BIG THINGS
Have Humble Beginnings
Issue 58, 2022 | the Official Publication of the Neighborhood Market Association
Issue 58 Executive Board Of Directors Firas “Russ” Soro Executive Chairman Mark Kassab Vice Chairman Remon Mansour Treasurer
FEATURE ARTICLES
Steve Mattia Secretary
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Chairman’s Message: New Year, New Venture
Samir Salem Past Chairman
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President’s Message: Big Things Have Humble Beginnings
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NMA Testifies at State Senate Hearings Opposing SB 620
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NMA Endorses California State Senator Brian Jones for Re‐Election
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NMA Endorses Kelly Martinez for San Diego County Sheriff
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NMA Endorses Ammar Campa‐Najjar for Chula Vista Mayor
Molly Sylvester Executive Member
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NMA Endorses Jordan Marks for San Diego County Assessor/Recorder/County Clerk
Rony Georges Executive Member
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San Diego City Council Proposes Flavored Tobacco Ban
Saeed Somo Executive Member
11 NMA Leadership Battles Redistricting Efforts
Basil Zetouna Executive Member Ghassan Namou Executive Member
Sam Attisha Executive Member Wisam Moshe Executive Member
10 NMA’s Fight to Prevent Splitting of East County San Diego 12 San Diego DA Summer Stephan Invites NMA to Help Stop Organized Theft 13 San Diego DA & Sheriff Highlight Shutting Down Illegal Dispensaries 15 NMA Leadership Meets with ABC Supervising Agent in Charge Melissa Ryan 16 NMA 2021 Holiday Package Trade Show
Executive Advisory Members Mike Anderson Anheuser‐Busch Karam Toma Southern Wine & Spirits Robert Wolf PepsiCo Eric Frey Reynolds President Marlon Oram Mansour President Emeritus Arkan Somo General Counsel David C. Jarvis
18 NMA President Attends the 2021 NACS Show 18 NMA Attends 2021 Lincoln Club Annual Dinner 19 San Diego County Passes Safe Gun Storage Ordinance 19 Governor Newsom Proposes Bill Allowing Citizens to Sue Gun Manufacturers 20 California Renews COVID‐19 Supplemental Sick Leave Requirements in 2022 20 “Microbusinesses” Could Receive $2,500 COVID Relief Grants 21 California’s SB 1383 Requires Businesses to Limit Food Waste 22 Housing Values Skyrocket in 2021 23 Independent Grocery Sales Grew 17% in 2020 24 Save the Dates on Upcoming NMA Events! 25 2022 Legislative Updates 26 Historic Cigarette Sales Increase in 2020 26
NACS: FDA to Ban Both Menthol Cigarettes and Flavored Cigars
The Voice is the official publication of Neighborhood Market Association.
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SD Board of Supervisors Approve 2‐Year Home Kitchen Ordinance
To advertise contact Wallace Lynch at 619‐313‐4400 or nma@NeighborhoodMarket.org
28 Board of Supervisors Approve Plan to Tackle San Diego Homeless Crisis
27 Cigarette Warning Requirement Date Delayed Again
NEW YEAR, NEW VENTURE
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s we begin this new year, I'd like to take a few moments to reflect on the previous year and look ahead to 2022 and beyond.
I like to think that 2021 was a steppingstone for all of us as we made not only ourselves better, but we also found ways to strengthen the NMA. We were also able to go back to hosting our annual events as scheduled and in-person. While we continue to confront numerous obstacles as a result of the global pandemic, you can be certain that the NMA will continue to provide safe and useful means for us to connect and learn from one another. It's unbelievable that we'll be celebrating our 26th anniversary, but I believe our founding leaders would be proud of the accomplishments we've made as an industry and as an organization. Despite occasional setbacks interspersed among the organization's triumphs over the years, what is most amazing - and what makes the NMA community so special - is the organization's cooperative culture of collaboration and support. During the pandemic, the NMA, its members, business partners, and industry associates collaborated to exchange strategies and technologies to help each other overcome difficulties. We are excited to look for new ways in which we can better support our members. We thank each of you for your continued support of the NMA. By hearing from you, we become most effective for you. We can’t do it without you! Together, we can help each other grow. As someone who’s living proof of the big things that can come, I wish to all of our members that 2022 will bring big things to their lives.
Firas Soro Executive Chairman
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BIG THINGS HAVE HUMBLE BEGINNINGS
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he story of America is more a story of slow growth and overcoming tremendous trials and tribulations than it is one of immediate success. Success is not built overnight; it takes years and years of sowing seeds and patiently waiting to reap the fruits of all the hard work. This story of trial and error, getting knocked down and coming back up even stronger, is not an unfamiliar one to either the NMA or our members. In fact, it’s a microcosm of the path our great country has taken to get to where it is today. In the past two years, every aspect of our lives has been seemingly thrown upside down. We have each been forced to adapt to an ever-changing landscape of new rules and norms and have endured, even in the face of overwhelming challenges. As we look into our future, it’s always important to first look at our past to see how far we’ve come and marvel at the successes. Considering the many new changes our world faces, the need for the NMA has never been greater. It is essential to have an organization whose daily mission is to advocate and provide a voice to the overlooked and unseen backbone of our communities, the independent family-owned business.
As the NMA enters its 26th year, and my first as President, I foresee big things to come. To those who are currently members, my mission every day is to continue to seek out opportunities and new ways to help provide you and your business value each day. To those who are not currently a part of the NMA, I want to extend an invitation to everyone to reach out to me to discuss ways to be a part of this great organization. In just a short time so far in the NMA, I have seen the tremendous impact the NMA can provide. But that impact is only possible if we are big, and we are united. If we can, our future will only ever shine bright.
