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@retailassociation.org

Jim Szymanski

Washington Research Council hears from Senator Andy Hill

By Jan Teague, President/CEO

At yesterday's Board meeting, Senator Andy Hill reviewed the radically different approach the Senate used for developing the state's budget this past session. 

The Senate's first step was to develop a set of principles that would be used to set the spending priorities. Jobs and education were key elements.  Twenty five senators signed it with the final budget outcome that added $1 billion to education with targeted program dollars going to kids that needed the help the most.  Rather than cutting higher education again, they got $18 million. 

This approach gave four times more money to education than non-education with a view that it would be a long-term commitment.  This was a very big deal.  The final budget had no tax increases, dealt with a $900 million deficit and was a four-year, not a two-year view of the budget.  The final vote from the legislature was nearly 89 percent yes, the most bipartisan budget in 20 years. 

Senator Hill, a Redmond Republican, still has concerns for next year's budget. They center primarily on our state's reliance on federal dollars, given the Federal deadlock.  We do have an increase expected for our state surplus but at the same time, we are far from the goal of having a 5 percent reserve on hand.  

Hill pointed out that there is still a state Supreme Court decision expected that would impact the pension liability and the legislature's future ability to manage state employee benefits.  A catastrophic outcome would be a $600 million dollar unfunded liability that the legislature would have to figure out how to pay for. 

Transportation funding is expected to be worked on prior to the 2014 session during the legislature's upcoming committee week.  Senator Curtis King has a proposal that would add 11.5 cents to a gallon of gas.  Many legislators believe that reforms need to be a part of the package and that the final agreement should go to the people as a ballot measure.

Prop 1 outcome awaits recount results, court case

The fate of SeaTac's proposal to spike many minimum wages in that city to $15 an hour hung this week on a vote recount and the outcome of a federal court challenge to Proposition 1.

WRA is part of a coalition of businesses opposed to the union-backed measure that would financially burden businesses located in SeaTac and the city government, lead to business closures and layoffs and discourage companies from expanding to SeaTac.

In recounting this week, Proposition 1 clung to a 43-vote lead stemming from last week's election.

In addition to the recount, several businesses have filed a federal court challenge seeking to declare the measure illegal.

It would raise the current $9.19 minimum wage to $15 but also extend mandatory sick and safe leave benefits to SeaTac Airport businesses and hospitality and car rental businesses in SeaTac. Alaska Airlines and the Washington Restaurant Association are among those companies or organizations challenging the proposition in federal court.

Prior to any court ruling, click on King County Elections to see final vote totals. Election results must be certified by Nov. 26.

Legislature approves deal to lure new Boeing airplane assembly

The state Legislature reached agreement during a special session last week on an $8.7 billion deal of tax breaks and other concessions to ensure construction of Boeing's 777X airplane in Washington State for years to come.

If machinists approve a long-term labor agreement in voting today, which is part of the Boeing package, they will receive a $10,000 signing bonus. According to Boeing sources, the company already has received several offers to move the new line out-of state should machinists reject the labor agreement.

The deal:

*Extends commercial airplane tax incentives until 2040 and expands the current sale and use tax exemption on construction of buildings to make airplanes.

*Expands state investment in aerospace education.

*Streamlines permitting actions that will speed development of 777-related facilities needed in the future.

Visit the Governor's website to read more details of the deal. Officials familiar with the deal estimate that 56,000 jobs statewide are directly and indirectly related to securing the 777X construction contract in Washington State.

WRA's support stems from the benefit of retaining tens of thousands of well-paid retail customers within the state.

State posts directions for retailers to collect E911 tax

The state has updated guidelines for retailers who must begin collecting an E911 tax on January 1 if they sell prepaid wireless phones.

Under the new law, retailers must collect the tax from the consumer and report it on their excise tax returns. The funds are to be used to maintain the state's enhanced 911 emergency telephone system.

For more details, go to the Department of Revenue website update. Revenue also has included an earlier notice about the new law's requirements.

WRA members with questions should contact Mark Johnson, WRA's Vice President of Government Affairs, at 360-943-9198, Ext. 15 or at mark.johnson@retailassociation.org. To contact Revenue on this issue, call 1-800-647-7706.

