FYI. Small Business California appreciates Administrator Mills support of repeal. We however want a total repeal not just businesses under 25 employees as Senator Nelson's bill indicated.

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


News Release

PRESS OFFICE - November 22, 2010 Contact: Haley Meadven (202) 205-6948

Number: 10-67

Internet Address: http://www.sba.gov/news

SBA Backs Repeal of ‘Burdensome’1099 Reporting Requirements on Small Business Transactions

WASHINGTON – In an open letter to small business owners, SBA Administrator Karen Mills described requirements that small businesses report all transactions greater than $600 as “burdensome,” and called for their repeal. Mills said the reporting requirements in the Affordable Care Act, which were to have begun in 2012, add up to “too much paperwork, too much filing.”

The text of the letter, which is posted on the SBA Website at http://www.sba.gov/1099letter/, follows:

Dear Small Business Owner,

I’m writing to update you on the progress that we have made regarding concerns stemming from the expanded 1099 reporting requirement in the Affordable Care Act, which could affect small businesses starting with 2012 purchases and 2013 filings.

The SBA and the Administration support the Small Business Paperwork Relief Act (introduced by Senator Baucus) which would repeal this provision.

As President Obama said on Nov. 3: “… the 1099 provision in the health care bill appears to be too burdensome for small businesses. It just involves too much paperwork, too much filing. It’s probably counterproductive.” Our support for the Small Business Paperwork Relief Act also follows the Administration’s support in September for Senate Amendment 4595 (offered by Senator Bill Nelson), which would have relaxed the reporting requirement.

All businesses that pay another individual or business $600 or more for goods or services starting in 2012 will be required to issue 1099s. The unintended consequence of a potential paperwork burden resulting from this provision quickly came to light, and we immediately began working across the Administration to reduce the burden of these potential future reporting requirements, as I noted in a letter to small businesses in May.

We gathered feedback and comments from the small business community through roundtables, forums, and other feedback mechanisms involving outreach from the SBA, the Treasury Department, the I.R.S. and others.

Importantly, the repeal of this provision through the Small Business Paperwork Relief Act will not adversely affect the Affordable Care Act, which provides important health care benefits to millions of Americans. Small businesses are already taking advantage of the new tax credits for providing health insurance to employees this year, and future benefits such as the insurance exchanges in 2013 will provide small businesses with more negotiating power and reduced administrative costs.

Thank you for the input and feedback that many of you have provided on the impact that the expanded 1099 reporting requirement could have on your business. Overall, with your help, we will continue to ensure that America’s entrepreneurs and small business owners operate in an environment not burdened by excessive regulation, allowing you to continue doing what you do best: grow businesses, create jobs and lead America’s economic recovery.

Sincerely,
Karen Mills
SBA Administrator

Helping small businesses prosper

Small Business California has been contacted by Assemblymember Mike Feuer’s office for things his office can do to help small businesses in California. Please give me your thoughts.

See below email I received.

Scott,

Assemblymember Feuer is very interested in the views of your member business owners regarding what the Legislature can do to help small businesses grow and prosper. We believe the success of small businesses is essential to California's economic recovery and want to identify burdensome rules, regulations, and/or paperwork that create challenges for small businesses but that provide little or no value in terms of broader societal benefits. The more specific your members' ideas, the better.

Obviously, we are committed to maintaining laws that provide strong consumer, worker, and environmental protections. But not every rule or regulation serves such a significant purpose. It is important to contrast what is merely bureaucratic with what is essential during these challenging economic times.

It would also be helpful to get the views of your members on what they think the state can do to provide greater affirmative assistance to small businesses. For example, Mr. Feuer was very displeased to read a news account of the plight of a California business which needed, but couldn't get, help navigating processes to compete for federal funding made available to combat the recession.

Clearly the state has very little, if any, funding for any new program, but we could potentially consider reallocating money from existing services. In any event, it would be good to know your views on what programs or services best meet the needs of California small businesses. We look forward to your feedback.
Thank you.

David Stammerjohan
Legislative Director
Office of Assemblymember Mike Feuer
Ph: (916) 319-2042
Fax (916) 319-2142

The 1099 issue will be coming up in the Senate Nov 29th at 6:30.


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

FLASH: POIZNER: No Pure Premium Rate Increase For 2011

This just in.

The Insurance Commissioner has denied any workers compensation pure loss rate increase. The insurance companies don’t have to accept this and many of the companies have filed their rates for January 1. Most are relatively small with State Fund asking for a little over 5%. See below.

The 1099 issue continues to percolate in Washington. It appears there will have to be an offset of the $17 to $19 billion and this is where the legislation to repeal could come into trouble.

There should be more details next week.

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



Friday, November 19, 2010

FLASH REPORT!

'NO RATE INCREASE!' SAYS POIZNER Share:

California Insurance Commissioner Steve Poizner has abjectly denied any increase in the workers' comp pure premium rate. This is despite a request for a 27.7% increase from the privately owned Workers' Compensation Insurance Rating Bureau of California.
Saying that workers' comp is like a tax on employers and that the 2004 reforms have not been fully implemented Poizner also acknowledged medical cost inflation and other cost drivers but says carriers have not done enough to control costs.

Poizner also said that he has asked WCIRB to provide more data as to the profitability of carriers and that this should be part of any increase rate consideration. Compline filed a report showing that the industry was profitable in 2009 despite the $1.5B estimated underwriting loss the WCIRB provided, of which State Fund was nearly half. State Fund also represented over 1/3 of the profits carriers had in the line for 2009.

Workers' Comp Executive will have a broader news and analysis story on Monday.

www.wcexec.com

Baucus proposal is full repeal

Good news. I have just received a copy of S3946 the Small Business Paperwork Relief Act.

This is the Senator Baucus bill that repeals the requirement of filing 1099s on all transactions over $600. I am pleased to tell you this is a full repeal and does not include any additional offsets to make up for the projected $17 billion revenues the Congressional Budget Office said the filings would generate.

In a conversation this morning with Senator Feinstein’s office I was told the Senator has been very clear she supports a repeal of the 1099 provision but he had not talked to her about the specifics of the Baucus bill. Senator Boxer has also told me she supports repeal but I have not talked to her office about the specifics of the Baucus bill.

Small Business California is pushing hard for this to get passed in the lame duck session.

See bill below.

See legislative text here: http://bit.ly/bVeyUc

Another bit of good news a new amendment was put forth Monday that allows small businesses to switch carriers and retain their Grandfathered status. Previously under the health bill this change of carriers would mean the loss of grandfathered status.


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

1099 repeal/ Dr Winslow Sargeant

On Firday, Senator Max Baucus introduced legislation to repeal the filing of 1099s on transactions over $600. It is not clear the details but it appears to be a full repeal. Small Business California and the National Small Business Association will be closely watching this and supporting full repeal.

As this email goes to Senator Feinstein and Senator Boxers office we ask whether the Senators will support this bill. I will let all of you know their responses.

Friday I met with Dr Winslow Sargeant head of SBA Office of Advocacy. We talked about the study of bank lending and he assured me this is in process. Dr Sargeant is going to take a lot of heat on this and therefore he will need the support of small businesses and associations representing small business from around the country.

We also talked about the 1099 issue and he clearly understands the problem.

Please see below article written by a past Small Business Advocate Tom Sullivan. Dr Sargeant has only been in his position a few months but he has already been in the forefront getting the voice of small business out. His regulatory study showing that small businesses pay significantly more than larger companies to comply with regulations will be extremely helpful when we talk to our legislators.

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



Small Business, Their Watchdog, and a New Congress

By Tom Sullivan

Small business is a hot topic in Washington. In September, Congress created a $30 billion small business lending program intended to jump-start business expansion. Republicans and Democrats then left Washington and campaigned on how their respective approaches would help small business. Finally, 80% of the pro small business candidates endorsed by the National Federation of Independent Business (NFIB) won their elections.

While candidates were telling voters how they would fight for small business, the Chief Counsel for Advocacy at the U.S. Small Business Administration (SBA) was already engaged in battle. Dr. Winslow Sargeant’s first 3-months as the federal government’s small business watchdog tells a story that the new Congress will certainly want to hear.

