Friday, August 31, 2012

SB 863 letter

Please see my response to Chronicle Editorial this morning opposing passage of workers compensation reform bill.

The attachment is the support Small Business California has gathered from small business associations and small businesses around the state. We were able to get 24 associations and 124 small businesses sign on to the letter. (letter is below)

Scott Hauge


Small Business California

2311 Taraval Street

San Francisco, CA 94116



From: Scott Hauge

Sent: Friday, August 31, 2012 6:24 AM

To: 'Diaz, John'

Subject: FW: SB 863 letter

John, Please see attached small business associations and small business owners who are supporting SB843. We respectfully disagree with the Chronicle Editorial saying that we should wait to pass a workers compensation reform bill.

Small businesses can’t wait. We are hearing rates are going up over 12% if this does not pass. Small businesses are struggling right now given the state of the economy and these additional cost could potentially put small businesses out of business or force them to cut employees.

The other part of the equation is that our employees can’t wait for an increase in their benefits. In 2004 they saw their benefits cut drastically and SB863 will help solve this problem.

We know this legislation is not perfect but we believe the old adage of “don’t let the perfect be the enemy of the good “applies here.

Scott Hauge


Small Business California

2311 Taraval Street

San Francisco, CA 94116



TO: Members of the California State Senate and Assembly

FROM: California Small Businesses in Support of Workers’ Comp Bill

DATE: August 29, 2012

RE: SB 863 (De Leon) - Workers’ Compensation Fair & Balanced Reform – SUPPORT

We, the undersign California Small Businesses write to STRONGLY SUPPORT SB 863 (de Leon), that will ensure a fair and balanced approach to correcting our costly and inefficient workers’ compensation system.

We support SB 863 that will correct the inefficiencies of our state’s workers’ compensation system. This legislation accurately identifies key problem areas as identified in the numerous reports produced by the California Commission on Health and Safety and Workers’ Compensation. SB 863 will provide the corrective measures to reduce costs to small businesses, and based on the savings achieved, will provide a reasonable benefit increase to injured workers.

Enactment of Senate Bill 863 is necessary now before projected rate increases hit an all- time high. California employers paid $16.2 billion for workers' compensation in 2011, and the cost continues to rise. The Workers' Compensation Insurance Rating Bureau (WCIRB) recently approved an 18% rate increase on California businesses, while industry analysts also predict even greater hikes next year. SB 863 will prevent these increases on small businesses, while also fixing the systemic problems identified by the stakeholders.

Senate Bill 863 will redirect benefits to increase payments to disabled workers, while taking the corrective steps to reduce unnecessary disputes and litigation. These steps include better oversight of the Medical Provider Networks, the establishment of fee schedules that would keep fees paid at a consistent level, and significantly reduce lien claims by providers who treat injured workers and who are not in the employers’ network.

Projected savings of up to $1.3 billion can be saved by reducing expenses for liens, out-of-network treatment disputes and other unnecessary expenses that keep small businesses’ premiums on the rise. Injured workers would receive approximately $700 million in additional compensation benefits and California employers would save up to $800 million.

California’s Small Businesses who strongly support SB 863 (Lieu) urge the Legislature to approve this bill before the 20111-12 session adjourns. Small Businesses simply cannot afford another 18% increase in their workers’ compensation premiums next year. We are confident that the provisions included in SB 863 will significantly reduce the wasteful spending of our premium dollars so that injured workers can receive the reasonable benefit increases that they deserve.

If you have any questions, please contact me directly at 415.680.2109 or Or, you may contact our Governmental Advocate in Sacramento, Lori Kammerer, Kammerer & Company, at 916.441.5674 or at

cc: David Lanier, Legislative Policy Unit, Office of the Governor

The Hon. Marty Morgenstern, Secretary, Labor and Workforce Development Agency

Ms. Christine Baker, Director, Department of Industrial Relations

Kevin De Leon, Senator,(D-Los Angeles)

The Honorable John A. Perez, Speaker of the CA State Assembly

Mary Kaems, Special Asst, Speaker of the Assembly on Small Business and Jobs Development


