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

Rep. Kilmer receives Main Street Award

By Jan Teague President/CEO

I had the opportunity to recently meet with Congressman Derek Kilmer at his Tacoma office to thank him for his work on Main Street Fairness (online sales tax collection).  Our partner, the National Retail Federation, is giving awards to those elected officials who have been working on the issue and offered to let me deliver some of them.  I jumped at the chance to meet with our delegation.

Congressman Kilmer told me that it was his first award since being elected to Congress last year.  Congressman Kilmer had voted in support of the issue and is very aware of its importance to retailers and to our state's ability to collect sales taxes.  He was very pleased with the Main Street award because he has always been pro- business in his political and professional work.  He told me that he is working in two different Congressional groups with moderates and is trying to figure out how to get things done, although he, too, is frustrated with the lack of progress.  He doesn't see a near-term solution and expressed a great deal of frustration with the lack of progress.

WRA also is arranging similar commendations for delegation members including Senators Patty Murray and Maria Cantwell, and House members Rick Larsen, Adam Smith and Suzan DelBene.

You may have noticed that this week the U.S. Supreme Court turned down reviewing the online sales tax collection issue saying that it was Congress' responsibility to settle the matter.  All of our national association partners have been responding positively to this news and believe it will help. Had the Court taken up the matter,  it would have only delayed any Congressional action until a court decision was made. 

While both Democrats and Republicans have given support to the issue, the Republican-controlled House does not have enough conservatives on board.  They think it is a tax "increase."  It is really tax avoidance because taxpayers are required by state laws to be reporting and paying these sales taxes.  People never do pay and, in fact, love avoiding sales tax.  When you think about it, it's almost like Congress telling taxpayers that the way around paying taxes is to shop online.

Brick-and -mortar retailers will keep working on the issue because the unfair tax advantage for online retailers is becoming more and more apparent.  In the past few years online sales have grown from 2 percent to 13 percent of total holiday sales.  Congressional leaders have to face the new reality of how technology is changing consumption patterns.    

If they don't, we're going to see a deterioration in our cultural standard of living from which it could take decades to recover. We are all impacted when sales taxes don't pay for the community services we expect.

Preparing for the 2014 Legislative Session

By Mark Johnson, VP Government Affairs

As the New Year approaches, WRA is rapidly gearing up for the 2014 Legislative Session that begins on January 13.  This year is a "short" session to last only 60 days. 

The House of Representatives will still be controlled by the Democrats and the Senate will still be under the Majority Caucus Coalition, plus a new member, Republican  Jan Angel, who was successful in her special election efforts.  The Governor's office remains occupied by Democrat Jay Inslee. 

The legislature will tweak the current operating budget that was approved last session and lasts for two years or, as we call it, a biennium.  All bills that were introduced last session that failed will automatically be up for consideration in 2014. 

Bills have a 2-year lifespan.  This can be a double -edged sword.  Bills WRA wanted to pass, such as a sales tax holiday for back-to-school items, have another chance.  Bills we wanted to fail such as destroying the independent contractor regulations balance will also be up for consideration.  Additionally, new legislation can be introduced.  All told there will be somewhere in the neighborhood of 2,500 to 3,000 bills to review and consider.

Lawmakers, associations and stakeholders are rapidly putting the finishing touches on new and revised bills.  Bills can actually be pre-filed to give them a little head start.  The real challenge is getting the chairperson of the committee that your bill will go through to schedule it for a hearing and then hopefully, a vote.  With so few days to hold hearings and votes, most of the 2,500 plus bills won't get much if any attention.

The one wildcard with the upcoming session is whether it actually will adjourn in 60 days.  If the Governor feels like the legislature has not completed its business,  he has the power to call legislators back for an additional 30 days of meetings.  While the Governor can suggest what they work on, he cannot set the agenda for legislators. 

This means anything goes. Bills that died or were never seriously considered can be resurrected.  New legislation that has never been seen before can be introduced.  Basically, anything can happen, good, bad  and indifferent as long as the legislature is in town. 

With this in mind, legislators have an incentive to finish their work on time.  2014 is an election year with all the House members and many Senators up for re-election.  They can't raise money or effectively campaign while they are in session. 

My hope is that pre-session state revenue forecasts will be robust enough to alleviate the pressure to raise additional revenues by increasing taxes or eliminating tax incentives.

L&I announces workers' comp insurance rate increase

For the first time in three years, Labor & Industries has announced an average 2.7 percent rate increase in 2014 workers' comp insurance premium rates.

L&I noted that individual employers could see rates go higher or drop lower depending upon recent injury claim histories.

Click here to review rates changes by industry. Also, WRA invites companies to use a calculator on its website to figure how rates might change.

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. This will open a worksheet to perform a rate calculation. Once at the worksheet, simply type in the numeric code inside the "risk class" box for your type of business and the calculator will determine changes in rates. You may be asked to "enable editing" before the calculation can be completed.

During the most recent recession, L&I temporarily froze premium rates. But for next year, L&I Director Joel Sacks said the $55 million in additional revenues from the rate increase would be used to build back a workers' compensation financial reserve fund.

WRA has consistently backed legislative reforms to curb workers' comp expenses to ensure the financial security of members.

