The National Debt/ Reporting tax fraud/ California State Agencies

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!

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

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

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


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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

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)

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

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

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

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

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

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.

They weren't bluffing.... Fwd: Notice of Termination due to New California Law

Last night Amazon terminated all its Affiliates in California. This as a result of the budget bill requiring them to collect sales tax.

As I understand it there was an exemption for businesses with less than $500000 in revenues. Amazon seems to have ignored this and terminated everyone.

It also appears that the legislation will require Amazon to collect sales tax with or without the affiliates.

If anyone has information refuting my comments please let me know but barring that it appears to me that this is just plain mean spirited and hopefully there will be a backlash by the people of California against Amazon.

For those of you that are affiliates please note that many other retailers like Wal-Mart and Barnes and Noble are welcoming your business.

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@smallbusinesscalifornia.org
415-690-2188


---------- Forwarded message ----------
From: Amazon.com Associates Program
Date: Wed, Jun 29, 2011 at 9:40 PM
Subject: Notice of Termination due to New California


Hello,

Unfortunately, Governor Brown has signed into law the bill that we emailed you about earlier today. As a result of this, contracts with all California residents participating in the Amazon Associates Program are terminated effective today, June 29, 2011. Those California residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com.

Please be assured that all qualifying advertising fees earned before today will be processed and paid in full in accordance with the regular payment schedule.

You are receiving this email because our records indicate that you are a resident of California. If you are not currently a resident of California, or if you are relocating to another state in the near future, you can manage the details of your Associates account here. And if you relocate to another state in the near future please contact us for reinstatement into the Amazon Associates Program.

To avoid confusion, we would like to clarify that this development will only impact our ability to offer the Associates Program to California residents and will not affect your ability to purchase from Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com.

We have enjoyed working with you and other California-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to California residents.

As mentioned before, we are continuing to work on alternative ways to help California residents monetize their websites and we will be sure to contact you when these become available.

Regards,
The Amazon Associates Team

Message Category: Notice of Termination due to New California Law
© 2011 Amazon.com. All rights reserved. Amazon.com is a registered trademark of Amazon.com, Inc. Amazon.com, 410 Terry Avenue N., Seattle, WA 98109-5210, USA.

Sales Tax/ Health Cost

In reading the SF Chronicle this morning it appears that the collection of sales tax by out of state Internet companies is part of the Governors budget.

Keep your fingers crossed that this gets passed by the legislature and signed by the Governor. It is estimated it will raise about $200 million for the state and will level the playing field for brick and mortar stores in California.

In the Kaiser Daily Health Journal report today, there were two pieces on the cost of health care in the US.

From 2005 to 2009 health cost reached $2.5 trillion and rose 23%. That is $8100 for every man woman and child in the US and represents about 18% of GNP and rising.

It was also reported that 5% of the population is responsible for slightly over 47% of the cost.

The economic foundation of our country is being threatened by the rising cost of health care spending. Whether you agree or disagree with the health plan that was passed last year this country has got to find solutions to this threat and all of us have to part of the solution.


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

Pacific Business Group on Health Health Cost

I serve on the Board of the Pacific Group on Health. This organization is made up of about 50 major employers who have about 3.2 million and 29 employees [CAL Insurance is the 29 employees] that they are providing health coverage for.

The goals of the organization are:

1.Engaging Consumers in Health Care Decisions

2. Paying for Value

3.Redesigning Care Delivery

4. Advancing Value Based Policy

I learned something yesterday that should be shocking to you. In the best case scenario only 2.5% of the payments to health providers are based on pay for performance. The average is 1%.

What an indictment of the US health care system.

It clearly highlights that in the US we pay for procedures with almost no concern of the outcomes of those procedures. In fact if a provider makes mistakes we pay them more than providers that do things correctly. The classic example is acquiring a staph infection at a hospital.

One of the goals of PBGH is to increase the pay for performance to 20% by 2015.

Why am I telling small businesses around the state? The reason is that the cost of health care has been the number one issue for small businesses in each of our 7 Small Business California surveys.

We must be vocal in the debate over reducing health care cost. We must play an active role in questioning the insurance companies how their providers stack up and pushing them to do more. We must let our employees know that they have a role in their health decisions and they must constantly question their providers.

We cannot continue to see health costs rise from the current 17% to 18% [$2.5 Trillion] and yet see the outcomes in many cases at the bottom of the industrial world.

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

SBA Lending/Bof A

I talked to my friend Tony Wilkinson at the National Association of Government Lenders and he indicated that the 7a program is doing well but money may run out in late September just before the next fiscal year. It does appear however that money will be there next fiscal year.

Some interesting numbers. Lending overall to small business for the first quarter was down from $624 billion to $609 billion. What is really interesting is that 52% of the outstanding small business loans have a maturity of 1 year or less and about 24% are outstanding one to three years and 24% are three years or more.

