Small Business California

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

2012-02-07T09:53:00.001-08:00

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

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

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,

---------------------

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

2012-02-07T09:52:00.001-08:00

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

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

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

2012-02-07T09:51:00.002-08:00

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

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

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

2012-02-07T09:51:00.001-08:00

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

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

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

2012-02-07T09:50:00.000-08:00

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

2012-02-07T09:48:00.000-08:00

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

2011 Accomplishments/ SBA

2012-01-17T12:07:00.000-08:00

Small Business California Current Issue:

2011 was a very successful year for Small Business California. Please see below for our accomplishments. I hope those of you that are not members will consider joining Small Business California. You can do so by going to www.smallbusinesscalifornia.org

Last week, I sent an email indicating that the President elevated the SBA to a Cabinet level position. The president is looking to merge the SBA with the Department of Commerce, Office of the US Trade Representative, the Export Import Bank, the Overseas Private Investment Corporation and the Trade and Development Agency. A concern we have with this is will small business get swallowed up in this merger? What will happen to the Office of Advocacy? We are watching this closely and will keep you posted on new developments. 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

========================
SMALL BUSINESS CALIFORNIA ACCOMPLISHMENTS 2011

Education Programs and Projects

Small Business California completed its annual survey with over 1400 responses from small businesses around the state. As in the past, this survey had responses from every county in the state. The survey is used to set Small Business California’s agenda and received media coverage around the state. The survey was delivered to every legislator in the state and the governor
Small Business California has presented at numerous forums information on the Patient Protection and Affordable Care Act (PPACA) and how it impacts small businesses. These were for the Sacramento Journal, Rotary Clubs, Women’s League of Voters, and other community groups. Small Business California continues to be a frequent source for the media.
Small Business California sent letter with 14 associations to SBA Administrator asking SBA to assign Elizabeth Echols as point person for SBA compliance with 2007 energy bill. SBA has made the assignment.
Scott Hauge represented Small Business California on the Board of Pacific Group on Health.
Small Business California provides its membership with education and the latest information on all issues affecting small businesses at the state and federal levels through its website regular email updates, presentations to business groups, local Chambers of Commerce and industry trade associations.
Small Business California represents its membership by actively participating as small business advisors to Assembly Jobs, Economic Development and the Economy Small Business Roundtable, Assembly Insurance Committee, Senate Labor and Industrial Relations, Governor’s Office of Economic Development (GO ED), Department of General Services Small Business Advisory Council, Commission on Health & Safety & Workers’ Compensation Employers’ Advisory Group, Business ROAR (Regulatory Oversight And Review).
Met with Assembly of Jobs Committees staff in prioritizing key issues for small businesses.
Met with Governors Economic Policy Advisor, Mike Rossi, on issues effecting small businesses and will be working with him to support Small Business California (next development meeting will be Jan 19, 2012).
Met with Cal Osha chief, Ellen Weidess and her staff to clarify employers responsibilities of providing an emergency preparedness program.

Legislative Accomplishments

Worked with Senator Price to allow general solicitation for an offering up to $1,000,000 a year provided that only accredited investors be permitted to invest, that each investor’s investment be limited to 10% of his liquid new worth (excluding equity in one’s principal residence), that the issuer obtain a suitability questionnaire from each prospective investor indicating his time horizon, how risk averse he is, the types of investments he prefers and other criteria indicating whether his investment is suitable for each investor.

SB Cal provided informational materials that assisted with legislative matter which were signed into law by Governor Brown and will become effective on January 1, 2012:

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 bills were strongly supported by Small Business California and may be taken up again in January (two-year bills), unless vetoed by the Governor as noted.

AB 150 (Perea) – Mandates the goal of the state to do business with small businesses
AB 541 (Morrell) – Proposes a study and assessment on the impacts of regulations on California small businesses
AB 894 (V.M. Perez) – Assembly Jobs, the Economy and Economic Development’s 2-Year Legislative Jobs Package
AB 1379 (Bradford) – Pertaining to Emerging Domestic Markets, this bill would ensure that large pension funds invest in small businesses. (Vetoed)
SB 67 (Price) – Same as AB 150, this bill will mandate the goal of the state to do business with small businesses
SB 469 (Vargas) – The Protect Small and Neighborhood Business Act would have required that an economic impact analysis be completed before a superstore could be approved with the focus on the impact to local small businesses. (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)

SB Cal provided information and education in support of the following bills which may be taken up again in January (two-year bills), unless vetoed by the Governor as noted.

SB 823 (Corbett) – Sponsored- 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)
AB 150 (Perea) – Mandates the goal of the state to do business with small businesses
AB 541 (Morrell) – Proposes a study and assessment on the impacts of regulations on California small businesses
SB 469 (Vargas) – The Protect Small and Neighborhood Business Act would have required that an economic impact analysis be completed before a superstore could be approved with the focus on the impact to local small businesses. (Vetoed)

Federal Legislation:

HR 4 (Lungren) – Eliminates the 1099 Reporting that was included in the President’s Health Care Bill
HR 1603 (Murphy) – Also known as the SMART Act (The Strengthening Medicare and Repaying Taxpayers), this bill would streamline the efficiency of the Medicare Secondary Payer System by establishing a system that would settle claims quicker and with less confusion.

Energy Project- Accomplishments

Developed publication, "California Chambers Leading the Clean Economy" published in print and PDF editions and distributed to local chamber throughout the state.
Researched clean vehicle developments and opportunities with an eye towards a similar publication aimed at small businesses saving fuel costs on sales, service and delivery using alternative fuels and transportation.
Filed Comments / Motion to the CPUC regarding expansion of On Bill Financing support, enhanced measurement of energy savings and "deep retrofits" in California.
Completed Research Grant funded by the SF based Bay Area Air Quality Management District aimed at accelerating business investments in clean fuel vehicles for delivery, sales and service. Final report requested assistance in providing for EV rentals for businesses that would carry company logos during lease periods, support for developing business based solar carport charging installations and for recognition support of the value of “business miles” where lower fuels costs can add to supporting clean vehicle lease or loan payments.
Met with the Edison Electric Institute in Washington D.C. to encourage development of guides for the safety, reliability and off peak charging aspects of battery vehicles to help businesses to faster invest in clean fuel vehicles that are not affected by spiking gas prices.

News Clips: Obama to Elevate SBA Chief

2012-01-13T13:02:00.000-08:00

Small Businesses have been trying to elevate the SBA to cabinet level since at least 1985. I have spent a lot of time over the years on this issue. I certainly don’t know all the details on this and it is certainly not a done deal, but I love the discussion. Please see the article posted below. I would appreciate your comments.

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

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

WALL STREET JOURNAL – Obama to Elevate SBA Chief
By EMILY MALTBY
JANUARY 13, 2012, 9:13 A.M. ET

President Barack Obama is expected to announce Friday that he will exercise his executive authority to elevate the head of the U.S. Small Business Administration to a cabinet-level position, according to two senior administration officials.

The announcement will come along with a broader proposal from Mr. Obama to combine the Small Business Administration with five other government offices that would become a single, streamlined agency. It was unclear if the SBA would retain cabinet-level status if the consolidation went through.

One reason for the move might be to counter any perception that small business was being slighted in the broader reorganization. The White House didn't provide details concerning whether the SBA's current administrator, Karen Mills, would be granted a higher authority or additional responsibilities as a result of her elevated position.

The senior administration officials said the decision speaks to her accomplishments at the agency, such as reducing lender paperwork for SBA-backed loans, enforcing stricter oversight of government contracting and rolling out several laws that facilitated more lending to small businesses.

The move also follows accusations by some Republicans that Mr. Obama hasn't done enough to help small businesses. The National Federation of Independent Business, the small-business lobbying group in Washington, is fighting Mr. Obama's health-care law in a lawsuit that is now before the Supreme Court.

Notable small-business advocates, including Senator Olympia Snowe (R., Maine), the ranking member of the Senate Small Business and Entrepreneurship Committee, have urged Mr. Obama to restore the SBA to cabinet level, as it was under the Clinton administration.
Previous administrations have elevate people to cabinet-level status, which is mostly a symbolic way of saying they and their subject areas are considered important.

"On every small-business issue from day one, Karen has had the president's ear," said Gene Sperling, director of the White House's National Economic Council. "She is a tenacious, tireless and effective advocate for small business."

Because banks tend to be reluctant to extend credit to risky small businesses, the SBA operates a program that makes such loans more enticing to lenders by guaranteeing a portion of each loan against default. A record $30.5 billion in these loans were extended to more than 60,000 businesses in the government's 2011 fiscal year, ending September 30.

Payroll Tax/ Reaching Small Business

2012-01-11T16:15:00.000-08:00

Most of you I am sure have heard that the Mayor and Board of Supervisors will be looking for a way to change the payroll tax. Suggestions have been going to a gross receipts tax or some kind of hybrid with a payroll tax and gross receipts tax.

It seems quite clear that the City cannot lose revenues by this change and some are saying a change should bring in additional revenues.

What are your thoughts keeping in mind that less than 10% of businesses in SF pay the payroll tax? Do you think the tax should be made broader bringing in more businesses. Should there be any exemptions?

Tomorrow I am part of a panel that will be discussing the Exchange that is being developed in California. As you know the Exchange is being set up to respond to the Health legislation passed in Washington. It will be made available to small businesses in 2014.

The Exchange is basically a purchasing pool for small businesses with less than 50 employees and individuals. The tax credits available to small businesses will only be made available to small businesses and individuals that purchase coverage through the Exchange.

My question to you is what is the best way to reach small businesses with information about the Exchange?

List of WC bills that the Gov Signed/Vetoed

2012-01-11T16:14:00.000-08:00

Please see report below by our Government Relations person, Lori Kammerer on workers compensation bills signed and vetoed by the Governor.

There has been a lot of media attention to the article in the LA Times about Bank of America terminating lines of credit. Some of you indicated you had this happen to you. We worked closely with the reporter. Yesterday, I was interviewed by CBS radio in LA and NPR and I will do a FOX interview today.

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

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

Legislative Activity

There is much excitement among the employer and provider stakeholders in the workers’ compensation community as Governor Brown vetoed several onerous bills that would have increased employers’ costs, while signing legislation that will provide technical improvements to the system.

As reported back in January of this year, Kammerer & Company forecasted that this would not be a major reform year. We also took a politically educated guess to note publically that the new administration would not increase taxes or impose additional regulations on employers this year. This was obvious as the Governor’s campaign platform clearly outlined his priorities for his first year in office – to balance the state’s $46 billion dollar revenue shortfall. Furthermore, through our discussions with the Governor’s transition team (now members of his Cabinet), this Governor would not be interested in among other things, offering up benefit increases, changing discrimination laws related to apportionment, or extending the 2-year cap on temporary disability.

Instead, this Governor stuck to his plan and focused almost entirely on resolving, at least for the most part, the state’s over-spend and under-reserve mode that has plagued California over the course of the past decade.

The following are key bills signed and vetoed by the Governor, along with the Legislative Tracking Report attached to this update.

• AB 335 by Assemblymember Jose Solorio (D-Santa Ana) – Workers' compensation: notices.
· Requires AD with CHSWC to revise some DWC forms. Removes reference to Vocational Rehabilitation & substitutes Supplemental Job Displacement Voucher references. Eliminates need to send Supplemental Job Displacement Voucher NOPE by certified mail at end of TD.

• AB 378 by Assemblymember Jose Solorio (D-Santa Ana) – Workers' compensation: pharmacy products.
· Provides imposition caps on Compound drugs @83% of generic for lowest price generic equivalent until AD adopts fee schedule.

• AB 397 by Assemblymember William W. Monning (D-Santa Cruz) – Workers' compensation insurance: contractors.
· Requires contractors to prove they are either exempt from coverage or have workers’ compensation coverage when renewing contractors’ licenses.

• AB 585 by Assemblymember Paul Fong (D-Mountain View) – Workers' compensation: cancer presumption.
· Extends existing cancer presumption in Labor Code § 3212.1 to Firefighters working at government installation.

• AB 1168 by Assemblymember Richard Pan (D-Sacramento) – Workers' compensation: vocational expert fee schedule.
· Requires the AD to adopt a fee schedule for Vocational Rehabilitation expert testimony by January 1, 2013

• AB 1426 by Assemblymember Jose Solorio (D-Santa Ana) – Workers' compensation: court administrator.
· Eliminates position of Court Administrator. This position is currently empty and the statutory provisions conflicted with the authority of the Administrative Director. The functions of the Court Administrator will be handled primarily through the AD’s office.

• SB 457 by Senator Ronald Calderon (D-Montebello) –Workers' compensation: liens.
· Provides where an employee obtains medical treatment pursuant a medical plan provided by a self-insured employee welfare benefit plan reimbursement shall be determined notwithstanding the official medical fee schedule adopted pursuant to Section 5307.1. Such liens shall be paid pursuant to the terms of the self-insured benefit plan not according to fee schedule.

• SB 684 by Senator Ellen Corbett (D-San Leandro) – Workers' compensation insurance: dispute resolution: arbitration clauses.
· Would allow California employers to arbitrate disputes under insurance policies that arise in California using California law even where the policy may have been written in a different state and provides for arbitration of disputes using another states law.

• SB 826 by Senator Mark Leno (D-San Francisco) –Workers' compensation: data reporting requirement: administrative penalties.
· Provides for imposition of administrative penalties where a claims administrator violates reporting requirements regulations.

Bills vetoed by Governor Brown:

• AB 211 by Assemblymember Gil Cedillo (D-Los Angeles) – Workers' compensation: permanent disability benefits. A veto message can be found here.
· This bill would have modified the provisions for providing the Supplemental Job Displacement Voucher from after the PD award till the end of TD. It would also have change the voucher amount to a flat $6000 rather than a structured amount based on the level of PD

• AB 584 by Assemblymember Paul Fong (D-Mountain View) – Workers' compensation: utilization review. A veto message can be found here.
· This bill would have required physicians performing UR services be licensed to practice medicine in CA. The bill would have created different standards for WC UR than the same services in Group health. The Governor was aware of the effort to impose this unique requirement in WC and did not consider a need to have different approaches in WC than from the rest of the health care industry.

• AB 947 by Assemblymember Jose Solorio (D-Santa Ana) – Workers' compensation: temporary disability payments. A veto message can be found here.
· This bill would have extended the time for payment of TTD beyond the 104 limit in Labor Code § 4656 where the employee underwent surgery and the period of TD extended beyond the 104 weeks. This bill was amended near the end of the session to limit it to post-surgical cases in an effort to limit the potential expense attached to the changes to Labor Code § 4656. As originally drafted it would have effectively eliminated the 104 limitation on TTD. The recent amendments provided significant limitation on the extension of TTD but the Governor appeared concerned the amendments such as this should be part of an overall effort to modify the system and rather than piecemeal changes.
·
• AB 1155 by Assemblymember Luis Alejo (D-Salinas) – Workers' compensation. A veto message can be found here.
· This bill would have interposed additional language in Labor Code § 4663 ostensibly to prevent discrimination on the basis of “immutable characteristics” such as race, gender, sexual orientation etc. The Governor’s message indicated the law already recognized similar protections and this provision would have potentially generated additional unnecessary litigation increasing employer costs with little corresponding additional protection to employees.

---
Lori C. Kammerer
Kammerer & Company
1215 K Street, 17^th Floor
Sacramento, CA 95814
Office: (916) 441-5674
Cell: (916) 716-5674
LCK@midtown.net

AB 469/Wage Theft Protection Act

2012-01-11T16:13:00.000-08:00

Tom Martin, a Board Member of Small Business California provided information about a new law in a recent newsletter he wrote for the Small Manufacturers Association of California. Employers effective January 1, 2012 are going to be required to provide this information to all new employees that are nonexempt. Please see below his piece along with the link to DIR and the template for you to provide the new employees. Hope you are enjoying the Holidays and Small Business California looks forward to a successful year for California small businesses in 2012.

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

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

AB 469 requires employers to provide nonexempt employees, at the time of hire, a notice that specifies:

-The rate of pay and the basis, whether hourly, salary, piece commission or otherwise, including any overtime rate

-Allowances, if any, claimed as part of the minimum wage, including meal and lodging allowances

-The regular pay day designated by the employer as required under the Labor Code
-The name of the employer, including any “doing business as” names in the letter not on the letterhead.
-The physical address of the employer’s main office or principal place of business and any mailing address, if different
-The telephone number of the employer
-The name, address and telephone number of the employer’s workers’ compensation carrier

The law also requires notice of any other information the Labor Commissioner deems material and necessary. The Labor Commissioner is to provide a template. If there is any change to the information in the notice, the employer must notify each employee, in writing, within seven calendar days of the changes, unless such changes are elsewhere reflected on a timely wage statement or other writing required by law. The new law only applies to nonexempt employees, which again highlights the need for properly classifying employees at the time of hire. This legislation also increases penalties for wage violations and makes further changes regarding collection of such penalties, including an increase in the statute of limitations.

***********************
The law specifies new hires, but it also says that any changes must be reported in writing to all employees within seven days. You can delay providing the information to current employees but eventually the employer will have to notify them as well, as changes are made. There is a lot of potential litigation in this.
***********************
Link below: Governor signs Wage Theft Protection Act of 2011

http://www.dir.ca.gov/dlse/Governor_signs_Wage_Theft_Protection_Act_of_2011.html

Cal OSHA IIPP/Emergency Action Plan

2012-01-11T16:12:00.001-08:00

I hope you all are having a wonderful Holiday Season.

