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Washington Information Network
Washington's resource for political activity and issues important to retail industry professionals. Distributed to 2,800 subscribers
 Staff Contacts

 

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

360.970.9198, ext.13

tammie@retailassociation.org

 

Vicky Marin

Director of Government Affairs

360.943.9198, ext. 12

vicky.marin@retailassociation.org

 

Stephanie Hon

Legislative Liaison

360.943.9198, ext. 11

shon@retailassociation.org

cc
In This Issue... (click on article title)
Health Care Spending and the Association Services Solution
New Domestic Violence Leave Law in Effect Now!
New Military Family Leave Law Effective June 12
Seattle Proposes Fee on Bags & Ban on Foam Food Containers - Your Opinion Needed
House Bill 2647 - Ban on Toys Partially Vetoed
The Legislature Punts Again on Paid Family Leave
Government Reform 2008: Making Government Work for Taxpayers

Health Care Spending and the Association Services Solution

By Jan Teague, WRA President/CEO

 

Health care spending remains the number one concern for all of our members.  They continue to ask, "what is being done to lower the cost of health care?"    In a free market society such as ours, the answer is we need to provide enough choices of insurance companies that they must be competitive in order for consumers to purchase their product.  With enough companies, prices are lower for insurance and types of coverage offerings are greater. 

 

In the recent WashACE brief published April 3, 2008, it states that U.S. health care spending totaled $2.1 trillion in 2006, $7,026 per person or 16 percent of the Gross Domestic Product (GDP).   Of that, business spends between 25-27 percent of the costs.  That tells me that business "contributes 25-27 percent of the costs to cover health care."   In Washington state the per capita health expenditure grew an average of 5.6 percent per year between 1991 and 2004.  Between 1998 and 2004, it accelerated to 7.3 percent, outpacing the U.S. average of 6.3 percent. 

 

The Center for Medicare and Medicaid Services (CMS)  estimates that the national health expenditure grew 6.7 percent in 2007 and projects that growth will continue at this pace through 2017.  By that time, health care spending will go from its current 16 percent of Gross Domestic Product (GDP).  If Washington state continues to outpace the nation, we will see even higher annual increases in health care spending. 

 

Cost containment is an ongoing challenge for businesses who want to continue to offer health insurance.  If the business isn't projecting increased sales, then looking at reduced benefits and more employee contribution to plans is the best answer.  Besides dealing with legislative dialogue, action is needed now.

 

The Washington Retail Association Announces a New Member option

 

The Washington Retail Association (WRA) has worked to provide as many plan options as it possibly can, given the restrictions on insurance choice.  WRA will continue to work towards helping its members control costs. 

 

I am announcing a new plan offering that has been put together through our relationship with Affiliated Associations of America.  They have formed a partnership with Unitedhealthcare that is expected to provide more service at a lower cost.  How can this happen?  I think the opportunity exists because they are re-entering the Washington state market and bringing their good reputation with them.  I hope you all find the service you get to be better and cheaper.  That is certainly the WRA goal.

 

If you are currently enrolled in Blue Shield through our relationship with Affiliated Associations of America (AAOA), you will be receiving a number of letters and communications regarding improvements to your benefits.  There will be many details coming your way, but essentially, it is our goal to provide you more benefits for less through the UnitedHealthcare plans.  In the long run, we all know that purchasing insurance is a difficult decision that considers your employees needs.   This will not be a seamless transition, but WRA does plan to provide as much help as its members need to make the transition. 

 

Do we have a choice?  Businesses always have a choice of service providers.  WRA hopes you find this choice offers you some relief on spending and an opportunity to find a plan that eliminates the need to shop every year simply because of the rate increase that you received last year.  If we can all participate in a plan that helps you manage costs through better health care prevention programs for instance, then maybe we can stay ahead of the national trends.

 

New Domestic Violence Leave Law in Effect Now!

 

There is a new employee leave law on the books that retailers need to be aware of and comply with immediately.  The domestic violence leave law, SHB 2602, became effective immediately when the Governor signed it this week. 

 

This law gives victims and their family members leave for activities related to the domestic violence.  The law is applicable to businesses with at least one employee.  So even small businesses that have not had to comply with other state and federal leave laws will have to comply with this law.

 

The law requires businesses to grant employees reasonable, intermittent, or reduced-schedule leave, paid or unpaid, for activities related to domestic violence.  The activities include:

 

  • seeking help from law enforcement
  • preparing for and going to court
  • seeking treatment for physical or mental injuries
  • getting services from a shelter or other center
  • getting mental health counseling
  • safety planning
  • temporary or permanent relocation

 

Employees who are victims or family members of victims are entitled to the leave.  Family members include children, spouses, parents, parents-in-law, grandparents, or people dating the employee.

