2008 Legislative Issues Wrap-Up
SUPERVALU Government Affairs
In 2008, legislative sessions were largely overshadowed by the constantly changing challenges of the economy, the presidential campaign and elections at all levels. However, legislative activity remained high and the number of issues requiring monitoring or action continues to grow each year. For example, there were approximately 160 proposals this year including state bills, municipals resolutions and petitions relating to plastic bag mandates alone.
We did see some big wins in Washington D.C., including the passage of legislation to correct FACTA, pension relief for 2009 and legislation to address Interchange Fees passed out of a major House Committee.
In many states attempts to increase the cost of business through proposals for new taxes or liabilities, changes to employee benefits, or environmental or pharmacy mandates were defeated or amended.
This report highlights some of the key legislative issues from 2008 that we engaged in to support or defeat, or were being tracked by SUPERVALU and our industry partners.
SUPERVALU’s Government Affairs Department works in concert with our banner leadership, public affairs staff, and state and federal trade associations to promote the adoption of legislation and regulatory rules that are favorable to SUPERVALU, its banners, associates and constituents.
Note: The following is an overview of a few key issues in select states where SUPERVALU and our industry partners were actively engaged or tracking legislative proposals that had an impact on our industry. However, this report does not reflect SUPERVALU’s position on the final legislation.
California
Idaho
Illinois
Maine
Maryland
Massachusetts
Minnesota
Nevada
New Jersey
Oregon
Pennsylvania
Washington
Passed:
• Language that allowed the Dept. of Alcoholic Beverage Control (ABC) to prevent liquor store owners who have had multiple violations of the ABC Act from being on the premises of the liquor store after the owner has transferred their liquor license.
• Legislation that requires certain food facilities to post calorie information on their menus and indoor menu boards by January 2011. In 2009, a brochure with calorie information or nutritional information must be provided at the point of sale. An exemption was granted for grocery and convenience stores.
Defeated:
• A proposal to prohibit alcoholic beverage licensees from selling alcoholic beverages using a self-service checkout system.
• A proposal that would have increased the initial license fee for cigarettes and tobacco product retailers and established an annual license fee. Vetoed by the Governor.
• A proposal related to data breaches that would have created new liabilities for retailers accepting debit and credit cards. Vetoed by Governor.
• Legislation that would have eliminated the requirement for a secret ballot for union representation among farm employees. Vetoed by the Governor.
• Legislation that would have increased the number of weeks that permanent disability benefits are paid, and increasing the amount of money received for each percent of disability. Vetoed by Governor.
• A proposed ban on plastic bags.
• A proposal for mandatory retail take-back of used needles, lancets and medical sharps.
• Legislation requiring credit card contracts to be in six different languages.
• Requirement for all food packaging to be recyclable or compostable.
Passed:
• Legislative approval and funding for the Idaho Board of Pharmacy to hire outside legal counsel to assist the Board with recodification and rewriting of the entire pharmacy law book over the next three years.
Defeated:
• A proposal to increase the minimum wage with an inflator; instead passed legislation to tie Idaho’s minimum wage to the federal minimum wage.
• A bill to require any establishment that sold beer or wine to post at least two fetal alcohol syndrome warning signs. Signs now can be hung voluntarily.
• Legislation that would have increased the unemployment insurance taxes by $13 to $18 million over the next five years.
• Legislation that would have created an Idaho Prescription Drug Plan that would cost pharmacies money.
• Proposals that would have quadrupled light and heavy truck registration fees.
Passed:
• Legislation to prohibit the sale of aclopop (flavored alcoholic beverages) for consumption unless individual containers of the beverage have imprinted that it contains alcohol and the alcohol content of the beverage.
Held:
• A proposal to repeal the teen wage provision in the Illinois Minimum Wage Law (currently allows employers to pay anyone under 18 fifty-cents less per hour then the minimum wage). The repeal would require employees under 18 years of age to be paid the full state minimum wage.
• A proposal to require every contract under $100,000 to be written in ‘plain language’.
• A proposal to make retailers liable for any costs incurred by a financial institution resulting from a data breach at a retailer.
• A proposal to regulate POS scanner accuracy.
• Protected the vendor collection allowance from a proposal seeking its reduction, elimination or capping.
Passed:
• An increase in the minimum wage in 2008 and in 2009.
• Legislation to amend the Family Medical Leave Laws to include siblings. In 2007, domestic partners were added. Affects employers with 15 or more employees.