The Chief Counsel for Advocacy is responsible for advocating for small business, even when the beliefs of the small business community are at odds with the White House. The power to independently represent the views of entrepreneurs is manifested through the Office of Advocacy’s research papers and through public comments submitted to agencies on how regulations can be tailored to minimize costs on small firms while maximizing their regulatory intentions.

The day Dr. Winslow Sargeant was sworn in, he sent a letter to the U.S. Environmental Protection Agency (EPA) critical of how the agency is using the Clean Air Act to regulate small business. A few weeks later, Dr. Sargeant hosted an all-day conference on how agencies must carefully consider their impacts on small business before imposing federal mandates. President Obama’s top regulatory official, Cass Sunstein, reinforced the value of Dr. Sargeant’s work during his luncheon talk at the event.

On the same day as the Office of Advocacy’s conference, Dr. Sargeant released a report showing the disproportionate cost of regulation on small business. The research, conducted by Nicole Crain and W. Mark Crain, documents the shocking reality of our regulatory system. The total cost of complying with federal regulations is over $1.75 trillion. With small business shouldering costs 36% more than their larger business competitors, the burden amounts to $15,586 per household. That is more than the one and a half times what households pay for medical treatments. Most alarming, is the fact that in the four years studied, the cost of complying with federal regulations rose faster than the per-household cost of medical care.

The study on how federal mandates impact small business is impressive in itself. Since September, Dr. Sargeant’s research team issued three other reports, ranging from a summary of small business factoids, to a historical sketch of small business and economic development dating back to 1953. The study on how federal mandates impact small firms is the highlight of Dr. Sargeant’s short tenure. Not only did the Office of Advocacy release a report that shows, in stark terms, the depth of the regulatory problem, his team is doing something about it.

In his first 63 days as Chief Counsel, Dr. Sargeant signed 7 public comment letters that hold federal agencies accountable for their impact on small business. The letters, sent to EPA, the Department of Health and Human Services, the Occupational Safety and Health Administration, the Department of Education, and the Department of Labor amplify the concerns of small businesses that are struggling to keep up with rules and regulations flowing out of Washington.

Dr. Sargeant’s efforts show how his office is listening to small business and the elections last week served as a wake-up call to politicians who may not have heeded the same advice. Congressional committees will likely echo that wake-up call and demand that agencies search for ways to improve workplace safety, environmental protection, and access to credit without burying entrepreneurs under mountains of paperwork and regulatory costs. Those are the same demands coming from Dr. Winslow Sargeant and SBA’s Office of Advocacy.

The call for agencies to lighten the burden of federal mandates on small business is the consistent plea from SBA’s Office of Advocacy. That message becomes even more powerful when amplified by Congress. Dr. Winslow Sargeant’s first few months as Chief Counsel for Advocacy provide him with a track record that tells the new Congress they have a friend inside the federal government when it comes to helping small business.

Tom Sullivan is an attorney with the law firm of Nelson Mullins Riley & Scarborough where he runs the Small Business Coalition for Regulatory Relief. He served as Chief Counsel for Advocacy from 2002-2008.

1099s/Meeting with Director of Advocacy at SBA/ Clinic by the Bay

Small Business California continues to work on repeal of the 1099 requirement that was incorporated in the Health bill passed in March. This as you recall will requires businesses to file 1099s on transactions over $600.

We were particularly pleased to see President Obama say last week that he would like to work with Republicans on changing this provision.

Small Business California sent an email today to Michael Bernich to deliver to the Governor elects people requesting that the Governor focus on getting access to capital to small business. There is a unique opportunity for Jerry Brown with the passage of the Small Business Jobs bill and the trailer bill passed by the legislature and signed by Governor Schwarzenegger to help small businesses in this area. We requested that the Governor convene a meeting with lenders and Karen Mills the SBA Administrator to discuss strategies on how this money can best be used.

We also requested that the Governor work closely with the Small Business Development Centers around the state to outreach to lenders and small business borrowers letting them know about the availability of this money.

On Friday I will be meeting with Winslow Sargeant the Director of the SBA Office of Advocacy. As I have mentioned before Small Business California has requested that he do a report on how banks especially big banks like Bank of America are lending to small businesses. He has assured me that he is in the process of doing this.

Small Business California has also asked that he look into why the SBA has not designated a person to meet the requirements required under the energy bills of 2005 and 2007. These bills required the SBA to work with government agencies in developing energy policies that will help small business. One policy mentioned in the energy bill of 2007 was assistance in developing On Bill Financing around the country. As you all know Small Business California brought On Bill Financing to California.

Saving the best for last today is the formal grand opening of Clinic by the Bay. We will be doing our celebration at 10:30 this morning. Our guest will be Senator Feinstein and Congresswoman Jackie Speier. We will be joined by a couple of friends and neighbors[patients] who have used our services.

See link to article that was on the front page of the Chronicle this morning.


http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/11/09/MNB31G3J39.DTL




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

On Bill Financing/ Governors Race

Small businesses need access to capital in all Investor Owned Utilities service territories. On Bill Financing which Small Business California has brought to California is one way IOU’s can get capital to small businesses for energy retrofits.

This program allows small businesses to retrofit their businesses to reduce energy use and cost and it is paid for by a 0% loan from the utility.

According to Hank Ryan our Executive Director the results to date for the three IOU’s are:

San Diego Gas has over 450 OBF loans with only 3 defaults. Southern California Edison has since July1 booked over $1.5 in small business OBF projects. As of now according to the CPUC PG&E has 10 OBF loans in the hopper but none to small business.

PG&E clearly needs to do better and kudos to San Diego Gas.

On Tuesday after the election I will be talking to some reporters who want to know what small business thinks of the results of the Governors race.

Please give me your thoughts if Jerry Brown wins and conversely if Meg Whitman wins.

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

Small Business California Recognize by NAGGL/ 2005/2007 Energy Bill

On Wednesday Small Business California and I were honored to receive the 2010 Distinguished Service award at the annual convention of the National Association of Government Guaranteed Lenders. The recognition was for our work in getting the Small Business Jobs bill passed.

Small Business California is proud to be a partner with NAGGL and they are also to be thanked for their efforts in getting the bill passed.

Small businesses around the country owe them a debt of gratitude for their tireless efforts on our behalf. A special thank you is extended to Tony Wilkinson the Executive Director of NAGGL and Tom Cator NAGGL’s lobbyist in Washington.

In previous emails I have mentioned that the SBA has not met its obligations required under the energy bills of 2005 and 2007.

See below what the bills required. Small Business California has requested Dr Winslow Sargeant the director of the Office of Advocacy to look into this matter. Small businesses around the country deserve better and we will continue to push for the SBA to obey the law.



EISA 2007

• Required the U.S. Small Business Administration (SBA) to implement a government-wide program, built on the ENERGY STAR Small Business program, to help small businesses (a) become more energy efficient, (b) understand the potential cost savings from improved energy efficiency, and (c) identify financing options for energy-efficiency upgrades.

EPACT 2005

• Required the U.S. Small Business Administration (SBA), in consultation with the DOE and EPA, to implement a government-wide program, built on the ENERGY STAR Small Business program, to help small businesses: (a) become more energy efficient, (b) understand the potential cost savings from improved energy efficiency, and (c) identify financing options for energy-efficiency upgrades;

• Required the DOE to convene an organizational conference for the purpose of establishing an ongoing, self-sustaining national public energy and energy-efficiency education program, examining the interrelationship between energy and its role in the economy and on the environment; and

• Required the SBA to establish a Small Business Energy Efficiency Program through select Small Business Development Centers (SBDC)—through this provision, an SBDC would have been eligible, consistent with State public utility regulations, to act as a “facilitator” for on-bill financing agreements between small businesses, electric utilities, lenders, and the Administration;

• Rendered plant projects that reduce the borrower’s energy consumption by at least 10 percent or that generate renewable energy or renewable fuels, such as ethanol, eligible for 504 loans and increased the maximum debenture to $4 million;

• Expanded the list of permissible uses for Express Loans to include renewable energy and energy efficiency improvements;

• Established a pilot program for reduced 7(a) fees for the purchase of energy-efficient technologies;

• Created a telecommuting pilot program at the SBA aimed at education and outreach;

• Created a priority status within the Small Business Innovation Research and Small Business Technology Transfer programs for small-business concerns participating in energy efficiency or renewable energy research and development projects; and

• Authorized Small Business Investment Companies to issue a new class of debentures, called Energy Saving debentures, for small businesses primarily engaged in the researching, manufacturing, developing, or providing products, goods, or services that reduce the use or consumption of non-renewable energy resources.