Last week, Lori Kammerer and I talked to Cal OSHA Director, Ellen Widess and three members of her staff to discuss how Small Business California can work more closely with her agency. We were impressed with her desire to reach out to small business and find ways that they can assist small business in navigating the regulations of the agency. I came away with the belief she wants to be helpful and a resource to us.

The first topic we discussed is the crazy ruling that businesses are not required to have an emergency action plan [disaster plan] and a fire prevention plan but if they do it must conform with Cal OSHA guidelines or the business will be subject to fines. Ms. Widess assured us that auditors are not fining businesses for this unless they have serious health hazards.
I agreed to obtain a few disaster plans from small businesses around the state so that her people could review them. I would appreciate your sending me a copy of your plan that I can forward to her. Please be advised I will not send the name of your company or your name.

The next step will be the establishment of a task force of small business people and Cal OSHA people to develop a simple prototype for small businesses of an emergency action plan and fire prevention plan. I think you all will agree that this makes sense for any business but it must be simple and easy to explain to our employees. If you are interested in participating on this task force please let me know. I will send out the final draft when completed.

The next issue we discussed was a new etool to assist small businesses in developing an Injury and Illness Prevention plan. I am always amazed that small businesses are not aware that this is required of all employers. I would guess over half of the people receiving this email either do not know this or have not developed a plan. This is the number one citation that Cal OSHA imposes when they do an audit and can mean a fine of as much as $5000.
Please take a look at the etool at http://www.dir.ca.gov/dosh/etools/09-031/index.htm
Ms. Widess would be interested to know your thoughts on this link. Please advise.

Lastly, I would like to know of problems you have had with Cal OSHA or regulations that are put on your business that you feel do not make sense or could be streamlined. Small Business California looks forward to working with Ms. Weidess and Cal OSHA and all of you now have a resource to express your thoughts about the agency.

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

B Corporations

2012-01-11T16:11:00.000-08:00

Small Business California was a strong supporter of the legislation creating Benefit (B) Corporations. Please see outline below about them. For those of you in the SF area, we are thinking of doing a seminar to provide small businesses the possible benefits of becoming a B Corporation. Is there any interest in doing so and would you attend?

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

About B Corporations

Certified B Corporations are a new type of company which use the power of business to solve social and environmental problems. These companies have passed a comprehensive assessment measuring their impact on society, the environment and their employees. B Corporations embed stakeholder considerations into the DNA of their company, adjusting their governing documents to consider people, planet, and profit.

1. Community Building: B Corporations

B Impact Assessment: (http://b-lab.force.com/GIIRS/BCorpRegistration) It’s free and open to all, use it as a benchmarking tool and track your company’s social and environmental impact, or as a framework for building the sustainable business you want to run. Our road map for new businesses will help guide new companies looking to certify as B Corporations. (http://www.bcorporation.net/newbusiness)

B Resources:

Making good easy is hard work. Our open source B Resource Guides (http://www.bcorporation.net/services/resources) were created through the Colombia

Business School’s Research Initiative and Social Entrepreneurship RISE program (http://www.riseproject.org/)Use the B Resources Guide to access advice on anything ranging from writing an Employee Handbook to a Local Purchasing Policy

B Corporation Directory: With over 500 Certified B Corporations, the B Corporation Directory is a powerful source for collaborative advantage and mindful sourcing. Use the directory to find good companies with quality products & services across industry, geography, impact area, and more. (http://www.bcorporation.net/community/search)

2. Driving Capital to Impact: GIIRS

GIIRS simplifies driving capital to impact investment opportunities providing a comprehensive standard that measures social and environmental performance and enables comparability between investment opportunities. GIIRS rated companies are given exposure, can highlight what they are seeking (GIIRS Directory), and provided with access to various socially minded exchange platforms. (http://giirs.org/)
By certifying as a B Corporation, companies receive a free GIIRS rating.

3. A New Corporate Form: The Benefit Corporation

Bill AB361, the Benefit Corporation bill passed in California October 10, 2011, becoming the 7th US state to recognize Benefit Corporations as a legitimate corporate form. The bill takes effect January 1st, 2012.

Benefit Corporations are similar to existing California corporations, with the exception that they: 1) have a corporate purpose to create a material positive impact on society and the environment; 2) are accountable to redefine fiduciary duty to require consideration of the interests of employees, community and the environment when making decision; and 3) are transparent by publicly reporting annually on its overall social and environmental performance using a comprehensive, credible, independent, and transparent third party standard.

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

Cal OSHA IIPP/Emergency Action Plan

2011-12-27T10:20:00.001-08:00

I hope you all are having a wonderful Holiday Season.

Last week, Lori Kammerer and I talked to Cal OSHA Director, Ellen Widess and three members of her staff to discuss how Small Business California can work more closely with her agency. We were impressed with her desire to reach out to small business and find ways that they can assist small business in navigating the regulations of the agency. I came away with the belief she wants to be helpful and a resource to us.

The first topic we discussed is the crazy ruling that businesses are not required to have an emergency action plan [disaster plan] and a fire prevention plan but if they do it must conform with Cal OSHA guidelines or the business will be subject to fines. Ms. Widess assured us that auditors are not fining businesses for this unless they have serious health hazards.
I agreed to obtain a few disaster plans from small businesses around the state so that her people could review them. I would appreciate your sending me a copy of your plan that I can forward to her. Please be advised I will not send the name of your company or your name.

The next step will be the establishment of a task force of small business people and Cal OSHA people to develop a simple prototype for small businesses of an emergency action plan and fire prevention plan. I think you all will agree that this makes sense for any business but it must be simple and easy to explain to our employees. If you are interested in participating on this task force please let me know. I will send out the final draft when completed.

The next issue we discussed was a new etool to assist small businesses in developing an Injury and Illness Prevention plan. I am always amazed that small businesses are not aware that this is required of all employers. I would guess over half of the people receiving this email either do not know this or have not developed a plan. This is the number one citation that Cal OSHA imposes when they do an audit and can mean a fine of as much as $5000.Please take a look at the etool link provide below
Ms. Widess would be interested to know your thoughts on this link. Please advise.

http://www.dir.ca.gov/dosh/etools/09-031/index.htm

Lastly, I would like to know of problems you have had with Cal OSHA or regulations that are put on your business that you feel do not make sense or could be streamlined. Small Business California looks forward to working with Ms. Weidess and Cal OSHA and all of you now have a resource to express your thoughts about the agency.

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

Revised 2011 and 2012 WC Fees

2011-12-20T12:16:00.000-08:00

Please see below the new charges on workers compensation policies renewing January 1, 2011. (click to enlarge). You will note they have gone down and saves about $113 million for busineses in California. Small Business California wants to thank the Brown Administration for these reductions with a special thanks to Labor Secretary Marty Morgenstern and our good friend DIR Director Christine Baker.

Small Business California needs to raise more money in 2012 for our organization. I hope you all see the benefits of the email messages you receive and our Advocacy work. There is a cost as we have a government relations person in Sacramento. I try to pick up much of the cost through my company and our entire board does not receive any remuneration, but there are still cost that must be paid to keep the organization running. Please seriously consider joining. The cost I think is relatively small considering the value you receive.

If the dues of $150 for businesses with less than $1 million and $300 for businesses with over $1 million are too much for you at this point please consider making a contribution of any amount. You can join or contribute on line at www.smallbusinesscalifornia.org. We do take credit cards. Thank you again for those of you that are members.

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

SBA Energy/ SBIR

2011-12-16T12:01:00.000-08:00

Small Business California worked hard to get SBA Administrator, Karen Mills to name a person in District 9 [California, Arizona, Nevada, Hawaii and Guam] as the point person in the implementation of the 2007 Energy Act. This bill required the SBA to take the lead in helping small businesses cost effectively reduce their Energy use with part of that being On Bill Financing, which Small Business California brought to California. Elizabeth Echols, the Regional Administrator has been designated as that person and now holds the title of Senior Advisor to the Administrator on Clean Tech and Energy Efficiency initiatives.

This week, Hank Ryan and I have talked to Ms. Echols and District Director, Mark Quinn about how we can move forward. Ms. Echols and Mr. Quinn seemed very interested in moving forward on this, especially given the President's Better Building program. One possibility is implementing On Bill Financing with the 504 loan program and also trying to find ways of working with 7A. This will be an ongoing effort but we are now beginning to move forward.

On the SBIR front, the bill to reauthorize the program has now been passed in the Senate and will go to the President where we expect a signature. This shows what small businesses can accomplish when we work together across the country. Part of what made this happen is that small businesses, both inside and outside the program, spoke up with a unified voice. See below for Rich Scindell’s piece. It’s a little long but well worth reading.

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

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

Dear SBIR Insider,

I am pleased (a gross understatement) to inform you that SBIR HAS NOW BEEN REAUTHORIZED for a period of 6 years, ending September 30, 2017, and that includes STTR, and what was the Commercialization Pilot Program (CPP), now to be known as the Commercialization Readiness Program (CRP). This was all done under the National Defense Authorization Act of 2012 (NDAA) HR.1540. All that's left is for the President to sign the bill into law, and he has said he would.

There are many changes and additions to these programs, many you will probably like, some, perhaps "not so much. What you won't read in press releases or the main stream press is that the SBIR program was a stone's throw from being laid to rest.
The fatigue factor from several years of battling for reauthorization, and fighting for 14 continuing resolutions led some powerful forces to question the validity of a program that can't be reauthorized. "If it can't be passed, let it die" was the word from one source. And die it would, had there not been serious compromises.

Although reauthorization has passed, your role is not done. It is vital that our SBIR community stay "tuned in" and active because your input will be requested relating to the changes and how the program is working for you. Although we have a six year reauthorization, I can assure you that some SBIR issues will be revisited by congress during this period.

Rather than giving you a laundry list of changes, we are in the process of creating a detailed technical document explaining the new legislation (sans legalese) and how it will most likely effect small business, the agencies, and academia. That will be in our next issue.

The legislation gives the SBA 180 days to implement new policy directives for SBIR and STTR. As those are being developed, public comments will be solicited. We'll let you know about those when they happen. Your input will be critical! The new eligibility regulations must implemented within 120 days.
For those of you who want the bill's language, we have created a PDF of the SBIR legislation from the conference report that was passed. It is 107 pages from the 1844 page NDAA document. You'll find it at www.zyn.com/sbir/insider/SBIR_Pages_from-HR1540conf.pdf

At this point you have "certainty" that the SBIR/STTR programs will continue, but uncertainty as to how the agencies will handle the changes (even the agencies will need to get up to speed on the details).
On the other hand there may very well be another CR if congress is unable to pass the omnibus appropriations bill before they go home for the holidays. The CR would be to keep the agencies funded for a short period (having nothing directly to do with SBIR authorization).

The Real Story of SBIR Reauthorization
Regardless of what you may see in the press about people taking credit for SBIR reauthorization, one person, Senator Mary Landrieu (D-LA), chair of the Senate Committee on Small Business & Entrepreneurship, towers over all others. I guarantee you that without Senator Landrieu and her extraordinary efforts in this political climate, SBIR would not have survived.

Jere Glover, SBTC executive director, who has been a keystone in SBIR since its inception and has been an important participant in every SBIR reauthorization, stated : "There has never been a Senator that has done more for the SBIR community, and spent more personal time and personal involvement than Senator Landrieu." On the reauthorization process Glover stated "SBIR reauthorization has always been tough, but never like this."

Landrieu worked closely with her committee's ranking member Olympia Snowe (R-ME), who has been an important supporter of SBIR since the beginning, and several others also played important supporting roles. On the Senate Armed Services Committee, Senators Carl Levin (D-MI), and John McCain (R-AZ) made it possible to include SBIR reauthorization language in the National Defense Authorization Act of 2012.

In fact, this morning shortly before passage of the NDAA, Senator Levin stated: "The conference report includes Senator Landieu's bill to extend the small business [innovation] research, the SBIR program for an additional six years. It's been about six years since we reauthorized this vitally important program which provides a huge benefit to our small businesses so that they can effectively participate in research programs that are funded by the federal government. In the defense arena, SBIR has successfully invested in innovate research and technologies that have contributed significantly to the expansion of the defense industrial base in the development of new military capabilities."

On the House side, we have Buck McKeon (R-CA) chair of the House Armed Services Committee (HASC), and ranking member Adam Smith (D-WA) to thank. But they needed persuasion and support to do this, and that came from a dedicated SBIR champion, Congresswoman Niki Tsongas (D-MA) who worked hard to get a lot of congressionals and the House leadership on board to support the Senate's bill over the House's (not an easy or politically popular feat). Traditionally there's not a lot of "love" between House and Senate.

HASC may not have been able to include SBIR without the support that Congresswoman Tsongas was able obtain. She is a true SBIR champion, and is very considerate of her constituents, as well as grateful for the support that many of you gave to signing on to the SBTC's SBIR letter to congressional leadership. That made a huge difference!
In a conversation with Ms. Tsongas, I thanked her for all her hard work and dedication to the SBIR program. She said, "Rick, it took a village."

Villages can be quaint but they can also be troublesome. On the Senate side, Landrieu had things under control, but on the House side she ran into some,,, lets say trolls and grouches. SBIR reauthorization was always problematic in the House due to some of the trolls in the form of House Small Business Committee chair Sam Graves (R-MO) and ranking member Nydia Velazquez (D-NY), and the grouch in the form of House Science Committee chair Ralph Hall (R-TX). They tried to block SBIR inclusion in the NDAA and it was looking bleak for SBIR.

This behavior has been going on for years, and the trolls continued to block SBIR from being reauthorized (unless it was their way). Ms. Landrieu, in what may have been a Howard Beale moment, was mad as hell and wasn't going to take it anymore, went over to the House, and had a talk with these people face-to-face, allegedly in a language they could understand (terminology by Harry Truman).

That, along with your efforts, and those of some other groups in contacting the leadership and other congressionals, helped sway things in a manner we have not seen in the SBIR world. Velazquez backed off, and Graves & Hall finalized a compromise with Landrieu that the Senate and House could live with. Both House & Senate leadership played an important role in getting this done.

In the next issue we will have detailed analysis of the changes to the program and we'll let you know who all the hero's were to help make this possible. There are lots!

Of course none of this would be possible without staff, and one staffer stands out from all the rest. Nobody, be it government or private sector has been more dedicated to SBIR, or has fought harder or longer for you and small businesses, than Ms. Kevin Wheeler. Kevin has been a warrior, and has often times been vilified because she wouldn't cave in to the ridiculous demands of high rolling, high pressure lobbyists, or the House Small Biz and S&T staffers doing their bidding. They did not appreciate Ms. Wheeler's protecting the interests of small business. That's all for now and we can get some rest. Congratulations and thanks to all of you who helped make this happen!

Here's wishing you a Merry Christmas, Happy Chanukah, Kwanzaa, Yontif, Festivus and Gafe Gake. We'll be back before the New Year.

Sincerely,

Rick

Rick Shindell
SBIR Gateway
Zyn Systems
40 Alderwood Dr.
Sequim, WA 98382
360-681-4123
rick@zyn.com
www.zyn.com/sbir

SBIR and NDAA Conference Votes

2011-12-14T12:27:00.000-08:00

Thank you to all of you that signed onto the letter for SBIR. It made a difference. There were over 1,000 signatures and small business organizations around the country including Small Business California made it happen. A special thanks to our own Jackie Speier for her support and Congresswoman Nancy Pelosi with Nydia Velazquez and her work with Senate Small Business Committee Chair Landrieu.It is not a done deal yet but we are close.

FYI To my knowledge Small Business California working with the National Small Business Association was the only statewide California organization that worked on this. See below

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

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

Hi, Everyone.

As you know, we made the window to get a deal submitted for inclusion in the National Defense Authorization Act conference. We filed the deal on Saturday but were asked by SASC to stay silent until it was officially locked down with signatures and SASC and HASC had a chance to make their own statements Tuesday. Obviously, we wanted to respect that because we’d be nowhere without their help.

It was a crazy week getting the deal filed on Saturday, literally down to the wire. And Senator Landrieu’s success in getting a deal was mostly due to the work from the groups and businesses and members who put together letters, met with members and their staff, made concessions in reaching a compromise, and had the courage to go public with opposition to controversial provisions. So many deserve credit for getting us this far. Thank you.

There are many members who helped get us to this point, but I really think Landrieu earned the most credit. She got out there early on NDAA and got one of only about eight votes (out of about 375 amdts filed), and she worked the phones and knocked on House doors to keep NDAA in the bill and reach a deal with Graves and Hall. More specifically, she went to the House side Tuesday, Wednesday and Thursday of last week to meet with key members (Ms. Johnson, Mr. Graves and Mr. Hall), and she had calls with Mr. Levin, Mr. McCain, Mr. Smith, Ms. Pelosi, etc.

Among the highlights, Landrieu was able to negotiate for six years, more than the four or five expected, and she was able to get more in allocation than was expected (SBIR to 3.2% and STTR to .45% instead of 3% and nothing for STTR). The House also moderated some of their more controversial provisions (this was due to the group work and letters). I’m happy to do a call with you all if that would help to talk about the provisions in more detail.

Until then, we wait for the votes in the House and the Senate and keep our fingers crossed that there is no veto. As of now, the House is expected to vote on National Defense Conference Report around 3:30pm. The Senate is trying to get agreement to have its vote today.