Marlon Oram Mansour President
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NMA TESTIFIES AT STATE SENATE HEARINGS OPPOSING SB 620
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n November 30th, 2021, and January 11th, 2022, the CA State Senate Committee on Governmental Organization Hearing held hearings on a proposed bill, SB 620. This bill, if passed in its original form, would have allowed all out-of-state liquor distillers to ship and sell directly to California consumers, bypassing the long-standing 3tier distribution structure. It would have a very negative impact on NMA members. President Marlon Oram Mansour provided testimony at both hearings to oppose the bill, citing the negative effects it would have on retailers, their employees, and on underage kids getting access to alcohol.
and family members and who employ over 1,500 employees. Mr. Somo stressed how the overlooked heroes during the Pandemic, the convenience and grocery store clerks, who continued work as essential workers even in the middle of a dangerous Pandemic, would be given a disservice by the passing of this bill. The bill is currently making its way to the State Assembly. Through the hard work of the NMA and its partners in liquor distribution, the bill currently will not allow large out-of-state distributors to sell directly to California customers.
Mr. Oram said, “retailers are the fabric of their community, are committed to serving the public, are involved in community organizations and religious organizations, and do not sell alcohol to minors.”
However, the legislative process could change, so the NMA will continue to monitor this and inform its members to ensure we are protected.
NMA Director of Government & Public Relations Arkan Somo gave a Public Comment, as a retailer representing 57 stores owned and operated by him
For more information, please view the current bill: https://leginfo.legislature.ca.gov/faces/billNavClie nt.xhtml?bill_id=202120220SB620
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NMA ENDORSES CALIFORNIA STATE SENATOR BRIAN JONES FOR RE‐ELECTION Senator Brian Jones Continues Support of NMA And Local Businesses The NMA has had a long-standing relationship with California State Senator Brian Jones, dating back from the time he served as a Santee City Councilmember. The NMA Board recently had a chance to speak to the Senator to discuss proposed legislation, like SB 620, that would greatly affect our members. Senator Jones made a commitment to ensure the interests of our independent family-owned businesses are always prioritized.
Wisam Moshe, Eric Frey, Saad Hirmez, Marlon Oram Mansour, Brian Jones, Firas Soro, Arkan Somo, Basil Zetouna, Vince Najor Senator Jones attended Grossmont College and earned his bachelor’s degree in Business Administration at San Diego State University. Brian pursued many opportunities including general manager at a local pizza franchise, car salesman, associate pastor, and a commercial real estate agent. As an avid constitutionalist, Brian cares deeply about freedom and liberty. Driven by his commitment to improving the quality of life in his community, Brian first found his passion for public service as a Santee City Council Member from 2002-2010 and then again from 2017-2018. Brian took this passion for his community to the state level when he was elected to represent two different districts from 2010-2016. While in the State Assembly, he focused on creating a better economic environment for small businesses and supporting our Armed Forces members and veterans. He has sponsored several notable legislative measures including his “Made in America” legislation, which makes it easier for manufacturers to do business in California, and legislation supporting the expansion of the craft beverage industry. In 2018, Brian was elected to represent California’s 38th Senate District. In the Senate, he has sponsored legislation that supports Second Amendment rights, saves court resources, and removes bureaucratic barriers for businesses and Californians. Due to the recent state redistricting changes, Senator Jones will now run for re-election in the 40th district, which includes parts of San Diego, Escondido, San Marcos, Santee, Poway, Fallbrook, Lakeside, Winter Gardens, Ramona, Alpine, San Diego Country Estate, Valley Center, Lake San Marcos, Eucalyptus Hills, Hidden Meadows, Bonsall, Harbison Canyon, Harmony Grove, Pine Valley, Descanso, Rainbow, Pala, Del Dios, and Mount Laguna.
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NMA ENDORSES KELLY MARTINEZ FOR SAN DIEGO COUNTY SHERIFF
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elly Martinez is the first female Undersheriff in the history of the San Diego Sheriff’s Department and would be its first female Sheriff. She will bring a wealth of experience and common-sense law enforcement strategies to the job. Kelly is currently serving as Acting Sheriff and has already implemented major reforms with a strong focus on transparency. She believes the community needs to know how the Sheriff’s Department operates in order to have confidence that all communities are being served fairly. Public safety begins in the communities, and a strong relationship with law enforcement is the foundation for success. Acting Sheriff Kelly Martinez is running for San Diego County sheriff, seeking to succeed Sheriff Bill Gore, after his 12 years of service. On January 20, 2022, the NMA Executive board met with the candidate and discussed issues pertaining to NMA members and the community. “I have proudly served the county of San Diego for 36 years. I've served at every rank in the Sheriff’s Department beginning as a deputy, then rising to Detective, Sergeant, Lieutenant, Captain, Commander, Assistant Sheriff, and now serving as the Undersheriff. I would be proud to serve as your next Sheriff."
Martinez expressed her support of the NMA’s leadership. Family-Owned businesses, and our local communities need the support of strong law enforcement partners. Kelly Martinez has the experience and vision to ensure our communities stay safe. The Neighborhood Market Association proudly endorses Kelly Martinez for Sheriff.
Wisam Moshe, Eric Frey, Saad Hirmez, Marlon Oram Mansour, Kelly Martinez, Firas Soro, Arkan Somo, Basil Zetouna, Vince Najor | 6 |
NMA ENDORSES AMMAR CAMPA‐NAJJAR FOR CHULA VISTA MAYOR
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mmar Campa-Najjar is running for Mayor for the City of Chula Vista. A third-generation Chula Vistan, Ammar is running for Mayor to give back to his community, the community that raised him and opened up the doors to work at the White House, US Hispanic Chamber of Commerce, and US Department of Labor. Ammar was born in East County, and like many working-class families, moved around in search of an affordable place to call home. After his father moved to Gaza when he was just 5 years old, his grandfather took his family in. After his grandfather passed away, his grandmother sold the home. Ammar then moved to Eastlake, where he attended and graduated from Eastlake High and attended Southwestern College. Growing up with a single parent, he had to work at a very young age as groundskeeper and a janitor at my church, Eastlake Church, to help his mom make ends meet. It was his faith in his mom and community that inspired him to go to SDSU, finish his degree, and commit his life to service. The NMA Board had a chance to meet and speak with the candidate about his campaign and vision as Mayor of Chula Vista. Campa-Najjar's focus would be on several main topics: economic development, public safety, and ensuring that the city of Chula Vista can attract both tourists to flock to the city for leisure, and city residents to remain and leisure in Chula Vista. Ammar plans to make bold and ambitious efforts to ensure Chula Vista continues to grow. The NMA proudly endorses Ammar Campa-Najjar to be the next Mayor of the City of Chula Vista.
