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August 1: Chicago Energy Benchmarking Reporting Deadline Owners of certain commercial buildings What Are the Direct Costs to verify data – there may be no direct located within the City of Chicago must Associated With Compliance? costs. comply with the new City of Chicago • For IFRA members who do not have in- Building Energy Use Benchmarking In addition to time needed to gather house staff who hold accepted credentials Ordinance by August 1, 2015. energy and property data, in 2015, designated by the City to verify reported the first year (and every third year Who Must Comply? data, they, minimally, may incur out-of- thereafter), buildings must have data pocket costs to hire a third party to verify The Ordinance requires commercial reviewed by a City-certified in-house data. and municipal buildings with between or third-party professional engineer, 50,000 and 250,000 square feet and licensed architect, or other trained Where Can I Find More residential buildings with over 250,000 individual to verify that data has been Information About square feet to submit verified reports on tracked and reported correctly. The cost Benchmarking Requirements? whole-building energy use and specific for this service varies according to the building attributes. The City has issued number and complexity of the buildings Visit www.cityofchicago.org/ "2015 Notice of Upcoming Obligation to under consideration. energybenchmarking. If you own a Comply" notices to applicable property • For IFRA members with in-house commercial building located in the City of owners over the past few weeks. staff who can be assigned to gather Chicago that is 50,000 square feet or larger and report required building attri- and you did not receive notice from the When Must Buildings Comply? butes and energy usage, and also who City of Chicago, contact the Help Center Property owners must file their 2015 have in-house staff who hold licenses at: [email protected] or reports by August 1, 2015. Starting in call (855) 858-6878. or certifications required by the City continued page 5 2 2016, annually updated reports must be filed before June 1.

Inside IFRA –GMA Annual Conference Wed.-Thurs., October 7-8, 2015 2015 FMI-FIAE-NGA Washington Conference...... Pages 2-4 New Location: Glen Ellyn Village Links Golf Course and Drury Lane, Oakbrook Terrace Dairy Academy...... Page 5 Mark your calendar for the IFRA-GMA Annual Conference, Wednesday and Legislative Update...... Pages 6-7 Thursday, October 7-8. This year's golf outing will be held at the Village Links, Glen Ellyn, and our educational programs and Expo will be at Drury Lane. See page 8 for more details. More program information and registration forms will be mailed to you and is also available on our website. FMI-FIAE-NGA Washington Conference he Annual Washington Public In addition, the industry health coverage. On January 8, 2015, Affairs Conference, sponsored operates, on average, at a one-percent the House of Representatives passed by the Food Marketing margin, so health coverage and H.R. 30 to raise the ACA “full-time” Institute, Food Industry compliance costs affect grocery stores’ threshold to 40-hours/week. Similar TAssociation Executives and the National ability to maintain quality employee legislation (S. 30) has been introduced Grocers Association, was held April 15- benefits, a robust workforce and by Senators Susan Collins (R-ME) and 16, 2015. Over 250 retailers, wholesalers competitive consumer prices. Joe Donnelly (D-IN) in the Senate. and state association executives gathered ACA Full-Time Definition Removing ACA Mandatory Auto in Washington D.C. to address a number of key issues affecting our As the supermarket industry has Enrollment industry. undergone compliance with the ACA’s The ACA’s mandatory auto-enrollment 2015 employer mandates, many provision (Sec. 1511) is unnecessary Our sincere thanks to the following grocery stores have had to minimize the and redundant with other ACA IFRA member companies who potential for unintended tax penalties provisions, as well as other benefits and participated in the labor laws, and would Conference: Affiliated result in employees Foods Midwest, who are double- Associated Wholesale enrolled in coverage Grocers, with both employers Stores, Hy-Vee, and employees paying Leamington Foods, premiums for coverage Niemann Foods, the employee does not Potash Markets and want or will not use. SuperValu. The IFRA delegation Menu Labeling met with Senator Expansion Richard Durbin, On December 1, 2014, Senator Mark Kirk, FDA published final Congressman Rodney regulations that expand Davis, Congressman a chain restaurant menu Adam Kinzinger, labeling law (§ 4205 Congressman P.L. 111-148) to capture John Shimkus and Left to right: Gerry Kettler-Niemann Foods, Bob Wiegert-, Steven grocery stores. While legislative assistants Harris-FMI, Brian Jordan-IFRA, Ken Casaccio-Leamington Foods, Art the menu labeling law to Congressman Potash-Potash Markets, Senator Dick Durbin, Brendon Cull- and was adopted to provide Mike Quigley, Matt Foley-NGA. chain restaurants with Congressman Danny Davis, 20 or more locations preemption from Congresswoman Tammy Duckworth that could be assessed under the ACA, various state and local menu labeling and Congresswoman Robin Kelly. A if part-time employees work more laws, FDA’s final regulations regulate number of key issues affecting our than 30 hours per week. Rather than grocery stores, general merchandise industry were discussed including: allowing store managers and employees stores and many other non-restaurants to make scheduling decisions based on to conduct nutrition analysis, labeling Supermarket Priorities in the staffing customer service or employees’ and significant recordkeeping for any Affordable Care Act (ACA) availability or temporary desire for extra “restaurant-type” food by December The Patient Protection and Affordable or fewer hours, stores need to safeguard 1, 2015. Initial compliance will cost Care Act (ACA; PL 111-148) remains themselves to the limitations of the law’s the supermarket industry hundreds of a challenge for food retailers and existing 30-hour per week threshold. The millions of dollars. The rule will also wholesalers, an industry that employs Congressional Budget Office estimates dramatically reduce consumers’ food 3.5 million people – many operating that increasing the ACA “full-time” choices, particularly fresh, minimally under variable schedules based on threshold will increase workers’ take- processed options. FDA has not employee needs and customer demand. home pay with negligible impact on provided enough time or guidance for

