Small Business Tax Inequity/ Scam on California Businesses

A few weeks ago I indicated that Small Business California was offering a new benefit to our members that being where appropriate sending their concerns and comments to state lawmakers. One of our new members took advantage of this and sent me a letter to the Governor requesting that he look into a tax inequity whereby large material suppliers/contractor pay a different tax on projects to the state than small construction contractors like his. On one job alone where he was the successful bidder his taxes on the project was $21525 and the taxes on the same project by a large material supplier/ contactor was $10700.
It is estimated that if this loophole was closed the state would save hundreds of millions of dollars and small businesses like his would have a level playing field
Small Business California sent a copy of the letter to two representatives of the Governor, Senator Steinberg’s office and Speaker Bass’s office. Barbara Kaufman in the Governor’s office in SF hand delivered the letter to Betty Yee the Chairwoman of the State Board of Equalization.
We of course are going to pursue this. While we may not be as successful with other letters we receive we offer to our members this benefit. If you are not a member please consider joining You can do so by going to our website at www.smallbusinesscalifornia.org
.The author of the letter Skip Brown of Delta Construction has authorized us to send this letter to others so if you would like a copy please let me know

See below information sent by Senator Benoit about a scam on California small businesses

Benoit Special Alert: New Scam Targeting California Businesses
Example Of A Scam Letter Sent
I have just become aware of a new scam directed at corporations and limited liability companies in California. This scheme, which has also been reported in Nebraska and Colorado, purports that certain documents must be filed with the Secretary of State’s office and only through the third party sending the solicitation.
I sought verification of this new pattern of criminal activity and found that, just last Friday, the Attorney General won a $1.2 million ruling against these rip-off artists – this is a massive scam that everybody should keep an eye out for.
The rip-off revolves around a deceptive letter sent by that third party, encouraging these businesses to comply with their California Corporations Code filing obligations by submitting substantial fees and documents to that third party.
The letter is often characterized by the following:
· Appears similar to a Secretary of State form (generally the Statement of Information form), containing an official-looking seal
· Implies that failing to return the form and pay the requested fee may place the business in legal jeopardy, or might cause the business’ filings with the California Secretary of State to be in default or noncompliant status
· Contains a reference to a “file number,” “Corp Number,” “Corporation Number,” or “Control Number” that does not match the number assigned to the entity by the California Secretary of State
· References or quotes Corporations Code sections inapplicable to the type of entity being solicited, such as Code sections applicable to corporations when soliciting a limited liability company
· References an “annual fee” or “annual payment” rather than a filing fee and that is far in excess of the filing fee for a Statement of Information
· Indicates the submitted information will be treated as private and confidential
Businesses are working around the clock to keep customers satisfied and their doors open. With intimidating official-looking letters, it’s not hard to see why many businesses have fallen prey to this type of ruse.

Here is some official information for any business receiving one of these letters: Statement of Information forms and instructions are available through the Secretary of State’s website here, and the fee required to file the statement is $25 for California stock and foreign corporations, and $20 for California nonprofit corporations and all limited liability companies.
If you receive one of these suspicious solicitations, you are encouraged to contact the Attorney General at the California Department of Justice, Public Inquiry Unit, P.O. Box 944255 (Sacramento 94244) or through the website here. You can also reach the Public Inquiry Unit, toll-free, at (800) 952-5225 or (916) 322-3360.
In this time of economic despair, it’s essential to be vigilant against the latest efforts of swindlers to make a quick dishonest buck. I hope this information will help avoid creating additional victims of this scam.
JOHN J. BENOITSenator, 37th Senate District
HOME PAGE BIOGRAPHY CONTACT ME CSSRC
Capitol Office:State Capitol, Room 4066Sacramento, CA 95814Phone: (916) 651-4037Fax: (916) 327-2187
Riverside Office: 5225 Canyon Crest Dr., Ste 360Riverside, CA 92507Phone: (951) 680-6750Fax: (951) 680-6757
Palm Desert Office: 73-710 Fred Waring Dr., Ste 108Palm Desert, CA 92260Phone: (760) 568-0408Fax: (760) 568-1501

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

Launch of Small Business Outreach on AB 32

Small Business California has been asked to sign onto the Business Alliance for a Green Economy. My first reaction when I saw the word Green in the title was that this was an environmental group who really doesn’t care about small business.. I have however looked into the goals of this organization and talked extensively with Susan and find that this really is a business group and in fact at one point Susan worked for a Chamber of Commerce.
While I might have hoped for a more neutral name that would have provided a broader umbrella for all of us, I am convinced it’s in our interest to make our voices known in this critical debate. I urge you to check out the website and statement of principles.
I will be the first to say that AB 32 is not perfect and Small Business California will speak out as it gets implemented putting forth the small business perspective. We have already done this as Hank Ryan and I have served on the committee formed to implement AB32.
Small Business California will be signing onto this and I hope you will consider doing so also. Please note that the Green Business Alliance is linked to the Green Chamber of Commerce and you can click on through the link Support California’s Clean Energy & Climate Security Plan below.
I am in close contact with Susan and I encourage you to contact her if you have any questions. I have copied this email to Susan and her phone number is 650-400-0423. Please let me know your thoughts on this.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188

Support California’s Clean Energy & Climate Security Plan
We all know that climate change is real and its impacts are being felt now. The good news is that solutions to climate change will keep more money in our local economy and drive economic growth.

-By cutting back on energy use, businesses will save hundreds of dollars annually on energy bills. -By driving more fuel-efficient cars and trucks, Californians will save billions at the pump.
-By reducing air pollution and greening our workplaces, businesses will experience increased worker productivity and fewer employee sick days.
-By diversifying our energy supplies and improving energy efficiency, the state’s economy will be protected from the volatility of fossil fuel markets.
-And by shifting to a clean energy economy, more than 100,000 jobs will be added over the next decade.

Shouldn’t all California businesses support this clean energy vision? Yes, but unfortunately oil companies and dirty industries that are the biggest sources of carbon pollution are more concerned with protecting the status quo than with looking out for what is best for California’s small businesses. That’s why we need your help! The Business Alliance for a Green Economy is reaching out to businesses across the state to build support a clean energy future in California.

If you are a California business owner/operator, please sign the Statement of Principles today. Learn the Facts about California’s clean energy & climate security plan and its impact on business. Join the growing chorus of businesses who support the state’s climate plan!

Questions? Email Susan Frank at greenbizalliance@gmail.com.

Increased Workers Compensation Assessments/ Health Bill/CoolCalifornia Small Business Awards

In the budget signed by the Governor on Tuesday there was a provision that said all the operational cost for the Department of Occupational Safety and Health and the Division of Labor Standards will be fully paid for by employers by increased assessments on their workers compensation policies. The increased assessments will raise $67 million and be on top of the $311 million already assessed on businesses workers compensation policies.

Yesterday House Democrats came to an agreement on the health legislation pending. The significance for small business is that businesses with payrolls of $500000 or more will be required to provide health insurance to their employees or pay a charge of 8% of payroll. The bill previously had a $250000 threshold and sliding scale charges up to 8%. The House and Senate will go on recess in August and it is pretty much agreed that this issue will come back for a vote later in the year. I think it is safe to say this is a big step forward but there remains a lot of details that need to be worked out before legislation goes to the President.

CoolCalifornia Small Business Award
Who is Eligible?All California small businesses (under 100 employees) that candemonstrate climate leadership through a commitment toimplementing and promoting climate–friendly practices areeligible to apply for a CoolCalifornia Small Business Award. How are Winners Selected?This new award program will recognize multiple California smallbusinesses from across the state that demonstrate climateleadership. Each business will be scored according to theirclimate change management practices and related communicationstrategies. Applicants will be eligible for one of two awards –up to 20 CoolCalifornia awards will be presented, andapproximately five ‘Small Business of the Year’ awards will beawarded to businesses that demonstrate exceptional achievement. All award recipients’ businesses will be featured on theCoolCalifornia.org website with links to the business’s webpage.The awards will be presented in November 2009 at the CaliforniaAir Resources Board Headquarters in Sacramento. The closing datefor applications is September 3, 2009.How Do I Apply?The application form and more information on the CoolCaliforniaSmall Business Awards can be found at: http://www.coolcalifornia.org/article/small-business-award-program
For more information, please contact Heather Choi at916-322-3893 or hchoi@arb.ca.gov

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

Treasury finalizing $15 billion to help small business Lending/ SBIR Continuing Resolution

Small Business California has been asked by the Department of Industrial Relations to advise you about a program that is available to small employers to help you help you bring employees back to work. Please see information about this.

