Supreme Court Decision

Does the Supreme Court decision today throwing out the defense of marriage act have any impact on a small business? If so how will it affect your business?

Scott Hauge

President

Small Business California

2311 Taraval Street

San Francisco, CA 94116

shauge@cal-insure.com

415-680-2188

The Tipping Point in Hiring/Prop 65

Michael was the past director of EDD and writes frequently for Fox and Hound. He would appreciate your comments on his tipping point question. Are there any other cost that have a bearing on your hiring decisions.





Scott: I’d welcome hearing from Small Business California on to what extent we’ve reached a tipping point in hiring in California.



The costs associated with each hire have increased for several decades in workers’ compensation, unemployment insurance, and most of all recently in health care costs. California employers, as employers throughout the nation, have been looking at alternatives for some years in greater use of part-time and contingent employees and independent contractors, as well as the use of technology to replace workers.



Is there something going on today that is different? Have we reached a new tipping point in hiring?

Mike



Michael S. Bernick

Michael.Bernick@sedgwicklaw.com
415.627.1446

333 Bush Street, 30th Floor

San Francisco, CA 94104-2834

415.781.7900 phone
415.781.2635 fax
www.sedgwicklaw.com





I have a reporter in Sacramento looking for small businesses impacted by Prop 65. the Safe Drinking Water and Toxic Enforcement Act of 1986. It was enacted as a ballot initiative Nov 1986.. The Proposition was intended to protect California citizens and the States drinking water sources from chemicals known to cause cancer, birth defects or other reproductive harm and to inform citizens about exposures to such chemicals.

Prop 65 requires the Governor at publish at least annually a list of chemicals known to the state to cause cancer or reproductive toxicity.



It has been used to bring a number of lawsuits against businesses of which many feel are unwarranted. Would you be willing to talk to the reporter. If so please give me your location. He is especially interested in small businesses in the Sacramento area.





Scott Hauge

President

Small Business California

2311 Taraval Street

San Francisco, CA 94116

shauge@cal-insure.com

415-680-2188

SB71/AB76

Two very important bills are on the Governor’s desk which in my mind have extreme ramifications to public disclosure by local governments SB 71 and Ab76. These were introduced a trailer bills to the accompanied the state budget. What they do is allow local government to ignore compliance of request made under the Public Records Act. The argument made for these bills is that it will save the state money as they reimburse local governments for the cost to comply with these request. It is not clear what the cost savings will be.

Proposition 59 passed in 2004 by a wide margin . This measure guaranteed the “right of access to information concerning the conduct of the people’s business”’

Small Business California just found out about these bills yesterday so we have not had time to take formal position. I would however encourage all of you to read the Editorial page of the Chronicle opposing this.

If you would like to weigh in on this the Governors phone number is 916-445-2841 and fax is 916-558-3160





Scott Hauge

President

Small Business California

2311 Taraval Street

San Francisco, CA 94116

shauge@cal-insure.com

415-680-2188

Regulations/Security Breech

In a previous email I asked about state regulations that you are impacted by that don’t make sense. I received about 20 responses and many of the regulations noted were local and not state. I also received comments on regulations that were created legislatively and therefore cannot be changed administratively.

What I also heard was that there is a lot of fear of retribution from the state if you speak out. I certainly understand this and am not sure how to get around this. I once held a meeting with Cal OSHA consulting and no one except myself would have the meeting in their office for fear of retribution from OSHA.

I see this as a real problem not just with regulations but any time you question government actions there is fear. This is really sad.





In a previous email I mentioned that Massachusetts had passed a law regarding data breech. Some of you have asked what the law is Please see links that provide information about Mass law.

Article: http://insurance321.com/cyber-liability-insurance-need-on-the-rise-for-massachusetts-companies



Article: http://www.dfmurphy.com/news/Do-you-comply-with-Mass-Personal-Information-Protection-Laws



Article: http://www.lexology.com/library/detail.aspx?g=9523804c-67ab-4e68-a09f-658afd17ff93



Please see below a short description of Mass law. In the coming years I believe you are going to see more of these laws passed around the country. For your own benefit and the benefit of your customers take this seriously and make sure you have protections in place. As before if you want a check list of simple protections you can implement in your company let me know and I will send you a list I have put together



Massachusetts is one of more than 45 states and US territories to enact personal information data breach notification statutes and regulations. These state schemes join multiple federal regulatory schemes requiring comprehensive data security programs. On March 1, 2010, regulations promulgated by the Massachusetts Office of Consumer Affairs and Business Regulation went into effect requiring the implementation of written information security plans as well as administrative, technical, and physical safeguards by businesses in possession of personal information of any Massachusetts resident-regardless of the business' location.

Civil litigants and regulators are poised to enforce statutory and regulatory standards using contractual, consumer data and identity protection, and common-law claims that present tremendous financial exposure to companies possessing protected personal information. This exposure includes possible claims for remedial costs to address a breach, as well as increased monitoring expenses, civil and/or criminal penalties, consumer class actions-and in some cases, exemplary and/or statutory multiple damages claims. High defense costs and potential loss of business relationships and revenue compound the exposure.



