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CRA Responds to Governor Gavin Newsom Signing AB 701 into Law

In response to Governor Gavin Newsom signing AB 701 into law, Rachel Michelin, president of the California Retailers Association, and chair of the No on AB 701 coalition representing 50 organizations opposing the legislation, issued the following statement:

“We are disappointed Governor Newsom signed AB 701, which will exacerbate our current supply chain issues, increase the cost of living for all Californians and eliminate good-paying jobs. With California’s ports facing record backlogs of ships waiting off the coast and inflation spiking to the fastest pace in 13 years, AB 701 will make matters worse for everyone — creating more backordered goods and higher prices for everything from clothes, diapers and food to auto parts, toys and pet supplies.

Even worse, as the state, employers and families head into the fall and winter months and rely on COVID-19 tests to keep our communities safe, legislation like AB 701 will hamper these efforts by further slowing the movement of COVID-19 tests from warehouses and distribution centers to hospitals, pharmacies and doctors’ offices. AB 701 is a recipe for disaster that will make our current problems even worse for everyone.”

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