• Required the DOE to carry out a national public information program on energy efficiency focused on: (a) the need to reduce energy consumption, (b) the benefits of reduced consumption, (c) the benefits of lower energy costs to economic growth and job creation, and (d) ways to reduce consumption through increased efficiency.

EPACT 2005

• Mandated that the U.S. Department of Energy (DOE), in cooperation with the Environmental Protection Agency (EPA), create a consumer education program focused on the energy savings available from properly conducted maintenance of air conditioning, heating, and ventilating (HVAC) systems;


Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2109

Small Business California

Yesterday I sent you the link to Small Business California press release requesting Dr Winslow Sargeant head of Office of Advocacy at the SBA to do research on what banks are doing as respects lending to small business.

I am pleased to tell you that Dr Sargaent called me yesterday and let me know that they were in the process of getting this done and it should be done in two to three weeks.

He said the report will be for 2009 and they will also be doing a report for 2010 early next year.

When the report is done I will send to you.

While I had Dr Sargaent on the phone I also requested that he look into why the SBA has not designated a person to meet the requirements required under the energy bills of 2007 and 2005.

These bills required the SBA to work with government agencies in developing energy policies that will help small business. One policy mentioned in the energy bill was assistance in developing On Bill Financing around the country which Small Business California has brought to California.

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

Small Business Press Release/ Clinic by the Bay

Small Business California issued a press release yesterday urging Dr. Winslow Sargeant the United States Small Business Association Chief of Advocacy to do a report on what Banks are doing with small businesses. Based on your responses there is a major problem with banks reducing and in some cases eliminating lines of credit, calling in loans, reducing credit card limits and increasing credit card interest.

There is a precedent for this in that Jere Glover while head of Advocacy under the Clinton Administration put forth a report which illustrated many of the problems at that time. This report is important because we have to have something that goes beyond anecdotal evidence.

Please see below link to press release.

http://www.businesswire.com/news/home/20101024005085/en

I have been invited to attend a conference on Tuesday and Wednesday that the National Association of Government Guaranteed Lenders is putting on in Anaheim. It is expected there will be over 600 in attendance.


On November 27th 1998 I was watching Chris Mathews Hardball. Chris had as his guest John Kasich who had written a book called Courage is Contagious. The book tells about 15 people who had done extraordinary things in their community.

One of the guests was Dr Jack McConnell who founded Volunteers In Medicine in Hilton Head. He told about an amazing free clinic he had established there taking volunteer retired Doctors, Nurses, Dentist and lay Volunteers who provided health services to the working uninsured. He also mentioned that they took no government money.

It was then my dream began to establish a Volunteer in Medicine program in SF.

On November 9 the Volunteer in Medicine Clinic called Clinic by the Bay will have its grand opening. Senator Dianne Feinstein we think will be attending as will Congresswoman Jackie Speier.

That evening Small Business California and Board members Stephen Cornell, Mark Klaiman and I will be hosting a fund raiser for the Clinic from 6 to 7:30 The cost is $1000 for host, $500 for co-host, $250 for sponsors and $100 for individuals.

For those of you in the SF area I hope you can attend. For those of you outside the area I hope you will consider making contribution. I will match any contribution you make. Please make checks payable to Clinic by the Bay and mail to me at address below or contribute on line by going to http://www.clinicbythebay.org/. If you contribute on line please let me know amount so I can match.

Our Credo
“May we have eyes to see those who are rendered invisible and excluded,
Open arms and hearts to reach out and include them,
Healing hands to touch their lives with love,
And in the process heal ourselves”


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

AB 1632 the Small Business Bill is signed by the Governor- Letter To Advocate for Research on Bank Lending

In previous emails I said that a trailer bill was part of the budget package. I indicated that it needed to be signed by the Governor.

See email from Toni Symonds indicating the Governor has signed the bill. Besides providing lending for almost $250 million it will provide $6 million for SBDCs. Tony worked hard on this bill and I think you should take a few seconds and send an email and thank Tony and the JEDE Committee members.

SB Cal will have a representative at the Oct 26 meeting.

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

Dear JEDE Friends:

According to the Governor's legislative staff, the Governor has signed AB 1632 the Small Business Act that includes $33 million for small business finance and technical assistance. We don't have a chapter number yet, but JEDE was emailed that the bill was signed.

All Members of the JEDE Committee voted in support of this bill. As you may recall, this bill was a recommendation from the Speaker's Economic Recovery and Jobs Task Force that was lead by Assemblymen V. Manuel Perez and Mike Feuer. In developing the recommendation, the Task Force met with small business leaders, the SBA and the Treasurer's Office. JEDE's work on business issues was also used as a foundation to the discussions and recommendations. The Speaker, in considering the recommendations from the Task Force convened a Small Business Roundtable in August 2010.

It is expect this $33 million will leverage millions of federal dollars and assistance for our small businesses. Attached is more information about the programs funded in the bill.

Thank you for all your efforts. See you on October 26, 2010 to discuss implementation.

Toni and Mercedes
Toni E. Symonds
Chief Consultant
California State Assembly Committee on Jobs,
Economic Development, and the Economy
California State Capitol
Sacramento, California 95814
(916) 319-2090
toni.symonds@asm.ca.gov

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

Yesterday I sent a letter to Winslow Sargeant SBA Office of Advocacy along with 15 sample emails from you of the problems you are having with banks. I wrote supporting the SBA Office of the Advocate do research on what banks are doing to small businesses. We need this so we will not be talking anecdotally. The study would be similar to what Jere Glover a past Advocate did a number of years ago.

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

Emails About Big Banks

I have really been blown away by the responses I have received to my emails about big banks in general and Bank of America specifically.

In the last two days I have received well over 100 emails. The horror stories of banks pulling lines of credit, calling in loans, 30% interest on credit cards and banks cashing larger checks so they can increase the amount of fees they can charge on smaller checks are just a few of the things you have told me.


I welcome further comments including those of you that are being treated well by your bank.


The reason for this email is however to let you know that Small Business California is going to be sending a letter today to the SBA Office of Advocacy supporting their doing research into the actions of banks and their treatment of small businesses. Jere Glover the Advocate under the Clinton administration did this and it had an impact in the way banks dealt with their small business customers.

I will cite examples that you have provided me.

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

Big Banks

The story about Bank of America hiring 1000 people but they had no plans to get back in the 7a and Express lending business seemed to have hit a nerve.

I am sending this follow up email to see how many of you have had problems with big banks not just in lending but in service and fees being charged. Include credit cards in the mix.

Could you please get back to me outlining those problems and what banks are creating these problems.

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

W2s/ Bank Lending/ Bof A Hires 1000 employees to serve small business

Last week I sent to you information on how to call into a White House briefing about the W2 requirements under the health care bill.

As you know the bill required employers to include medical insurance cost in the W2s they were filing for their employers starting in 2011.

Announced at the briefing was that the inclusion of medical cost on W2s would be delayed until 2012.Please note that these health cost are not taxable for employees.

That is the same date that employers will be required to file 1099s for all businesses they pay over $600. Small Business California and the National Small Business Association continues to oppose this and are aggressively telling lawmakers small business wants a full repeal of the 1099 requirement.

On Thursday I talked to Senator Feinstein about the problems small businesses are having getting loans and credit from banks. She indicated that she was going to contact Ben Bernanke on this and I await hearing from her office.

What I would like to know from you is - are you seeing any loosening of credit now that the Small Business Jobs bill has passed?

Bank of America indicated that it would be hiring 1000 employees to serve small business. When Sharon Bernstein of the LA Times asked if this means they will be making more loans to small business she was told they had no plans to do this. The newly hired employees would be used to forge relationships with small business and get them to use B of A for deposits, credit cards,payroll, pensions etc. At its peak B of A made 15000 loans to small businesses around the country and now makes almost no 7a and Express loans.

I don’t know about you but I don’t need another bank to take my deposits and give me overpriced credit cards and not give me a loan.

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2109

What does small business want/ Information about CEA conference

Yesterday I got a call from a reporter asking what small business would like the next Governor of California to do to help California small businesses?

