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

Board of Directors makes strides at retreat

By Jan Teague, President/CEO

The Board of Directors met recently for two days to discuss strategic planning and key issues for the association.

This year the results of our membership survey indicate the minimum wage issue is now on the top of everyone's worry list.  The Board discussed the importance of keeping a moderate Senate in place to make sure that any state measures that attempt to raise the minimum wage are kept from the Governor who would be sure to sign whatever crossed his desk. The issue is still in flux as we have previously reported with the potential that Tim Eyman may have enough signatures by the end of the year to get a measure on next year's ballot that would pre-empt local governments from having a higher minimum wage from the state's minimum wage.

The Board approved the hiring of a second government affairs staff member to help with all of our issues including help with local government.  They also approved the association forming a local Seattle political action committee so we may become more engaged in issues impacting our members in Seattle.  Next year will be a key year for Seattle Council members who will be running for the first time by geographic districts.  Over the past several years the labor laws and lack of attention to retailers concerns by the Seattle Council has become an extreme frustration.

The Board would like to have representation on the council that will spend time on understanding how retailers operate and our customers' needs.  We need the city to take steps that support our retail concerns.  For instance, the downtown area is littered with people sleeping on the streets, creating a very unhappy customer who is apprehensive about shopping in downtown.  This issue needs resolution and an advocate for economic vitality and how that happens, not just advocates for the homeless and how that happens.  We hope to bring the association's voice to the table and have genuine responses that work as a result.

The Board also heard from two of our key partners, Enterprise Washington and the Washington Research Council.  Enterprise Washington spoke of its work on this year's elections and the Washington Research Council gave us an overview of the challenges and opportunities to fund education, a high priority issue for next legislative session.

There is a lot of good news to share from the Board meeting including our success giving refunds to members enrolled in the Retrospective Rating Program (RETRO).  The Board appointed Charlie Extine, owner of Industrial Tire, Madelin White, owner of Merle Norman Cosmetics, Wigs and Day Spa, and Rick O'Connor, owner of Referee Photo to serve another one-year term as the governing Board for Retro and our services subsidiary. 

The Board learned about the advances the association has taken in data security.  We now have a higher degree of security than any other association or claims management service in the country. This move has made a significant difference in our enrollment and members have been very pleased with the new secured reports they receive on the details of their claims. 

The Board spent a great deal of its time getting briefings on key legislative issues.  Next year is expected to be a full calendar loaded with new bills.  Everyone anticipates a long session given the mandate to fund education at a higher level and the Governor's agenda for such issues as climate change.

More doom and gloom for the state budget

By Mark Johnson, VP Government Affairs

Recently I met with our state economist Steve Lerch, the governor's budget writer David Schumacher,  the House Democrat budget lead Rep. Ross Hunter and the GOP lead, Rep. Bruce Chandler.

I left the meeting feeling depressed.   Our state is facing some unprecedented financial challenges.  Come January,  the Governor and Legislature have to somehow come up with an extra $2.2 billion to $3 billion.  To compound the issue, if the class-size reduction initiative passes (which I think it will) - it has no funding source - the legislature needs to find another $2 billion per year!  Add it altogether and you are looking at a $5 billion hole.

The state's  revenue continues to grow, over 8 percent or an additional $2.5 billion.  The problem is that caseloads and inflation and healthcare costs are growing faster.  Our economy is growing slowly. Consumer confidence is up, which is always good for retail and a state driven by sales tax receipts.  The Seattle economy continues to grow faster than the rest of the state.

So what are some of the options to creatively address this potential shortfall? 

None of them is particularly good.  The state's 6.5 percent sales tax could be raised. The problem is that when you add the local option, you could surpass the magic 10 cent mark that seems to concern consumers.  You could adopt an income tax or corporate income tax.  This has not garnered a lot of support the last few attempts.  You could tax services; increase the business and occupation sales tax; increase the property tax; or, adopt a capital gains tax or royalty tax or any combination of the above.

One interesting concept that is being bantered about is something called a "levy swap."  This is a fairly complex maneuver that shifts the percentage of funding of our K-12 schools from the locals to the state.  It can supposedly be done in a revenue neutral way.  The advantage of doing the levy swap is that it may help the state appease the state Supreme Court with regards to the McCleary Decision - demanding that the state fully fund basic education.  All sides are looking at it right now.

The Governor has asked all agencies to prepare a 15 percent spending reduction proposal for his review and consideration.  By law he has to submit a budget to the legislature this fall.  It will not be pretty.  Compounding the problem is that out of the whole budget only a small portion is available for reductions.  Most of the budget is protected and unavailable for reductions.

