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. 

Health care lack of access already starting

By Jan Teague, President/CEO

I have seen first hand how the health care system is already failing us. 

Our office uses managed care through Group Health.  We have an employee who has been shuffled around for weeks now waiting for appointments with specialty care physicians.  As each one refers to another, the paperwork has to go through a process that takes a week.  You can't make an appointment until the specialty care physician gets the paperwork that approves coverage, then it's several weeks to get in because of physician overload.  Then she is referred to another specialty care doctor and back through the paperwork again. 

Each time, there are more tests which mean more dates to schedule the tests and more waiting to get the results.  Meanwhile, my employee is getting sicker and sicker.   

If this is how managed care works before we have even more people trying to get in to see these doctors, what will the waits be then?  Everyone should be able to get in to see the doctor, but I see access to be the biggest problem moving forward for us in trying to figure out how to reform the system so people get the proper care when they need it.

Shutdown appears unlikely as Legislature closes in on budget adoption

By Mark Johnson, VP Government Affairs

As I write this on Tuesday the Legislature is passing bills.  Right now the House is voting on transportation related bills.  The Governor has announced that a deal has been reached and the legislature should be able to complete an operating budget soon to avoid a state government shut down that would take place July 1, 2013.

WRA's main worry remains the legislature's earlier proposal to change the non-resident sales tax exemption into a remittance program in an attempt to collect $45 million over the next two years.  The income projection is overly optimistic or the result of what we like to joke about as "Olympia math."

Lawmakers are sadly mistaken if they think non-residents, such as Oregonians, will continue to shop in Washington stores when they have to apply for their sales tax back.  Study after study, year after year, shows that the number one deciding factor for a consumer's purchase is price.  Consumers will seek out the lowest price wherever it may be. The State of New York was losing so much tax revenue from clothing sales to its neighboring states because of its high sales tax that it decided to allow counties to exempt clothing from sales tax. 

Oregonians and other non-residents who qualify for the exemption will simply make their purchases somewhere else, not in Washington State.  Many consumers will turn to the internet to shop sales tax free.  This will only hurt Main Street Washington retailers that employ Washington citizens who live in our communities and pay Washington taxes.   There is no denying, changing the non-resident sales tax exemption will cost Washington State jobs and taxes and put a strain on our already overburdened social safety net.

Hopefully the legislature and governor will approve an operating budget that isn't tied to changing or repealing the non-resident sales tax exemption and then go home.

WRA thanks local House, Senate members for pro-retail vote and support

Jan Teague, WRA's President/CEO, has sent letters of congratulations to six members of the state Congressional delegation who have shown support for passing the Main Street Fairness Act.

The act would require most online retailers to collect sales taxes, which would result in a fairer competitive marketplace with brick and mortar retailers and raise new revenues for vital services provided by state and local governments.

The National Retail Federation recently honored Congressional members who have supported the act with "Hero of Main Street" awards.

"For too long, traditional brick and mortar stores have faced a competitive disadvantage because many online retailers have neglected to charge sales taxes," Teague wrote. "Here's hoping your support for e fairness has built up enough momentum for the House of Representatives to complete the approval of the act this year."

The Senate has approved the act.

In her letter, Teague congratulated Senators Patty Murray and Maria Cantwell, and House members Adam Smith, Suzan Delbene, Rick Larsen and Derek Kilmer. Visit NRF for more and a complete list of winners. 

Vague language sparks opposition to I-517

The Washington Policy Center is reporting mounting opposition to a fall initiative election addressing the rights of petition signature gatherers outside stores.

Citing vague language in Initiative 517, former Attorney General Rob McKenna, former state Auditor Brian Sonntag and former Secretaries of State Ralph Munro and Sam Reed already have joined the No on I-517 campaign, according to a policy center blog posting by staffer Jason Mercier. WRA's board of directors are among those opposed to the initiative.

Mercier reports that one section of the initiative's language is particularly troubling due to its vague language and overly broad room for interpretation that threatens the private property rights of retailers. The language raises questions as to whether petition gatherers could function inside rather than just outside of stores or in schools or the aisles of sports facilities ranging from professional stadiums to high school facilities.

