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

Washington Policy Center health care conference reveals state challenges

By Jan Teague, President/CEO

A bare bones online health insurance application will be ready by October 1^st.  It's called the Health Plan Finder. According to Exchange Board member Steve Apple, a past president of the state's Farm Bureau, the system's main problem is coming from Washington, D.C. which isn't giving states the guidance they need to operate. 

The state has hired 60 people to run the call center plus 20 part timers to help during October through December when they expect to have 450,000 calls.  Apple told conference attendees that they have a $6 million dollar budget just to do education for the program. 

There are other problems, too.  Most notably is the way self employed people will have to report their income from the prior year to establish eligibility for any rate subsidy.

There is no real small group market for small business except in Clark and Cowlitz County.  Apple hopes that will change by next year but it will only happen if the health insurance companies submit a plan to the state.  That may not happen.  There was talk about small businesses getting a tax credit if they go through the exchange to cover their employees.  The credit comes in the following year after coverage.  But the tax credit program will only exist in the 2 counties that offer plans to small business, Clark and Cowlitz.

There were a lot of health insurance agents attending the conference voicing concerns that there is not enough information being given to the public that agents can get help with enrollment.  There are 130,000 licensed agents in the state.  One agent asked how COBRA would work, but no one seemed to know. 

In the big picture, one speaker, Dr. Karen Summer, believes that lots of people won't participate at all.  They want quick service and an opportunity to communicate with their doctor.  And, she noted that if the plans are over-regulated, the doctors won't participate.  Dr. Summer told conference attendees that the price for service will be impacted by government. She told the story of what happened in Tennessee where the benefits were so rich that costs soared and crowded out funding for education.  They had problems paying the doctors, so they stopped taking patients.   In the end, the state had to reduce benefits to make their program work.

Thirty-four states refuse to implement the Affordable Health Care Act. That means that 2/3 of the money set aside to subsidize people's health care won't be available.  So how will people afford to buy insurance when it is mandatory?  The question creates a great deal of vulnerability for the Affordable Health Care Act (ACA) to be repealed. 

In those 34 states there are 68 Senators who might vote to repeal the ACA.  There are already 2 lawsuits demanding to know how it is legal for the IRS to charge people who don't buy coverage a penalty. The penalties escalate each year; in 2014 it's $95; in 2015 it's $325; and, in 2016, it's $695. 

At this point, there is not much that the Washington State legislature can do to improve our situation.  According to one speaker, it would help to reform medical malpractice laws, liberalize the scope of practice laws for doctors, and allow clinics in pharmacies. 

2013 legislative session concludes June 29

By Mark Johnson, VP Government Affairs

This year's legislative session concluded on Saturday. It was the longest combined session in our state's history.  The final product was a $33.6 billion operating budget.  Legislators will return in six months for the January start of the 2014 session.

I am delighted to report that retailers in Washington State came out relatively unscathed. 

Chief among our worries were massive tax proposals including a B and O tax extension, a bottled water sales tax, a beer tax extension and repeal or alteration of the non-resident sales tax exemption, to name a few.  Fortunately, due in part to WRA members' grassroots efforts, the legislature decided not to move forward with the tax proposals.  A healthy revenue uptick in mid-June helped alleviate the desire to raise additional taxes. 

The sad part of this is that we will likely be fighting the same battles the next couple of sessions.  With the State Supreme Court mandate, that the legislature fully fund K-12 education, there simply isn't enough revenue to satisfy the spending desires.  Estimates are anywhere from $1 billion for next year on up.  Also making it more difficult to stop these tax increases is the Supreme Court decision tossing out the 2/3 super majority requirement to raise taxes.  All that is needed now is a simple majority.

WRA will continue to advocate that the state live within its means.  Retailers are still struggling to come out of this recession and increasing their and their customers' tax burden will only slow the recovery.

Links to state budget documents, vetoes

After two overtime sessions and 153 days of meeting, one couldn't be faulted for having their fill of state budget debates at the capitol.

Nevertheless, the finished products of the 2013 legislative session are public documents available for review by those affected by them or simply interested in reading further.

To save space, we live in a world of computer links to the full documents.

Click here to read the entire 481-page budget document adopted last weekend. Click here for a summary of the highlights.

For those interested in a summary of Gov. Inslee's objections or vetoes of requests, click here.

Due to the prolonged nature of this year's session, Inslee has until July 22, three weeks into the current fiscal year, to decide what action to take on bills awaiting his signature to adopt into law.

