SBC 8th Annual Survey/Ex-Im Bank Reauthorization (SIGN LETTER)

Please see link below to our annual survey. The survey takes about 10 to 15 minutes to complete and it sets the agenda for Small Business California for the year. This is our eighth survey. You can see prior surveys by going to www.smallbusinesscalifornia.org.
The results of the survey will go to every state legislator and the Governor. Thank you in advance for completing and please forward to other small business owners.

http://www.zoomerang.com/Survey/WEB22EP7524VUE/

Also, please see letter below from Jody Milanese, Senior Director of Government Affairs from the National Small Business Association. I encourage you all to add your signature. If you have any questions regarding the letter, please do not hesitate to contact Jody at:jmilanese@nsba.biz Her full contact information is also below.

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188

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Good Afternoon –

Throughout the economic downturn, the U.S. Export-Import (Ex-Im) Bank has played an integral role enabling U.S. companies to export goods and services around the world thus creating and maintaining thousands of U.S. jobs. Ex-Im Bank remains a catalyst for the expansion of small-business exports while continuing to support businesses confronting aggressive foreign competition.

Unfortunately, Congress failed to enact a long-term reauthorization by Sept. 30 2011, when its renewable charter expired and has since enacted a short-term extension. The current extension is set to expire at the end of May, 2012 and includes no increase in its lending cap which could cause major stoppages in new lending and support to small businesses when they need it most.

Ex-Im Bank currently has more business in its pipeline than it can support given the current cap limitations, and unless Congress acts soon, exporters could see their lender of last resort falter as it waits for the new reauthorization.

It is critical for Congress to ACT NOW and they need to hear from small businesses!

I am encouraging all of you to sign onto the attached letter to House Leadership urging them to act soon on enacting a long-term reauthorization for Ex-Im Bank and include an increase to their statutory cap. Also, please forward this email onto other small businesses that use OR simply support Ex-Im, as we’d like to collect as many signatures from as many districts and states as possible. If you are interested in signing on, please send me:

SIGNATORY NAME
COMPANY NAME
COMPANY LOCATION (CITY, STATE)

Thank you for your help in collecting as many small business signatures as possible. Please let me know if you are willing to sign-on by COB, Friday, Feb. 10.

Please let me know if you have any questions.

Thanks,
Jody

Jody MilaneseSenior Director of Government Affairs
National Small Business Association
1156 15th Street, N.W.
Suite 1100
Washington, DC 20005
o. 202-293-8830
f. 202-872-8543

==============Letter below, please edit as you see fit ==================




The Honorable John Boehner The Honorable Nancy Pelosi
Speaker Minority Leader
House of Representatives House of Representatives
H-232 Capitol Building H-204 Capitol Building
Washington, D.C. 20515 Washington, D.C. 20515

The Honorable Eric Cantor The Honorable Steny Hoyer
Majority Leader Minority Whip
House of Representatives House of Representatives
H-329 Capitol Building H-148 Capitol Building
Washington, D.C. 20515 Washington, D.C. 20515

Dear Speaker Boehner, Leader Cantor, Leader Pelosi and Minority Whip Hoyer,

As small business exporters, we ask you to support the reauthorization of the U.S. Export-Import (Ex-Im) Bank prior to the end of this congressional session. As members of the Small Business Exporters Association and its affiliate, the National Small Business, we are urging you to act soon on enacting a long-term reauthorization for Ex- Im Bank which includes an increase to their statutory cap.

The Bank, a self-sustaining federal agency, is the official export credit agency (ECA) of the U.S. It helps finance American exports of manufactured goods and services, with the objective of contributing to the employment of U.S. workforce, primarily in circumstances when alternative financing is not available. Ex-Im Bank remains a catalyst for the expansion of small-business exports while continuing to support businesses confronting aggressive foreign competition.

Unfortunately, Congress failed to enact a long-term reauthorization by Sept. 30 2011, when its renewable charter expired and has since enacted a short-term extension. The current extension is set to expire at the end of May, 2012 and includes no increase in its lending cap which could cause major stoppages in new lending and support to small businesses—like myself—when we need it most.

Ex-Im Bank currently has more business in its pipeline than it can support given the current cap limitations, and unless Congress acts soon, exporters could see their lender of last resort falter as it waits for the new reauthorization. This uncertainty could have a devastating effect on our ability to follow through on sales even though we have buyers who want our products.