"Though the people's right of initiative and referendum should be robustly protected signature gathering shouldn't infringe on private property rights for those businesses that don't want to engage in a given political debate," writes Mercier. "The answer as to whether I-517 does this will likely determine its fate at the ballot."

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 a recent 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 tomorrow

WRA is offering members a free webinar this week 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 business, health care conference is tomorrow

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

A late-addition speaker will be Scott Ostrander, general manager of Cedarbook Lodge in SeaTac, who will address economic impacts of a new proposal to increase salaries of SeaTac airport workers and other businesses that service the airport such as hotels and car rental companies.

WRA is co-presenting the conference.

Other 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.

Missing moderates slow state budget progress, Research Council president writes

Today's editions of the Everett Herald include an opinion piece by Washington Research Council president Dick Davis that sheds more light on the Legislature's struggle to pass a state budget. It is in the midst of its second overtime session this week.

Like Congress, the state Legislature has become increasingly partisan. When that happens, Davis writes, it takes more work and takes longer to get things done.

Writes Davis: "This year much that we used to take for granted -- writing a state budget, funding transportation, improving public education, expanding access to higher education -- sometimes appeared to be impossible. In the end, people with different values, priorities, and principles will find a way to compromise, to claim partial victory. But those imperfect compromises do not come easily."

For the time being at least, political moderates are in too short supply for decisions to be made sooner and more efficiently, Davis writes.

He continues: "The increased number of safe seats and sharper political polarization complicates negotiations. With fewer centrists in play, politicians concentrate on motivating the base rather than persuading the other side. Incumbents worry more about intraparty challenges. Democrats look over their left shoulders; Republicans, their right. Compromise comes with political risk."

To read the entire essay, visit The Herald. 

Feds offer advice on identity theft

Officials from the Federal Trade Commission and Internal Revenue Service shared advice this week during a webinar to help small businesses protect against identity theft.

Speakers from both agencies reviewed recent case files and reminded those participating in a webinar of the fines that are possible if companies become lax in protecting customer identities. Jim Szymanski, WRA's Director of Public Affairs, participated in the webinar.

Attorney Bob Schroeder of the FTC urged companies to refrain from discarding paper records in Dumpsters and to employ computer firewalls and elaborate passwords to make it tougher for hackers to steal sensitive information. He noted that some high profile social media companies have reached settlements after which they will be independently audited for 20 years because there were lax or dishonest about protecting the personal information of their users.

The IRS' Kim Boyack said hackers who obtain Social Security numbers use them to obtain fraudulent tax returns only to have the legitimate taxpayers later find out that a refund had been obtained with their Social Security number. She said the IRS is trying to discourage hackers by attaching an extra layer of security coding to future returns filed by taxpayers who have been victimized by identity theft.

Go to http://www.irs.gov/uac/Identity-Protection and http://www.consumer.ftc.gov/features/feature-0014-identity-theft to learn more from these agencies on how to protect against identity theft and what to do if it happens.

Public counsel urges trimming PacificCorp rate increase request

State attorneys have recommended trimming a rate increase request for the electric utility that serves 132,000 customers in Yakima, Walla Walla and two adjoining counties.

The Attorney General's Public Counsel division found PacificCorp's request for higher rates to be excessive. It recommended that a request that would generate $42.8 million in new revenue be reduced by $23 million.

An outcome will not be determined by state attorneys but rather the state Utilities and Transportation Commission.

"We are concerned about the proposal to dramatically increase customer reconnection fees imposed when a customer seeks to be reconnected after being disconnected for non-payment," said Assistant Attorney General Lisa W. Gafken. "The increase is double or more than double the current charge, depending on the specific fee. These fees are generally borne by the most vulnerable of PacifiCorp's customers, and the Company's proposal would unnecessarily burden these customers, making reconnection more difficult."

The AG also recommended that the utility reduce labor costs and adjust the pay of executives to better match market averages. Visit Attorney General to review an announcement about its request to trim the rate increase.