I would like to know your thoughts. I would also like to know if you would be willing to talk to the media on this.

Who are you supporting for Governor?

The California Employers Association (CEA) is having their 73rd Annual Conference and Meeting on Wednesday, November 3 in Sacramento at the Arden Hills Resort Club and Spa.

Please go to the link below to find out about the event and the speakers who will be there. Memberss of Small Business California can attend this event at the ‘Member’ price of $99. To take advantage of this opportunity, you need to call 1-800 399-5331 to register. You cannot register online.


http://www.employers.org/index.php?option=com_jcalpro&Itemid=29&extmode=view&extid=11


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

State to Receive over $168 million For Small Business Loans

Yesterday I learned that the state will be receiving over $168 million from the Federal government for small business loans.

This is as a result of the passage of the Small Business Jobs Bill that Small Business California and the National Small Business Association fought so hard for.

It is estimated that this will leverage $1.7 billion for loans to California small businesses.

This along with the money in the California budget[ assuming it gets passed] will mean almost $2 billion will be available to California small businesses.

I hope you find the information provided in these emails helpful. If you haven’t already joined Small Business California I hope you will consider doing so.

Small Business California is making a difference in Sacramento and Washington. We also have a lobbyist in Sacramento to represent your interest.

The cost is $150 for businesses with revenues under $1 million and $300 with revenues over $1 million.

You can join online by going to www.smallbusinesscalifornia.org


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

Budget and Small Business

You all know that budget discussions are going on in Sacramento.

Two bills called trailer bills are being discussed and look like they have a good chance of being included in the budget. These bills are SB 872 and AB 1672. They are important in that they will provide about $32 million to small business programs.

$20 million will go to the existing Small Business Loan program at Business Transportation and Housing. This will leverage about $100 million in bank loans and/ or lines of credit and will serve it is estimated 1000 business.

$6 million will go to a program called the California Capital Access Program [Cal Cap]. This will triple the size of their current program and would leverage $135 million in loans and serve about 1000 businesses.

The real big piece however is $6 million to the Small Business Development Center program. SBDCs have been hit hard by the Community Colleges pulling back their funding. This money is matched by the SBA so it means $12 million to SBDCs.

Small Business California is watching this closely and we are being told this should get passed.

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

Exchange Bills Signed By Governor

The Governor signed yesterday SB 900 and AB 1602 which will begin to set the structure for the Exchange in California. See press release below.

I will be representing Small Business California at the event with the Governor and the media call in afterward.

Small Business California member Janet Hildreth owner of Tree Lovers Floors in San Francisco will also be there.


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


View this email in a web browser Forward to a friend


PRESS RELEASE
For Immediate Release:
Thursday, September 30, 2010
Contact: Aaron McLear
Rachel Arrezola
916-445-4571

Gov. Schwarzenegger Signs Legislation Making California the National Leader on Health Care Reform

California is First State in the Nation to Create Health Benefit Exchange.

Governor Arnold Schwarzenegger today signed AB 1602 by Assembly Speaker John Pérez (D-Los Angeles) and SB 900 by Senator Elaine Alquist (D-Santa Clara) creating the California Health Benefit Exchange, an entity that will help California consumers and small businesses shop for and buy affordable health insurance starting in 2014. The Governor’s action makes California the first state in the nation to enact legislation creating a health benefit exchange under federal health care reform.

“For national reform to succeed, it will be up to the states to make it work, and California is moving forward on reforms that will provide affordable and quality health care insurance,” said Governor Schwarzenegger. “Choice and competition have the power to improve health care quality and reduce health care costs for California consumers. With the California Health Benefit Exchange, we will be able to create a competitive marketplace where consumers can choose among qualified health plans – all without relying on the state’s General Fund.”

The Governor announced earlier this year that he is taking aggressive action to implement federal health care reform in California including helping develop the structure for an exchange to foster competition and make health insurance affordable. The Governor formed a Health Care Reform Task Force to implement key reform provisions and programs under health care reform this year, including the Exchange.

The California Health Benefit Exchange will make it easier for individuals and employees of small businesses to compare plans and buy health insurance in the private market using federal tax subsidies to make health coverage more affordable. Federal health care reform makes tax credits and subsidies available in 2014 to Californians with incomes between 133 and 400 percent of the federal poverty level (approximately $29,000 to $88,000 for a family of four).

The Exchange will be governed by a five-member board appointed by the Governor and the legislature. Between now and the end of 2013, the Exchange board and staff will develop procedures and criteria to enroll Californians in the Exchange and select qualified health plans to participate. Similar to the purchasing pool proposed as part of comprehensive health reform advanced by Governor Schwarzenegger in 2007, the Exchange will enhance competition and give individuals and employees of small businesses the same advantages available to large employer groups including a more stable risk pool, greater purchasing power, more competition among insurers and detailed information regarding the price, quality and service of health coverage.

“We believe the Exchange will improve the way millions of Californians get health insurance in our state,” said California Health and Human Services Agency Secretary Kim Belshé, who chairs the Governor’s Task Force on Health Care Reform Implementation. “The Exchange will focus competition on price, quality and service – giving individuals and small business employees the same large-group purchasing advantages and more affordable options now enjoyed by those who work for large firms.”

The Exchange will work in partnership with agents and brokers, community organizations and other “navigators” to help consumers make informed decisions based on the price, quality and value. Once the Exchange opens in January 2014, California consumers will be able to use it to research their health coverage options and access federally-funded tax credits and cost-sharing subsidies. Click here to read more on the California Health Benefit Exchange.

The federal government announced today that California will receive $1 million to fund the costs of preliminary planning efforts related to the development of an Exchange. Additional federal implementation grants are expected be announced in the Spring of 2011. After 2014, the Exchange will be self-supporting from fees paid by health plans and insurers participating in the Exchange. No state General Funds are appropriated for operation of the Exchange.

In addition to taking action on the Health Benefit Exchange bills today, Governor Schwarzenegger announced he also signed the following bills to implement health care reform in California:

SB 1163 by Senator Mark Leno (D-San Francisco) - Health care coverage: denials: premium rates.

· In July, Governor Schwarzenegger announced the state’s medical insurance rate review proposal to make costs more transparent and ensure greater consumer protection. SB 1163 embodies the Governor’s proposal by requiring all premium filings be reviewed and certified by an independent actuary to ensure premium costs are accurately calculated and all proposed rate increases be posted on both department and insurer websites making costs more transparent. These consumer protections exceed what federal law requires under federal health care reform.

SB 1088 by Senator Curren Price (D-Los Angeles) – Health care coverage: dependents.

· This bill prohibits health plans and health insurers from setting the limiting age for dependent children covered by their parent’s health insurance policy at less than 26 years of age.

AB 2244 by Assemblymember Mike Feuer (D-Los Angeles) – Health care coverage.

· AB 2244 implements and phases-in provisions of federal health care reform, ensuring that children cannot be denied coverage or priced out of the market if they have pre-existing conditions. The bill prohibits insurers that sell individual market policies in California from refusing to sell or renew coverage to kids with pre-existing conditions.

AB 2345 by Assemblymember Hector De La Torre (D-South Gate) – Health care coverage: preventive services.

· Aligning state law with federal health care reform, AB 2345 requires health care service plan contracts to cover certain preventive services with no cost-sharing.

AB 2470 by Assemblymember Hector De La Torre (D-South Gate) – Health care coverage: cancellation: rescission.

· This bill prohibits a person’s health care insurance policy from cancelling insurance once the enrollee is covered unless there is a demonstration of fraud or intentional misrepresentation of material fact by the terms of contract or policy.

The Governor and his Administration have been working since federal health care reform passed to implement key elements in California before the 2014 start date. In April, the Governor announced the state will contract with the federal government to operate a temporary health insurance program for medically uninsured individuals with preexisting medical conditions. In July, the Governor’s Administration submitted the state’s proposal to the federal government to establish and operate the federal Pre-existing Condition Insurance Plan through a public-private partnership with contracted vendors, which will be overseen by the California Managed Risk Medical Insurance Board. To implement this program and expand affordable health coverage to uninsured Californians with pre-existing medical conditions, the Governor also recently signed legislation creating the Federal Temporary High Risk Health Insurance Fund to receive $761 million in federal funding: SB 227 by Senator Elaine Alquist (D-San Jose) and AB 1887 by Assemblymember Mike Villines (R-Clovis).