Of that amount 7a and 504 loans are 60% to 70% of the loans. That is not the way the market should work with the so called lender of last resort has the majority of the market for loans 3years or more.

I don’t know if you saw that Bank of America is going to charge almost 30% interest if you are lat on a payment on a credit card.

If any of you tried to do this in our business with our customers it would be considered usury.


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

Small Business Shrinking Payroll

Please see article in NY Times this morning indicating that for the month of May more small businesses are shrinking their payroll than expanding.

http://www.nytimes.com/2011/06/15/business/15jobs.html?_r=1&hp

What is happening in your business?

Are you optimistic about the future?

Are there any unique problems in your industry?

For example one the members of Small Business California who has a cabinet shop indicates in Northern California there are restrictions on the glue they can use but glue coming in from China is being used circumventing the restrictions.


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

California's business competitiveness

On Friday I will be talking to Steve [see below]. What are your comments?

Of course most small businesses can’t move but I still would like to hear from you about what are the problems of doing business in California and if you could move would you.

Yesterday Blue Shield announced they would be returning all profits above 2%. What do you think about this?

Is there anything a health insurance company could do that would make you feel that they are trying to solve the health insurance problem?

I was a little dismayed when I read in the Chronicle that Insurance Commissioner Jones speaking to the Blue Shield announcement said “ Why should insurance companies determine how much excess profit they should return” Implication any profits are excess.

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


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

From: Malanga, Steve [mailto:steve@city-journal.org]
Sent: Tuesday, June 07, 2011 1:17 PM
To: Scott Hauge
Subject: california's business competitiveness

Greetings. I am a writer for City Journal magazine working on a piece on the business competitiveness of California, based on some new research on job migration nationally. I was wondering if I could interview you about the key competitive issues that influence small businesses thinking of relocating out of California.

Thanks


Steve Malanga
Senior Editor, City Journal
Senior Fellow, Manhattan Institute
(www.city-journal.org)

Paid Sick Leave AB 400/SB826/ Out of State Internet Collection of Sales Tax

Small Business California has been tracking closely Assemblywoman Ma’s paid sick leave [AB400]. Many of you have indicated you would like to help defeat this bill.

Small Business California held back its opposition believing that it would not move forward given the provision that it would cost the state about $50 million for In Home Health Services.

We just found out that AB 400 has been made a two year bill meaning it will not move forward this session. We of course will track this next year.

Small Business California is sponsoring SB 826 {826}. This bill would impose minimal fines on Claims Administrators who do not report claims information to the Workers Compensation Information System. This is important in developing workers compensation policy for the state.

It is estimated that between 15 and 25% of the Claims Administrators are either not filing this information or filing incomplete information.

I am pleased to report this bill has passed the Senate and will be going to the Assembly where it is expected to pass.

We think this is important as this will provide a mechanism to keep track of non-compliant Claims Administrator.

For those of you in SF please take a look at the SF Chronicle this morning. In the letters to the Editor page Small Business California has a letter to the Editor supporting the collection of the sales tax by out of state Internet companies.



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

Internet Tax

Small Business California has been a strong supporter of having out of state Internet companies collect the sales tax on products bought in California.

To us it is a simple fairness issue leveling the playing field between Internet sales and brick and mortar stores. It also will reduce the administrative burden of small businesses as they will not have to keep track of their purchases and pay the use tax. The Board of Equalization has audited hundreds of thousands of small businesses on this issue over the last couple of years.

There are three bills dealing with this issue. In the Assembly Skinner AB 153, Calderon AB 155 and in the Senate Hancock’s S 235.

Calderon’s bill passed the Assembly 47-16 yesterday and Hancock’s bill passed last month. It is not clear to me if Skinners bill has passed the Assembly but if not it is expected to do so.

It seems that some if not all of these bills will get through the Assembly and Senate and go to the Governor. It is not clear whether the Governor will sign any of them. Governor Schwarzenegger vetoed past legislation.

The time has come to implement the collection of the sales tax on out of state Internet companies. For too long our brick and mortar stores have been put at a 9% to 10% disadvantage when competing with these companies.

What makes this interesting to me is the coalition that has been put together. Small Business groups and businesses like the big box stores. Politics truly do make strange bedfellows.


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

SBIR/ Governor

A few days ago I wrote to you about a continuing resolution of the Small Business Innovative Research program and the Small Business Transfer program [SB 990]. I know this doesn't have an impact on most of you but to those receiving funds from these programs it is extremely important.

I would like to give you an update as I think you will find it fascinating how Washington works.

Last email I said the House was going to amend the 990 from a one year authorization to a four month authorization. This passed on a voice vote. It then went back to the Senate where there was some discussion of making it a one month authorization.

While this was going on there was the issue of the Patriot Act, which as I understand it, needed to be passed by the end of the month. So 990 got stripped of the language with the Continuing Resolution and became the Patriot Act. We are now down to one week with no vehicle at this point to do a Continuing Resolution.