The Bank enables U.S. companies — large and small — to turn export opportunities into real sales that helps to maintain and create U.S. jobs and contribute to a stronger national economy. For Fiscal Year 2011, Ex-Im supported an estimated $24 billion in export sales, and 290,000 U.S. jobs at over 3,600 companies. The Bank also set a record in its support of small business at $6 billion—an increase of more than 20 percent since 2010. Moreover, the Bank is highly profitable, returning substantial sums to the U.S. Treasury each year. Since the Bank was last reauthorized, it has returned roughly $3.5 billion to the U.S. Government.

Over the next four years, the demand for U.S. capital equipment and services will likely grow dramatically. Since commercial banks have not fully rebounded from the financial crisis, the Ex-Im Bank’s role as "lender of last resort" will in the coming years be even more critical to leveling the playing field for small U.S. exporters in the international marketplace.

We strongly urge you to support a long-term reauthorization for Ex-Im Bank that increases its exposure cap. Extending and expanding Ex-Im Bank’s authorization will enable thousands of American exporters, both large and small, to compete more effectively against foreign competition that enjoys aggressive support from its own export credit agencies. In order to continue to grow U.S. exports, the U.S. economy, and U.S. jobs, we urge you to reauthorize the Bank as soon as possible.


Sincerely,

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NSBA Report: Small Business Climate Improving/ H.R. 3850

Please see below the National Small Business Association yearend report. I find it very interesting that the National deficit came up first in priorities. Do you agree? Next week Small Business California will be sending out its annual survey.

Also, the House Small Business Committee introduced H.R. 3850 to require a 25 percent participation level in government-wide small-business contracting and subcontracting goals. The GET Small Business Contracting (Government Efficiency through Small Business Contracting) Act of 2012:

• raises the small-business contracting goal from 23 percent to 25 percent.
• holds top agencies accountable for meeting the small business goals by withholding the senior agency officials’ bonuses if the small business goals aren’t met.
• ensures opportunities for small businesses as subcontractors, with a goal of awarding 40 percent of all subcontracted dollars to small businesses – an increase from the current goal of 35.9 percent.

Looking forward to hearing your thoughts!

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188

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NSBA released its 2011 Year-End Economic Report. Below, please find links to the press release and full report.

Press Release: http://www.nsba.biz/content/4412.shtml

NSBA Report: Small Business Climate Improving

Feb 1, 2012 The National Small Business Association (NSBA) today released its 2011 Year-End Economic Report which shows a decidedly more positive outlook for America’s small businesses, with important gains in several key indicators. Most notably, more small-business owners report being confident about the future of their businesses than at any time in the last three years, up from 64 percent just six months ago to 75 percent today. “Despite some cyclical ups and downs we’ve seen in the past several years, this report indicates real growth for the small-business community,” stated NSBA President Todd McCracken. “Although we are far from where we need to be, it appears that small businesses have turned an economic corner.” While the majority of small-business owners (66 percent) continue to anticipate a flat economy in the coming year, the number expecting a recession was more than cut in half at 14 percent, down from 30 percent six months ago. Additionally, the number of small businesses expecting economic expansion in the coming year nearly doubled from 12 percent to 20 percent in six months. Revenue growth was at its highest point in more than three years with 46 percent of small businesses reporting increases—up from 39 percent six months ago. There was a commensurate drop in those reporting decreases in revenue from 37 percent to 31 percent. And while job growth didn’t experience the same kind of growth—it remained unchanged at just 22 percent reporting increases—the number of small businesses (23 percent) reporting employment decreases was the lowest it’s been in three years. When asked which issues are most important for policymakers to address, small businesses overwhelmingly ranked reducing the national deficit number one—up to 44 percent from 34 percent six months ago—followed by reducing tax and regulatory burdens and reigning in the costs of health care. Along those lines, there was a marked increase among small-business owners who cited regulatory burdens as a major challenge for their business—up from 31 percent six months ago to 40 percent today. “Although this report is by far the most positive we’ve seen in quite some time, it is imperative policymakers not mistake these gains for a task completed,” stated NSBA Chair Chris Holman, CEO of Michigan Business Network.com and President of The Greater Lansing Business Monthly. “There are countless issues that continue to hinder small businesses.” Please click here to access the 2011 Year-End Economic Report.

Pregnancy Disability Leave/ Healthcare S&P warnings

Please see below for a really good piece on the new pregnancy law and the potential liabilities for employers. It is applicable if you have 5 employees or more.

Yesterday in Reuters, it was reported that Standard & Poors recently did a report warning of downgrades that may arise in a Group of 20 countries, including the US, if they didn’t deal with their steadily rising healthcare spending. This likely would start within three years and according to S&P, could happen by 2020, which may put a number of countries with ratings reflecting junk status.

