CAPITOL INSIDER
Biting the Hand That Feeds You… Again and Again KE LLY ASH VP, G OV E R N M E N T R E LATION S C A L IF OR N I A G R O CE R S AS S OCIAT ION
It’s important California’s elected leaders remember both workers and businesses are essential as the state unwinds its pandemic strategy. Since the beginning of the pandemic in early 2020, grocers have never stopped serving customers, keeping communities fed, and employing Californians. So, what happens when many of the regulations, legislation, and executive and health orders start to be rescinded even as others remain in effect or are reinstated? Our grocery community is in the middle of finding out. Both the State Legislature and Gov. Gavin Newsom have reacted to the omicron variant spike with policy and legislative actions that give businesses a serious feeling of whiplash. With one hand, the Governor and legislative leaders passed another round of supplemental paid sick leave (SPSL) – the third iteration mandated upon the grocery industry since the beginning of the pandemic. On the other hand, Newsom decided that positive cases were manageable enough to lift the statewide indoor mask mandate, a move that has trickled down to the local level. Not seeing the logic? You’re not alone. Why would the state’s elected leaders insist on pushing through emergency, health-andsafety based legislation to reinstate SPSL, yet lift one of the very safety mechanisms
they have been touting for almost two years? Governor Newsom stated at a press conference the day he signed the bill, “That’s why sick leave is foundational – keeping people healthy, keeping patrons safe is so important.” Isn’t that why California required individuals, regardless of vaccination status, to wear masks for the last two months? If there is a legitimate need for additional weeks of supplemental leave, then why take away one of the ways to support businesses in keeping their employees safe from the public? With the idea of softening the blow, the Governor, legislative leaders, and CalChamber pointed towards a $6 billion tax relief packaged centered on grants and other benefits. Specifically, the package restored research and development tax credits, as well as the net operating loss deduction one year earlier than expected. It also expanded the relief grant program for business applicants that had been previously waitlisted for grants. The problem is that the grants are geared toward specific businesses that were shut down during the pandemic, such as
restaurants, and the plan generally misses the opportunity to support essential businesses that have been up and running throughout the pandemic. Unlike the rest of the business community in California, the grocery industry came to the table in March and April 2020 to work on solutions to keep workers safe and distanced when COVID-19 was especially novel and uncertainty about COVID’s characteristics high. This makes the neglect for essential businesses’ needs, and the continued effort to saddle such businesses with contradictory mandates a point of frustration. The Governor and the Legislature are moving mountains to support families and workers with their policies, but the grocery community has undergone a similar feat while playing whack-a-mole against inflation, severe supply chain challenges, and intermittent and unpredictable surges in consumer demand. This is why California needs to do a better job balancing its support for workers with support for the very businesses that have proven to be the lynchpin of communities during the pandemic. During the last two years we experienced firsthand how interdependent the world is. As the state moves from its pandemic to endemic strategy, it’s vital our elected leaders remember what’s truly essential. ■
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