Governor Arnold Schwarzenegger
State Capitol Building
Sacramento, CA 95814

Another Victory For Small Business

For the second time in two weeks Nydia Velazquez tried to force her will to the detriment of small business. As you will recall last week she voted no on the Small Business Jobs bill. This week she tried to incorporate an amendment into a Continuing Resolution that would allow Venture Capital people regardless of size and with majority ownership to be eligible for Small Business Innovation Research money.

For those of you not familiar with SBIR it is a very successful program that allows small businesses to receive research and development money from a number of government agencies. I believe it is about 2.5% of the agencies research and development budget that is allocated to small business.

The SBIR has had 8 continuing resolutions because Ms Velazquez has continually fought to include Venture Capital firms and has fought the Senate compromise on Venture Capital firms.

Ms Velazquez wanted to hold off the vote until after the election. This would have at least shut the program down for at least a couple of months and at worst shut the program down permanently.

Yesterday all hell broke loose as a result of a call to action by Rick Schindel. There were calls from all over the country to pass S3839 without amendments. S3839 was another continuing resolution extending the program through January 31.2011.

House members Ed Markey and Niki Tsongas sent a Dear Colleague letter out to member asking for support of s3839 unamended.

Small Business California and its Business Innovation committee contacted the Speaker and Jackie Speier asking for their support. Jackie Speier gave us that support and while I did not hear directly from the Speakers office it seems quite apparent the Speaker also supported this.

Around 7PM Lydia Velazquez under pressure from her peers and the House leadership accepted the Senate’s bill.

Small Business California wants to thank the Speaker and Jackie Speier. I also have been in contact with Niki Tsongas' office and want to thank them and Ed Markey for their support.

The next step is to get a reauthorization bill per the Senate's compromise and not have to keep doing these continuing resolution.

Small Business California is the only Association in California fighting on behalf of SBIR firms. It is ironic because California receives more SBIR money than any other state. The National Small Business Association and board members Jere Glover and Les Bowan and Larry Nannis have also fought gallantly.

I want to also thank our board member Chris White and his Business Innovation committee for their tireless efforts on this issue.


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

Small Business California Chamber Booklet

The President is signing pretty much as we speak the Small Business Jobs bill.

It has been a long battle but there is relief coming to small businesses in the area of access to capital and tax credits. I am really guessing but I think over $1 million sole proprietors and partnerships in California will be getting a tax break of over $1000 for 2010 with the elimination on FICA in health premiums.

Thank you to everyone that helped get this passed.

One little known fact is that Small Business Development Centers around the country will get $50 million with no match requirement.. If the distribution is as it has been it would mean about $10 million to California. Also in the California budget it is possible the SBDCs will get $6 million.

This is very near and dear to my heart in that I served as the Chair of the SBA SBDC board.


Please see link to some incredible work SB California’s executive director Hank Ryan has done around identifying local chambers members that have been leading the Clean Energy Economy. Is your Chamber on the list?

Small Business California has published a new booklet 32 Examples of Chambers of Commerce & Chamber Members in California: Leading the Clean Energy Economy. The booklet profiles local California chambers of commerce and their members who are demonstrating how recovering profits through energy efficiency can help strengthen the chamber, its business members and the community.



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

PELOSI -- Remarks at Enrollment Ceremony for Small Business Legislation

Please see below the Speakers comments at the signing ceremony.

You will see in the comments the Speaker mentioned myself and Todd McCracken the Executive Director of the National Small Business Association. As you know Small Business California is a CORE member of NSBA. Our two organizations fought hard for the passage of HR 5297 and NSBA deserves to be recognized.

It is also interesting to note that the Chairman of the House Small Business Committee Nydia Velazquez voted against the measure. She seems to be on the wrong side of small business interest consistently.

You have heard me talk about Volunteers In Medicine and many of you have contributed to Clinic by the Bay which is a VIM clinic in SF. For those of you that are new on this email tree Volunteers In Medicine is a program that takes retired doctors, nurses, dentist and lay professionals and gives them the opportunity to provide free health services to the working uninsured.

Clinic by the Bay will be opening shortly and will be the 82nd VIM Clinic in the US. I just heard yesterday we will also be opening a clinic in Palm Springs in the next month or so.

When I started working with the Volunteers In Medicine Institute about 12 years ago we had about 8 clinics. What is amazing is that we have been able to grow and start new clinics without taking any government money.

If you would like to contribute to Clinic by the Bay you can do so by going to http://www.clinicbythebay.org/ or sending a check to me. I will match all your contributions. If you contribute on line please let me know.

For information about Volunteers In Medicine go to http://www.volunteersinmedicine.org/.


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




Pelosi Remarks at Enrollment Ceremony for Small Business Legislation

Washington, D.C. – Speaker Nancy Pelosi joined senior Members of Congress and small business owners and advocates at an enrollment ceremony at the Capitol this afternoon to sign H.R. 5297, the Small Business Jobs Act, and send it to President Obama for his signature into law. The House passed the bill earlier this afternoon by a vote of 237 to 187, with only one Republican supporting the measure; the Senate passed the legislation on September 16. Below are the Speaker’s remarks.

“Good afternoon. I have often said to my colleagues that one of the most optimistic steps a person can take, except maybe getting married, is to start a small business. It is risk taking. It is entrepreneurial. It is in the spirit of our great country. And today, we celebrate that great spirit.

“I am proud to be joined by small business leaders and small business advocates and small businessmen and women. They represent the millions of small businesses nationwide that are the backbone of the American economy.

“In their name, today, Mr. Hoyer, our distinguished Majority Leader; Mr. Clyburn, our Majority Whip; the chairs of our Steering and Policy Committee, Chairwoman Rosa De Lauro and Chairman George Miller; the chairman of one of the committees of jurisdiction on this bill, Chairman Sandy Levin.

“In the name of America’s small business people, we will send to President Obama legislation that will unleash hundreds of billions of dollars in loans for America’s small businesses, create half a million new jobs, and provide billions of dollars in tax relief. And we are doing it in a fiscally responsible way—creating 500,000 jobs without adding to the deficit. It is paid for.

“Earlier this month, I joined, once again, over and over again all of us join our small business owners in our own districts to hear about the challenges they are facing. They told me, once again, about difficulties obtaining capital they need to keep their doors open and to grow. Indeed, 45 percent of small businesses seeking loans were unable to get their credit needs met last year.

“I heard that day from a longstanding leader for San Francisco’s and California’s small businesses, Scott Hauge. He said, ‘All we are asking for is this: lend us the capital so that we can create the jobs. It’s what we do best.’

“Today, we are doing just that: unleashing $300 billion in lending to small businesses and offering more than $12 billion in tax incentives to help small businesses grow, hire, and fuel our economy.

“The most eloquent voices in this debate have been the small business owners themselves. I am pleased that we have two such small business owners here. Frequently we talk about them from the podium, but I want you to hear from them themselves. First, we will hear from Mariana Huberman, an entrepreneur from right here in Washington D.C. And after Mariana, Todd McCracken will join us and tell us of his experience and why this legislation is important.

“Small businesses, as we know, are the backbone of our economy: they have created two-thirds of all the new jobs created over the last 15 years. Today, we are helping small businesses become what they have been all along but even stronger engines of our recovery.

“Shortly, I will sign the bill, but first we are going to hear from Mariana. Mariana, please join us. Mariana Huberman—owner of a UPS store in D.C.”

# # #

Tax Legislation

Finally our Small Business Jobs bill has passed both the Senate and the House and will go to the President for his expected signature.

You have heard me talk about the lending side but I have not talked about some of the tax credits which are very significant. The expensing of $500,000 and the full deductibility of health insurance for the self employed.

Please see below a list of some of the credits. Thanks Rich for sending.

I want to thank Speaker Pelosi for her leadership in getting this through the House and Senators Boxer and Feinstein for their support.

Small Business California will continue to work on getting the filing of 1099s eliminated one way or the other.


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

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

Per my voicemail, here are some of the more common summary of the tax breaks for business in the Landrieu-Baucus substitute amendment to the House-passed jobs bill:

· For the first tax year of the taxpayer beginning in 2010, eligible small businesses could carry back unused general business credits for five years. Eligible small businesses would consist of sole proprietorships, partnerships and non-publicly traded corporations with $50 million or less in average annual gross receipts for the prior three years.