If this sounds familiar an SBIR bill introduced last year got stripped and became the Don’t Ask Don’t Tell bill which was signed by the President

You can’t make this stuff up.

Jerry Brown has been in office almost 4 months. I am curious how the small business community of California feels about the job he is doing. What are your thoughts.


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

FW: S164 Withholding on Government contracts/ SBIR Continuing Resolution

Senator Scott Brown has introduced the Withholding Tax Relief Act of 2011. This will repeal Section 511 of the Tax Increase Prevention and Reconciliation Act of 2005 which mandates that federal, state and local governments withhold 3% from payments for goods and services.

This tax withholding requirement affects all government contracts as well as payment to any person for a good or product provided to a government entity. As I mentioned in a prior email this will take effect December 21,2012.

Withholding of 3% has no relationship to a company’s taxable income and is in effect a loan to the government hurting small businesses cash flow.

Interestingly enough the cost of implementing the law will exceed the revenues anticipated according to a study released by the Department of Defense. According to DOD it will cost $17 billion over 5 years. The Joint Committee on Taxation now estimates the revenue generated is $7 billion over 5 years with only $1.1 billion in additional revenue and remainder due to the float.

Small Business California asks Senators Feinstein and Boxer to support this bill. We ask people receiving this email to contact the Senators office to ask them to support this.

You can do so by emailing Brian McKeon at Brian_McKeon@boxer.senate.gov and TC Ostrander at TC@feinstein.senate.gov

It is expected that Tuesday the House will be taking up a Continuing Resolution for funding of SBIR/Sttr/Cpp programs. S990 passed in the Senate on a voice vote last week.

Funding for the program runs out the end of this month and the Senate bill would continue funding for a year.

In my conversations with Kevin Wheeler in the Senate Small Business Committee and Lori Pepper from Congresswoman Pelosi’s office ‘it appears this will be amended by House Republicans to three or four months instead of a year.

This is a great program not just for small business but for the country and should have had full authorization years ago but it has been tied up by politics and not just Republicans but Nydia Velazquez when she was Chair of the House Small Business Committee.

California small businesses receive more of these contracts than any other state.



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

May Budget Revise/ AB 153 Internet Tax

Governor Brown unveiled his May revised budget.

Please see below highlights. Note that Enterprise Zones will be continued but only for new jobs created.

The projected revenues are up $6.6 billion leaving a deficit of $9.6 billion and as the budget requires $1.2 reserve the money needed for the budget is $10.8 billion.

Redevelopment continues to be eliminated See below.

Small Business California supports Nancy Skinners ab 153 which would require out of state Internet companies to collect the sales tax. In conversation with Liz Mooney this morning in Ms. Skinner's office she advises that this is still on suspense and it is expected it will come out of suspense the end of May.

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

*************************************************************

FOR IMMEDIATE RELEASE: Contact: Governor's Press Office

Monday, May 16, 2011 (916) 445-4571

Governor Brown Unveils Revised Budget

SACRAMENTO – Governor Edmund G. Brown, Jr. today unveiled a revised state budget that reduces by nearly $3 billion the amount of taxes needed to balance the budget, spurs job creation through new tax incentives and pays off most of the $34.7 billion debt built up over the last decade.

“California’s economy is growing, but we still face a $10 billion structural deficit and a wall of debt for years to come,” said Brown. “California’s finances were plunged into turmoil by the Great Recession and a decade of short-term fixes and fiscal gimmicks. This is not the time to delay or evade. This is the time to put our finances in order.”

The revised budget also downsizes state government and protects education and public safety. Since taking office in January, Brown and the legislature have cut spending by $9 billion and have taken other steps to reduce the deficit.

Key Highlights of Governor Brown’s May Revision Budget

Reduce the amount of taxes required to balance the budget. Californians will pay $2 billion less in income taxes this year than proposed in the January budget.

Increase spending on K-12 education. For years, the state has shortchanged public education in order to balance the budget, forcing school districts to borrow in order to balance their budgets. The revised budget increases funds for public schools by $3 billion. Even with this new infusion of funds, California schools are still owed billions by the state.

Spur job creation through tax incentives. The revised budget restricts Enterprise Zone credits to create new jobs only; spurs investments in California jobs through mandatory single sales; encourages manufacturing jobs through reduced sales tax on equipment purchases; and revamps a hiring tax credit to encourage additional job creation.

Create a long-term strategy to address California’s Wall of Debt. California has accrued $35 billion in budgetary debt by borrowing from future generations. The May Revision lays out a plan to pay off at least $29 billion in looming state debt by 2015.

