Friday, September 29, 2006


From: Scott Hauge
Sent: Friday, September 29, 2006 7:20 AM
To: Small Business California
Subject: AB32

As you all know by now the Governor has signed AB 32. I attended the signing ceremony in SF but more importantly Small Business California played a major role in getting this passed and was I believe the first statewide generic business association to support this. This is the first time in history that small business has played a role in influencing the outcome of a major energy/global warming issue.
Small Business California also contacted the Governors office to try and get small business into the Governors comments at the signing. As a result the Governor said:
"AB 32 as a matter of fact,is good for business,not only large and well established businesses,but also small businesses that will harness their entrepreneurial spirit to help us achieve our climate goals. In fact, we will create a whole new industry to pump up our economy,a clean tech industry that creates jobs,sparks new cutting edge technology and will be a model for the rest of the nation and the rest of the world"
Thank you Governor. It is now important that small business keep engaged and be at the table when implementation decisions are made.

Thursday, September 28, 2006

AB32/ Health Insurance

From: Scott Hauge
Sent: Tuesday, September 26, 2006 6:34 AM
To: Small Business California
Subject: AB32/ Health Insurance

I just became aware that the Governor will be signing AB32[greenhouse emissions cap] at 10 o'clock on Wednesday in San Francisco and sometime I assume later that day in Los Angeles. I have talked to some of you about this event and passed some names to the Governor office at their request. Did any of you receive an invitation?
I met yesterday with Herb Schultz, John Remy and Ruth Liu who will be working on putting together a plan to deal with the uninsured. They are looking for input from small business people and I hope in the future I can call on some of you to get your thoughts. I especially want to work with other associations on this issue as this email goes to over 100 associations in the state.
I would appreciate hearing from you as individual business owners and as associations if you would like to work on this issue.
As the health insurance issue was the number one concern of small business in our survey I think it important that we have our voices heard.

Tuesday, September 26, 2006


From: Scott Hauge
Sent: Tuesday, September 19, 2006 4:48 PM
Subject: SB815

I know two emails in one day is awful but let me make this short. The Governor vetoed SB815. This was the bill that would double the permanent partial disability payments over 3 years. Assuming that the companies accept the Workers Compensation Insurance Rating Bureaus calculations this means policies that renew Jan 1 and later will have the January filed rates 8.3% lower than had he signed the bill. Keep in mind rates went down in July also so you will see a nice decrease in your workers comp cost at renewal assuming you have not had a lot of claims and your payroll has not increased dramatically.
For those of you that sent letters to the Governor thank you. We also need to thank the Governor for his veto.

San Francisco City Summit

From: Scott Hauge
Sent: Thursday, September 14, 2006 7:38 AM
To: Small Business California
Subject: San Francisco City Summit

The SF Chamber,SF Center for Economic Development and Mayor Newsom will be holding an Economic Summit September 26th from 7:30 to2 at the Mission Bay Conference Center. Featured speakers include Tom King President and CEO of PG&E, Supervisor Michela Alioto Pier,Bo Burlingham from Inc Magazine and of course Mayor Newsom.
The cost is $75 per person. For more information and to register on line go to
Small Business California is having a very successful year in Sacramento. Besides our successful efforts on AB 32[cap on greenhouse emission] which we worked on with the SF Chamber and the Bay Area Council we just received word that the Governor has signed our three bills SB1436 which will help small businesses with regulations,AB2330 which will provide for a study of the cost of state regulations for small businesses and AB3058 which will help small businesses develop a disaster plan. We are becoming a factor in Sacramento.
Lastly the workers compensation Bureau reported that a 6.3% reduction in workers compensation rates effective Jan 1,2007 will be recommended to to the Insurance Commissioner assuming SB 815 gets vetoed by the Governor. SB 815 would double the permanent disability cost over a three year period. The Bureau has said if this happens their recommendation will be revised to an increase January 1 of 1.8%. Rates will further be increased the following two years. Take a moment and send an email to Michael Prosio at and copy Dennis Trinidad at Dennis.Trinidad@OPR.CA.GOV. asking the Governor to veto this bill.You all should know Dennis as he is the state Small Business Advocate and Small Business California was the driving force in getting the Governor to fund the position.