WRA's annual report of votes by the entire Legislature on key bills of interest to the retail industry is currently being assembled for distribution to members in the coming few weeks.

Employer health care penalties delayed a year

On Tuesday, the Treasury announced that the employer responsibility mandate to provide coverage as part of national health care reform would be delayed a year from this coming January.

The Affordable Care Act requires employers with 50 or more workers to provide coverage to their full time employees or face fines. Business groups had been warning that the Obama administration was slow in issuing compliance rules and that the requirements were too complicated and cumbersome.

The National Retail Federation last week asked for a one-year delay in implementation.

"We commend the administration's wise move," said Neil Trautwein, an NRF vice president. It "will provide employers and business more time to update their health are coverage without threat of arbitrary punishment."

The delay does not affect a requirement that beginning in January, 2014, individuals carry health insurance or face fines. After a legal challenge, the U.S. Supreme Court decided the individual mandate was constitutional.

Like the NRF, WRA opposed the act and supports its repeal. The delay moves company requirements past 2014 Congressional elections while some candidates and members of the U.S. Senate and House continue to call for repeal of the act.

Muri selected for vacant House seat

Former Pierce County Council member Dick Muri has been unanimously selected by the County Council to fill a vacant seat on the state House of Representatives.

Muri will represent the 28^th District, taking the seat formerly held by Steve O'Ban. O'Ban left his House seat to fill the district's vacant state Senate seat earlier this year following the death of Republican Sen. Mike Carrell.

Muri will fill O'Ban's former seat for a year and a half until an election in November of next year. He beat two other candidates for the selection. A Steilacoom resident, Muri is a retired Air Force officer who bills himself as a fiscal conservative. 

Source: The News Tribune

SeaTac hearing next week on living wage and sick and safe leave

The SeaTac city council next week is expected to conduct the first of what could be two public meetings on a proposal to significantly raise wages of hospitality and transportation workers and require paid sick and safe leave.

WRA opposes the union-backed proposal and urges members to attend a scheduled July 9 study session and a city council meeting related to this proposal. City Clerk Kristina Gregg said the council expected to discuss the issue at next week' study session.

Jan Teague, WRA President/CEO, has written a letter to Mayor Tony Anderson and City Council members outlining her objections to the proposal, made in the form of signatures on a petition. The council can choose to adopt the proposal or allow it to advance to a ballot referendum in November.

Teague has asked the council to refrain from taking action to allow the public at large to vote on the proposal.

It calls for spiking minimum wages by 60 percent. The ordinance, Teague writes, raises prices, puts SeaTac businesses at a competitive disadvantage with other cities and threatens layoffs and business closures due to the added costs. She noted that the state already has the nation's highest minimum wage and cannot risk exaggerating expenses by 60 percent.

Tuesday's study session begins at 4 p.m. in the City Council Chambers, Room 15, SeaTac City Hall, 4800 South 188^th Street. Click here for more information about a possible follow up meeting. 

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 by speeding 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. A site for employers to file is here.

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.

Health care compliance webinar set next week

Members of the National Retail Federation are invited to attend a webinar next week on getting ready for 2014 requirements of the Affordable Care Act.

Neil Trautwein, NRF's Vice President and Employee Benefits Policy Counsel, will moderate the presentation. He will cover considerations companies must review before deciding the level of coverage to offer employees when the law goes into effect next year.

The one-hour webinar will begin at noon, West Coast time, on Wednesday, July 10. Click here to register.

Source: NRF 

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.

Safety tip: (one in a series)

How to avoid slips, trips and falls

Some of the most common retail injuries occur from slips, trips and falls.

That ignored grease spill can contribute to a nasty fall. So can wearing spiked heels in a hair salon with an impressive polished but slippery floor. And a stray power chord strung across a hallway never fails to trip a distracted, hurried co-worker and send him or her tumbling to the floor.

Labor & Industries offers two quick online courses that can help a business get up to speed on everything to consider about preventing slips, trips and falls. The courses cover a range of considerations from improved housekeeping to wearing appropriate shoes and learning how to fall if there is an accident.

Modules 1 and 2 in L&I's training materials also include links to additional resources dedicated to avoiding these common retail mishaps. For general information about falls related to specific work environments, click here.

State law requires companies to enforce accident prevention programs.

WRA employs Maria Justin as a safety advisor who is available to members for workplace safety visits or to suggest how to organize a safety plan and list ideas to discuss at safety meetings. Contact her at 360-943-9198, Ext. 21 or at maria@retailassociationservices.com.