© Food Retailers Association/Page 2 more adequate time for federal, state and municipal health officials to review, collaborate and train to ensure consistent regulatory oversight is aligned with the simultaneous release of FDA nutrition labeling regulations for vending machines, and is consistent with the compliance timeline granted by FDA for past implementation of the Nutrition Labeling and Education Act (NLEA). Other concerns include: n Removing ACA’s mandatory auto- enrollment (Sec. 1511) n Streamlining employer reporting requirements n Protecting voluntary employee well- Gerry Kettler and Congressman Adam ness programs (H.R. 1189/S. 620) Kinzinger Brian Jordan, Art Potash, n Restoring access to over-the-counter representation election procedures, the Congressman John Shimkus and Ken (OTC) medicines (H.R. 1270/S. so-called “ambush elections” regulation, Casaccio. 709) and the Department of Labor’s (DOL) to meet the December 1, n Providing relief from ACA fees and highly anticipated initiative on overtime 2015, enforcement deadline by federal, taxes to employers offering health rules. The DOL regulation will likely state and local officials, or customer and coverage make significant changes to how media inquiries. n Addressing ACA 30-Hour Work much employees must be paid if the Department’s rulemaking downgrades FDA needs to provide additional time Week certain workers from supervisory status for the supermarket industry to receive Labor Policy to non-exempt, which would make them and review agency guidance for menu eligible for overtime pay under the Fair labeling at supermarkets, grocery stores Supermarket Industry Impact Labor Standards Act (FLSA). and similar retail food establishments The supermarket industry and the rest of and move the enforcement date to the employer community are faced with Ambush Election Rule December 1, 2016. Providing a two- the National Labor Relations Board’s The NLRB’s “ambush election” final year compliance period also provides (NLRB) final rule relating to union rule, which is scheduled to become effective April 14, 2015, would dramatically shorten the timeframe for a union election from the current average of 38 days, down to as little as 10 days. This abbreviated schedule would effectively hinder an employer’s ability to communicate with employees about the pros and cons of unionization. Moreover, the Board’s “ambush election” rule undermines worker privacy, since it would require employers to disclose the names, home addresses, phone numbers and e-mail addresses of workers — as well as other sensitive personal

