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. 

House leaders urge defeat of HB 2038

In his special session update this week, Rep. Dan Kristiansen (R-Snohomish) urged defeat of House Bill 2038.

The bill would raise taxes on a fragile economy by $879 million by permanently extending the B&O tax on service businesses. Click here to review all the businesses that would be adversely affected by the bill.

The negative effects of the tax increase would not only hurt businesses, but the employees who work for them, customers and the unemployed, Kristiansen pointed out.

The update also notes polling that concludes that taxpayers expect government to rein in spending, not increase taxes.

Click here to read the entire update. In a separate statement, other House leaders also decried the bill. 

Will small businesses offer health insurance to their employees in the future?

By Jan Teague, President/CEO

In Washington State only 37 percent of small companies offered health insurance to employees in 2011, a drop of 10.5 percent since 1999.  As coverage costs went up, participation in plans dropped. 

One of the main reasons that these small businesses offer health insurance is to compete for employees who might otherwise migrate to a larger company (with over 50 employees) where 96 percent of employers offer coverage. 

Obamacare requires individuals to have coverage.  Because the law does not require small businesses to pay for the coverage, small businesses will be faced with a new competitive challenge moving forward.  There will be a growing incentive for workers to migrate to larger companies or not even consider working in a small business at all. 

When the unemployment rate is high, there is an abundance of workers willing to do any job they can find even if the job doesn't have benefits.  But now that we are at a 7 percent unemployment rate, finding those workers is getting harder. Worker scarcity combined with workers required to buy health insurance will force small businesses to participate in health insurance or not be able to compete for workers at all.

Worker shortages will also drive wages higher.  Between shortages and benefits the future challenges for small business growth will be to price their products and services to compete.  Pricing is not a new challenge for small business, but the pressure to compete will be going up a notch or two very soon.

Liquor tasting bill signed into law

By Mark Johnson, VP Government Affairs

Governor Jay Inslee signed into law Senate Bill 5396, primed sponsored by Senator Mike Hewitt (R-Walla Walla), allowing stores to offer limited samples of liquor.  Jan Teague, President/CEO and I attended the bill signing.

Effective July 28, 2013; SB 5396 will allow stores holding a spirits retail license and belonging to the Responsible Vendor Program to offer customers no more than 1.5 ounces total, with samples being .5 ounce or less.  Servers will need to hold a class 12 alcohol server permit.  The Liquor Control Board will be responsible for administering and enforcing the program.

WRA supported the measure to allow our members to offer customers samples of liquor before making a purchase.  This will help retailers highlight certain products and will make consumers better informed purchasers, much like the successful beer and wine tasting program offered in grocery and specialty stores now.

For more information about this new program please contact the Liquor Control Board at www.liq.wa.gov or the Washington Retail Association.

Sen. Carrell dies

Sen. Mike Carrell, who had been receiving treatment for a pre-cancerous condition, died today, the Tacoma News Tribune reported.

Carrell died of lung complications stemming from the treatment, the newspaper reported.

A true friend of retailers, Carrell (R-Lakewood) had recently received a bone marrow transplant donated by his brother and was forced to miss regular attendance at the Legislature. Among Carrell's many accomplishments was advancing the cause of retailers concerned about stemming organized retail crime. During this session, Carrell sponsored a bill, signed into law, that will increase penalties on criminals convicted of robbing pharmacies.

"Senator Carrell was a very gracious leader who made a difference in the lives of so many people," said Jan Teague, President/CEO of WRA. "He was also tenacious in his beliefs and worked hard to protect the retail industry form criminal activity through legislation that helped put criminals behind bars. He will be greatly missed by all those who had the pleasure of working with him."

Click here to read the newspaper report including reaction from Carrell's current and former colleagues on the Legislature.

Source: Tacoma News Tribune

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. 

Teague featured in e-fairness article

WRA President/CEO Jan Teague is featured in this week's South Sound Business Examiner article reviewing the impact if Congress passes the Marketplace Fairness Act.

The act would require online retailers to collect sales taxes and end their unfair price advantage with brick-and-mortar retailers. Like many retail organizations, WRA supports the Marketplace Fairness Act.

"Consumers are price-sensitive," Teague told the newspaper. "So if they're going online only to avoid sales tax, a law like this just might change behavior."

Teague goes on to comment that the act would preserve sales in Washington State and be the most help to small businesses that suffer from shoppers who see their merchandise on display, but buy it online to save taxes.

The Senate has passed the act, and now it is before the House of Representatives for further consideration.

Visit Business Examiner (subscription required) to read the article.

It quotes several regional small businesses that would be helped by the act including Marty Pluth, CEO of Old Town Bicycle, who added that online shoppers now can save up to $300 on the cost of buying some of the high end bicycles he sells.

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.

Consumer confidence on the rise

Consumer confidence reached a five-year high this month, The Conference Board reported on Tuesday.

Economists said rising home prices resulting from a recovering real estate market and an improved hiring out look caused the confidence index to rise to 76.2, up from 69 in April and the highest level since February, 2008. Home prices in March jumped 10.9 percent compared to a year ago, the highest such increase since April of 2006, according to the Standard and Poor's home price index.

Consumer spending accounts for 70 percent of U.S. economic activity and is the bedrock of health for the retail industry.

Confidence among consumers regarding hiring seems justified, judging by the state's latest employment report.

In Washington State, Employment Security recently reported an April unemployment rate of 7 percent, the lowest level since a 7.1 percent rate in December of 2008.