Very small employers, can you use up to $2,500?

Then you need to know about the state’s “Bring ‘em Back” campaign. There is no need to lose a valued employee to a workplace injury because, through the end of this year, you can be reimbursed for purchases you make to bring that employee back, or keep them on the job, following an injury! That’s because the state’s Division of Workers’ Compensation will reimburse you up to $2,500 for workplace modifications that bring an injured employee back to work.
Getting reimbursed is as easy as filling out a few short forms and providing receipts. In addition to providing reimbursement for purchases that bring an employee back to work or keeping them on the job, the state’s return to work experts are available to provide consultations and presentations for employers, employer organizations or claims administrators on the subject.
Interested in learning more? Follow this link to the state’s http://www.bringemback.org/
campaign page, or go to http://www.dwc.ca.gov/ and click on the “Bring ‘em Back” link in the right navigation pane.
Questions? Contact a representative of the Return to Work Reimbursement Program at (510) 286-6990 or DWCReturntoWork@dir.ca.gov.

The Washington Post reports that the Treasury Department is finalizing a $15 billion initiative to stimulate lending by the SBA by using Federal Funds from the Federal bailout program to buy up SBA loans. Hopefully if put in place this will help small businesses access capital. The Post says “While SBA credit markets are healthier than several months ago, they remain vulnerable to a relapse if,for instance, the wider financial industry suffers another crisis of investor confidence”
On the Small Business Innovative Research front the Senate on Friday passed a continuing resolution that would extend the SBIR program for another two months to September 30. As I have mentioned previously the SBIR funding will end July31st without this continuing resolution.
It is expected to pass the House today. According to people I am working with in Washington both the House and the Senate are negotiating in good faith to find a resolution to the venture capital problem.
I continue to get calls from the media on the health issue. I welcome any of your thoughts and letting me know if you will talk to the media.

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

Health Debate

I am sure you are following the health debate in Washington. It is Small Business California’s position that there needs to be more cost containment in both the House and the Senate bills[one in the House and two in the Senate]. Having said that, I think it is important when we talk about cost containment, we do it in the context that quality of care can also be improved with cost containment
I believe when people hear the term cost containment without the quality discussion, it is thought of as just reducing cost and quality of care goes down. I contend this is not necessarily the case. For example reducing hospital cost by eliminating staph infections is a cost reduction and improves the quality of care. In Pennsylvania they have drastically reduced staph infections by monitoring the hospitals and reducing payments when staph infections occur. These are preventable.
Disease management, Electronic medical records and pay for performance just to name a few also reduce cost and improve quality of care .
I think it is important when you are speaking to people on this issue that you keep this in mind and try not to use the term cost control without the quality of care discussion being included.
For those of you that are advocates for small business this is really critical in your discussions.

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

FLASH: SCIF Sale Still There

While all the details are not in it appears the budget includes the sale of State Fund raising $1 billion. Small Business California has opposed this as we feel it could have a severe impact on small businesses that remain in State Fund. These small businesses include businesses that have no other options because they are in a high hazard industry.
The details of the sale have not been explained but it seems to us if the better business in State Fund is sold off that would mean that the remaining businesses would have their rates increase.
I really would appreciate your comments and letting me know if you are currently covered by State Fund.
See link below.

www.wcexec.com/articles/WCE01-20090721-001.html

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

CIT $3 Billion Rescue

In a last minute deal CIT will receive $3 billion from major bondholders to keep the company out of bankruptcy. This gives the company time so that it can put together a debt exchange offer to meet its debt of $7.4 billion which comes due in the first quarter of next year.
Besides loans through the SBA CIT is a major short term financier to about 2000 vendors that supply 300000 stores. According to the NY Times ,analyst say 60% of the apparel industry depends on CIT for financing.

On August 20 Small Business California will be hosting a fund raiser for San Francisco small business leaders over the last 25 years. San Francisco has a rich history of small business leadership over that time and as such has gotten passed by the voters the creation of a Charter Small Business Commission. I believe it is the only Charter Commission in the United States. Attending the event will be at least one past Mayor, members past and present from the SF Board of Supervisors and state legislators past and present. The proceeds of the event will go to Small Business California and Clinic By the Bay a Volunteers In Medicine clinic in SF.

Small Business California is always looking for ways to benefit our members. For our members only we will selectively send your emails to lawmakers, media and others where you have an opinion or problem. We have a lot of contacts and we believe your voice can be strengthened by our knowledge of where to send your thoughts. We focus on state issues so this is limited to state people. We also cannot guarantee results and will not send inflammatory comments.
Let me cite examples of where we have done this. A member contacted us on a problem they were having with EDD. We contacted Fiona Ma’s people in SF and the problem was resolved. Another member contacted us on a problem they were having with the state contractor’s license bureau and we referred them to a Governors representative and resolved the problem.
Again we cannot guarantee results but we think this is a major benefit to our members. If you are not a member we hope you will consider joining and taking advantage of this new benefit.

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

SB-Cal Letter to Timothy F. Geithner regarding CIT

Small Business California is sending a letter today to Timothy Geithner asking him to take the lead in saving CIT. While CIT is the immediate need we are also stressing that small business needs to have more access to capital.
I am getting calls from the media asking if I know small businesses that are impacted by the CIT situation. If you are one of their customers I would like to hear from you. I would also like to know if you would talk to the media.
Please tell me your story.

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

SOS: Stop VC bailout at expense of small business

Scott Hauge, founder and president of Small Business California, and Christopher White, of the Bay Area Innovative Alliiance, are sounding the alarm on behalf of small business.
Next week, Congress is scheduled to vote on reauthorization of the Small Business Innovation Research (SBIR) program, which directs $2.2 billion annually in federal grants to small technology businesses across the country.
The problem, according to Hauge and White, is that the House bill contains a provision which changes the definition of small business to include subsidiaries of multinational corporations and companies that are majority-owned by multi-billion venture capital funds and other large financial institutions, including foreign financial institutions.
Click here to read their statement. They recommend that people call Rep. Nancy Pelosi's office and Rep. Jackie Speie's office to oppose the changes and keep the original SBIR small business eligibility criteria in place.

Bruce B. Brugmann
SFBG
Founder/Publisher

SB 356 / Cal Cobra

SB 356 passed on a 6 to2 vote yesterday. This is the bill to give small business more input on regulations being put forth by state agencies. Supporting the bill was Aanestad,Correa,Negrete McLeod, Walters Wyland and Yee. Opposed was Florez and Romero. Senators Corbett and Oropeza did not vote.

This bill has a long way to go as it will go to Senate Appropriations and will most likely go to the Suspense File. It must come to the floor of the Senate by May 29th. The goal will be to get it out of Suspense and passed before that date. Thank you to all that wrote letters.
This was a major victory for small business and the small business coalition that has been formed. Small Business California through our lobbyist Lori Kammerer testified in support of the bill yesterday and her and I worked many of the members of the Committee. This bill is sponsored by the National Federation of Business and the California Small Business Association.
AB 23 passed yesterday in Senate Appropriations yesterday and will go to the Senate Floor. It will then go back to the Assembly for concurrence and then to the Governor.

This is the bill that will implement Cal COBRA’s ability to comply with provisions of the economic stimulus package. As most of you know Cal COBRA applies to businesses with 2 to 19 employees and this bill will allow the 65% subsidy for employees on their COBRA health insurance who have been involuntarily laid off from September 2008.

The notices should be going out to those employees shortly after the Governor’s signature. These notices and the subsidy will be handled by insurance carriers.


Scott HaugePresident
Small Business California
2311 Taraval StreetSan Francisco, CA 94116
shauge@cal-insure.com
415-680-2188

Business Survey/ COBRA/Obama Budget

If you haven’t done so already please complete the business survey we have put together along with the California Workforce Investment Board, NoRTEC, the Assembly Committee on Jobs,Economic Development and the California Workforce Association.

Data is being collected to determine possible gaps and overlaps in workforce services available to businesses throughout the State. Information will be used to help improve the design and delivery of program services.

As you know education and workforce development came up as the second most important issue for small businesses in California.The survey is available here: www.zoomerang.com/Survey/?p=WEB228W4AW4MCE
Thank you for taking a few minutes to help us make a difference

Last week I indicated that the forms are out for employers who have 20 or more employees to notify employees of their COBRA options. This must be sent to employees
By April 18. If you do not send there is a fine of $110 a day and you could have civil liabilities. If you need the forms please let me know and I will send them to you.