Cut state government. The revised budget eliminates 43 boards, commissions, task forces, offices and departments that represent an inefficient use of taxpayer dollars. As services are returned to the local level, the Departments of Mental Health and Alcohol and Drug Programs will be eliminated. The revised budget also proposes to merge the Healthy Families Program into the Medi-Cal program, reducing costs and creating a single health care program for low income families

Improve debt management. More than $11 billion in cash from bond sales is sitting in department accounts, where it costs taxpayers more than $700 million a year in debt service for projects that have yet to be completed, creating an unacceptable burden on taxpayers. The revised budget proposes expediting projects, moving cash out of accounts and into projects that create jobs and improve state infrastructure as taxpayers intended.

Restore honesty to the budget process. Last year’s budget underfunded the costs of both the Department of Corrections and Rehabilitation and Department of Mental Health by $465 million. The revised budget addresses the shortfalls in these departments and establishes controls to prevent future overspending.

Sell underutilized state properties. The revised budget proposes the sale of state-owned properties like the Los Angeles Coliseum, the Montclair Golf Course in Oakland, the Capital Area Development Authority in Sacramento and the Ramirez Canyon property in Southern California. These properties serve no state function and should be sold off to pay debt.

The May Revision can be found here: http://www.ebudget.ca.gov/


###

Governor Jerry Brown
State Capitol Building
Sacramento, CA 95814

American Express New Policy Regarding Credits

I just received this from a small business owner who forwarded the message below.

For those of you accepting American Express cards this could be of interest to you. For those of you accepting other credit cards it would seem to me that it is just a matter of time until they will adopt the same policy.

--If you accept Amex cards pay special attention to your mail in the next week or so. I just received a letter from American Express updating our credit card processing agreement with them. It says that as of July 1, 2011 they will no longer refund the Discount (the credit card fee) when we issue a credit (refund) to a customer. If you don't like this you can elect to have your Discount Rate raised by 40 basis points (0.40%) instead. Does anyone else feel that this is a rip off. My suggestion is that when you get this letter call them up and let them know you are not happy and are considering not accepting their card. If they get away with this I can promise you that Visa, Mastercard and Discover will not be far behind.--

To all of you that are incorporated I suggest you review your records to make sure you are keeping proper documentation to protect your corporate veil in the event of a lawsuit.

Are your minutes up to date?

Are you keeping the corporate activities totally separate from your personal activities?

In the last few years I was a party to a lawsuit and my wife and I were named individually. The lawsuit was frivolous but our records were thoroughly reviewed. They also looked closely to see if there was an alter ego. You might want to consult a professional on this and make sure your records are up to date.

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

Many of you may not know that in 2005 the Tax Increase Prevention and Reconciliation Act was passed and it included a provision that governmental entities withhold 3% on nearly all payments to contractors that work for these governmental agencies. This was to take effect January 2011.

In 2009 the American Recovery Act and Reinvestment Act delayed implementation a year. The IRS recently announced that they are going to further delay this until Dec 21st 2012.

The Office of Advocacy and many business organizations applauded this action but we continue to request that this unfair tax be eliminated as it will create cash flow problems for many small businesses contracting with the government.

Small Business California wants to extend our thanks to the Office of Advocacy and its Chief Council Winslow Sargeant. On a personal note thank you Winslow.

Today AB 400 will come before the Assembly Appropriations Committee. This would require businesses with less than 10 employees to provide up to 40 hours of paid sick leave to their employees and businesses with more than 10 employees to provide up to 72 hours.

Small Business California has been tracking this bill closely. It is expected that this will go into suspense because of the cost to the state for In Home Health Workers. When Assemblywoman Ma introduced this before the cost estimate to the state was $50 million.

Yesterday the California Insurance Guarantee Association [CIGA] Board of which I serve voted to approve an assessment for 2012 of 2.285 on all workers compensation policies. This is a reduction of the current rate of 2.559.

CIGA is the organization that pays for claims of admitted insolvent insurance companies. We have struggled over the last few years as about 26 workers compensation insurance have become insolvent. I am proud to say that with the help of a $750 million bond we never have missed a payment to an injured worker.

I am still looking for more examples of burdensome state regulations. Please send them to me. Small Business California is keeping track of your comments.

To see what we have already received go to www.smallbusinesscalifornia.org


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

June 6 Small Business Event/ Directors & Officers Liability

On June 6th from 8 to 4 Small Business California along with a number of other small business associations will be co sponsoring an event at the Sacramento Convention Center.

It will include Speaker John Perez and Senate Pro Tem Daryl Steinberg. They also will have a lunch where legislators will recognize small businesses in their districts.

The cost is $85. If you would like to attend I can send you full details by return email. I believe Governor Jerry Brown has been invited to speak at the luncheon.

I was surprised by the response that I got to the volunteers handbook for non profits. Given this interest I want to pass on another suggestion for those of you that are on the board of directors for non profits.

As you know if you are a board member or executive director you can be held personally liable for the actions of the nonprofit as you have a fiduciary responsibility to the nonprofit.

