Wednesday, August 31, 2011

Last word on Emergency plan and Fire Prevention plan

Here is definitive word on the Emergency plan and Fire Prevention plan. All of you that have plans (that don’t comply) are subject to fines. BUT if you don’t have a plan, then you are okay. I will bet most of you who have put something together are subject to citations. However, I want to restate that Cal OSHA is not looking to get employers, but this is the law. Small Business California will be working on this as we would think it is much better to try and fall short, than have nothing. Below is more elaborated explanation of this if you are interested.

“The Cal OSHA Appeals Board ruled in 1985 in its Educated Car Wash Decision after Reconsideration that employers are not required pursuant to T8CCR §3220 and §3221 to develop and implement written emergency action and fire plans. The Board wrote “Sections 3220 and 3221 do not have a corresponding charging or performance requirement. In other words, there is no safety order which mandates that an employer maintain an emergency action plan or a fire protection plan. However, when an employer voluntarily chooses to maintain such a plan, the standards set forth in Sections 3220 and 3221 detail the requirements of the plan and must be adhered to. Here, because Employer did not have an emergency action plan or a fire prevention plan, it cannot be cited for violating either safety order.”

That said, employers are required pursuant to §3203 “Injury and Illness Prevention Program” to identify, evaluate and control hazards in their respective workplaces. The IIPP is required to be written. Such hazards would include earthquake, fire, chemical release, for example. Cal OSHA’s “Model IIPP Program” references emergency action and fire prevention among its general safety and health practices. Enforcement of §3203 has remained fairly consistent since its inception in 1992. Predictably, questions have arisen as to just what needs to be included in an Emergency Action or Emergency Response Plan.

T8CCR §5189 (PSM) and §5192 (Hazardous Waste Operations) each require affected employers to develop and implement a written EAP and ERP. The California Fire Code requires all employers to develop emergency plans for addressing fires, to include contacting responders, evacuation procedures, assignment of responsibilities, etc. T8CCR §3203 anticipates that a reasonable employer will establish procedures for emergency situations.”

So the bottom line is as I told you on the phone, per the appeals board, you don’t have to have one, but if you do, it must comply.

Here are the two regs—you cited one of them already.

§3220. Emergency Action Plan.
(a) Scope and Application. This section applies to all emergency action plans. The emergency action plan shall be in writing, except as provided in the last sentence of subsection (e)(3) of this section, and shall cover those designated actions employers and employees must take to ensure employee safety from fire and other emergencies.
(b) Elements. The following elements, at a minimum, shall be included in the plan:
(1) Emergency escape procedures and emergency escape route assignments;
(2) Procedures to be followed by employees who remain to operate critical plant operations before they evacuate;
(3) Procedures to account for all employees after emergency evacuation has been completed;
(4) Rescue and medical duties for those employees who are to perform them;
(5) The preferred means of reporting fires and other emergencies; and
(6) Names or regular job titles of persons or departments who can be contacted for further information or explanation of duties under the plan.
(c) Alarm System.
(1) The employer shall establish an employee alarm system which complies with Article 165.
(2) If the employee alarm system is used for alerting fire brigade members, or for other purposes, a distinctive signal for each purpose shall be used.
(d) Evacuation. The employer shall establish in the emergency action plan the types of evacuation to be used in emergency circumstances.
(e) Training.
(1) Before implementing the emergency action plan, the employer shall designate and train a sufficient number of persons to assist in the safe and orderly emergency evacuation of employees.
(2) The employer shall advise each employee of his/her responsibility under the plan at the following times:
(A) Initially when the plan is developed,
(B) Whenever the employee's responsibilities or designated actions under the plan change, and
(C) Whenever the plan is changed.
(3) The employer shall review with each employee upon initial assignment those parts of the plan which the employee must know to protect the employee in the event of an emergency. The written plan shall be kept at the workplace and made available for employee review. For those employers with 10 or fewer employees the plan may be communicated orally to employees and the employer need not maintain a written plan.
§3221. Fire Prevention Plan.
(a) Scope and Application. This section applies to all fire prevention plans. The fire prevention plan shall be in writing, except as provided in the last sentence of subsection (d)(2) of this section.
(b) Elements. The following elements, at a minimum, shall be included in the fire prevention plan:
(1) Potential fire hazards and their proper handling and storage procedures, potential ignition sources (such as welding, smoking and others) and their control procedures, and the type of fire protection equipment or systems which can control a fire involving them;
(2) Names or regular job titles of those responsible for maintenance of equipment and systems installed to prevent or control ignitions or fires; and
(3) Names or regular job titles of those responsible for the control of accumulation of flammable or combustible waste materials.
(c) Housekeeping. The employer shall control accumulations of flammable and combustible waste materials and residues so that they do not contribute to a fire emergency. The housekeeping procedures shall be included in the written fire prevention plan.
(d) Training.
(1) The employer shall apprise employees of the fire hazards of the materials and processes to which they are exposed.
(2) The employer shall review with each employee upon initial assignment those parts of the fire prevention plan which the employee must know to protect the employee in the event of an emergency. The written plan shall be kept in the workplace and made available for employee review. For those employers with 10 or fewer employees, the plan may be communicated orally to employees and the employer need not maintain a written plan.
(e) Maintenance. The employer shall regularly and properly maintain, according to established procedures, equipment and systems installed in the workplace to prevent accidental ignition of combustible materials.

Update! Emergency Action Plan - Cal OSHA

Yesterday, in my email I mentioned that all businesses are required to have an emergency action plan. For details on what is required see link below. Failure to do so makes an employer subject to citations by Cal OSHA. However, I have verified from the Department of Industrial Relations that there is no enhanced efforts to go after employers for lack of compliance

Speaking of Cal OSHA I am surprised how many businesses are not aware that if they have employees they are required to have an Injury and Illness Prevention Plan. This plan among other things requires you to identify a Safety Manager, put forth a statement of Safety Policy , an investigation of safety hazards and accidents. It is also required that it be effective meaning you need to make sure your employees are aware of this plan. For information on how to put a plan in place I suggest you contact your insurance broker.
This is one of the most common citations for Cal OSHA and can mean fines up to $5000.