· For tax years beginning in 2010, eligible small businesses, as defined above, would be able to use all types of general business credits to offset their alternative minimum tax (AMT).


· Under current law, the Code Sec. 179 expensing limit for tax years beginning in 2010 is $250,000, and the maximum expensing amount is reduced (i.e., phased out, but not below zero) by the amount by which the cost of Code Sec. 179 property placed in service exceeds $800,000 (the investment ceiling). For tax years beginning after 2010, these amounts are to revert to $25,000 and $200,000 respectively. The substitute amendment would for tax years beginning in 2010 and 2011 increase the maximum Code Sec. 179 expensing amount to $500,000 and the investment ceiling to $2,000,000.

· For property placed in service after Dec. 31, 2009, for any tax year beginning in 2010 or 2011, qualified real property (qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property) would be eligible for $250,000 of expensing under Code Sec. 179. The dollar cap would apply to the aggregate cost of qualified real property.

· Bonus 50% first year depreciation would be extended to apply to property placed in service in 2010 (in 2011, for certain long production period property).

· For a tax year beginning in 2010, the deduction for startup expenses under Code Sec. 195 would be increased from $5,000 to $10,000 and the phaseout threshold would be increased from $50,000 to $60,000.

· For a tax year beginning after Dec. 31, 2009, but before Jan. 1, 2011, when calculating self-employment taxes, the deduction for health insurance costs of a self-employed taxpayer under Code Sec. 162(l) could be taken into account (i.e., could be deducted) in computing net earnings from self-employment.

· Cell phones would be removed from the definition of listed property under Code Sec. 280F, for tax years beginning after Dec. 31, 2009.

Revenue offsets. The substitute amendment would pay for its tax breaks with the following revenue raisers:

· For payments made after Dec. 31, 2010, persons receiving rental income from real property would have to file information returns to IRS and to service providers reporting payments of $600 or more during the year for rental property expenses. Exceptions would be provided for individuals renting their principal residences (including active members of the military), taxpayers whose rental income doesn't exceed an IRS-determined minimal amount, and those for whom the reporting requirement would create a hardship (under IRS regs).

· For information returns required to be filed after Dec. 31, 2010, the Code Sec. 6721 penalties for failure to timely file information returns to IRS would be increased. For example, the first-tier penalty would be increased from $15 to $30, and the calendar year maximum would be increased from $75,000 to $250,000. For small filers, the calendar year maximum would be increased from $25,000 to $75,000 for the first-tier penalty. The minimum penalty for each failure due to intentional disregard would be increased from $100 to $250. The Code Sec. 6722 penalties for failure to file information returns to payees would be similarly increased.

Source: Thomson Reuters


Rich Gunn, C.P.A.
Shareholder
Burr Pilger Mayer, Inc.
600 California Street, Suite 1300
San Francisco, CA 94108
Tel: 415-288-6218
Fax: 415-288-6288
rgunn@bpmcpa.com
www.bpmcpa.com

Small Business Jobs Bill/ Exchanges/ Names of people that have helped small business/Oct 8 Requirements

We are very hopeful and somewhat expect that the House will take up the Small Business Jobs Bill tonight. Among other things this will increase the SBA guarantees to 90%, waive the fees on SBA 7a and 504 loans, increase the size of SBA loans to $5 million and allow refinancing of 504 loans.. It is expected this will be passed in the House Thursday and signed by the President early next week.

I have a reporter from the LA Times looking for people that have applied for loans and are waiting for the passage of this bill. Please let me know if you are one of these businesses. Ideally she is looking for people in the LA area but if you meet the criteria and located anywhere in California please let me know.

The two bills that would establish the California Exchange[ SB900 and AB1602] are awaiting the Governor’s signature. I have been on a couple of radio programs in LA promoting these bills. There is strong opposition from the California Chamber and Anthem. We have also done Op Ed pieces in the SF Chronicle and Orange County Register. We expect to have an Op Ed piece in the Sacramento Bee in the next few days.

Two weeks ago I felt pretty confident these bills would be signed and I still believe they will but it is not the sure thing I thought it was.

Once a year I ask people on this email tree to identify people at any level of government that are helping small businesses. These can be elected officials or government employees. If you send me their names, what they have done and their contact information I will send a letter from Small Business California mentioning you and why you feel they deserve recognition.

For me the person who has done incredible things for small businesses in SF is Trent Rohr. As the head of Health and Human Services he has run a program called Jobs Now which pays employers 100% of the wages for individuals that are unemployed, have a dependent under 18 and live in SF. This program has generated over 4000 jobs. The reason though I am recognizing him is that he started the program and quite frankly there were problems. He listened to the comments of small business and implemented changes that made this in my mind the best program of its kind in the country.

Let me know who you would like recognized.

Lastly I mentioned the new amendments to the workers comp notice regulations that revise MPN notice requirements and require employers to replace their claims forms, new hire pamphlets and posting notices. You must do this by Oct 8 or be subject to fines up to $7000. For more information go to California Workers Compensation Institute website at www.cwci.org or the California Employers Association website www.employers.org


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

Small Business Paper - Final Version

I am sorry to send so many emails this week but a lot has been happening.

Please see an amazing outline of the new health law geared to small and medium sized businesses. It was put together by our good friends at the Insure the Uninsured Project. Small Business California is on their advisory board.

For those of you that are with associations I strongly encourage you to put this as a link to your website

http://www.itup.org/Reports/Health%20Reform/HCR_Sm_and_Med_Biz.pdf


This week the Workers Compensation Insurance Rating Bureau reduced their recommended rate increase about 2 point to 27.2%. This is recommended for January 1 on new and renewal policies. As I have said before the Insurance Commissioner will make his recommendations that will probably be significantly lower. The insurance companies do not have to take the Insurance Commissioners recommendations.

I do not expect rates to go up anywhere near 27.2% but the losses are getting worse in the industry and significant rate increase are going to occur at some point in the future.

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

Pelosi, Obama victory: $30 billion small business bill passes

As expected the Senate has just passed the small business jobs bill we have been fighting so hard for. It now goes back to the House and we expect that the House will concur with the Senate amended language.

See story below.

This is critical because session closes the end of the month and there is not time for the House to change the language.

http://www.sfgate.com/cgi-bin/blogs/bottomline/detail?entry_id=72467


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

We Won HR 5297 / Please help

Just in.

The Senate voted for closure on the Small Business Jobs Bill. We actually got 61 votes.

The bad news is the 1099 amendments to reduce the filing requirements both got voted down. We will be coming back on this.

The final vote should be coming if not today in the next couple of days and we expect passage. Thank you to all that helps us get this major win.


Small Business California needs your help. Please let me know if you could help.

SB 900 and AB 1602 are the bills establishing the Exchange. Please let me know if you can help and where you are located.


· We need to identify small business owners who can talk about how the new health care law will benefit his/her business.

We need small business owners in Sacramento and San Francisco on September 23rd for the health care fair news events when the phase one of the new law is implemented.

We also need a small business owner who could not afford to give employees health care benefits but now will because of new law. That person would be at the news conference with the Governor possibly signing SB 900 and AB 1602 on September 23. This person could also do “curtain raiser” stories with reporters before the 23rd.

· We also need small business owners who can talk about the new health care law and how it will benefit his/her business at the following briefings. Will make times available soon:

9/17 - SF
9/29 - Fresno
10/5 - Inland Empire
10/13 - San Diego
10/19 – Sacramento

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

Small Business Jobs Bill

Please see article on small business jobs bill. This will be coming up next Tuesday according to Ryan McCormick in Senator Nelson office.

Senator Nelson has put forth an amendment that would change the $600 1099 requirement such that 1099s will not be required beyond the current requirements for businesses with less than 25 employees. For those over 25 employees the threshold would be raised to from $600 to $5000.

To pay for this there would be an oil tax.

What is interesting is according to Ryan the oil tax has not been scored by the Congressional Budget Office or the Joint Tax Committee. This is important because if it raises $17 billion over 10 years it would replace the revenues the CBO says the 1099 requirement would have raised. While it is Small Business California’s position that regardless of how much money the oil tax raises there should be a full repeal of the 1099 requirement but certainly if it raises $17 billion there is no excuse that businesses with over 25 employees should be subject to the requirement.

