NFIB California Main Street Minute

Date: June 22, 2020

For the legislative and political week of June 22-26

Welcome to the June 22 issue of the NFIB California Main Street Minute from your small-business-advocacy team in Sacramento.

Victory!

  • After hearing persuasive testimony from NFIB California State Director John Kabateck and NFIB Leadership Council Member Jose Villa, who is also on NFIB’s national board, the influential League of California Cities voted June 19 to remain neutral on the ‘Split Roll’ property tax initiative certified for the November ballot.
  • The importance of this cannot be understated, because of the money at stake for cities. According to the California Secretary of State’s initiative language, “After paying for county administrative costs and backfilling state income tax losses related to the measure, the remaining $6 billion to $10 billion would be allocated to schools (40 percent) and other local governments (60 percent). 
  • But Villa and Kabateck impressed upon the League of California Cities gathering the blow the ballot initiative could be to the engine of every community’s economy: Small businesses. Only 20% of small-business owners own the property their small business sits on. Higher property taxes mean higher rents and leases, and, given the coronavirus-ravaged time we’re living in, higher numbers of business closures.

How About a Half-Year Off?

  • If you know something would be tough to pass in traditional bill form, what can you do? Well, try stuffing it in the state budget as trailer bill language, which advocates of ever more paid leave are trying to do.
  • NFIB is an active member of a coalition trying to stop the Paid Family Leave proposal. So far, the measure hasn’t appeared in bill form, but there is still plenty of time left in the legislative session. The coalition will continue its efforts to protect California businesses from unnecessary expenses.
  • In a coalition letter to Sen. Holly Mitchell, chairwoman of the Senate Committee on Budget and Fiscal Review, signed by 59 organizations and associations, including NFIB, it warned of the significant harm that “requiring all employers to provide 12-weeks of protected [it can’t be denied] leave of absence each year” would have. “This is in addition to existing leaves of absences already required, thereby requiring up to 6 months of mandatory leave, and exposing employers to costly litigation for any alleged violation.”
  • Right now, California, combined with some federal programs, offers 15 avenues to paid and unpaid leave.

But, Wait, There’s More …

  • Assembly Bill 3216 would add even more leave-time opportunities by significantly changing several existing laws, such as the California Family Rights Act, Pregnancy Disability Leave, and Paid Family Leave, all of which, as a coalition letter, signed by NFIB, points out “have nothing to do with the current crisis and are changes advocates have long sought. These permanent and far-reaching changes are now being proposed under the cover of attempting to protect workers during the COVID-19 crisis.”

Winding Down

  • Since the Assembly started back to session several weeks in front of the Senate after the COVID-19 break, the Assembly is commensurately heading for the backyard staycation recess earlier than the Senate. The Assembly recessed June 19; albeit they may be interrupted to pass a handful of budget trailer bills this week. The Senate will work until July 2. Both houses return on July 13 to complete the two-year session on August 31. 

Nationally

  • Wednesday, June 24, the next NFIB webinar: PPP EZ Application – Step-by-Step Instructions for Maximizing PPP Loan Forgiveness. The SBA has released the new PPP Loan Forgiveness Application Form 3508EZ, which is designed to streamline PPP forgiveness for certain businesses. While applying for forgiveness may still seem overwhelming – even with this simpler form – the EZ form requires fewer calculations and less documentation. Register here.
  • Meanwhile, the opportunity to apply for a PPP loan ends next week, June 30—and there is more than $120 billion left to apply for.

NFIB California Main Street Minutes are published every Monday on the NFIB California webpage. Two additional updates are published the first and third Thursday of each month for inclusion in the bi-monthly newsletters to the membership. Next California Main Street Minute is June 29.

Photo courtesy of the California Assembly Sergeant at Arms webpage.

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