There is a lot of discussion about President Obama’s budget. Do you support it as a budget that will get us out of the recession or do you think it is putting too much debt on the country?

Scott HaugePresidentSmall Business California2311 Taraval StreetSan Francisco, CA 94116shauge@cal-insure.com415-680-2188

Workers' Comp Increase/ PG&E Victory/COBRA

I sent to all of you the Workers Compensation Insurance Rating Bureau Actuarial Committee recommendation of 27% effective July 1 for all new and renewal workers compensation policies. Yesterday the Board of Governors of the Bureau recommended 24.4%.It now goes to the Insurance Commissioner.

Hank Ryan representing Small Business California spoke at a CPUC hearing a few weeks ago against a rate increase by PG&E for small businesses. Last week the CPUC ruled against the PG&E increase. I believe we were the only business organization that spoke against the rate increase. TURN represented residential users and that increase was denied also.
Hank Ryan representing Small Business California is an intervener at the CPUC and he speaks out frequently at the CPUC on behalf of California small businesses.

It is expected that the Federal government will produce the notification form today for employers that are subject to notifying their employees of their COBRA options. For employers with 20 or more employees you will need to send this form to all employees who have been involuntarily terminated September 1,2008 or after.This applies only to those employees that had health insurance through your company. You will be required to pay 65% of your employees premium and will receive a refund from the Federal government
For those employers with 2 to 19 employees your insurance carrier will be sending notice and you will not be required to advance the 65%.

One interesting note is that if you are subject to Federal COBRA[20 or more employees] you are allowed to add 2% for administrative cost. If however you are under state COBRA[ 2 to 19 employees] the insurance company send the notice and bills the employee and can charge 10%.
If you would like a copy of the notification form please look on our homepage at www.smallbusinesscalifornia.org

Scott HaugePresidentSmall Business California2311 Taraval StreetSan Francisco, CA 94116shauge@cal-insure.com415-680-2188

Small Business Survey Results / NSBA

The results of our survey are in. 616 of you completed the survey and we received at least one survey from every county in the state.

Some of the findings are:
85% say the state is generally heading in the wrong direction
81% say the economy for small business is poor or very poor
61% of you said your revenues were declining
52% said you are reducing employees or reducing employee hours.

As for issues:
Health Insurance-80% said this was the top or high priority
Quality of Public Education- 70% said this was the top or high priority
Regulations- 61% said this was the top or high priority
Repairing State Infrastructure- 61% said this was the top or high priority
Access to Capitol-57% said this was the top or high priority
Awarding State Contracts to Small Business- 57% said this was the top or high priority.
See complete survey results by going to our website www.smallbusinesscalifornia.org

I would like to thank Jim Ross and Jim Ross Consulting in SF for all the help he has provided us in making this survey possible.

Our partner the National Small Business Association is asking for help in developing a website on how small business owners are dealing with the increasing cost of health insurance.NSBA would appreciate any help you can provide and maybe you would be willing to provide a profile. See below. If I can provide any additional information please give me a call.

Scott HaugePresidentSmall Business California2311 Taraval StreetSan Francisco, CA 94116shauge@cal-insure.com415-680-2188

NSBA is in the process of developing a Web site which will focus on how small-business owners are dealing with the increasing cost of health insurance. The site will include information about NSBA's health care policy, resources and other policy statements that are in-line with NSBA's (including documents from NSBA CORE members), links to relevant legislation, data and statistics from both outside sources and the NSBA health care survey (see below), and profiles of small-business owners on the challenges they're facing.

I'd greatly appreciate any input you might be able to provide--reports, studies, statements from your organizations, etc... I'd also like to ask for your help in getting out two requests to some of your folks.

1) We're in the process of getting small-business profiles and, ideally, would like to get a high-resolution picture of the business. We're only looking for a brief description of the challenges their business is facing in coping with the costs of health care - anything from 3 sentences to 2 paragraphs will be perfect and we don't have to have a picture. These profiles can be e-mailed directly to me at mbrogan@nsba.biz. I've attached the e-mail request I used here for you.

2) The survey link below is active until middle-to-late next week. If you can send this survey along to any of your members, I'd greatly appreciate it.

Please feel free to contact me with questions or suggestions. Thank you in advance for your help on this!

Regards,
Molly
202-293-8830

COBRA and Stimulus Package

I mentioned that under the COBRA provisions in the stimulus bill small business will have some additional obligations for employees that have been involuntarily terminated. I have received additional information since that email and would like to pass it on to you.
First this will not only apply to Federal COBRA but state COBRA so if you had two or more employees from September 2008 and have laid off employees you will need to notify those employees that they are eligible for a 65% subsidy on their insurance. This notification provision will be required until Jan 1 2010.
If you have 20 or more employees and your employees have opted for COBRA you will be required to advance 65% of the premium and then submit to the Government for reimbursement. When you submit your request to the Government you will need to file a report that includes and attestation of the involuntary termination of the covered employee, the calculation of the offset, a report of estimated offsets for the next reporting period, the TINs of covered employees, the amount of the subsidy to each individual and information as to whether the subsidy provided was for individual or family coverage.
If you have 2 to 19 employees your insurance company is probably billing the exemployee. Needless to say insurance companies are scrambling right now to figure out how they will do this especially given the required information that they must provide to receive reimbursement.
Another provision you should be aware of is that exemployees will have a second chance to take up this COBRA option so in effect it seems to me that if you have laid off employees you will need to advise them of this option.
If you want more detailed information please look on our homepage at www.smallbusinesscalifornia.org


Scott HaugePresidentSmall Business California2311 Taraval StreetSan Francisco, CA 94116shauge@cal-insure.com415-680-2188

2009 Small Business California Survey!

Last week I sent out our annual survey and the response has been a bit slow as we have just under 100 responses. Please take a few moments to complete the survey and forward to other small business owners. This is our chance to tell legislators and the Governor what small business is thinking and what are our concerns.
The results of the survey will be sent to every legislators and the governors office. It also sets the agenda for Small Business California.
Please help us help you.
http://www.zoomerang.com/Survey/survey-intro.zgi?p=WEB228QR44U46V

Scott Hauge
PresidentSmall Business California
2311 Taraval StreetSan Francisco, CA 94116
shauge@cal-insure.com415-680-2188

Domestic Partners, Same Sex Marriage

You all have probably seen that it appears Prop 8 is going to pass. Did you know however that regardless of the passage of Prop 8 that if you have a Domestic Partner of one of your employees and they are paying their health insurance premiums through your group plan that the Federal government does not allow a deduction of the premiums from the Domestic partners income tax. In fact they will impute a cost on this. This is also true if you have a same sex marriage.
The state of California does allow a deduction.
I don't want to confuse the issue but I have found a number of small businesses treat the money the employee pays to the group plan for their employees and maybe children as if it automatically is pretax dollars. This is not the case unless you have a 125 plan or maybe a health reimbursement account set up.
Please consult your accountant on this and if you would like to receive information on how the Federal government imputes the tax please let me know.


Scott Hauge
President, Small Business California
shauge@cal-insure.com
415-680-2188

Small Business California

Small Business California recognized San Diego Gas& Electric and Frank Spasaro for their efforts in implementing On Bill Financing for small businesses. The ceremony was at the Army Navy Academy in San Diego which was one of the first organizations to take advantage of On Bill Financing. They received from San Diego Gas &Electric a loan at 0% interest and have paid it back in about one year using the savings on their energy bill. They said had it not been for On Bill Financing they would not have been able to take advantage of the cost savings available to them by the retrofit.
Small Business California created this program in California. While San Diego Gas & Electric is clearly in the lead on this, PG&E and Southern California Edison have come on board and will also be implementing an On Bill Saving program.
You may not be aware that Small Business California has Intervener status at the California Public Utilities Commission and we have pushed hard move this program forward. We are also playing a major role Nationally in pushing for On Bill Financing and have been in discussion with the SBA about this. Hank Ryan our Executive Director has been incredible in representing us on this issue.
On another front you all are aware that Small Business California sponsored SB 869 which goes after businesses that are not providing workers compensation coverage for their employees. The second batch of letters have been sent by the Workers Compensation Rating Bureau to employers that were provided to them by EDD. As was the case with the first 500 letters sent 15% of the businesses that received these letters had no workers compensation coverage. It is clear that there is major problem in California with businesses literally breaking the law and hurting legitimate businesses that are playing by the rules.
I hope you agree that Small Business California is making a difference for small businesses in California. If you haven't done so already please join our organization. The cost is $150 for businesses with less than $1 million receipts and $300 for those over $1 million.We need your help to. You can find out what we are doing by visiting our website at http://www.smallbusinesscalifornia.org/
The application for membership is available on the website.
Scott HaugePresidentSmall Business California2311 Taraval StreetSan Francisco, CA 94116shauge@cal-insure.com415-680-2188

SB-Cal Activities

You all know that SB Cal is the lead small business organization in the state on energy issues. What you may not know is that we have intervener status at the California Public Utilities Commission. Hank Ryan our Executive Director represents us and in my opinion is the most knowledgeable person in the state on these issues. Yesterday he filed his comments to the CPUC regarding On Bill Financing. On Bill Financing exist in California due to his efforts. I also want to note that San Diego Gas &Electric is approaching $2 million in On Bill Financing and they have clearly been the leader with the Investor Owned Utilities.