Shoppers elsewhere love tax-free weekends

By Mark Johnson, VP Government Affairs

So far, many Washington State shoppers have not felt the excitement and benefits of experiencing a sales tax free weekend.

It will take the approval of the state Legislature for such a promotion to be allowed in Washington.

Meanwhile, shoppers in other states have shared their excitement for the idea in a You Tube video produced for the Washington Retail Association, which favors establishing a tax-free weekend during the back-to-school shopping period. Click here to watch the short video.

Not only could our shoppers benefit. So would local and state governments from the additional revenues produced from the crowds eager to take advantage. Click here to identify your state legislators, then call or e-mail them and ask them to support a back-to-school tax-free holiday in Washington. You also may dial 800-562-6000 to leave a general message after identifying the legislators you're trying to reach.

WRA discourages imposing expensive computer security

The President has issued an executive order seeking to standardize computer security practices for government and private companies.

The National Institute of Standards and Technology (NIST) expects to outline a framework for the plan in February.

Meanwhile, companies, especially those that do business with government, are encouraged to review the proposal, available for review on WRA's website. The report includes a link for comments that NIST will accept through the close of business on Dec. 13.

WRA is concerned that the security standards would impose severe financial burdens on companies. There is no current plan to impose a financial penalty for non compliance, but estimates are that a small business could expect to pay between $10,000 and $20,000 to meet recommended security standards.

Please click on the WRA website to review an explanation of the order and to make comments.

NRF touts the value of joining a state retail association

Fresh from a recent national meeting in Nashville, the National Retail Federation is strongly urging retailers of all shapes and sizes to consider joining and becoming active in a state retail organization.

NRF sent several representatives to the Council of State Retail Association's annual meeting, where WRA was in attendance, and was favorably impressed with the presenters and range of issues addressed at the meeting.

Click here to read the commentary in a blog by Michael Cys, NRF's VP of State Relations and Political Affairs. NRF also lists state associations including WRA on its website. (link).

WRA offers members a host of benefits and lobbying representation in the state legislature and others levels of government that can prove invaluable. To learn more about WRA membership, contact Terry Hopsecger, Director of Business Development, at 360-943-9198, Ext. 24 or at terry@retailassociationservices.com.

RASI website offers rate calculator for 2014 insurance rates

WRA invites companies to use a calculator on its website to figure out proposed workers' compensation insurance rates likely to go into effect in January.

To access the calculator, go to www.retailassociationservices.com (Retail Association Services, Inc.) and click inside the red box that comes up on the page. Once at the worksheet, simply type in the numeric code inside the "risk class" box for your type of business and the calculator will generate how much rates to employers and employees are proposed to increase or decrease next year.

L&I is conducting public hearings around the state this month to take input before making a final decision on next year's rates. Click here to learn about times and locations for L&I's public hearings and how to submit written comments.

Website visitors do not have to be WRA members to use the rate calculator.

WRA will honor local delegation for sales tax reform support

WRA President and CEO Jan Teague is planning to personally award six members of the state's Congressional delegation for their support of national sales tax reform legislation.

Those elected officials to be honored with a Hero of Main Street awards have each demonstrated their support for the Main Street Fairness Act, which so far has won approval in the U.S. Senate. The act would require online sellers to collect sales taxes and create a fairer competitive economic environment for traditional brick and mortar stores.

WRA plans to deliver the awards in western Washington during upcoming Congressional recesses.

Those to be honored include U.S. Senators Patty Murray and Maria Cantwell; and Representatives Suzan DelBene, Derek Kilmer, Rick Larsen and Adam Smith.

The National Retail Federation, which created the award, honored 136 members of Congress earlier this year with the inaugural recognition.

HR seminar Dec. 5 in Seattle

WRA members may obtain a discounted registration fee for the Dec. 5 Labor and Employment seminar to be hosted in Seattle by the law firm Lane Powell.

Topics to be covered include recent legal trends related to human resources, the Affordable Care Act, the effects of Seattle's criminal background check ordinance and same-sex marriages.