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188

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Pregnancy Leave Law Creates Confusion

With the recent passage of Senate Bill 299, many employers are confused on how to continue coverage for an employee on a pregnancy disability leave (PDL) when the employee has a co-pay obligation but does not have any wages. Does the employer have to collect the co-pay? Does the employer pay for the full premium while the employee is out on leave and then ask for a reimbursement when the employee returns? And if so, is a written authorization necessary to withhold the past due co-pay from future paychecks?

SB 299 states:
It shall be an unlawful employment practice, unless based upon a bona fide occupational qualification:
(a) (1) For an employer to refuse to allow a female employee disabled by pregnancy, childbirth, or a related medical condition to take a leave for a reasonable period of time not to exceed four months and thereafter return to work, as set forth in the commission's regulations. The employee shall be entitled to utilize any accrued vacation leave during this period of time. Reasonable period of time means that period during which the female employee is disabled on account of pregnancy, childbirth, or a related medical condition. An employer may require an employee who plans to take a leave pursuant to this subdivision to give the employer reasonable notice of the date the leave shall commence and the estimated duration of the leave.

(2) (A) For an employer to refuse to maintain and pay for coverage for an eligible female employee who takes leave pursuant to paragraph (1) under a group health plan, as defined in Section 5000 (b)(1) of the Internal Revenue Code of 1986, for the duration of the leave, not to exceed four months over the course of a 12-month period, commencing on the date the leave taken under paragraph (1) begins, at the level and under the conditions that coverage would have been provided if the employee had continued in employment continuously for the duration of the leave. Nothing in this paragraph shall preclude an employer from maintaining and paying for coverage under a group health plan beyond four months.

CEA contacted our attorney’s and the senator’s office who wrote this bill and no one can clarify the original question: What do you do when an employee is out on PDL and they would normally have a co-pay for their health insurance deducted from their paycheck; however, since the employee is not working the deduction is unavailable?

Our attorneys are all of the same opinion: First give a written notice to the employee going out on PDL that the co-pay must be paid by a date certain (usually the first or fifteenth of the month). Nevertheless, many times the employee doesn’t pay, and even worse the employee does not return to work after the pregnancy leave, and has now gotten 4 months of free health coverage. The employer is left to pursue the employee in small claims court to collect the money it advanced for the insurance.

If you cancel the insurance the first time the employee fails to make a payment on the date set by the employer, the potential liability from such an act outweighs the few hundred dollars the employer might be out if the employee never returns.

If the employee fails to pay during her period of leave, but then returns to work, the employer can attempt to get a written authorization to make the additional deduction from pay, but if the employee refuses, the employer’s only alternative is to seek compensation in court.

This truly is an unfair burden on the employer and we will push the senators office (who wrote the bill) to get further clarification on this matter. For now, we recommend you pay and look for reimbursement.

CEA is a not-for-profit human resource employers association that serves over 9,000 businesses throughout California. CEA is committed to providing members with the information, clarity, and perspective they need to perform in today's business environment. For more information on membership go to www.employers.org or call 800.399.5331

Cal Osha- response from Ellen Widess

Please see below for the email from Ellen Widess, chieft of Cal OSHA. Please let me know if you would be interested in working on this project. Also, let me know if you have any issues with Cal OSHA.

Scott Hauge, President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188

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Hi, Scott,

I so enjoyed our meeting and appreciate your sending our Cal/OSHA IIPP/Emergency Action Plan out to your email tree. We are delighted by the positive response to the etool and look forward to working with you, and any members you'd like to include, on disaster and emergency response plans. This is the first of many collaborative and productive projects we want to undertake to help small employers.

Best,
Ellen Widess, Chief
Division of Occupational Safety and Health Department of Industrial Relations
1515 Clay St., Ste 1901
Oakland, CA 94612
510-286-7000

SBC Accomplishments/ Senator Feinstein

I was contacted by Senator Feinstein’s office and she is looking at introducing legislation to assist small businesses in dealing with frivolous American with Disability lawsuits. Is this a problem in your area? Do you know attorney’s filing these lawsuits? Do you know how many lawsuits have been file in your area? Do you know the cost of these lawsuits?

Please see below piece I have put together outlining activities for Small Business California for 2011. I would appreciate your forwarding this to small businesses you know or if you are active in an association including in your newsletter.


Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188

============

Small Business California was founded in 2005 to provide information to grass roots small businesses around California and to advocate for the economic development of these small businesses. We pull data from small businesses around the state in our annual survey to determine the most important issues. In 2011, we received over 1,300 responses from every county in the state.

