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. 

Initiative I-517 is not good for retailers

By Jan Teague, President/CEO

Expanding the rights of petition gatherers and solicitors is not a good idea, but I-517 seems to do just that.  In general retailers think that how we handle petition gatherers now is working.  If retailers had their way, the laws would offer even more protection for private property owners and the customers who come to shop.

Public property is treated differently with more liberties regarding free speech activities including signature gathering drives.  It's the public's property.  But because retail spaces offer a place for citizens to gather, the courts have been more lenient regarding what the public is allowed to do at a store, giving some reasonable accommodations for free speech activities. 

Property owners do have the right to define where people may solicit as well as rules of behavior.  These rules are done to offer customers safety and an opportunity to shop without feeling harassed by paid signature gatherers who can often be too aggressive for the public.  The highest values for property owners are people's safety and customer service. 

If I-517 eliminates or restricts the property owner's ability to set rules of conduct, then it is an infringement on an owner's private property rights. If anything happens to the customer and their safety is compromised, it could lead to lawsuits against the property owner.   That's why most property owners restrict signature gatherers to spaces away from the entrance to their facility.

For the most part, signature gathering has become a business and these businesses should have to abide by rules of conduct when they are on another business's property.  If they are not a business-run signature gathering group, then they should have to abide by the same rules set for charities that graciously ask for an opportunity to solicit for their special interests and are asked to do it in specific places on the property.   

If petition gatherers were any other kind of business activity, retailers would have the right to refuse that business in its entirety or to charge a rental fee for the use of their space.  While this is not so with petition gathering, it should still remain a retailer's right to determine where, when, and how signature gathers behave on their property. 

You will be hearing more on this issue in the coming weeks as people start to talk more about the initiative. WRA will be working with a coalition to decide exactly what educational materials will be available and what steps we can take to make sure that our customers remain safe as they enter our stores. We want to make sure that customers don't decide that it is simply too much trouble to get past signature gatherers and go somewhere else to shop.

Governor signs pharmacy robbery bill

By Mark Johnson, VP Government Affairs

Gov. Jay Inslee has signed Senate Bill 5149 into law, increasing penalties for criminals who rob pharmacies.

Sen. Mike Carrell (R-Lakewood) was the prime sponsor on the bill.

Washington State has one of the nation's highest incidence of pharmacy robbery.  This is due in large part to the street resale value of potent pain relievers.  Reports show one pill can be worth as much as $80.  SB 5149 allows a judge to increase the penalty for robbing a pharmacy by 12 months. 

The hope is the law will accomplish two things. First, serve as a deterrent to criminals thinking of stealing from a pharmacy and second, put the criminals who do rob a pharmacy behind bars for an extended period of time.  Current less stringent laws have allowed some criminals to rob pharmacies repeatedly with little consequence.  Of concern is that these robbers are getting bolder and more dangerous.  Customers, employees and owners of pharmacies are at risk of injury or even death, not to mention the financial impact to the store and their patients.

This legislation was supported by a wide group of stakeholders including law enforcement and prosecutors.  WRA wishes to thank Senator Carrell for sponsoring the bill and the other instrumental legislators in both the Senate and House for their tireless work on getting the bill to the Governor for his signature.

"Slow as molasses" special session continues

At least publicly, the state Senate and House have made little, if any progress in reconciling state spending plans before officially adjourning the 2013 legislative session.

Since convening the current overtime session after the April 28 adjournment, little progress on passing a new state budget has surfaced publicly. The current special session is scheduled to adjourn on June 11.

The current fiscal year ends on June 30. Were there to be no budget compromise at that point, state government would begin shutting down due to lack of funding.

Very few legislators are in Olympia as only a small core of lawmakers privately continues to try to reach a tentative budget compromise. One online report recently suggested some legislators might be tempted to delay until calling a second special session to take into account an updated June 18 state revenue report before agreeing on a new budget.

What basically separates lawmakers is how to come up with about $1 billion in additional state funding for education in response to a state Supreme Court ruling that the state is shortchanging schools. A Senate budget would avoid new taxes while the House proposes wiping out tax incentives and extending temporary taxes to spend more money.

A new state revenue forecast is expected to show increasing revenues, which could improve chances for avoiding tax increases. However, no firm decision has been reached on when to adopt a new state budget.

WRA's chief concern during this period remains defeating HB 2038, which would wipe out valuable tax incentives including the non-resident sales tax exemption upon which many Washington State retailers along the Oregon border depend for their survival. The exemption boosts sales along the state's southern border because Oregon shoppers pay no sales tax.

Governor signs bill to curb tax fraud

Washington has become one of 14 states to boost legal penalties for using software known as zappers to evade paying sales, business and occupation and employment taxes to the government.

Gov. Inslee this week signed Senate Bill 5715 into law. It makes using software to commit tax fraud a felony with penalties including a fine and revocation of a business license. The software deletes sales in an attempt to elude government auditors.

The broad bill covers those who "sell, purchase, install, transfer, manufacture, design, update or repair" such software. A Department of Revenue announcement said such software is usually found in businesses frequently paid in cash.

The Canadian Province of Quebec, an economy similar in size to Washington, estimates that zappers have cost it more than $200 million in annual revenue.

Source: Department of Revenue

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 free social media webinar on June 27

WRA is offering members a free webinar this summer in cooperation with the Council of State Retail Associations.

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

*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.

Policy Center announces June 27 business, health care conference

The Washington Policy Center will host its 11th health care conference and biennial small business conference on June 27 at the SeaTac Hilton hotel.

