WRA board meets with key legislative leaders

By Jan Teague, President/CEO

The Washington Retail Association Board of Directors held a meeting today and had the opportunity to visit with Senate Minority Leader Mike Hewitt, House Minority Leader Richard DeBolt, Senator Joe Fain and Governor Gregoire's Legislative Director, Jim Justin.  Today was a full day of floor action with an enormous push from gay rights advocates to finish passing a marriage equality bill and sending it to Gregoire.  Halls were full of advocates carrying signs and making their views known. 

The Board had the opportunity to visit with leaders about stopping new changes to workers' compensation laws and giving last year's reforms time to be implemented; offering grave concerns over costs associated with HB 2395, HB 2527, SB 6487, making independent truckers employees of retailers (a unionizing effort) and suggesting that safer work environments would occur; asking for relief from minimum wage hikes that many small retailers can't afford (HB 1258, HB 2496, HB 2497); explaining the need to have transparency on drug costs so that inflationary prices are not charged by middle man companies called Pharmacy Benefit Managers (HB 2303/SB 6096); advocating for a sales tax holiday that creates jobs and generates new sales tax revenue for the state (HB 2644); and offering support for the recent revisions to a Children's Safe Products bill (SB 6120).

Sen. Hewitt said that on Tuesday the Senate Ways and Means Committee passed 50 bills in six hours.  He is frustrated though that there is no political will to do the budget without some additional agreement to put a new revenue source on the ballot.  Polls continue to show there is little support for a sales tax increase.  Hewitt also thinks that when the next economic forecast comes out it will be flat to slightly higher, which will set the stage for final discussions on the budget.  Hewitt also told the Board that if the legislature tackled state pensions, met current obligations and put a new plan in place for new hires, it would save billions of dollars over time. 

Rep. DeBolt said legislators have put together a jobs package and would like to see it move forward as a single bill.  Republicans have been advocating for a number of job growth bills for a number of years and think now is the opportunity to help business with these ideas. DeBolt noted that steps need to be taken as a package to get the economy moving and not expect to bond the basic services in order to get a budget put together. 

There was quite a bit of talk about a video lottery bill that would generate $411 million dollars in sales tax that Rep. DeBolt said would be dedicated to funding smaller classroom size.  If the legislature passes a new revenue package on to the voters, it should not be used to fund basic education or other basic responsibilities of state government. 

Senator Joe Fain (47^th District) told the Board that he does not support using bonds to run state government.  This is an artificial way to balance the budget and is not sustainable.  He explained that there is a bill that would require legislators to view the budget over a six-year period so they don't overspend. 

Gregoire's Legislative Director listened to our issues and said that the main issues under consideration by the Governor at this time are the budget, jobs, marriage equality, and education reform.  Not a lot of other reforms have made it to her desk at this time including workers' compensation. Gregoire's B & O tax reform bill had a hearing yesterday that did not go well. Justin said Gregoire and her staff were stunned by the news.  Justin said that any jobs package would be the last thing taken up by the legislature.

Interestingly, both Rep. DeBolt and Sen. Hewitt said that the best run legislature is one that has a balance.  Good ideas become good laws when all interests are involved in the outcomes of new laws.  

WRA board members discussed among themselves the critical nature of so many bad bills making it out of committee. We also discussed the growing concerns from the Democrats, unions, environmental groups and trial attorneys who are all very worried that Attorney General Rob McKenna, who is running as a Republican for Governor, is polling much stronger than the Democrat Candidate, Jay Inslee.  Political predictions are that all of these groups will focus their PAC dollars on keeping the Governor's job in the control of Democrats.  If they don't spend a lot of money on initiatives this year, it is hard to know if any revenue package that the legislature puts forward would pass without help from these groups.

WRA is leader in push for marketplace equity and Main Street fairness

For several years, WRA has led the statewide push for marketplace equity wherein all retailers, traditional, remote and online alike, would collect sales taxes for purchases.

WRA will continue to actively advocate for a level playing field that removes an unfair competitive advantage gained by remote and online retailers who do not collect sales taxes.

WRA was the lead organization in advocating a change from collecting the tax where the items are sold to collecting at the destination of the purchaser. This is otherwise referred to as destination-based sourcing of the tax as opposed to collecting at the origin of the sale. In order for Washington State to join the National Streamlined Sales Tax Agreement, this change needed to be made.

Some legislators and interest groups favor a return to origin-based collecting, but this would be counterproductive to quick Congressional passage of bills currently under consideration to achieve marketplace equity for all retailers.

Every day that passes without Congressional action, retailers across the nation lose sales and local and state governments lose unpaid, required tax revenues critical to maintaining vital services. Additionally, many of WRA's members are serving as "showrooms" for remote/online sellers and they have grown tired of it.