Yesterday Small Business California’s sponsored bill SB 826[Leno] passed the Assembly on a bipartisan vote. It will now go to the Governor where it is expected he will sign it. This bill implements modest fines of claims administrators. The reason for the bill was that there was a lack of compliance by many claims administrators to the Workers Compensation Information System as required by law. The WCIS is involved in making workers compensation policy and the lack of information makes it difficult to make good policy. This was even supported by claims administrators and virtually had no opposition

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA 94116

Tuesday, August 30, 2011

Update! NLRB’s new posting requirement

Yesterday, I sent an email about NLRB’s new posting requirement. About an hour after I sent this I learned that Cal OSHA is stepping up enforcement of its policy to require businesses to have emergency preparedness plans. Quite honestly, I did not know this was a requirement. According to Fred Walter, an employer attorney, he stated that

“In general Cal OSHA is more concerned with written documents taking more care to ensure that employer plans are completely documented “says Fred Walter adding “in the past the inspector would say your plan is weak beef it up” . He goes on to say “Now they are more likely to say you failed to include items six and nine therefore I’m issuing this citation”

The money collected from these citations goes into the general fund. On Bill Financing, which Hank Ryan and Small Business California brought to California small businesses, has been very successful in San Diego due to the work of Frank Spasaro and Southern California Gas/San Diego Gas and Electric. As you will recall this is a financing mechanism for small businesses that allows them to do energy retrofits and pay it back on their energy bill over three to five years at 0% financing. The cost of the retrofit is covered by the savings on their energy bill. To date, San Diego Gas has made almost 900 loans ($20 million) and there have been only 7 defaults. $6.8 million has been paid back and the cost of the defaults is $99,000. Unfortunately, PG&E and Southern California Edison have made very few loans even though they are required by the CPUC to do so.

This morning I received the Coleman report and it appears small business job creation in the US has slipped from 40,000 new jobs in July to 35,000 in August. Mr. Coleman said “Small Business Hiring Slows in August Wages have dipped and employers have reduced hours”. This is certainly disappointing results.

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA 94116

Monday, August 29, 2011

Final Rule for Notification of Employee Rights

Please see the new requirements for businesses below (or click on the link provided). NLRB is going to require employers to post this notice and put it on the internet (or intranet cite). It will be required to be posted by Nov 14 2011. There are exemptions, but it is so confusing that I would still recommend that all small businesses post this November 14th. I talked to someone at NLRB to sort out which type of small businesses would be exempt from this requirement. According to NLRB, even through my insurance agency, I would not be exempt because the majority of the insurance policies that I sell originate out-of-state. He even went so far as to say if I buy office products from out-of-state manufacturers for my business, it may hit the threshold to require my posting. Keep in mind it doesn’t matter if I buy them from a California company. If you are a labor attorney I welcome your thoughts.

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA 94116

Final Rule for Notification of Employee Rights


The National Labor Relations Board has issued a Final Rule requiring most private-sector employers to notify employees of their rights under the National Labor Relations Act by posting a notice. The rule is scheduled to be posted in the Federal Register on August 30, 2011, and will take effect 75 days later.

Employers should begin posting the notice on November 14, 2011. Copies of the notice will be available on the NLRB website and from NLRB regional offices by November 1.

Similar postings of workplace rights are required under other federal workplace laws. The 11-by-17-inch notice is similar in content and design to a notice of NLRA rights that must be posted by federal contractors under a Department of Labor rule.

The notice of rights will be provided at no charge by NLRB regional offices or can be downloaded from the Board website and printed in color or black-and-white. Translated versions will be available, and must be posted at workplaces where at least 20% of employees are not proficient in English.

Employers must also post the notice on an intranet or an internet site if personnel rules and policies are customarily posted there.

Questions and Answers:

Does my company have to post the notice?

The posting requirement applies to all private-sector employers (including labor unions) subject to the National Labor Relations Act, which excludes agricultural, railroad and airline employers. In response to comments received after the proposed rule was announced, the Board has agreed to exempt the U.S. Postal Service for the time being because of that organization’s unique rules under the Act.

When will the notice posting be required?

The final rule takes effect 75 days after it is posted in the Federal Register, or on November 14, 2011.

There is no union in my workplace; will I still have to post the notice?

Yes. Because NLRA rights apply to union and non-union workplaces, all employers subject to the Board’s jurisdiction (aside from the USPS) will be required to post the notice.

I am a federal contractor. Will I have to post the notice?

The Board’s notice posting rule will apply to federal contractors, who already are required by the Department of Labor to post a similar notice of employee rights. A contractor will be regarded as complying with the Board’s notice posting rule if it posts the Department of Labor’s notice.

I operate a small business. Will I have to post the Board’s notice?

The rule applies to all employers subject to the Board’s jurisdiction, other than the U.S. Postal Service. The Board has chosen not to assert its jurisdiction over very small employers whose annual volume of business is not large enough to have a more than a slight effect on interstate commerce. The jurisdictional standards are summarized in the rule.

How will I get the notice?

The Board will provide copies of the notice on request at no cost to the employer beginning on or before November 1, 2011. These can be obtained by contacting the NLRB at its headquarters or its regional, sub-regional, or resident offices. Employers can also download the notice from the Board’s website and print it out in color or black-and-white on one 11-by-17-inch paper or two 8-by-11-inch papers taped together. Finally, employers can satisfy the rule by purchasing and posting a set of workplace posters from a commercial supplier.

What if I communicate with employees electronically?

In addition to the physical posting, the rule requires every covered employer to post the notice on an internet or intranet site if personnel rules and policies are customarily posted there. Employers are not required to distribute the posting by email, Twitter or other electronic means.

Many of my employees speak a language other than English. Will I still have to post the notice?

Yes. The notice must be posted in English and in another language if at least 20% of employees are not proficient in English and speak the other language. The Board will provide translations of the notice, and of the required link to the Board’s website, in the appropriate languages.

Will I have to maintain records or submit reports under the Board’s rule?

No, the rule has no record-keeping or reporting requirements.

How will the Board enforce the rule?

Failure to post the notice may be treated as an unfair labor practice under the National Labor Relations Act. The Board investigates allegations of unfair labor practices made by employees, unions, employers, or other persons, but does not initiate enforcement action on its own.

What will be the consequences for failing to post the notice?