Scott Hauge

President

Small Business California

2311 Taraval Street

San Francisco, CA 94116

shauge@cal-insure.com

415-680-2188

Budget/ Bill Status/ GoBiz

So the Governors May revise has passed and The governor seems to be the big winner except for his proposal to eliminate the Enterprise zones.

On that he will be bringing back his proposal at a future date. We expect to see some language in the next few days.

\

Also on the budget AB 769 which would eliminate the New Operating loss carryback was not in any amendments in the revise so it is dead but it could come back in a gut and amend. We will be watching between now and August to see if this comes back.



A little known provision in the budget will give the courts an additional $60 million. This is good news after all the cuts the court has seen.



AB 837 which is a sponsored bill by Small Business California will be heard today in Senate Business Professions and Economic Development and is expected to pass on consent calendar today.



AB10 has passed the Assembly and will be going to the Senate. This bill will raise the minimum wage to 8.25 in January 2014 , $8.75 January 2015 and $9.25 January 2016. The bill also has a provision for increases based on cost of living index.



How many of you have had contact with the Governors of Business and Economic Development[ GoBiz]. If you have worked with the Governors Advocate for Small Business you have had contact. How many have attended the Brown Bag events on the Affordable Care Act put on by Barbara Vohryzek the Governors Small Business Advocate. How many don’t know what GoBiz is?





Scott Hauge

President

Small Business California

2311 Taraval Street

San Francisco, CA 94116

shauge@cal-insure.com

415-680-2188

Cyber Attacks/Covered California

Cyber attacks on small businesses are becoming more and more prevalent. One company that monitors this said there are between 5000 to 7000 small businesses a day that pick up a virus. That is around 2 million a year and the problem keeps getting worse.

There are discussions around the country about holding people responsible should they negligently fail to put in place reasonable protections like changing passwords and firewalls just to name a couple. I have been told a law to this effect is in place in Massachusetts but I am not clear on the provisions.

I do believe in future you will see such laws around the country and may see a Federal law to protect National security.

You may be saying that you are a small business and the bad guys won’t come after you. Wrong . There are now automated tools that are out there that can monitor your computer. It is not necessary for an individual to do this.

So do you follow procedures to protect yourself from security breaches? Do you know what procedures you should put in place to protect yourself? If laws are being discussed are there incentives that could be provided to small business?

I assure you are going to be hearing a lot about this in the coming years. If you want a checklist of risk management procedures let me know.



Just got word that the expected information next week about the Covered California[Exchange] small group program[SHOP] will not be sent until August. This means rates and provider networks will not be available until August sometime.







Scott Hauge

President

Small Business California

2311 Taraval Street

San Francisco, CA 94116

shauge@cal-insure.com

415-680-2188

National Small Business Week- Social Updates

Thank you to all that have sent me your comments about California regulations. All your ideas have been sent to Barbara Vohryzek the Governors Small Business Advocate.

Please see information on National Small Business Week

Greetings-



The U.S. Small Business Administration is gearing up for National Small Business Week, June 17-21, 2013. National Small Business Week is a time to honor the 28 million small businesses that drive America’s economy. Small businesses create two out of every three new jobs – and half the people who work in the U.S. own or work for a small business.



In an effort to help build excitement around National Small Business Week, we have put together social media updates you can use to help spread the word. Please see attached. If possible, please let us know what your organization plans to do to help promote National Small Business Week.



For more information, visit the official National Small Business Week website at www.sba.gov/smallbusinessweek. You can also follow the conversation on Twitter using the hashtag #SBW2013.



Thank you in advance for your support,



Natale Goriel

SBA Office of Communications and Public Liaison

Twitter
Foursquare
YouTube
Facebook
LinkedIn
Google+
Email Alerts



You all know about my activities with Volunteers in Medicine and Clinic by the Bay. Take a moment to visit our new video for Clinic by the Bay. Go to www.clinicbythebay.org and click on About Us.





Scott Hauge

President

Small Business California

2311 Taraval Street

San Francisco, CA 94116

shauge@cal-insure.com

415-680-2188

Regulations/Licensing

We hear every day that California businesses are over regulated. I was at a meeting this morning with the Barbara Vohrzek the Governors Small Business Advocate and Kish Rajan the Director of GoBiz and they said they were looking for examples of California regulations and maybe permits the state requires that are burdensome and appear to accomplish nothing of significance. Please give me examples and be specific. This is your chance to have your voices heard.



For all of you that have a license with the state please know that the state does not need to send notices of renewal and you are responsible to complete the paperwork and pay any fees whether you receive a notice or not. If you do not do this before renewal your license is in effects suspended. Have any of you had this problem.





Scott Hauge

President

Small Business California

2311 Taraval Street

San Francisco, CA 94116

shauge@cal-insure.com

415-680-2188

shop local studies

Stacy Mitchell is the head of the Institute for Local Self reliance. It is a terrific organization that studies the community benefits of locally owned businesses.

Please see links to some of the studies her organization has done and buy local.