PacifiCorp will have an opportunity to file rebuttal testimony addressing Public Counsel and other parties' recommendations.  Hearings will be held in late August, and a Commission decision is expected no later than December 2013.

Members of the public can comment on the rate case in a number of ways.

The UTC will hold two public comment hearings:

• Yakima:  Monday, July 15, 2013, from 6:00-7:30 p.m., in the Yakima City Council Chambers, 129 North 2^nd Street, Yakima, Washington. 
• Walla Walla:  Tuesday, July 16, 2013, from 12:00-1:30 p.m., in the Walla Walla City Council Chambers, 15 North 3^rd Avenue, Walla Walla, Washington. 

Written comments may be sent to UTC, P.O. Box 47250, Olympia, WA, 98504, or e-mail comments@utc.wa.gov. Include your name and mailing address, the name of the company (PacifiCorp), and docket no. UE 130043.

For more information, customers may contact either the UTC or AGO:

• UTC:  (800) 562-6150, e-mail at comments@wutc.wa.gov. Information is available online at www.wutc.wa.gov. Enter docket no. UE 130043.
• AGO Public Counsel Divison:  Public Counsel, Attorney General's Office, 800 Fifth Avenue, Suite 2000, Seattle, WA 98104-3188, or e-mail utility@atg.wa.gov.

Tacoma chamber needs feedback on business threat

A grassroots organizing effort has been identified that is trying to pass a Tacoma law to require businesses to offer paid sick and safe leave time to employees.

A similar law in Seattle, the only one of its kind in the state, has proven to be an expensive record keeping nightmare.

WRA is cooperating with the Tacoma-Pierce County Chamber of Commerce to inform businesses about this proposal and solicit comments regarding the burdensome financial impacts it would bring if passed into law. Contact Mark Johnson, VP of Government Affairs, for more information at 360-943-9198, Ext. 15 or mark.johnson@retailassociation.org.

WRA members may contact Tom Pierson, President & CEO of the Tacoma-Pierce County Chamber of Commerce for more information, at 253-627-2175. Also, visit the chamber's website established to solicit testimony opposing the idea.

Tacoma city council members have received many calls of concern from the Tacoma business community and have publicly expressed concern about the idea.

WRA opposed the Seattle law on several fronts. It is expensive to administer and leaves room for abuse that can be damaging to businesses that need to remain adequately staffed to serve customers.

Look for updates on this issue in future WRA newsletters.

Watch video overview of WRA's discount shipping partner

WRA's third-party shipping provider, PartnerShip, has released a short video overview of the discount services it offers customers.

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

Four other possible advantages of joining PartnerShip 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.

*Improved inbound shipping. By relying on vendors to control your inbound shipping, it can be difficult to learn how and when your orders will be shipped and delivered. You can gain that knowledge by arranging shipping through a third party partner such as PartnerShip.

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

Click here to watch the video overview of the company and obtain contact information. Also, visit PartnerShip's website and its improved, separate shipping website.

Two state attorneys have authored as essay on the serious consequences to small business from price fixing. Please read and heed the advice.

Price fixing:  Why it matters to you

By attorneys Brady R. Johnson and David Kerwin, Antitrust Division, Washington AGO

"Antitrust" conjures up visions of complex cases against large, monopolistic corporations.  This is certainly true in some cases, but it is important for small business owners to recognize that they can also violate antitrust laws.  These violations can be inadvertent, and based on a misunderstanding of what antitrust law prohibits.  To avoid such misunderstandings, this article explains some of the fundamentals of antitrust law and how it applies to small businesses.

Antitrust law is intended to protect competition, rather than particular competitors.  It is based on economic theories that have been refined over the course of more than a century's experience.  One of the principle antitrust violations is price fixing, defined as an agreement between competitors to set, or "fix" prices and thus avoid the rigors of competition.  Price fixing among competitors, or "horizontal price fixing", is a per se antitrust violation.  A per se offense is one that is automatically illegal - there is no valid defense to it.