You should make sure that your By Laws have an indemnification provision and that you have directors and officers liability.

You should discuss this with the nonprofits attorney. Thank you John Pryor for reminding me of this.


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

SBDC Next Steps Event in Bakersfield & Other Matters

Please see information sent by Marty Keller the Small Business Advocate. I have deleted the attachment as I don’t send attachments on these emails but if you would like this information I will send to you.

Small Business California supports AB 29and testified at the Business and Professions committee.


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



Friends,

Our collaboration with the Small Business Development Centers called “Next Steps for Small Business” moves to Bakersfield on Thursday, May 26. Please see the attached flyer for complete information and the link to register. I look forward to meeting small business owners in the southern San Joaquin Valley region.



Yesterday, Assembly Speaker John Perez’ bill AB 29, which would establish the Governor’s Office of Economic Development—including the Office of the Small Business Advocate—in statute, passed out of the Committee on Jobs, Economic, Development, and the Economy on a bipartisan vote of 6-0. It goes next to the Assembly Committee on Appropriations.

May is Small Business Month, and is jammed-packed with many tributes to our small business owners and opportunities to support their efforts to grow their businesses during these challenging times. Be sure to consult the GOED calendar to see what’s happening across the state. If you have a small business event you’d like added to the calendar, please email the information to our awesome intern Daisy Luna at Daisy.Luna@gov.ca.gov.

As always, please forward this message to your network.

Be prosperous!


Marty Keller
Deputy Director, Small Business Advocate
California Governor's Office of Economic Development (GoED)
1130 K Street, Suite 101 - Sacramento, California 95814
Office: (916) 322-0673
Email: Marty.Keller@gov.ca.gov
www.business.ca.gov
Follow us on Twitter: @CAGoED

We, the People of the State of California, grateful to Almighty God for our
freedom, in order to secure and perpetuate its blessings, do establish this
Constitution.

Nonprofit Volunteers/ IT Theft

Many of you serve on nonprofit boards as do I. I have always been concerned about nonprofits having a formal policy for their volunteers. I therefore under the auspices of my company CAL Insurance have put together a Volunteers Handbook for nonprofits.

This includes an outline of what a nonprofit should provide its Volunteers
It also provides a very important letter explaining insurance coverages and a release of liability for workers compensation. Most nonprofits do not provide workers compensation coverage for their volunteers and I think there is an exposure to the nonprofit and maybe even the directors if f this is not clearly pointed out.

If you would like to receive a copy of this handbook please let me know.

Please see below what I think is an important survey indicating that nearly one third of Americans feel that businesses are not doing enough to them from workplace discrimination and identity theft. This presents some real liabilities for businesses.

You may not know that there is available in the insurance market place coverage for these liabilities as well as coverage for hackers and worms and IT theft on their IT systems.

Even if you don’t buy the insurance coverage you should be aware of the questions asked by the underwriters as it will give you some guidelines of what are the concerns of the underwriters and policies you can put in place to protect yourself. If you would like a sample application please let me know.


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


Survey: Businesses Not Doing Enough to Protect Against Discrimination; ID Theft
By admin | May 2, 2011


Nearly a third of Americans report that businesses are not doing enough to protect them from workplace discrimination and identity theft.

A recent survey by the Chubb Group of Insurance Cos. found that one in three people surveyed said, compared to a year ago, companies are less likely to protect employees from gender discrimination (30 percent) and other workplace discrimination (32 percent). One-third (32 percent) also believe that companies are less likely to protect consumers from the theft of personal information.

Discrimination Charges Soar

“A record-high number of discrimination charges have been filed with the Equal Employment Opportunity Commission,” noted Catherine Padalino, vice president and employment practices liability product manager for Chubb. “The surge may be the result of a large number of employees who were laid off and have had difficulty finding new employment.”

Padalino says that when employers face employment discrimination charges they should conduct investigations of all charges and report them in a timely manner to their insurance company. “In addition, employers should continually review and adhere to anti-discrimination and anti-retaliation policies and procedures, keep abreast of changes in employment laws and seek outside counsel when facing discrimination charges or considering employee layoffs.”

Cyber Threats Grow

Despite corporate controls, the number of cyber breaches continues to grow, the survey says.

“The increased use of electronic health records, mobile devices, apps and social media offers cyber criminals new places to play,” said Tracey Vispoli, senior vice president and Chubb’s worldwide cyber security liability manager. “As cyber breaches expose more employees and consumers to identity theft, companies are wrestling with higher costs to contain and repair the financial and reputational damage.”
A company’s board of directors needs to understand the risk associated with the theft of employee and customer information, Vispoli advised.

“This is more than just an IT issue,” Vispoli says. “Although companies can help mitigate the risk by following best practices, they also need to have contingency plans in place before a data breach occurs.”

Chubb’s survey of 1,000 Americans was conducted by Opinion Research Corporation, an independent public opinion and market research firm, in April 2011.