Workers Comp Rate Reduction/ IRS Targets Small Business/ Regulatory Fairness Hearing

From: Scott Hauge
Sent: Monday, September 11, 2006 6:25 AM
To: Small Business California
Subject: Workers Comp Rate Reduction/ IRS Targets Small Business/ Regulatory Fairness Hearing

Last week the Workers Compensation Insurance Rating Bureau announced that they are considering a 6% decrease in pure premium rates January 1 2007.If the WCIRB governing committee accepts this it will be sent to the Insurance Commissioner who will hold a public hearing September 28.
This all could change however if SB 815 gets signed by the Governor. In my email last week I mentioned that this would increase the Permanent Partial Disability schedules and result in an expected 16%plus increase in cost to the workers compensation system over a three year time period. I ask again that you send an email opposing SB815 to and copy Dennis Trinidad at Dennis.Trinidad@OPR.CA.GOV. Please ask them to tell the Governor to veto this bill.
The IRS is targeting small businesses for tax audits. The so called "Tax Gap" is because the IRS believes that self employed and pass through small businesses are not paying what is legally due the IRS.
I was at a board meeting for the National Small Business Association[ NSBA] awhile back and an IRS representative said that he felt over $300 million could be recovered if small businesses were paying the proper IRS taxes.
While I certainly believe that small businesses that are not paying their taxes should do so I and the NSBA are concerned about harassment and intimidation by auditors. The NSBA over the next few months is beginning an initiative to raise awareness about the potential threat to small businesses around the country and will be providing information to inform small businesses about common mistakes in tax preparation. If you have been audited recently please let me know.
I also mentioned in a prior email the Regulatory Fairness Hearing in Sacramento. I just received a correction on this. It will be September 29 at the Sacramento Convention Center at 1401 J Street, Room 101 Sacramento. The registration is at 1:30 and the hearing from 2to 4. If you want to testify or submit something in writing you can contact Mary Conway-Jespen of the SBA Sacramento District Office at 916-930-3712 or email her at

Wednesday, September 06, 2006

Urgent Action Needed to Protect Workers Compensation Reform

From: Scott Hauge
Sent: Tuesday, September 05, 2006 7:13 AM
To: Small Business California
Subject: FW: Urgent Action Needed to Protect Workers Compensation Reform

Small businesses have benefited greatly from the reforms of SB899 SB 228 and AB 227 We now need to protect these reforms by getting the Governor to veto three bills that have been sent to him by the legislature.
Please take a few minutes and send an email to Michael Prosio at and cc Dennis Trinidad at mailto:Dennis.Trinidad@OPR.CA.GOV on each of these bills. I would also appreciate a copy.
This is your time to make a difference. We must stop SB815, AB1368 and AB2287. See information below from CCWC.
Have you ever been frustrated by a Federal Regulation. On September 29 at the Sacramento Convention Center 1400 J Street,Room 101 a hearing will be held to give small business people and business organizations the opportunity to voice their concerns. Registration is at 1:30 PM and the hearing will be from 2 to 4 with the SBA National Ombudsman Nicholas Owens and members of the SBA's Regulatory Fairness Board for Region 9. Kim King of King Security who receives this email sits on this Board and should you have any questions please contact her or me. She can be reached at mailto:kking@kingsecurity.netYou can also call Mary Conway-Jepsen of the SBA Sacramento District Office at 916-939-3712 or email her at Testimony can be submitted in advance or at the hearing.
Scott Hauge
Small Business California
CCWC Members,
California State Assembly and Senate End Legislative Session Late Thursday; Erosions to SB 899 Pass from Both Houses
Late Thursday night the California State Assembly and Senate passed several pieces of workers' compensation legislation that do nothing but erode the core set of reforms enacted in SB 228, AB 227 and SB 899. This legislation includes attempts to exempt public safety officers from crucial apportionment statutes, double the Permanent Partial Disability Benefit for workers injured after January 1, 2007, and create in statute a separate set of guidelines and fees for acupuncturists. The several pieces of legislation opposed by CCWC are:
* SB 815 (Perata-D) Workers' Compensation: Permanent Disability Benefits. For a copy of CCWC's letter requesting a veto, please click HERE <> . This legislation doubles the number of weeks afforded to an injured worker for injuries post January 1, 2007. Contrary to the stated intent of the legislation, this bill and benefit increase does NOTHING to address the perceived shortcomings of the existing Permanent Disability Rating Schedule (PDRS) effective January 1, 2005. Instead it only increases benefits for workers injured in 2007, 2008 and 2009. This legislation was strongly supported by Zenith Insurance Company President and CEO, Mr. Stanley Zaks who was represented by Senator Alarcon as saying that Zenith Insurance Company supported in the increase and could absorb the 16.6% increase in costs. Unfortunately with the increased litigation against the PDRS, it is more likely that should this legislation pass, Mr. Zaks would pass this cost onto his customers in California, reversing a trend of lower premiums and a more stable statewide workers' compensation system.
* AB 1368 (Karnette-D) Workers' Compensation: Presumptions: Apportionment. For a copy of CCWC's letter requesting a veto, please click HERE <> . This legislation will exempt tens of public safety designations from the key apportionment tenants of SB 899 and disallow cities, counties, and local agencies from considering non-work factors and events in determining permanent disability the injured worker. Public Safety officers should be subject to the same rules and considerations as the rest of California's injured workers. CCWC strongly urges you to support our request that the Governor Vetoes this legislation.
* AB 2287 (Chu-D) Workers' Compensation: Acupuncture Guidelines and Utilization. For a copy of CCWC's letter requesting a veto, please click HERE <> . This legislation creates in statute separate treatment guidelines and fee schedules for the use of acupuncture in the treatment of injured workers, something in SB 899 that was left up to the prevue of the Division of Workers' Compensation. CCWC believes it should remain the domain of the DWC and strongly urges you to support our call for a Veto.
Scott D. Lipton
Membership Director / Grassroots Organizer California Coalition on Workers' Compensation (CCWC)