MAYOR LEE INTRODUCES JOBS IMPACT REVIEW LEGISLATION TO PROTECT JOBS

2011-12-14T12:14:00.000-08:00

This is really good news for SF small businesses. Legislation would be required to be reviewed by Small Business Commission where the legislation impacts jobs. We will need all your help getting this to the ballot and getting this passed in June. Please see press release below.

Scott Hauge
President
CAL Insurance and Associates, Inc.
2311 Taraval Street
San Francisco, CA 94116
www.cal-insure.com
Phone: (415) 680-2109
Fax: (415) 680-2137
License #0A32315
"Always looking out for you"

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

FOR IMMEDIATE RELEASE:
Tuesday, December 13, 2011
Contact: Mayor’s Office of Communications, 415-554-6131

*** PRESS RELEASE ***

MAYOR LEE INTRODUCES JOBS IMPACT REVIEW LEGISLATION TO PROTECT JOBS
Included in Mayor’s 17-Point Roadmap to Good Jobs & Opportunity, Proposed Charter Amendment Will Go to Voters in June 2012

San Francisco, CA—Mayor Edwin M. Lee today introduced a proposed Charter Amendment to require further analysis of all legislation introduced at the Board of Supervisors that may result in a net job loss.

The Charter amendment builds upon Proposition I in 2004 that created the City’s Office of Economic Analysis to review economic impacts from policies being considered by the City. By proposing this Charter amendment, Mayor Lee is strengthening job protections and fostering economic growth.

“I firmly believe that it is City Hall’s responsibility to help small businesses grow and promote job growth in the private sector,” said Mayor Lee. “If approved by voters in June, this Charter amendment will require a special Jobs Impact Review hearing for any new legislation that the impartial City Economist determines could negatively affect jobs. By including the voices of business owners and employees and evaluating impacts and alternatives to job loss in the City, we are improving transparency and accountability in our lawmaking process.”

The proposed amendment would require the Controller’s Office to report on all legislation introduced at the Board of Supervisors that imposes obligations or limitations on private businesses or their operations that may result in a net job loss. It would prohibit the Board of Supervisors from taking final action on ordinances introduced when the Controller’s Office has made this determination and refers the legislation to the Small Business Commission for further consideration and possible development of alternative policy proposals.

###

Francis Tsang
Chief Deputy Communications Director
Office of Mayor Edwin M. Lee
415.554.6467
francis.tsang@sfgov.org

Christine Baker Appointed DIR Director/ Underground Economy

2011-12-12T15:21:00.000-08:00

In a previous email I mentioned that our good friend, Christine Baker had been appointed by the Governor as Acting Director of the Department of Industrial Relations. On Friday, the Governor replaced the Acting to the Director. She will now have to go through confirmation hearings. We have worked closely with Christine when she was head of the California Health Safety and Workers Compensation Commission. Christine is a great friend of Small Business California and we look forward to working with you Christine. She has committed to working on the underground economy which is a big issue for many small business.

See article below in LA Times by Marc Lifsher on the underground economy. Last week I testified at Mark DeSaulniers Select Committee on the Underground Economy and spoke on NPR "Air Talk with Larry Mantle"

(link to radio talk below):
http://www.scpr.org/programs/airtalk/2011/12/09/21716/ca-underground-economy/

This will be a big issue for Small Business California in the coming year. I am now in the process of identifying small businesses around the state that will speak to the media and tell their story. Please let me know if you are interested in doing so. Please be sure to give me your business name and location.

(California officials vow to crack down on underground economy):
http://www.latimes.com/business/la-fi-underground-economy-20111209,0,6550311.story

If you find these emails helpful and are not a member please join Small Business California. You can do so by going to www.smallbusinesscalifornia.com We need you to join so that we can continue to represent you in Sacramento and Washington.

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

California’s underground economy hits below the belt, agencies vow to crackdown

2011-12-09T16:14:00.000-08:00

Hello Everyone!

Please check out my commentary for the Southern California public talk radio 89.3 KPCC. copy& paste link below:

http://www.scpr.org/programs/airtalk/2011/12/09/21716/ca-underground-economy/

California Accredited Investor Exemption Legislation

2011-12-08T09:42:00.000-08:00

Yesterday, Small Business California Board member Lee Petillon , Lori Kammerer, our Government Relations person, and I met with Senator Price’s staff and representatives of the Consumer Attorneys of California regarding putting forth legislation that would help small businesses obtain capital.

Currently, the issuer of a private investment must have a pre-existing personal relationship with each prospective investor. This may be supplied by a registered broker dealer acting as the issuer’s agent. Small businesses do not have these contacts. They also do not have the size or track record to attract a registered broker dealer to arrange the offering. Thus, they are effectively prevented from legitimately raising any equity capital. This affects all small businesses but is particularly acute with minority and women owned businesses.

Our proposed legislation would provide for an exemption for issuer’s of these investments if the investors are accredited investors. This is defined as those with a new worth of $1 or individual incomes of $250,000 for individuals or $300,000 for households. We believe this would address the issue of access to capital for many small businesses. Clearly under current conditions banks, VCs, angel capital, etc are not meeting the needs of small businesses looking for $100,000 to $1 million.

This legislation will not be easy to pass should it get introduced. We will need your help. Will you help us get this passed? If you are a member of an association will your association help? We need to start getting our support in place. If you have questions let me know.

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

SBIR - Urgent Action Needed

2011-12-05T09:07:00.000-08:00

I rarely send out emails on something so specific and I know most of you are not SBIR (Small Business Innovation Research) recipients, but to the small business SBIR community this is really important. Small Business California asked you to support your small business colleagues around the country and sign on to support this legislation.See below. Small Business California has signed on and I have individually.

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

------------------------------------------------

SBIR Insider Newsletter
Special Edition
December 4, 2011

Dear SBIR Insider,

There is something important going on right now that we believe you should consider acting on. Although many of you write to us asking what you should do, we refrain from making suggestions because our job is to help you be well informed about the SBIR landscape so you can make your own decisions as to what you feel is appropriate.
We are going to make an exception in this issue, and tell you what we would do if in your shoes, then explain why. This has to happen before close of business Tuesday, December 6, 2011.

Brief Background
The Senate and House have now passed their own versions of the huge National Defense Authorization Act for Fiscal Year 2012 (NDAA).

Senate version is at: http://www.gpo.gov/fdsys/pkg/BILLS-112s1867es/pdf/BILLS-112s1867es.pdf
House version is at: http://www.gpo.gov/fdsys/pkg/BILLS-112hr1540eh/pdf/BILLS-112hr1540eh.pdf

Included in the Senate version of NDAA is the complete reauthorization of SBIR/STTR/CPP, from the language of the Senate's earlier SBIR compromise bill S.493. Amongst other improvements discussed many times (see past SBIR Insiders at www.zyn.com/sbir/insider ) this extends the program through September 30, 2018.

The Senate & House will meet this week in what's known as "conference" to work out the differences in the two NDAA bills. The House is more than squeamish about including the Senate's SBIR language in the NDAA, and certain powers that be in the House are working to strike the SBIR language as we speak. They will most certainly accomplish this unless we, as individuals and collectively as a community of businesses try to intervene.

What's Being Done Right Now
The Small Business Technology Council (SBTC) is rallying its members to sign on to a letter they have composed for the House & Senate leadership, urging them to keep the SBIR language in the NDAA (full text of the letter at the end of this article and at www.zyn.com/sbir/insider/SBIR_Reauthorization_Letter_to_Leadership_12-2011.pdf ).

What You Can Do
This is your opportunity to be a strong voice and sign on to this letter. You do NOT have to be a member of SBTC, nor is anyone asking you for funds. Here's all you need to do:
Send an email to alec@sbtc.org with your name, your company name, and your company address/location.

Tell SBTC it is to be used only in support of their letter to the House & Senate Leadership (as shown in the 12-04-11 Issue of the SBIR Insider) concerning the adoption of the Senate's SBIR reauthorization language (Division E–SBIR and STTR Reauthorization) in the Senate's version of the NDAA (S. 1867). Your email must be received by Alec at SBTC by close of business Tuesday, December 6, 2011. Feel free to copy us on the email (rick@zyn.com) if you'd like.

Why SBTC?
As you know, we cover most of the mainstream SBIR support efforts from various groups, and this action has nothing to do with joining or funding any organization.
The Small Business Technology Council (SBTC) is the oldest and most established voice dedicated to SBIR. Their executive director, Jere Glover (one of the SBIR founders) is the best known and most respected SBIR advocate on the Hill, and he is leading this effort to allow all SBIR supporters to sign on to this letter.
This does not diminish the other organizations trying to do their part, but your support on this letter is very important.

The Inside Skinny

Powerful special interests as well as the House S&T and Small Biz committees are pressing to delete this SBIR language from the NDAA. S&T and Small Biz contend that Armed Services lack jurisdiction over SBIR while others contend that SBIR is not germane to the bill. Non-germane amendments to a bill can kill the entire bill. Some House insiders are privately saying SBIR will never stay in the NDAA.

Germaneness is in the eyes of the beholder. How germane to SBIR was the amendment to S.990 (Small Business Additional Temporary Extension Act of 2011) that replaced SBIR with PATRIOT Sunsets Extension Act of 2011, or putting the IRS 1099 statute into last year's health care bill? Of course they repealed the 1099 clause this year because of overwhelming opposition (and lobbying) against it.

As for jurisdiction, more than 50% of the total SBIR program is DoD, and it should be noted that Armed Service Committee leaders in both House & Senate extended the DoD's SBIR program for 1 year in the 2010 NDAA when the House's inept S&T and Small Biz committees struggled for a series of several CRs, extending from 1 month to 3 months. House S&T and small biz not only gave short shrift to the DoD (which forced the Armed Services to act), but to the entire SBIR program.

With the Senate's SBIR language now being included in the NDAA, even BIO has come out in favor! (see http://www.bio.org/media/press-release/bio-praises-senate-passage-sbir-reauthorization ). With BIO on the side of passage, opposition is mainly sour grapes on the part of Graves & Velazquez, and a few on the S&T committee being driven by part of the university community.

The House leadership is likely to Support Graves & Velazquez to try and remove SBIR from the NDAA, and that’s why it is hoped that a letter with many small business signatures will create an environment for the leadership to support SBIR inclusion.

I can't guarantee the letter will work, but it's up to you to try. Senators Landrieu, Snowe, Levin and others did their part. Will you? Will your signature provide the impetus to HASC chair Buck McKeon (R-CA) and ranking member Adam Smith (D-WA) to support the Senate's SBIR language? With a name like Buck, you wouldn't think he'll be shy. Buck has been through this before when in the last congress, as ranking member he saw (then chair) Ike Skelton (D-MO) stand up to his party's leadership to do the right thing for SBIR in the 2010 NDAA (extending DoD SBIR for 1 year). Buck has a much bigger SBIR contingent than did Skelton.
Where's NIST?

The release date of on or about November 3 for NIST's SBIR solicitation has come and gone, but we hear that the solicitation is still in the works. Lots of legal issues plague the agencies on SBIR, and it doesn't help that the program is set to expire in a couple of weeks. I believe the NIST solicitation will be released soon. We'll let you know on our SBIR Gateway www.zyn.com/sbir

Text From SBTC Letter To House &Amp; Senate Leaders

Dear Leader Reid, Leader McConnell, Speaker Boehner and Leader Pelosi:

We write today to express our strong support for the reauthorization of two programs critical to the nation’s small business: the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs. As you may know, the most recent short-term extension of the SBIR program is set to expire on December 16th.

We understand there have been many good faith efforts to reach final legislation and appreciate the ongoing negotiations to reconcile the House and Senate bills. However, after 14 consecutive temporary extensions, it is now time to get a long-term reauthorization of these key, job-creating programs that will provide a vital economic stimulus to jump start the commercialization of new products American products and technologies.

To that end, Senators Mary Landrieu and Olympia Snowe filed the Senate SBIR legislation (S. 493) as a bipartisan floor amendment (S. Amdt. 1115) to the National Defense Authorization Act (NDAA) for Fiscal Year 2012 (S. 1867). This amendment, which was accepted by voice vote on the Senate floor, represents the best pathway by which the SBIR and STTR programs can be reauthorized this year.

We, the undersigned companies, strongly support the Landrieu-Snowe language. We therefore urge you to include in the final version of NDAA a workable, long-term reauthorization of the SBIR and STTR programs that closely tracks this language. The Senate’s SBIR Reauthorization bill is supported by both the small business and venture capital communities, including the National Small Business Association, National Federation of Independent Business, the U.S. Chamber of Commerce, the Biotechnology Industry Organization (BIO), and National Venture Capital Association.

We specifically oppose the addition of controversial provisions from the House version of SBIR reauthorization (H.R. 1425). For example, Section 505 of the House bill would eliminate the competitive, merit-based nature of the program by placing an arbitrary cap on the number of awards that can be given to the strongest SBIR participants. This runs counter to the goals and missions of the SBIR program, and would lead government agencies to invest in "second best" technology. We also oppose Section 105 of the House bill, which would eliminate the critical "Phase I" of the SBIR funding process. Since its inception in 1982, the SBIR program has utilized a three-phase process, under which no technology is given significant federal funding before feasibility is proven in an independent, peer-review process. Section 105 of the House bill would compromise this basic protection of the tax payer dollar. Finally, we oppose increasing the participation of firms that are majority-owned by venture capital interests beyond the parameters established in the Senate bill.

The SBIR program was created to increase the participation of small, high technology firms in federal research and development efforts. The program is widely recognized as having met these objectives and encouraged entrepreneurs to innovate and grow the US economy. Since the creation of the program, recipients of SBIR and STTR awards have provided small firms with $28 billion, and these firms have produced more than 85,000 patents, generating millions of well-paying jobs across all 50 states – as well as playing a key role in keeping our nation at the forefront of defense technology and scientific innovation.

In conclusion, we hope you will work with your colleagues this month to achieve final SBIR and STTR legislation that can be signed into law.
Sincerely,
Closing

Even if the letter fails, your efforts will add strength for additional bargaining power the Senate will have with the House on SBIR. NDAA is not the only issue on the congressional plate, as we have the expiration of the government wide CR on December 16. The House was scheduled to adjourn for the year on December 9, but now they reluctantly decided to move that date up to December 16 but perhaps longer.

As for other SBIR efforts, the House small biz & S&T committees have been insisting on their way or the highway. They also like the idea of 99% / 1%. They want 99% from their bill but are willing to give 1% to the Senate's. Once the SBIR issues settle down, I hope to be able to get back to once a month or so with the SBIR Insider. I regret taking this much of your time.

Sincerely,

Rick

Rick Shindell
SBIR Gateway
Zyn Systems
40 Alderwood Dr.
Sequim, WA 98382
360-681-4123
rick@zyn.com
www.zyn.com/sbir

Please respond to this email if you want to be removed from this distribution.
This and back Issues of the SBIR Insider are available at www.zyn.com/sbir/insider
Copyright © 2011 Zyn Systems. All rights reserved.

California Loan Programs

2011-12-02T10:23:00.000-08:00

In previous emails I said I would send information on California small business loan programs. Please find below information from Toni Symonds Chief Consultant for the Assembly Committee on Jobs,Economic Development and the Economy and Kurt Chilcott President and CEO of the Greater San Diego CDC Small Business Finance. Thank you both.

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

---------------------------------------

From: Symonds, Toni [mailto:Toni.Symonds@asm.ca.gov]
Subject: RE: EDD Tax Branch News #156 (California Business Owners)

There are several state and federal loan assistance programs. The California Capital Access program is a loss reserve program, which is designed to help businesses that are very close to being credit worthy. Each bank has its own reserve account. When a loan is enrolled in the account, the bank, the business and the state each put is a fee. The lender has access to the full reserve account for any defaults. The state generally puts in double the fee of the lender and the business. Prior to the most recent federal injection of $78+ million, the program only had $4 million new dollars each year. The Treasurer’s Office, who administers the program has been working with the JEDE Small Business Roundtable members to get more banks to participate in the program. Caled and others have been helping to encourage banks to sign-up.

The state also administers a 90% guarantee program, which is backed by a $30 million state managed account. This program also received $78+ million from the feds and is in the process of gearing up. This program best serves businesses that are credit worthy but do not necessarily fit the bank’s optimum profile for such things as years in business. Attached is a joint marketing flyer the Roundtable put together. We also have a very cool chart that talks about each of these programs and types of businesses they target. It has been used in cross training of public and private lenders by the SBDCs this past year. We should probable think about how to use it more broadly. I think it would be good to have a large lender list.

