Welcome to the February 5-9 edition of the NFIB California Main Street Minute from your small-business-advocacy team in Sacramento. Retail Theft Update

• NFIB last week lent its support to Assembly Bill 1972 (Alanis), a measure as much a sad commentary on the state of things as it is a proposed expansion of the state’s retail theft laws to include merchandise stolen from a merchant’s cargo.

• However, the next time you’re in a check-out line, be very careful of bringing up the subject, lest you infuriate some VIP who might be standing behind you, as this story from The Mercury News cautions.

— “California’s retail theft problem got personal for Gov. Gavin Newsom on Wednesday when he shared a story about confronting a Target store clerk who didn’t stop a man from taking merchandise without paying. Turns out the clerk – who didn’t recognize Newsom at first – blamed her hands-off stance on the governor as he stood unbeknownst to her in her check-out line.

— “Newsom this month announced a host of new law enforcement measures to crack down on a growing retail theft problem that stops short of changes to Proposition 47, the 2014 criminal justice reform measure that lowers penalties for drug and property crimes. Critics have blamed Prop 47 and other such measures for a rash in retail thefts.”

• In a lengthy article on retail theft in the Sacramento Business Journal, State Director John Kabateck says, “The issue is multifaceted, but I think now there is bipartisan agreement that Prop. 47, while perhaps well-intentioned, has backfired severely.”

• Meanwhile, the next meeting of the newly created Assembly Select Committee on Retail Theft is this Thursday, February 8, in the West Hollywood City Council Chambers, beginning at 9 a.m. It will be an informal hearing, according to the committee’s agenda. Further information can be obtained from staff member Tami Martin. Tami.Martin@asm.ca.gov.

Ownership Interest Bill Dies

• NFIB was part of a coalition that helped defeat Assembly Bill 747, a convoluted measure that, according to the bill’s language, “would modify the definition of ‘ownership interest’ to require the partnership interest, membership interest, or capital stock to be more than a 10% interest of the total partnership interest, more than a 10% interest of the total membership interest, or more than 10% of the total shares of ownership of the entity, respectively.”

• In a Floor Alert sent to Assembly members, NFIB and its partners pointed out, “AB 747 jeopardizes existing business models. Implementing a 10% threshold for the sale of business exception is problematic because one or more business owners under the 10% threshold could sell all of their interest in the entity to a third party, receive payment for that interest, and immediately compete with the entity. It is arbitrary that most partners could compete while the one who owns an interest over 10% could not compete.”

• AB 747 “died on third reading file,” reports the Assembly’s website.

Valentine’s Day Tips for Employers

• Elizabeth Milito, senior executive counsel for the NFIB Small Business Legal Center, offers five tips for navigating workplace romances.

Cheaper to Buy Post Cards

• Under consideration by the Golden Gate Bridge, Highway and Transportation District, as reported by The San Francisco Standard:

— FasTrak users would pay $9.25 starting in July and $11.25 by July 2028.

— “Pay-as-You-Go” users, those who register their license plates or set up one-time payments through the district, would pay $9.50 in July and $11.50 by July 2028.

— Those who pay through invoices would pay $10.25 in July and $12.25 by July 2028.

Calendar

• February 5, counties begin mailing ballots to voters.
• February 16, deadline to introduce bills in the Legislature
• February 20, last day to register for the March Primary Election
• March 5, Primary Election Day
• May 24 deadline for bills to pass their house of origin (Assembly, Senate)
• June 27 deadline for ballot measure to qualify for November
• August 31 deadline for bills to have passed Legislature and sent to governor
• September 30 deadline for governor to sign bills into law
• November 5, General Election Day

National

• Next NFIB webinar, Ask the CPA! You have tax questions – We have answers! Wednesday, February 7, Noon Eastern Time, Register here.

Highlights from NFIB Legislative Program Manager Caitlin Lanzara’s weekly report

• On February 1, NFIB sent a letter in support of the Prove It Act. This legislation would strengthen the requirements for agencies to analyze the impact of regulations on small businesses and increase small business engagement in the regulatory process.

• On February 1, NFIB signed a Regulatory Flexibility Act coalition letter to the House Committee on Small Business and House Committee on the Judiciary urging legislative action to strengthen the meaningful input of small businesses in federal regulatory processes and ensure the intent of the Regulatory Flexibility Act is fulfilled.

• On January 31, NFIB submitted a statement to the House Energy & Commerce Subcommittee on Health thanking the subcommittee for holding a hearing on healthcare spending in the United States and the burden unsustainable rising healthcare costs pose on patients, small employers, and taxpayers.

• On January 31, the Congressional Paid Leave Working Group put out a request for information regarding future paid leave policy. NFIB submitted comments expressing concern for paid leave mandates, extensive paperwork burdens, and costly one-size-fits-all policies for small businesses.

This Main Street Minute can also be read on the NFIB California webpage here. Next Main Street Minute February 12.