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 Legislature is adjourned until May 13, when a special session of up to 30 days will begin.

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. Another part of the bill objectionable to WRA is a repeal on a sales tax exemption on bottled water.

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. 

Global retail competition our next challenge

By Jan Teague, President/CEO

Today I listened to a webinar on how to export retail products.  While my original interest was for our retailers, an alarming trend is the growing competition our retailers face from around the world. 

Sometimes we think that Amazon is the biggest E Commerce competitor for us, but it turns out there are even bigger giants out there in other countries trying to make their way into our marketplace.  For instance, there is a Japanese E Commerce giant, Rakuten, that is buying up other sites and is already bigger than Amazon.  The company is working its way into our marketplace by buying U.S. online sites and designing online shopping malls. 

In 2012, 11 percent of sales happened on mobile devices in the United States.  That number is expected to be 13 percent by 2014.  The percentage is rapidly going up.  The presenter talked about how people are using 4 out of 5 minutes on their phones for something other than talking.  In other words, they are using various applications to shop or find information. 

The technology revolution that really only started in the 1990s has quickly transformed the retail landscape from regional shopping competition to international competition.  There are no limits for shoppers, particularly as they grow comfortable with using brokers such as Amazon and credit card processors such as Pay Pal, which is considered highly secured.  Their return polices, guarantees, processing ease, and price points have changed the way consumers shop. 

Compete globally?  That was the opportunity presented in the webinar.  I think it's possible to take advantage of markets that are opening up around the world.  Korea, Australia, Singapore, Panama, and Columbia were mentioned as good places to start.  People in these places have money to spend and much of what they want comes from the U.S.  There are also free trade zones in these areas that help offset some of the taxes that make our products uncompetitive. 

The advice was to sell one item as a test and see how people respond and what problems come up.  It's not too early to target a country, set up a small marketing budget and see what happens.  As your market expands, you may reach the point where you need agents, distributors, retailers, or manufacturers to team up so you can grow into a high volume seller. 

No matter what size your company, it's not too early to think about what you are going to do to compete in the global retail marketplace.  It's the next decade's trend.  Now is the time to start planning.

Session concludes with a whimper - special session starts May 13

By Mark Johnson, VP Government Affairs

A special session is an  interesting bird.  Only the governor can call one.  They have to be for a 30-day period of time, however, the legislature can conclude early and go home.  The governor can suggest what legislators work on but the legislature can bring up anything and vote on it.  Any bills that died during the regular session can be resurrected and passed.  New bills can be introduced. 

In short, it's no holds barred, anything goes.  However, the leadership of the House and Senate try to keep things under control.   A special session is a double-edged sword.  Bills you wanted to pass but got left on the wayside have another chance; but bills you didn't like and helped stop now have another chance, too.

WRA will be working closely with legislators to rein in any attempts to pass harmful legislation such as tax increases. At the same time, we have a couple of items we are going to try to breathe new life into.  If the legislature can't finish in the allowed 30 days, the governor can call another special session.  A possible major wrinkle is that our state budget runs from July 1 to June 30. 

If lawmakers don't pass a budget by June 30, state government could come to a grinding halt. Stay tuned.

Notice to self-insured WRA members

Tammie Hetrick, WRA's Vice President of Retail Services, has an important reminder for self-insured members.

It's important to regularly check the state's website for independent medical exams to ensure that doctors are approved to perform medical examinations.

L&I requires users to check www.imes.lni.wa.gov rather than expecting to receive status reports by traditional mail. Failure to check whether a doctor is approved via the website could lead to a report that does not have the credibility needed as an independent report. 

This is not to be confused with the new Provider Network.  Doctors can be registered to perform independent medical examinations and not be in the provider network.  Checking the website above assures that you are getting a currently registered doctor to perform Independent Medical Examinations.

If you have any questions about this, contact Tammie Hetrick at 360-943-9198, Ext. 13 or at Tammie@retailassociation.org. 

L&I reorganizes

New emphasis on reducing fraud

Joel Sacks, the state's new Director of Labor & Industries, addressed a meeting this week of the Workers' Compensation Advisory Committee, attended by WRA VP of Retail Services, Tammie Hetrick.

Though the department is not downsizing, some job responsibilities are being reorganized, Hetrick said.

Sacks told the group that L & I would be putting a new emphasis on fraud prevention as a way to hold down costs for employers, workers and the state.

Retro bill has new hope

Though the Senate passed the bill, it did not advance out of the House Rules Committee during the regular legislative session.

