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What's going on in Congress?
By Jan Teague, President/CEO
Not much important has happened in Congress for over six years, according to Kimberly Strassel, The Wall Street Journal writer who was the keynote speaker at this year's annual Washington Research Council dinner. A number of our Board of Directors attended the dinner in Bellevue last Thursday night.
Strassel seemed impatient with the lack of substance in the debates that get framed for reports in the media. She didn't seem to think that all of the fuss over the budget was newsworthy or that any major issues had been tackled by the President. She did note that the country seems to be swinging back to being more conservative leaning.
Most of the moderate Democrats are gone with moderate Republicans taking their place and most of the tea party types are fading into the back ground. President Obama could very well find himself with a conservative Congress. Strassel noted that he will be forced to negotiate legislation that will flood into his office for signing.
I was struck by the fact that we spend a great deal of our time trying to get our issues addressed by Congress. Our streamline sales tax issue is a good example.
We have been working on that issue since 1998 when I first started my job here. Are we any closer to an agreement? I can't say that we are even though the technology is ready to easily collect the sales tax, a feature we didn't have going for us 15 years ago.
Part of the problem is the changing nature of the leadership. People retire, get defeated in office, the staff members who we work with change and new elected officials get assigned to the committees we work with. We start all over educating them on the issue.
One thing we know for sure. Congress moves very slowly.
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Seattle passes $15 an hour minimum wage amid controversy
Amid controversy including the threat of lawsuits, the Seattle City Council this week unanimously approved a $15 minimum wage that would take full effect in seven years.
According to the ordinance, companies with more than 500 workers will have to reach $15 by 2017; businesses with fewer than 500 by 2019; and small businesses by 2021. Most business will have to begin ramping wage up on April 1 of next year.
Some businesses will be allowed to count tips and benefits toward their wage requirements while others will be free to seek city certificates to pay lower-than minimum training and teen wages.
The International Franchise Association immediately threatened a lawsuit to overthrow the law because it counts local franchise owners as large employers because of their ties to national or global retail chains. This, the association argues, is discriminatory.
The 61 percent wage increase is on top of the current state minimum wage of $9.32, the highest such minimum state wage level in the nation.
Besides opponents of the ordinance, even some supporters acknowledged the bill would result in inflation (price increases) and decreased hiring opportunities for inexperienced job applicants. Some restaurant owners also predicted they would curtail growth and hiring plans due to the increased payroll requirements because of the ordinance.
Besides the threat of a lawsuit is a petition campaign to schedule a public vote whether to speed the phase in period to three years. Led by Councilwoman Kshama Sawant, the activist group 15 Now has not yet revealed whether it will carry through with plans for a public vote to amend the ordinance.
Despite its unanimous approval, passage of the wage increase divided the Seattle business community. See the Washington Policy Center for immediate reaction from those concerned about the law. The Puget Sound Business Journal also outlined the key elements of the ordinance.
Sources include The Seattle Times, Washington Policy Center, Puget Sound Business Journal
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Report: SeaTac workers lose benefits with $15 an hour wage
In the past week, Shift Washington, a conservative website (www.shiftwa.org) reported on an informal newspaper blog telling of ill effects from the $15 an hour wage increase granted to SeaTac hospitality and transportation workers last January.
The report quotes a NW Asian Weekly newspaper blog involving an anonymous conversation with two SeaTac hotel employees.
They told of losing health care benefits, access to overtime pay and free parking in response to the city's new ordinance requiring the $15 minimum wage.
Fears of similar unintended consequences preceded Monday's vote by the Seattle City Council to approve a phased in 61 percent minimum wage pay raise phased in over a seven-year period.
The shiftwa.org article includes an informal poll to gauge whether readers approve the $15 an hour minimum wage.
Source: shiftwa.org
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WRA thanks legislators who best supported retailers
Forty-four state legislators in the 2014 session voted completely in agreement with WRA positions on key bills of importance to retailers.
Of the bills WRA monitored during the session, some of those considered key included proposed employer mandates regarding sick leave, better managing unruly petitioners at store entrances, raising the minimum wage, workers' compensation reform and threats to valued tax incentives that promote retail sales.
The votes of those legislators who fully supported WRA's positions resulted in important outcomes that avoided any general tax increases and preserved a non-resident sales tax exemption that particularly benefits southwest Washington retailers who complete for business with sales-tax -free Oregon.