Source: Chubb

Serving Small Business in LA/ Regulations

Yesterday I gave a presentation in LA to Marty Keller’s Small Business Advocates Advisory Committee.

While there we heard a presentation by the Mayor’s office [the Mayor attended the meeting] about the changes they are making to be more small business friendly. I found it refreshing to hear that LA has instituted a policy of recognizing small business as their customers.

They said they have instituted a policy of not saying no. When questioned their answers now are 'yes' and 'yes we will look into it'. They also have told their staff that they need to make 5 cold calls a week to understand how they can better serve small business.

For those of you in LA have you noticed a difference?

For those of you outside LA does your City or County have any process to address small business concerns?

I have asked and Marty has agreed to coordinate what Cities and Counties are doing and see if there can be some communication between these different entities. For Example SF has a Small Business Commission and apparently Sacramento has something.

They, in my mind, should be talking to each other and developing best practices. There used to be something in San Jose and San Diego. For those of you in those Cities does something like this still exist?

As I indicated in a previous email Small Business California is looking for examples of burdensome regulations.

We now have put the responses on our website. You can view those by going to www.smallbusinesscalifonia.org.

We need more examples. Please send those to me.

You might also want to think about the permit process in your area. Are you required to get multiple permits and file multiple forms to comply.

Wouldn’t it be great if a One Stop permit process could be developed that would streamline this whole process?


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

Please see below information on SBA budget. This is good news given the pressure to cut spending in Washington.

S.B.A. Spared in Congress 2011 Spending Deal

While many federal agencies will take a haircut in the spending bill negotiated recently between Senate Democrats and House Republicans — total nonmilitary discretionary spending will be cut by 7 to 8 percent from 2010 levels — the Small Business Administration has emerged from the negotiations largely intact.

The bill trims 0.2 percent from every nonmilitary discretionary account, including those that finance the S.B.A. But it also aims at specific programs with deeper cuts, and here the S.B.A. was effectively spared. In February, the House voted to cut $25 million, or about 6 percent, from the agency’s 2011 salaries and expenses budget, which pays for much of its small-business mission, including the counseling grants that the agency passes on to other organizations (such as Score and the small business development centers). In the end, however, House and Senate negotiators restored the appropriation to $433 million. The business loan guarantee programs are financed through a separate account, which also retained its 2010 funding of $236 million.

There is a bill in Sacramento SB 776 sponsored by the California Federation of Labor, the Building Trades and the California Manufacturing and Technology Association which requires that 50% of the Workforce Investment Act funds go directly to into workforce training . According to the California Workforce Association who opposes the bill this would force closure of about 30% of the career centers. Do any of you use the Career Centers? How effective are they? What do you think about this legislation.

It is required that 25% of state contracts go to small business. I have been asked if I would be interested in testifying on the cumulative economic impacts of small business in obtaining these contracts. Some background on this in 2004 the Schwarzenegger administration launched its Strategic Source initiative, and effort to leverage California purchasing power through large statewide contracts for items such as office products and other commodities The savings according to some sources was $160 million. Many of these contracts were taken away from small business. Please note 18% of the states contracts are Strategic Sourcing. What are your thoughts


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

California Regulations

There seems to be a lot of interest in doing a couple of conferences with small businesses on regulations.

While not finalized we are thinking of doing one in Southern California and one in Northern California.

The goal is put together a White Paper on this subject and present it to the Governor and Legislature.

I am going to add as section to our website listing burdensome regulations for small business. I would appreciate you sending to me what is burdensome for your business.

Please see below what is for me very difficult if not impossible for me in my business.

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


The DMV is now auditing agents and brokers for this information. It is a summary of a 53 page handbook and list the requirements of agents and brokers because we obtain drivers license information.

• What privacy policies has the organization established with respect to the collection, use, and retention of DMV information?

• Do you have a written information security program or policy? If yes, please provide a copy of the policy.

• Identify the locations, systems, and methods for storing, processing, transmitting, and disposing of DMV information

• Please describe your procedures in the event of a security breach.

• How are employees with access to DMV information trained in privacy protection?

• Do you maintain an Information Security Statement (DMV Form INF 1128) for each employee authorized to access DMV records (If yes, please provide us with copies of these statements).

• Do you have a list of inactive or terminated employees that had access? (If applicable, please provide us with a copy of this listing).

• How many computer terminals are capable of making inquiries? Where are they located? Are the terminals secured when unattended? Explain how they are secured.

• Your terminals that access DMV records should display a “warning banner” containing some variation of the following admonishment: “WARNING: Unauthorized access or misuse of data may result in adverse action and/or criminal prosecution.” Does this banner display?

• Do you keep a log of all inquiries made? If yes, provide log.

• Describe access controls on computer systems containing DMV information to prevent access by unauthorized staff or other individuals.