continued 2 Ken Casaccio, Caleb Gilchrist of Congressman Danny Davis' office, Art Potash and Brian Jordan ©Illinois Food Retailers Association/Page 3 FMI-FIAE-NGA Washington Conference continued and could result in being downgraded to non-exempt status. There is also additional uncertainty surrounding how individuals in these affected positions would document that they are spending a majority of their time performing managerial type activities in order for these persons to remain exempt and be able to continue as part of the company’s management team. Data Security Protecting sensitive consumer information and payment data is a top priority for merchants. The Food Marketing Institute (FMI) and National Grocers Association (NGA) Art Potash discusses issues affecting his company, employees and community are fully engaged in working with with Senator Durbin. Congress to craft strong legislation that will create one national data security and breach notification information — to union officials prior year, to as much as $42,000 or more standard. This important legislation to an election. annually. The salary wage threshold was will remove the patchwork of varying last updated in 2004 under President security and notification requirements DOL Overtime Initiative Bush when it was raised from $8,000 to across forty-seven states. The Department of Labor’s (DOL) its current level of $23,650. In addition to creating a national regulatory initiative on overtime is In addition to raising the salary standard, all links in the payments expected to raise the salary threshold threshold, the DOL is expected to chain must commit to reducing for exempt employees from its current propose changes to the current primary the value of this information to the level of $455 per week, or $23,650 per duties test that would require exempt criminals on the front end. Grocers employees to spend a are encouraged by emerging solutions majority of their time that devalue payment card data performing “exempt” making it unusable for criminals; type activities, such these include end-to-end encryption, as supervising other tokenization, and elimination of the employees or having easily counterfeitable magnetic stripe. specific managerial Additionally, card issuers must stop responsibilities to hire, ignoring the benefits of chip and promote, evaluate or PIN technology, which was proven fire an individual. It is a to reduce fraud in the U.K. by 36 concern that the primary percent. According to the U.S. Federal duty test, if defined Reserve, the benefits of PINs are as “direct supervision” clear; adding a PIN to a debit card for the “majority” of a transaction makes it 700 percent more person’s time, would secure than transactions authorized by impact numerous store a signature, which can easily be forged. level, warehouse and administrative positions Enjoying a tour of the Capitol Rotunda

©Illinois Food Retailers Association/Page 4 Dairy Academy Aims to Increase Food Retailer Dairy Sales he Midwest Dairy Association safety and quality, sustainability, etc.). out of the store. The classroom training is pleased to offer a special dairy Other topics that are covered include and firsthand experience of a processing training program for members properly managing dairy product plant and dairy farm provides Tof the Asssociation. This special inventory and reducing product waste. invaluable education and networking program, available in two different opportunities. Dairy Academy is available in two training options, is designed for formats and we would like your store managers and dairy department Option 2: Online Dairy feedback to decide which training managers. method is best for Academy The goal of the IFRA members: This is a one-hour interactive course Dairy Academy that can be taken on any computer, training program Dairy Academy is Option 1: In- covering all of the same topics that is to increase dairy available in two formats person Dairy are covered in the full day session, but condensed into an hour course. sales and increase and we would like your Academy consumer confidence Both programs include a quiz at the This is a one day in dairy products. feedback to decide which end of the program and a certificate of mobile training This is achieved training method is best completion. program that includes by gaining an for IFRA members. three segments: If you are interested in learning more understanding of classroom training about the Dairy Academy training the dairy product and tours of both that is available to you, please take five lifecycle from farm a dairy farm and minutes to provide your input via the to processing to a dairy processing facility. The time survey link found on the homepage of fridge, and by learning about key issues/ requirement for this option is one day our website at www.ilfood.org. topics that shoppers care about (food

Food Handler Chicago Energy Online Benchmarking Reporting Training Deadline continued from page 1 $9.95 IRMA/IFRA Members Request Assistance We encourage all members to begin the process of IFRA has received a number of inquiries surrounding providing training for your employees that work with Chicago's Energy Benchmarking Reporting Requirements. In unpackaged food, food equipment or utensils, or food response, we have asked Mark Pruitt, principal of The Power contact surfaces. All food handlers working in non- Bureau, to be available to help assist members with a wide restaurants shall have training completed by July 1, range of services related to reporting requirements, including 2016. arranging for third party professionals required for building IFRA has available an online food handler training and and usage data verification. Mark has agreed to provide assessment program. This effective, low cost, online services at reduced rates for Association members, starting program meets all the requirements of the new state with a $50 hourly rate for site visits and data verification for certification program. single gas/electric account buildings. IFRA Utility Program Coordinator Maggie Murphy will be "on call" to assist Mark The online training program is available through a link with this effort. You can contact Mark and/or Maggie directly. on the Association’s website at www.ilfood.org • Mark Pruitt, The Power Bureau: 219-921-3828 or email under the Food Sanitation Course Tab [email protected] • Maggie Murphy, IFRA Utilities Program Coordinator: 773-871-1110 or email [email protected]