Wisam Moshe, Saad Hirmez, Marlon Oram Mansour, Ammar Campa-Najjar, Marcela Miranda-Caballero, Arkan Somo, Sam Attisha | 7 |
NMA ENDORSES JORDAN MARKS FOR SAN DIEGO COUNTY ASSESSOR/RECORDER/COUNTY CLERK
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ordan Marks is running for Assessor/Recorder/County Clerk in the County of San Diego. This is a non-partisan seat with no term limits. Jordan is currently the office’s Taxpayer Advocate. Jordan is a Certified Property Tax Appraiser, which is a requirement to hold the office, and a licensed attorney in California. Jordan’s leadership and technical experience has “Saved Taxpayers Millions.” Jordan is running for Assessor to: Protect Proposition 13, a key voter initiative passed in 1978 to limit property taxes keeping property taxes affordable, predictable, and budget-friendly. Move more services online versus inline. Make sure the office treats you fairly and ensures you’re not overtaxed. Jordan started his public service as a Mira Costa College Student President and Trustee over 20 years ago. Since then, Jordan has spent the last decade advocating for San Diego homeowners, renters, and small business owners. Since joining the Assessor’s office as part of their executive team he led numerous innovative and award-winning educational programs and community partnerships that have helped homeowners and disabled veterans save millions of dollars in property taxes. He led the COVID19 relief outreach helping small business owners at a time they needed help the most. His leadership led to record high property tax relief for religious organizations, non-profits, schools, museums, and hospitals. This includes, assisting St. Peter’s Chaldean Catholic Church with a property tax refund during the pandemic. Jordan lives in San Diego with his wife, son, and puppy Max. They are active members of their synagogue. He has served his community as council president, served on the City of San Diego International Affairs Board, and is a board member of the San Diego County Hispanic Chamber of Commerce.
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SAN DIEGO CITY COUNCIL PROPOSES FLAVORED TOBACCO BAN By: Marlon Oram Mansour, NMA President
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n January of this year, the NMA learned of efforts by the San Diego City Council to propose a flavored tobacco ban, similar to the ban imposed in the County of San Diego in 2021. In only 6 months, we have seen the devastating impact the County ban has had on retailers, their stores, employees, and customers. We have heard countless stories of retailers closing their businesses, laying off employees, or having to raise the price of non-tobacco products just to get by and pay their rent. We cannot afford to have what happened in the County of San Diego happen in the city. We have engaged with NMA and non-NMA retailers, the local suppliers, and other NMA partners to ensure this does not happen. The NMA has reached out and conducted meetings with every San Diego City Councilmember to discuss issues facing our members. However, our primary focus is to do everything we can to prevent a ban from hitting retailers in the City of San Diego. The State of California will be having this issue on the ballot in November; the people will soon have a chance to decide this issue on a statewide level. On behalf of the NMA, I drafted a comprehensive letter detailing the dangers of passing such a ban and sent it to all the members of the San Diego City Council’s Public Safety and Livable Neighborhoods Committee. On February 9th, this committee held a meeting to discuss and potentially vote on whether to recommend the flavored tobacco ban. There was such a tremendous and overwhelming outpouring of opposition by retailers, customers, and local citizens that the committee was unable to take a vote. However, Councilmember Marni von Wilpert, who is proposing the ban, is now adding additional products to the ban and intends to request the Council President Sean EloRivera to put the flavor ban on the agenda for the entire City Council to vote on. Please continue spread the word to your friends and family. Contact your City Council member to tell them what this Contact the NMA office at 619313-4400 if you have any questions or want to help prevent this from happening and go to https://www.sandiego.gov/citycouncil// to contact your City Council member. We need your voices!
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NMA’S FIGHT TO PREVENT SPLITTING OF EAST COUNTY SAN DIEGO
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edistricting processes take place every ten years after the national census. District boundaries for federal, state and local elected offices are redrawn to reflect shifting populations based on the latest data from the 2020 Census.
In late 2021, the County of San Diego Independent Redistricting Commission (IRC) conducted its process to redraw the County’s five supervisorial districts. These boundaries change so the five County supervisors elected to represent those districts each serve about 650,000 residents and reflect the County’s diverse population. The process will act independently from the influence of the Board of Supervisors and reasonably represent the County’s diversity. In December 2021, The IRC voted on a map that kept El Cajon in East County but moved Rancho San Diego out of East County. Early redistricting proposals would have diluted the voice of the local communities that greatly comprise the NMA to an even greater degree than. East County is home to many ethnic groups. The proposals to shuffle neighborhoods with different backgrounds will disenfranchise certain communities. For instance, attempts to lump together the Chaldean community
with other middle-eastern communities, which is not only offensive but inaccurate. 70 years ago, the first Chaldean Christians arrived in East County. Since then, the population has grown to over 50,000 and continues to grow. Chaldeans have become a part of the fabric of the community and have helped serve that community as business owners and job creators. In East County San Diego, the communities in El Cajon, Santee, Lakeside, Alpine, La Mesa, and Lemon Grove have shared ideals and identity with one another. Splitting these communities apart and/or having these communities share new districts with residents of La Jolla or City Heights is not only confounding but will only serve to disenfranchise East County residents. The NMA strongly opposed to the redistricting proposals that would or disenfranchise communities of our member businesses and took all efforts to ensure East County remain with communities and cities with shared common interests. More than 1 million San Diego County residents, totaling 30% of the population, had their supervisor districts change as a result of the redistricting committee’s actions in 2021.