The link to the California Small Business Credit Initiative (pdf) can be found here:

http://www.smallbusinesscalifornia.org/Small%20Business%20Credit%20Initiative%20Flyer.pdf

The state’s programs have been very limited. Given the state’s financial situation, the state’s core programs have suffered through annual budget reductions. The federal Small Business Jobs Act, however, have given new life to the two state programs. So they may be worth a second look. I fully agree that there needs to be a secondary market for the state’s guarantee program and we have been talking about how to create more conformity among the loan products. The federal dollars may give us the incentive to jump start this work

-----------------------------------------

From: Kurt Chilcott [mailto:kchilcott@cdcloans.com]
Subject: FW: Small Business Lending

Small Banks and Alternative Mission Drive Lenders Providing Greater Access to Capital
California small businesses should be aware that there are capital resources available to them beyond the large bank and even community bank infrastructures. In fact a recent survey by Biz2Credit found that mission driven lender credit unions, microlenders and other non-profits are providing an increasingly large share of the smaller loans to small businesses. Due to declining sales and profitability, many banks are reducing or eliminating line of credit financing to small businesses. This cots off a vital source of working capital for many small businesses. Both small businesses and banks should be aware of and seek out alternative financing available through a range of alternative lenders. Many new programs have been established to meet these needs. Examples include:

1. SBA has implemented the 504 Debt Refi program available to small businesses who want to refinance the debt on their facilities at terms and maturities typically not available elsewhere: http://www.sba.gov/content/504-loan-refinancing-program

2. SBA has established a new program Community Advantage delivered by non-profit lenders for loans $250,000 and under. http://www.sba.gov/content/advantage-loan-initiatives

3. California has increased the reach of its State Loan Guarantee Program by increasing loan sizes to $1 million. http://buildworksource.com/california-loan-guarantee/

4. California has provided funding for the California Capital Access Program that provides a reserve fund for higher risk loans made by a range of financial institutions – banks and non-profits. http://www.treasurer.ca.gov/cpcfa/calcap.asp

Meeting Request of the Governor/SBA Administrator Comments

2011-11-30T11:43:00.000-08:00

Yesterday, Small Business California sent out a press release asking the Governor to hold a meeting with SBA Administrator Karen Mills, the Office of the Comptroller, the FDIC, the Federal Reserve, the California Department of Financial Institutions and bank representatives. See below. Our request has been made through Mike Rossi the Governors Economic Development Czar.

The second piece below from The Hill has SBA Administrator Karen Mills saying that Washington regulations are being interpreted more tightly at the Regional level which is why Small Business California has requested the Governor hold this meeting.

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

------------------------------------------------------

links can be found by going here:

http://news.google.com/news/story?ncl=http://thehill.com/blogs/congress-blog/labor/195943-still-a-long-way-to-go&hl=en&geo=us

Small Business California Calls on Governor Brown to Convene a Special Meeting ...
MarketWatch (press release)

Nationwide, banks have pared their small business loan portfolios by more than $47 billion since the pre-recession peak in 2007. Loans to small businesses are important because small firms play a vital role in the US economy. Firms with fewer than 500 ...
See all stories on this topic »

Still a long way to go
The Hill (blog)

Even SBA Administrator Karen Mills said in congressional testimony last month that the guidance coming out of Washington has been interpreted more tightly at the regional level by regulators, thereby slowing small business loans. ...
See all stories on this topic »

"32 Examples of Businesses Reducing & Eliminating Gasoline Use As They Drive Toward A Better Bottom Line"

2011-11-29T15:39:00.000-08:00

I would like to pass down this booklet from Hank Ryan at Efficiency Data & Development, which can be a very informative resource. The booklet is called, "32 Examples of Businesses Reducing & Eliminating Gasoline Use As They Drive Toward A Better Bottom Line" and it can be found by going to our website or clicking/copying & pasting this link:

http://www.smallbusinesscalifornia.org/Bottom%20Line-%20Updated.pdf

The publication has two objectives. First, it shows examples where businesses have invested in long term improvements that offer a rate of return which increases profit for the business over the long haul. Even a 10 percent rate of return on these improvements is often double or triple what the business returns as a net profit.

Second, these examples and the suggestions from the business owners you’ll read about are meant to show how other businesses can learn from and improve on these smart business improvements. These are not “one off” demonstration projects.

Finally, the focus for these examples is on smaller firms, mainly those with 100 employees or less. While larger companies demonstrate many valuable innovations and their buying power can serve to help develop economies of scale, our focus is on inspiring the millions of smaller firms to use the examples in this publication along with the ingenuity they must bring forward every day to increase their profits. In this way, America’s small businesses will form the foundation of a stronger and more secure economy for everyone.

If you have any questions, please feel free to contact Hank below:

Hank Ryan
Efficiency Data & Development
Also representing:
SB California (www.smallbusinesscalifornia.org)
The Wash. D.C. based Center for Small Business and the Environment
750 47th Ave. #56 Capitola, CA 95010
T: 510-459-9683 F: 831-476-1248

EDD Tax Branch News #156 (California Business Owners)

2011-11-28T14:44:00.000-08:00

I received an email from SB Cal board member, Stephen Cornell, regarding changes in California Unemployment tax. Please note the decrease in tax credit from 5.4% to 5.1%. See below for link to article.

Are any of you aware of the lending programs available to California small from the state? In a future email I will talk in more detail about what is available but at this point I am I am trying to judge awareness. Has your banker ever talked to you about these? Suffice it to say there are programs including a loan guarantee which may be helpful to you.

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

---------------------------------------------------------------------

This is a follow up to the question of how California will pay its outstanding $2 plus billion in outstanding federal loans for the Unemployment Insurance fund. The federal government has said to California, you haven't paid your loans back, so we will reduce the amount of credit each employer can take in calculating its obligation for Federal Unemployment Insurance payments (Form 940).

http://edd.ca.gov/Payroll_Taxes/Federal_Unemployment_Tax_Act_Credit_Reduction.htm

The new rates go into effect on January 1, 2012.

Small Business Lending/ Small Business Saturday

2011-11-28T09:37:00.000-08:00

I hope you all had a great Thanksgiving! On November 8th, Biz2Credit released their Small Business Lending Index. They did an analysis of loan approvals for 1,000 loan applications in October and found that small banks approved 46.3% , big banks[institutions with $10 billion plus in assets] 9.2% and alternative lenders[credit unions ,Community Development Financial Institutions, micro lenders and others] 61.5%.

The Index identified the Top 5 reasons why small business borrowers have not been received funding.

1.More than 68% of small businesses reported declining sales in the first 8 months of 2011

2. Profitability has declined at more than 86% of small businesses over the last 2 years.

3.Bank underwriting criteria is stricter now than in 2010 when stimulus money was flowing.

4.Uncertainty among big banks is leading to increased dissatisfaction among small business owners.

5. Avoidance: small business owners believe they are unlikely to get loans and that the process takes too long.

I hope all of you are promoting Small Business Saturday. I hope you are able to use this to promote your business. Please see email from SBA below.

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

-------------------------------------------------------------------------

Make a Big Difference on Small Business Saturday®

SBA says shopping at small businesses can have a huge impact on local economy

WASHINGTON – As a proud supporter of Small Business Saturday®, a day dedicated to supporting small businesses on one of the busiest shopping weekends of the year, the U.S. Small Business Administration is encouraging every American to support small businesses by doing some of their holiday shopping on the Saturday after Thanksgiving at small businesses.

This year’s Small Business Saturday® is Nov. 26, 2011.

“Small businesses are the foundation of our economy – half of America’s workers either own or work for a small business,” said SBA Administrator Karen Mills. “Small Business Saturday® is an opportunity to show our support for our friends and neighbors who throughout the year are growing our local economy, as well as supporting many local initiative and organizations.”

Nov. 26 marks the second annual Small Business Saturday®, a day to support the local small businesses that create jobs, boost the economy and preserve neighborhoods around the country. First there was Black Friday, and then Cyber Monday, and now Small Business Saturday® will help drive shoppers to America’s job creators. Small businesses have generated two out of every three net new jobs over the past 15 years and employ over half of all private sector employees.

For more information on how to support Small Business Saturday® in your area, or to get great Small Business Saturday® marketing tips and resources, check out www.sba.gov/saturday or visit Facebook.com/smallbusinesssaturday and follow us on Twitter @SBAgov, #SmallBizSat.

###

Best,

Chris Chan
Special Advisor for Public Engagement
Office of Communication and Public Liaison
Small Business Administration (SBA)

UPDATE! letter from OSHA- Ellen Widess

2011-11-22T11:48:00.000-08:00

Today, I just recieved a letter from Ellen Widess at OSHA. Please click the link below (or copy and paste) and let me know what you think.

http://www.smallbusinesscalifornia.org/OSHA%20letter%20from%20Ellen%20Widess.pdf

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

Small Business Line of Credit/ Senate Select Committee on Restoring the Middle Class

2011-11-22T09:28:00.000-08:00

Yesterday, I was contacted by a Financial Staff Writer at the LA Times. He indicated that he had been contacted by some small business owners indicating that one major bank was imposing maturity dates on longstanding lines of credit that had never had them before. He indicated that they did have high balances on the LOCs, but had never missed a payment and the demands for full repayment had created some real problems for these businesses.
Interestingly enough, I have also been contacted by small business owners on this same issue and the same bank.
Have any of you had problems like this with your bank? Who is the bank?

On November 30th, I will be testifying before the Senate Select Committee on Restoring the Middle Class. I would be interested in your thoughts on what role small business plays on this issue given that we employ almost half of the people in the private sector.

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

Governor Conference/ Walgreens

2011-11-18T09:19:00.000-08:00

Small Business California is working on having the Governor call a meeting with Karen Mills, the SBA Administrator, the FDIC, the Federal Reserve and State bank regulators. The purpose of the meeting would be to have the regulators in the same room with the Governor and Ms. Mills to discuss small business lending. When we talk to bankers they tell us they are caught in the middle. They are being told to give loans to small businesses and then when they do, they get slapped on the wrist by the regulators. Yesterday, I talked to a reporter interested in this and he told me that he had discussed the concept with a bankers association and they were very supportive of this. We also have a request made to Mike Rossi, the Economic Development Czar for the Governor.

Recently, it was announced that Walgreens and Anthem were severing their relationship. For those of you with health insurance through Anthem [Blue Cross] how will this affect you and your employees?

Rick Schindel advised that the SBIR program has been extended to December 16th. As an aside in his newsletter, he alluded to a comment by Erskine Bowles. The comment has nothing to do with SBIRs but you may find it amusing. Mr. Bowles says:

“What we are doing doesn’t make common sense. We have a treaty with Taiwan; we’ll protect Taiwan if they are invaded by the Chinese. There’s only one problem with that, we got to borrow the money from the Chinese to do it. It’s crazy”

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

Chief Counsel Praises the Repeal of Three Percent Withholding Requirement on Contractors/ Volunteers In Medicine

2011-11-17T11:48:00.001-08:00

Please see below statement by Winslow Sargeant on 3% withholding. Note it is being repealed. Thank you Winslow and Advocacy's help on this.

I will be going to Santa Monica this week to meet with the CEO of the Entertainment Industry Foundation along with Amy Hamlin, the ED of Volunteers in Medicine. The Entertainment Foundation has been the fastest growing Foundation over the last couple of years growing over 400%. You may have seen their work in the Stand Up2 Cancer campaign where they raised $100 million.

We are looking to get funding from them and see if we can get a National spokesperson. We have put together some numbers for Volunteers In Medicine which are truly amazing.Over the last 12 years we have spent $3.5 million and developed 85 clinics that have raised $175 million. That is an ROI of $50 to $1. In 2010 our clinics spent $25 million and had 350,000 patient visits. That is less than $80 per patient visit. Compare that to the cost of an emergency room visit. We estimate that our clinics have saved $62 million for community hospitals. Our goal is to develop 250 clinics by 2016

Scott Hauge
President
Small Business California
415-680-2188

------------------------------------------------------------------------------------------
For Release: November 10, 2011
Contact: Patrick Morris (202) 205-6941
patrick.morris@sba.gov
SBA Number: 11-32 ADV

Chief Counsel Praises the Repeal of Three Percent Withholding Requirement on Contractors

Washington, D.C. – Today Chief Counsel for Advocacy Dr. Winslow Sargeant praised Congress’ repeal of the three percent contractor withholding requirement. The requirement would have required federal, state and local governments to withhold three percent of nearly all payments made to contractors, placing a burden on numerous small businesses. By a vote of 95 to 0, the Senate passed the Government Contractor Withholding Repeal Act. The House has already passed a similar piece of legislation. The Office of Advocacy has consistently worked with small businesses for the elimination of this unfair burden. The Chief Counsel called for its elimination in May of this year.

“The repeal of the three percent withholding requirement is a victory for small business,” said Dr. Sargeant. “For small businesses to thrive in government contracting they need an environment that is clear, transparent and predictable.”

The three percent withholding requirement would have adversely affected the accounts all small businesses that provide services to government entities. Most of the small businesses would have had to increase their debt level in order to ensure sufficient cash flows and thus pass these additional expenses on to their government customers. If small firms were unable to secure additional debt, the three percent withholding requirement might force them out of the Federal contracting market.

The three percent provision was included in the Tax Increase Prevention and Reconciliation Act of 2005 in an effort to ensure that individuals and companies that receive new payments from the federal government did not accrue tax debt. The law mandated that federal state and local governments with expenditures of more than $100 million withhold three percent of payments for products and services worth more than $10,000. The requirement was scheduled to take effect on January 1, 2013.

The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The presidentially appointed Chief Counsel for Advocacy advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policymakers. Regional advocates and an office in Washington, D.C., support the Chief Counsel’s efforts. For more information, visit http://www.sba.gov/advocacy, or call (202) 205-6533.

Health Law to Supreme Court/ SBIR/ Fred Patterson

2011-11-14T15:21:00.000-08:00

Please see below for the announcement that President Obama’s health care law will be heard by the Supreme Court with a ruling in July. As you know, this has been going through the lower courts with mixed decisions.

The Small Business Innovative Research program will be running out of money November 18, 2011.It appears that the program will be part of a Continuing Resolution to keep much of the government open until Dec 16, 2011. It also appears that there might be a breakthrough in finding a compromise between the House and the Senate in getting an appropriation beyond the Dec 16th timeline.

I just got word that Fred Patterson[aka The SBIR Coach] has recently been diagnosed with Stage IV-a “locally advance oropharyngeal cancer.” Fred indicates he has been told the survival rate on this cancer is 37%. Most of you don’t know Fred, but he has been a tireless advocate for the SBIR program. All our prayers are with him. You can reach Fred at fredsjourney@gmail.com

Please drop him a note and tell him the small business community around the country is there for him.

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
License #0A32315

AARP - Personal automobile insurance and homeowners insurance

2011-11-09T09:37:00.000-08:00

Some of you may not be aware that CAL Insurance provides personal automobile insurance and homeowners insurance. In fact, we currently have more than 2,000 automobile and homeowner clients. We are always looking for opportunities to provide the best coverage at the lowest price and I am very excited to tell you that we are now an authorized agent of Hartford to offer AARP automobile insurance through the AARP Auto Insurance Program.

Until now, this insurance was only available by dealing directly with Hartford. If you are a member of AARP, we think that you can reap huge benefits in having CAL represent you. We can explain the coverage and help you in the event of a claim like we do on your commercial insurance. We can also compare AARP prices and coverage with other insurance companies that we represent.

If you are a member of AARP, give Eddie Sandoval a call.
You can reach by phone at (415) 680-2112 or by email at esandoval@cal-insure.com

CAL Insurance is there for you for all your insurance needs. You can also get more information by going on our website at: http://www.cal-insure.com/#

Scott Hauge
President
CAL Insurance and Associates, Inc.
2311 Taraval Street
San Francisco, CA 94116
www.cal-insure.com
Phone: (415) 680-2109
Fax: (415) 680-2137
"Always looking out for you"

Health Insurance Regulations

2011-11-04T09:35:00.000-07:00

As I think most of you know, the California legislators considered a bill to allow for rate regulation by the Insurance Commissioner and the Department of Managed Care[ AB51]. Small Business California did not take a position on this and it has not passed.

In Maine, which allows the state to regulate rates Anthem, is suing the state for rejecting their rate filings. The state said that the insurance company could make a profit of 0% in 2009,.5% in 2010 and 1% this year. Anthem is basing their lawsuit on the theory that the state cannot regulate to the point of not allowing a company to make a fair rate of return on their investment.

What do you think about this? It should be noted that states can regulate rates in 26 states and there has been legislation to allow state regulation in 7 other states including California.

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
License #0A32315

Conference Call with SBA Administrator Mills and the White House – Tomorrow!

2011-11-02T15:30:00.000-07:00

This may be of interest to some of you. Note time is (EDT)

-------------------------------------------------------------------------------

Friends:

On Thursday, November 3rd at 5:00 p.m. EDT, please join Administrator Mills from the Small business Administration and Jon Carson, Director of the Office of Public Engagement, for a conference call about the American Jobs Act and its benefits for small businesses in your communities.

We ask that you share this invitation with your networks and affiliates.

Please RSVP here

Thank you,

The White House Office of Public Engagement
WHAT: White House American Jobs Act Call with Administrator Mills
WHEN: Thursday, November 3rd
Start Time: 5:00 p.m. EDT
Dial In: (800) 288-8968
Passcode Title: White House Call with Administrator Mills and Jon Carson

This call is off the record and not for press purposes.

Karen Mills Letter

2011-11-02T15:16:00.000-07:00

We just received a response to our letter to Administrator Karen Mills at the SBA (click image below to enlarge). There were 14 California Small Business Associations that signed on to this letter, along with Small Business California. The good news is that Regional Administrator Elizabeth Echols has been designated as the point person for SBA. She will lead the efforts to help small businesses in California to find ways to reduce their energy use and reduce their energy cost.

You will see in the letter that we will be working on getting out more information about the President’s Better Building Initiative, promoting On Bill Financing with PG&E and Southern California Edison, and expanding On Bill Financing with San Diego Gas. We will also try to find ways to work with public utilities.

Do you have any ideas of additional things Small Business California and SBA can do to help small businesses in this area?

Withholding on Government Contracts/Receivables/ Issues

2011-10-28T11:50:00.000-07:00

Yesterday, the House voted 405 to 16 to repeal legislation (passed in 2005) to impose a 3% withholding tax on government contracts. The original bill has been delay until 2012 and has not been implemented.This is great news for small businesses! Small Business California has been very vocal in supporting the repeal. It appears that this has bipartisan support so we are hopeful it will be passed in the Senate. We will let you know when it goes to the Senate.