 

Employees or their designees are required to give notice to the employer of the employee's intention to take leave by the end of the first day of the leave.

 

Employers are required to maintain all pay and benefits that accrued before the leave, and maintain the employee's health coverage at the same level during the entire leave.  The employer also must restore the employee to an equivalent position upon the employee's return.  Temporary employees hired for a specific term or project are exempt from the job-retention requirement.

 

Employers are prohibited from discharging, demoting, sanctioning, retaliating, disciplining, denying promotion to, or otherwise discriminating against employees who exercise their rights under the law.

 

The Department of Labor and Industries has the authority to enforce this law, and to fine employers up to $500 for the first infraction and up to $1,000 for subsequent infractions within three years.  This is in addition to civil damages and attorney's fees that employees may recover in a civil court action. 

 

The Department of Labor and Industries plans to create rules to implement this law, but it may be some time before those rules are issued.

 

If you have any questions about this law, please contact Vicky Marin at (360) 943-9198, extension 12, or Vicky.marin@retailassociation.org.

 

 

 

 

New Military Family Leave Law Effective June 12

 

Effective June 12, 2008, employers of all sizes will have to allow employees who are spouses of military personnel 15 days of leave when, during a military conflict, their spouses are called to active duty or are on leave from deployment.  The leave, which can be unpaid or accrued leave, can be taken each time the person's spouse is deployed.  The bill, SB 6447, passed the Legislature in the 2008 Session.

 

Employers are required to restore employees taking the leave to the same position, or one with equivalent pay and benefits within 20 miles of the employee's original workplace.

 

Employees must give notice to their employer within five business days of receiving official notice of the call to active duty or leave from deployment.

 

The law also extends the number of days of leave, from 15 to 21 per year, for an employee who is a member of the Washington National Guard or Reserves.

 

If you have any questions about this law, please contact Vicky Marin at (360) 943-9198, extension 12, or Vicky.marin@retailassociation.org.

Seattle Proposes Fee on Bags & Ban on Foam Food Containers - Your Opinion Needed

 

Please review the article below regarding the City of Seattle's proposal to place a fee on bags at grocery, drug and convenience stores and to ban the use of foam food containers.  WRA is interested in hearing your views. 

 

Thank you for your interest in this important issue. Please email or call Mark Johnson, VP Government Affairs at:  mark.johnson@retailassociation.org or 360-943-9198 ext 15.

 

Paper or plastic? You may pay either way - by the Seattle P.I. April 4, 2008

 

Seattle could trump even the greenest of American cities with fines on foam and taxes on bags - both paper and plastic, city politicians say.

Seattle would impose a 20-cent-per-bag "green fee" and outlaw foam food containers next year under a proposal announced Wednesday. Aiming to persuade Seattleites to ditch disposable bags, the city hopes to send a free reusable bag to every Seattle household, Mayor Greg Nickels said.

"No other city has done what we're suggesting here," Nickels said. "These actions will take tons of plastic and foam out of our waste stream. ... The best way to handle a ton of waste is not to create it in the first place."

Eventually, Seattle restaurants also would be forbidden from using plastic food containers that can't be recycled or composted, according to rules being developed by Nickels and City Council President Richard Conlin.

Some major questions about the policies remain -- from political differences over how to spend the taxes to outstanding technical dilemmas.

If adopted by the council, the fee would apply to disposable bags distributed at grocery, convenience and drug stores. The polystyrene foam ban would force restaurants and stores to find alternative egg cartons, meat trays, plates, "clamshells" and cups.

The foam and bag rules would go into effect Jan. 1. The plastic food container restrictions would be implemented July 2010.

"It's a big symbolic step, but it's also a very concerted step in the right direction," Conlin said.

The grocery bag fees would generate about $10 million a year, according to Seattle Public Utilities. The money would be used to administer and enforce the rules, to buy and promote reusable bags, and to expand recycling, environmental education and waste prevention programs.

But Conlin has another idea: He would like some of that money to go to garbage rate reductions. The difference will be resolved politically, after Seattle utility and legal officials draft the legislation and present it to the council. That is expected to happen next month.

Seattle consumers use 360 million disposable bags each year, according to Seattle Public Utilities. About 73 percent of them come from grocery, drug and convenience stores, Nickels said. Most are plastic, and most wind up in landfills.

