Updated Legislative Priorities for Small Business Advocates

CA-legislatureFollowing the annual legislative house of origin deadline, NFIB California reflected on our victories and challenges ahead with our “The Good, The Bad, & The Ugly” bill list. Each year we proactively identify which bills will have the greatest impact, either negative or positive, to our 22,000 small businesses across California. Throughout the year we advocate in the Capitol for these priorities in order to lower the burden and cost of doing business in this state.

It is now halftime in the Legislature, and with that comes some welcome victories for small business, but more importantly there remain significant challenges ahead in these final months of this legislative session. With this being the first year in the 2017-18 two-year session, it is important to remember nothing is ever truly dead, but below are some highlights of where small business stands at legislative halftime.

Victories:

Good Bills Passed

AB 657 (Cunningham): Requires state agencies that significantly impact small businesses to display the name and contact information of the small business liaison on the agency’s Web site, and to fill any vacancy in this position within 3 months. Passed out of Assembly, in Senate Appropriations.

AB 816 (Kiley): Requires public California Environmental Protection Agency meetings, including subordinate departments like CARB and OEHHA, to be broadcast online and interactive to the public. It also requires them to be recorded for future access. Passed out of the Assembly, in Senate Rules.

Bad Bills Stopped

AB 5 (Gonzalez-Fletcher): Requires employers with 10 or more total employees to offer more hours to their part-time employees before they can hire new workers, including temporary or seasonal staff. It creates a new right to sue your employer if you don’t get more hours. Held in Assembly Appropriations.

AB 43 (Thurmond): Imposes a 10% tax on businesses that contract with CDCR for the “privilege” of having a state contract in order to fund education programs designed to discourage future criminals. It sets a bad precedent by taxing businesses just for having a state contract. Held in Assembly Appropriations.

SB 300 (Monning): Requires all sugar-sweetened beverages sold in California to have a health warning label, and creates new civil penalties for failure to do so. This is yet another example of nanny government. Held in Senate Health.

Challenges Ahead:

Needs to Pass

AB 12 (Cooley): Requires all agencies to do a full review of their regulations to see if they are outdated, too costly, or overlap with other rules. Such a full-scale review has not happened in decades. Held in Assembly Appropriations.

AB 77 (Fong): Requires legislative approval for any regulations with an economic impact of over $50 million. Held in Assembly Appropriations.

AB 281/AB 1429/AB 1430: Create desperately needed PAGA reforms, including extending the timeframe in which a business can cure a problem before being sued, limiting the types of PAGA suits, and requiring an agency investigation before suing.

AB 1005 (Calderon): The Department of Consumer Affairs oversees the licensure of businesses and professions. This bill would allow 30 days for abatement of the violation before the administrative fine becomes effective. Held in Assembly Appropriations.

Need to Stop

AB 1008 (McCarty): Prohibits employers from asking applicants about convictions until they make a conditional offer of employment. It creates new obligations and liabilities for employers and allows for new lawsuits. It will hamstring a small business owner’s ability to quickly fill a position. Passed out of the Assembly, in Senate Rules.

SB 2 (Atkins): Creates a new $75-$225 per document fee (or tax) for the transfer of real property to fund affordable housing programs. Held on the Senate Floor.

SB 562 (Lara): Creates fiscally reckless single-payer healthcare system in California. This would cost $400-500 billion annually, and would require enormous tax increases to fund. It would hurt the quality of healthcare for our citizens. Passed out of the Senate, in Assembly Rules.

SB 640 (Hertzberg): An intent bill that will expand the state sales tax to services. Small businesses would have to collect a new tax, and also pay the tax when they contract out for services. Held in Senate Governance & Finance.

Tom Scott is CA Executive Director, National Federation of Independent Business.