The Board expects that, in most cases, employers who fail to post the notice are unaware of the rule and will comply when requested by a Board agent. In such cases, the unfair labor practice case will typically be closed without further action. The Board also may extend the 6-month statute of limitations for filing a charge involving other unfair labor practice allegations against the employer. If an employer knowingly and willfully fails to post the notice, the failure may be considered evidence of unlawful motive in an unfair labor practice case involving other alleged violations of the NLRA.

Can an employer be fined for failing to post the notice?

No, the Board does not have the authority to levy fines.

Was there a public comment period? What was the response?

The Board received more than 7,000 public comments after posting a notice of the proposed rule in the Federal Register. A detailed description of the comments and the Board’s response to them, including responsive modifications to the rule, may be found in the Preamble to the Final Rule.

UPDATE: Stakeholder Recommendations for Small Business

Earlier in the week I said that Mike Rossi , the Governors Senior Advisor on economic development, was looking for ideas from small business on what California could do to strengthen California small businesses. Please see below for the list that was compiled by Toni Symonds from the JEDE committee. Please note this is not an all inclusive list and some recommendations were not included. Also there was not necessarily a consensus. The time did not allow Toni to go through that process. Some of you will see the recommendations that you sent to me. Click the image below to enlarge and click again to zoom in. Thank you

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA 94116

Thursday, August 25, 2011

Peter Lee Named as ED of Exchange/ Out of State Internet Tax Collections

It was announced this morning that Peter Lee has been named as Executive Director of the California Health Benefit Exchange. I think this is good news for California small businesses because he has a wealth of health policy experience. He was Executive Director of the Pacific Business Group on health running Pac Advantage.

I know Peter well as he was involved in my being appointed to the Board of Pacific Business Group on Health. This organization has around 50 large companies that have over 3 million employees covered by their health plans..
Peter has over 25 years experience in health policy.
Peter currently serves as Deputy Director for the Center for Medicare and Medicaid Innovation at the Centers for M3edicare and Medicaid Services in Washington DC.

Small Business California is going to be very active in trying to maintain the collection of sales tax by out of state internet companies when they make sales in California. As I think you all know this was part of the Governors budget. Amazon is currently in the process of trying to get a measure on the June ballot to repeal this. I am going to be writing pieces on why this will help small business brick and mortar stores and why it will help small businesses by eliminating paperwork in the maintenance of receipts and paying the use tax.
If you are a businesses that is impacted please let me know and what this means to you.

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA 94116

Wednesday, August 24, 2011

When should you be REQUIRED to do a seismic upgrade? Take the survey.

Please find survey from the Earthquake Engineering Institute. They have asked Small Business California to circulate a survey to small businesses around the state. They are also working with the Building Owners and Managers Associations in LA and SF. They are trying to determine when seismic retrofits should be required. The survey should take about 10 minutes.


When should you be REQUIRED to do a seismic upgrade? Take the survey.

The Earthquake Engineering Research Institute is studying code change proposals and seeks your input. Their short survey about building alterations and triggered upgrades is at

Say you're doing a tenant improvement or a mechanical upgrade. Should the building code also require a seismic evaluation -- and possibly a retrofit -- even if your project wouldn't touch the structural system? You can contribute to the code change process by taking a survey developed by structural engineers funded by the Earthquake Engineering Research Institute ( The 2010 CBC triggers upgrades in a few cases already, but some are asking whether the code should be more proactive about seismic mitigation. What role should the code play in a city's mitigation plan? Would code-triggered upgrades reduce risk or would they just discourage modernization projects? Should a seismic trigger be related to project cost? Should certain building types be exempted -- or targeted?

Take the survey at For more about the study, contact David Bonowitz, S.E. at

David Bonowitz, S.E.
605A Baker Street
San Francisco, CA 94117



For those of you that have been on this email tree for awhile you know of my involvement with Volunteers In Medicine and Clinic by the Bay in SF.
For those of you new to the email Volunteers in Medicine is a National program setting up free clinics around the country using retired physicians, nurses and lay volunteers. They take no government money and have 85 clinics around the country in 25 states. They serve about 100000 people in these clinics and have around 350000 patient visits. I am the Vice Chair of Volunteers in Medicine

In California there are three Volunteer in Medicine Clinics. They are located in El Cajon, Indio and San Francisco. I am the cofounder of Clinic by the Bay in San Francisco along with Janet Reilly. We opened the clinic September 30th 2010. We are open 8 hours a week and are now serving about 120 patient visits a months. I am excited to tell you that September 8 we will be expanding to twelve hours a week. Our goal is that within 3 to 5 years we will be open full time.

For those of you in the Bay Area you might know John Legnitto. John works for Recology and serves as Chairman of the Board of the SF Chamber. I am pleased to tell you he just last week he was voted in as a member of our Board.

I am involved in a number volunteer activities but there is none that gives me more pleasure than Volunteers in Medicine and Clinic by the Bay

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA 94116

Monday, August 22, 2011

Assembly Committee on Jobs, Economic Development and the Economy (JEDE)

Last Thursday (8/18/2011), the Small Business Advisory committee to the Assembly Committee on Jobs Economic Development and the Economy[JEDE] met with Mike Rossi, the newly appointed Senior Jobs Advisor for the Governor. Ginnie Mistal who serves on the Board of Small Business California was also in attendance. Mr. Rossi asked for recommendations on how the state can help small businesses. What are your ideas?


Double-Whammy Hits Small Business Sector

I have worked with Dr. Bornstein on the issue regarding toxic small business loans as a result of decreased home values and the impact on small business credit. Please note that California is the epicenter of this problem. This article is in the American Banker website and additional information on Dr. Bornstein is listed below.

Double-Whammy Hits Small Business Sector

By Kate Berry

August 18, 2011 1:56 pm EDT

The tepid demand for credit from small businesses may be more directly related to the mortgage boom and bust than it appears.

Obviously, the continued slump in the housing market is one reason for a weak economic recovery that has sapped overall demand for goods and services, and hence small businesses' growth prospects. But many business owners also took out toxic mortgages on their homes during the bubble years. Now in default or foreclosure, they cannot access credit just as their firms' sales are tanking

Now "the value of small businesses' collateral has gone down, often by substantial amounts," Dennis says. "You add to that weak sales, and it's dampened their enthusiasm to hire or expand."