AB 32- Caps On Greenhouse Emissions

From: Scott Hauge
Sent: Wednesday, August 30, 2006 5:05 PM
To: Small Business California
Subject: AB 32- Caps On Greenhouse Emissions

I just got word that the Governor and the legislature have come to an agreement and it is therefore expected that AB32 will pass both houses and be signed by the Governor. This bill would basically cap greenhouse emissions and is truly historic
Small Business California was I believe the first generic business group in the state to support this and we have been working hard in Sacramento and with legislators and the Governors people to get this done.
What makes this so great is that California will be able to plan for global warming which I think is now a scientific fact. We believe that planning certainly beats crisis management.
We also think this is going to create a huge industry and will provide opportunities for entrepreneurs to develop technologies to meet the demand that will be created by the cap. Small business will therefore be creating thousands of jobs which is what we do best.Lastly we think small businesses will have opportunities to find out how they can save energy and reduce our cost by using new technologies and learning about technologies that currently exist

Urgent Action Needed

From: Scott Hauge
Sent: Tuesday, August 29, 2006 3:03 PM
To: Small Business California
Subject: Urgent Action Needed

Please send your letters for AB2330, AB3058, and SB1436 . These have all passed the legislature and we need your help in getting the Governor to sign them.

Minimum Wage

From: Scott Hauge
Sent: Monday, August 21, 2006 5:11 PM
Subject: Minimum Wage

A big announcement is expected tomorrow according to Capital Notes. A deal has been struck increasing the minimum wage by $1.25 over two years. There is no cost of living increase attached to the measure.
As you may recall the Governor wanted an increase of $1.00 over two years. The Democrats wanted a cost of living increase attached. The above is the compromise.
This obviously could change overnight but it appears pretty solid.

Urgent Workers Compensation Information

From: Scott Hauge
Sent: Friday, August 18, 2006 7:29 AM
To: Small Business California
Subject: Urgent Workers Compensation Information

This is more information than I usually send but you have told us that workers compensation cost is a very important issue for you. There are two things really important going on in Sacramento right now you should be aware of. First Senator Perata is looking at revising the Permanent Disability Rating Schedule. This was a major part of the reforms and while it probably does need to be tweaked most people in the business community feel this should not be done until the Permanent Disability benefit study being done by the Division Of Workers Compensation is completed. See below how you can contact the Governor on this important matter.
Second there is a bill AB3026 [Sally Lieber] to exempt local government and local agency public safety officers from all aspects of managed care. This would be a major change from prior reforms. While it only applies to peace officers it will cost significant money for local governments and could be the start of unraveling reforms that have been so effective in lowering your workers compensation cost. See below for how you can give your thoughts on this.
SB Cal has opposed this and we would hope this will be vetoed by the Governor if it hits his desk.

Small Business California Bills Pass Committees

From: Scott Hauge
Sent: Tuesday, August 08, 2006 6:58 AM
To: Small Business California
Subject: Small Business California Bills Pass Committees

Yesterday two bills supported by Small Business California passed Senate appropriations and now go to the Senate floor.They are both by Assemblyman Arambula
AB 2330- this would require the state to do an economic study on the impact of state regulations on small businesses. The Small Business Advocate would oversee this.
AB 3058-this would amend the duties of the Small Business Advocate to include advocacy on state policy and programs related small businesses regarding disaster preparedness and recovery,including providing technical assistance.
Both bills have passed the Assembly
Dennis you have your work cut out for you[ Dennis Trinidad is the state Small Business Advocate]
SB 1436-This bill is sponsored by Small Business California and is authored by Senator Liz Figueroa. It would require the Department of Technology Services to create a link to state agency Web sites at the State of California Internet portal for small business to access information about start up requirements and regulatory compliance.
It also requires each state agency to designate one individual who shall serve as a small business liaison for the agency, with specified duties that include reviewing and updating content on the agency website that is on the agency website that is accessible through the small business link at the state of California Internet portal and assisting the agency secretary.department director,or executive officer in ensuring that procurement and contracting processes are administered in order to meet or exceed the 25% small business participation goal.
This is on consent calendar of the Assembly Appropriations committee and has passed the Senate. It will go to the Assembly floor
One other piece of information is that the Office of Administrative Law has approved regulations reimbursing small businesses for providing return to work to injured employees.