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NMA LEADERSHIP BATTLES REDISTRICTING EFFORTS The NMA’s Leadership and members living or operating businesses in East County joined in to rally against proposals to split apart communities in East County. Rallies were held in El Cajon leading up to the final Independent Redistricting Commission’s meeting. NMA President Marlon Oram spoke at 5 different redistricting committee hearings to voice strong opposition to the proposed maps and drafted and send the committee a letter on behalf of the NMA, pointing out the illogical nature of the proposals. NMA Treasurer Remon Mansour and NMA supplier member Jeff Mansour from San Diego Cash and Carry along with other members are also sounding the alarm, arguing that by dividing East County into different districts, this would divide their culture and strip them of their voices. Remon Mansour said this could do lasting damage to a community that’s grown over the years. “We chose specifically East County because its rural and has the same common interest, so we have thrived here,” Mansour said. “Now to separate us and put us in territories for example like City Heights, we don’t share any common interest.” However, while the redistricting map was finalized, legal efforts to contest the maps and process are being reviewed, and the NMA will continue to get involved and active to support its members.
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SAN DIEGO DA SUMMER STEPHAN INVITES NMA TO HELP STOP ORGANIZED THEFT
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n the aftermath of recent large-scale smash and grab thefts in California, focus has shifted to retail crime. The dramatic and disturbing trend of the “Smash and Grabs”, a type of Organized Retail Crime (ORC), is a growing problem not only for businesses but for local communities. In fact, ORC is on the rise nationwide, and California is recognized as a “hot spot” for these activities. Now more than ever, we need to fight back against these increasingly sophisticated, complex criminal networks.
San Diego DA Summer Stephan recently organized a Retail Theft Roundtable and invited the NMA, law enforcement officials, and to discuss the current state of retail theft in San Diego County and issues in accurate data collection, reporting, enforcement, prosecution, and prevention. The DA’s Office presented some key legislative and other proposals to seek community input and to learn the citizens’ ideas on effective combat strategies.
those who harm our neighborhood retail stores and small businesses and to protect the owners and employees. The digital revolution and subsequent growth in online shopping and social networking, along with increasingly lax enforcement of property crimes, have exacerbated large scale criminal theft, contributed to significant business losses for large and small retailers and greatly impacted the industry’s ability to provide jobs and keep their doors open to serve their communities. The NMA will continue to work with the DA’s Office and local law enforcement partners to combat ORC through legislative and local measures that will empower public safety and our local communities. A collaboration with our neighborhood business community to stop existing crime rings and deter future large-scale networks.
The National Retail Federation reported, in its 2020 Organized Retail Crime Survey, that in just the last two years an estimated 42% of retailers’ supply shortage comes from losses related to Organized Retail Crime. Organized theft rings pose both a safety and morale risk to store associates. The NMA is committed to working with the San Diego DA’s Office and law enforcement partners to prevent
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SAN DIEGO DA & SHERIFF HIGHLIGHT SHUTTING DOWN ILLEGAL DISPENSARIES
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A Summer Stephan and Acting Sheriff Kelly Martinez announced that law enforcement’s renewed, coordinated efforts to shut down illegal marijuana dispensaries has resulted in widespread success in East County where the bulk of the illegal dispensaries were concentrated. In 2019, there were as many as 30 dispensaries illegally operating at any given time in East County; now, it’s hard to find even one.
Illegal, unregulated dispensaries and the organized crime groups behind them make millions of dollars while paying nothing in taxes. They sell products that may contain toxic carcinogens and flood the areas in which they operate with dangerous traffic conditions and ancillary crime.
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NMA LEADERSHIP MEETS WITH ABC SUPERVISING AGENT IN CHARGE MELISSA RYAN
Rony Georges, Arkan Somo, Basil Zetouna, Firas Soro, Tony Konja, Melissa Ryan, Molly Sylvester, Marlon Oram Mansour, Sam Attisha, Steve Mattia, Wisam Moshe
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n November of 2021, the Neighborhood Market Association’s Board of Directors held a special meeting with Department of Alcoholic Beverage Control’s (ABC) Supervising Agent in Charge Ms. Melissa Ryan.
This meeting had many purposes: to introduce the ABC to the new NMA leadership, to discuss issues facing NMA members, and to learn about new focuses of the ABC. The NMA’s leadership expresses their utmost gratitude to Ms. Ryan and ABC staff for their continued commitment to work with the NMA, educating retailers with updates in legislation and departmental rules that help keep retailers compliant with laws and our communities safe. Ms. Ryan highlighted the importance of continuing to protect communities through education and by administering preventive programs that comply with California’s alcoholic beverage laws. Keeping communities safe is a collaborative effort that involves everyone. One of the many issues discussed during the meeting were the proactive involvement of ABC towards
licensees in areas of compliance. We addressed the challenges small businesses face when competing with larger chain retailers in overly aggressive pricing. The question of to-go cocktails and mixed drinks delivery and how it would affect small businesses was discussed. Also, the NMA Board brought up issues of online third-party delivery services with regards to potential issues of youth access to alcohol products. Ms. Ryan wanted to stress one major point to NMA retailers: for the sale of alcohol online, retailers MUST ship from their licensed premises. They cannot ship the alcohol from their non-licensed warehouses. The NMA truly appreciates the time taken by the ABC leadership to address the issues our members regularly face. The meeting was very helpful, and the NMA Board was extremely pleased with the information provided to help NMA members comply with the law. Not only will the NMA Board apply what we've learned to our own businesses, we will also ensure that our members are well informed for their businesses as well.
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NMA 2021 HOLIDAY PACKAGE TRADE SHOW HOSTED BY RNDC, RECORD TURNOUT! On October 21st 2021, the NMA held its Annual Holiday Package Trade Show at the Town & Country Hotel and Resort. This event was hosted by RNDC. After a year of absence due to the COVID pandemic, we had a record number of 94 suppliers attending the event. Several hundred retailers attended the show to score wonderful discounts on various products. Retailers also won raffle prizes including Apple Airpods, Speakers, TVs, gift cards for dinner, and three free NMA memberships. The NMA is glad to be able to get back on track and help host in-person events. Without the tremendous support and hard work from the RNDC team and NMA supplier and retailer members, this show could not be the success it was. This annual event combined some of the most important benefits NMA offers to retailers and its members: saving retailers money and providing an opportunity to network with other retailers and suppliers to help expand their businesses. This year’s event had our most diverse list of suppliers. There were booths selling food, tobacco products, alcoholic and non-alcoholic beverages, store equipment, financial and banking services, and gas station services. Attendees expressed that the show was a resounding success.
