Yesterday Lori Kammerer Small Business California government affairs person, Lee Petillon Board member Small Business California and I testified on Small Business California sponsored bill AB 2081 before the Senate Banking and Finance committee[Allen]. This bill would authorize the solicitation of accredited investors. It is similar to the JOBS bill passed in Washington but would give investors 10 or 11 protections that probably will not be in the SEC regulations which are expected August 22. The bill passed 4 to 2 with one abstention. It now goes forward to Senate Judiciary. Opposing the bill is AARP and the Public Investors Arbitration Bar Association. It is their belief that the bill does not provide enough protection for investors especially seniors.
It is an interesting position as the JOBS bill will most likely provide little or no protection and California investors will be left with only that option.
It is expected that SB 1234[DeLeon] will be coming before Senate Appropriations today. This bill would mandate that all businesses with 5 or more employees would be required to set up a retirement plan for their employees. It does not require an employer contribution and allows employees to Op Out. Small Business California opposes this because of the mandate and the cost to the state which is estimated to be somewhere between $100 million and $600 million.
The lobbying on this has been extensive supported by unions and opposed by Small Business California , California Chamber, the Financial Industry and other business groups. Should it pass Appropriations and the Senate it will go to the Governor. It is not clear if the Governor will veto the bill.
Small Business California