NLRB Posters/ AB29/Regulations

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

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

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


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

The White House Business Council / Social Security

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

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

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

Requirements

1) Company Name:

2) CEO Name:

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

4) Company Location:

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

6) Number of employees:

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Health Insurance

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

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

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

To see our survey go to www.smallbusinesscalifornia.org


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

Small Business Survey

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

President Obama

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

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


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

State Bank/ Legislative Session

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

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

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

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

Scott Huge
Small Business California
415-680-2109

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Thanks and best regards,

Michael Sauvante
Executive Director
_________________

COMMONWEALTH GROUP

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

Retirement Plans/IBM Computer Equipment

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

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

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

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

www.allthingsd.com/author/arik/

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

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

Obama's Speech on Economy and Job Creation & UPDATE

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

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

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

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

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

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

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

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

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

Susan Hall- Beloved Employee

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

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

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

Mike Rossi & Tragic Employee Loss

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

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

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

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


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

Last word on Emergency plan and Fire Prevention plan

Here is definitive word on the Emergency plan and Fire Prevention plan. All of you that have plans (that don’t comply) are subject to fines. BUT if you don’t have a plan, then you are okay. I will bet most of you who have put something together are subject to citations. However, I want to restate that Cal OSHA is not looking to get employers, but this is the law. Small Business California will be working on this as we would think it is much better to try and fall short, than have nothing. Below is more elaborated explanation of this if you are interested.

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“The Cal OSHA Appeals Board ruled in 1985 in its Educated Car Wash Decision after Reconsideration that employers are not required pursuant to T8CCR §3220 and §3221 to develop and implement written emergency action and fire plans. The Board wrote “Sections 3220 and 3221 do not have a corresponding charging or performance requirement. In other words, there is no safety order which mandates that an employer maintain an emergency action plan or a fire protection plan. However, when an employer voluntarily chooses to maintain such a plan, the standards set forth in Sections 3220 and 3221 detail the requirements of the plan and must be adhered to. Here, because Employer did not have an emergency action plan or a fire prevention plan, it cannot be cited for violating either safety order.”

That said, employers are required pursuant to §3203 “Injury and Illness Prevention Program” to identify, evaluate and control hazards in their respective workplaces. The IIPP is required to be written. Such hazards would include earthquake, fire, chemical release, for example. Cal OSHA’s “Model IIPP Program” references emergency action and fire prevention among its general safety and health practices. Enforcement of §3203 has remained fairly consistent since its inception in 1992. Predictably, questions have arisen as to just what needs to be included in an Emergency Action or Emergency Response Plan.

T8CCR §5189 (PSM) and §5192 (Hazardous Waste Operations) each require affected employers to develop and implement a written EAP and ERP. The California Fire Code requires all employers to develop emergency plans for addressing fires, to include contacting responders, evacuation procedures, assignment of responsibilities, etc. T8CCR §3203 anticipates that a reasonable employer will establish procedures for emergency situations.”

So the bottom line is as I told you on the phone, per the appeals board, you don’t have to have one, but if you do, it must comply.

Here are the two regs—you cited one of them already.