• A bill that requires gift cards with less than $5 may be redeemed in cash at the customer’s request.
Defeated:
• An increased tax on beer, wine and soda and a surcharge on paid health insurance claims to fund the Dirigo Health Program for uninsured residents. The legislation originally passed and was signed into law by the Governor. Maine used a rare “people’s veto” referendum to repeal the tax. On Nov. 4, voters overwhelmingly voted to repeal the new taxes and the surcharge. The new taxes were overturned and the current program remains in place.
• A bill that would have made Maine the only state to mandate paid employee sick leave.
• A proposal to allow an out-of-state shipper of wine to ship directly to a resident of Maine.
Passed:
• Changed the definition of stolen property to help conduct sting operations in organized retail theft rings.
• Legislation to close a loophole in the secondhand precious metals law to bring in e-Bay and others selling and receiving compensation under the law to be licensed.
• Legislation that allows employees to use paid leave to care for a member of the employee’s immediate family.
Defeated:
• A proposal to create a trans fat study task force.
• A bill to direct merchants to compensate financial institutions when a data breach occurs.
• Bills to require labeling or bans on products (bisphenol-A, lead content, plastic bags, others).
• Plastic bag bans in three local jurisdictions and two bills in the general assembly.
Passed:
• Cigarette tax increase by $1.00 to fund health care.
• Sales tax holiday that allows two days in August 2008 to be sales tax free.
• Tax legislation that closes several corporate tax loopholes and seeks an even playing field for businesses that are able to claim profits from out-of-state where they operate.
• Legislation to assist dairy farmers in difficult economic times that will require the MA Dept. of Agriculture Resources to promulgate regulations allowing couponing of white milk and cream in MA.
Put into a study:
• A bottle bill expansion.
• Minimum wage increase and indexing.
• A plastic bag tax.
• A number of item pricing proposals to offer retailers relief.
• Proposals restricting sales of OTC drugs, cosmetics and certain medical devices at flea markets.
Passed:
• A health care reform package to begin to address escalating health care costs.
• Legislation that requires purchases of certain refrigerants to report purchases to the MN Pollution Control Agency.
• A major transportation funding package, including a gas tax increase and local sales tax for transportation.
• Justin’s Bill, banning illicit internet pharmacies.
Defeated:
• Minimum wage increase passed, but was vetoed by Governor.
• Paid sick leave for any member of the employee’s family, vetoed by Governor.
• Legislation to mandate plastic bag recycling at all grocery, retail and convenience stores in Minnesota.
• Several bills banning chemicals like bisphenol-A and phthalates, vetoed by Governor.
• A proposal to allow cities to impose fees on homes, businesses and churches for road improvements without going through the special assessment process. The bill included no caps, limitations or restraints.
• Nevada did not hold a legislative session in 2008.
Passed:
• Shopping cart retrieval bill, allows retailers more time to retrieve carts before a fine is imposed.
• An Organized Retail Theft Task Force was created.
• Governor’s economic stimulus package includes state aid for food banks, incentives for supermarkets to expand in urban communities and job creation incentives.
Defeated:
• A bottle bill proposal.
• A city proposal to ban plastic bags and held off hearings on eight plastic bag mandate proposals.
• Oregon did not hold a legislative session in 2008.
Passed
• Legislation that requires all retailers to sell only fire safe cigarettes after July 1, 2009. Stock must be rotated out.
• Clean Indoor Act prohibits smoking in public places and work places.
Defeated
• Proposal to make non-compostable plastic bags illegal.
• Bottle bill proposals.
• Tobacco tax increases to pay for uninsured residents.
• An increase in the requirements for certified food handlers.
Passed
• Legislation creating a wine and beer tasting pilot project in 30 grocery stores (includes one Albertsons store) through Sept. 2009. Emphasizes Washington State beer and wine for sales. Will try to expand project statewide in 2010.
• A ban on phosphorus in dishwasher detergent was passed for two counties in 2008. Grocers are working with manufacturers to ensure enough product. Washington will go phosphorus free statewide in 2010.
Defeated
• A proposal to allow out-of-state online wine retailers to ship to consumers in WA.
• Three proposals to create menu labeling requirements.
• A proposal for retailers to pay financial institutions for data security breach.
• A ban on plastic bags at grocery stores.
• A proposal to ban plastic water bottles.
• Legislation that would have mandated the use of compostable service ware.
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