WRA encourages retailers, chambers of commerce, legislators and other associations to contact their Congressional representatives to correct this inequity. Click here to search for appropriate Congressional phone numbers and e-mail addresses and tell them to support action on these bills.

There are three bills on the table to correct the sales tax collection inequity: S 1452, S 1832 and HR 3179.

Facts to consider regarding this issue:

*36 percent of holiday shopping was done online. Sales were up 15 percent.

*92.5 percent of online retailers offered free shipping during the holiday shopping season.

*Local businesses simply can't compete over the long term with online retailers who have almost a 10 percent price advantage by not collecting sales tax.

To help WRA obtain a national solution, contact Mark Johnson, Vice President Government Affairs, at 360-943-9198, Ext. 15 or at mark.johnson@retailassociation.org.  

WRA sets out session priorities

Today is Day 31 in the Legislature's current 60-day session and WRA is monitoring close to 400 bills.

An important cutoff date is approaching next week Tuesday, the last day to consider bills in their house of origin. Bills related to the budget can be considered until the scheduled day of adjournment on March 8.

Every year, WRA establishes a tighter focus on a smaller number of bills of prime impact on retail and members in general.

Here is a summary of some of WRA's priorities this session:

*HB 2644, back-to-school sales tax holiday.

This bill would create an estimated 1,555 jobs and raise new revenues for state and local governments. WRA is working to ensure consideration and a vote.

*SB 6061, non-resident sales tax exemption

WRA has organized a campaign by merchants along the Washington/Oregon border to defeat this bill, which would force non-resident shoppers who get a sales tax exemption at the cash register to apply once a year for the exemption. It would result in lost sales for Washington retailers.

*SB 6120, expansion of Children's Safe Products Act

WRA is opposing this bill because it would require expensive assessments to discover alternative elements used in various children's products.

*HB 1928, SB 5789, workplace bullying

WRA has opposed these bills that open huge employer legal liabilities. The bills currently are not moving and are unlikely to get voted upon this session.

*HB 2508, SB 6229, sick and safe leave

WRA has opposed these bills due to the burdensome employer expenses they would impose and a resulting loss in productivity. The bills currently are not moving and may not get a vote this session.

*HB2207, Retro insurance authority

WRA is negotiating with legislators to make progress on the proposal to allow Retro programs scheduling authority to speed worker comp claims to resolution.

Mark Johnson, WRA's Vice President of Government Affairs, reports that bills to ban plastic shopping bags (HB 2404, SB 5780) will not be getting votes this session.

Flaherty takes over at Revenue

Brad Flaherty has been appointed the new Director of the state Department of Revenue.

Flaherty is a 32-year veteran of the department, having worked his way up after starting as a revenue auditor in 1979. He last served as Deputy Director.

Among his priority, Flaherty said he would focus on Governor Gregoire's priority of simplifying the state tax system, overseeing the transition from state sales of liquor to the private sector and improving business licensing services.

Flaherty announced his deputy will be Vikki Smith, a 40-year department veteran with experience in taxpayer services, account administration and human resources.

Valentine's Day shopping expected to be a success

Valentine's Day sales this year are expected to be up 8.5 percent compared to last year, a new National Retail Federation survey shows.

Total spending for the holiday next week Tuesday is expected to reach $17.6 billion with men expected to spend on average twice as much as women, $168.74 to $85.76.

Besides candy and flowers, jewelry and gift cards are expected to be among the most popular gifts.

Click here to read more about the survey results.

Subscribers to the South Sound Business Examiner also may read comments by WRA President and CEO Jan Teague regarding local expectations for an improved Valentine's Day shopping season this year, or look on newsstands for a copy.

Source: National Retail Federation, South Sound Business Examiner

WRA to offer teleconference on Seattle paid sick leave law

Seattle attorney Selena Smith will moderate a free teleconference for WRA members on Feb. 22 to explain Seattle's new mandatory paid sick and safe leave law.

To register for the teleconference, contact Tammie Hetrick, WRA's Vice President of Retail Services, at tammie@retailassociation.org. The teleconference is limited to 90 participants so it would be best to register early for the conference.

A summary of the teleconference will be posted on the Retail Association Services website, www.retailassociationservices.com.

WRA opposed the Seattle law as an expensive burden on retailers, especially small businesses. WRA also is opposing two bills introduced in the Legislature, House bill 2508 and Senate bill 6229. WRA opposes the bills because they would impose new costs on retailers struggling to recover from the recession and would increase the likelihood of lost productivity.

WRA urges concerned businesses to contact their legislators to oppose the bills currently under consideration. Click here to find your legislator. You also may leave a phone message for your legislator by dialing a toll-free hotline, 800-562-6000. 