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NMA 2021 HOLIDAY PACKAGE TRADE SHOW
The NMA thanks RNDC and their staff and suppliers that attended the NMA Annual Holiday Trade Show. The NMA also would like to thank its suppliers for their support: Blue Bunny, Continental Express Money Orders, Hempacco Packaging, San Diego Cash & Carry, San Diego Business Advisors, Weird Beverages, and Western Pump.
Don’t miss out on our next Holiday Package Trade Show in October 2022! | 17 |
NMA PRESIDENT ATTENDS THE 2021 NACS SHOW NMA’s president, Marlon Oram Mansour, attended the 2021 National Association of Convenience Stores (NACS) Show on October 5-8 in Chicago, Illinois. The live and in-person 2021 NACS Show delivered four days of networking, education, and exploring new developments in the convenience and fuel retailing industries. Despite businesses having a difficult year, NACS representatives and show attendees were optimistic. Both retailers and consumers are keen to return to more routine. Many people are beginning to recognize that the new normal necessitates the ability to react to rapid change.
The show kicked off with a motivational speaker, Jennifer Powers. Over the last year, there have been many changes and needs to adapt to those changes and challenges. Many of these “shifts” won’t be easy, but Powers recommended remembering that you’re in control and that there is power in the shift. You can choose to do something or do nothing. The NMA president enjoyed meeting with industry leaders at NACS 2021, feeling the crowd’s positive energy, and looking forward to the future.
NMA ATTENDS 2021 LINCOLN CLUB ANNUAL DINNER The Lincoln Club of San Diego County hosted its 37th Annual Dinner on November 9th, 2021, at US Grant Hotel. The NMA was honored to be a part of this event. The event featured keynote speaker, former U.S. Navy fighter pilot turned U.S. Representative, Congressman Mike Garcia, as keynote speaker. The dinner had a special recognition of the former California Governor and San Diego Mayor Pete Wilson. The dinner celebrated two anniversaries: his 50th anniversary as being elected San Diego Mayor and his 30th anniversary being elected as California’s Governor. The NMA would like to thank the Honorable Martin W. Garrick, the Chairman of the Lincoln Club of San Diego County, for hosting such an amazing event. | 18 |
SAN DIEGO COUNTY PASSES SAFE GUN STORAGE ORDINANCE The County of San Diego Board of Supervisors passed an ordinance requiring safe storage of guns. The new law takes effect on Feb. 25, 2022. It requires all guns in homes or structures near a home to either be secured with a trigger lock or be locked away in a container. The only exception is if the firearm is within the immediate control of an authorized person. “Safe firearm storage saves lives and prevents gun violence,” said Nathan Fletcher, Chair of the San Diego County Board of Supervisors. “Last year we introduced the measure. Earlier this year the rules were finalized, and now we’re delivering on our promise. The common-sense, safe storage guidelines that go into effect in our unincorporated areas will keep families safe, especially children.” Acting Sheriff Kelly Martinez said, “Gun locks are an important safety measure that can provide critical time between someone having an impulse and taking action.” Data from the Centers for Disease Control and Prevention shows 117 children and teenagers were unintentionally killed with firearms, and more than 1,160 children and teenagers took their own lives by using firearms in the United States in 2019. In that same year, 54 children and teens died by suicide in California due to the use of firearms. Studies have demonstrated the risk of suicide is higher in homes where a firearm is kept loaded or unlocked. The ordinance applies to all unincorporated areas of San Diego County. The safe storage of guns is part of an ordinance passed in January 2022 that also regulates non-serialized firearms and non-serialized pre-cursor firearm parts, commonly known as ghost guns.
GOVERNOR NEWSOM PROPOSES BILL ALLOWING CITIZENS TO SUE GUN MANUFACTURERS Governor Gavin Newsom announced a new package of gun safety legislation to expand the state’s nation-leading protections against gun violence. The package includes a measure the Governor called for in December 2021 to hold the gun industry accountable through private lawsuits, and a bill that would prohibit advertising of certain categories of weapons to children. “California will continue to lead the fight to end gun violence with bold action to tackle the national crisis putting millions of Californians at risk,” said Governor Newsom. “It’s time to go on the offensive with new measures that empower individuals to hold irresponsible and n egligent gun industry actors to account, crack down on shameful advertising that targets our kids and more. This is not about attacking law-abiding gun owners – it’s about stopping the tragic violence ravaging communities across the country.” The package of bills is modeled after the recent Texas state law, which allows citizens to sue abortion providers who violate the state’s new abortion law.
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CALIFORNIA RENEWS COVID‐19 SUPPLEMENTAL SICK LEAVE REQUIREMENTS IN 2022 Governor Newsom signed SB 114 into law on Feb. 2, 2022, the bill requiring employers with 26 or more employees to provide 40 hours (or, in some cases, up to 80 hours) of supplemental paid sick leave to employees affected by COVID-19. Employers must comply with the law beginning February 19. Although compliance is not required until February 19th, the law is retroactive to January 1, 2022, and extends through September 30, 2022. Employers must grant 40 hours of COVID-19 supplemental paid sick leave to an employee if the employee is full-time or was scheduled to work an average of at least 40 hours/week in the two weeks preceding the date the employee takes the leave. For other employees, the total amount of hours is based on their weekly schedule or average weekly hours. Employers must also note COVID-19 supplemental paid sick leave separately from traditional paid sick days and must provide an employee with written notice that states the amount of COVID-19 supplemental leave that an employee had used through a pay period on either the employee’s itemized wage statement or in a separate writing. The new law requires the Labor Commissioner’s office to create and provide access to the poster no later than February 16, which means employers should regularly check the Labor Commissioner’s website to obtain the poster. Once the poster is available, employers must post it in a conspicuous location at each worksite and provide it to employees working remotely. Employers are expressly authorized to provide the poster via email to their remote workforce.