One last fly in the ointment is that the Joint Tax Committee for some reason has scored the 1099 differently than the Congressional Budget Office scoring it as raising $19.2 billion. Kind of makes you wonder about numbers that come out of Congress.

We are watching this closely.

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



Senate must pass small-business incentives, Voinovich says


By Lori Montgomery Thursday, September 9, 2010; 1:33 PM Washington Post

Retiring Sen. George Voinovich (R-Ohio) said he plans to help push a package of small-business incentives through the Senate next week, a move that would give President Obama and congressional Democrats a key victory on the economy in the final weeks before the November midterm elections.

In an interview, Voinovich said he could no longer support efforts by Senate Minority Leader Mitch McConnell (R-Ky.) to delay the measure in hopes of winning the right to offer additional GOP amendments. Most of the proposed amendments "didn't have anything to do with the bill" anyway, Voinovich said, and amounted merely to partisan "messaging."

"We don't have time for messaging. We don't have time anymore. This country is really hurting," Voinovich said. If a single amendment to reduce paperwork for business owners is considered on the floor, Voinovich said he told Senate Majority Leader Harry Reid (D-Nev.) that he would add his vote to that of 59 Democrats. That would give the majority party the 60 votes needed to overcome possible a GOP filibuster and move the package to final passage when Congress returns to Washington next week.

The small-business bill is a top priority for Obama, who has called repeatedly on Senate Republicans to drop their "blockade" of the measure. He mentioned it again during a speech Wednesday in Cleveland, arguing that the weeks of delay in the bill's passage "is actually leading [small-business owners] to put off hiring."

The package of tax breaks and other incentives includes a new loan fund that would encourage community banks to provide up to $30 billion to small businesses, improving access to credit - a problem hurting small businesses in Ohio, Voinovich said. He cited the case of a constituent whose business was turned down for a loan by 42 banks.

"We don't have time anymore to play games," Voinovich said. "I happen to believe these small-business people can't get money to save their souls."

Voinovich, a longtime champion of federal transportation spending, said he also plans to work with Obama to pursue a six-year reauthorization of the federal highway bill, and to jump-start the measure with $50 billion in immediate spending. Voinovich said the president called him personally to ask for his support, but offered few details about his reauthorization plan - including how it would be funded.

The senator is a strong advocate of responsible budgeting and has long called for increasing the gas tax, the traditional financing source for the nation's roadways. He said he mentioned that in his phone call with Obama, who proposed financing the first $50 billion by eliminating tax benefits for oil and gas companies. The latter idea is likely to be more popular among voters.

"I made very clear he would be better off talking about a gas tax to pay for this than to come up with other ways of paying for it," Voinovich said, adding that the president "did not respond to that. He just listened."

Voinovich's staff has been working with Senate Democrats to craft a reauthorization of the highway act. Until now, Voinovich said, administration officials have shown little interest in the effort. But Voinovich said Obama now realizes that "it won't happen without his leadership. He understands he's got to get involved."

IRS Releases Form to Help Small Businesses

Please see below updated information from IRS for tax credits from Health bill. For those nonprofits that are on the list note also that credit may be available for you.

I am looking to identify people that received a 7a or 504 loan prior to the suspension of the 90% guarantee and had their fees waived. I am also looking for businesses that are in the queue and waiting for the small business jobs bill to be passed to take out their loan.

For people that represent associations I have put together a phone call with Herb Schultz on Monday at 9:30. Herb will be discussing the new health bill and provide updates. If you represent an association and are available for the call please let me know by return email. We do have limited availability for this.


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


Sent: Tuesday, September 07, 2010
9:58 AM

Subject: IRS Releases Form to Help Small Businesses

The following information is for small businesses and tax exempt organizations.

The Internal Revenue Service today released a draft version of the form that small businesses and tax-exempt organizations will use to calculate the small business health care tax credit when they file income tax returns next year. The IRS also announced how eligible tax-exempt organizations –– which do not generally file income tax returns –– will claim the credit during the 2011 filing season.

The IRS has posted a draft of Form 8941 on IRS.gov. Both small businesses and tax-exempt organizations will use the form to calculate the credit. A small business will then include the amount of the credit as part of the general business credit on its income tax return.

Tax-exempt organizations will instead claim the small business health care tax credit on a revised Form 990-T. The Form 990-T is currently used by tax-exempt organizations to report and pay the tax on unrelated business income. Form 990-T will be revised for the 2011 filing season to enable eligible tax-exempt organizations –– even those that owe no tax on unrelated business income –– also to claim the small business health care tax credit.

The final version of Form 8941 and its instructions will be available later this year.

The small business health care tax credit was included in the Affordable Care Act signed by the President in March and is effective this year. The credit is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have.

In 2010, the credit is generally available to small employers that contribute an amount equivalent to at least half the cost of single coverage towards buying health insurance for their employees. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ moderate- and lower-income workers.

For tax years 2010 to 2013, the maximum credit is 35 percent of premiums paid by eligible small business employers and 25 percent of premiums paid by eligible employers that are tax-exempt organizations. Beginning in 2014, the maximum tax credit will go up to 50 percent of premiums paid by eligible small business employers and 35 percent of premiums paid by eligible, tax-exempt organizations for two years. The maximum credit goes to smaller employers those with 10 or fewer full-time equivalent (FTE) employees paying annual average wages of $25,000 or less.

The credit is completely phased out for employers that have 25 FTEs or more or that pay average wages of $50,000 per year or more. Because the eligibility rules are based in part on the number of FTEs, and not simply the number of employees, businesses that use part-time help may qualify even if they employ more than 25 individuals.

More information about the credit, including a step-by-step guide and answers to frequently asked questions, is available on the Affordable Care Act page on the IRS website.

Internal Revenue Service
Governmental Liaison for California & Nevada

Jobs Bill

This was sent to me by Chris Lucas in Senator Snowe's office. It is encouraging to see Senator Mitch Mc Connell saying that our Small Business Jobs Bill may pass.

This should be coming up the week after next. This is the first time a ranking Republican has made such a statement.

I make no comments about his other comments.

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


http://blogs.abcnews.com/thenote/2010/09/sen-mcconnell-we-can-do-business-with-obama-if-he-moves-to-center.html

“So the question is whether it's a good idea to raise tax on the top two brackets in the middle of what most Americans think is a recession. If you do that, you will impact 250,000 small businesses. They produce 50 percent of small business income, and it affects 25 percent of the workforce. So the question we're going to be asking when we get back is, 'Do you think that is good for the economy? Do you think this will get the economy growing again?’ This is a debate we're anxious to have.”

McConnell said the small-business jobs bill the president is pushing for “may” pass later this month, but cautioned that “it shouldn’t be oversold.”

“There is a little itty-bitty small business bill that no one thinks will have much of an impact on the economy, because they want to stick into it a too-big-to-fail provision and did stick it in. But the larger question is that business is sitting there, hoarding cash because they are concerned of the health care taxes, the health care mandates, the tax increases that are coming in September potentially. This administration has done a lot to discourage business from growing and hiring, and that's the problem."

Fed up. Get Small Business Jobs Bill Passed

See below for a great piece on the stalemate in Washington on the Small Business Jobs bill. I like it because it takes both Republicans and Democrats to task.

Both parties are playing politics with our livelihood and I am fed up with it. To both parties and the President get the Small Business Jobs Bill passed and let small business do what we do best. Create jobs.

To all those on the email tree please forward this to your colleagues and get people to write to their legislators. Senators Boxer and Feinstein support this so it is more important you get your Congressperson on board.

Marcus and Ahmod thank the Senators for their support.

Thank you Tony Wilkenson from the National Association of Government lenders for sending me this article.

Give small business the credit it deserves

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

Another regulation ---

Another regulation with fines attached,

Scott


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

415-680-2188



California Workers’ Compensation Institute
BULLETIN
1111 Broadway #2350, Oakland, CA 94607 (510) 251-9470 http://www.cwci.org/

August 17, 2010

No. 10-20

As of October 8, California employers must begin distributing an updated version of the workers’ compensation new hire pamphlet to all employees hired on or after that date; post revised workers’ compensation employee posting notices; provide an updated version of the DWC-1/Notice of Potential Eligibility to injured workers and post new Medical Provider Network (MPN) notices if they use an MPN.