Samuel D. Bornstein, an accounting professor at Kean University School of Business, has conducted surveys suggesting that over half of alternative-A mortgages in California alone went to small-business owners.

Such high exposure to bad home loans could delay the recovery of small business hiring — and of the rest of the economy — for years.

"There's an unrecognized link between small businesses, toxic mortgages and the housing crisis," says Bornstein, who has been studying small business failures since 2000.

"Small business owners are always looking to quench their need for cash and the mortgage companies were targeting them, letting them refinance into risky loans."

In 2008 and 2009, Bornstein conducted three surveys of small business owners. He found that they were eager to tap the equity in their homes to fund their operations, but then struggled when home prices dropped and access to credit shriveled.

According to Bornstein's surveys, 75% of toxic mortgages to small business owners were issued in the four states with high levels of foreclosure: California, Florida, Nevada and Arizona. In California alone, 52% of bad home loans went to small business owners.

Historically, small businesses that employ 1 to 20 people have been the first to recover from economic downturns, but that hasn't happened this time around.

In a study this year, the Federal Reserve Bank of New York found that jobs fell 10% from December 2007 to December 2009 at businesses with less than 50 employees, compared with a 7.5% decline in jobs at larger firms. That pattern was noticeably different from the 2001 recession, according to the New York Fed.

Now Bornstein and other industry experts are sounding an alarm about alternative-A mortgages that are resetting this year and next, saying those resets will disproportionately impact small business owners and, by extension, the overall economy.

Alt-A loans typically did not require any documentation of a borrower's income. Such loans allowed a borrower to make interest-only payments for between three to five years, and many contained "pay option" features in which the principal balance on the mortgage increases every month.

Though interest rates are at record lows, borrowers still face big increases in their monthly mortgage payments because the principal balances have gone up dramatically.

"Another wave of defaults looms on the horizon," Bornstein says.

Rick Sharga, a senior vice president at the data firm RealtyTrac Inc., has estimated that $200 billion of alt-A adjustable-rate mortgages will start resetting this year. Many of the properties have lost between 30% to 50% of their value, making it a near-certainty that some borrowers will stop making their mortgage payments because they owe far more on their loan than the home is now worth.

Many banks have long recognized the problems with alt-A loans: since 2009, Bank of America Corp. and JPMorgan Chase & Co. have been modifying such loans in record numbers.

But giving borrowers "interest-only modifications" is equally as unsustainable as the original "interest only" loans, because they simply put off foreclosures for another day.

The undocumented nature of most Alt-A loans makes it difficult to assess the full exposure of small businesses, but Bornstein's surveys have made him pessimistic about the resets' impact on the broader recovery.

"The financial distress of small businesses will have a multiplying effect on job losses and foreclosures," he says.

More articles at

Samuel D. Bornstein
Professor of Accounting and Taxation
Kean University, School of Business, Union, NJ
Partner-Bornstein & Song, CPAs & Consultants, Oakhurst, NJ
Tel: (732) 493 - 4799
Fax: (732) 493 - 3399

Independent Contractor

The classification of independent contractor status is a major issue for small businesses. Robert W. Woods wrote a piece about this and it can be access with the link provided below. He also has additional links at the end of the article that can be very useful. One that I think is particularly important is the article entitled "10 Mistakes to Avoid On Independent Contractors". If you are audited by the IRS or EDD and have misclassified people it can get very expensive with the penalties that are charged.

IRS Narrows Independent Contractor Relief - Forbes

37 Additional Community Banks Across The Country Receive $418 Million to Help Small Businesses Access Capital, Create New Jobs

Please see below message from the Treasury. Do you think this makes much of a difference to small businesses in the communities where these banks are located? I am sure most of you saw Warren Buffet's piece on increasing tax on the wealthy. He seems to define wealthy as those making over $1 million a year. What do you think?

U.S. Treasury Department
Office of Public Affairs

CONTACT: Treasury Public Affairs (202) 622-2960

Total of 80 Banks Have Now Received More than $1.0 Billion in Funding through
Small Business Lending Fund

WASHINGTON – Today, the U.S. Department of the Treasury announced that an additional 37 community banks across the country received a total of $418 million as part of the next wave of funding provided through the Small Business Lending Fund (SBLF). The SBLF, which was established as part of the Small Business Jobs Act that President Obama signed into law, encourages community banks to increase their lending to small businesses, helping those companies expand their operations and create new jobs.

Including today’s announcement, 80 community banks have now received more than $1.0 billion in SBLF funding. Additional SBLF funding announcements will be made on a rolling basis in the weeks ahead.

“These funds will provide critical support to Main Street community banks so they can expand their lending to small businesses,” said Deputy Secretary of the Treasury Neal S. Wolin. “This program helps entrepreneurs in communities across the country access the capital they need to grow their operations, invest in new equipment, and hire additional workers.”

Small businesses play a critical role in the U.S. economy and are central to growth and job creation. Small businesses employ roughly one-half of all Americans and account for about 60 percent of gross job creation. But small business owners faced disproportionate challenges in the aftermath of the recession and credit crisis, including difficulty accessing capital.

The SBLF helps small businesses meet this challenge by providing capital to community banks that hold under $10 billion in assets. The dividend rate a community bank pays on SBLF funding is reduced as that bank increases its lending to small businesses – providing a strong incentive for new lending to small businesses so they can expand and create jobs. For more details on the SBLF program, please visit, link and link.

The SBLF is one part of the Obama Administration’s comprehensive agenda to help small businesses access the capital they need to invest and hire. The State Small Business Credit Initiative (SSBCI), which is also a key part of the Small Business Jobs Act, allocates $1.5 billion to new and existing state programs that will leverage private financing to spur $15 billion in new lending to small businesses and small manufacturers.

The Obama Administration has also supported 17 direct tax breaks that provide tax relief of more than $50 billion for small businesses. These tax breaks were designed to support job creation and retention, entrepreneurship, investment, and growth. The Administration has also worked with Congress to extend and expand existing Small Business Administration loan programs that helped put more than $42 billion in the hands of small businesses and deliver other important benefits to help small businesses expand and hire.