WRA President & CEO Jan Teague, Vice President of Government Affairs Mark Johnson, Vice President of Retail Services Tammie Hetrick and WRA's board of directors wish to thank the following legislators whose support was instrumental in the retail industry's successes in the past session:
In the Senate, legislators Jan Angel, Barbara Bailey, Michael Baumgartner, Randi Becker, Don Benton, Sharon Brown, Bruce Dammeier, Brian Dansel, Doug Ericksen, Joe Fain, Andy Hill, Janea Holmquist-Newbry, Curtis King, Steve Litzow, Steve O'Ban, Mike Padden, Linda Evans-Parlette, Kirk Pearson, Ann Rivers, Pam Roach, Mark Schoessler, Tim Sheldon and Rodney Tom.
In the House of Representatives, legislators Vincent Buys, Leonard Christian, Cathy Dahlquist, Susan Fagan, Kathy Haigh, Larry Haler, Dave Hayes, Mike Hope, Christopher Hurst, Brad Klippert, Linda Kochmar, Dan Kristiansen, Dick Muri, Terry Nealey, Joe Schmick, Shelly Short, Norma Smith, Brandon Vick, Maureen Walsh, Judy Warnick and Hans Zeiger.
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Controversy surrounds state insurance commissioner's office
A controversial insurance dispute in the Office of the Insurance Commissioner has resulted in a suspension of a department administrative law judge and an investigation of her claim that the office is improperly pressuring her to decide cases that agree with Commissioner Mike Kreidler's wishes.
The story began attracting media attention last month when an attorney for Seattle Children's Hospital received an anonymous e-mail outlining the complaints that the suspended law judge, Patricia Petersen, was receiving internal pressure on how to decide disputes.
Children's Hospital has been negotiating to be included in the state's health care provider network as part of the implementation of national health care reform.
Petersen has been put on paid leave and replaced temporarily by a former King County Superior Court judge.
Meanwhile, Kreidler's office is investigating Petersen's claim that Kreidler's chief deputy, Jim Odiorne, had allegedly pressured her to decide cases certain ways. Petersen has noted that her job description emphasizes her role as an independent judge in cases.
In a letter to Kreidler this week, Petersen said she inadvertently e-mailed a copy of her complaint to a Seattle Children's Hospital attorney.
The tangled controversy has prompted state Sen. Mike Padden, R-Spokane Valley, chairman of the Senate Law and Justice Committee, to schedule a June 16 hearing to further discuss and investigate what's going on. Padden, a former Spokane County District Court judge, said he hopes to identify whether any additional steps that should be taken to ensure the independence of judges working at the Insurance Commissioner's office.
To read the latest in a summary of developments regarding the issue, visit The Seattle Times.
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Chambers, manufacturers worry about federal carbon reduction plans
State plans also could raise prices, cost jobs
The U.S. Chamber of Commerce and the National Association of Manufacturers this week both expressed concerns about an Environmental Protection Agency draft rule calling for strict new regulations on the nation's fossil-fired power plants.
Officials from the chambers and manufacturers said the proposed regulations would be costly and burdensome, raise prices and damage the national economy.
Similar reservations also have been raised statewide in Washington in recent weeks as environmental moves being considered by Gov. Inslee could raise gasoline prices up to $1 a gallon from a possible executive order to curb carbon pollution.
Puget Sound Energy officials have told WRA that Inslee's interest in weaning the state off of dependency on electricity generated from coal-fired power plants in Montana and Wyoming threaten to increase utility bills by 5 percent in PSE's case.
WRA is keeping a close eye on these developments because they have a potential direct bearing on the retail industry. Spiking gasoline prices sap consumer buying power while soaring utility rates compromise the viability of businesses and lead to reductions in service and layoffs.
Click here to read a commentary by Sen. Mark Schoesler on the possible impacts of Inslee's environmental ideas and here to read the Associated Press report on considerations of cutting off coal-fired power to the state.
Sources: EPA, Kitsap Sun, Columbia Basin Herald
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Vehicle sales help lead economic rebound
Rebounding vehicle sales are the latest indicator of a recovering state economy, according to the state's May government revenue report.