©Illinois Food Retailers Association/Page 5 IRMA Vice President & Legislative Update General Counsel Tanya Triche IFRA Legislative Consultant IRMA Vice President & General Counsel Tanya Triche

Snap Distribution

SB 1847 (Sen. Daniel Biss, D-9, Skokie/ benefits throughout the month. SNAP usage to remain viable, all that is Rep. Robyn Gabel, D-18, Evanston) will In response to the letter, a number needed is an amendment requiring the allow more people in Illinois to qualify of states began expanding their Department to make permanent the for SNAP benefits. It is estimated that distribution beyond the first few days of temporary fix by February 1, 2017. the bill will add 40,000 more SNAP the month. Illinois was the only state to cases (cases include individuals and move in the opposite direction. Workers Compensation families) to the program. While we Amidst strong objection, the The last few weeks, Speaker of the generally would not be opposed to Department moved forward with the House Michael Madigan has put before such a measure, when we consider distribution change. Following months the House for consideration parts of the current manner in which SNAP of meetings, the administration agreed Governor Bruce Rauner's Turnaround benefits are distributed in this state, to temporarily add additional dates Agenda. The House has considered we feel compelled to oppose this bill at beyond the 10th of the month to amendments regarding right to work, this time since it simply inserts more relieve the pressure on the independent property tax freeze, and budget cut eligible participants into a distribution grocers that largely serve communities initiatives. This process is being used by system that fails recipients, grocers and in need and to put their employees the House Democrats to publicly debate employees of grocers. back to work. The additional Snap and attempt to frame components in While these outcomes are not the distribution days were 13, 17 and 20. Governor Rauner's Turnaround Agenda. desire of the sponsors of SB 1847, All new recipients or re-applicants, In response, the House Republicans these outcomes will occur as a result of however, would be given one of the first largely voted 'present' on the proposals unnecessary unilateral changes made 10 days of the month. Since this was as a way of protesting the process which by the Illinois Department of Human a temporary compromise, a resolution they see as a 'sham'. Services during the administration of was passed that required everyone to Following the same format, and former Governor Pat Quinn. come back to the table in 2015 and as a follow-up to the Workers' hammer out a permanent fix to SNAP Prior to 2013, Illinois had one of the Compensation Committee of the distribution that was fair to everyone most workable SNAP distribution Whole last week, Speaker Madigan involved in the program. schedules in the country because it introduced four workers' compensation distributed benefits throughout the Before the group reconvened, SB 1847 amendments to HB 1287 (Speaker month. After making some software was introduced to add more people Michael Madigan, D-Chicago) for changes in 2013, that were allegedly to the SNAP program and further consideration and debate. The necessitated by the Affordable Care exacerbate the existing distribution amendments largely provided for Act (ACA), the Department also problem. business-friendly reforms to the workers' compensation system. elected to change SNAP distribution In an effort to allow customers, to the first 10 days of the month. This regardless of how they pay for their House Amendment 1 to HB 1287 change was not required by ACA and groceries, to be served with dignity, included a heightened 'causation' was particularly baffling because it offered healthy, perishable items at all standard that would require the was made after the USDA (the federal times of the month, put our employees workplace be the major contributing Department that issues SNAP benefits back to work throughout the month cause of injury (at least 50%). to the states) wrote a letter to all of the and allow for grocery stores that are states encouraging them to distribute House Amendment 2 to HB 1287 operating in areas where there is high would have allowed the determination