The 37 banks that received SBLF funding as part of today’s announcement include:

• Oak Valley Bancorp (Oakdale, California) -- $13.5 million
• Silvergate Capital Corporation (La Jolla, California) -- $12.4 million
• Summit State Bank (Santa Rosa, California) -- $13.8 million
• BNC Financial Group, Inc. (New Canaan, Connecticut) -- $11.0 million
• SBT Bancorp, Inc. (Simsbury, Connecticut) -- $9.0 million
• Community Bank Delaware (Lewes, Delaware) -- $4.5 million
• Bank of Central Florida (Lakeland, Florida) -- $7.0 million
• Jefferson Bank of Florida (Oldsmar, Florida) -- $3.4 million
• Community Illinois Corporation (Rock Falls, Illinois) -- $4.5 million
• Tri-County Financial Group, Inc. (Mendota, Illinois) -- $20.0 million
• First Savings Financial Group, Inc. (Clarksville, Indiana) -- $17.1 million
• Equity Bancshares, Inc. (Wichita, Kansas) -- $16.4 million
• UBT Bancshares, Inc. (Marysville, Kansas) -- $16.5 million
• First NBC Bank Holding Company (New Orleans, Louisiana) -- $37.9 million
• Island Bancorp, Inc. (Edgartown, Massachusetts) -- $4.0 million
• Mercantile Capital Corporation (Boston, Massachusetts) -- $7.0 million
• New England Bancorp, Inc. (Hyannis, Massachusetts) -- $4.0 million
• Rockport National Bancorp, Inc. (Rockport, Massachusetts) -- $3.0 million
• Monument Bank (Bethesda, Maryland) -- $11.4 million
• Crestmark Bancorp, Inc. (Troy, Michigan) -- $8.3 million
• Select Bancorp, Inc. (Greenville, North Carolina) -- $7.6 million
• Community Partners Bancorp (Middletown, New Jersey) -- $12.0 million
• Kinderhook Bank Corp. (Kinderhook, New York) -- $7.0 million
• AmeriServ Financial, Inc. (Johnstown, Pennsylvania) -- $21.0 million
• DNB Financial Corporation (Dowingtown, Pennsylvania) -- $13.0 million
• Jonestown Bank and Trust Company (Jonestown, Pennsylvania) -- $4.0 million
• Valley Green Bank (Philadelphia, Pennsylvania) -- $5.0 million
• Carroll Financial Services, Inc. (Huntingdon, Tennessee) -- $3.0 million
• Evolve Bancorp, Inc. (Cordova, Tennessee) -- $4.7 million
• Independent Holdings, Inc. (Memphis, Tennessee) -- $34.9 million
• SmartFinancial, Inc. (Pigeon Forge, Tennessee) -- $12.0 million
• McLaughlin Bancshares, Inc. (Ralls, Texas) -- $6.6 million
• Third Coast Bank SSB (Humble, Texas) -- $8.7 million
• Heritage Bankshares, Inc. (Norfolk, Virginia) -- $7.8 million
• WashingtonFirst Bankshares, Inc. (Reston, Virginia) -- $17.8 million
• Peoples Bancorp (Lynden, Washington) -- $18.0 million
• Puget Sound Bank (Bellevue, Washington) -- $9.9 million

Thursday, August 04, 2011

Use Tax/ Hackers

Most of you I think have received request from the Board of Equalization to review your receipts for three years and report and pay the use tax for purchases from out of state Internet companies.

Along with the amount owed you are required to pay all interest and penalty charges. You also were registered with the BOE if your receipts were over $100000 and you did not have a resellers license. This is called the “Qualified Purchaser Program”[ QPP]

Senator George Runner on the BOE Board wrote an Op Ed piece called ”A Qualified Mess” pointing out the problems with QPP. He also surveyed small businesses and as a result the BOE has agreed to make changes to QPP including eliminating the automatic registration of businesses and allowing the businesses to leave the program if they don’t owe tax or their income falls below $100000.

Hackers Take $1 Billion a Year as Banks Blame Their Clients

By Greg Farrell and Michael A. Riley - Aug 4, 2011 –

Valiena Allison got a call from her bank on a busy morning two years ago about a wire transfer from her company’s account. She told the managers she hadn’t approved the transfer. The problem was, her computer had.

As Allison, chief executive officer of Sterling Heights, Michigan-based Experi-Metal Inc., was to learn, her company computer was approving other transfers as she spoke. During hours of frantic phone calls with her bank, Allison, 45, was unable to stop this cybercrime in progress as transfer followed transfer. By day’s end, $5.2 million was gone.

She turned to her bank, a branch of Comerica Inc. (CMA), to help recover the money for her metal-products firm. It got all but $561,000 of the funds. Then came the surprise: the bank said the loss was Experi-Metal’s problem because it had allowed Allison’s computer to be infected by the hackers.

“At the end of the day, the fraud department at Comerica said: ‘What’s wrong with you? How could you let this happen?’” Allison said.

In increments of a few thousand dollars to a few million per theft, cybercrooks are stealing as much as $1 billion a year from small and mid-sized bank accounts in the U.S. and Europe like Experi-Metal, according to Don Jackson, a security expert at Dell SecureWorks. And account holders are the big losers.

Remainder of story at this link:

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA 94116

Wednesday, August 03, 2011

The National Debt/ Reporting tax fraud/ California State Agencies

I have received a couple of calls from reporters asking me how small business feels about the National debt and increasing the debt limit.

I am curious in the scheme of things how important is the National debt to your small business versus other issues like the cost of health insurance, access to capital, regulations, taxation and the cost of gasoline. I look forward to hearing from you.

I received a copy of an email sent by EDD. It was entitled “Tired of Other Businesses Not Paying Their Share”. It went on to say that you can report anonymously payroll fraud by calling toll free an EDD hotline number 1 800-528-1783.

It concludes by saying “Help us level the playing field for California Business”.
Has anyone ever called this number? Did they follow through.

In my conversations with small business people I am told that the people are very nice but the caller is told EDD does not have the money to do anything. I hope I am wrong here because the underground economy is a problem for a lot of small businesses.

If you decide to call let me know your experience.

I sent the list of state agencies out awhile back but many of you were not on this email list. See below the state agencies in California.

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA 94116

These are all California State Agencies !!!!!!!!