The 287,700 vehicles sold statewide in April was a new post-recession high, according to the Economic Revenue Forecast Council's update. The prior post-recession high of 280,800 vehicle sales was in January.
Vehicle sales are among the few big-ticket categories including home sales that economists use as key indicators of economic health and recovery. Vehicle sales this year statewide are among the category leaders in an overall 5.4 percent gain in tax payments to the state from retail sales. The percentage gain in tax payments this year is 10 percent for vehicle sales.
Other highlights from the latest May report:
*State General Fund tax collections through May 10 of this year are nearly 2 percent higher than earlier forecasts, or $61.8 million higher than expected for the year to date.
*The March unemployment rate of 6.3 percent is down from 7.1 percent for the same month a year ago.
*Seattle-area home prices have continued rising the past two years. Prices have risen in each of the past 24 months. They were up 12.8 percent in February compared to February, 2013. Regardless, Seattle area home prices still have room to recover as they are 14.1 percent lower than their peak in 2007.
*For the April 11 to May 10 tax reporting period, retail sectors showing the highest gains were online retailers (up 17.3 percent); furniture and home furnishings (up 10.8 percent); and food and beverage stores (up 8 percent).
*Sectors that showed slight declines were in apparel stores (down 0.3 percent); and sporting goods, toys, books and music (down 0.3 percent).
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Walgreens introduces device to help blind or impaired customers
Walgreens has launched a nationwide program offering talking prescription devices that include an audible alarm to remind patients when to take medication.
The Talking Pill Reminder also can play recordings regarding the information on the customer's prescription medication label. It attaches to prescription containers and is provided free of charge to customers with prescriptions who are blind or visually impaired.
Walgreens also sells the device for $9.99.
Jeff Koziel, Walgreens' group vice president of pharmacy operations, said the Talking Pill Reminder can help blind and impaired patients to identify and take medication as prescribed. Click here to learn more about this product.
Source: Walgreens
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State releases tax rate change information
Revenue has released notices of sales tax rate changes for the upcoming third business quarter beginning on July 1 on its website.
Many of the changes have to do with businesses included in recent municipal annexations that could change their rates.
Click here for a list of all rate changes notices effective in July. To determine if a business is affected by new rates, Revenue provides a lookup tool, which works by typing in an address, after clicking here. Questions or comments regarding the websites may be addressed to GIS@dor.wa.gov.
Source: Revenue
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New complaints about state's online health exchange
The latest round of complaints about the state's health insurance exchange involves customers whose insurance carriers have not properly received payments that were sent.
A spokesman for the exchange explained that computer software problems were at fault.
The latest of several complaints were contained in a letter to the exchange from the Association of Washington Healthcare Plans, an alliance of health maintenance organizations and health service contractors. The letter listed five service problems, affecting some 25,000 people, including:
*Delays in sending premium payments to insurers
*Incomplete payment files sent to insurers
*Failure to transmit termination files
*Inaccurate or missing invoices
*Improper dual eligibility for some users for exchange plans and Medicaid
The association called on state officials to resolve the issues before the 2015 open enrollment period that begins in November. Click here for further details.
Before the exchange's first open enrollment period ended in March, it faced other problems. These included 15,000 "stuck" applications resulting from processing snags and long delays in answering or returning calls to the exchange's telephone banks set up to help new customers.
Applicants needing help can contact the customer support center, 1-855-923-4633, Monday through Friday from 7:30 a.m. to 8 p.m., or at customersupport@wahbexchange.org. For further help, contact the Office of the Insurance Commissioner, insurance consumer hotline, 800-562-6900.
Sources include Associated Press, Seattle Times
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Safety tip: (one in a series)
Address distracted driving with company policies
The National Safety Council recommends that companies enact cell phone use policies that apply to all employees.
Estimates are that one in 10 motorists is distracted in at least one way including eating, reading, using a navigation system or using a cell phone while driving. The accidents that can result from such distractions led to a law making hand held cell phone use and texting while driving illegal in Washington State.
Driving accidents cause time lost on the job, increased insurance rates and down time for company vehicles. Owners of companies with delivery drivers should explain the dangers of distracted driving and enact policies to prohibit it.
The National Safety Council recommends that employees make their calls in the parking lot before they leave work or at rest stops but not while driving. The council has created a series of short videos that answer common questions about cell phone use and driving. On RASI SAFETY TV, there is a playlist of these videos.
