VOLUME 36, NUMBER 8 ● MARCH 12, 2010 ®

Lawmakers Voice CalChamber Fights to Preserve Support for Economic Open Primary Ballot Wording Analysis of Proposals

A Sacramento the open primary, Proposition 14 on the Members of the Superior Court June ballot. Senate Rules Judge ruled on During a news conference on March 8, Committee March 9 that Zaremberg and other supporters an- expressed support Californians for nounced plans to intervene in the lawsuit this week for a an Open to protect the interests of California concept long Primary, a group voters. They highlighted the secretive advocated by the co-chaired by attempt by the California School Employ- California California ees Association (CSEA) to work through Support Chamber of Chamber of the courts to edit the ballot title and Commerce—sub- Commerce summary for Proposition 14 in a way that jecting proposed President and CEO Allan Zaremberg, will would bias voters against the measure. legislation to an economic impact be allowed to intervene in an important, The lawsuit names Debra Bowen in analysis. but quietly fi led, lawsuit that attempts to her offi cial capacity of Secretary of State The forum for the discussion was a subvert previously approved ballot as the defendant. The Offi ce of the hearing of the Senate Rules Committee language for Proposition 14. Legislative Counsel, which normally on SBX8 60 (Harman; R-Huntington Opponents of the open primary would be expected to defend the ballot Beach), which expands the assignment of measure apparently contrived the lawsuit title and summary as enacted, was an existing joint legislative committee to to undermine language previously resisting any effort to defend the law as include the economic review. approved by a two-thirds majority of the drafted. On several occasions, Legislative CalChamber President and CEO Allan Legislature and signed by the Governor Counsel rejected offers from Californians Zaremberg suggested creation of an last year during budget negotiations. The for an Open Primary to provide defense. economic impact committee in an April changes they sought would have, essen- Interestingly, late in the evening of 2009 commentary. tially, created a campaign piece against See CalChamber: Page 4 ‘Laudable Goal’ Senate President Pro Tem Darrell CalChamber2010.com to Offer Live Stream Steinberg (D-Sacramento), chair of Senate Rules, said the goal of the of Republican Gubernatorial Primary Debate legislation is laudable but he questioned the need to create another layer of CalChamber2010.com, a comprehensive, Commissioner Steve Poizner and former government for the economic review. fi rst-of-its-kind website offering Califor- eBay CEO Meg Whitman, share with He asked whether the assignment to nians videos and side-by-side compari- Californians their solutions for our future. analyze the economic impact of a sons of the gubernatorial candidates’ During the one-hour debate, they will proposal could be made part of existing stance and history on issues most discuss plans to balance the state’s See Lawmakers: Page 6 important to the state’s economy and job budget, bring jobs to California and climate, will be streaming live the improve the economy. The debate will be Republican Primary Gubernatorial moderated by KNBC political reporter Debate on Monday, March 15 at 5:30 Conan Nolan. Inside p.m. New Majority is sponsoring the event Visit CalChamber2010.com/debate to —and questions from the public are CalChamber Identifi es watch the two leading Republican being accepted in advance at moderator@ candidates for governor, Insurance newmajoritydebate.com. Job Creators: Page 3 See CalChamber2010.com: Page 6 MARCH 12, 2010 ● PAGE 2 CALIFORNIA CHAMBER OF COMMERCE

Labor Law Corner Flextime Allows Schedule Adaptations, But Daily Overtime Rules Apply