L&I to hold hearings on structured settlements

Labor & Industries will hold four public hearings around the state later this month regarding rules to implement a law allowing for speedier resolution of workers' comp claims.

Under Engrossed House Bill 2123 from the 2011 session, injured workers age 55 and older can settle their claims with their employer and L&I to resolve future non-medical benefits. In most cases, after the claim is closed, the worker gets a fixed compensation amount issued in periodic payments. It is an option for injured workers looking for a job or planning retirement independent of the workers' compensation system. They can continue to receive medical treatment for conditions allowed on their claim.

The public hearings:

*Vancouver, Feb. 21, 10 a.m., Red Lion at the Quay, 100 Columbia Street.

*Tukwila, Feb. 21, 1 p.m., L&I office, 12806 Gateway Drive S.

*Tumwater, Feb. 22, 10 a.m., L&I Tumwater building, 7273 Linderson Way S.W.

*Spokane, Feb. 22, 10 a.m., Center Place Event Center, 2426 N. Discovery Place.

Source: L&I

Health Department alerts pharmacists to inventory drug

The Department of Health has issued an alert to pharmacists to complete an inventory of the controlled muscle relaxer carisoprodol.

The drug has been a controlled substance in Washington State since 2010.

The U.S. Drug Enforcement Administration has issued a final rule to place the drug under monitoring as of Jan. 11 of this year. Pharmacists have been notified to take an immediate inventory to establish how much of the drug they are keeping.

The new federal requirement calls for inventories to be done every two years. Contact the state Board of Pharmacy with questions at 360-236-4853 or susan.boyer@doh.wa.gov.

Bloggers to headline Research Council dinner

Two political bloggers will be guests at the Washington Research Council's annual dinner on June 5, at The Museum of Flight near SeaTac Airport.

Jennifer Rubin, author of Right Turn in The Washington Post and Mickey Kaus, who write Kaus Files on The Daily Caller online, are scheduled to address those who attend. Their talk will be moderated by Greg Lane, President and CEO of TVW.

Invitations will be e-mailed in April. Meanwhile, contact 206-467-7088 or dede@researchcouncil.org with questions.

GoGreen conference set for Seattle on April 25

An all-day business conference where information will be shared on environmental and energy-saving initiatives is scheduled on April 25 at The Conference Center, Eighth Avenue and Pike Street, Third Floor, in Seattle.

Keynote speakers include Maud Daudon, President and CEO, Seattle-Northwest Securities Corporation; Dr. Gary Kaplan, Chairman and CEO, Virginia Mason Health System; Pamela Hinckley, CEO, Tom Douglas Restaurants; and Jim Weber, President and CEO of Brooks Sports.

For more information including registration, visit the GoGreen Conference website.

Safety tip: (one in a series)

How retailers can protect the public

When it comes to indicators of terrorism and violent crimes, retailers can partner with law enforcement organizations or emergency management partners that may offer outreach programs on what to look for.

When suspicious purchases or odd behavior just don't feel right, it's important for your staff to know what to look for and how to go about reporting high-risk inventory purchases or suspicious activities. Retailers that sell health and beauty, household cleaners, pharmaceutical, automotive and home improvement products should be made aware of the type of products that are high risk. It's important to get the knowledge and train staff on what products will be essential (which products are dangerous? Click here.), and then getting employees to report it.

Four steps FEMA recommends:

Understanding the threat - There is a real threat of explosives in the U.S.

Knowing your products - Identify high-risk inventory, work with law enforcement, get training, be aware of usual sales trends, and know what products are traditionally used for.

Being vigilant - Identify unusual purchases or loss of high-risk product (i.e. someone who purchases quantities far above the norm, shorter intervals of use, customers who refuse substitutes for no reason, large cash purchases, missing product). Watch suspicious behavior: nervousness, evasive customers, wearing clothing to conceal one's identity (caps, hoods, sunglasses inside), or (baggy pants, coats or jackets) that can hide merchandise. Watch for individuals trying to access staff only areas. Identify losses of high-risk products.

Reporting to authorities - Determine in-house procedures for reporting. After you've written down what you see and you've contacted an immediate supervisor, law enforcement should be notified.

A warning: Staff should avoid confronting or aggressively questioning suspicious persons. They should not abandon their sale to locate a manager. Also avoid following closely or obviously behind suspicious person to obtain vehicle or other information. And do not take photos with your cell phone.

"If You See Something, Say Something," a public campaign video by Homeland Security, is available here. For more resources, click here.

For help with a safety plan or to arrange a workplace safety review, contact Maria Justin, WRA's safety advisor, at 360-943-9198, Ext. 21 or at maria@retailassociationservices.com.