The event, beginning at 7:30 a.m., will be held in the Johnson Lobby Lounge of the Washington Athletic Club, 1325 Sixth Avenue in Seattle.

Click here to register or call 206-223-1227 or e-mail Jean Delovino, delovino@lanepowell.com with questions.

State revenues running ahead of forecast

State tax collections for the month ending Nov. 10 ran 3.9 percent higher than expected, according to the latest update from the Economic Revenue Forecast Council.

The council reported that monthly tax payments from state retailers slipped to a year-over-year increase of 3.1 percent for the reporting period. They were up 4.6 percent year-over-year for the prior monthly reporting period.

Among the strongest monthly retail categories in the past month were electronics and appliance stores (up 8.3 percent compared to a year ago); drug and health stores (up 7 percent); and furniture and home furnishings (up 5.1 percent).

Two categories declined in the month: apparel and accessories (down 0.6 percent); and gas station and convenience stores (down 1.9 percent). The state report said overall retail results were dampened somewhat by a leveling off of liquor sales, which transferred from state to private sales in 2012.

Click here to review the entire state November revenue update. 

OSHA seeks new workplace injury reporting requirements

The Occupational Safety and Health Administration has proposed new electronic reporting requirements of companies where workplace injuries occur.

OSHA says its proposed rule is meant to improve workplace safety and health through the collection of useful, accessible injury and illness data to which it currently does not have direct access. In short, the proposal would amend current requirements by adding three new electronic reporting requirements.

The full posting of the rule, with new requirements for companies with 10 or more employees, can be found by visiting The Federal Register. 

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. 

WRA shipping partner offers prize sweepstakes

WRA members who sign up for shipping savings through PartnerShip, 

affiliated with WRA, will qualify for a prize sweepstakes through the FedEx shipping service.

Joining Partnership automatically qualifies a company to enter the contest. Also, each shipment through PartnerShip between Nov. 4 and Dec. 27 will qualify a company for additional contest entries, up to a limit of 50 entries.

Prizes include a $10,000 grand prize, a $2,500 first price and weekly drawings for $100 American Express gift cards. Click here to learn more about the contest and to enroll in Partnership.

As an enrolled WRA member of PartnerShip, companies can save up to 27 percent on select FedEx services.

Legislature sees two Democrat resignations

Two Democrat state Senators have resigned from the Legislature, one in the wake of last week's election.

Three days after his election as Seattle mayor, Sen. Ed Murray, D-Seattle, stepped down as head of the Democrat Senate caucus. The caucus appointed Sen. David Frockt, D-Seattle, to succeed Murray as an interim leader until Senators have time to pick a permanent leader for the 2014 session starting on Jan. 13.

On another front, the caucus' deputy leader, Sen. Nick Harper, D-Everett, resigned last week. He said his Senate duties were an excessive demand that kept him away from his two young daughters too much. The Snohomish County Council will choose Harper's successor.

Visit the Secretary of State to review other results from last week's election. 

Safety tip: (one in a series)

Assign "buddies" for new employee training

Finding enough time to properly train your new employees is always a problem. In the initial orientation there will be a lot to cover, paperwork to do and quick overview of the policies in a short period of time. 

But there is a way to continue the process; that's where orientation buddies come into the picture.

Every new hire should be assigned an orientation buddy to help him or her get off to a good, safe start. They can point out the safety elements the company has built in such as the location of the fire exits and extinguishers, first-aid kits, eyewash stations, MSDS (material data safety sheets) and equipment usage. 

In order to carry out these important duties successfully, orientation buddies should:

* Have been with your organization for at least a year.

* Have a good performance history and a safe work record.

* Be skilled in the new employee's job.

* Possess broad knowledge about your organization, operations and safety programs.

* Have the time to spend with the new employee and be willing to take on the assignment.

* Be patient and communicate clearly.

* Serve as a positive safety role model.

WRA employs Rick Means as a safety advisor to members. He's available for workplace safety visits or to help outline safety plans and to suggest topics for safety meetings. Contact him at 360-943-9198, Ext. 18 or at rick.means@retailassociationservices.com.