Based on our survey the number 2 issue for small businesses in California is education and workforce development. Ginne Mistal, our board member in Redding, is working with the California Workforce Investment Board to develop best practices of local Workforce Investment Boards around the state.On September 11, she went to a meeting of the California Workforce Association and presented the questions SB-Cal and the California Workforce Investment Board developed. I might note that we had a lot of assistance from NORTEC who run some great programs in I believe 10 counties in the Redding, Chico, Yuba area.

Scott Hauge
PresidentSmall Business California

Small Business Exemption

You all have heard by now that the Senate and Assembly passed a budget. The good news is we got an exemption for small businesses. The bad news is that instead of getting the exemption for businesses under $5 million it is for businesses under $500000.

We of course are disappointed with the reduction but without the leadership of Small Business California and the 35 associations that fought for the this there would have been no exemption.

Scott

Loss Carryover Letter

Dear CA Small Business:

Please copy and paste the letter text below to your company letterhead and send to me at shauge@cal-insure.com. Please fill in your name, title, and comany name. Thank you.





July 25, 2008


The Honorable Dave Cogdill and The Honorable Don Perata
California State Senate
Sacramento, CA 95814

The Honorable Karen Bass and The Honorable Michael Villines
California State Assembly
Sacramento, CA 95814


Re: Exemption for small businesses from loss carryover tax suspension

Dear Senators and Assembly Members:

I am a small business owner in California. I am very concerned about the proposal from the Senate/Assembly supporting the Net Operating Loss Carryover.

This proposal is being put forth as a big business tax loophole, but in reality it effects over 6 small businesses (under $5 million in receipts) for every 1 large company.

This measure would have a devastating impact on start-up businesses, small businesses interested in expanding and small businesses impacted by the cyclical economy.

I urge you to seriously consider the impact of this measure and if it does move forward, exempt businesses with less than $5 million in revenues. Thank you.



Regards,

Name
Title
Company

California Tax Measure Adversely Impacts Small Business: Please read!

Please see Press Release below:


Public Relations NEWS RELEASE


Client: Small Business California Date: July 23, 2008
San Francisco

Contacts: Paul von Beroldingen Scott Hauge, President
PVB Public Relations Small Business California
Off 415•751•1858 + Cell 415•264•8524 Off 415•680•2109 + Cell 415•699•9100
E-mail: paul@pvbpr.com E-mail: shauge@cal-insure.com

California Tax Measure Adversely Impacts Small Business

Organizations working on behalf of 3.2 million small businesses

request exemption from loss carryover tax suspension

SAN FRANCISCO, July 23 — Prestigious business organizations throughout California are urging Sacramento legislators and Governor Arnold Schwarzenegger to grant an exemption for small businesses in a proposed tax measure suspending net operating losses for three years.
The controversial tax measure — one provision in a state budget plan calling for $8.2 billion in new taxes — is designed to close a loophole for large corporations and generate $1.1 billion for the state. But small businesses earning less than $5 million in revenue may suffer the most negative effects.
“Although 80 percent of the total taxes would come from businesses with more that $5 million in revenues, more than six small businesses would be impacted for every large one,” according to Scott Hauge, founder and president of Small Business California, a business advocacy organization, and president of CAL Insurance & Associates in San Francisco.
“California’s economy is driven by 3.2 million small businesses that struggle to endure economic downturns, while investing in future growth and creating most of the new jobs at considerable personal and financial risk,” Hauge adds. “The issue is not just a ‘small business’ issue. It's really about the state's overall economy.”
Companies in California are permitted to carry forward net operating losses incurred in one year and use them as deductions against earnings in future years. The proposed budget would suspend the losses for three years. If a business operates at a loss — often the case with start-ups or businesses that add employees, expand inventory or upgrade equipment — it could not carry over that loss in subsequent years to mitigate the tax burden.

(more)


Tax Measure Adversely Impacts California Small Business — NEWS RELEASE Page 2 of 2


The list of 29 organizations signing a letter to state legislators requesting the exemption includes key chambers of commerce, local merchant groups, and statewide manufacturing and building associations:
Asian Business Association of Orange County
Associated Builders and Contractors of California
Building Owners and Managers Association of San Francisco
California Association of Competitive Telecommunications Companies (CALTEL)
California Association for Micro Enterprise Opportunity (CAMEO)
California Chapter of the American Contractors’ Association
California Employers Association
California Fence Contractors’ Association
California Metals Association
Engineering Contractors' Association
Flasher/Barricade Association
Golden Gate Restaurant Association
Los Angeles National Association of Women Business Owners
Marin Builders’ Association
Napa Chamber of Commerce
National Association of the Remodeling Industry San Francisco Bay Area
Oakland Metropolitan Chamber of Commerce
Plumbing Heating and Cooling Contractors of California
San Diego Chamber of Commerce
San Francisco Chamber of Commerce
San Francisco Council of District Merchants Associations
San Francisco Hispanic Chamber of Commerce
San Francisco Marina Merchants Association
San Francisco National Association of Women Business Owners
San Francisco Small Business Advocates
San Francisco Small Business Network
Small Business California
Small Business Majority
Small Manufacturers Association of California

# # #
NEWS MEDIA CONTACT:
Paul von Beroldingen Scott Hauge, President
PVB Public Relations Small Business California
Office: 415•751•1858 Office: 415•680•2109
Mobile: 415•264•8524 Mobile: 415•699•9100
E-mail: paul@pvbpr.com E-mail: shauge@cal-insure.com

SB-Cal Successes

Last week was a good week for Small Business California. At a Workers Compensation Forum in Monterey John Duncan the head of the Department of Industrial Relations announced the implementation of SB 869. This bill as you may recall had EDD send to the Workers Compensation Insurance Rating Board [WCIRB]names of businesses to see if they have workers compensation coverage. The underground economy is a big issue for small businesses as you well know and this will begin to level the playing field. Mr. Duncan indicated that the first 500 names were sent to the WCIRB last week and applauded Small Business California for putting forth this bill.

Small Business California owes a big debt of gratitude to Christine Baker and Lach Taylor from the Commission on Health and Safety and Workers Compensation and to Lori Kammerer our lobbyist in Sacramento.

Secondly our bill AB2181 Ruskin was passed on consent calendar in the Assembly. This bill requires insurers to provide information to businesses upon there first lost time workers compensation claim about possible lawsuits that could arise from 132a claims[wrongful termination] and Fair Employment and Housing[ FEHA] claims for not following the interactive process.

Lastly I made a presentation at the Workers Compensation forum in Monterey on Thursday representing small business and the impact of the workers compensation reforms and our vision of what is going to be the future of workers compensation for small businesses in California.

One final note for those of you that may not have heard the WCIRB has recommended no increase in workers compensation rates in July.

Scott Hauge
President, Small Business California.

SB 1490: Independent Contractors

We all know that misclassification of Independent Contractors is a problem in California. We also know that there is a lot of confusion by small business owner what constitutes an Independent Contractor and in some cases the definition by EDD and the IRS are different.
SB1490 has been introduced by Senator Padilla. What it does according to the analysis by the Senate Committee on Labor and Industrial Relations

" Requires a person employing labor in California to provide an individual hired as an independent contractor a form developed by EDD that includes 1 a notice that the individual has been hired as an independent contractor 2 the factors EDD uses to determine to determine whether a person is an employee or an independent contractor 3 a statement explaining the impact that the individual's status has on his or her tax obligations and eligibility for labor and employment protections and 4 a notice of the individual's ability to request from EDD a determination as to whether the individual is an employee or independent contractor and means by which this determination may be obtained.