The 2015 Session is a budget year.  Legislators need to adopt a 2-year or biennial spending plan for 2015-17.  I have a bad feeling we will be in session for a long, long time.  Keep in mind our fiscal year ends June 30, 2015.

Audits proposed for employer premium irregularities

By Tammie Hetrick, VP Retail Services

Employers would be subject to fines and audits according to the draft of a new Labor & Industries collections policy released the past several days.

Employers who are late reporting or paying workers compensation insurance premiums, who paid premiums for the wrong risk class or didn't make a payment would be subject to an audit after two violations were discovered, the new policy states.

Under this policy, employers will be putting themselves at greater risk for an audit if there are discrepancies related to their premiums.

L&I has submitted the draft to managers of workers' compensation accounts for comment before considering adoption of the proposal. WRA is appealing the outcomes of several pending audits for employers with account irregularities and noticing significant fines.  I'm urging employers to be sure they are timely in reporting their hours and paying their premiums to avoid potential audits.

WRA Retro members who have questions should me at 360-943-9198, Ext. 13 or Tammie@retailassociation.org.

Source: L&I

WRA candidates show well in primary

WRA-endorsed candidates showed well in the primary election for state Legislature races on Tuesday.

Mail-in ballots still are being counted so results remain unofficial in the races. The Secretary of State's office is reporting a 24 percent statewide vote participation rate.

In election highlights for WRA-endorsed Senate candidates:

*Republican Steve O'Ban received nearly 57 percent of the vote against Democrat Tammie Green in the 28^th District, including Lakewood.

*Republican Michael Baumgartner received 57 percent against the Democrat Rich Cowen in the 6^th District including Spokane.

* Republican Doug Ericksen received 56.9 percent of the vote against Democrat Seth Fleetwood in the 42^nd District including Bellingham.

In House races:

*The Republican challenger Melanie Stambaugh received nearly 48 percent of the vote against incumbent Democrat Dawn Morrell in the 25^th District race that includes Puyallup.

*Republican challenger Joel Hussey received 46.1 percent of the vote against incumbent Democrat Roger Goodman in the 45^th District including Kirkland and Redmond.

WRA will monitor primary election outcomes to help in determining endorsements in the fall election.

 Regardless of party affiliation, candidates finishing in the top two primary positions will face off in the Nov. 4 general election. Check here for updated vote totals as they become available.

Flash mob robberies spread to Washington State

Federal Way police are investigating what may be the first flash mob robberies in the state that occurred recently.

Police say as many as 40 teenagers and young adults entered a Shell gasoline station and a separate 7-Eleven store. Police reported that the youths stole wine and beer from the 7-Eleven. None of the intruders appeared to be armed. In such cases, retail store personnel are helpless to stop the widespread simultaneous crimes from happening.

The state Legislature has considered but failed to pass so-called flash mob robbery bills the past couple of sessions.  A bill was initiated by the late Sen. Mike Carrell, R-Lakewood, in hopes to discouraging the crime from spreading to Washington State. Some flash mob robberies have been recorded in Oregon and other states. Bills from the 2014 session proposed to make flash mob robberies part of the state's organized retail crime statues if six or more accomplices participated in a theft of at least $750.

A bill sponsored by Sen. Steve O'Ban, R-University Place, received a committee hearing earlier this year but stalled in the Rules Committee.

The bill is a high priority for WRA. News of this expensive and dangerous national trend spreading to Washington State could improve the chances the bill will receive more attention during the 2015 session.

Click here to watch a KIRO TV report of the crimes including film footage of alleged suspects.

Source: KIRO TV

Freedom Foundation video series highlights labor union practices

The Olympia-based Freedom Foundation has released a series of videos reviewing labor union practices that have proved unpopular with some members.

One commercial highlights an employee who objected to his union dues being funneled to support a political candidate whom he personally did not support. Other videos in a series address issues surrounding union representation and organizing tactics.

In a recent address to WRA's Board of Directors, Freedom Foundation CEO Tom McCabe said his organization was involved in a public education campaign seeking to increase labor union transparency and win workers the right to choose or reject union membership.

McCabe also detailed the extent of union financial influence in local and statewide elections.

Visit www.UnionInjustice.com to watch the videos.

Fundraiser scheduled for Sen. Tim Sheldon

Supporters of Sen. Tim Sheldon, D-Hoodsport, are organizing an election fundraiser on his behalf from 5:30 p.m. to 7:30 p.m. at the Olympic Flight Museum, on Sept. 17. The museum is at 7637 A Old Hw9 99 adjacent to Olympia Airport.

WRA has endorsed Sheldon's re-election effort. He has been a consistently strong supporter of WRA's legislative agenda with a 100 percent pro WRA voting record.