• How often are passwords required to be changed? How are password changes initiated?

The questionnaire further requires the agency to provide a copy of the agency’s Requesters Information Security Program or Policy, Information Security Statements for the past two years, a list of inactive or terminated employees, a list of current authorized users, a list of current user terminals, and an inquiry log for inquiries processed in April 2008.

Update on SB 653 City and County Income Tax

Yesterday after I sent the email on Senator Steinberg's City and County Income Tax proposal, I received the 27 pages of the revised bill.

It now has been changed to allow an income tax only on individuals and not businesses. It also says the tax is only on residents and not those working in a City and County that is not their residency.

It also caps the tax at 1%.

What would you think about Small Business California along with other business organizations holding conferences in Northern and Southern California on California regulations?

We would be working with a National organization that puts on this type of conference in states around the country and the goal would be to identify problem areas and figure out ways to streamline California regulations.

This National organization can identify best practices around the country and we can then present the results to the legislature and Governor.
Thoughts?

Would you attend?


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

SB 653

I just found out yesterday that Senator Steinberg has introduced SB 653 which would allow Cities and Counties to put on the ballot an income tax on individuals and businesses. It would also allow them to increase vehicle license fees, alcoholic beverages cigarettes etc.

The bill started out as a two page bill and yesterday became 27 pages.

The interesting thing is that at least in SF they can put on the ballot a new tax that requires only a simple majority.

What do you think?

For more information go to www.leginfo.ca.gov

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

Statement by President Obama on H.R. 4

It is now official 1099 repealed.

Small Business California along with other small business associations worked tirelessly to get this done.

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



THE WHITE HOUSE
Office of the Press Secretary
_______________________________________________________________________________________________________________________________
FOR IMMEDIATE RELEASE
April 14, 2011

Statement by President Obama on H.R. 4

“Today, I was pleased to take another step to relieve unnecessary burdens on small businesses by signing H.R. 4 into law. Small business owners are the engine of our economy and because Democrats and Republicans worked together, we can ensure they spend their time and resources creating jobs and growing their business, not filling out more paperwork. I look forward to continuing to work with Congress to improve the tax credit policy in this legislation and I am eager to work with anyone with ideas about how we can make health care better or more affordable.”

###

Sales Tax on out of State Internet Companies/SB 826

I have written about the tax on out of state Internet companies like Amazon but in the context of AB 153[Skinner].

There is a bill in the Senate SB 155 which would essentially do the same thing. The difference in the bills is that the Skinner bill revolves around nexus . That is that the affiliates for Amazon and other Internet companies would be considered having a nexus and therefore Amazon would be required to pay the tax. SB 155 does not have that provision but says:

“Any retailer that is a member of a commonly controlled group,as defined, and is a member of a combined reporting group,as defined,that includes another member of the retailer”s commonly controlled group that performs services in this state in connection with tangible personal property to be sold by the retailer. Qualifying services include, without limitation, the design and development of TPP sole by the retailer or solicitation of sales of TPP on the retailers behalf”

Bottom line both would impose a tax on out of state retailers like Amazon and Overstocks.

Small Business California supports both.

Dick Durbin Senator from Illinois will be proposing an Internet tax in the Senate I believe April 15. This will be I think a long battle and may not pass so we need to focus on getting something in California.


Small Business California is sponsoring SB 826[Leno].

Yesterday the Senator introduced this bill in the Senate Labor and Industrial Relations Committee. This would impose a minimal penalty on claims administrators who do not file claims information to the Workers Compensation Information Service. Right now it is estimated that somewhere between 15% and 25% of the claims information is not being filed or filed without the proper information. This is important because workers compensation policy is determine by this information.


I am pleased to report that we were successful in getting this passed with no opposition votes. This in spite of the fact that the California Chamber of Commerce, California Manufacturers Association the California Association of Joint Powers Authority and the California Coalition on Workers Compensation had come out opposed last Friday.

We were supported by the California Labor, the Applicant Attorneys and most important an organization representing claims administrators who would be the recipient of the fines. The Insurance company association did not oppose.

While we have not completed our discussion with the opposition groups they backed off their opposition awaiting the results of a compromise of the specifics of how the fines would be levied. It is our position that we do not want this to be punitive and are not interested in technical violations we just want to have good data. For your information the fines were $100 for a violation up to a maximum of $5000 a year.

Thank you Senator Leno.


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

AB 153 Internet Sales Tax/ Economic Impact Report for Superstores SB496/ Volunteers In Medicine

It has just been brought to my attention that AB 153[Skinner] which would require out of state Internet companies like Amazon and Overstocks to collect sales tax at the point of purchase has been taken out of suspense and will be coming before the Assembly Appropriations committee.

This was heard a while back and the vote was 5 to 2 but did not have a majority and went into suspense. This is a very important bill for brick and mortar stores in California and for all small businesses in California because of the record keeping involved in tracking your current purchases.