This article was originally published by Fox and Hounds Daily

Small Business Bills Approach Deadlines: The Good, Bad and Ugly

CA-legislatureMay is a critical month for legislation to move through various policy and fiscal committees before the house of origin deadline. Any Assembly bill which does not make it to the Senate (or Senate bill to the Assembly) by June 2 is effectively dead for the remainder of the calendar year, but can be revived in 2018, during the second year of the two-year session. These are known as two-year bills.

While NFIB is tracking and lobbying a wide range of bills and we will not know their fate for another couple of weeks, we have released an updated list of our Good, Bad, & Ugly bills. These bills represent legislative proposals which will have the greatest impact, either positive or negative, on small businesses in California.

Running a small business in a state which enacts nearly 1,000 new laws and associated fees and penalties every year, it is absolutely essential that the business community is aware of these bills before they become law, and engage in the process. This is why we always have the latest version of The Good, The Bad, & The Ugly bills available at www.nfib.com/ca/gbu

Below are a few highlights of what we are working on the coming weeks. Following the house of origin deadline, we will update our full list and continue to advocate for policies that help small businesses survive in California.

Good Bills:

AB 1005 (Calderon): DCA Penalties: Right to Cure: The Department of Consumer Affairs oversees the licensure of businesses and professions. This bill would allow 30 days for abatement of the violation before the administrative fine becomes effective.

SB 524 (Vidak): DLSE Regulatory Compliance: Creates a “good faith” defense for employers that complied with written guidance on Division of Labor Standards Enforcement regulations.

Bad Bills:

AB 43 (Thurmond): Department of Corrections Contracting Tax: Imposes a 10% tax on businesses that contract with CDCR for the “privilege” of having a state contract in order to fund education programs designed to discourage future criminals. It sets a bad precedent by taxing businesses just for having a state contract.

SB 300 (Monning): Sugar-Sweetened Beverage Warnings: Requires all sugar sweetened beverages sold in California to have a health warning label, and creates new civil penalties for failure to do so. This is yet another example of nanny government.

Ugly Bills:

AB 5 (Gonzalez-Fletcher): “Opportunity to Work” Act: Requires employers with 10 or more total employees to offer more hours to their part-time employees before they can hire new workers, including temporary or seasonal staff. It creates a new right to sue your employer if you don’t get more hours.

SB 562 (Lara): “The Healthy California” Act: Creates a single-payer healthcare system in California. This would cost $250 billion annually, and would hurt the quality of healthcare for our citizens.

Tom Scott is the State Executive Director for NFIB California, which represents 22,000 dues-paying small business members across the state.

This piece was originally published by Fox and Hounds Daily

CA: Worst Place For Business, 11th Year In A Row

California’s economic recovery might be a little over stated, at least according to the people who actually create jobs.

Chief Executive Magazine has released its annual Best and Worst States for Business Survey and California ranked last – for the 11th year in a row. In the annual survey, completed by 511 CEOs across the United States, states are measured across three key categories to achieve their overall ranking: taxes and regulations, quality of the workforce and living environment, which includes things like, quality of education, cost of living, affordable housing, social amenities and crime rates.

California again placed 50th on the list, joining New York, Illinois, New Jersey and Massachusetts at the bottom. Texas remained in the number one slot followed by Florida, North Carolina, Tennessee and Georgia.

One CEO was quoted as saying, “the good states ask what they can do for you; the bad states ask what they can get from you.” Another CEO was quoted, “California and Oregon are essentially anti-business, whereas Texas and Tennessee do everything possible comfortable and more successful.”

Litigation and a state’s legal climate are one of the things weighing on the minds of CEOs as they consider states in which to do business and create jobs. California continues to be a “Judicial Hellhole,” and is tepid at best in its willingness to stop lawsuit abuse. Businesses will be discouraged from expanding and creating jobs in a state in which the lawsuit system mainly serves the interests of lawyers rather than ordinary people.

A single abusive lawsuit can cost a business tremendously. California’s leaders need to make this connection and make it a priority to enact meaningful reforms to our lawsuit system.

Originally published by Fox and Hounds Daily

xecutive director, California Citizens Against Lawsuit Abuse