California Academic Performance Index (API) * California Access for Infants and Mothers * California Acupuncture Board * California Administrative Office of the Courts * California Adoptions Branch * California African American Museum * California Agricultural Export Program * California Agricultural Labor Relations Board * California Agricultural Statistics Service * California Air Resources Board (CARB) * California Allocation Board * California Alternative Energy and Advanced Transportation Financing Authority * California Animal Health and Food Safety Services * California Anti-Terrorism Information Center * California Apprenticeship Council * California Arbitration Certification Program * California Architects Board * California Area VI Developmental Disabilities Board * California Arts Council * California Asian Pacific Islander Legislative Caucus * California Assembly Democratic Caucus * California Assembly Republican Caucus * California Athletic Commission * California Attorney General * California Bay Conservation and Development Commission * California Bay-Delta Authority * California Bay-Delta Office * California Biodiversity Council * California Board for Geologists and Geophysicists * California Board for Professional Engineers and Land Surveyors * California Board of Accountancy * California Board of Barbering and Cosmetology * California Board of Behavioral Sciences * California Board of Chiropractic Examiners * California Board of Equalization (BOE) * California Board of Forestry and Fire Protection * California Board of Guide Dogs for the Blind * California Board of Occupational Therapy * California Board of Optometry * California Board of Pharmacy * California Board of Podiatric Medicine * California Board of Prison Terms * California Board of Psychology * California Board of Registered Nursing * California Board of Trustees * California Board of Vocational Nursing and Psychiatric Technicians * California Braille and Talking Book Library * California Building Standards Commission * California Bureau for Private Postsecondary and Vocational Education * California Bureau of Automotive Repair * California Bureau of Electronic and Appliance Repair * California Bureau of Home Furnishings and Thermal Insulation * California Bureau of Naturopathic Medicine * California Bureau of Security and Investigative Services * California Bureau of State Audits * California Business Agency * California Business Investment Services (CalBIS) * California Business Permit Information (CalGOLD) * California Business Portal * California Business, Transportation and Housing Agency * California Cal Grants * California CalJOBS * California Cal-Learn Program * California CalVet Home Loan Program * California Career Resource Network * California Cemetery and Funeral Bureau * California Center for Analytical Chemistry * California Center for Distributed Learning * California Center for Teaching Careers (Teach California) * California Chancellors Office * California Charter Schools * California Children and Families Commission * California Children and Family Services Division * California Citizens Compensation Commission * California Civil Rights Bureau * California Coastal Commission * California Coastal Conservancy * California Code of Regulations * California Collaborative Projects with UC Davis * California Commission for Jobs and Economic Growth * California Commission on Aging * California Commission on Health and Safety and Workers Compensation * California Commission on Judicial Performance * California Commission on State Mandates * California Commission on Status of Women * California Commission on Teacher Credentialing * California Commission on the Status of Women * California Committee on Dental Auxiliaries * California Community Colleges Chancellors Office, Junior Colleges * California Community Colleges Chancellors Office * California Complaint Mediation Program * California Conservation Corps * California Constitution Revision Commission * California Consumer Hotline * California Consumer Information Center * California Consumer Information * California Consumer Services Division * California Consumers and Families Agency * California Contractors State License Board * California Corrections Standards Authority * California Council for the Humanities * California Council on Criminal Justice * California Council on Developmental Disabilities * California Court Reporters Board * California Courts of Appeal * California Crime and Violence Prevention Center * California Criminal Justice Statistics Center * California Criminalist Institute Forensic Library * California CSGnet Network Management * California Cultural and Historical Endowment * California Cultural Resources Division * California Curriculum and Instructional Leadership Branch * California Data Exchange Center * California Data Management Division * California Debt and Investment Advisory Commission * California Delta Protection Commission * California Democratic Caucus * California Demographic Research Unit * California Dental Auxiliaries * California Department of Aging * California Department of Alcohol and Drug Programs * California Department of Alcoholic Beverage Control Appeals Board * California Department of Alcoholic Beverage Control * California Department of Boating and Waterways (Cal Boating) * California Department of Child Support Services (CDCSS) * California Department of Community Services and Development * California Department of Conservation * California Department of Consumer Affairs * California Department of Corporations * California Department of Corrections and Rehabilitation * California Department of Developmental Services * California Department of Education * California Department of Fair Employment and Housing * California Department of Finance * California Department of Financial Institutions * California Department of Fish and Game * California Department of Food and Agriculture * California Department of Forestry and Fire Protection (CDF) * California Department of General Services * California Department of General Services, Office of State Publishing * California Department of Health Care Services * California Department of Housing and Community Development * California Department of Industrial Relations (DIR) * California Department of Insurance * California Department of Justice Firearms Division * California Department of Justice Opinion Unit * California Department of Justice, Consumer Information, Public Inquiry Unit * California Department of Justice * California Department of Managed Health Care * California Department of Mental Health * California Department of Motor Vehicles (DMV) * California Department of Personnel Administration * California Department of Pesticide Regulation * California Department of Public Health * California Department of Real Estate * California Department of Rehabilitation * California Department of Social Services Adoptions Branch * California Department of Social Services * California Department of Technology Services Training Center (DTSTC) * California Department of Technology Services (DTS) * California Department of Toxic Substances Control * California Department of Transportation (Caltrans) * California Department of Veterans Affairs (CalVets) * California Department of Water Resources * California Departmento de Vehiculos Motorizados * California Digital Library * California Disabled Veteran Business Enterprise Certification Program * California Division of Apprenticeship Standards * California Division of Codes and Standards * California Division of Communicable Disease Control * California Division of Engineering * California Division of Environmental and Occupational Disease Control * California Division of Gambling Control * California Division of Housing Policy Development * California Division of Labor Standards Enforcement * California Division of Labor Statistics and Research * California Division of Land and Right of Way * California Division of Land Resource Protection * California Division of Law Enforcement General Library * California Division of Measurement Standards * California Division of Mines and Geology * California Division of Occupational Safety and Health (Cal/OSHA) * California Division of Oil, Gas and Geothermal Resources * California Division of Planning and Local Assistance * California Division of Recycling * California Division of Safety of Dams * California Division of the State Architect * California Division of Tourism * California Division of Workers Compensation Medical Unit * California Division of Workers Compensation * California Economic Assistance, Business and Community Resources * California Economic Strategy Panel * California Education and Training Agency * California Education Audit Appeals Panel * California Educational Facilities Authority * California Elections Division * California Electricity Oversight Board * California Emergency Management Agency * California Emergency Medical Services Authority * California Employment Development Department (EDD) * California Employment Information State Jobs * California Employment Training Panel * California Energy Commission * California Environment and Natural Resources Agency * California Environmental Protection Agency (Cal/EPA) * California Environmental Resources Evaluation System (CERES) * California Executive Office * California Export Laboratory Services * California Exposition and State Fair (Cal Expo) * California Fair Political Practices Commission * California Fairs and Expositions Division * California Film Commission * California Fire and Resource Assessment Program * California Firearms Division * California Fiscal Services * California Fish and Game Commission * California Fisheries Program Branch * California Floodplain Management * California Foster Youth Help * California Franchise Tax Board (FTB) * California Fraud Division * California Gambling Control Commission * California Geographic Information Systems Council (GIS) * California Geological Survey * California Government Claims and Victim Compensation Board * California Governors Committee for Employment of Disabled Persons * California Governors Mentoring Partnership * California Governors Office of Emergency Services * California Governors Office of Homeland Security * California Governors Office of Planning and Research * California Governors Office * California Grant and Enterprise Zone Programs HCD Loan * California Health and Human Services Agency * California Health and Safety Agency * California Healthy Families Program * California Hearing Aid Dispensers Bureau * California High-Speed Rail Authority * California Highway Patrol (CHP) * California History and Culture Agency * California Horse Racing Board * California Housing Finance Agency * California Indoor Air Quality Program * California Industrial Development Financing Advisory Commission * California Industrial Welfare Commission * California InFoPeople * California Information Center for the Environment * California Infrastructure and Economic Development Bank (I-Bank) * California Inspection Services * California Institute for County Government * California Institute for Education Reform * California Integrated Waste Management Board * California Interagency Ecological Program * California Job Service * California Junta Estatal de