Yesterday, I received a call from a reporter asking about collection of receivables for small businesses, given the downturn in the economy. He told me two surveys have been done one saying time for collection is 23 days and another being 36 days.

What has been your experience? Have you seen an increase in the time to collect receivables? Are you writing off receivables? Is the delay in collecting receivables creating cash flow problems for you?

I am always looking for issues affecting small business. If you have an issue that is broad based and affects small businesses that have not been brought up in a previous email from me I would like to know. Please make the subject of the issue state based as I cannot deal with local issues.

I hope you find these emails beneficial and if you are not a member, I hope you will consider joining Small Business California. You can do so by going to our website www.smallbusinesscalifornia.org

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
License #0A32315

AARP/On Bill Financing

2011-10-26T10:16:00.000-07:00

AARP is one of the most powerful lobbying groups in Washington and to a lesser degree Sacramento. There are about 3.2 million members in California alone. Traditionally, small business organizations have not worked with AARP but my question to you is should Small Business California reach out to AARP?

You may not be aware that many of the start up businesses being created are by people 50 and over. It also seems like small businesses would be interested in tapping into a work force of people 50 and over where many of which need or want to work after retiring. What are your thoughts? Are there other issues we can work together on? Are you a member of AARP?

On Oct 13th, Senator Bernie Sander [Vermont] chaired a hearing on how utilities can help customers use savings on their monthly energy bills to finance energy efficiency improvements at homes and businesses. If this sounds familiar, it is exactly what Small Business California has brought to California with its On Bill Financing program.

Senator Sanders was quoted as saying “When you have a program that cuts energy bills and makes small businesses more competitive, creates jobs and slashes greenhouse gas emissions, that is a win-win-win, and Congress should support these efforts”

Small Business California has asked Mike Rossi, the Energy Czar for the Governor to help us expand On Bill financing in California. Small Business California and 14 other small business associations in California have written a letter to SBA Administrator asking the SBA to assist in these efforts. The SBA is required to do this under the 2007 Energy Bill passed by Congress and signed by the President. In California, San Diego Gas & Electric has done a great job in implementing On Bill Financing. PG&E and Southern California Edison quite frankly have dragged their feet.

On Oct 25th, Victor Parker was sworn in to be the SBA District Director of LA, Ventura and Santa Barbara Counties. Mark Quinn, District Director in SF, has been shuttling between SF and LA filling in as acting District Director for the last few months. Does anyone know Victor? Small Business California looks forward to working with him.

SBIR Insider Update 10-19-11

2011-10-19T10:22:00.000-07:00

The email below is about the Small Business Innovative Research Program. Small Business California and the National Small Business Association have been strong supporters. I know most of you are not involved in SBIR, but I think the email from Rick Shindell (SBIR Gateway)gives you a good understanding of the politics in Washington and politics in general, in respect to small business.

The SBIR has been a very successful program and has shown support on both sides of the aisle and yet, it has been operating on continuing resolutions for years because of partisan bickering. I hesitated sending such a long email, but I think small businesses need to know political realities.

I am pleased to say we have over 100 people confirmed for the Travelers/Small Business California Symposia Oct 20th. I look forward to seeing all those that are attending. I also want to thank all of you that completed the survey. If you would like a copy of the results please let me know.

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
License #0A32315

---------------------------------------------------------------------------------

by: Rick Shindell
SBIR Gateway

SBIR Insider Newsletter Update
October 19, 2011

In order to tell you what is going on with SBIR reauthorization, we must discuss the politics, this time, not for political junkies only. If you can suffer through the political portion, you'll have an increased understanding of the SBIR reauthorization problems, and how we can deal with them.

SBIR reauthorization is NOT a partisan issue, both parties tend to like the program, BUT they like (and need) money more. The excesses of campaign and party finances have brought about the degradation of our political system thereby diminishing the "well being" of our country and its citizens. Amongst other things, this has lead to the lowest approval rating of Congress in our history. It's possible now they will be more amenable to listening to you rather than dollars.

Perhaps we should look at ourselves as part of the cause. The simple fact is that the candidate with the most money in their election coffers, win 94% of the time. Sure we hear about the 6% because it is remarkable but all too rare.

Due to this 94% fact, both parties require their candidates to raise money not just for themselves, but for their party, so the party can put more financial support into candidates in tougher races, thereby trying to achieve a majority in congress.
Small businesses get a lot of "chin music" from congress, but at the core, (and behind closed doors) small businesses are not considered a good fund raising resource, so more attention goes to the larger, better funded concerns. This is especially true in the House with its 435 members.

Jurisdiction for legislation is related to a committee's mission, i.e., Armed Services, Small Business, Finance, Science, etc. The power is in the hands of the committee chairs and ranking members. More often than not, committee members fall into line with what their chair/ranking member wants. Then when the bill is brought out of committee to the whole House, the parties usually follow the lead of the their committee chair or ranking member.
Rock & Roll: That's what was so remarkable when the House democrats rolled (voted against) their ranking member of the Small Business Committee, Nydia Velazquez (D-NY) last May to pass the SBIR continuing resolution (CR) to keep the program going through September 30, 2011. That didn't happen by accident, it was the flood of calls that many representatives received from their constituents (you) urging them to pass the CR.

Exception to the Rule: The House Small Business Committee had it's chairs and ranking members in the back pocket of BIO and NVCA ever since former chair Donald Manzullo (R-IL) left in late 2006. On several occasions (including in the Congressional Record) Manzullo discussed the heavy lobbying and pressure tactics of those groups, (wanting to allow a small business to be majority owned and controlled by non-small business). Manzullo wouldn't cave to their pressure, and throughout his tenure as chair of the committee, Inc magazine rated him as one of the best friends to small business (for a variety of excellent reasons).
The total opposite is true for both Sam Graves (R-MO) the current chair, and Nydia Velazquez the ranking member and former chair. Both Graves and Velazquez have been fighting to give BIO, NVCA and some others, everything they want, and more. That's been the biggest sticking point in SBIR reauthorization.

If we look at the 2010 lobbying dollars for BIO and NVCA (as reported by The Center for Responsive Politics) we see the following lobbying contributions:
Biotechnology Industry Organization: $8,440,000
National Venture Capital Association: $2,567,515

You're not going to see those kinds of dollars coming from the small business community.
For his personal election efforts, Mr. Graves hasn't had a serious election challenge since 2000. In 2010 he raised over $1M (73% from PACs) and his opponent could raise only $16K. Graves got 69% of the vote!

Velazquez also raises a lot of money but runs virtually unopposed every time. Why does she need the extra money? According to numbers provided in Marian Currinder’s book "Money in the House", a democrat who receives a leadership position on a lower level committee (such as small biz) must contribute $150,000 in dues to the Democratic Congressional Campaign Committee (DCCC) and raise an additional $100,000.

The republicans aren't much different, so Graves must contribute a lot of money to his brethren as well. Neither Graves nor Velazquez can get the money they need from small businesses, but it's a piece of cake for the big boys, just give them what they want.
The Senate: The Senate Committee on Small Business & Entrepreneurship (SBE) led by Mary Landrieu (D-LA) chair, and Olympia Snowe (R-ME) ranking member, worked tirelessly with their staff, small businesses, industry trade groups, state & local governments, and other stakeholders to strike a reasonable compromise bill that could be supported by the SBIR stakeholders. They accomplished this in their bill S.493 The SBIR/STTR Reauthorization Act of 2011. This bill also included many of the provisions (or compromises thereto) that were championed by the House Small Business Committee, including a generous amount for VCs.
The SBE's compromises were so carefully worked out in S.493, that it led to letters of enthusiastic support for passage of the bill by the Biotech Industry Organization (BIO), National Venture Capital Association (NVCA), Small Business Technology Council, and many others.

In a March 7, 2011 letter of support to Senators Landrieu and Snowe, BIO president and CEO James Greenwood stated:

"On behalf of the Biotechnology Industry Organization (BIO) and our more than 1,100 biotechnology companies, academic institutions, state biotechnology centers and related organizations, I am writing in support of S. 493, legislation to reauthorize the Small Business Innovation Research (SBIR) and Small Business Technology Transfer Program (STTR) programs. This bill represents a balanced approach to ensure that America’s most innovative small businesses can access existing incentives to grow jobs by commercializing new discoveries."

On March 8, 2011, NVCA president Mark Heesen also wrote a letter of support to Landrieu and Snowe:

"On behalf of the National Venture Capital Association (NVCA) and its members, I am writing in support of Senate passage of S. 493, the SBIR/STTR Reauthorization Act of 2011, which reauthorizes the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. This legislation represents a fair compromise to ensure that America's most innovative small businesses can once again have access to existing government incentives to grow jobs by commercializing new discoveries."

Unfortunately the Senate was not able to invoke cloture on S.493, largely because it was brought to the Senate under an open rule which allowed about 200 amendments to be offered to the bill, almost all of which were not related to SBIR. So the bill just sits idle in the Senate, but its language is available for future use.

In the House:, Two committees have oversight of the SBIR program, the House Committee on Science Space & Technology (HSS&T) and the House Committee on Small Business (HSB). The HSB generally takes the lead unless there is an issue dealing with the universities (we'll discuss later).

H.R. 1425, Creating Jobs Through Small Business Innovation Act of 2011, was reported out of the HSS&T and HSB in mid-May of 2011. It has yet to reach the House floor.
Seeing the Senate's compromise on the VC issue (supported by BIO and NVCA), the HSB decided to double the amounts for the VCs, and add Hedge Funds and Private Equity Investment Organizations to the list of entities that could have majority ownership of a small business and still compete for SBIR funding. This added support from their Wall Street benefactors. Of course, BIO and NVCA were more than happy to support the House bill that gave them more than they dreamed of!

Disingenuous Dear Colleague ???: HSB Chair Sam Graves sent a "Dear Colleague" to House members on September 15, 2011 that at best could be termed "misleading." Let's examine:
Mr. Graves states: "First, let us say that it is our full intention as the Chairmen of the House Small Business and Science, Space, and Technology Committees to negotiate a long-term reauthorization of the SBIR program."

Challenge: Graves mentions "long-term reauthorization". SBIR has always been reauthorized in 8 year chunks. Last year Graves supported only a 2 year reauthorization, this year he proposes 3 years. The Senate is supporting the customary 8 years, but Grave's sticks to 3. Is that "long term?" It should be noted that work on SBIR reauthorization began in 2005 in anticipation of a 2008 expiration.

Mr. Graves states: "We have been diligently working with members on both sides of the aisle and on both sides of the Capitol to put together a long-term reauthorization that improves and modernizes the SBIR program and provides certainty to the thousands of small businesses that utilize the program."

Challenge: "Both sides of the Capitol?" Nonsense. Check with the Senate Committee on Small Business & Entrepreneurship (SBE) on this. HSB posture has been their way or the highway.
Mr. Graves states: "We remain committed to reaching a deal on a SBIR reauthorization and will continue our discussions with the Senate to reach a deal."

Challenge: This gives House members the impression that details are being worked out when in fact, they aren't. Grave's worry is that you may try to do to him as you did to Ms. Velazquez, getting the party to "roll" (vote against) their ranking member or chairman . This saved the SBIR program back in May.

The main thing that saved the SBIR program in the last CR back in May, was your involvement, speaking up, working with your congressmen, telling them what was reasonable and proper, and what you expected from them. Many of you did this independently, or working with groups such as SBTC, SBBC, and/or some state organizations formed by small high tech businesses.
The Heroes Step Forward: Remember our previous statement concerning committee jurisdiction. In keeping with that, on October 11, 2011 Congressman Edward Markey (D-MA) along with 24 other representatives sent a letter to HBC chair Sam Graves & ranking member Nydia Velazquez about SBIR reauthorization issues.

They voice concern about the VC language in H.R.1425 and suggest borrowing from the Senate's S.493 language: "…therefore urge you to include language on VC participation similar to that of S. 493, which is supported by both the small business and venture capital communities. Also, integral to a limited increase in VC access is an increase in the total allocation for the SBIR program from its current 2.5 percent level to 3.5 percent, which also has support from a broad coalition of business groups, including the Small Business Technology Council, the U.S. Chamber, and National Federation of Independent Businesses."

"Second, we are concerned about section 505 of H.R. 1425, which would limit the number of SBIR awards and dollars individual companies can receive, and in doing so would seriously undermine the merit-based principles that make the SBIR program so successful."

They also voice concern and opposition to "direct to Phase II" (bypassing phase I) and they urge a long term reauthorization, as has been the case for almost 28 years. A complete copy of the letter can be seen at: www.zyn.com/sbir/insider/markey2.pdf

The hero's who signed the letter are:
Edward Markey (D-MA); Niki Tsongas (D-MA); Peter Welch (D-VT); David B. McKinley (R-WV); Rosa L. DeLauro (D-CT) ; Donald Manzullo (R-IL); Lois Capps (D-CA); Laura Richardson (D-CA); Joe Courtney (D-CT); Jackie Speir (D-CA); Jared Polis (D-CO); John Tierney (D-MA); William Keating (D-MA); Paul Tonko (D-NY); Sam Farr (D-CA); Bill Posey (R-FL); Jim Langevin (D-RI); Maxine Waters (D-CA); Chris Murphy (D-CT); David Cicilline (D-RI); Pete Stark (D-CA); Marcia Fudge (D-OH); Martin Heinrich (D-NM); Raul Grijalva (D-AZ); Ruben Hinojosa (D-TX)

Another "Potential" Hero? In a written response to one of his small business SBIR constituents who voiced concern over the VC issue in House bill, Speaker of the House John Boehner (R-OH) stated: "I am concerned that the bill goes too far in relaxing constraints on venture capital ownership of firms receiving SBIR and STTR funds which could lead to the subsidization of venture capitalist firms with taxpayer dollars. Rest assured, I will keep your thoughts in mind as H.R. 1425 moves through the legislative process."

Speaker Boehner may well remember that a former speaker of the House, Tom Foley was voted out of office by his Washington State constituents, many of which thought he gave more attention to his lobbyist backers than his constituents. Also, Boehner saw his good friend and neighbor Steve Chabot (R-OH) get voted out of the house in 2008 for similar reasons (Chabot is now back in as of the 2010 election).

The University Backlash: The university groups historically disliked and often tried to reject/abolish the SBIR program. In fact, it was the university community along with the NIH that were able to remove/exempt SBIR (in the dead of night) from any inclusion in recovery act (ARRA) funding.

The HSS&T totally rejected the Senate's idea of increasing the SBIR allocation from 2.5% to 3.5% over 10 years. Any SBIR increase was historically fought against by the university community), and the HSB was more than happy to accommodate them. This put the universities solid support in the corner of the House's H.R. 1425 SBIR bill, which made no increase in the SBIR allocation, but removed significant portions of SBIR dollars from small businesses to channel those dollars to Wall Street and university programs.

Most people don't realize the enormity of university lobbying. Just as we discussed the power of organizations such as BIO and NVCA, we must include the university sector and non-profits in the group of power brokers, such as:

Federation of American Societies of Experimental Biology (FASEB): $331,384
Association of American Universities (AAU): $77,442
Battelle Memorial Institute (non-profit): $700,000

Of course the prim and proper atmosphere of the universities made them the ideal group to disparage the success of the SBIR program (even though they were often a beneficiary of SBIR/STTR success). It wasn't personal, but they believe that the agencies' extramural R&D budgets (especially NIH) belonged to them, and any deviation of those funds would result in cures and treatments not being funded or discovered. It is like small R&D businesses are merely chopped liver trying to suck blood money out of critical university research.

In fact, some in the university sector delighted in citing SBIR "waste, fraud & abuse" (WFA) as an example of a poor government investment. Indeed there is some and it should, and will be dealt with. However, it has yet to be demonstrated that SBIR has as much or more WFA than other government programs and participants, including universities!

Excuse me, I've been told that universities don't have WFA, but merely an occasional wayward professor. Other times it is simply a matter of "Research Misconduct."

I suppose it was a simple case of research misconduct when EPA reported (in their publication "When Good Money Goes Bad"): A university in New England agreed to pay $2.5 million in damages and penalties to settle civil allegations that the university submitted false claims on approximately 500 federal grants awarded to them. Let's be honest, intentional WFA is a product of the dark side of the human animal, and it's present in all environments. We should work together to minimize it, as well as reduce unintentional occurrences of WFA.

Support the National SBIR Fall 2011 Conference, Nov 6-9, 2011 * New Orleans, LA
Most of the National SBIR conferences are there to support you in your SBIR/STTR ventures, and this is also true of the New Orleans conference. However, this is also an excellent chance for us to show our support for the program.

There are some very good sessions planned, and the agenda is now posted on their web site at www.sbirla.org Early registration discounts are available through October 26, and special hotel per diem rates may still be available, but on a limited basis, so lock in your room quickly.

Complete information about the conference is available on their web site at www.sbirla.org
I hope to see you there.

Independent Contractors Legislative Ideas/AB361

2011-10-14T09:20:00.000-07:00

What is an Independent Contractor?

This has been a big issue for small businesses, not only in California, but around the United States.During a White House Conference in 1995, this issue rose to the top and put forth to the President by small businesses around the country. Misclassification can mean thousands of dollars in fines and penalties by the IRS and EDD. IRS and EDD are stepping up their audits of small businesses looking for these misclassifications. The problem is IRS and EDD have somewhat different definitions. The IRS has a 20 point test, but does not tell businesses how many of the points in the test you must comply with.