“MICROBUSINESSES” COULD RECEIVE $2,500 COVID‐19 RELIEF GRANTS “Microbusinesses” across San Diego County hurt by COVID-19 could soon be getting $2,500 boosts after County supervisors approved a grant program funded in part by the California Office of the Small Business Advocate. Supervisors unanimously approved giving the $2,500 grants to help up to 1,550 microbusinesses, defined as earning less than $50,000 in 2019, being the owner’s primary source of income and having five or fewer employees, currently and in the past three years. Board Chair Nathan Fletcher said even though COVID-19 restrictions and limitations on businesses ended last summer, the grant program would help small businesses that are still feeling the pandemic’s effects. The grants are planned to be distributed equally among the County’s five supervisorial districts, aided by outreach at events, farmer’s markets and libraries, and through community groups and door-to-door canvassing. Microbusinesses may be eligible for the $2,500 grant if their business: Was started before Dec. 31, 2019, is the owner’s primary source of revenue, and is currently operating or has a plan to reopen Generated less than $50,000 in revenue in the 2019 tax year Currently has 5 or fewer full-time employees and had 5 or fewer employees in 2019-2021. Was significantly impacted by COVID-19 Has not previously received any grant money from the California Small Business COVID-19 Relief Grant Program The County’s grants must be distributed in 2022. The first application process will run from Feb. 15 to March 31st at 5pm. If there is grant money left after the first round, additional application periods will be held.
Applications can be submitted online starting Feb. 15. | 20 |
CALIFORNIA’S SB 1383 REQUIRES BUSINESSES TO LIMIT FOOD WASTE On January 1st, 2022, SB 1383 came into effect, setting many requirements for California food providers. The law currently impacts wholesale food vendors, food service providers, food distributors, and grocery stores and supermarkets 10,000 square feet or larger. It requires: 1) businesses to recover the maximum amount of surplus, edible food that would otherwise be discarded; 2) businesses to partner with local food recovery organizations via written contracts to distribute the surplus food; and 3) maintain records of all food recovery activities as routine inspections will be made. The law is intended to protect the environment and limit food waste. On January 1st, 2024, the law’s requirements will expand to other types of food providers, including hotels, restaurants, and large events. For more information on this new law, its requirements, and local food recovery organizations, please visit: https://www.sandiego.gov/environmental-services/recycling/sb1383
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HOUSING VALUES SKYROCKET IN 2021 Southern California, Phoenix, and Las Vegas among Highest Risers Home buys are in full swing, driving up prices as anxious buyers outnumber sellers. Surveys indicate homeowners could be hesitating due to the resurgence in COVID-19 cases and employers’ uncertainty about post-pandemic work arrangements. Economists believe rising mortgage rates could be what slows or stops these great increases, but demand has proven persistent. In San Diego, home prices rose to $834,199 – up 23.6% year over year, far outpacing national growth. House inventory fell by nearly 30%, also ahead of the national pace.
Phoenix – 31.8% to $427,451 Las Vegas – 26.8% to $395,943 Los Angeles – 17.9% to $868,350 Riverside – 26.2% to $534,393
In the U.S., the typical home value is $320,662, almost 20% higher than in December 2020. The annual growth rate represents an all-time high in at least 20 years. Nationally, buyers shopping in December had 19.5% fewer homes to choose from than they did a year before, when inventory was already at a record low. Some economists suspect
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INDEPENDENT GROCERY SALES GREW 17% IN 2020 High consumer demand triggered by the COVID-19 pandemic fueled a 17% average comparable sales gain among independent supermarket operators last year, the National Grocers Association (NGA) reported.
fewer trips to stores but spending more, with independents getting 13.3% higher sales in the first half of 2020.
Adjusted for elevated levels of inflation, independent grocery industry comp sales still rose 13.5% for the 2020 fiscal year ended March 31, 2021, according to the 2021 Independent Grocers Financial Survey, a joint study released Wednesday by NGA and financial consulting partner FMS Solutions, easily surpassing the sector’s 2.5% comp sales growth in 2019. Driving the upsurge was a boost in transaction size to an average of $31 and a “big upswing” in online orders. Customer stockpiling at the onset of the coronavirus crisis set a tone for shoppers making
Center-store grocery, dairy, frozen items, and meat were the leading sales by product category, per the study. The robust sales growth helped improve margins across departments to 28.4% last year from 28% in 2019, with the largest gains seen in dry grocery; dairy; general merchandise and health and beauty aids; and beer, wine, and liquor. Although independent operators grappled with higher expenses brought on by the pandemic — including enhanced cleaning, implementing new safety gears, bonus and appreciation pay, overtime, and hiring and retention costs — sales gains accelerated faster, the research showed.
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SAVE THE DATES ON UPCOMING NMA EVENTS!
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2022 L E G I S L A T I V E U P D A T E S SB 8: extends the provisions of the Housing Crisis Act of 2019 through 2030 to accelerate the approval process for housing projects and curtail local governments’ ability to downzone, among other provisions.
CALIFORNIA
SB 9: facilitates the process for homeowners to build a duplex or split their current residential lot. AB 793: a new law in California, passed unanimously by the California legislature and signed into law by California Governor Gavin Newsom on August 28, 2020, that requires all plastic bottles covered by the state's container redemption program to average at least 15% post-consumer recycled resin, starting in 2022. AB 701: establishes nation-leading transparency measures for companies to disclose warehouse production quota descriptions and prohibits the use of algorithms that disrupt basic worker rights. AB 1003 expands an employer’s potential liability for intentional wage theft under California’s Penal Code. The bill permits an employer to be convicted of “grand theft” for theft of wages exceeding $950 for one employee, or $2,350 in the aggregate from two or more employees. The bill requires that the theft be intentional, through fraud and while knowing that the wages are due to the employee. The bill also defines “wages” to include “wages, gratuities, benefits, or other compensation". Independent contractors are also considered employees. SB 62: alters payment practices of employers in the garment manufacturing industry; prohibits garment manufacturers from paying employees by piece rate; however, SB 62 does not apply to workplaces covered by a collective bargaining agreement, wherein employees must be paid no less than the applicable minimum wage. SB 639: Industrial Welfare Commission issued licenses authorizing employers to employ persons with disability for less than the mandated minimum wage will be phased out by January 1, 2025. Beginning January 1, 2022, the issuance of new licenses is prohibited. By January 1, 2023, stakeholders currently holding licenses must deliver a plan to the legislature for transitioning disabled employees working under these licenses to other types of employment. By January 1, 2025, it will be illegal to pay an employee with disabilities less than the minimum wage irrespective of prior license status.