The MPN notice regulations developed by the Division of Workers’ Compensation and approved last week by the Office of Administrative Law affect several different California workers’ compensation notices. First, the revised MPN employee notification requirements found in CCR §9767.12 require that “Before MNP coverage is implemented, the complete written MPN employee notification shall also be posted in both English and Spanish in a conspicuous location frequented by employees during the hours of the workday and in close proximity to the workers’ compensation posting required under section9881.”

Because the details on this “complete written MPN employee notification” are MPN-specific, claims administrators are scrambling to make sure these notices are ready for employers to post by the October 8 effective date. In addition, however, the recently adopted regulations require MPN information to be added to the workers’ compensation new hire pamphlets, the general workers’ compensation posting notices, and to the DWC-1/NOPE, so all of these materials are also being revised to reflect the new rules that take effect in less than two months.

Under the California Labor Code and state regulations, insured and self-insured employers are required to inform their employees of their workers’ compensation rights and obligations by posting state-approved notices (LC § 3550) and providing pamphlets to new hires (LC § 3551). The law specifies that insurers shall provide these notices to their policyholders with advice concerning the posting requirements and the penalties for failure to post and supply the information to employees [LC §§3550 (f) and 3551(c)]. Failure to provide the information can result in loss of employer medical control [LC §3550 (e)], civil penalties of up to $7,000 for each violation of the posting requirement [LC §6431], and toll the statute of limitations for filing a claim.

State regulations allow private enterprises to prepare and publish the posting notice or pamphlets if approved by the DWC, so for many years, insurers, employers and others have relied on CWCI to produce these materials and keep them current. Following the adoption of the regulations last week, CWCI submitted revised versions of its new hire pamphlet, “Facts About Workers’ Compensation,” and its posting notice, “If A Work Injury Occurs” for DWC review and approval. Once the approvals are given, CWCI will typeset, print and copyright the updated publications. To meet LC §3551(b) and CCR§9883(e), CWCI will also translate and print the revised pamphlets and posting notice in Spanish. In addition, the Institute will continue to produce the DWC-1/NOPE as a 5-part form, reformatted with the revised Notice of Potential Eligibility as a cover sheet.

Beyond these mandatory notices, the Institute is also updating its injured worker pamphlet, “Facts For Injured Workers” to reflect current TD rates and add MPN information. Although the 2002 reform bill (AB 749) eliminated the statutory requirement that claims administrators include a pamphlet explaining a worker’s benefits and obligations with the first notice of payment or notice of delay (LC §138.4), many companies continue to use “Facts For Injured Workers” as a way to provide claimants with basic information early in the life of the claim. The “Facts For Injured Workers” also can be used to meet the Insurance Code §1871.8 notice requirement on fraudulent receipt of temporary disability, and the LC §3553 notice requirement for victims of workplace crime. This pamphlet is available in English and Spanish as well.

Insurers, employers, TPAs, agents and brokers, and others who need to order the revised pamphlets and posting notices, as well as the revised DWC-1/Notice of Potential Eligibility may now do so by visiting the Institute’s online “Store” at http://www.cwci.org/ and placing a pre-order. Pending the DWC approvals, the Institute expects to have all of these materials ready for shipping by mid-September. In the meantime, the Institute will continue to stock the current notices and claim forms that should be used until October 7, and as a service to the community, has reduced the minimum order requirement so anyone needing a limited supply of the current materials to meet their interim needs can order them in smaller quantities. For further information regarding ordering, call Fran Perry at CWCI (510) 251-9470.

Information on these new notice requirements, as well as other recent regulatory changes, will be covered in an upcoming CWCI seminar, tentatively scheduled for mid-October. Specific dates and locations will be announced soon and posted in the seminar section of the Institute web site.




BY/

Copyright 2010, California Workers’ Compensation Institute
CWCI members may log in to http://www.cwci.org/ and access Bulletins in the Member area, while nonmembers with Research/Bulletin subscriptions may log in and access Bulletins under Resources (subscriber files). Public information is also posted on the website, and nonmembers may order annual subscriptions from the website store.

Tax Credits/Questions for email blast to your clients

In my email to you last week I asked if you were eligible for the tax credit provided under the new health bill. Many of you responded to me that you were not aware of the credit.

Basically if you have less than 25 employees with an average salary per employee of under $50000 you are eligible. The credit is a maximum of 35% of your premiums now and 50% 2014. I am providing a link below for you for more information.

Another provision in the health bill provides for a tax credit for non profits. The same basic rules apply per above but the credit is 25% now and in 2014 50%. It is not clear how you get this credit because of the nonprofit status but the regulations should be coming out shortly.

I am sure a lot of you volunteer in non profits so you would be doing them a service to advise them of this credit.


Here is the link to IRS Tax Credit FAQ
http://www.irs.gov/newsroom/article/0,,id=220839,00.html


Small Business California has been asked by the California Endowment Foundation to obtain the views of California small businesses about the Health Reform legislation. Thank you to all of you that completed this. If you haven’t please take a couple of minutes to do so.


· WHAT DO SMALL BUSINESSES SEE AS THE ADVANTAGES OF HEALTH CARE REFORM FOR THEIR WORKFORCE AND DAY-TO-DAY OPERATIONS.


· WHAT DO SMALL BUSINESSES SEE AS PROBLEMS FOR HEALTH CARE REFORM ?


· WHAT ARE THE TOP THREE GOALS SMALL BUSINESSES WANT TO ACCOMPLISH WITH HEALTH CARE REFORM




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

Questions for email blast to your clients

Small Business California has been asked by the California Endowment Foundation to obtain the views of California small businesses about the Health Reform legislation.

Could you please respond to the questions below. If you don’t know the answer to one or more of the questions that is also an acceptable answer.


· WHAT DO SMALL BUSINESSES SEE AS THE ADVANTAGES OF HEALTH CARE REFORM FOR THEIR WORKFORCE AND DAY-TO-DAY OPERATIONS.


· WHAT DO SMALL BUSINESSES SEE AS PROBLEMS FOR HEALTH CARE REFORM ?


· WHAT ARE THE TOP THREE GOALS SMALL BUSINESSES WANT TO ACCOMPLISH WITH HEALTH CARE REFORM


I would also like to know if any of you have taken advantage of the tax credits available in the health plan. Do you know what they are? Do you plan to take advantage of these.


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

Small Business California Opposes Proposition 23

Please see below press release indicating Small Business California's opposition to Proposition 23. We know this is controversial but given our strong support of AB 32 and our efforts to help small businesses reduce their energy use and cost through programs like On Bill Financing we felt it important to take this position.


We also feel there are tremendous opportunities for small business to drive research and development and small business job creation.


Small Business California Opposes Proposition 23

SACRAMENTO – Small Business California (SB-Cal) today announced its opposition to Proposition 23, the November ballot measure that would repeal California's clean energy and air pollution standards.

“Pulling the rug out from under businesses by dismantling the state’s roadmap to a clean energy future will not only hinder our economy, but will create an environment of uncertainty for small businesses who employ millions of Californians,” said Hank Ryan, Executive Director of Small Business California. “By repealing our clean energy standards, we would be putting thousands of jobs at risk and drive up costs for small businesses, while discouraging innovation and investments. California cannot afford Proposition 23.”

Small Business California is a proactive, non-partisan business advocacy organization whose only agenda is the well being of California small businesses. Working for all California small businesses for a better business environment, SB-Cal is responsive to the needs of California small business owners.

“Small businesses are the backbone of California’s economy. All innovation has left the shop of a small business and resulted in vast changes in the lives of millions,” said Steve Maviglio from the No on Proposition 23 campaign. “We are proud to have small business owners join our mission in exposing the deceptive Texas oil companies’ dirty energy proposition for what it truly is: an effort to unravel the state’s clean energy economy.”

Other business entities that officially oppose Proposition 23 are: Google, Bay Area Council, Levi Strauss & Co., the San Francisco and Greater San Fernando Valley Chambers of Commerce, LosAngeles Business Council, Virgin America, Silicon Valley Leadership Group, Warner Bros.
Entertainment, Inc., and hundreds of small business owners.


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