But paper bags are even worse for the environment, once you factor in the tolls of logging and shipping the bags, officials said. That is why the fee would apply to both, they said.

San Francisco prohibited supermarkets from using plastic bags in December. City leaders there gave out several thousand free reusable bags made of scrap cloth, officials said.

Seattle, too, has been handing out free reusable bags in recent months. The more than 5,000 bags the city bought are made of polypropylene, not recycled materials or the especially environmentally friendly cotton canvas, officials said. But they are recyclable and cost considerably less than some alternatives.

"Our decision was (based on) getting as many into the hands of people as we could," said Alex Fryer, spokesman for the city's Office of Sustainability and Environment.

Seattle officials considered banning disposable bags outright, Conlin said. "The problem with a ban is that all it does is leave people without a choice," he said.

Many agree an across-the-board fee is a better approach. Ireland imposed a fee on plastic bags in 2002. Since then, plastic bag use has dropped 90 percent, Seattle officials said.

"If you're trying to reduce bags, that's the way to go," said Mark Westlund, spokesman for the San Francisco environmental department. San Francisco officials considered a surcharge, but California law prohibits such fees, he said.

A lobbyist for Washington retailers said he would withhold judgment on the plan until he had a chance to run it by members of his group.

"If the consumer says, 'I'm not excited about paying 20 cents per bag when I go shopping,' that is probably going to be an issue for us," said Mark Johnson, vice president of government affairs for the Washington Retail Association. "If they're saying, 'No big deal,' it might not be an issue."

Some grocers already promote the use of reusable bags. For example, Thriftway gives a nickel back to customers who bring their own bags.

"I don't know if consumers know how much plastic and paper bags cost," said Josh Angle, store director of the Magnolia Thriftway. Paper bags cost at least 13 cents each, plastic bags cost about 9 cents.

At the PCC store near Green Lake Wednesday, the idea of answering the question of "paper or plastic?" with "cloth" seemed entirely Seattle to Wendy Asbury. Asbury switched to cloth bags when she moved here eight months ago, she said.

"I'm from the Southwest, where everything is about gluttony and waste," she said. "That's what I loved about moving here; everything is so 'green.' "

But there were opponents, too, and the proposal set off a debate between friends in the PCC parking lot.

Jenn Young said encouraging people to use cloth seemed less onerous than penalizing them with the fee.

"I disagree," responded Naomi Fujinaka. "I've been bringing my cloth bag for 25 years."

Young said: "It might be hard on families. If you have a family of six with four kids, and you go shopping once a week and you have 10 grocery bags, that can get to be a lot of money."

"Then you'll know to bring your bag next time," Fujinaka said. "We really have to change our behavior."

For every 20-cent bag fee collected by Seattle, most stores would be allowed to keep 5 cents to cover administrative costs and taxes. (The fee itself would be subject to the state sales tax.) Small stores -- those collecting less than $1 million in gross revenues each year -- would be allowed to keep the entire 20 cents.

Grocers would be required to explicitly list the fee on receipts.

More than 20 cities have banned polystyrene foam packaging at restaurants and other business, including Portland, Ore. After more than 20 years of foam-free fast food services, Portlanders are accustomed to the eco-friendlier alternatives, said Cynthia Fuhrman of the Portland Office of Sustainable Development.

"I think it's just a given -- people have just accepted it," Fuhrman said.

CITY'S PLAN AT A GLANCE

BAGS

PROPOSED: A 20-cent green fee on disposable shopping bags, both paper and plastic.

WHERE: Grocery, drug and convenience stores.

WHEN: To begin Jan. 1.

EXEMPT: Bags used inside stores to contain bulk items, bags for prepared food, newspaper and dry-cleaner bags.

WHY: Seattleites use 360 million disposable paper and plastic shopping bags every year. Almost 240 million end up in the garbage. That's close to 4 percent of all residential garbage, by volume. This will save 4,000 tons of greenhouse gases per year, the same as taking 665 cars off the road.

FOAM

PROPOSED: A ban on the use of expanded polystyrene (sometimes called Styrofoam) containers and cups.

WHERE: All food service businesses, including some of the foam packaging used in grocery stores, such as meat trays and egg cartons.

WHEN: To begin Jan. 1.

PLASTICS

PROPOSED: Switch from one-time-use, disposable plastic and plastic-coated paper food and beverage containers and utensils to fully compostable and recyclable substitutes.

WHERE: All food service businesses.