Personal * California Labor and Employment Agency * California Labor and Workforce Development Agency * California Labor Market Information Division * California Land Use Planning Information Network (LUPIN) * California Lands Commission * California Landscape Architects Technical Committee * California Latino Legislative Caucus * California Law Enforcement Branch * California Law Enforcement General Library * California Law Revision Commission * California Legislative Analyst's Office * California Legislative Black Caucus * California Legislative Counsel * California Legislative Division * California Legislative Information * California Legislative Lesbian, Gay, Bisexual, and Transgender (LGBT) Caucus * California Legislature Internet Caucus * California Library De velopment Services * California License and Revenue Branch * California Major Risk Medical Insurance Program * California Managed Risk Medical Insurance Board * California Maritime Academy * California Marketing Services * California Measurement Standards * California Medical Assistance Commission * California Medical Care Services * California Military Department * California Mining and Geology Board * California Museum for History, Women, and the Arts * California Museum Resource Center * California National Guard * California Native American Heritage Commission * California Natural Community Conservation Planning Program * California New Motor Vehicle Board * California Nursing Home Administrator Program * California Occupational Safety and Health Appeals Board * California Occupational Safety and Health Standards Board * California Ocean Resources Management Program * California Office of Administrative Hearings * California Office of Administrative Law * California Office of AIDS * California Office of Binational Border Health * California Office of Child Abuse Prevention * California Office of Deaf Access * California Office of Emergency Services (OES) * California Office of Environmental Health Hazard Assessment * California Office of Fiscal Services * California Office of Fleet Administration * California Office of Health Insurance Portability and Accountability Act (HIPAA) Implementation (CalOHI) * California Office of Historic Preservation * California Office of Homeland Security * California Office of Human Resources * California Office of Legal Services * California Office of Legislation * California Office of Lieutenant Governor * California Office of Military and Aerospace Support * California Office of Mine Reclamation * California Office of Natural Resource Education * California Office of Privacy Protection * California Office of Public School Construction * California Office of Real Estate Appraisers * California Office of Risk and Insurance Management * California Office of Services to the Blind * California Office of Spill Prevention and Response * California Office of State Publishing (OSP) * California Office of Statewide Health Planning and Development * California Office of Systems Integration * California Office of the Inspector General * California Office of the Ombudsman * California Office of the Patient Advocate * California Office of the President * California Office of the Secretary for Education * California Office of the State Fire Marshal * California Office of the State Public Defender * California Office of Traffic Safety * California Office of Vital Records * California Online Directory * California Operations Control Office * California Opinion Unit * California Outreach and Technical Assistance Network (OTAN) * California Park and Recreation Commission * California Peace Officer Standards and Training (POST) * California Performance Review (CPR) * California Permit Information for Business (CalGOLD) * California Physical Therapy Board * California Physician Assistant Committee * California Plant Health and Pest Prevention Services * California Policy and Evaluation Division * California Political Reform Division * California Pollution Control Financing Authority * California Polytechnic State University, San Luis Obispo * California Postsecondary Education Commission * California Prevention Services * California Primary Care and Family Health * California Prison Industry Authority * California Procurement Division * California Public Employees Retirement System (CalPERS) * California Public Employment Relations Board (PERB) * California Public Utilities Commission (PUC) * California Real Estate Services Division * California Refugee Programs Branch * California Regional Water Quality Control Boards * California Registered Veterinary Technician Committee * California Registrar of Charitable Trusts * California Republican Caucus * California Research and Development Division * California Research Bureau * California Resources Agency * California Respiratory Care Board * California Rivers Assessment * California Rural Health Policy Council * California Safe Schools * California San Francisco Bay Conservation and Development Commission * California San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy * California San Joaquin River Conservancy * California School to Career * California Science Center * California Scripps Institution of Oceanography * California Secretary of State Business Portal * California Secretary of State * California Seismic Safety Commission * California Self Insurance Plans (SIP) * California Senate Office of Research * California Small Business and Disabled Veteran Business Enterprise Certification Program * California Small Business Development Center Program * California Smart Growth Caucus * California Smog Check Information Center * California Spatial Information Library * California Special Education Division * California Speech-Language Pathology and Audiology Board * California Standardized Testing and Reporting (STAR) * California Standards and Assessment Division * California State Administrative Manual (SAM) * California State Allocation Board * California State and Consumer Services Agency * California State Architect * California State Archives * California State Assembly * California State Association of Counties (CSAC) * California State Board of Education * California State Board of Food and Agriculture *California Office of the Chief Information Officer (OCIO) * California State Children's Trust Fund * California State Compensation Insurance Fund * California State Contracts Register Program * California State Contracts Register * California State Controller * California State Council on Developmental Disabilities (SCDD) * California State Disability Insurance (SDI) * California State Fair (Cal Expo) * California State Jobs Employment Information * California State Lands Commission * California State Legislative Portal * California State Legislature * California State Library Catalog * California State Library Services Bureau * California State Library * California State Lottery * California State Mediation and Conciliation Service * California State Mining and Geology Board * California State Park and Recreation Commission * California State Parks * California State Personnel Board * California State Polytechnic University, Pomona * California State Railroad Museum * California State Science Fair * California State Senate * California State Summer School for Mathematics and Science (COSMOS) * California State Summer School for the Arts * California State Superintendent of Public Instruction * California State Teachers Retirement System (CalSTRS) * California State Treasurer * California State University Center for Distributed Learning * California State University, Bakersfield * California State University, Channel Islands * California State University, Chico * California State University, Dominguez Hills * California State University, East Bay * California State University, Fresno * California State University, Fullerton * California State University, Long Beach * California State University, Los Angeles * California State University, Monterey Bay * California State University, Northridge * California State University, Sacramento * California State University, San Bernardino * California State University, San Marcos * California State University, Stanislaus * California State University (CSU) * California State Water Project Analysis Office * California State Water Project * California State Water Resources Control Board * California Structural Pest Control Board * California Student Aid Commission * California Superintendent of Public Instruction * California Superior Courts * California Tahoe Conservancy * California Task Force on Culturally and Linguistically Competent Physicians and Dentists * California Tax Information Center * California Technology and Administration Branch Finance * California Telecommunications Division * California Telephone Medical Advice Services (TAMS) * California Transportation Commission * California Travel and Transportation Agency * California Unclaimed Property Program * California Unemployment Insurance Appeals Board * California Unemployment Insurance Program * California Uniform Construction Cost Accounting Commission * California Veterans Board * California Veterans Memorial * California Veterinary Medical Board and Registered Veterinary Technician Examining Committee * California Veterinary Medical Board * California Victim Compensation and Government Claims Board * California Volunteers * California Voter Registration * California Water Commission * California Water Environment Association (COWPEA) * California Water Resources Control Board * California Welfare to Work Division * California Wetlands Information System * California Wildlife and Habitat Data Analysis Branch * California Wildlife Conservation Board * California Wildlife Programs Branch * California Work Opportunity and Responsibility to Kids (CalWORKs) * California Workers Compensation Appeals Board * California Workforce and Labor Development Agency * California Workforce Investment Board * California Youth Authority (CYA) * Central Valley Flood Protection Board * Center for California Studies * Colorado River Board of California * Counting California * Dental Board of California * Health Insurance Plan of California (PacAdvantage) * Humboldt State University * Jobs with the State of California * Judicial Council of California * Learn California * Library of California * Lieutenant Governors Commission for One California * Little Hoover Commission (on California State Government Organization and Economy) * Medical Board of California * Medi-Cal * Osteopathic Medical Board of California * Physical Therapy Board of California * Regents of the University of California * San Diego State University * San Francisco State University * San Jose State University * Santa Monica Mountains Conservancy * State Bar of California * Supreme Court of California * Teach California * University of California * University of California, Berkeley * University of California, Davis * University of California, Hastings College of the Law * University of California, Irvine * University of California, Los Angeles * University of California, Merced * University of California, Riverside * University of California, San Diego * University of California, San Francisco * University of California, Santa Barbara * University of California, Santa Cruz * Veterans Home of California