The videos make for a great topic for a company safety meeting. WRA safety advisor Rick Means advises showing the videos with discussions between showings.
Rick is available to members to help draw up safety plans and suggest other topics for safety meetings. Contact him at 360-943-9198, Ext. 18 or rick.means@retailassociationservices.com
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State tourism call center established
The Washington Tourism Alliance has launched a toll-free call center for visitor information and help.
The ExperienceWA call center is open seven days a week, from 8:30 a.m. to 5:30 p.m., at 1-800-544-1800. Exceptions are on Thanksgiving, Christmas and New Year's Day.
Visitors also can e-mail the center at tourisminfo@watourismalliance.com to answer travel planning questions. The operation is supported by a grant the state received last year.
The state tourism industry established the non-profit alliance after the legislature eliminated tourism funding. Visit www.watourismalliance for more information.
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Shippers save thousands of dollars with WRA partner
Shipping customers saved an average $3,100 in 2013 by shipping with PartnerShip, a partner with WRA.
Enrolled WRA members can save up to 27 percent on select FedEx services.
WRA encourages all members to explore this service. Visitwww.PartnerShip.com/99WRA to enroll. Shipping customers with further questions are encouraged to call Partnership at 800-599-2902 or e-mailsales@PartnerShip.com. You also may click here to receive a free rate analysis to help with your shipping decision.
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Help elect pro-retail candidates by donating to the PAC
By Mark Johnson, VP Government Affairs
The election season is upon us. This is an important year with all of the state House members and half of the state Senate up for election.
WRA's Retail Action Council Political Action Committee, or as we call it the RAC PAC, will be a major player in helping elect pro-retail candidates to the legislature. Our process is very involved and thorough to ensure the greatest chance for success.
First, we are diligently working on a voting record for all current members of the legislature. We select approximately 10 bills per chamber that we were involved in and score the legislators on whether they voted with us or sponsored something we liked or didn't like. We then combine the 2014 scores with the 2013 scores for a biennium or two-year total. This gives a better representation of the legislators overall support or lack thereof. Once the voting record is done the RAC PAC will make its first round of endorsements.
Surveys will be sent to all candidates who don't have a voting record and who have filed to run for the legislature. After scoring the surveys we will decide which candidates to interview based on their scores and the viability of their districts to elect them. Recommendations will then be sent to the RAC PAC for consideration of endorsements and contributions.
RAC PAC contributions are very important to help the pro-retail candidates to get the word out. Yard signs, letters, websites, radio, bill boards and TV all cost money. A contested House race can run anywhere from $100,000 to $300,000 and an average Senate race can cost upwards of $500,000.
Individual donation limits to candidates this year are $950 per election, so for the primary and general you can give $1,900. Contributions to PACs are unlimited. We can also accept corporate dollars.
In order to secure a pro-retail legislature it is critical that contributions to the RAC PAC be made. If you are in a position to donate please mail a contribution made out to: The Washington Retail Association Retail Action Council PAC, P.O. Box 2227, Olympia WA 98507-2227. We appreciate all of the WRA members who have already donated.
If you would like to discuss giving opportunities please give me a call directly: 360-943-9198 , Ext. 15 We appreciate your serious consideration of this very important component of our political program.
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L&I to conduct hearings on penalty revisions
Labor & Industries has scheduled three June public hearings to discuss changes in how it calculates penalties for safety violations.
The hearings are being held to ensure that Washington State penalty calculations mirror recent changes in the way federal officials at the Occupational Safety & Health Administration calculate penalties.
Company safety representatives are encouraged to attend one of the following hearings:
* June 17, at L&I's Tukwila Office, 9:00 a.m. to noon.
* June 19, Enduris Traiing Facility in Spokane, 9:00 a.m. to noon.
* June 24 at L&I's HQ in Tumwater, 9:00 a.m. to noon.
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Spending on graduation is healthy this year
The $4.7 billion expected to be spent on graduations this year is the highest amount in the nine-year history of the annual National Retail Federation survey.
This year, the survey concluded the average person will spend $97.79 and will shop for two graduates. Cash was reported to be the most popular gift among 56.8 percent of those surveyed.
This and other national consumer trends are included on the NRF's newly redesigned website, https://nrf.com/.
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