1. Brand Source Pacific Rim Region

2. California Association of Competitive Telecommunications Companies

3. California Employers Association

4. California Fence Contractors’ Association

5. California Chapter of the American Fence Association

6. California Independent Oil Marketers Association

7. California Metals Association

8. Coalition of Small and Disable Veteran Businesses

9. Engineering Contractors' Association

10. Flasher Barricade Association

11. Independent Maintenance Contractors Association

12. Licensed Contractors of California

13. Oakland Metropolitan Chamber of Commerce

14. Northern California Independent Booksellers Association (NCIBA)

15. Marin Builders ‘Association

16. Monterey County Business Council

17. Pacific Automotive Recyclers and Machining Association

18. Plumbing Heating and Cooling Contractors of California

19. San Francisco Builders Exchange

20. San Francisco Council of District Merchants Associations

21. San Francisco Chamber of Commerce

22. San Francisco Small Business Network

23. Small Business California

24. The Coalition for Quality Affordable Health Care


1. Scott Hauge, President, CAL Insurance & Associates Inc, - San Francisco

2. Scott Hauge, Vice President, Clayscott Insurance Agency- San Francisco

3. Edward Kaplan, President, Kaplan Architects- San Francisco

4. Kay Reynolds, Partner, Tools for Business Success – Pine Grove

5. Sarosh Kumana, Owner, Pacific Investments – San Francisco

6. Barry Bochner, CEO, Biolog, Inc. – Hayward

7. Cathy Murphy, CEO, Home Instead Senior Care

8. Ron Purcell, Founder, RelQual Associates – Oxnard

9. Thea Selby, Principal, Next Steps Marketing – San Francisco

10. James Roten, CEO, Raven Office Centers – San Francisco

11. Syndi Seid, Founder, Advanced Etiquette- San Anselmo

12. Patty Schmucker, President, DoshaCare- Torrance

13. Elizabeth Fazzio, Vice President, Blue Heron Catering – Oakland

14. Sharon Ascencio, Principal, Ascencio Accounting & Business Services- Oakland

15. Elizabeth Parker, Tulsa Rib Company Restaurant and Catering- Orange

16. John Swan, Vice President, CompPartners – Irvine

17. Norman Garcia, President, Name-Finders Lists, Inc.- Oakland

18. Steve Paoli, President, Mission Bay Food Company – San Francisco

19. Edwin Caba, Owner, Creo La Bistro- San Carlos

20. Ruthie Norton, Sen. Vice President, CCI – San Francisco

21. James Stewart, President,Bayside Heating & Air Conditioning – Redwood City

22. Steve Diddams, President, Diddams Party & Toy- Mountain View

23. Richard Boehl, President, QTE North America Inc.- Rancho Cucamonga

24. Peter Abowd, Manager, Clock Four – San Rafael

25. Vicky Martinez, Owner, Bay Area Re-Roofing– Belmont

26. Bernard Poggetti, Owner, Capitol Electric – San Francisco

27. Thomas Wong, Marathon Packing – San Leandro

28. Mark Klaiman, Owner, Pet Camp- San Francisco

29. Stephen Cornell, Owner, Brownie’s Hardware – San Francisco

30. Meskerem Tadesse, Founder, The Optimize Group – Marina Del Rey

31. Timothy Moran, CFO, Conradshades- San Francisco

32. Tom Cebollero, Owner, Metric Motors – San Francisco

33. Alexandra McIntyre, CEO, RPM/Courier – Alameda

34. Michael Wan, Owner, Ebj Wholesale- Oakland

35. Jim Franzi, Owner, Elmack Cabinetry – Mill Valley

36. Linda Hannawalt, The Shop Around the Corner

37. Mitchell Bearg, Owner, Petline- San Carlos

38. Keola Caindec, North 37 Partners – Larkspur

39. Liz Palacios, Owner, Liz Palacios Designs – San Francisco

40. Elaine Kirk, Banker, Marks & Kirk – Oakland

41. Angelo Pucci, President, G.Pucci & Sons – Brisbane

42. Arnie Lerner, Principal, Lerner & Associates Architects – San Francisco

43. Eric Steckel, Vice President, Bars & Tone – San Francisco

44. Keith Ensminger, Principal, Kramer Translation- Merced

45. Stephen L. Dobrow, President, Primark Benefits- Burlingame

46. Norman P. Ishimoto, President, KI Associates- San Francisco

47. Henry Karnilowicz, Owner, Occidental Express- San Francisco

48. Dan Cerf, Owner, SF Party – San Francisco

49. Elliot Wagner, Manager, Dimitra’s SkinCare & MediSpa – San Francisco

50. Chris Goodwin, Owner, Plumbworks – San Francisco

51. Joanne Gomez, Owner, West Bay Plastics Inc- San Francisco

52. Jim Ross, President Jim Ross Consulting- San Francisco

53. Erin Casey, Manager, KC Glass – San Francisco

54. Renny Marin, President, California Bingo Service

55. Lee R. Petillon, President, Petillon Hiraide & Loomis LLP- Torrance