without the payment of daily overtime. Labor Law Digest (Chapter 15). Flextime, if permitted by your policy, Your operation may not be conducive allows employees to work different to an alternative workweek schedule starting and stopping times, but daily because of the many shifts and different overtime rules still apply. For example, starting and stopping times. an employee might be allowed to start work at 6 a.m. rather than 8 a.m., thus Flextime ending the work day 2 hours earlier. Flextime is not rigid as the alternative Dale Louton workweek schedule and gives you the Senior Helpline Wage Order Requirements ability to meet the needs of your compa- Consultant Your company is subject to the ny. provisions of Industrial Welfare Commis- For example, you may want to Please explain the difference between an sion Wage Order 4. Section 3 of this accommodate an employee with a child alternative workweek schedule and order contains daily, weekly and seventh- care necessity. Flextime allows you to fl extime. We are a call center with 25 day overtime requirements. manage your company by adapting employees who work different shifts with Section 3 (B) and Section 3 (C) employee work schedules to fi t your varying starting and stopping times. provide for an Alternative Workweek needs. Daily overtime applies, however. An alternative work schedule is a Schedule and Election Procedures. That is time-and-a-half pay for more than formal arrangement and if correctly If the section is properly implemented, 8 hours of work in a day and double-time executed by an employer allows employ- you are not required to pay daily over- for more than 12 hours of work in a day. ees to work up to 10 hours per day time; however, you are required to pay premium pay of time-and-a-half and The Labor Law Helpline is a service to double-time for hours worked outside the California Chamber of Commerce preferred schedule. and executive members. For expert explana- For full details on alternative work- tions of labor laws and Cal/OSHA regula- California Chamber Offi cers tions, not legal counsel for specifi c situations, Larree M. Renda week schedules, go to HRCalifornia. call (800) 348-2262 or submit your question Chair com. There also is a full chapter devoted at www.hrcalifornia.com. to this subject in the 2010 California S. Shariq Yosufzai First Vice Chair Timothy S. Dubois Second Vice Chair Frederick E. Hitchcock CalChamber-Sponsored Seminars/Trade Shows Third Vice Chair Frederick R. Ruiz More information at www.calchamber. Globe 2010. The GLOBE Foundation. Immediate Past Chair com/events. March 24Ð26, Vancouver, British Allan Zaremberg Business Resources Columbia. (604) 695-5001. President and Chief Executive Offi cer Central Valley Tour. Water Education International Tax Conference. U.S. Foundation. April 14Ð16, Bakersfi eld. Council for International Business Alert (ISSN 0882-0929) is published weekly (916) 444-6240. (USCIB). March 31, Mountain View. during legislative session with exceptions by California Chamber of Commerce, 1215 K Government Relations (202) 682-7465. Street, Suite 1400, Sacramento, CA 95814- Tax-Exempt Organizations Workshop. Stonetech 2010. CCPIT Building 3918. Subscription price is $50 paid through IRS Exempt Organizations Specialists. Materials Sub-council. April 6Ð9, membership dues. Periodicals Postage Paid at Sacramento, CA. March 16Ð18, McClellan. (703) 579- Shanghai, China. [email protected]. 1496. Asiawater 2010. AMB Exhibitions POSTMASTER: Send address changes to See CalChamber-Sponsored: Page 3 Alert, 1215 K Street, Suite 1400, Sacramento, International Trade CA 95814-3918. Publisher: Allan Zaremberg. World Trade Week Briefi ng. Los Angeles Executive Editor: Ann Amioka. Associate Area Chamber of Commerce. March Editor: Blake Ellington. Art Director: Marcy 17, Los Angeles. (213) 580-7569. Wacker. Capitol Correspondent: Christine Haddon. Photographer: Aaron Lambert. California Agriculture and Our Economy. Monterey Bay International Trade Permission granted to reprint articles if credit CalChamber Calendar is given to the California Chamber of Com- Association (MBITA). March 19, Salinas. (831) 335-4780. merce Alert, and reprint is mailed to Alert at CalChamber PAC Workshop: address above. Certifi ed Cargo Screening Program.