Price is a key element of competition.  Competitors who agree not to compete on price are automatically, or "per se" deemed to be harming competition.  It does not matter whether the conspirators are a couple of small taco stands competing for business in a 4 block area, or larger companies that operate across many states.  Agreeing not to compete on price violates Washington's Consumer Protection Act, which can result in substantial civil penalties, restitution and injunctions.  It also violates the federal Sherman Antitrust Act, which can subject an offender to triple damages and felony criminal charges.

As a business owner, you may find yourself in many situations in which you are working with or otherwise engaging with your competitors. For example, competitors might belong to the same trade organization, attend the same trade shows, or might simply be in frequent contact given the nature of their business. While it might be advantageous for you to discuss elements of your business with one another, it is important to avoid any agreement, implicit or explicit, regarding pricing or anything that directly affects pricing such as volume, inventory and supply. The appearance of collusion can lead to investigation by state and federal enforcers. Along the same lines, competitors should be cautious to avoid any agreements concerning allocation of markets or output restrictions. Whether a particular act is reasonable under the antitrust laws can vary based on the facts of any given situation. It is always advisable to consult an attorney knowledgeable in the field of antitrust law if you have any question as to the legality of certain practices.

Here are some examples of price fixing behavior that should be avoided.

• Agreeing with a competitor to set a specific price for a product or service.
• Agreeing with a competitor to keep prices for a set of products or services within a certain range, or above a certain amount.
• Agreeing with a competitor to share future pricing information, important cost information, or any other proprietary information that affects price.
• Agreeing with a competitor to price goods or services in a manner that allocates, assigns, or splits up markets.

Price fixing is just one example of antitrust laws which all business owners should be aware of. The Attorney General's office is available to the public to answer questions on this, and other antitrust issues.  You can learn more, ask questions or file a complaint about a business practice at the web site at http://www.atg.wa.gov/antitrust.aspx.

Two steps to reduce workers' comp costs

Labor & Industries reminds businesses of two current solutions to speeding workers' comp claims to conclusion while reducing the related costs.

The Stay at Work program pays up to $10,000 or 66 days of wages, whichever comes first, to employers who make light-duty or transitional jobs available to injured workers.

Also, the state's online injury reporting system, www.FileFast.Lni.wa.gov  holds down costs and speeds claims by five days. Early information leads to better communication and return-to-work options before the worker is eligible for time-loss benefits, L&I reports.

Since beginning the Stay at Work program in January, 2012, the state has reimbursed about 1,800 employers with over $13 million in wages and expenses to support more than 5,800 injured workers in light-duty jobs. L&I hopes to grow the program to serve 8,000 workers and save $32 million a year in annual workers' costs.

For more information, go to www.WorkingSolutions.Lni.wa.gov. 

New prescription law takes effect this week

A new state law takes effect Friday that changes how certain prescription drugs must be administered.

As a result of Senate bill 5416, all Schedule III through V controlled substances must be dispensed following a written, oral or electronic prescription. A state code in effect through Thursday has allowed dispensing of certain Schedule V substances without a prescription.

To learn more, consult the bill or contact the Board of Pharmacy at 360-236-4700 or through hsqa.csc@doh.gov. 

Safety tip: (one in a series)

Guidelines for protective equipment

A job that may seem safe would be safer if a company and employees assigned and used protective equipment.

To avoid judgment calls on whether protective equipment should be provided, Labor & Industries has posted a checklist or workplace assessment form to help employers decide whether protective equipment is in order.

Helmets should be provided if your employees work near beams, pipes or falling objects. Drilling, sanding, welding or hammering might call for safety goggles. Activities such as building maintenance or plumbing might call for safety shoes or slip-resistant soles and employees who are baking or frying foods should consider gloves or an apron to protect against cuts or spilling cooking grease on the skin.

These are just some of the examples addressed in the hazard assessment analysis posted on L&I's website. The site includes sample safety policies and a training quiz to help managers decide how best to comply with state work rules.

WRA employs Maria Justin as a safety advisor. She is available to WRA members to schedule workplace safety visits or to share advice on organizing a safety plan or listing discussion topics for safety meetings. Contact Maria at 360-943-9198, Ext. 21or at maria@retailassociationservices.com.