This week SB 496[Vargas] was heard in the Senate Government & Finance Committee and Small Business California was the lead in testimony support of the bill . This would require on Superstores of 90000 square feet and who’s sales are over 10% of nontaxable goods to do an economic impact report before receiving their permit. The local government jurisdiction would chose the party doing the economic impact report. The bill passed 6 to 3.

Small Business California was responsible for this latter requirement and strongly supports this bill. It will now go to Senate Committee on Environmental Quality.

You all know of my involvement with Volunteers in Medicine and Clinic by the Bay a VIM clinic in San Francisco. VIM takes retired doctors, nurses and lay volunteers who provide free health services to the working uninsured. We do not take any government money.

VIM recently did a survey of their 84 clinics around the country and while certainly not scientific came up with the following information. 67% of the clinics responded.
Obviously we did some extrapolation not having all clinics respond but we came up with the following numbers.

VIM clinics provided health care services to 96,142 friends and neighbors[ patients] with 350,108 patient visits.

The average cost of a patient visits was $76 and per patient $274
!0785 individuals volunteered their time.4852 were medical volunteers and 5933 were non medical.

The 96,142 patients served represents an 18% increase from 2009.

In these difficult times there are a lot of good things happening in our country and I think VIM is just one example.


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

Breaking News HR 4 Passes

Well ---

Small business has prevailed in that this morning the Senate passed HR 4 eliminating the 1099 requirement under the Presidents health bill. It will now go to the President and he will sign it.

Senators Boxer and Feinstein both voted in support of this.

It has been almost a year since we started our battle to get this repealed. This is a real testimony of what small businesses around the country can do when we speak with a unified voice.

Thank you to all that sent letters on this.

We also need to thank Senators Feinstein and Boxer for their support. Thank you Senators.

A special thanks to Congressman Lungren for carrying this bill.It took a lot of effort on his behalf to see this through.


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

Vote on HR 4 (1099 requirement)/Recommended Workers Comp Increase

An interesting development in Washington Friday.

Senator Reid called for a vote on HR 4 which would repeal the 1099 requirement that was part of the Presidents health bill. The vote will be this week and we are cautiously optimistic it will pass. There is an amendment which is expected to fail and then the House bill will be taken up.

It takes 60 votes for passage.

I have been in contact with Senator Feinstein and Boxers office. I did not hear back from Senator Boxer and Senator Feinstein's office said the Senator had not decided but that she strongly wants to eliminate the 1099 requirement for small business. Senator Boxer has made similar comments

Please send me a return email asking Senators Feinstein and Boxer to support HR4. I will forward to their offices.

In California a committee of the Workers Compensation Insurance Rating Bureau recommended a 39.8% increase in pure premium rates effective July 1. This will now go to the full board and then the Insurance Commissioner. The recommendation of the Insurance Commissioner is not binding on the insurance companies.

This number is a little deceptive because it includes State Fund who controls 18% of the market and had a combined loss ratio of over 160% in 2010. Also there are companies making money in workers compensation.

Small Business California will be watching this closely.

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

Paid Sick Leave/ SB 469/AB 52

Yesterday two board members and myself along with the SF Chamber met with Fiona Ma on AB400 paid sick leave.

We discussed the numerous problems for business and it does seem as though she is willing to make some amendments.

The thing though that is probably going to stop the bill from going beyond the Appropriations Committee is that the cost to the state for the In Home Supportive Services is going to cost over $50 million dollars to the state and will cost counties about $27 million.

In this time of budget short falls the legislature is not interested in additional expenses.

Small Business California will continue to monitor this and will let you know if something changes.

Yesterday SB Cal file its letter of support for AB 469 [Vargas]. This bill will require superstores with 90000 square or more and sales with 10% or more in nontaxable sales to obtain an economic impact report and community impact report before receiving a permit.

Small Business California was able to get an amendment on the original bill to allow the governmental jurisdiction to choose who does the economic impact report. We believe this makes sense as the community these superstores are being located in should know the economic impacts and how these stores will affect existing businesses.

It should be noted this is not a measure to stop all superstores. In fact I have been told in Maine where a similar requirement applies the first three economic impact reports were such that the superstores were approved.

We continue to monitor AB 52 [Feuer] which would give authority to the Insurance Commissioner and the Department of Managed Care the ability to regulate health insurance rates when they are excessive. The problem however is in the details and determining what is excessive. It seems to me that there needs to be some objective criteria that prevents politics [as if this is possible] from being a factor in the decision.

Some of you may not know that when Proposition 103 was passed we changed from a file and use state to a prior approval state for most property and casualty insurance. The exception was workers compensation. Health insurance was not part of Prop 103. Quite frankly this seems to have worked pretty well.

Do you have any ideas. It is interesting to note that Senator Feinstein came out in support of 52 yesterday.



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