The outcome of Sheldon's race in the 35^th district, including Kitsap, Mason and Thurston counties, will be critical to maintaining a moderate state Senate that understands the needs of retailers and votes to support their needs. A host committee for the event is in formation.

Contact Linda Matson, 360-481-3503 or lmatson@matsonassociates.com for more information.

Feds issue retailers answers regarding changes to supplemental nutrition program

The U.S. Agriculture Department has issued updated information for retailers to learn of changes to the Supplemental Nutrition Assistance Program (SNAP) as a result of the 2014 Farm Bill.

The answers are the second in a series to be released and posted on the Farm Bill implementation web page. Also useful for retailers is SNAP's "what's new" web page.  President Obama signed the farm bill into law last February.

Click here to read the latest series of questions and answers related to the changes to SNAP.

Source: Food Marketing Institute

State updates recycling law for lights containing mercury

The state Office of the Code reviser has issued updates to the state law for recycling mercury-containing lights incorporating changes from a bill passed in the 2014 legislative session.

The bill (HB 2246) addressed how to finance the producer-operated recycling program. It took effect in June of this year.

Click here to review the updates.

Source: Ecology

Safety tip: (one in a series)

Learn to prevent strains, sprains

Overexertion injuries generally fall into two categories - sprains (stretching or tearing ligaments) and strains (stretching or tearing tendons or muscles).  These types of injuries have been associated with lifting, repeated bending at the waist with twisting, long term bending at the waist, pushing/pulling, carrying, reaching and long term poor posture (either sitting or standing).

Rick Goggins from Labor & Industries offers specific data for Washington retailers, which looks like this:

• One out of every four injuries in retail is overexertion.
• The average cost per overexertion claim is a little over $11,500.
• Overexertion claims represent about 37 percent of workers' comp costs in retail.
• Lifting is the most frequently mentioned cause of overexertion, resulting in at least half of all injuries. Carrying was second, followed closely by pushing and pulling.
• 'Boxes' were the most frequent source of injury. Of the more specific items listed, 'automotive parts' was the most common.
• The back was clearly the most frequently injured part of the body. Shoulder injuries were a distant second.

 To prevent overexertion:

• Stretch and/or warm up before heavy lifting or strenuous activity
• Use hand truck and carts as much as possible
• Lift with your legs bent and objects held close to your body
• Avoid bending, over reaching and twisting when lifting
• For those unusual sized items, ask a friend for help when lifting 

Proper posture, body mechanics and ergonomics can lessen overexertion injuries.  Because it is important that the demands of the job match the capabilities of the worker, extra training may be required to perform a job safely. 

For additional information:

RASI SAFETYTV

L&I on Preventing Overexertion Injuries

L&I on Awkward postures

WRA employs Rick Means as a Safety Specialist who is available to members to help draw up safety plans and suggest topics for safety meetings. Contact him at 360-943-9198, Ext. 18 or rick.means@retailassociationservices.com 

WRA co presents annual small business forums

WRA again this year is co-presenting a series of upcoming small business forums around the state with the Washington Policy Center.

Times and dates still are being arranged. Forums have been scheduled Aug. 11, from 11:30 a.m. to 1:30 p.m. at the Yakima Red Lion Inn on Aug. 11 and at the same times of day on Nov. 14 at Tacoma's Pacific Grill Events Center.

Forum participants will be asked to complete a survey explaining how issues affect their business. A report reflecting the impacts will be shared with lawmakers at the upcoming 2015 state legislative session beginning next January. Topics under discussion at this year's forums will include the minimum wage, health care reform, regulation and workers' compensation.

To register as a Tacoma attendee, contact Savannah Kimball at SavannahK@tacomachamber.org. Contact Chris Cargill, 509-570-2384 or ccargill@washingtonpolicy.org to register for the Yakima event.

WRA members can get discount at employment seminar

WRA members are eligible for a 20 percent early online registration fee discount to an annual labor and employment seminar scheduled in Seattle on September 9.

Attorneys from the firm Lane Powell will address a range of topics including employment law updates, managing employees with mental disorders, use of technology and complying with drug use following voter approval for marijuana use in Washington State.

The all-day event is scheduled for Motif Seattle's Emerald Ballroom, 1415 Fifth Avenue in Seattle. Click here for further details including speakers. Contact Kelsey Lamon, 206-223-6005, lamonk@lanepowell.com with any additional questions.

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. Visit here to enroll. Shipping customers with further questions are encouraged to call Partnership at 800-599-2902. You also may click here to receive a free rate analysis to help with your shipping decision.

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.

Save the date for the 2014 business fair

Organizers have settled on Sept. 27 for this year's annual small business fair at Renton Technical College.

WRA is an annual exhibitor at the fair, where speakers address numerous seminars on starting and growing a small business. Admission is free.