Under the bill, selected Retro programs would assist L&I in reducing a logjam of claims by scheduling independent medical exams. L & I would oversee the pilot program. The bill is related to 2011 workers' compensation reforms approved by the legislature

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 two free webinars this year

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

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

*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.

AG's office objects to PSE rate increase plan

The Washington Attorney General's Public Counsel Section has filed an objection to a multi-year rate increase plan filed by Puget Sound Energy.

The Utilities and Transportation Commission is accepting public testimony before settling on final PSE rates by July of this year, according to an announcement by the Attorney General's Office.

PSE has departed from normal rate cases by inserting automatic cost escalators into its rate request.

"It is designed to allow PSE to increase rates to improve earnings and compensate for revenue declines caused by lower customer energy usage," said Simon ffitch, the Public Counsel Division Chief. The proposal would increase electric bills about 3.3 percent this year and one percent through at least 2015, ffitch said. Gas rates would face annual rate increases of about one percent a year, he said.

ffitch has asked the state to reject the annual rate escalators to allow smaller rate increases and to reduce PSE's rate of return on equity from 9.8 percent to 9 percent.

There are a couple ways to make public comment:

*A public hearing, 6 p.m. to 8 p.m. on May 16, at the UTC hearing room, Richard Hemstad Building, 1300 S. Evergreen Park Drive, S.W. in Olympia.

*Written comments to the UTC,  P.O. Box 47250, Olympia, Wa. 98504. Include name and mailing address. To comment by e-mail, send to comments@utc.wa.gov. For more information, customers may contact either the UTC or Public Counsel at comments@wutc.wa.gov.

The AG's Public Counsel Section reviews rate increase requests and comments before the UTC. It maintains public contact through a citizen advisory committee on which the WRA participates. Visit Attorney General to read an announcement about the Public Counsel's objection to the current rate case.

Kristiansen to lead House Republicans

House Republicans last weekend chose Rep. Dan Kristiansen (R-Snohomish) to assume the party leadership post in the House with the recent resignation of Rep. Richard DeBolt as party leader.

Kristiansen was a unanimous choice of his caucus to replace DeBolt, who cited health reasons for resigning from the leadership position on April 17. As minority leader, Kristiansen will sit next to the Democrat Speaker of the House, Frank Chopp of Seattle. He and Chopp will join Gov. Inslee and Majority Coalition leaders in the coming days of the special session to pass a new state budget. Inslee has scheduled legislators to return for the special session on May 13.

Rep. Joel Kretz of Wauconda, who had been filling in for DeBolt temporarily, will remain as deputy caucus leader under caucus leader, Rep. Judy Warnick, R-Moses Lake. Republicans hold 43 seats in the 98-member house but have a working majority due to two Democrats who have joined their caucus.

Republicans completed their reorganization with Rep. Steve O'Ban, R-Tacoma, serving as assistant floor leader.

Kristiansen will serve in his role for two years, the same amount of time remaining on the House term of DeBolt, who is keeping his seat to represent District 20 in Lewis, Thurston, Cowlitz and Clark counties.

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.

Signature campaign launched to repeal Shoreline plastic shopping bag ban

West Seattle resident Craig Keller says he has begun a month-long signature campaign for a public referendum to repeal a new City of Shoreline ban on plastic shopping bags.

The Shoreline City Council voted 5 to 1 on Monday to ban the use of plastic shopping bags.

The law would go into effect in February of next years including a 5-cent charge for the use of each paper bag. Customers would be encouraged to bring reusable bags to shop.

WRA opposes such bans that have cropped up in recent years in Seattle, Issaquah, Edmonds and Bellingham. Bans such as the one Shoreline approved add to the costs for consumers while at the same time removing choice from their shopping experience. City-by-city approaches to the issue also result in a patchwork system of ordinances with varying requirements that are confusing and unworkable for retailers.

Rather than plastic bans, WRA favors increased promotion of recycling and reusable bags. Such as approach improves the environment while preserving choice for shoppers.

Keller said he planned to notify Shoreline officials this week of his plan to schedule a public vote. He mentioned a goal of collecting 6,000 signatures of registered voters to qualify for a ballot item.

Visit City of Shoreline to read more details about the ban on plastic bags. Visit SaveOurChoice.com to learn about West Seattle resident Craig Keller's ongoing efforts to gather petition signatures to overthrow plastic bag bans in Issaquah and Shoreline, or call 206-932-2243 for more information.

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.org and to share stories that shed more light on the industry's impact.

Senate passage of e-fairness expected soon, then to House

A national bill that would require online retailers to collect and remit sales taxes is soon expected to be approved by the U.S. Senate, a spokesman for the National Retail Federation reports.