Requires an employer to maintain, for not less than two years, specified records identifying all persons hired as independent contractors and to make those records available for inspection upon request of EDD, a member of the Industrial Welfare Commission, or the Department of Industrial Relations.

Grants an individual hired as an independent contractor the right to request a determination by EDD as to whether he or she is an employee or independent contractor.

Expands the application of existing civil penalty and misdemeanor provision to the compliance requirements for record keeping and access with respect to independent contractors
Gives EDD power to develop the required form, to process the request for a determination, and to take all steps reasonably necessary to carry out the duties relating to independent contractors specified in the bill."

Please let me know your thoughts on this? Do you think this is important to small business. I will be talking to the point person in Senator Padilla's today. Your views will be expressed

Small Business: 70 Million Strong and Voting

Small Business California Partners with NSBA to Kick-off Outreach Campaign

Small Business: 70 Million Strong…And Voting

Washington, D.C. — More than one in two people in the U.S. private workforce work for or run a small business, according to data from the U.S. Small Business Administration Office of Advocacy and U.S. Census Bureau. To underscore the significance of this number, the National Small Business Association (NSBA) today unveiled a broad campaign, “Small Business: 70 Million Strong…And Voting” to educate lawmakers, candidates and the public on the importance of small business.

“For the past 15 years, small business has created on average 93.5 percent of all net new jobs and comprised 99 percent of all employers, yet continues to be an afterthought for many lawmakers and candidates,” stated NSBA President Todd McCracken. “This campaign will help us change how people think and talk about small business.”

NSBA is working closely with affiliate members across the country to get the word out about the significance of the overall small-business community. The campaign aims to address the lack of small-business focus in the 2008 election season by urging every small-business owner and employee in the U.S. to speak out as part of the overall small-business community.

The importance of small business isn’t disputed. In fact, in the 2007 Harris Interactive Poll, Confidence in Leaders of Major Institutions, 54 percent of adults expressed a great deal of confidence in small-business owners—the only group in the past three years to garner such a high rating from a majority of people. The target for NSBA is to get people talking about, and recognizing, how truly broad and significant the small-business community is to the U.S. economy.

“Beyond the very positive attitudes people have about small business, we want to drive home the point that small business comprises 33 percent of the voting population in the U.S.,” stated Scott Hauge. “We want to let people know that the small-business community is a force to be reckoned with.”

Since 1937, NSBA has advocated on behalf of America’s entrepreneurs. Reaching more than 150,000 small businesses, NSBA is proud to be the first national small-business advocacy organization in the United States.


Scott Hauge
President
Small Business California

Small Business California Successes

I am pleased to let you know that the Small Business California sponsored bill SB 869 was signed by the Governor last week. This bill will go after businesses that are not providing workers compensation for their employees thereby creating an unlevel playing field for those of you that are playing by the rules. In brief what it does is have the EDD provide to the Workers Compensation Insurance Board Rating Board [ WCIRB] a list of employers and the WCIRB cross checking the list with there list of employers with workers compensation.
Thank you to all of you that sent letters of support for this. We also owe a lot of thank to Lori Kammerer our lobbyist, Senator Mark Ridley Thomas the bills author, Luanne Murikawa the legislative assistant to Senator Ridley Thomas and Lach Taylor at the Commission on Health Safety and Workers Compensation[CHSWC] and Bill Zachary from Safeway.
The person however that really made this happen was Christine Baker the Executive Director of CHSWC. Christine worked tirelessly with us and is one of the best friends small business has in state government I would like to ask all of you to send an email of thanks to Christine. She can be reached at CBaker@dir.ca.gov. Thank you Christine for all you have done for us.
On Thursday I will be going to Washington and presenting the Small Business California Energy Hero award to Senators John Kerry and Olympia Snowe and Small Business House Committee Chair Nydia Velázquez for their legislation to help small businesses be recognized in the efforts to reduce reduce global warming. We are 50% of the economy of this country and these people have not only acknowledge this but put forth legislation to help us. The legislation is now part of the overall energy bills in the house and the Senate. Joining me will be Byron Kennard from the Center for Small Business and the Environment, Kyle Kempf from the National Small Business Association, John Arensmeyer from the Small Business Majority and Chris Lynch from the Small Business Development Center in Pennsylvania.
On Friday Small Business California will be part of a Senate hearing put together by another small business hero Byron Kennard from the Center for Small Business and the Environment.
Friday afternoon and through the weekend I will be representing Small Business California at a conference we are co sponsoring for Volunteers in Medicine. I am the Vice Chair of this great organization which develops free clinics around the country for the working uninsured. We now have 57 clinics and what we do is take retired doctors ,nurses and dentist who provide health services to these people that are making to much money to be able to get public assistance and yet cannot afford health insurance for themselves and their families. Please visit our website at www.vimi.org

Small Business California is making a difference. I hope you are proud to be a part of our organization. I would like to acknowledge Hank Ryan from the SB Cal board for all that he has done for small business in the energy area. He is in my opinion the most knowledgeable person in the country on small business energy issues and has had remarkable success in promoting On Bill Financing not only in California but around the country. Last week the CPUC endorsed On Bill Financing and said that it will take effect around California in 2009.



Scott Hauge
President
Small Business California
phone: 415 680-2188

Healthcare Reform NOW!!

Dear Small Business California,

Small Business California believes the number one issue for California small business is health insurance. We urge you to sign on to our health campaign by going to our voter voice page at:

www.votervoice.net/groups/sbca

If you are new to votervoice, please register and you will then be able to sign on to a letter that will be sent to the Governor, Senate and Assembly members, and the Committees on Health via email and mail. If you have registered with votervoice, simply log on and sign on. When finished, please forward the link to others you know to increase our support effort. For further information on the health debate here in California, visit our website at www.smallbusinesscalifornia.org and check out the link under "News and Updates" to the Governor's "Fixing Our Broken Healthcare System" website. If you would rather send your own letter of support, without using voter voice, please reference the letter attached and contact information for the Governor, Assembly Speaker Nunez and Senator Perata (see below). This is very important. This will be the last thing I will ask you to do this year. Thank you for your support!




Scott Hauge President Small Business California
phone: 415 680- 2109
www.smallbusinesscalifornia.org
www.smallbusinesscalifornia.blogspot3.com

"The voice of California Small Business"




Contact Info via email for the Governor, Senator Perata and Assembly Speaker Nunez:

Governor Arnold Schwarzenegger can be emailed on his website @ http://gov.ca.gov/interact#

Assembly Speaker Nunez can be emailed on his website @ http://www.assembly.ca.gov/clerk/MEMBERINFORMATION/memberdir_1.asp

Senator Don Perata's email address is Senator.Perata@sen.ca.gov

Please use our campaign letter attached as reference if you wish. Thank you.

Small Business Energy Efficiency

As you all know last month I testified before the Senate Small Business committee on behalf of the National Small Business Association and Small Business California. Testifying with me was Byron Kenard from the Center for Small Business and the Environment and Chris Lynch from the Pennsylvania Small Business Development Center.
As a result legislation has been introduced per the below email from Brian Rice in Senator Kerry's office.
What is particularly significant to Small Business California is the reference to On Bill Financing that Hank Ryan has been working on around the country. It is good to see our efforts paying off. We now have a bill in the House and the Senate to help small businesses in the energy arena.
I would also like to thank Kyle Kempf from the National Small Business Association for all his efforts in helping me with my testimony and efforts in getting small business recognized in Washington.


Scott Hauge
President
Small Business California



Email:


Byron,

Senator Kerry and Senator Snowe introduced the attached legislation, and filed it as an amendment to the energy bill. Please take a look, we look forward to hearing what you think. Specifically, the bill does the
following:
Small Business Energy Efficiency (Kerry/Snowe)
* Requires the Small Business Administration (SBA) to implement an energy efficiency program that was mandated in the 2005 Energy Policy Act.
* Establishes a program to increase energy efficiency through energy audits at Small Business Development Centers (SBDCs).
* Authorizes the Administrator to guarantee "on-bill financing"
agreements between businesses and electric utility companies, to cover a utility company's risk in entering into such an agreement.
* Creates a telecommuting through a pilot program at SBA. The SBA Administrator is authorized to establish a program that produces educational materials and performs outreach to small businesses on the benefits of telecommuting.
* Creates a priority status within the SBIR and STTR programs that ensures high priority be given to small business concerns participating in energy efficiency or renewable energy system research and development projects.
* Establishes loans for businesses seeking to transfer to renewable sources of energy.
-Brian

Health Care Compromise

I would be interested in your thoughts on this as this means if passed that all employers would have to pay 7.5% into their employees health cost and individuals would not be required to get coverage.