Speakers will address the state of health care reform and the state's small business climate at the policy center's first-ever dual conference event. The keynote lunchtime address will be by MSNBC and Fox News analyst Avik Roy, who will address free-market solutions to the health care crisis. Roy also writes about health care for Forbes magazine.

WRA is a co-presenter of the event. To register, click here. For more information, contact Stephanie True at 206-937-9691 or strue@washingtonpolicy.org.

One week left to urge rejection of swipe fee settlement

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 have one remaining week to send a letter opposing 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.

The National Retail Federation Tuesday announced it would formally oppose the settlement.

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.

To opt out of the proposal, retailers must submit an attached letter to the settlement administrator by May 28. The attachment includes both a letter to object to the settlement and another one-page form to opt out of receiving any payment.

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.

Business health exchange delayed

Lack of insurance company participation has delayed full operation of a Washington Health Benefit Exchange meant to help small businesses find health care coverage for their employees. The exchange is the state's operations arm as part of national health care reform required under the Affordable Care Act.

The exchange was to be fully operation this fall. Just one insurance company, Kaiser Foundation Health Plan of the Northwest, can be ready in time to participate in the exchange. Other potential carriers who meant to participate in the Small Business Health Options Program said they needed more time to prepare.

The small business exchange will operate as a limited pilot program, starting in October, with details to follow as to where it might be available statewide. The business exchange will expand across the state as more insurance companies become involved, said Richard Onizuka, chief executive officer for the Washington Healthplanfinder.

The delay will not affect the planned Oct. 1 launch of a health plan exchange for individuals. Nine insurance companies have expressed interest in selling 57 health plans to individuals through the exchange.

Read Associated Press to learn more about the delay in the small business exchange. 

Effort begins to repeal Shoreline ban on plastic bags

An initiative campaign has begun to repeal a Shoreline ban on plastic bags set to take effect in February, 2014.

Repeal organizers who must gather about 6,000 signatures began canvassing last weekend. If successful, either the City Council would vote for a repeal of the city's ban or agree to place the matter on the ballot in November.

WRA opposes removing consumer choice through bag bans. Instead, WRA favors enhanced commitment to recycling and the use of reusable shopping bags. Most bans include fees meant to discourage use of paper bags that wind up being a financial burden on consumers.

Also, WRA favors a national discussion on the issue to curb the growing patchwork of town-by-town ordinances banning plastic bags. This scattershot approach is inefficient and leaves retailers with multiple locations having to negotiate several bans, all of which might include different enforcement requirements.

To learn more about repealing the Shoreline bag ban visit www.saveourchoice.us where a copy of the initiative petition can be downloaded. Visit The Olympian to read an op/ed piece opposing plastic bag bans by WRA President/CEO Jan Teague. 

WRA's shipping vendor offers new advice

PartnerShip, WRA's third-party shipping provider, offered a few reasons this week for business to try the service.

As a third-party vendor independent of regional and national shipping carriers, PartnerShip acts on behalf of customers to negotiate discounts and other advantages.

Three possible advantages include:

*Routing management. Based on an analysis of shipments, PartnerShip will recommend the best shippers for particular routes. The recommendation is based on a carrier's cost effectiveness and customer service.

*Bill auditing. Vendors such as PartnerShip say they often find invoices with rate errors of up to 10 percent in favor of the freight carrier. Corrections are made before the third-party vendor sends the bill to the customer.

*Consolidated invoices. For frequent shippers, this can mean paying only one bill weekly or monthly as opposed to paying for each shipment.

As a WRA member, you could begin saving up to 27 percent on select FedEx shipping services by joining PatrnerShip free of charge.

And considering 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."

To learn more, visit PartnerShip's website and its improved, separate shipping website.

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)

Outdoor summer work rules in effect

Washington State employs outdoor heat exposure work rules from May 1 through September 30. The rules are meant to protect employees from heat-related illnesses or overexposure that can result in death.

In a recent announcement about weather-related care for working outside, Labor & Industry shared the following five tips:

*Drink water more frequently when working outside in the heat.

*Be on the lookout among co-workers for heat-related warning signs that include headaches, dizziness or nausea.

*Work at a comfortable pace and take scheduled breaks.

*Avoid unnecessarily heavy clothing and remove protective gear when it is safe to do so.

*Avoid heavy meals or excessive caffeine consumption. Excessive caffeine increases metabolism and can result in heat intolerance and excessive sweating.

To learn more from the state, visit heat exposure for valuable references. The state also lists summer hazards to consider and avoid when working outside.

WRA employs Maria Justin as a safety advisor who can assist member with workplace safety visits, organizing a safety plan or listing topics for safety meetings. Contact Maria at 360-943-9198, Ext. 21 or 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 . 

IRS schedules free identity theft webinar

The IRS will host a free webinar from 11 a.m. to noon (Pacific time) on June 25 to help small businesses and their customers protect themselves from identity theft.

Speakers from the IRS and Federal Trade Commission will identify website resources to protect against identity theft and who to contact in a suspect case.

To register, click here. Contact SL.northwest@irs.gov if you have trouble registering.

State will advertise job openings, help with recruitment

Employers looking to advertise job openings or find job candidates can get online help from the state Department of Employment Security.

Employers who have scheduled job fairs or are looking to hire should contact ESD's calendar. Employers are encouraged to submit information at least two weeks in advance.

Also, WorkSource representatives in more than 30 offices around the state are willing to help recruit job candidates from a bank of resumes for interested employers. Contact recruitment services to learn more about this service. According to Employment Security, its website attracts more than 1.2 millions hits per month.