SB 10: creates a voluntary process for local governments to implement streamlined zoning for new multi-unit housing near transit or in urban infill areas. AB 1033: Under the California Family Rights Act ("CFRA"), eligible employees are permitted to take up to 12 weeks of leave annually to provide care to family members, including parents, with serious medical conditions. Effective January 1, 2022, AB 1033 expands CFRA’s definition of “parent” to include parents-in-law.
NEVADA
AB 321: Mandates mail ballots for all active voters and changes deadlines for early voting, the primary, general elections and ballot processing procedures. AB 118: Children must be secured in a rear-facing car seat until at least the age of 2. Children under the age of 6 years old and shorter than 57 inches tall must now ride in a car seat according to the new law. AB 304: Expands annual peace officer training on mental health issues to include crisis intervention and deescalation.
ARIZONA Prop 206: From 2016 legislation, minimum wage increases to $12.80 to reflect cost of living for 2022. SB 1828: State income tax brackets will change from 4 to 2 brackets. The income tax rates also change and simply filing taxes for Arizonans.
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HISTORIC CIGARETTE SALES INCREASE IN 2020
A
nnual cigarette sales increased for the first time in two decades from 2019 to 2020, according to the Federal Trade Commission's (FTC) reports. Money spent on cigarette advertising also increased from 2019 to 2020. The FTC also found that smokeless tobacco sales rose in 2019 from 126 million pounds to 126.9 million pounds in 2020. The revenue from those sales rose year over year from $4.53 billion to $4.82 billion. Spending on advertising by major manufacturers of smokeless tobacco products in the United States decreased from $576.1 million in 2019 to $567.3 million in 2020. As with cigarettes, price discounts made up the two largest spending categories, with $296.6 million paid to retailers and $83.5 million paid to wholesalers. Combined spending on price discounts totaled $380.1
million — or 67.4 percent of all spending in 2020, up from the $376 million spent in 2019. The commission's data also included information on smokeless tobacco flavors. Menthol flavored smokeless tobacco products comprised more than half of all sales revenues (54.5 percent); tobacco flavored products (no added flavor) comprised 43.4 percent; and fruit flavored smokeless tobacco products comprised 2.5 percent. Even with this historic increase in sales, some retailers, like Walgreens, are rethinking selling tobacco products.
NACS: FDA TO BAN BOTH MENTHOL CIGARETTES AND FLAVORED CIGARS The FDA announced it plans to issue proposed rules on two tobacco product standards—one prohibiting menthol as a characterizing flavor in cigarettes and another prohibiting all characterizing flavors (including menthol) in cigars—by spring 2022.
due to a ban. NACS is on record opposing menthol bans as we believe illicit vendors will quickly source and begin selling foreign and counterfeit menthol cigarettes. Illicit vendors do not verify age, do not collect and remit taxes, and they sell other illegal products beyond cigarettes.”
In the convenience retailing channel, cigarettes contributed 27.79% of in-store sales in 2020, according to the NACS State of the Industry Report of 2020 Data. Other tobacco products, a category which includes cigars, accounted for 6.90% of in-store sales in 2020, NACS SOI data indicate.
Two menthol cigarette brands, Newports and Kool, are widely sold across the convenience landscape and count among the top 10 best-selling cigarette brands.
NACS and other industry groups argue that banning menthol tobacco products will push them into the black market. The NMA strongly agrees and opposes a ban on these products. A ban will only push consumers to resort to more dangerous and less regulated alternative sources to get these products. “Menthol makes up more than 37% of the tobacco market,” said Lyle Beckwith, NACS senior vice president of government relations. “That demand will not go away
NACS notes that there will be an opportunity for retailers to make their voices heard. Some cities who have imposed bans predict their cities will lose at least $13.9 million in tax revenue over the next four years. Previous bans on flavored tobacco and menthol have backfired and only pushed consumers to cross state lines.
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CIGARETTE WARNING REQUIREMENT DATE DELAYED AGAIN The U.S. District Court for the Eastern District of Texas again has issued an order to postpone the effective date of required warnings on cigarettes until April 9, 2023, according to the U.S. Food and Drug Administration (FDA). Any obligation to comply with a deadline tied to the effective date is similarly postponed, according to the FDA, but the FDA encourages entities to submit cigarette plans as soon as possible but no later than June 10, 2022. The final rule requires cigarette manufacturers to include graphic health warnings on cigarette packaging and advertisements. According to the final rule, “new cigarette health warnings must appear prominently on packages and in advertisements, occupying the top 50 percent of the area of the front and rear panels of cigarette packages and at least 20 percent of the area at the top of cigarette advertisements.” In addition, retailers of cigarettes are responsible for ensuring those health warnings are visible to the public and unobscured. In terms of packaging requirements, retailers of cigarettes will not be in violation of the final rule if the
cigarette packaging: (1) contains a warning; (2) is supplied to the retailer by a licensed manufacturer or distributor; and (3) is not altered by the retailer. However, retailers are responsible for ensuring that the health warnings are visible on packages and unobscured by stickers, sleeves or other materials. Retailers will not be in violation of the advertisement requirements if that retailer receives the advertisements from a cigarette manufacturer or distributor. However, if retailers are creating the advertisements, then they must ensure the health warnings meet the new requirements. The new requirement for graphic warning labels on cigarette packs was initially slated to take effect June 18, 2021. More details on the rule, as well as the new effective date and recommended date for submission of cigarette plans, can be found on the FDA website.