As Follows:

State Democrats to unveilcompromise health planThe bill would reject Gov. Schwarzenegger's call for mandatory insurance but require all employers to spend at least 7.5% of payroll costs on healthcare.By Jordan Rau and Evan Halper, Times Staff Writers11:23 AM PDT, June 21, 2007 SACRAMENTO -- The Legislature's Democratic leaders have agreed to require all California employers to spend at least 7.5% of their payroll costs on healthcare but have rejected Gov. Arnold Schwarzenegger's proposal that everyone in the state obtain insurance.State Senate and Assembly leaders this morning planned to announce their joint healthcare bill, a combination of two similar proposals recently passed by each chamber.Most significantly, they agreed to drop the Senate plan to require that Californians with more than modest incomes get insurance. That was intended to be the middle ground between Schwarzenegger's insistence on universal coverage and the Assembly's rejection of any requirement that people have insurance.Senate President Pro Tem Don Perata (D-Oakland) and Assembly Speaker Fabian Nunez (D-Los Angeles) also agreed to apply the business requirement to every enterprise except the self-employed. The Assembly plan provided large exemptions for businesses with only one employee, those with payrolls of less than $100,000 and those that had been in operation for three or fewer years.At a morning news conference in Sacramento, Schwarzenegger praised lawmakers for moving forward but said, "The only way the healthcare reform is going to work is if you have mandatory healthcare insurance."He downplayed the significance of the Democrats' legislation, saying the final outcome would be worked out in private negotiations and could turn out dramatically different."What you see now is not really what counts," he said. "What counts is the outcome. And it can turn very quickly."Schwarzenegger dismissed a suggestion that his healthcare proposal, unveiled in January, conflicted with his reelection campaign promise not to raise taxes. An opinion from the Legislature's nonpartisan counsel said the governor's plan to raise $4.4 billion a year from assessments on employers and healthcare providers qualified as a tax, not a fee as the governor maintains."I don't get kind of tied up on 'is it a tax, is it a fee,' " Schwarzenegger said. "To me, I look at it as a fee. I stick with that."The distinction is significant because taxes require two-thirds support in the Legislature, something Democrats cannot muster alone and Republicans have so far been loath to back.

jordan.rau@latimes.com

evan.halper@latimes.com

Small Business California Update

From: Scott Hauge

I want to give you an update on what Small Business California has been doing the last few weeks.
First we continue to be involved in the health debate and are looking at the possibility of doing a statewide survey of small business and their positions. We may even do a statewide media campaign. If we do this we will have to move very quickly as session closes in September. I hope all of you will respond to the survey. If we do a media campaign I would appreciate knowing if you would be willing to talk to the media in your area. Please let me know by return email.
Second we have a position on the task force that will be involved in implementing AB2330 [Arambula]. This was the bill that required the state to do a study of the cost of regulations for small businesses versus larger businesses. I think this is really important as the Federal government has done this and their is about a 40% difference between larger companies and companies with less than 20 employees. Marty Keller who was recently named as the Governors Small Business Advocate is heading this up and I must say I was very impressed with the way he handled the meeting Tuesday.
Third our bill SB 869 will be moving to the Assembly. This is the bill that will go after businesses not providing workers compensation for their employees. I will be asking you at some point to send letters of support for this bill as it moves through the Assembly.
Fourth I have been named to a state Fraud Task Force. My issue based on what you have told me is the underground economy.
Fifth as you know I was named to the Advisory group that will implement AB 32[ greenhouse gas caps]. Small Business California is fortunate to have Hank Ryan who I consider the most knowledgeable person in the country on small business energy issues. He is helping me get the small business positions incorporated in the goals of the committee
Sixth Hank is also working with the CPUC where Small Business California is an intervener. One major issue he is driving is to have businesses that need permits from the Alcohol, Tobacco agency get expedidited permits for the use of Energy Star products. We met with the Sierra Club on this and they also seem to be very supportive of this initiative.
Seventh we continue to monitor workers compensation bills. There will be activity in this area come September and we are concerned that the reforms that have been so successful in lowering your workers compensation cost do not get dismantled.
Last as you know we have worked on a small business energy bill in the House and are working with the Center for Small Business and the Environment to get a bill in the Senate. We continue to work to get additional funding for Small Business Energy Star and increases in the Small Business Innovation program.
I think we are doing what you have asked us to do and I welcome your comments.
Scott Hauge President Small Business California

SB 869

I just received word that our bill SB 869 by Senator Ridley Thomas passed the Senate this morning on a vote of 34-2. The two opposed were McClintock and Hollingsworth. As you will recall the purpose of the bill is to go after businesses that have filed with EDD but have no workers compensation coverage. It is estimated there are about 100000 of these businesses.
It will now go to the Assembly where we fully expect it to pass and be signed ultimately by the Governor. Lori Kammerer ,our lobbyist has really made this bill happen.
Thank you to all that wrote letters of support.
On the energy front our small business energy bill HR2389 went to mark up yesterday in the House. It is being introduced by the Chair of the Small Business Committee Nydia Velazquez. The initiative to get this introduced was Speaker Nancy Pelosi. This bill will do a number of things to help small business reduce energy use and assist in financing those energy efficient technologies. It also will require the SBA to provide information and promote energy efficiency ideas. We are working closely with the Center for Small Business and the Environment, the National Small Business Association and the Small Business Majority association. We have had tremendous help and guidance from Russ Orbin who is a staff member of the House Small Business Committee

I hope you feel like Small Business California is out there fighting for you and if you are not a member please consider joining. You can get information on how to do so by visiting our website at www.smallbusinesscalifornia.org

Scott Hauge President Small Business California

Supreme Court Finally Sets Guidelines For Apportionment Cases

From: Scott Hauge

Sent: Friday, May 04, 2007

Subject: Supreme Court Finally Sets Guidelines For Apportionment Cases


This is a major decision for employers. Had the discussion been different it would have undermined the reforms of 2004. The outlook on workers compensation cost is very positive and we await hearing what rate decreases the companies will file for July 1. The Insurance Commissioner held this hearing yesterday on the pure loss rate and will be coming out with his recommendations shortly. The Bureau has recommended 11.3%. Since the reforms in 2003 the average work comp rate has gone from $6.47 to $3.25.

Last year, I started a program of asking small business people who in Government have been helpful to the small business cause. Please send me who you think should be recognized and I will send a letter to them from Small Business California and acknowledge your nomination. From my perspective, the names that jump out are:

-Luanne Morikawa in Senator Mark Ridley Thomas' office for help on SB 869 ( SB Cal Workers' Comp Bill ).
-Herb Schultz, John Ramey, and Richard Figuroa in the Governor's office for their outreach to us on the Governer's Health Plan.
-David Panush from Senator Perata's office for his outreach to us on the Senator's Health Plan.

Please make sure your nominee is in state government.

Scott Hauge
President
Small Business California
shauge@cal-insure.com

Small Business California Activities

From: Scott Hauge
Sent: Friday, March 02, 2007 6:04 AM
Subject: Small Business California Activities

It is really exciting what Small Business California is doing right now and I would like to update you on a few of our activities.

Yesterday Hank Ryan and I attended the first meeting of the Economic and Technology Advancement Advisory Advisory Committee. I serve on the Board with 19 others and we will be working on the implementation of AB 32[ Greenhouse Emissions Caps]. This is the first time to my knowledge that small business has ever had representation in the energy arena on such a significant level.

On March 8th I will going to Washington representing Small Business California and the National Small Business Association at a hearing of the Senate Small Business Committee. John Kerry is the Chair of the Committee and I was invited by Senator Snowe's staff. She is the minority leader on the Committee. I will be talking about small business energy issues and what the role of Small Business California was in the passage of AB 32. Byron Kennard will also be testifying representing the Center for Small Business and the Environment. I work very closely with
Byron and he is a tireless advocate for small business on this issue.

If any of you have any thoughts on this issue that you think would be helpful to discuss please let me know.

Lastly I spent Tuesday in Sacramento with our lobbyist Lori Kammerer discussing Small Business California legislation. We had meetings with a number of staffers and met with Assemblyman Tony Montoya and Assemblyman Doug La Malfa who is carrying one of our bills. Please let me know if you are in either of these Assemblyman's district.