The issues identified in our 2011 survey in order of high/top priority are:

1. The availability and rising cost of health care
2. The quality of public education
3. Repairing and enhancing the State’s infrastructure
4. Reducing state taxes/ Access to capital
5. The worker's compensation system
6. The cost of energy
You can see the rest of the 2011 responses and responses from prior years by going to our website: http://www.smallbusinesscalifornia.org/

Small Business California has put together a very extensive email tree throughout California. This email tree lets small businesses know about what is going on in Sacramento and to a lesser degree, Washington, DC. It also has become a very good resource for the media around the state. Many members have been quoted in most of the major media outlets, not only in Sacramento, but in Washington as well. Small Business California has a lobbyist in Sacramento. Between board members and our lobbyist, we frequency testify at committee hearings in Sacramento. Some of the bills we testified on are below.

The following bills that were testified on and were signed and passed by the Governor:

· AB 29 (J. Perez) – Creates the Governor’s Office of Economic Development-
· AB 155 (C. Calderon) – Known as the E-Fairness bill, AB 155 will coordinate the enactment of federal law giving states the authority to require out-of-state internet retailers to collect state sales taxes and enable California small businesses to compete on a level playing field with on-line retailers.
· AB 335 (Solorio) – Enables the Department of Industrial Relations Division of Workers’ Compensation to produce an informational pamphlet and create a web accessible site that explains the workers’ compensation system and notices of benefits to employees.
· AB 361 (Huffman) – Establishes the formation of a new form of corporate entity known as benefit corporations and eases the requirements for a small business corporation to amend its articles of incorporation to take advantage of this option.
· AB 1426 (Solorio) – Reduces costs and increases transparency by eliminating an unnecessary layer of state government in removing the duplicative function of the court administrator position and distributing the duties to the Workers’ Compensation Appeals Board and the Division of Workers’ Compensation Administrative Director.
· SB 32 (Leno) – Would enable local restaurants and bars to infuse alcoholic beverages with herbs and flavorings by revising an outdated statute that prevents them from doing so.
· SB 826 (Leno) – Currently, the state is experiencing a shortage of workers’ compensation data that is used among other things in accurately assessing employer’s workers’ compensation premiums. This data is already required by law to be reported by the insurance carrier’s claims administrators; however, there was no penalty for non-compliance. SB 826 establishes a minor penalty on the claims administrator for the failure to report this data. The bill was fashioned in a way that will not pass on any additional costs to the employer, but to ensure a more accurate calculation of premium.

The following bill was vetoed:

· SB 823 (Corbett) – This bill will establish a “Made in California” label that will assist in the marketing of California-made products. This bill will also establish an advisory group of small businesses representatives who will advise the Governor’s Office of Economic Development (GO ED) on the requirements and the criteria for carrying the Made in California label. (Vetoed)


On the federal level, we were a major force in the appeal of the requirement for business to file 1099 and all their 1099 independent contractors. We also have been recognized by the Small Business Technology Transfer (STTR) for getting the Small Business Innovation Program reauthorized after more than five years.

Please consider joining us as a member of Small Business California by going onto our website:http://www.smallbusinesscalifornia.org/

SB-Cal is a non-partisan advocacy organization lobbying the legislature on behalf of small businesses in California. We develop solutions to your problems, creating the basis for effective new small business legislation in Sacramento. As a SB-Cal member, you will be called on to add your focus and insights into how California legislators should address small business issues, develop and support legislation and pro-active policy solutions to challenges faced by you as a small business owner. That is our strength; the force of informed small businesses acting together.

Scott Hauge
President
Small Business California
shauge@cal-insure.com
415-680-2109

Pregnancy Disability Leave/ Nre Employees/SB810

There are new laws that have gone into effect January 1, 2012. These are applicable to all businesses with 5 or more employees. The State of California Department of Fair Employment and Housing says:

“Under the California Fair Employment and Housing Act, if you are disabled by pregnancy, childbirth or a related medical condition you are able to take pregnancy disability leave. If you are affected by pregnancy or a related medical condition, you are also eligible to transfer to a less strenuous or hazardous duties,if this transfer is medically advisable”

“PDL is for any period[s] of actual disability caused by your pregnancy childbirth or a related medical condition up to four months[ or 88 work days for a full-time employee] per pregnancy”

You will also be required to continue to pay for medical benefits as you are doing before the leave. For more detail contact me and I will send you information from the California Employers Association. Have any of you hired a new employee in 2012 and remember to give them the form (now required of employers) regarding salaries and workers compensation coverage?

Mark Leno has introduce SB 810. This bill is the so-called single payer bill. If passed the state would in effect be in the insurance business. What do you think of this?


Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188