Court hearing upcoming as recount continues on Proposition 1

A Dec. 13 King County court date has been set on a legal challenge to SeaTac's Proposition 1 while elections officials continue recounting votes from last month's vote.

County elections officials reported that the measure to raise some SeaTac minimum wages to $15 has passed by 77 votes, 3,040 in favor to 2,963 opposed.  If the union-backed measure becomes law, it would spike the state's highest-in-the-nation minimum wage by 63 percent.

WRA was part of business coalition opposed to the proposal, which would force SeaTac airport business to either close of lay off workers to compensate for the significant rise in expenses. WRA also was concerned about the high administrative costs for the city and how such a law would discourage companies looking to expand to SeaTac.

Prop. 1 also would put mandatory paid sick and safe leaves in place for SeaTac airport business and various surrounding support businesses such as car rental stores.

Opponents of the law, including Alaska Airlines and the Washington Restaurant Association, are seeking to declare the proposal as an illegal attempt to impose union contact terms. Labor unions are exempt from provisions of the proposed law. Click here to read a restaurant association account of the issue.

HR seminar tomorrow in Seattle

WRA members may obtain a discounted registration fee for tomorrow's Labor and Employment seminar hosted in Seattle by the law firm Lane Powell.

Click here to register of call 206-223-01227 or e-mail Jean Delovino at delovino@landpowell.com.

Topics to be covered include recent legal trends related to human resources, the Affordable Care Act and the effects of Seattle's criminal background check ordinance and same-sex marriages. The event is scheduled to begin at 7:30 a.m. in the Johnson Lobby Lounge of the Washington Athletic Club, 1325 Sixth Avenue in downtown Seattle.

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 YouTube 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 for support of 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.

Crowds up, spending slightly down on holiday weekend, NRF reports

Shopping crowds during the Thanksgiving holiday weekend were slightly up this year, but average spending declined, according to a survey conducted by the National Retail Federation.

The survey estimated that 141 million people shopped more than once on the weekend, up from an estimated 139 million last year.

Average purchases this year from Thursday through Sunday were $407.02, down from $423.55 last year. NRF attributed the decline to discounted pricing and more shoppers starting their holiday shopping before this past weekend.

The survey identified clothing, electronics, books and video games as among this year's most popular holiday gift items.

Click here for a complete breakdown of this year's holiday shopping trends. 

Blogger: I-517 defeat Eyman's worst ever

In a post-election commentary of initiative activist Tim Eyman's 14-year career in Washington, seattlepi.com's columnist and blogger Joel Connelly's termed the defeat of Initiative 517 Eyman's worst ever loss.

The measure that WRA opposed would have granted petition signature gatherers greater access to retail properties and severely compromised the private property rights of building owners.

Connelly noted that I-517 carried just eight of Washington's 39 counties. Among the places where it lost were conservative counties such as Lewis, Grant, Skamania and Douglas Counties where Eyman proposals have carried in the past.

Voters have approved eight Eyman initiatives and rejected six of his measures, Connelly reported. Click on Connelly to read his entire blog item.

Reshuffling in Legislature

Democrats were meeting this week to fill Legislature vacancies created after the November election and a state Senate resignation.

In one move, Rep. John McCoy, D-Tulalip, won Snohomish County Council approval to fill the seat of former Sen. Nick Harper, who resigned recently for family reasons. Six candidates have filed for consideration as McCoy's replacement in the state House.

Precinct committee officers also were to meet this week to review candidates to replace former Senator Ed Murray, who was elected Mayor of Seattle last month.

Look for a follow up report in this newsletter when replacements are identified.

Seattle energy reports due this week

Seattle owners of buildlings 20,000 square feet or larger are due this week to make reports to the city on their levels of energy use.

A city notice this week was that fines would be assessed this Friday for missing data for 2012 energy usage.

To confirm legal compliance or seek an explanation of procedures, e-mail the building identification, name and address to EnergyBenchmarking@seattle.gov. or call 206-727-8484.

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 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.

Safety tip:(one in a series)

Why safety meetings pay

There are several good reasons why companies should conduct periodic safety meetings.

They demonstrate that management is committed to maintaining a safe workplace. They afford an opportunity for employees to become part of the safety commitment. Meetings increase the numbers of eyes and ears looking out for ensuring a safer workplace. They extend ownership of the company's safety commitment to the employees.

Safety meetings also can be a good source of early warnings of unsafe conditions.

Rick Means, WRA's safety advisor, urges all members to take a few minutes to discuss the proper use of tools, the proper way to use a ladder or a piece of equipment put either to regular or infrequent use.  Very important is Rick's reminder to log a record of the meetings and topics discussed so that in the event of a Labor & Industries audit, your company can document action to promote safety. WRA sends out monthly safety packets that are available here.

If you need help planning safety meetings, contact Rick at 360-943-9198. Ext. 18 or at rick.means@retailassociationservices.com.

"We can't seem to say it enough, but having these meetings raises the employees' consciousness level about the work they are performing and to take the time to do it correctly, because taking a shortcut can often lead to an accident," Means said. "Please add safety in some way to your regular store or morning meetings. A safe shop is a more productive shop."