WHEN: By July 1, 2010.

House Bill 2647 - Ban on Toys Partially Vetoed

 

The Governor took action on HB 2647, the Children's Safe Products Act, April 2nd by partially vetoing the legislation. While the bill has now passed and the legislative session ended, efforts at the WRA are continuing. The Governor spent a lot of time clarifying that significant work needed to be done on the bill and vetoed two sections - one and eight.

 

The vetoed sections change the requirements for the Department of Ecology (DOE) by instructing them to: focus on lead, cadmium, and phthalates, not additional 'chemicals of high concern', and to report back to the legislature with recommendations before starting the rule making process (which in effect is the only way to actually implement the legislation.)

 

The Governor stated an advisory group will be formed to ensure that the actualization of HB 2647 meets "common sense" requirements. She noted that sections of the bill, like section three which addresses electronics, are unclear and therefore need "expedited rulemaking" for clarity. And lastly, she commented that the advisory group's advice will be used for "legislative fixes" next session. Given the phrasing mentioned above it is likely that there will be legislation next year modifying HB 2647 before its implementation date July 1, 2009. The WRA will participate in the advisory group.

 

If you would like a copy of HB 2647 the Governor's veto statement please contact Stephanie Hon, Legislative Liaison, at 360.943.9198 ext. 11 or at stephanie@retailassociation.org.

The Legislature Punts Again on Paid Family Leave

 

When the Governor signed the 2008 budget this week, the Legislature appropriated $6.2 million in start up funds to set up the computer system necessary to administer the paid family leave program in the Employment Security Department (ESD).  The $6.2 million will pay for some computer software and hardware, but according to ESD's own fiscal estimates, it will cost another $6.6 million just to create a system to collect taxes to pay for the actual benefits.  That does not include the cost of the benefits themselves.  The Legislature also failed once again to vote on an ongoing funding source for the program. 

 

In addition to the program's financial troubles, the Legislature did not pass any legislation giving the ESD the authority to administer the program, so the only agency with any authority to spend money from the Paid Family Leave fund is the Department of Labor and Industries (L&I).  Last year, L&I loaned ESD $1.5 million from the workers' compensation fund.  L&I has continuing authority to loan money to ESD from the worker's compensation fund, up to $18 million in the 2007-2009 biennium.

 

 

The Legislature Fails to Act on the Brinks Aftermath; Employee Pay for Commuting in a Company Vehicle

 

Last year's Washington Supreme Court decision in Brinks left many employers unable to continue their voluntary home dispatch programs, which allowed employees to commute in company vehicles.  The court essentially determined that if an hourly employee is driving a vehicle with tools of the trade in it, or is restricted from engaging in personal activities during the commute, then the entire time must be paid. 

 

A large business coalition attempted to create a legislative solution that would allow companies to continue their programs, but the Legislature failed to take any action on Brinks this session.  The Department of Labor and Industries is working to develop an interim policy, but any policy the department issues will have to be within the confines of the Brinks decision, which means it will not be retroactive.

 

If you have any questions about this issue, please contact Vicky Marin at (360) 943-9198, extension 12, or Vicky.marin@retailassociation.org.

 

Government Reform 2008: Making Government Work for Taxpayers

 

Join the Washington Policy Center and its new Center for Government Reform for an interactive half-day conference on how to make government work best for taxpayers. The conference includes breakfast, lunch and conference materials.

 
 
 
April 15, 2008

SeaTac Doubletree hotel

18740 International Boulevard

Seattle, WA 98188

 

A variety of speakers will participate on panels covering Budget and Tax Reform, Budget Accountability & Performance, and the Role of Government. Panelists include: Donna Arduin, former budget director for Florida Governor Bush and California Governor Arnold Schwarzenegger; Brian Sonntag, Washington State Auditor; and Larisa Benson, Director of Washington State Government Management Accountability and Performance (GMAP).

 

To register online or for more information visit:www.washingtonpolicy.org

 

The Conference has been approved for 2.25 Continuing Legal Education (CLE) credits. An additional processing fee of $20.00 is required to obtain these credits. For more information contact Anna Carroll at acarroll@washingtonpolicy.org or 1-888-972-9272.

 

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The Washington Retail Association, WRA, is a 501 C 6 trade association formed to advocate for Washington State’s retailers at the local, state and national level. Since 1987, the WRA has protected Washington's retailers from unreasonable taxes, fees, regulations and legislation. The efforts of the WRA benefit all Washington state retailers and help fuel statewide economic growth.


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