Have you been audited by IRS or EDD? Do you know what some of the rules are to establish Independent Contractor status? Small Business California is considering introducing legislation next session to clarify what the Independent Contractor rules are in California. What are your thoughts on this? If you would like to see the IRS 20 point test, please see the link below:

http://www.comptroller.ilstu.edu/downloads/20-factor-test-for-independent-contractors.pdf

Speaking of legislation Small Business California is looking at putting together its package of bills for next year. We have legislators that have come to us asking for ideas on small business legislation they can carry. Do you have any ideas?

On Sunday the Governor signed Assembly Bill 361 [Huffman]. Small Business California was a strong supporter of this bill and worked closely with Assemblyman Huffman’s office in getting this passed and signed by the Governor. The bill creates a new, fully voluntary class of corporation called a benefit corporation. This allows businesses to pursue a material positive impact on the environment and community in addition to maximizing profits. Assemblyman Huffman says “we have a law that send a strong message to entrepreneurs that California is open for this emerging form of business.

Under AB361 businesses can choose to incorporate as benefit corporations and enjoy the following:
1. Greater access to social impact and venture capital investments
2. Legal protection for directors and officers in the more broadly defined fiduciary roles of maximizing profits as well as ensuring social and environmental considerations
3. Marketing opportunities because of their social responsibility.

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
License #0A32315

Kaiser rolls back rates for some firms

2011-10-12T10:26:00.000-07:00

Kaiser rolls back rates for some firms
Health care giant responds to newly empowered regulators
Date: Friday, October 7, 2011, 3:00am PDT
Business Journal- Sacramento

By: Kathy Robertson

In an unusual twist, “payback” is the buzzword this fall as millions of Californians prepare to make health plan choices for 2012. Kaiser Permanente is rolling back rates by 1.2 percent for small employers with contracts up for renewal between July and December 2011 — and is giving premium credits totaling $13.7 million to those who already started paying higher rates that took effect July 1. The first credits will show up on November bills.

The move is a response to pressure from state regulators with new authority to examine rate hikes more thoroughly than they have in the past. Blue Shield of California is passing out premium credits, too, but for a different reason. The health plan announced in June intentions to give back $167 million to employers, part of a move to reduce profits for 2010 to 2 percent. Most affected customers will see a credit on their October bill. How the changes will affect employee health benefit choices is unclear, but brokers like carrying a positive message for a change.

“It’s better than having (employers) swear at you,” said Jo-D Parisi, a longtime local health insurance broker. “Now, it’s ‘Guess what? Your rates are going down.”

While some employers renew coverage at other times of the year, many hold annual “open enrollment” in the fall, including the giant California Public Employees Retirement System . Open enrollment for CalPERS members is Oct. 10 through Nov. 4. The two plans say it’s a coincidence that the paybacks are playing out now, and they have no relation to open enrollment.But it’s not bad to look good at this time of year. Open enrollment is so competitive that plans crank up advertising to strut their stuff to the public. Done for different reasons, the net effect of these actions by Kaiser and Blue Shield is a little break for some small employers.

“It’s a credit on premium or you get to pay less money going forward,” said Vinny Catalano, area vice president at Arthur J. Gallagher & Co.

The bottom line for small businesses who want to provide health insurance is they are being priced out of the market,” said Scott Hauge, president of Small Business California and owner of an agency called Cal Insurance. Hauge’s company is getting a premium credit from Kaiser.

“What this is, is a credit on the increase,” Hauge said. “Only in insurance!”

Rollback at Kaiser

Almost 12,900 local Kaiser subscribers and an unknown number of their dependents will be affected by the rollback. Kaiser began notifying them of the change in mid-September. The company didn’t reach agreement with the California Department of Managed Health Care on the rates until August.Roughly 190,000 subscribers to health maintenance organizations and 240 point-of-service subscribers and an unknown number of dependents will be affected statewide.

The approximate value of the rate cut is $13.3 million for the HMO; it’s $40,800 for the other plan. HMO subscribers will get about $70 each and POS subscribers, $170 each, according to Kaiser spokesman John Nelson. The rollback saga began in April, when Kaiser filed a proposal to hike HMO rates for small employers by 10.7 percent, effective July 1. The POS rate hike was 12 percent, effective the same day.

A new law — Senate Bill 1163, approved last year and enacted Jan. 1 — requires health plans to file specific information with state regulators at least 60 days before they take effect.The problem for Kaiser is the law requires a rate evaluation by categories that include inpatient, outpatient, physician and other expenses. An integrated health system and health plan, Kaiser doesn’t track data like that.

DMHC officials asked for more information, which Kaiser supplied in June. Regulators balked at what appeared to be a 7.2 percent projected margin for Kaiser on the HMO business. Kaiser says the number falls to 0.6 percent when they subtract money spent on community benefits and the cost shift from un-reimbursed services provided under Medicare.

“That raised a lot of questions back and forth. It was clear we needed to do more to help the department understand our rate system and how and why we are different,” Nelson said.

That took time. Meanwhile, the proposed rates took effect July 1. In recognition that it’s going to take more time to resolve the issue, Kaiser agreed to a one-time rate cut of 1.2 percent, to an average of 9.5 percent for the HMO subscribers and an average of 10.8 percent for the POS subscribers. Employers who already began paying higher rates will get premium credits. The first will appear on November bills, but some won’t show up until December, Nelson said.

“What’s driving this is a new regulatory process and our commitment to work with the department,” Nelson said. “It’s a reduction in the rate increase — but there is still a rate increase.”

DMHC was able to get Kaiser to roll back rates using existing law, department spokeswoman Lynne Randolph said.

“DMHC requested Kaiser reduce its rates after reviewing the lack of data they provided to support its trends and Kaiser agreed,” she said in a prepared statement. “As a result, thousands of small businesses will benefit. In this economy, we must do all we can to help save money for these employers, many of whom are struggling to maintain health coverage for their workers.”

Profit return at Blue Shield

Blue Shield is passing out credits, not reducing rates, but the net effect is a little more money in employer and employee pockets. The plan’s decision is a voluntary move to make health care more affordable; it does not come in response to action by state regulators. The health plan is returning a total of $6.9 million to 2,049 businesses in the Sacramento region in a form of premium credits this month. The average amount is $3,300. Another $1.3 million will go to individual health plan members in the region, with an average premium credit of $90.

The payback is part of a pledge by Blue Shield to cap its profit margin at 2 percent of revenue and return any additional income to customers, health care providers and nonprofit organizations that provide health care to low-income Californians. The amount is based on premiums in May 2011; October bills reflect the credit, which is about 30 percent of one month’s premium. People who have dropped Blue Shield coverage lose out, however. The money is only paid out as a credit, company spokesman Steve Shivinsky said.

“We were very careful not to call it a rebate, but a credit, so people won’t think it’s cash,” he said. “Imagine logistically, if we sent checks.”

Owen Arnoff, whose company merged with Incompass Tax, Estate & Business Solutions in North Highlands and switched coverage to a new health plan, is miffed.

“I don’t understand why that would be, if I paid the annual premium like everybody else,” he said. “It’s like you have to stay with us in order to get whatever they call it. Are they really giving back? Not across the board.”

It’s not an inducement to renew, Shivinsky said. The credits were announced in June and the process took a while. Arnoff is not the only person who dropped the policy over the summer and won’t get a credit, though.

“It’s thousands and thousands of credits worth millions and millions of dollars,” Shivinsky said. “It’s not easy to give back money.”

Governor Brown Legislation/ Oct 20th event

2011-10-10T10:53:00.000-07:00

On Friday, Governor Brown signed Small Business California sponsored legislation SB 826[Leno]. This would place minimal fines on claims administrators who fail to report or provide inaccurate information to the Workers Compensation Information System. This is important because workers compensation policy is developed by information provided the WCIS. Initially, this bill was opposed by the California Chamber, California Manufacturers, the Joint Underwriting Association and the Coalition of Workers Compensation. We were able to eliminate their opposition, except for the Joint Powers Association. But, we were able to get the support of claims administrators.

Yesterday was the last day for the Governor to sign or veto bills. We are waiting to find out what happened on Sunday but we do know that SB 459[Corbett] was signed by the Governor. This bill will increase fines on employers who willfully and knowingly misclassify independent contractors. Small Business California applauds going after the underground economy because this is a big issue for small business, but we would like to see the state clarify the definition of independent contractors. EDD and IRS do not have the same definition and we think this should be clarified.

As you all know, the IRS established a 20 points list which helps to define an independent contractor (link below), but they do not say how many points must be followed to establish independent contractor status.

http://www.comptroller.ilstu.edu/downloads/20-factor-test-for-independent-contractors.pdf

Another supported bill we are watching closely is SB 469 [Vargus]. This bill will require super-stores over 90,000 square feet to do an economic study of the impacts to the community, including small businesses. We should hear the Governors position today.
October 20th is quickly approaching and if you haven’t done so already, please take the survey (link below).

http://travelers.qualtrics.com/SE/?SID=SV_eFkQd5KoG1Udv3S

Also, if you are in the Bay Area I hope you will attend the symposia at the Julia Morgan Ballroom in SF. (registration link below):

http://www.travelers.com/iwcm/Distribution/2011/09_September/Travelers_Institute_Invite/San%20Francisco%20Invite/invite4.htm

This event is being co-hosted by Travelers and Small Business California. We have added a section talking about big business working with small business and are pleased to have John Legnitto, from Recology, talking about what they are doing to help small businesses. Please take the survey and register now for this free event. We will also validate parking.

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

NLRB Posters/ AB29/Regulations

2011-10-07T08:53:00.000-07:00

The National Labor Relations Board has postponed the requirement for a posting of workers’ rights to unionize. Originally scheduled for Nov 14th, it has been delayed to January 31,2012. As the January date comes closer Small Business California will send you the information on where to get the required poster.

Yesterday, the Governor signed AB 29 setting up the Governor’s Office of Business and Economic Development. Small Business California was a strong supporter of this legislation as we believe the world’s eighth largest economy must have an office focused on bringing business and jobs to California. The Office of Business and Economic Development will replace in statute the current Governor Office of Economic Development, which was created by Executive Order. It appears that Joel Ayala will continue to be the Director.

As you know, regulations are a problem for California Small Business. Legislators and the Governor have committed to deal with this problem. Are you seeing any change in attitudes from regulators? Do you see enforcement increasing, decreasing or staying about the same? Have you been audited by a state agency and what were the results of that audit. I am particularly interested in whether you have seen a crack down on classification of independent contractors.

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

The White House Business Council / Social Security

2011-10-04T09:32:00.000-07:00

In mid-October, The White House will re-launch the jobs and economy section of the website. This section of the website will include an interactive map of the U.S. that will profile success stories and illustrate how they will directly benefit from the American Jobs Act. We are profiling two success stories from each state, and we need help in identifying candidates for the state of California.

They are always looking to highlight businesses that are expanding, investing in new ideas and investing in their communities by adding jobs and growing capacity. The best candidates are companies who are investing in their workers, hiring back those they had to lay off, using tax credits to offer health insurance and expanding opportunities through job training and education. The business must be under 500 employees and must be hiring on more people in the foreseeable future.

These stories may be highlighted on government websites (WhiteHouse.gov), in speeches by senior Administration officials and in reports to national leaders or the media.

Requirements

1) Company Name:

2) CEO Name:

3) Contact information (Phone number and email address):

4) Company Location:

5) Company Category (Manufacturing, Retail, Clean Energy, Start-up/Entrepreneur, Small business, Exporting, Jobs of the future, Rural, Veteran-owned: [Please feel free to pick more than one category]

6) Number of employees:

7) Projected number of jobs created over the next year:

8) Quote from CEO on why he/she is investing in their company/betting on their continued growth and success:

9) Company Story: 200 to 250 word short story. These stories should be embedded in the success of the CEO. We want individuals across the country to relate to business owners like yourself, but also understand why you are being highlighted over other businesses:

10) 2 High Resolution photos (CEO picture and 1 “in-action” picture):

Please let me know if you are interested and meet the requirements. On Friday, I spoke to a group of people on small business attitudes on retirement benefits. I indicated the problems, but they asked me an interesting question about how small business felt about Social Security. Please let me know your thoughts.

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

Media Release: CA Ranked in 'Top 10 Best States To Do Business'/ Alternate Energy

2011-09-29T10:26:00.000-07:00

We always hear talk about California being a bad place to do business. Well in one survey, California was ranked around 50th out of 50 states, which is just one ahead of Washington DC (who ranked 51st). Then, I see another report (below) that ranked California as being the top 10 states to do business. I don’t believe this just as much as I don’t believe we are 50th.

Ultimately, you need to look closely at the questions being asked.

If the questions revolve around regulations, taxes and cost of housing, California is going to end up on the bottom. If the questions revolve around climate, quality of life, entrepreneurism and R&D and our university system, California will come up at the top. I point this out so you are cautious when you hear the results of surveys ranking California’s business climate.

I also want to send a thank you all of you that responded to my question on alternate energy and solar. Naturally, the responses varied from strong support to “let the market decide”. However, the most common response was that we need to find ways to get off our dependency on oil and develop a long term strategy, which takes into account all alternate energy sources (including solar). Most of you said that the Solyndra situation was tragic, but it is just one loan. Many of you also pointed out that gasoline has been subsidized for years.

---------------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE CONTACT: Brook Taylor
Wednesday, September 28, 2011 (916) 322-0667

Governor’s Office of Economic Development Announces California Ranked in ‘Top 10 Best States to Do Business’

Sacramento Calif. – Governor’s Office of Economic Development Director Joel Ayala today said that Area Development magazine has ranked California as one of the top 10 best states to do business. The rankings are based on a nationwide survey of highly respected business location consultants.

“Despite all the negative rhetoric, the fact remains California is still the nationwide leader in high-tech, biotech, green, venture capital and agricultural job creation,” said Director Ayala. “California is also being recognized for its robust international trade activities which account for billions of dollars in revenue and contribute millions of jobs to the state.”

Area Development magazine noted that despite California being hit hard by the recession, California remains a global leader in international trade and access to global markets. In addition to California’s international trade advantages, Area Development noted that California is finding success through the state Innovation Hub (iHub) initiative which is administered by the California Governor’s Office of Economic Development (GoED).

The iHub initiative includes 12 state designated Innovation Hubs from Redding to San Diego which leverage assets such as research parks, technology incubators, universities, and federal laboratories to provide an innovation platform for startup companies, economic development organizations, business groups, and venture capitalists.

“The California iHub initiative is the largest state innovation program of its kind,” said GoED Deputy Director for Innovation and Emerging Technology, Louis Stewart. “The initiative began in 2010 with a small group and has since grown to an expansive statewide network of public and private partners focused on the commercialization of new products.”

The Governor’s Office of Economic Development (GoED) is the state’s the One-Stop-Shop for business retention and job creation. They offer a wide range of services that are targeted to business owners including: site selection, business incentives, permit streamlining, clearing regulatory hurdles, small business assistance, and more.

To learn more about GoED and the Innovation Hub Initiative: http://www.business.ca.gov/

For the complete Area Development Magazine rankings, http://www.areadevelopment.com/

Alternative Energy/ Small Business Survey/ Invitation to Luncheon Oct 20

2011-09-28T10:12:00.000-07:00

With the Solyndra debacle fresh in our minds and the solar industry coming under fire, I am curious how the small business community views the industry. Do you think it has been hyped as a job creator and the energy savings from solar have been overstated? Or do you think the alternative energy industry (specifically solar) is a necessity for US economy?
Again, I ask all of you to please complete the small business survey for the event Small Business California is doing with the Travelers Institute on October 20th. (Survey link is below)

http://travelers.qualtrics.com/SE/?SID=SV_eFkQd5KoG1Udv3S

It takes about five minutes. I will also be sending the results to Mike Rossi, the economic development Czar for the Governor. Thank you to all that have already taken the survey. We really appreciate your time and opinions.
I know that this email goes around the state but anyone interested in attending the luncheon Oct 20th is welcome to attend. I think we will reach capacity so I encourage you to register now. (Link to register is below)

http://www.travelers.com/iwcm/Distribution/2011/09_September/Travelers_Institute_Invite/San%20Francisco%20Invite/invite4.htm

There is no cost to attending this event and the panel for the event will include myself and:

- Marc Schmittlein, President and CEO of Travelers Select Accounts
- Christine Baker, Acting Director of the Department of Industrial Relations
- Elizabeth Echols, Regional Administrator SBA
- Regina Dick Endrizzi Director, SF Office of Small Business

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

Health Insurance

2011-09-22T08:33:00.000-07:00

Some amazing things are happening in the world of health insurance! Yesterday, I found out that my company, Cal Insurance, is getting a refund of 1.2% because Kaiser has put forth a policy of reducing rates 1.2% on policies that have renewed on or after July 1. I have also been told that Blue Shield is doing refunds as well. Policies with a lot of carriers are seeing single digit increases for the first time in years.

I am not sure the reason for this except that it may be the health legislation passed in March of 2010 that provided more oversight of health insurance carriers and it could also be that health insurance companies are taking a more active role in cost management. Have you seen these reductions?

As you know Small Business California surveys small businesses around the state to determine what are their most important issue. The cost of health insurance and availability of health insurance to sole proprietors has been the top issue for seven years running.