Transportation Security March 19, Long Beach E-mail: [email protected]. Business Summit/Sacramento Home page: www.calchamber.com. Administration. March 22, Hawthorne. Host Breakfast: (310) 973-3132. May 17Ð18, Sacramento CALIFORNIA CHAMBER OF COMMERCE MARCH 12, 2010 ● PAGE 3

CalChamber Identifi es Legislation Seeking to Improve Jobs Climate, Help Recovery

The California Chamber of Commerce 5/28/09). Awaiting action in the Senate has identifi ed a number of bills as job Revenue and Taxation Committee. creators. If passed, these proposals will improve the state’s job climate and Increased Construction Jobs stimulate economic recovery. ● AB 1805 (C. Calderon; D-Montebel- Job creator bills identifi ed so far will lo) Increases Construction Jobs. Facili- provide balanced regulatory policies, tates job creation by giving a limited encourage investments and increase number of environmentally sound develop- construction jobs. ment projects protection from California Other job creators are likely to be Environmental Quality Act (CEQA) identifi ed as CalChamber staff members lawsuits. This benefi t will allow projects continue to review the thousands of bills biorefi nery to count toward meeting the that have met their CEQA requirements to introduced shortly before the February 19 state mandate that 20 percent of energy break ground sooner, which will create deadline to introduce legislation. come from renewable sources by 2010. badly needed jobs and spur economic Following are job creators identifi ed (Last Amended 7/8/09). Awaiting action growth. Assembly Natural Resources by the CalChamber and their status: in Senate Environmental Quality Committee hearing 3/22/10. Balanced Regulation Committee. ● ABX8 37 (C. Calderon; D-Montebel- ● AB 697 (C. Calderon; D-Monte- lo) Increases Construction Jobs. Facilitates ● SB 356 (Wright; D-Inglewood) bello) Removes Onerous Tax Burden. job creation by giving a limited number of Small Business Impact Analysis. Relieves employers of a onerous, costly environmentally sound development projects Improves the small business climate in tax burden by prospectively repealing an protection from CEQA lawsuits. This benefi t California by reforming the regulatory unfair, strict liability tax penalty that will allow projects that have met their development process to include a specifi c applies even to reasonable tax disputes, CEQA requirements to break ground sooner, small business economic impact analysis that was enacted as part of the Septem- which will create badly needed jobs and and other provisions that mitigate the cost ber 2008 budget. (Last Amended spur economic growth. of regulation to small business. (Last 6/1/09). Senate Revenue and Taxation ● SB 1010 (Correa; D-Santa Ana) Amended 1/12/10). Awaiting action in Committee suspense fi le. Increases Construction Jobs. Facilitates Assembly Business and Professions ● AB 1565 (Ruskin; D-Redwood job creation by giving a limited number of Committee. City) Research and Development environmentally sound development Encourages Investments Credits. Encourages investment and projects protection from CEQA lawsuits. jobs in research and development by This benefi t will allow projects that have ● AB 222 (Adams; R-Hesperia) increasing the research and development met their CEQA requirements to break Green Energy. Encourages new invest- tax credit rate from 15 percent to 20 ground sooner, which will create badly ment and job creation by allowing percent, in conformity with federal law, needed jobs and spur economic growth. conversion of solid waste to energy at a beginning in 2012. (Last Amended Awaiting action in Senate Environmental Quality and Judiciary committees. ● SBX8 34 (Padilla; D-Pacoima) Supports Construction of Vital Projects. Ensures the expedited permitting of CalChamber-Sponsored Seminars/Trade Shows environmentally sound solar thermal projects, enabling them to qualify for From Page 2 Trade Center. May 18, Davis. (916) grants under the American Recovery and Sdn Bhd. April 6Ð9, Kuala Lumpur, 447-9827. Reinvestment Act of 2009. (Last Amended Malaysia. [email protected]. Clean-Tech Trade Mission to China. 3/8/10). Assembly Floor. Hannover Messe 2010. Deutsche Messe Monterey Bay International Trade ● SBX8 42 (Correa; D-Santa Ana) AG. April 19Ð23, Hannover, Germany. Association (MBITA) and Asia Increases Construction Jobs. Facilitates [email protected]. Gateway Inc. May 22Ð29, Shanghai, job creation by giving a limited number of International Green CEO Summit. China. (831) 335-4780. environmentally sound development Indonesian Chamber in Jakarta. April Labor Law projects protection from CEQA lawsuits. 28ÐMay 1, Jakarta, Indonesia. grace@ HR101 Part 3 Ð Harassment and This benefi t will allow projects that have greenceosummit.com. Discrimination. CalBizCentral. March met their CEQA requirements to break World Trade Conference. U.S. Depart- 25, Webinar. (800) 331-8877. ground sooner, which will create badly ment of Commerce. May 5, Ontario. HR101 Part 4 Ð Discipline and needed jobs and spur economic growth. (951) 440-9944. Termination. CalBizCentral. April 1, Held in Senate Environmental Quality Consular Corps Luncheon. NorCal World Webinar. (800) 331-8877. 2/24/10. MARCH 12, 2010 ● PAGE 4 CALIFORNIA CHAMBER OF COMMERCE

