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. 

State unemployment fund still best in the country

By Mark Johnson, VP Government Affairs

Monday I attended the quarterly Unemployment Insurance Advisory Committee (UIAC) at the Employment Security Department.  I was pleased to hear that Washington State continues to lead the nation with the healthiest UI trust fund with $2.6 billion in reserves or a 13-month payout. 

In comparison, California went belly up and owes the feds $10 billion.  Many of our nation's other states unfortunately had to borrow money from Uncle Sam to pay their UI obligations.

I am happy to report that with unemployment rates dropping our employer paid UI taxes are expected to go down slightly in 2014.  Currently our average tax rate is 1.11 percent, which is the 20th highest in the country. 

Our state continues to slowly crawl out of the recession.  According to the department's chief economist, we are still only 68 percent recovered from our high point.

The Employment Security Department has a new commissioner, Dale Peinecke.  He comes from the medium sized aerospace business world.  We at WRA are excited to build a solid working relationship with Commissioner Peinecke and his team.

WRA joins review of safety fines

WRA's VP of Retail Services, Tammie Hetrick, will meet with a committee later this week reviewing fines assessed to companies found guilty of safety violations.

Hetrick's work is on a Washington Industrial Safety and Health Act advisory committee evaluating the penalties the state imposes on companies for violations. The review's purpose is to determine if the state is complying with guidelines set forth by the federal Occupational Safety and Health Administration.

Hetrick's work is to ensure that fines are fair and not excessive.

"We need to put more emphasis on helping employers to become safer rather than trying to fine them," Hetrick said. While some employers may be lax regarding safety, Hetrick said most sincerely want to comply with the law.

HB 1891 passed the House but died in the Senate during the regular 2013 session. The bill sought to increase fines for safety citations. Hetrick said it was uncertain when the committee will complete its review. 

Senate, House budgets contain flaws, new report says

As state Senate and House members prepare to pass a new state budget after the special session begins on Monday, spending plans proposed by both houses contain flaws that must addressed, a new analysis has concluded.

The separate approved spending plans contain weak financial assumptions, overly optimistic revenue projections, and unspecified and questionable management savings, according to the Washington Research Council.

"....budget negotiators clearly have their work cut out for them," the report concludes. It notes that according to state Treasurer Jim McIntire, "...neither of these budgets is sustainable in the sense that they are fully responsive to the constitutional and statutory obligations of the state and they provide for a minimal unrestricted ending fund balance."  The Research Council continues: "We agree."

The report includes a table with a handy comparison of the House and Senate spending plans. In short, the Senate would spend slightly less without a tax increase while the House increases taxes and spends more money.

McIntire noted that flaws in either budget proposals could threaten the state's credit rating if not addressed.

Senate approves e-fairness bill, on to House debate

By a 69-27 vote on Monday, the U.S. Senate passed the Marketplace Fairness Act that would require online sellers to collect sales taxes and improve the competitive marketplace with traditional brick-and-mortar retailers.

The bill now goes to the U.S. House of Representatives for further debate.

Jan Teague, WRA President/CEO, traveled to Washington, D.C. this week to lobby House members to also enact the law. Teague is visiting Washington as part of a National Retail Federation leadership conference.

Officials of numerous retail organizations, including the National Retail Federation, issued statements in support of Congress passing the bill as soon as possible.

"Congress needs to address this sales tax disparity and allow retailers to compete freely and fairly," said Stephen I. Sadove, Chairman of the Board of the National Retail Federation. "Retailers of all shapes, sizes and channels deserve a level playing field."

Sales tax collections by online retailers would increase revenues to state and local governments. Estimates by the Revenue Department are that revenues to Washington State would increase by about $567 million in the 2015-17 biennium.

Click here to read more and check back by reading WRA's e newsletter or blog for updates on this issue. There currently is no firm timetable for a final vote on the bill.

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.

New I-9 hiring form required starting this week

By Tuesday of this week, employers must have shifted to using the U.S.Citizenship and Immigration Service's new employment eligibility verification form.

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

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.

Inslee signs another WRA-backed bill

WRA backed the bill, sponsored by Sen. Jim Honeyford, R-Sunnyvale. The hope is that the law will free up more employers to hire minors by simplifying the paperwork a business must process. Under the law, an employer need only complete parts of a new business license application, indicate the job duties and estimated hours to be worked to properly hire a minor.

Gov. Inslee also has signed SB 5517, which allows licensed retailers to share samples of beer and wine with customers. This permission, supported by WRA, will heighten the profile of Washington State products and help customers make better purchase decisions.

WRA also has asked Inslee to sign bills increasing penalties for pharmacy robberies, allowing 90-day supplies of certain drugs dispensed from pharmacies and providing for sampling of spirits in retail locations. 

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.

Safety tip: (one in a series)

It's Wildfire Awareness Week

It is the first year that governors of the western states including Washington have proclaimed this Wildfire Awareness Week. Joining Washington in the public awareness campaign are Oregon, Idaho, Nevada and California.

Because the western states make up nearly half the nation's forested areas, wildfires are a particular concern in states such as Washington, especially as the climate evolves from wet winter days to warmer, drier summer days.

Experts advise businesses to implement firebreaks into their designs. Firebreaks (things that don't burn) can help control a fire and protect a building from being damaged or destroyed. Design considerations include concrete, brick or gravel walkways; concrete flower box borders and water features, such as a pond.

Such measures go hand in hand with continuity plans companies can implement after a natural disaster such as an earthquake, flood or fire. Not taking such steps can ultimately result in a company going out of business not due to financial reasons but because of a natural disaster.

The wildfire awareness campaign has offered a few computer links to information that can help businesses improve their fire protection.

WRA employs Maria Justin as a safety advisor available to members for safety-related workplace visits. Maria also can help companies to outline safety plans and to list ideas for safety meeting topics.

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

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.

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. 

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.  

Special sessions cost money

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

A recent Spokesman Review article reminded readers that Gov. Inslee and lawmakers will spend money during the upcoming special session that could have been saved or spent some other way. The new session is scheduled to start on Monday.

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.