§3220. Emergency Action Plan.
________________________________________
(a) Scope and Application. This section applies to all emergency action plans. The emergency action plan shall be in writing, except as provided in the last sentence of subsection (e)(3) of this section, and shall cover those designated actions employers and employees must take to ensure employee safety from fire and other emergencies.
(b) Elements. The following elements, at a minimum, shall be included in the plan:
(1) Emergency escape procedures and emergency escape route assignments;
(2) Procedures to be followed by employees who remain to operate critical plant operations before they evacuate;
(3) Procedures to account for all employees after emergency evacuation has been completed;
(4) Rescue and medical duties for those employees who are to perform them;
(5) The preferred means of reporting fires and other emergencies; and
(6) Names or regular job titles of persons or departments who can be contacted for further information or explanation of duties under the plan.
(c) Alarm System.
(1) The employer shall establish an employee alarm system which complies with Article 165.
(2) If the employee alarm system is used for alerting fire brigade members, or for other purposes, a distinctive signal for each purpose shall be used.
(d) Evacuation. The employer shall establish in the emergency action plan the types of evacuation to be used in emergency circumstances.
(e) Training.
(1) Before implementing the emergency action plan, the employer shall designate and train a sufficient number of persons to assist in the safe and orderly emergency evacuation of employees.
(2) The employer shall advise each employee of his/her responsibility under the plan at the following times:
(A) Initially when the plan is developed,
(B) Whenever the employee's responsibilities or designated actions under the plan change, and
(C) Whenever the plan is changed.
(3) The employer shall review with each employee upon initial assignment those parts of the plan which the employee must know to protect the employee in the event of an emergency. The written plan shall be kept at the workplace and made available for employee review. For those employers with 10 or fewer employees the plan may be communicated orally to employees and the employer need not maintain a written plan.
§3221. Fire Prevention Plan.
________________________________________
(a) Scope and Application. This section applies to all fire prevention plans. The fire prevention plan shall be in writing, except as provided in the last sentence of subsection (d)(2) of this section.
(b) Elements. The following elements, at a minimum, shall be included in the fire prevention plan:
(1) Potential fire hazards and their proper handling and storage procedures, potential ignition sources (such as welding, smoking and others) and their control procedures, and the type of fire protection equipment or systems which can control a fire involving them;
(2) Names or regular job titles of those responsible for maintenance of equipment and systems installed to prevent or control ignitions or fires; and
(3) Names or regular job titles of those responsible for the control of accumulation of flammable or combustible waste materials.
(c) Housekeeping. The employer shall control accumulations of flammable and combustible waste materials and residues so that they do not contribute to a fire emergency. The housekeeping procedures shall be included in the written fire prevention plan.
(d) Training.
(1) The employer shall apprise employees of the fire hazards of the materials and processes to which they are exposed.
(2) The employer shall review with each employee upon initial assignment those parts of the fire prevention plan which the employee must know to protect the employee in the event of an emergency. The written plan shall be kept in the workplace and made available for employee review. For those employers with 10 or fewer employees, the plan may be communicated orally to employees and the employer need not maintain a written plan.
(e) Maintenance. The employer shall regularly and properly maintain, according to established procedures, equipment and systems installed in the workplace to prevent accidental ignition of combustible materials.

Update! Emergency Action Plan - Cal OSHA

Yesterday, in my email I mentioned that all businesses are required to have an emergency action plan. For details on what is required see link below. Failure to do so makes an employer subject to citations by Cal OSHA. However, I have verified from the Department of Industrial Relations that there is no enhanced efforts to go after employers for lack of compliance

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

Speaking of Cal OSHA I am surprised how many businesses are not aware that if they have employees they are required to have an Injury and Illness Prevention Plan. This plan among other things requires you to identify a Safety Manager, put forth a statement of Safety Policy , an investigation of safety hazards and accidents. It is also required that it be effective meaning you need to make sure your employees are aware of this plan. For information on how to put a plan in place I suggest you contact your insurance broker.
This is one of the most common citations for Cal OSHA and can mean fines up to $5000.

Yesterday Small Business California’s sponsored bill SB 826[Leno] passed the Assembly on a bipartisan vote. It will now go to the Governor where it is expected he will sign it. This bill implements modest fines of claims administrators. The reason for the bill was that there was a lack of compliance by many claims administrators to the Workers Compensation Information System as required by law. The WCIS is involved in making workers compensation policy and the lack of information makes it difficult to make good policy. This was even supported by claims administrators and virtually had no opposition



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

Update! NLRB’s new posting requirement

Yesterday, I sent an email about NLRB’s new posting requirement. About an hour after I sent this I learned that Cal OSHA is stepping up enforcement of its policy to require businesses to have emergency preparedness plans. Quite honestly, I did not know this was a requirement. According to Fred Walter, an employer attorney, he stated that

“In general Cal OSHA is more concerned with written documents taking more care to ensure that employer plans are completely documented “says Fred Walter adding “in the past the inspector would say your plan is weak beef it up” . He goes on to say “Now they are more likely to say you failed to include items six and nine therefore I’m issuing this citation”

The money collected from these citations goes into the general fund. On Bill Financing, which Hank Ryan and Small Business California brought to California small businesses, has been very successful in San Diego due to the work of Frank Spasaro and Southern California Gas/San Diego Gas and Electric. As you will recall this is a financing mechanism for small businesses that allows them to do energy retrofits and pay it back on their energy bill over three to five years at 0% financing. The cost of the retrofit is covered by the savings on their energy bill. To date, San Diego Gas has made almost 900 loans ($20 million) and there have been only 7 defaults. $6.8 million has been paid back and the cost of the defaults is $99,000. Unfortunately, PG&E and Southern California Edison have made very few loans even though they are required by the CPUC to do so.

This morning I received the Coleman report and it appears small business job creation in the US has slipped from 40,000 new jobs in July to 35,000 in August. Mr. Coleman said “Small Business Hiring Slows in August Wages have dipped and employers have reduced hours”. This is certainly disappointing results.