SD BOARD OF SUPERVISORS APPROVE 2‐YEAR HOME KITCHEN ORDINANCE The San Diego Board of Supervisors unanimously approved a two-year temporary authorization of an ordinance allowing people to legally operate “minirestaurants” out of their homes. They could serve as many as 30 in-person, take-out, or delivery meals a day, with a maximum of 60 meals a week. County staff will study the effects and bring back the data to the Board before the ordinance expires for consideration on whether to make this law permanent. Supervisor Joel Anderson brought a request to draft an ordinance for microenterprise home kitchen operations, or MEHKOs, to the Board in September 2020. He said home kitchens wouldn’t compete with established restaurants but would help local communities, the economy, and people with cooking skills trying to make ends meet. Anderson said it provides a great service to communities “because people
are getting quality food from their neighbors.” “On every level I just believe this is a terrific program,” Anderson said. This bill gives aspiring restaurateurs a way to earn a living and test their skills for an overall startup cost of about $740, rather than spending an estimated $275,000 cost to open a storefront. They would also provide healthy, homecooked meals for communities that don’t have lots of restaurants or that lack access to healthy food. Some restrictions will include: They must be operated by a resident living in the home or apartment They cannot have more than one full-time employee excluding family members. Food must be prepared and served on the same day and sold directly to consumers. They’re limited to $50,000 in sales a year. They cannot operate as caterers, temporary event vendors, mobile event vendors or cottage food operators that prepare and sell packaged foods. Home cooks will be required to submit an application, earn a food safety manager certificate, pass an initial inspection, and undergo annual inspections.
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BOARD OF SUPERVISORS APPROVE PLAN TO TACKLE SAN DIEGO HOMELESS CRISIS
T
he San Diego County Board of Supervisors unanimously approved a long-term plan, including community partnerships, to tackle the growing homelessness crisis. According to the county’s Health & Human Service Agency, the Framework for Ending Homelessness has five elements:
a person-centered approach to ensure “that services and programs are created in culturally sensitive ways to address the needs of vulnerable populations, including the LGBTQ community, older adults, veterans and foster youth.” a data-driven approach to create more effective, equitable and focused outcomes. collaboration with other jurisdictions, services providers, community partners and stakeholders. a sustainable approach to ensure housing stability through a variety of financial investments. ensuring racial and social equity as part of homeless prevention.
While no immediate cost figures were available, the county will seek funding from the state, and continue to use U.S. American Rescue Plan Act money for services such as eviction counseling and outreach/prevention, and direct cash assistance. Supervisors also unanimously directed a submission of quarterly reports on how homeless programs are going. They also formally received an update on the Department of Homeless Solutions and Equitable Communities. Supervisor Jim Desmond said he would support the plan but stressed that unincorporated areas should not be a dumping ground for homeless people. Desmond also called for more effective ways to deliver drug addiction treatment, including incentives for those wanting to recover. “We’ve kind of gone from one extreme of the war on drugs, to another extreme with addicts living on streets,” Desmond said. “We’ve got to find something in between.” He said if someone is hit by a car, paramedics come and immediately help. But if residents see someone screaming in the bushes or defecating on the street, they either ignore or accept it, “and I think we’re better than that,” Desmond said. A “housing first” policy allows people to continue their addictions, and shelters shouldn’t be a revolving door. Board Chairman Nathan Fletcher said he was encouraged by the new framework but reminded Desmond that in September 2020 the previous board voted down a proposed housing project in La Mesa. The framework’s programs will be a real test, Fletcher said. Desmond countered that he voted against the La Mesa project because it was “crammed down our throats,” and that the board learned a lesson about working with a community. | 28 |
Supplier Directory BANKING Bank of America Bank of America Merchant Services Hanmi Bank Neighborhood National Bank
Ali Arman Evian Anguis Nizar Dahdouh Nora Seiba
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GRAPHIC DESIGNER Coyote Press Graphics
Victoria Vinton
(520) 818‐6495
victoria@coyotepressgraphics.com
ICE CREAM & ICE SUPPLIERS Blue Bunny San Diego ICE Company
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PRINTING & PUBLISHING PIP Printing
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TOWING SERVICES USA Towing & Recovery
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basilraffo@yahoo.com
UNIFORMS SERVICES UniFirst
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(800) 225‐3364
Jesse_Daggett@unifirst.com
WHOLESALERS FOR GROCERIES, MERCHANDISE & TOBACCO PRODUCTS Altria Hempacco Packaging Reynolds San Diego Cash & Carry Trepco West West Coast Hookah & Glass
Donna Golshan Sandro Piancone Eric Frey Jeff Mansour Al Paulus Remon Mansour
(206) 985‐7777 (775) 473‐1201 (336) 741‐3283 (619) 441‐9842 (619) 690‐7999 (619) 444‐1053
Donna.S.Golshan@altria.com spiancone@hempaccopackaging.com FREYE1@rjrt.com jeff@mysdcc.com al@trepco.com info@westcoasthookah.com
WINE & SPIRITS SUPPLIERS Anheuser‐Busch Gallo Wine IDG Wines Ranch Rider Spirits Republic National Distributing Company Southern Glazers Wine & Spirits
Mike Anderson Steve Kozar Rodolfo Rubalcava Andrew Baker Scott Blackburn Neil Sorensen
1 (800) 200‐2353 (858) 547‐0204 (619) 301‐1099 (949) 939‐0802 (858) 537‐2808 (714) 724‐7929
mike.anderson@anheuser‐busch.com stephen.kozar@gallowineco.com rodolfor@idgwines.com abaker@ranchriderspirits.com Scott.Blackburn@rndc‐usa.com neilsorensen@sgws.com
NMA Urges Its Members to Support Our Supplier Members by Utilizing Their Products and Services. | 29 |
Local, State and Federal tobacco taxes and restrictions on the sale of tobacco products can hurt your business. Governments often pass new laws quickly, so you need to stay informed about what is happening in your area. You and your business matter and making your voice heard is crucial to our success in fighting for fair tobacco policies.
Scan the QR Code with your phone to take a survey and learn more about how to stand up for your business.
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