Scott Hauge

President

Small Business California

2311 Taraval Street

San Francisco, CA 94116

shauge@cal-insure.com

415-680-2188







Survey Finds Independent Businesses Benefit from “Buy Local First” Campaigns, But Challenges Loom

ILSR’s annual survey has found that independent businesses experienced solid revenue growth in 2012, buoyed in part by “buy local first” initiatives. But the survey also documented challenges facing independent businesses, most notably an increase in “showrooming” and competition from online retailers, tax and subsidy policies that favor their big competitors, difficulty obtaining loans, and a customer base still reeling from the recession.

http://www.ilsr.org/2013-independent-business-survey/

Locally owned businesses can help communities thrive

Cities where small, locally owned businesses account for a relatively large share of the economy have stronger social networks, more engaged citizens, and better success solving problems, according to several recently published studies.

http://www.ilsr.org/locally-owned-businesses-communities-thrive-survive-climate-change/



Key Studies

Summaries and links to key studies that examine the impact of large retail chains and the benefits of locally owned businesses.

http://www.ilsr.org/key-studies-walmart-and-bigbox-retail/



Why We Can’t Shop Our Way to a Better Economy: Stacy Mitchell’s TEDx Talk

http://www.ilsr.org/ted/



Please click link here for the main page for ILSR's Independent Business Initiative. You'll find articles, resources, and a library of policy tools. If you would like more information, please contact Stacy Mitchell below:



Stacy Mitchell

Institute for Local Self-Reliance

http://www.ilsr.org

Tel: 207-774-6792

Twitter: https://twitter.com/stacyfmitchell

smitchell@ilsr.org



The Hometown Advantage Bulletin

http://bit.ly/hometown-advantage

Governors Revise Enterprise/AB80

Yesterday I sent out information about the Governors Budget Revise and Enterprise Zones. I have some additional information that might be interesting to you.

First the Governors plan will require a two thirds vote.

Second the credit will apply only to wages above $12 up to $28 per hour. The Enterprise Zone program gave a credit up to $12 per hour.

Third the credit is 35% of wages each year for a total over 5years of 175%.. Current Enterprise Zone 50% first year and declines 10%each year until total reached 150%.

Fourth and this is important the employer needs to retain employee three years. If they get a credit and the employee leaves the employer has to return the credit.





There is an interesting bill pending in Sacramento AB 880, What it does is require businesses with 500 or more employees to pay 110% of the commercial rate for health insurance

for all employees that are on Medical. This would include all employees who work 8 hours or more. It requires a two thirds vote,

This is a good example of how gut and amend works. This bill started out as an EDD Data Collection bill and in April it was gutted and amended into its current form.







Scott Hauge

President

Small Business California

2311 Taraval Street

San Francisco, CA 94116

shauge@cal-insure.com

415-680-2188

Governors May Revise

This week the Governor came out with his May Revision to the budget. One issue that many small businesses have been watching is the fate of the Enterprise Zone[EZ] program. In his May Revise he took away $700 from the EZ and redirected the funding to



Sales Tax The existing sales tax credit for businesses located in the EZ will be expanded to a statewide sales tax exemption on manufacturing equipment or research and development equipment purchases by firms engaged in manufacturing or biotechnology research and development. The cost of this is $400 million



Hiring Credit A hiring credit for businesses located in census tracts with the 25% percent highest share of both unemployment and poverty in the state. This will include some areas inside and outside EZ. The credit will only be allowed to taxpayers who have a net increase in jobs. 25% of these funds are allocated to small business. The cost is $100 million



Investment Incentive. This is called the California Competes Credit and will be administered by GO-Biz. Businesses will have to compete for this tax credit and will be determined by an impartial committee. 25% of these credits are designated for small business. The cost is $100 to $200 million.



Current EZ Zones. Taxpayer will be allowed to continue using EZ carryover credits for 5 years and will be able to continue to earn hiring credits for employees hired prior to Jan 1 2014.



What do you think? If you want additional information and a side by side comparison of the current EZ program and the Governors proposal please let me know.





Scott Hauge

President

Small Business California

2311 Taraval Street

San Francisco, CA 94116

shauge@cal-insure.com

415-680-2188

Legislative Session/Clinic by the Bay

So we are at the half way point in this year’s legislative session. All bills to remain alive must have passed their House of origin or have an urgency clause meaning it will take a two thirds vote to pass. One of the things however to watch for is what is called gut and amends. This is a procure where a bill is rewritten and new language replaces the original language. The new language does not have to have any connection with the original language.

This seems very strange to me and things get slipped in that can be truly awful. Our government affairs person Lori Kammerer watches this very closely during the session.

Do you think this should be allowed?

If you want to see bills Small Business California sponsored, supported and oppose please go to www.smallbusinesscalifornia.org





I want to thank all of you that contributed to our Clinic by the Bay fundraiser. It was successful beyond our wildest dreams as we have raised $134000.

Senator Diane Feinstein also showed up bringing 4 drawings which we raffled off. Again thank you





Scott Hauge

President

Small Business California

2311 Taraval Street

San Francisco, CA 94116

shauge@cal-insure.com

415-680-2188