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

Final Rule for Notification of Employee Rights

Please see the new requirements for businesses below (or click on the link provided). NLRB is going to require employers to post this notice and put it on the internet (or intranet cite). It will be required to be posted by Nov 14 2011. There are exemptions, but it is so confusing that I would still recommend that all small businesses post this November 14th. I talked to someone at NLRB to sort out which type of small businesses would be exempt from this requirement. According to NLRB, even through my insurance agency, I would not be exempt because the majority of the insurance policies that I sell originate out-of-state. He even went so far as to say if I buy office products from out-of-state manufacturers for my business, it may hit the threshold to require my posting. Keep in mind it doesn’t matter if I buy them from a California company. If you are a labor attorney I welcome your thoughts.

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

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

Final Rule for Notification of Employee Rights

Background:

The National Labor Relations Board has issued a Final Rule requiring most private-sector employers to notify employees of their rights under the National Labor Relations Act by posting a notice. The rule is scheduled to be posted in the Federal Register on August 30, 2011, and will take effect 75 days later.

Employers should begin posting the notice on November 14, 2011. Copies of the notice will be available on the NLRB website and from NLRB regional offices by November 1.

Similar postings of workplace rights are required under other federal workplace laws. The 11-by-17-inch notice is similar in content and design to a notice of NLRA rights that must be posted by federal contractors under a Department of Labor rule.

The notice of rights will be provided at no charge by NLRB regional offices or can be downloaded from the Board website and printed in color or black-and-white. Translated versions will be available, and must be posted at workplaces where at least 20% of employees are not proficient in English.

Employers must also post the notice on an intranet or an internet site if personnel rules and policies are customarily posted there.


Questions and Answers:

Does my company have to post the notice?

The posting requirement applies to all private-sector employers (including labor unions) subject to the National Labor Relations Act, which excludes agricultural, railroad and airline employers. In response to comments received after the proposed rule was announced, the Board has agreed to exempt the U.S. Postal Service for the time being because of that organization’s unique rules under the Act.

When will the notice posting be required?

The final rule takes effect 75 days after it is posted in the Federal Register, or on November 14, 2011.

There is no union in my workplace; will I still have to post the notice?

Yes. Because NLRA rights apply to union and non-union workplaces, all employers subject to the Board’s jurisdiction (aside from the USPS) will be required to post the notice.

I am a federal contractor. Will I have to post the notice?

The Board’s notice posting rule will apply to federal contractors, who already are required by the Department of Labor to post a similar notice of employee rights. A contractor will be regarded as complying with the Board’s notice posting rule if it posts the Department of Labor’s notice.

I operate a small business. Will I have to post the Board’s notice?

The rule applies to all employers subject to the Board’s jurisdiction, other than the U.S. Postal Service. The Board has chosen not to assert its jurisdiction over very small employers whose annual volume of business is not large enough to have a more than a slight effect on interstate commerce. The jurisdictional standards are summarized in the rule.

How will I get the notice?

The Board will provide copies of the notice on request at no cost to the employer beginning on or before November 1, 2011. These can be obtained by contacting the NLRB at its headquarters or its regional, sub-regional, or resident offices. Employers can also download the notice from the Board’s website and print it out in color or black-and-white on one 11-by-17-inch paper or two 8-by-11-inch papers taped together. Finally, employers can satisfy the rule by purchasing and posting a set of workplace posters from a commercial supplier.

What if I communicate with employees electronically?

In addition to the physical posting, the rule requires every covered employer to post the notice on an internet or intranet site if personnel rules and policies are customarily posted there. Employers are not required to distribute the posting by email, Twitter or other electronic means.

Many of my employees speak a language other than English. Will I still have to post the notice?

Yes. The notice must be posted in English and in another language if at least 20% of employees are not proficient in English and speak the other language. The Board will provide translations of the notice, and of the required link to the Board’s website, in the appropriate languages.

Will I have to maintain records or submit reports under the Board’s rule?

No, the rule has no record-keeping or reporting requirements.

How will the Board enforce the rule?

Failure to post the notice may be treated as an unfair labor practice under the National Labor Relations Act. The Board investigates allegations of unfair labor practices made by employees, unions, employers, or other persons, but does not initiate enforcement action on its own.

What will be the consequences for failing to post the notice?