To see our survey go to www.smallbusinesscalifornia.org

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

Small Business Survey

2011-09-21T08:48:00.000-07:00

On October 20, Travelers Institute and Small Business California will be hosting a symposia to identify challenges facing small business. It will be at the Julia Morgan Ballroom in SF from 11:30 to 1:30pm. The panel for the event will include myself and the following:

- Marc Schmittlein, President and CEO of Travelers Select Accounts
- Christine Baker, Acting Director of the Department of Industrial Relations
- Elizabeth Echols, Regional Administrator SBA
- Regina Dick Endrizzi Director SF Office of Small Business

In preparation for the meeting could you take a few minutes and complete a Small Business Survey. See link below.

http://travelers.qualtrics.com/SE/?SID=SV_eFkQd5KoG1Udv3S

If you would like to attend the event please let me know by return email and I will send you invitation.

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

Senator Landrieu Comments on Appropriations Bill Funding for Small Business Administration/ Mike Rossi/ SB Cal

2011-09-19T09:46:00.000-07:00

Please see below press release from the US Senate Committee on Small Business and Entrepreneurship indicating that the Committee approved a bill giving the SBA $955 million in FY 2012. See details below.

Last Friday Lori and I met with Mike Rossi the Economic Development Czar for Governor Brown. It was an extraordinary meeting and I left with the expectation that we have a real good friend who is a straight shooter and very interested in helping California Small businesses. I think I can safely say he is a no nonsense person and is looking for concrete ideas that are doable. He wants to help us with On Bill Financing and was interested in learning more about our proposal to permit unrestricted general solicitation for offerings up to $1 million annually as long as all of the
investors are accredited investors. This is sanctioned by the SEC under Rule 504 which requires a state enabling statute.

Small Business California is looking for ways to increase revenue. For those of you that are members thank you but we need more of you to join so that we can pay our lobbyist Lori Kammerer and cover our ongoing expenses. None of our Board members including me do not receive any money from Small Business California and in fact some of us make large financial contributions. You can join by going to www.smallbusinesscalifornia.org

We are also considering charging people who are not members a fee for these emails. I hope you will agree that there are few if any organizations that provide this kind of information to small businesses. throughout the year. Do these emails have value to you. are considering $75 a year. What are your thoughts on this?

---------------------------------------------------------------------------------------

FOR IMMEDIATE RELEASE
September 16, 2011
Contact: Elle Ourso, (202) 224-5175

SENATOR LANDRIEU COMMENTS ON
APPROPRIATIONS BILL FUNDING FOR SMALL BUSINESS ADMINISTRATION
U.S. Senate Appropriations Full Committee Mark-Up appropriates $955.3 million to the SBA for Fiscal Year 2012.

WASHINGTON – United States Senate Committee on Small Business and Entrepreneurship Chair Mary L. Landrieu, D-La., today commented on the Senate Fiscal Year 2012 appropriations approved for the Small Business Administration (SBA). The committee- approved bill will give the SBA $955.3 million for Fiscal Year 2012.

“I think the small business community should feel good about the FY2012 funding approved yesterday in the Appropriations Committee for the SBA,” Senator Landrieu said. “Members on both sides of the aisle were able to come together and find the resources to fully fund the SBA’s two largest small business loan programs. We were able to protect the funding for contracting and counseling, and also to restore necessary operating funds to the SBA’s disaster loan program. I realize everyone would have liked an increase, and I personally wanted more for the SCORE program to leverage that volunteer counseling, but this is a strong level given the environment of cuts, and I think we will be able to give entrepreneurs the necessary tools to start a business, manage an existing one, or even grow and prosper in FY2012 with this funding.”

Highlights of the Financial Services Fiscal Year Appropriations for the SBA are as follows:

- Increases funding for 7(a) and 504 loans from $80 million in 2011 to $211.6 million for 2012, leveraging about $25 billion in loans, without raising fees.
- Protects SBA’s core counseling and contracting assistance programs from cuts by providing matching 2011 levels.
- Fully funds SBA’s Disaster loan program’s administrative funds at $167 million and protects the loan dollars so that SBA has the money and staff necessary to respond quickly when disaster strikes businesses or homeowners.
- Provides $2 million for the SBIR Federal and State Technology Program to help small, high-technology firms better compete for the billions in Federal research and development projects and transition technology that might otherwise die on lab shelves or in an entrepreneurs’ garage.

President Obama

2011-09-14T10:25:00.001-07:00

The Board of Small Business California will be meeting tomorrow and discussing President Obama’s Jobs proposal. What are your thoughts? Will it encourage you to hire a new employee or hold off releasing employees?

I assume most of you are aware that Speaker Perez bill AB 29 passed and is now on the Governor’s desk. This bill creates the Office of Business and Economic Development. I have been told the funding for the office is $800000. Seems like a very small amount for an economy that is the 8th largest in the world and compares unfavorably with Ohio’s that has a budget of over 14 million . Small Business California strongly supported this bill and testified in committee and while it appears to be underfunded we still feel it is important that California have this Office.

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

State Bank/ Legislative Session

2011-09-14T10:15:00.000-07:00

Please see email sent to Tom Campbell on AB 750. Small Business California has not taken a position on this and will discuss at our next Board meeting this week. What are your thoughts on a state bank. Is this a good idea and will it help small business or do you see this as another intrusion by government into the private sector?

The California legislative session closed late Friday night and bills that have passed both the Assembly and Senate now go to the Governor. He has 30 days to sign or veto.
Of note AB 29 passed creating the Office of Small Business Development. Also AB155 the Amazon bill was amended to delay collection of sales taxes by On Line out of state retailers until September 2012. The goal is to get a National policy of out of state On Line companies collecting sales tax for each state which would replace the California provision.

In President Obama’s speech he talked about reforming regulations in the Capital markets which would help small businesses. Small Business California’s capital access committee is working hard on this and looking to develop a policy proposal which would establish a small and medium size business Self Regulatory Organization to meet the needs of small and medium size business not just Wall Street. The President’s speech was encouraging showing his interest in addressing this problem.

(I am also including an email below from Michael Sauvante, Executive Director of the COMMONWEALTH GROUP for reference)

Scott Huge
Small Business California
415-680-2109

------------------------------------------------------------------------------------------
I have some news for you on a parallel front with respect to our SRO concept. It concerns a topic I was deeply involved in before I shifted focus to small business capital markets and securities regulations, as you will note at the end of this message from all the writing I did on the following topic.

In this case it concerns the idea of the state (of CA) forming its own bank (based on a North Dakota model) to address credit issues here in California. 14 or so states are now looking into this idea.

With respect to California, Assembly Bill AB 750* was introduced to authorize a group to study the idea. In spite of some original questions about it, recent momentum built unexpectedly quickly for the bill and AB750 not only came out of committee, but it has already been passed by both houses with strong bi-partisan support, and it is off to the governor for signature (who may need encouragement to sign it).

I am sending a copy of this message to Scott Hauge as well, as I believe it would be beneficial to get the SB Cal network involved and have the California small business community encourage the governor to sign it. Here is a link to do so.

The core of this bill is to authorize a blue-ribbon task force to investigate and study the pros and cons of the state of California establishing its own state owned bank, replicating the model of North Dakota. For over 80 years now, the Bank of North Dakota (BND) has served as a mini-Fed to that state and its community banks. It is noteworthy to point out that North Dakota has the healthiest economy in the country by far, and the only variable that can reasonably account for that (as compared to every state with similar economic conditions as North Dakota’s) is the presence of the state bank.

Here are two relevant articles on BND and how California might benefit from following their example.

“North Dakota’s Economic “Miracle”—It’s Not Oil” (which lays out the premise for a state owned bank and its economic benefit to the state) and “What a Public Bank Could Mean for California” (which talks about the above AB750 bill and applies the Bank of North Dakota model to California and why it would be beneficial to California and it economy).

Both of these articles were written by Ellen Brown, the nation’s chief proponent of public banking, like that demonstrated by North Dakota. She is the author of Web Of Debt and numerous articles about public banking. Ellen is also the Chairman and President of the Public Banking Institute, which is leading the effort to promote the concept of public banking here in the United States. I am on their advisory committee.

Tom, you will note in the first article that it makes reference to writings on this topic by one of your own Chapman University Law School professors, Prof. Tim Canova. Here is an article he wrote on the topic: The Public Option: The Case for Parallel Public Banking Institutions. I am sending him a copy of this message, as he may well also like to know about the SRO concept that we have discussed. If you are so inclined, perhaps he might like your thoughts on the merits of the SRO project.

It may also be of interest to you both that the PBI website contains a page that addresses a number of common misperceptions about the idea of publicly owned banks, including the common one that somehow such a bank would compete with private banks. With respect to the later assumption, the reality in North Dakota is that there “is a very strong public-private partnership that increases the profitability and stability of the local community banks”. Those common misperceptions and responses to them can be found here.

Finally, if you would like to explore more ideas on this whole concept of public banking (i.e. banks owned for public benefit by either government entities or non-profit organizations, or hybrids of both) see this section on my website entitled “An Evolution in Banking”.

As you will note from some of those writings, this idea is not limited to states. Counties might also jump on the idea and in fact, we have a group here in Santa Barbara county that is exploring the prospects of introducing that idea here in Santa Barbara County. We’re having a strategy meeting in Santa Maria this Monday to discuss it. I will keep you posted on the results.

Here are some relevant links to California’s bill. All AB750 documents and history can be found here:

http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0701-0750/ab_750_bill_20110815_amended_sen_v93.html.

Thanks and best regards,

Michael Sauvante
Executive Director
_________________

COMMONWEALTH GROUP

650-641-1246 office
805-757-1085 cell
Skype: michael.sauvante
email: sauvante@commonwealthgroup.net
bio: www.commonwealthgroup.net/sauvante
info on securities regulations:
www.commonwealthgroup.net/regulations

Retirement Plans/IBM Computer Equipment

2011-09-08T09:31:00.000-07:00

On September 30th, I will be part of a panel discussing small business retirement plans. There will be a discussion of the state sponsoring retirement savings plans for the private sector. I will be addressing the questions below:

“What are the barriers that make it difficult for you, as a small business, to offer a retirement plan to your employees?”

If the State of California were to sponsor a retirement savings plan for private sector workers whose employer does not offer a plan -- with no cost to taxpayers and low or no fees charged to employers -- would you be willing to participate by enrolling your employees and implementing payroll deduction? What plan features would be important to you as an employer?

I would like your comments if you are not currently providing a retirement Plan. IBM will be announcing today a program to provide $1 billion to small and medium size businesses for computer equipment. This will be in the form of loans but IBM is indicating that they will be much easier to obtain than through a bank. For more information go to:

www.allthingsd.com/author/arik/

It is interesting that in the article it says small and medium size businesses purchase $250 billion of computer equipment a year.

Scott Hauge
President
CAL Insurance and Associates,Inc.
2311 Taraval Street
San Francisco,CA 94116
www.cal-insure.com
Phone:(415)680-2109
Fax:(415)680-2137
"Always looking out for you"

Obama's Speech on Economy and Job Creation & UPDATE

2011-09-06T11:56:00.000-07:00

Thursday President Obama is going to give a major speech on the economy and job creation. I have been asked by a reporter from a syndicated columnist from the Business Journals about inputs from small business owners and experts for a preview of Obama ‘s jobs speech on Thursday.

The question was posed as “What do you want to hear President Obama say on Thursday night to address the nation’s persistently bad jobs picture?”

I need to get back to him Wednesday morning so if you have thoughts please respond today.

UPDATE >>>>>>>>>>>>

Thank you to all of you that responded to my question about what you would like to hear the President say in his speech. I received 175 responses. The most frequently cited comments were:
- To end the political stalemate between Republican and Democrats.
- You want the Government to get out of the way.
- A review of current lending policy which has stifled bank lending to small business
- Need hiring tax credits.
- A review of regulations at all levels of government.

There were a number of other great comments but these were the most frequently cited. Speaking of job creation, the latest ADP report showed large businesses with 500 employees or more added only 3,000 new employees, and medium-size businesses added 30,000 workers in August, while small businesses that employ fewer than 50 workers hired 58,000 new workers.

See: http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201108310844dowjonesdjonline000366&title=adpaugust-us-private-sector-jobs-+91k-vs-+100k-expected

Clearly if the economy is going to get out of its doldrums, small business will lead the way.

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

Susan Hall- Beloved Employee

2011-09-06T09:17:00.000-07:00

Last week I wrote that one of my employees died Wednesday night. Many of you asked about arrangements and where they might be able to make a contribution in her name. Please see email from her daughter. For those who knew her she was a special person and will be missed.

link: http://memorialwebsites.legacy.com/SusanHall/homepage.aspx

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

Mike Rossi & Tragic Employee Loss

2011-09-02T10:04:00.000-07:00

On September 16th Lori Kammerer and I will be meeting with Mike Rossi, the economic development Czar for the Governor. If you were to meet with him, what would you say the state should do to stimulate the economy and create jobs? Are your receipts increasing, decreasing or staying the same? Do you plan on hiring employees, cutting employees or stayed the same?

Yesterday morning, I received a call informing me that one of my key employees had died of a heart attack the day before. This was quite a shock because she had worked all day Wednesday and seemed fine. She was a person who worked well with all of our customers and the insurance companies we represent. She was here almost 16 years and is loved by all employees at CAL Insurance. I don’t know how many of you have experienced this situation, but it raises a whole lot of questions about what do you do when something like this happens. Here are some questions I have:

- How do you deal with your employees after this occurs?
- How do you let your customers know?
- How do you let your suppliers know?
- How do you work with the family?

Also, do you have the talent within your company to replace this person or are you going to have to go outside the company? If you have to go outside the company where do you find people to replace this person? Do you need to bring in someone on a temporary basis or can the existing employees pick up the slack? These are just a few of the issues I am facing but I think it illustrates part of the planning employers must do to prepare for such an occurrence.

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

Last word on Emergency plan and Fire Prevention plan

2011-08-31T15:14:00.000-07:00

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

2011-08-31T09:14:00.000-07:00

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

http://www.dir.ca.gov/title8/3220.html

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

Update! NLRB’s new posting requirement

2011-08-30T09:22:00.000-07:00

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

Final Rule for Notification of Employee Rights

2011-08-29T14:32:00.000-07:00

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

https://www.nlrb.gov/news-media/fact-sheets/final-rule-notification-employee-rights

Final Rule for Notification of Employee Rights

Background:

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

2011-08-29T08:36:00.000-07:00

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

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

2011-08-25T09:47:00.000-07:00

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

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

2011-08-24T08:33:00.000-07:00

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 https://www.surveymonkey.com/s/FN3BGTK.

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 (www.eeri.org). 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 https://www.surveymonkey.com/s/FN3BGTK. For more about the study, contact David Bonowitz, S.E. at dbonowitz@att.net.

David Bonowitz, S.E.
605A Baker Street
San Francisco, CA 94117
415-771-3227
dbonowitz@att.net

****

----------------------------------------------------------------------------

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 www.volunteersinmedicine.org

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 www.clinicbythebay.org

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

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

2011-08-22T10:19:00.000-07:00

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

2011-08-22T10:15:00.000-07:00

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 www.americanbanker.com

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

Independent Contractor

2011-08-22T10:08:00.000-07:00

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

http://www.forbes.com/sites/robertwood/2011/08/16/irs-narrows-independent-contractor-relief/

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

2011-08-22T09:58:00.000-07:00

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

FOR IMMEDIATE RELEASE: August 17, 2011
CONTACT: Treasury Public Affairs (202) 622-2960

THIRTY-SEVEN ADDITIONAL COMMUNITY BANKS ACROSS THE COUNTRY RECEIVE $418 MILLION TO HELP SMALL BUSINESSES ACCESS CAPITAL, CREATE NEW JOBS
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

Use Tax/ Hackers

2011-08-04T11:45:00.000-07:00

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 – Bloomberg.com

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:

http://www.bloomberg.com/news/2011-08-04/hackers-take-1-billion-a-year-from-company-accounts-banks-won-t-indemnify.html.

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

The National Debt/ Reporting tax fraud/ California State Agencies

2011-08-03T10:02:00.000-07:00

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
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@smallbusinesscalifornia.org
415-680-2188

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!

2011-08-01T11:10:00.000-07:00

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.

Thanks!
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?

Thoughts?

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

Hiring of Unemployed/ Lee Petillion

2011-07-28T09:05:00.000-07:00

Legislation has been introduced in Washington prohibiting employers from not hiring people who are not employed. Apparently there are a number of employers that are putting on their job information sheets that people should only apply if they are employed. New Jersey is the only state in the country at this time that prohibits this. As small business people how do you feel about this?

Lee Petillion has been elected to the Board of Small Business California. Lee is an attorney at Petillion Hiraide and Loomis with offices in LA and South Bay. He specializes in corporate financing for early and growth stages companies. He will be heading up the access to capital committee for Small Business California.

We are excited about having Lee on our Board as he has a great background in access to capital for small business. He also has experience in writing legislation to help small business and with his help Small Business California will be introducing legislation next year to help access capital.

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

FLASH: Getting Back To Basics

2011-07-22T13:28:00.000-07:00

I don’t usually send information this lengthy but workers compensation is a big issue for employers. See below.

Combined loss ratios in workers compensation are running close to 130% and for most businesses they are beginning to see small premium increases. My guess is at some point these will escalate fairly dramatically. We also are going to be watching what develops as a result of court cases that could increase cost.

The increase in permanent disability benefits has been a concern for employers and they do need to be adjusted. It is good to hear from our good friend Christine Baker that she wants to see cost reductions along with changes on the PD benefit.