We all know that the only places they can cut is Police and Fire....

It doesn't matter whether you are a Democrat, a Republican or Independent. This list has to shock you. Over the years, our politicians have created this enormous pork barrel of agencies that employ over 350,000 people directly and countless more via contracts with the State. All of these people get salaries, medical coverage and pensions at our expense and amost all are unionized. Take a good, close look. Unbelievable? No. Believe it!

Monday, August 01, 2011

Hank Ryan is the Executive Director and energy guru of Small Business California. He asked me to send the letter below to our Small Business California family. Please take a moment and send to me the your energy bill.


Beginning this fall, all businesses in California will be switched to a "time of use" rate.

SB-Cal is supporting proposed legislation, SB843, in California that could help small businesses save significantly where they use large amounts of electricity during weekdays. Examples include manufacturing, small grocery stores or even convenience stores.

We are asking for businesses in California that would be both willing to share an electric bill and that are already on a "time of use" rate like "A6" in PG&E's territory (GS-1, GS-2 in SCE's territory, ALTOU in SDG&E's territory), to help determine the amount of savings SB 843 could help deliver back to the business.

The legislation allows consumers to "buy" part of a larger solar installation that is located elsewhere. The cost of electricity for the energy from the solar power is 11 cents per kilowatt hour. When businesses use energy during the summer peak times (generally 1-5pm), they pay up to 30 cents per kilowatt hour.

Therefore, those businesses would see a "bill credit" for the energy that the solar power provides during those peak time hours.

We would like to be able to demonstrate what value this might provide to a small business in California.

Please let us know if you would be willing to share your energy bill for the month of June if your business is on a "time of use" rate.

Hank Ryan

I was listening to NPR Scott Simons this morning and he talked about a poll that was recently done.

The question asked was assuming there is a God do you approve of his/her performance? 52% said they did.

This compares favorably with 46% approval of President Obama and 33% of Congress.

It compares unfavorably with Oprah Winfrey's approval rating of 60%.

Scott went on to say that he would like the question asked of God what his/her approval rating was of the people he created?

I frequently rail against elected officials. I also frequently ask people running for office how they would vote when their constituency/supporters support something that they feel is bad public policy.

Taking this the next step what I am asking is would they vote against their constituency/supporters when they thought it was not in the best interest of our country, state, county or city.

Keep in mind in doing so they could lose their elected office or be recalled.

It is easy for us to criticize when we really have no skin in the game. As we look at the battle in Washington we say that it is all politics. The blame lies with Republicans or Democrats. What do we really expect it to be, given the impact it will have on the elected officials' jobs?

Are we not somewhat to blame?


Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA 94116