here . 

Save the date, Tacoma port breakfast meeting on May 23

Jenny Keehan, Executive Vice President of the Retail Industry Leaders Association (RILA) will talk about emerging retail trends at a Port of Tacoma breakfast meeting on May 23.

Keehan will discuss multichannel marketing, showrooming, social media and the current outlook and trends in the retail industry. The port's containerized import operations play a crucial role in supplying retailers with merchandise.

The event will take place at the Greater Tacoma Convention and Trade Center in downtown Tacoma, from 7:30 a.m. to 9 a.m.

Registration information will be available shortly and supplied in a later WRA newsletter.

Health care seminar online

The National Retail Federation's recent seminar on complying with national health care reform is now available online to NRF members.

Those who previously registered for the webinar must click here and provide an e-mail login at the prompt.

For a comprehensive review of health care reform requirements and considerations, visit http://www.retailmeansjobs.com/healthcare.  

Support builds for sales tax fairness

Two members of the U.S. House of Representatives last week called on one of their colleagues to hold hearings on a bill seeking national sales tax fairness regarding online retailers.

The goal of The Marketplace Fairness Act, which U.S. Senators solidly supported in a non-binding budget resolution amendment last month, is to require online sellers to collect sales taxes as traditional brick-and-mortar retailers do. Such a requirement would level the competitive playing field for traditional retailers and increase sales tax revenues to state and local governments.

Reps. Steve Womack (R-Arkansas) and Jackie Speier (D-California) said last week that the Senate's vote has built momentum for a hearing in the House. They called on House Judiciary Committee Chairman Bob Goodlatte (R-Virginia) to hold hearings on the bill. The representatives made their announcement after meeting with a coalition of small business representative who visited Washington, D.C. in support of the bill.

WRA, the National Retail Federation and Retail Industry Leaders Association support The Marketplace Fairness Act for the competitive and revenue benefits it would bring.

Read a story in The Hill for more about the momentum that Reps. Womack and Speier are working to build in the House.