As all of you I think know Small Business California has worked closely with Christine in her tenure as ED of the Commission on Health Safety and Workers Compensation and were an early supporter of her for the Director of DIR.

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

----------------------------------------------------------

Friday, July 22, 2011
FLASH REPORT!
DIR's Baker Says Cost Savings Will Accompany Any PD Increase

Share:
Employers have nothing to fear from an anticipated increase in permanent disability benefits for injured workers, but ancillary players in California's workers' comp system -- insurance carriers, attorneys and other vendors -- better look out.

Christine Baker, acting director of the Department of Industrial Relations (DIR), says the administration is ready to increase PD benefits but only after if finds cuts elsewhere in the system to pay for the increase.

"PD benefits were cut substantially but our system is still the fifth costliest system in the country. Somebody is getting all that money, but it's not the injured workers,"

Baker told a group of employers yesterday at the California Coalition on Workers' Compensation's annual meeting in Anaheim. "We believe we need to restore the balance in the system...that labor/management balance between the costs and the benefits."

She pointed out that PD benefits account for less than one-fifth of the total benefits paid,so an increase could easily be off-set by cost-savings elsewhere in the system.

"The very large fluctuations in the costs to employers and the benefits available to injured workers over the last 15 years are the result of many interest groups in a system originally designed to serve the two key stakeholders -- employers and injured workers," Baker pointed out. She noted that applicant attorneys, insurance carriers and medical providers should and will have a voice in the negotiations, but maintained that their voices are secondary.

"Applicant attorneys represent injured workers the same way that insurance carriers represent employers. So in the same way that insurance carriers should have a role so should the applicant attorneys. But the two key stakeholders are labor and management."

The message resonated with the employer dominated crowd, which is clearly on edge over potential changes in benefits as well as expected increase in premiums to account for past cost increases.

Baker maintains that there are different ways to address the PD issue.
If the administration can find enough cost-savings then a solution could be enacted through the PD schedule. "If we can't find enough things to off-set the costs then we have to do it legislatively," says Baker.

"That will be a tradeoff. Sure one could add dollars there, but can we find a dollar savings? I'm not sure. We don't want to have a tidal wave of costs coming in to the system without a measure of savings."

Operational Savings

One of the first areas mentioned for likely cost savings is eliminating the high direct and indirect cost of medical liens.

Baker pointed out that the backlog of liens is the system is delaying resolution of cases and adding unnecessarily to the overall cost of claims. She says the Workers' Compensation Appeals Board doesn't necessarily need more judges to hear cases, just a better way to triage cases.

"In Los Angeles, 85% of the work load is liens. The answer there is not more judges, it's eliminating the unnecessary liens," she says, maintaining that the long-term solution is to reduce the disputes that lead to liens.

"There has to be a better way to resolve fee schedule disputes than asking a workers' comp judge to decipher procedure codes and conversion factors...Authorization of treatment was in dispute in 7 out of 10 medical liens surveyed. Clarifying the extent of [Medical Provider Network] control could reduce the number of those disputes."

DIR and the WCAB are also preparing to cut down on the amount of paperwork associated with liens through electronic filing and cracking down on the filing of amended liens. Baker likened the amount of paperwork from amended liens alone to a tidal wave crashing down on the district offices. She promised that new procedures will be coming shortly from the WCAB to enact these changes.

Operational Changes Planned

Baker also promised to streamline DIR's internal operations while continuing beneficial programs, such as its crackdown on the underground economy. She indicated that there will also be changes in how anti-fraud dollars are spent.

"I'm not so sure it's so efficient to have enforcement dollars going to the DAs and labor standards enforcement. We will be reviewing this together with the [Department of Insurance] and the Fraud Assessment Commission," Baker said.

She later clarified to Workers' Comp Executive that she is not necessarily looking at eliminating anti-fraud funds for the District Attorney's but for a greater emphasis on the bigger fraud cases.

She notes that the data matching program between DIR and the Workers' Compensation Insurance Rating Bureau, which will be undergoing some refinements, allows the department to quickly and cheaply identify uninsured employers. DAs, she maintains, should be using the funds to go after the higher fruit on the tree.

One planned change to the data matching program will be to limit the employer samples to those with at least 5 employees. Baker noted that currently the approach of using employer lists from Employment Development Department and WCIRB that cover all employers is producing too many false positives.

It turns out that many of the employers initially identified as being uninsured are actually owner operators and thus exempt from coverage, so setting the bar at five employees or more is intended to better focus their efforts on the truly uninsured.

Filed by Brad Cain from the happiest place on earth

Amazon Ballot Measure

2011-07-20T10:05:00.000-07:00

Small Business California has been a strong supporter of requiring Amazon to collect sales tax. We feel that our brick and mortar stores deserve to be on a level playing field with out of state Internet companies. It is a simple fairness issue.

Amazon is in the process of circulating a petition to put this on the ballot. See below the wording of this. It will take about 505,000 signatures to put this on the ballot June 2012.

I don’t know if we can prevent this from getting on the ballot as Amazon has a lot of money to pay for signatures. I do think however we should be talking to our employees, customers and friends about this asking them not to sign.

Even if we fail we will have laid the groundwork to defeat the measure when it comes up on the ballot. What do you think?

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

The Attorney General of California has prepared the following title and summary of the chief purpose and points of the proposed measure:

REFERENDUM TO OVERTURN LAW REQUIRING INTERNET RETAILERS TO COLLECT SAME SALES OR USE TAXES AS OTHER RETAILERS.

If signed by the required number of registered voters and filed with the Secretary of State, this petition will place on the statewide ballot a challenge to an existing state law. The law must be approved by voters at the next statewide election to remain in effect. The law expands the definition of retailers
considered “engaged in business” in California to include certain Internet retailers selling toCalifornia consumers, so that out-of-state Internet retailers also collect existing sales or use taxes. (11-0019)

2011-07-19T15:22:00.000-07:00

The results of our survey are a follows.
When small businesses were asked about what they are thinking about the future of their business.
1. 32 said they would move out of state
2. 63 said they wouldn’t move
3. 32 said they would move if they could but my type of business can’t
4. 20 said they plan on moving

San Francisco is implementing a new registration fee for Point of Sale Stations. As I understand it this was authorized by the state for local jurisdictions. Are any of you seeing this from your Cities or Counties.
If you have not seen this it might be coming. See letter from SF below. Click on the letter to enlarge the document.

For those of you in SF were you aware of this?

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

Doing Business In California

2011-07-18T15:46:00.000-07:00

We hear consistently California is a difficult place to do business. I would like to know your answers to the following questions about your business.

I would appreciate your answering the following questions.

1 I would move out of state if I could
2. I wouldn't move
3. I would move if I could but my type of business can’t
4. I plan on moving.

Comments

Small Business California may do a press release on this so I would appreciate as many responses as possible. All responses will be confidential.

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

Moving On to the Next Big Thing

2011-07-15T15:52:00.000-07:00

Many of you know Marty. Please note he is leaving but I thought you would find his accomplishments interesting.

Marty we wish you well.

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

------------------------------------------------------------

From: Marty Keller [mailto:Marty.Keller@OPR.CA.GOV]

Subject: Moving On to the Next Big Thing

Dear friends and colleagues,

It is with a sense of accomplishment and gratitude that I write to let you know of my decision to resign as the state’s Small Business Advocate effective July 31, 2011.

I am leaving this great job in order to work directly for small business owners. Come the beginning of August, I will be embarking on a different course of advocacy, one that will not be shackled by the restrictions of political appointment. I look forward to sharing the details of this new and exciting adventure in two weeks’ time. You can be sure I will be inviting you to join me.

In the meantime I want you to know how much it has been my privilege over the past four years to serve California’s 3.5 million small business owners as their principal advocate in state government. In this capacity I was happy to advocate on behalf of our state’s thousands of Disabled Veteran Business Enterprise (DVBE) owners as well.

For most of that time the office comprised just me and Michael Gonzalez as my deputy—and Michael has been gone for almost a year. The disparity between our meager resources and the sheer number of small businesses was extremely daunting, and became more so when the financial system collapsed in 2008. In order to accomplish anything of value we had to build and empower a “network of networks” to leverage the immense talents and insights of all those committed to the central contribution of small business to a strong, vibrant, and innovation-centric state economy.

And so from the beginning of my tenure I was able to rely on hundreds of business owners, association leaders, government officials, and technical support professionals, not just in California but across the country. Together we accomplished a number of useful and powerful results that, especially in light of the financial downturn and the current sluggish and fitful rebound, offer our state’s small businesses and DVBEs some tools for profitability and expansion.

• Governor’s Conferences on Small Business: We produced two highly successful Governor’s Conferences on Small Business & Entrepreneurship—the first in Los Angeles in November of 2008 and the second in Oakland in May of 2010. These conferences provided amazing connectivity to information and decision-making not only for those who attended but for the networks to which we all belong. That first conference produced a collaborative list of eleven recommendations to state officials for improving the small business climate; more than 2/3 of them have been implemented partially or completely.

• The Small Business Network: We created an information distribution network, one that regularly sends our items of interest to small business owners and supporters, which are in turn forwarded to greater numbers through network connectivity.

• Small Business Website: We created the state’s first small business website, initially through the Governor’s Office of Planning and Research, where OSBA statutorily resides, and then after April of 2010 through the Governor’s Office of Economic Development. We created a centralized small business/DVBE events calendar on the GOED web page.

• Interagency working group: We initiated an interagency working group which, meeting bi-weekly, provides every agency of state government with a small business mission the opportunity to share information and create collaborations to benefit small businesses.

• Small Business/DVBE Procurement Goals: I had the privilege of working with the state’s 250+ small business/DVBE advocates, thorough professionals dedicated to helping small businesses and disabled vet business owners do business with their particular state departments. During my four years the state has managed on average to place 25% of its procurement with small businesses, and has steadily increased its DVBE placement to just shy of the statutorily-mandated 3%.

• Outreach Programs: We partnered with the state’s remarkable Small Business Development Centers (SBDCs) and Business Matchmaking to sponsor ten outreach events both last year and in the current year, to bring to the far reaches of the state the kind of information and networking offered at the Governor’s Conferences.

• Legislation: We worked on legislation to make it easier for small businesses to succeed in California. AB 31 by Sen. Curren Price expanded procurement opportunities, and last year’s budget brought significant money to our SBDCs and various small business loan programs. My greatest disappointment is the total refusal by the legislature to effect meaningful regulatory and tax reform.

• Small Business Ombudsman: While working on these big picture items, we also worked daily with individual small business owners, connecting them to resources or potential collaborators, collecting unpaid bills from the state, helping them deal with officious bureaucrats, and giving them advice on how to solve their particular problems.

All in all, I believe we made state government a better partner for small businesses than it was when I got here.

But we have still a long way to go.

Small businesses are still, by and large, patronized rather than vigorously supported by our state leadership. While legislators love to give speeches about the importance of small businesses to our economy, they continue to impose onerous and/or petty mandates, while blocking effective reforms. This neglect is no longer sustainable.

In closing, I want to thank every small business owner that I have been privileged to work with, and the leaders of the various small business advocacy organizations across the state, along with my colleagues in local, state, and federal governments. You have shown me universal kindness in our dealings together, and you have put up with all my shortcomings with great forbearance. I look forward to continued collaboration.

Although the economy is tough now, and signs continue to suggest a long slog to recovery, I remain confident that the next wave of prosperity will exceed the expectations of most of us. The explosion of creative ideas, universally supported by the amazing tools and low costs of the network, and proceeding from the new era of abundance that the elimination of bottlenecks that the Internet has facilitated, means that in the near future everyone will be a potential entrepreneur.

We are Californians. “Grateful to almighty God for our freedom,” as we say in the preamble to our constitution, we created our government “in order to secure and perpetuate freedom’s blessings.” It is now up to us to ensure that government does this job we set for it, and stops overstepping its bounds. See you in August.

Yours for an abundant and profitable future,

Marty Keller
Director, Office of Small Business Advocate

Consultants/Health Reimbursemetn Accounts in San Francisco

2011-07-13T16:23:00.000-07:00

I have heard complaints from small business owners about consultants. As most of you know many consultants are not licensed and there really is no oversight of their activities. It has been suggested to me actually by a consultant that these people obtain some form of licensing provided by the state.

Have you had problems with consultants?

What were they doing for you?

Do you think there should be some form of state oversight?

For those of you in San Francisco Thursday at 10 in the GAO committee there will be a hearing on legislation by David Campos requiring businesses with 20 or more employees to pay I believe quarterly into their Health Reimbursement Account at the prescribed $1.36 per hour or $2.07. But it is estimated the cost for businesses affected is about $50 million. While the Economic Report is not yet completed we are being given indications this cost about 1000 jobs.

It will be in either room 250 or 278 at City Hall. It is expected labor will have a big turnout for this.

For those interested I encourage you to attend. If you have any questions please let me know.

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

Bank of America/ SB Cal seeking new Board member

2011-07-05T09:31:00.000-07:00

I previously sent an email on Bank of America increasing their interest rate on late payments to nearly 30%. In the interest of fairness please find response by B of A to Kurt Chilcott a CDC lender who is a member of Small Business California.

Small Business California is looking for a new board member in the San Diego area. If you or someone you know is interested please let me know. The ideal board member would have a knowledge of the small business community in San Diego and a desire to shape small business policy in Sacramento and Washington.

Hope you had a great 4th.

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

On June 25, new guidelines for consumer cards went into effect; customers were notified of these changes in April. If a customer is late with a payment, an interest rate increase is possible. Please note that last word. The bank would first review the account to determine if it is appropriate to raise the rate on future transactions. If there is a penalty for late payments, the maximum the new rate could be is 29.99%, and the customer would be notified at least 45 days in advance. Again, this is for consumer cards, and please note that most other major issuers already had a penalty rate. We also constantly work with our customers to help them understand and manage their accounts, using such tools as free automatic alerts for payment due dates.

As for small business cards, Bank of America eliminated many punitive fees and practices last year:
o Unlike most other issuers, we no longer charge over-limit fees.
o We no longer increase APRs on existing balances.
o We allocate payments above the minimum payment to higher-rate balances first.
o We provide a minimum of 25 days from statement closing date to payment due date.

Also, here is the link to the release last month on our new Small Business Charge Cards: http://mediaroom.bankofamerica.com/phoenix.zhtml?c=234503&p=irol-newsArticle&ID=1563962&highlight=

Kurt, thanks again for keeping us informed of talk out in the field. Hopefully this information will improve others’ understanding, and please let me know if I can provide anything else.

Enjoy the 4th!

Susan
Susan Povak | SVP/CSR National Program Manager | Community Affairs
Bank of America 100 Federal Street MA5-100-10-09 Boston MA 617.434.7333

2011-07-01T09:15:00.000-07:00

Please see below changes in IRS Gas Mileage Rate and Sales Tax rates effective July 1. Thanks to our member Burr Pilger and Mayer for sending this.

The year is half over. Small Business California has been active this year in Sacramento and Washington. We have become a go to organization in Sacramento for legislators looking to pass legislation that helps small business.

Our lobbyist Lori Kammerer has testified on dozens of bills and usually is the only representative from the small business community.

We are sponsoring two bills [Buy California and Claims Administrator Reporting of Workers Compensation claims] and have gotten amendments on numerous bills. We also have been a major force in having out of state Internet companies collect sales tax on purchases.

Hank Ryan has continued to expand On Bill Financing in California and is working to expand small business use of energy efficiency vehicles. He frequently gives comments to the CPUC and over the last 6 months SB Cal has met with two CPUC Commissioners and many staff members.

In Washington we were a player in repeal of the 1099 requirement and getting a continuing resolution for the Small Business Innovative Research program.

We continue to be a resource for the media around the country. We provide comments regarding small business positions but more importantly we give them small business owners they can talk to. In the last couple of days our members have talked to the LA Times, SF Chronicle and the Sacramento Business Journal.

If you haven’t joined Small Business California I hope you will consider doing so. The cost is $150 for businesses with less than $1 million receipts and $300 for those $1 million or more.

You can join on line by going to: www.smallbusinesscalifornia.org

Have a great 4th of July weekend!

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

Beginning July 1, 2011, Two Changes Set to Take Place

IRS Increases Mileage Rate to 55.5 Cents Per Mile

Due to recent increases in the price of fuel, the IRS has revised the optional standard mileage rates for computing the deductible costs of operating an automobile for business, medical, or moving expense purposes and for determining the reimbursed amount of these expenses that is deemed substantiated.

The revised standard mileage rates are:

• 55.5 cents per mile for business use of an automobile.
• 23.5 cents for use of an automobile as a medical or moving expense.
• For automobile use as a charitable contribution, the mileage rate is fixed by statute and will remain at 14 cents.

These revised rates will become effective for mileage allowances that are paid both (1) to an employee on or after July 1, 2011, and (2) for transportation expenses an employee pays or incurs on or after July 1, 2011.

State Reduces Sales Tax Beginning July 1, 2011

Sales tax rates in the State of California will be reduced on July 1, 2011, by 1% due to the expiration of the temporary extension put in place by then Governor Schwarzenegger. The new effective rate for San Francisco will be 8.5%. In Oakland, the new rate will be 8.75%.

For other jurisdictions, see the pdf published by the State Board of Equalization:

http://www.boe.ca.gov/sutax/pdf/Pending_Rates-07-11.pdf

If you have further questions, please contact your BPM advisor or email us at bpm@bpmcpa.com.