The Board expects that, in most cases, employers who fail to post the notice are unaware of the rule and will comply when requested by a Board agent. In such cases, the unfair labor practice case will typically be closed without further action. The Board also may extend the 6-month statute of limitations for filing a charge involving other unfair labor practice allegations against the employer. If an employer knowingly and willfully fails to post the notice, the failure may be considered evidence of unlawful motive in an unfair labor practice case involving other alleged violations of the NLRA.

Can an employer be fined for failing to post the notice?

No, the Board does not have the authority to levy fines.

Was there a public comment period? What was the response?

The Board received more than 7,000 public comments after posting a notice of the proposed rule in the Federal Register. A detailed description of the comments and the Board’s response to them, including responsive modifications to the rule, may be found in the Preamble to the Final Rule.

UPDATE: Stakeholder Recommendations for Small Business

Earlier in the week I said that Mike Rossi , the Governors Senior Advisor on economic development, was looking for ideas from small business on what California could do to strengthen California small businesses. Please see below for the list that was compiled by Toni Symonds from the JEDE committee. Please note this is not an all inclusive list and some recommendations were not included. Also there was not necessarily a consensus. The time did not allow Toni to go through that process. Some of you will see the recommendations that you sent to me. Click the image below to enlarge and click again to zoom in. Thank you


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

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

It was announced this morning that Peter Lee has been named as Executive Director of the California Health Benefit Exchange. I think this is good news for California small businesses because he has a wealth of health policy experience. He was Executive Director of the Pacific Business Group on health running Pac Advantage.

I know Peter well as he was involved in my being appointed to the Board of Pacific Business Group on Health. This organization has around 50 large companies that have over 3 million employees covered by their health plans..
Peter has over 25 years experience in health policy.
Peter currently serves as Deputy Director for the Center for Medicare and Medicaid Innovation at the Centers for M3edicare and Medicaid Services in Washington DC.

Small Business California is going to be very active in trying to maintain the collection of sales tax by out of state internet companies when they make sales in California. As I think you all know this was part of the Governors budget. Amazon is currently in the process of trying to get a measure on the June ballot to repeal this. I am going to be writing pieces on why this will help small business brick and mortar stores and why it will help small businesses by eliminating paperwork in the maintenance of receipts and paying the use tax.
If you are a businesses that is impacted please let me know and what this means to you.


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

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

Please find survey from the Earthquake Engineering Institute. They have asked Small Business California to circulate a survey to small businesses around the state. They are also working with the Building Owners and Managers Associations in LA and SF. They are trying to determine when seismic retrofits should be required. The survey should take about 10 minutes.

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

The Earthquake Engineering Research Institute is studying code change proposals and seeks your input. Their short survey about building alterations and triggered upgrades is at https://www.surveymonkey.com/s/FN3BGTK.

Say you're doing a tenant improvement or a mechanical upgrade. Should the building code also require a seismic evaluation -- and possibly a retrofit -- even if your project wouldn't touch the structural system? You can contribute to the code change process by taking a survey developed by structural engineers funded by the Earthquake Engineering Research Institute (www.eeri.org). The 2010 CBC triggers upgrades in a few cases already, but some are asking whether the code should be more proactive about seismic mitigation. What role should the code play in a city's mitigation plan? Would code-triggered upgrades reduce risk or would they just discourage modernization projects? Should a seismic trigger be related to project cost? Should certain building types be exempted -- or targeted?

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

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

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For those of you that have been on this email tree for awhile you know of my involvement with Volunteers In Medicine and Clinic by the Bay in SF.
For those of you new to the email Volunteers in Medicine is a National program setting up free clinics around the country using retired physicians, nurses and lay volunteers. They take no government money and have 85 clinics around the country in 25 states. They serve about 100000 people in these clinics and have around 350000 patient visits. I am the Vice Chair of Volunteers in Medicine www.volunteersinmedicine.org

In California there are three Volunteer in Medicine Clinics. They are located in El Cajon, Indio and San Francisco. I am the cofounder of Clinic by the Bay in San Francisco along with Janet Reilly. We opened the clinic September 30th 2010. We are open 8 hours a week and are now serving about 120 patient visits a months. I am excited to tell you that September 8 we will be expanding to twelve hours a week. Our goal is that within 3 to 5 years we will be open full time.

For those of you in the Bay Area you might know John Legnitto. John works for Recology and serves as Chairman of the Board of the SF Chamber. I am pleased to tell you he just last week he was voted in as a member of our Board.

I am involved in a number volunteer activities but there is none that gives me more pleasure than Volunteers in Medicine and Clinic by the Bay www.clinicbythebay.org


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