In a conference call this week, David French, NRF's Senior Vice President for Government Relations, said he expected the Senate to approve the Marketplace Fairness Act shortly after it returns from recess next week.

WRA has joined NRF and numerous other business organizations in support of the bill. It will level the competitive playing field with online retailers, many of whom do not collect sales taxes, and thus generate new local and state government revenues important to paying for crucial public services, WRA believes.

NRF continues to lobby House members, where support for the bill is thought to be weaker than the U.S. Senate.

WRA President/CEO Jan Teague plans to be in Washington, D.C. next week to join with NRF as it works to build support for the bill in the House. In recent days, the bill has won the support of President Obama and Governor Jay Inslee.

The expected Senate approval is a new high water mark of support for e-fairness, which has been brewing as an issue for the past several years as Internet sales have grown and the recession has dried up government revenues from several sources.

Current estimates peg additional revenues to the state of $184 million in the next two years from passage of the bill. Under the Senate bill, smaller online businesses grossing less than $1 million a year in out-of-state sales would be exempt from collecting and remitting sales taxes.

French said he was unaware of details including a timetable for action on a House bill to address the issue.

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.

Issaquah to discuss changing signage

The public is invited to a meeting this Thursday morning at City Hall to discuss changing the sorts of allowable signs businesses may display in Issaquah.

The 9 a.m. meeting in the Pickering Room, City Hall, 1775 12th Avenue N.W. is scheduled to last two hours.

The agenda will include discussions regarding changing the sign code to enhance business visibility while maintaining the city's character.

Visit the Greater Issaquah Chamber of Commerce for a map to City Hall.

Source: Issaquah Chamber of Commerce

Safety tip: (one in a series)

Two links to assessing, improving workplace safety

Businesses might very well need a road map to assess and plan to ensure a safe workplace.

How can you recognize a potentially unsafe area or practice? What are the state's rules and requirements when it comes to operating a safe workplace.

Calling around can be hit and miss and take time. But Labor & Industries offers guidance on its website. In particular, two links to safety-related data can be useful as clearninghouses of information on assessing the safety of a workplace and learning what's required of businesses.

Visit assessment for a small business checklist on how to survey your workplace for hidden or overlooked safety threats. The assessment will help you involve your employees in the research and covers considerations such as eliminating tripping hazards or providing adequate lighting to help avoid accidents.

WRA employs Maria Justin as a safety advisor who can assist members as well with outlining safety plans and listing topics to discuss at safety meetings. Contact Maria at 360-943-9198, Ext. 21 or 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.  

WRA joins coalition for pro-business budget

WRA has joined the Recovery Washington coalition currently urging the Legislature to approve a pro-business state budget.

The coalition has run radio ads urging the legislature to avoid new taxes that add financial burdens that threaten jobs and the livelihoods of businesses. The ads feature small business owners who explain how increasing financial burdens hurt the economy. They also support the Senate state budget proposal that spends more for education while holding the line on taxes, unlike a House proposal that raises taxes.

Visit Recover Washington to learn more about the organization and its membership. The Legislature is scheduled to return on May 13 for a special session aimed at approving a new state budget. 

Special sessions cost money

Though special sessions leave the outcome of legislation in doubt, one thing is certain; they cost money.

A Spokesman Review article this week reminds readers that Gov. Inslee and lawmakers will spend money during the upcoming special session that could have been saved or spent some other way.

Inslee and legislative leaders have estimated that this year's special session will cost $11,000 a day. Last year's special session cost $9,400 a day, according to the article.

The Legislature has needed overtime special sessions about half the time since 2000. A special session can last up to 30 days. If more time is needed, the Governor would have to call a second special session.

The article notes that special sessions are not an extra expense but come out of the Senate and House operating budgets. Costs of special session vary depending upon how many lawmakers accept $90 per diem allowances. Many do, but some forgo the claims in response to the public's reaction that lawmakers failed to complete their jobs in time for the regularly-scheduled adjournment date. 

Court rules against limit on retail liquor purchases

A Thurston County judge this week invalidated a state Liquor Control Board rule that had been limiting daily liquor sales to 24 liters at groceries and restaurants.

If the ruling stands, it would be a victory for retailers who said the control board's legal interpretation had been improperly limiting sales.

The control board was interpreting the 2011 liquor privatization law as limiting daily purchases to 24 liters, regardless of consumer demand. According to a News Tribune article, restaurants have indicated they may seek further sales relief regarding liquor purchases when a special session of the legislature begins on May 13.

Source: Tacoma News Tribune