56. Greg Spry, President, Spryscapes Construction – San Francisco

57. Steven L. Isler, General Counsel & Tax Director, TaxCenters, Inc. – San Francisco

58. Kevyn Higgs, President, The Slanted Door Group – San Francisco

59. Luci Li-Akana, President, Akana Designs – Richmond

60. Spender Chan, Manager, Value Fire Protection – San Francisco

61. John O’Neill, Vice President, Cohn-Reid-O’Neill Insurance Services – San Mateo

62. Bruce O. Huff, Partner, The Kimber Companies – San Francisco

63. Constance M. John, President, MandalMed – San Francisco

64. Jeff Leopold, Partner, Standard 5 &10 Ace – San Francisco

65. Nancy Perata, CFO, Novani – San Francisco

66. Robert Mack, CEO, Biscotti – Oakland

67. Denise Collins, Owner, Aunt Ann's In House Staffing- San Francisco

68. Joe Mackey, CEO, XL Staffing & Security – El Cajon

69. Frank Barnes, CEO, Special Events Staffing- Pasadena

70. Shirley Patrick, Account Rep, Alpha Staffing Services, Rancho Cucamonga

71. Jackie Lance, Owner, Black Diamond Bags – Martinez

72. Mike Sterling, Owner, Sterling and Company – San Anselmo

73. Micheal Bennett, Owner, Bennett Tile Company

74. Angela Sisneroz, CEO, Medelect – Lincoln

75. Steve Fee, Partner, FME Architecture & Design – San Francisco

76. Judi Stiles, Owner, Stiles in Travel- Fair Oaks

77. Sharon Richardson, Principal, Ferrari Florist & Gifts- Santa Cruz

78. John Scott, CFO, The Little Giraffe – Van Nuys

79. Ben Stiegler, CEO, SYNERTEL Managed IT & Converged Communications Solutions- San Francisco

80. Steve Lang, Owner, Lang Roofing – Bell Gardens

81. John Miller, Owner, Regent Apparel – South San Francisco

82. Violeta Galang, Manager, The Futon Shop – San Francisco

83. Jann Fitzgerald, President, RapidRenu- San Francisco

84. Melissa Rich, President, InterSchola- San Francisco

85. Chrissy Dodds, Partner, Adaptive Technology Service – San Francisco

86. Gary Smith, President, Brandywine Communications – Tustin

87. Roanna Biedenweg, Owner, Sterling Tax Services- San Francisco

88. Jean Marie Lescohier, Corporate Secretary, Clipper Construction, Inc. – San Francisco

89. Brent Madsen, Owner, Anette’s Chocolate Factory – Napa

90. Mike Moller, Owner, Moller Realty Group – Corning

91. Vince McDonald, President, McDonald Plumbing Heating & Air – Sacramento

92. Valorie Green, Officer, Solana Investments – Mission Viejo

93. Helga Grayson, CFO, Thinknicity- San Francisco

94. Huy Dang, Owner, VanVy LLC, Laguna Hills

95. Patrick Shreffler, Owner, Emergency Management Consultants- Posey

96. Paula Tejeda, Founder, DBA Chile Lindo – San Francisco

97. Helen Medina, Owner, Parsons Lumber & Hardware – Boyes Hot Springs

98. Alice Thompson, President, Sage Cheshire Aerospace- Lancaster

99. Steve Lemmon, Owner, Great Clips – Walnut Creek

100. James Baird, CEO, Bay Area Development Company – Oakland

101. Moe Abbassi, CFO, Rdi Resource Design Interiors – San Francisco

102. Dave Chapman, President, Chapman Coast – Fullerton

103. John Cosmides, Founder, Barustors- San Francisco

104. Tim Hallen, Manager, Golden Gate Tank Removal- San Francisco

105. Jeff Yamaoka, Owner, Advance Cleaning Systems- San Francisco

106. Keith Goldstein, President, Everest Waterproofing & Restoration- San Francisco

107. John Withers, President Kesson Co- Rohnert Park

108. Randy Soso, President, Metal Building Company –Oakland

109. Sergio Raddavero, President, WCBS – San Carlos

110. Drumm McNaughton, President, The Change Leader – Fallbrook

111. Christine Richardson, President, O’Connell Jetting Systems – Benicia

112. Dennis Albrecht, Owner, Electric Laboratories – Fresno

113. Tom Lacey, President, Mission Business Center – San Francisco

114. Kevin Gray, President, Cornely Company – San Francisco

115. George Taddie, Owner, Tadco Supply – San Jose

116. James Hooper, President, Hooper’s Contract Management Services - San Martin

117. Vanessa Eckerman, Gutter Glove- Rocklin

118. Leonard Strickland, Owner, River Pointe Insurance Agency – West Sacramento

119. Laura Losquadro, CFO, Daisy I.T Supplies, Sales & Services- Rancho Cucamonga

120. Grace Santana, Owner, Santana Plumbing – San Francisco

121. Sarah Dvorak, Owner, Mission Cheese- San Francisco

122. Cliff Ishii, President, Ishii Engineering – San Francisco

123. George Salet, Owner, George Salet Plumbing- Brisbane

124. Janet Sahagun, Manager, Sahagun & Beebe- San Francisco

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