We also met with Herb Schultz who is one of the point people for the Governors health plan. Small Business California has established itself as one of the leading groups speaking on health issues in Sacramento.

Through small Business California you are gaining a stronger and stronger voice in Sacramento and now also in Washington. Our survey of issues will be going out to all the legislators in the next couple of weeks and the Governors office is well aware of it. We also have received some great media coverage.

Survey Results and SB California Bills

From: Scott Hauge
Sent: Monday, February 26, 2007 6:14 AM
To: Small Business California
Subject: Survey Results and SB California Bills

Our survey results are in. We received 420 responses and the results were as follows:
1.The Rising Cost of Health Care- For the third year this was number 1 with 89% saying it was a top priority or high priority.
2.Quality of Public Education. 76% top or high priority.
3.Infrastructure 69%
4. Workers Compensation and Immigration- 66%
5.Regulation-63%
6.Taxation-55%
7.Energy 52%

So this will the agenda for Small Business California for 2007.
Other interesting results were that 60% of the respondents supported employers,employees and government being required to pay for health insurance, 97% supported requiring state agencies to consider the impact of regulations before final regulations are issued and 91% supported expanding vocational education.

You can get the results in detail by going to www.smallbusinesscalifornia.org
Last week was a crazy week in Sacramento as all bills needed to have backing by last Friday. This was a problem because hundreds of bills did not have the language from legislative council as late as Thursday. Small Business California is sponsoring two bills AB 1694[ LaMalfa] which deals with return to work policy and SB869[Ridley Thomas] which deals with workers compensation fraud. We will need your support on these as they come to committee and we need to thank Assemblyman La Malfa and Senator Ridley Thomas for introducing these bills.

One big disappointment was that we did not get introduced a bill that would allow most small business owners who have a 125 plan to be able to take the same tax break for themselves that their employees enjoy. This even though we pay for them, administer them and under the Governors and Speaker Nunez health proposals will be required to buy them. This is just not right and small businesses around the state should be outraged.

Small Business California Activities

From: Scott Hauge
Sent: Monday, February 19, 2007 6:39 AM
To: Small Business California
Subject: Small Business California Activities

Small Business California has been very busy recently and I wanted to take a moment to give you some updates.

First the National Association of Remodeling Contractors [California Chapter] will be joining as an affiliate member. We welcome them and look forward to a long relationship in promoting small business interest in Sacramento.

Second we have hired a lobbyist Lori Kammerrer of Kammerer & Company. This will help us with our Sacramento presence. I have known Lori for over 10 years and she will be of great help in not only moving our legislative agenda, but putting on seminars and providing us information on what is happening in Sacramento.

Third you may not know that we are affiliated with the National Small Business Association. I am the Vice Chair of Advocacy. Last week I attended a meeting in Scottsdale where a conference was held to set the agenda for the Association. One issue that is really going to be important for small business is the so called "Tax Gap" where the IRS will be going after small businesses to try and collect over $300 billion in unpaid taxes. While NSBA agrees that small businesses should pay what they owe they are very concerned that small businesses around the country will be the subject of audits. In their issues statement on this they say, "Honest small business taxpayers are especially at risk of being subjected to to needless and unwarranted regulatory burdens in an attempt to capture a few bad apples that do not fulfill their tax obligations. Small firms could be targeted and penalized by the IRS for small and unintentional transgressions".

NSBA is setting up a website www.preventirsabuse.org
Please also visit www.NSBA.biz for more information about the organization

Last, we will be closing our survey February 20th. We have over 400 respondents so far and I would really like to see the total go to over 500. If you haven't done so already please go to www.smallbusinesscalifornia.org and complete the survey. Also forward this informatoin on to others.

We will release the results of the survey next week and have had a number of media people and legislators looking to hear from people like you about the issues that effect small business.

One More Week to Take the Small Business Survey

From: Scott Hauge
Sent: Tuesday, February 13, 2007 6:45 AM
To: Small Business California
Subject: One More Week to Take the Small Business Survey

Time is running out to take our small business survey. Over the past three years, legislators and opinion leaders have used our survey to set policy, this is a great chance for you to let elected officials know what issues matter to small business. Already the LA Times and other media organizations have mentioned the small business survey and legislators are looking for its release to determine where small business owners stand on a variety of important issues. Right now we have close to 400 responses and there are some very interesting trends developing.

We will be continuing the small business survey for one more week, until February 20, 2007,
so please take five minutes and fill out the survey today. You can access the survey by going to www.smallbusinesscalifornia.org .

Please also forward this information to any other small business owners you may know.

SB-Cal Newsletter: February 2007

Small Business California’s Annual Survey
Small Business California (SB-Cal) is in the process of doing its third annual survey. This survey is used to set the agenda for the year for SB-Cal.

Last year the priority issues were health insurance, workers compensation, education/workforce, infrastructure, regulations and energy. Please visit our website http://www.smallbusinesscalifornia.org/ for our accomplishments in 2006.

You can help by going to our website http://www.smallbusinesscalifornia.org/ and completing the survey. The results of the survey will be sent to every state legislature, the Governor, and the media. Please take a moment.

Thank you.


Small Business California Legislation
Small Business California has been extremely busy in Sacramento. We are sponsoring three bills, which you should know about, because we will be coming to you later in the year asking for you to write letters of support.

The first bill is a tax credit for business owners that set up a 125 (cafeteria) plan. 125 plans are set up by employers and allow employees to pay health insurance premiums, health insurance deductibles, co-pays etc. with pretax dollars. The problem is that in pass through organizations, (sole proprietors, partnerships, S corporations, etc.) the owners of these businesses cannot take the benefits like their employees. This bill would allow owners to take these same benefits.

This is a simple fairness bill. It just makes sense that if an employer (owner) pays for a 125 plan and administers the plan that they should be treated the same as their employees.

The second bill would address the issue of some businesses not providing workers compensation coverage for their employees, creating an unleveled playing field for legitimate businesses. The bill would require the Economic Development Department to send to the Fraud Commission in the Department of Insurance a list of employers. It would also require the Workers' Compensation Insurance Rating Board to send the Fraud Commission all the employers that are providing workers compensation insurance. The Fraud Commission would then do a crosscheck and for those that are not providing coverage take steps to get them to provide coverage.

The third bill would address a problem that has arisen in the workers compensation reforms. Under current return to work regulations businesses with 50 or more employees can have their employee's benefit payments reduced by 15% if they provide the employee the opportunity to return to work. If they do not provide this, their disability payment is increased 15%. The problem is that the employer must provide employment for 12 months.

This clearly is impractical for a number of businesses especially those in the agricultural, entertainment, retail, and construction sectors where jobs are short term. This bill would eliminate the 15% increase if the job were short term.

We will continue to report to you the progress of these bills and hope you will support us in our efforts to get these bills passed and signed by the Governor.


Health Insurance
For the last two years the ever-increasing cost of heath insurance has been the number one issue for small businesses in California. Small Business California has played an active role in the health debate.

We have met with Senator Perata and Speaker Nunez’s office regarding their bills. We have also met numerous times with the Governor's office and I was on the panel when the Governor announced his proposal.

Small Business California’s position is that cost containment must be addressed and the cost of health insurance must be reduced. Future increases must be at or below the inflation rate.

If this accomplished, Small Business California has taken the position that small businesses would be willing to pay something towards their employee’s health insurance along with contributions by employees and government.

Small Business California will continue to be at the forefront of the debate. Please visit our website http://www.smallbusinesscalifornia.org/ for our position paper on this issue.


Flex Your Power
Flex Your Power is looking for small businesses that should be highlighted with an award because they have acted to save energy.

Does your business have unique ways that you've saved on fuel costs while still serving your customers well?

Have you invested in energy efficiency and have a good story to tell regarding other benefits you didn't realize would come your way? (I'm thinking of my local service station where they used a PG&E program to change their lighting and saved a bundle but they improved the QUALITY of the lighting to a major degree!)

Or, does you company actually manufacture or otherwise supply technologies that save energy and help other small businesses profit as a dividend?

There is one thing we know for sure. Small businesses are often just too busy to do more than to run the business. That said, I hope you'll take a minute to consider asking SB-Cal to nominate your business for an award.

We'll do all the paperwork and call you to get information.

Call me directly at my cell 510-459-9683 if you'd like to be nominated for a Flex Your Power award in one of the categories below.