Sources: Seattle Times, KING  5, Employment Security

Bridge collapse coaxes comments during quiet special session

Though legislature budget discussions have been pretty quiet during the special session, lawmakers generally can't work on it completely in a vacuum.

That became clear over the weekend as legislators began commenting upon the impact on debate from last week's Skagit River bridge collapse.

Though details of budget negotiations have not surfaced yet in detail, a couple of lawmakers commented to the Spokane newspaper upon how the accident will inevitably influence debate on whether to raise taxes to meet state transportation needs.

Discussion also has surfaced on flaws in the entire budget making process that have led to a series of expensive special sessions in recent years. Gov. Inslee and legislative leaders earlier this session estimated that this year's special session, scheduled to adjourn on May 11, is costing $11,000 a day.

There's growing discussion about trying to avoid the need for future special sessions by speeding up state revenue forecasts, upon which legislators base their budget discussions. The problem has been that legislators wait until the very latest revenue forecasts are made to make budget decisions, which often forces the Legislature into overtime.

In a report this week, the Tacoma newspaper reported on considerations of moving up the revenue forecast so that legislators can complete budget discussions on time and avoid the added expense of special sessions.

Sources: Spokesman Review, News Tribune

Sonntag inducted into State Open Government Hall of Fame

Former state Auditor Brian Sonntag was honored this month with induction into The State Open Government Hall of Fame.

The honor is presented by the National Freedom of Information Coalition (NFOIC) and the Society of Professional Journalists.

A panel of judges concluded that Sonntag record of open government advocacy was unmatched in the state.

"For Sonntag, advocating for open government wasn't a political or election strategy, it was an inherent value, personally and professionally," the panel commented.

In his final public report before retiring this year, Sonntag suggested that all executive (private) sessions be recorded and that a mediation process be established to resolve public records disputes.

Visit NFOIC to read more about his honor. 

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.

WRA-backed workers' comp reform bill gains newspaper support

Two newspapers in recent days have urged the Legislature to pass SB 5127, which would lower the eligibility age for injured workers to accept settlements of the non-medical portions of their injury claims.

WRA backs the bill because it would reduce state expenses and thereby allow long-term relief to retailers regarding their injury insurance costs. Such relief is key to helping the state remain competitive in the marketplace.

The Senate passed the bill 30 to 19 this session but it has yet to come up for a vote in the House of Representatives.

The President/CEO of a Monroe cabinet manufacturer wrote an Everett Herald opinion piece urging approval of the bill.

"Without the bill, the state will have to raise taxes on payrolls, which raises the prices of creating and sustaining jobs," wrote The Seattle Times in its editorial favoring SB 5127.

The bill is an outgrowth of 2011 Legislature reforms motivated to reduce workers compensation expenses so that businesses have a better chance of succeeding and growing in Washington State.

Sources: Seattle Times, Everett Herald

Major retailers sue Visa, MasterCard is swipe fee dispute

Days before a deadline to reject a proposed court settlement, major retailers last week sued Visa and MasterCard in a dispute about fees retailers pay to process credit card transactions.

Many retailers have criticized the proposed settlement, announced last summer, because it offers low compensation and requires retailers to permanently waive their rights to sue the credit card companies.

WRA and major retail organizations have been urging retailers who offer the credit cards to reject the settlement in favor of pursuing legal remedies for rapidly rising rights fees to offer the card services to customers.

The National Retail Federation has accused Visa, MasterCard and their major banking partners of price fixing. In the latest development on Tuesday, NRF filed a federal court brief asking a judge to reject the proposed settlement.

Rather than being a settlement, NRF General Counsel called the proposal a potential "surrender" by the retail industry.

Fees charged to retailers for processing credit sales have tripled in the past decade and add an estimated $30 billion a year to prices paid by consumers. NRF estimates the average household spends an additional $250 a year because of the bank fees.

Visit Reuters to read more about the lawsuit.

Sources: Reuters, National Retail Federation

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.

Safety tip: (one in a series)

Replace worn tires

Businesses that use vehicles in any way including deliveries shouldn't forget to check an often overlooked area, tire safety.

Labor & Industries advises that in general, tires with tread that is worn down to 1/16 of an inch are unsafe and should be replaced. WAC 296-865-20015 requires operators to ensure that tires worn beyond the point of safety are not used.

L&I has included a diagram on its website to show how to follow treadwear indicators on tires to determine if they are too worn. The indicators are raised sections of rubber spaced intermittently in the bottom of tread grooves.

When these indicators appear "even" with the outside of the tread, it's time to replace the worn tires.

The "penny method" is another way to check tire wear. Simply put, if tread is not deep enough to hide the top of Abraham Lincoln's head on a penny placed head first into the tread, the tread is worn out and needs to be replaced.

L&I also cautions that tread wear is not the only indicator of tire safety. Sunlight and weather exposure also can cause tire cracking that can compromise safety and should be checked by a professional.

WRA employs safety advisor Maria Justin who can be contacted to arrange a workplace safety visit or help with safety meeting topic suggestions or to assist in drawing up a safety plan. 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 . 

State ads quicker way to amend excise tax returns

The Department of Revenue has added an online option for retailers to amend previously filed excise tax returns.

Prior to this development, amended returns had to be filed on paper even though the online eFile system had been operated since 1998.

In addition, the new Revenue computer system also allows taxpayers to make a payment or request a credit or refund. Allowing online amended reports was something many taxpayers had been requesting, said Revenue Director Carol K. Nelson.

To learn more, click here or call 877-345-3353 for assistance.

Source: Department of Revenue

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.