©Illinois Food Retailers Association/Page 6 of permanent or partial disability but was held on the order of Second Retail Theft to be corroborated by independent Reading and was not called for a SB 202 (Sen. Bill Cunningham, medical examinations and treating vote. D-Chicago/Rep. Michael Zalewski, medical records (such as AMA D-Chicago) passed out of the House Guidelines). Tort Reform Judiciary Criminal Committee this Speaker Madigan continued to House Amendment 3 to HB 1287 week on a 9-1-0 vote. The bill is an submit pieces of Governor Rauner's proposed a significant reduction initiative of Cook County Sheriff Turnaround Agenda to the full in the medical fee schedules. These Tom Dart to institute an accelerated House, including tort reform. A schedules are used to determine what resolution court pilot program for Tort Reform Committee of the medical providers will be paid for misdemeanor retail theft cases, as Whole was convened last week the procedures they perform related well as criminal trespass to real to discuss tort reform in Illinois. to workers' compensation injuries. property and/or state-supported The committee was stacked with Despite a 30 percent reduction in land. This measure comes out of witnesses that suffered from a variety 2012, Illinois still has the fourth concerns raised by the Sheriff about of injuries from negligent or other jails overcrowded with non-violent tortious actions. As mentioned offenders and the housing of non- above, this process is being used violent offenders in jail who cannot House Amendment by the Democrats to frame the afford to bond out. Persons accused discussions around the Governor's 1 to HB 1287 of the aforementioned crimes, if initiatives. included a heightened they qualify, will either have a final 'causation' standard According to the Turnaround adjudication of their case within 30 Agenda, the Rauner Administration days of arrest or be allowed to bond that would require the is seeking, among other things, to out of jail on their own recognizance workplace be the major limit joint and several liability, and until their hearing date. contributing cause of limit damage awards as a result of medical expenses to those expenses Service Tax injury (at least 50%). that are actually paid. A report advocating for the In response to the Tort Reform expansion of the Illinois sales tax Committee of the Whole debate, to services was jointly issued this and Governor Rauner's Turnaround week by the Taxpayers Federation of highest medical fee schedule in the Agenda, Speaker Madigan has Illinois and the Center for Tax and nation. filed House Joint Resolution Budget Accountability. According House Amendment 4 to HB 1287 Constitutional Amendment 37 to the report, their proposal would would have subjected insurance (HJRCA 37) (Speaker Michael generate an additional $2 billion in companies to a rate approval process. Madigan, D-Chicago) that would tax revenues. Business-to-business limit awards for damages for certain transactions would be exempt Similar to the past debates, the because such taxes would result in House Republicans referred to tort claims. Specifically HJRCA 37 limits punitive damages to no greater taxes being paid on taxes – a process the process as disingenuous. As a known as 'pyramiding'. result, Republicans voted 'present' than three times the amount of on the four amendments while compensatory damages awarded or $50,000. Additionally, HJRCA 37 Democrats voted 'no' on the first TheMonthly Report is the official three amendments. Consequently, limits the total amount recoverable member publication of the the first three amendments failed. for an injury or death of a patient On the fourth amendment, the as a result of medical malpractice Illlinois Food Retailers Democrats voted 'yes' contending to no more than $1,250,000; limits Association the amendment would force a health care provider's liability for 1919 S. Highland Ave. insurance companies to pass medical malpractice to $250,000 per Lombard, IL 60148 occurrence; and limits the damages workers' compensation savings to Telephone: 630-627-8100 businesses. Consequently, the fourth for the loss of consortium to no more than $300,000. Toll free in IL: 800-624-6712 amendment was adopted to the bill, www.ilfood.org

©Illinois Food Retailers Association/Page 7 2015

Illinois Food Retailers Association Celebrating 90 Years of Service With co-host Grocery Merchandising Association

New Location Wednesday, October 7 Golf Outing, Village Links, Glen Ellyn

New Location Thursday, October 8 Education Conference & Expo Drury Lane Theatre & Conference Center, Oakbrook Terrace

2015 Industry Retailer Award Recipient Tony’s Fresh Market Awards Banquet, Thurs., Oct. 8 Cocktails 5 p.m.; Dinner 6 p.m. Expo

Illinois Best Bagger

Awards Banquet

Illinois Food Retailers Association Golf Outing 1919 S. Highland, Lombard, IL 60148 • 630-627-8100 • www.ilfood.org