Regards,
Hank Ryan, Executive Director – Small Business California


5TH ANNUAL FLEX YOUR POWER AWARDS APPLICATIONS
(DUE MARCH 15, 2007)
There's never been a more important time. There's never been a more important reason.

Conserving energy not only cuts costs, but also reduces emissions that lead to global warming. Join the ranks of outstanding leaders in California who know the time to fight global warming is now.

Flex Your Power seeks to recognize businesses, local, state and federal governments, farmers, water districts and institutions that understand that saving energy means saving money and the environment. If your organization is making steps to reduce energy use, please tell us your story by applying for a Flex Your Power Award.

Awards will highlight leaders in each of the following categories:

• Energy Efficiency
• Demand Response
• Education and Leadership
• Innovative Products and/or Services

APPLY NOW! Visit http://www.fypower.org/feature/awards/ learn how.

AB 32 Climate Change Legislation
SB-Cal offers "OP ED" piece regarding California's AB 32 Climate Change legislation.
(click here:

http://www.smallbusinesscalifornia.org/SF_Examiner_OP_Ed.pdf).

In an effort to develop a long term solutions based approach to the California's Climate Change legislation, AB 32, we've published an "OP ED" in the SF Examiner that defines our working plan. (see link: http://www.smallbusinesscalifornia.org/SF_Examiner_OP_Ed.pdf).

Small businesses are a major part of the "demand" side of energy use. Pro-active small business investments in energy efficiency require three main elements:

• Accurate energy savings information, preferably verifiable via Internet monitoring where possible.
• Access to capital like On Bill Financing so as to remove cash flow issues that often block energy efficiency investments.
• Regulations that encourage small businesses to invest in energy efficiency.
  

The "OP ED" (see link http://www.smallbusinesscalifornia.org/SF_Examiner_OP_Ed.pdf) article points out one simple way California regulators may encourage energy efficiency investments by CA small businesses. If there were a way to even slightly accelerate the processing time for liquor permits in return for proof of $2500 in Energy Star food service or refrigeration equipment purchases, businesses would have ample reason to look into these purchases at the right time, before the business is operating. This regulatory adjustment is consistent with other programs offered by the CA Dept of Alcoholic Beverage Control and does not call for any additional costs.

Hank Ryan will be traveling throughout CA in the coming months to speak to small business groups and other interested organizations on this issue. If your group would like to host Mr. Ryan for a 30-minute (including Q&A) presentation, please email to:hryan@smallbusinesscalifornia.org

SB-Cal Logo

Urgent

From: Scott Hauge
Sent: Wednesday, January 31, 2007 6:32 AM
To: Small Business California
Subject: Urgent

We are pushing 200 responses to our survey. Thank you to all that have completed it.
To those of you that haven't please take a moment to complete. You can access by going to www.smallbusinesscalifornia.org. I would appreciate all of you to forward to others.

As I have said before this sets the agenda for Small Business California for 2007. It is early but some very interesting trends seem to be developing and when we complete the survey all of you will be advised of the results.

Yesterday the Republicans came out with their health proposal and I was very gratified to see mention of our proposal to give owners who set up 125 plans the same tax privileges enjoyed by our employees. This is a fairness issue and we will be high on our legislative agenda next year.

We are making a difference but we will only be successful with your continued support and participation.

Urgent Action Needed

From: Scott Hauge
Sent: Friday, January 26, 2007 9:46 AM
To: Small Business California
Subject: Urgent Action Needed

Once a year Small Business California does a survey to determine the priorities of California small businesses. This sets our agenda for the year. The results of the survey are provided to every state legislator and the Governor.

Please take a few moments to complete the survey by clicking on below.
http://www.zoomerang.com/recipient/survey-intro.zgi?p=WEB2263TAGYPJT

I would also appreciate if you could forward to other small business people.
If you are interested in past survey results go to our website at http://www.smallbusinesscalifornia.org/

Small Business California is working hard to have your voice heard.

Governors Health Plan

From: Scott Hauge
Sent: Friday, January 12, 2007 6:01 AM
To: Small Business California
Subject: Governors Health Plan

Small Business California has had numerous contacts on the Governors Health plan and I am sure will get many more throughout the year. Our position is that if the cost of health insurance is reduced and increases in the future are stabilized that small business is willing to pay something for our employees health coverage. We applaud the Governor for trying to tackle this issue and really are anxious to see how his cost control measures will play out after farther analysis.
If you disagree let me know.
I would also like to know if any of you are interested in talking to the media. If so please let me know by return email and please give me your location.

In an effort not to send two emails to my San Francisco friends I want to invite you to a reception for our new Supervisor Ed Jew. Ed is the best person in a long time for San Francisco small businesses. The reception will be from 5:30 to 7PM on February 22.

FLASH: All Major Indicators Keep Tumbling, Bureau Reports

From: Scott Hauge
On Behalf Of: Small Business California
Sent: Wednesday, December 20, 2006 7:34 AM
Subject: FLASH: All Major Indicators Keep Tumbling, Bureau Reports

Please see update on workers compensation. All good news.
http://www.wcexec.com/articles/WCE01-20061220-000.htm.aspx.

Yesterday, I met Speaker Nunez's people and Senator Perata's people on the health insurance issue.They are very interested in getting the views of small business and will continue to discuss with us proposals as they move forward. As I have said the Speaker has a spot bill AB 8, which will be his vehicle for addressing the issue. This bill has no specifics at this time.

Senator Perata has a Shared responsibility bill which would require individuals to purchase insurance for themselves and their dependents and employers will also be asked to contribute. A purchasing pool called the "Connector" would be set up by The Managed Risk Medical Insurance Board. It would take advantage of Federal funding opportunities. Employers of course would be able to continue their own group coverage to cover their employees, but if they don't there would be some as yet undetermined cost they would have to pay for each employee.

It is estimated that 4.2 million of the currently uninsured would get coverage under this proposal. I emphasized the importance of cost containment to small business and the fears we have of anything moving forward that will place a severe burden on small business.

What are your thoughts on this? What is the message you would like me to send to the Governor, Speaker Nunez and Senator Perata? At this point Small Business California does not have a position on any bills and won't until more details are put forward. Senator Perata is to be applauded for putting something forth that the Governor can work with, but the devil is always in the details.

If you would like a more complete summary of the proposal let me know and I will send it to you.

Dennis Trinidad

From: Scott Hauge
Sent: Thursday, November 30, 2006 6:28 AM
To: Small Business California
Subject: Dennis Trinidad

It is with great sadness that I report to you that Dennis Trinidad, the state Small Business Advocate has resigned. I think today is his last day.
Dennis has been a great friend for Small Business California and all small businesses in the state of California. I have been involved in small business advocacy for going on 25 years and Dennis would be without doubt one of the best people I have ever worked with in advocating the interest of small business. He cares deeply about small business and really wanted to have the voice of small business heard in Sacramento and around the state.
I would encourage you to send an email to Dennis today thanking him for all his efforts.
He can be reached at Dennis.Trinidad@OPR.CA.GOV
Dennis, you have a lot of friends around the state and thank you for all your efforts on our behalf.

IRS Stakeholder Liaison Staff List

From: Scott Hauge
Sent: Wednesday, November 22, 2006 6:38 AM
To: Small Business California
Subject: IRS Stakeholder Liaison Staff List

Please find contacts if you have any questions about Federal tax issues. They also are available to meet with groups to discuss these issues and they welcome your email.
Things are relatively quite in Sacramento right now as the session is closed. Look forward to next year being a big year in the discussion of how to deal with the medically uninsured. The Governor has indicated that he will be making a major announcement on this issue at his state of the state message and Small Business California has been meeting with his point people providing the small business perspective.
Sam Wallace who was appointed by the Governor as the Small Enterprise Officer is working on a strategic plan to implement the Governors Executive Order S-11-06 to foster the greater utilization of Small Business in the states contracting for construction on transportation and highway related projects tied to the Governors Strategic Growth Plan.
The Executive order includes:
Creation of a Small Business Expansion Fund in the amount of $4 million from the Federal Highway Administration to guarantee up to $17 million in loans.
Legislative proposal for establishing a $40 million State Transportation Bonding Guarantee Program to assist small businesses in bidding on transportation projects.
This will be within the Business Transportation and Housing agency but our good friend Dennis Trinidad who is the states Small Business Advocate will also be working on the implementation of this Executive Order.
If you would like more information on this please contact me.
Have a wonderful Thanksgiving.