CalChamber Fights to Preserve Open Primary Ballot Wording

From Page 1 March 8, the Legislative Counsel suddenly reversed their position and issued a letter saying they have no problem with the Proposition 14 support- ers defending the ballot language in court. Attorneys for the Proposition 14 campaign have pointed out that the court lacks authority to change the measure’s ballot label and title and summary because the language was passed by a two-thirds vote of the Legislature and signed into law by Governor Arnold Schwarzenegger. Voice for Voters Zaremberg commented at the news conference that the open primary will ensure that voters have a strong voice in the November general election, rather than just in the primary, as is now the case. An open primary will allow voters to select candidates who most closely refl ect their views and represent the interests of their districts. “It’s time that we open up the elec- tions in California, no longer have CalChamber President and CEO Allan Zaremberg highlights the need for Proposition 14, the open guaranteed elections in November and primary measure on the June ballot, at a March 8 press conference on the steps of the State Capitol. have the primary candidate who wins by a very small margin of partisan electorate be the guaranteed winner in November,” Zaremberg said. “We need to give state and independents. All voters would members believe it will increase voter everybody the right to vote in the be eligible to vote in the primary, participation and empowers Californians primary, and then we need to make sure regardless of party preference. The two in all state legislative districts to elect everybody’s vote counts in the general candidates receiving the most votes in the candidates who represent the broadest election.” primary, no matter what their party, views in their district. Proposition 14 would face off in the general election. In February, Zaremberg was joined in This proposed measure mirrors the signing the pro-Proposition 14 ballot Proposition 14, the California Top development of the successful “open arguments by Jeannine English, Califor- Two Candidates Open Primary Act, primary” election system that is in place nia state president of the AARP, and would institute for congressional, in the state of Washington. This system James Earp, executive director of the statewide and legislative elections a allows the top two vote getters, regardless California Alliance for Jobs. system similar to the one currently used of party, to compete in the general in local elections for school boards, city election and has been validated by the More Information councils and county supervisors. All U.S. Supreme Court. For more information, visit the candidates’ names would appear on the The CalChamber Board of Directors Californians for an Open Primary same primary ballot regardless of party voted to support the California Top Two campaign website, www. — Republicans, Democrats, decline to Candidates Open Primary Act because yeson14openprimary.com.

They won’t know unless you tell them. Write your legislator. calchambervotes.com CALIFORNIA CHAMBER OF COMMERCE MARCH 12, 2010 ● PAGE 5

CalChamber Encourages Assistance to Help Chile Recover from Earthquake

The California Chamber of Commerce is encouraging businesses to offer support to help Chile recover from the devastating 8.8 magnitude earthquake and resulting tsunami on February 27 and subsequent aftershocks. “The California Chamber of Com- merce wishes to express its deepest sympathy to our partners in Chile during this diffi cult and terrible time,” said Susanne Stirling, CalChamber vice president of international affairs. “With grapes, apples, pears and blueberries. energy and communication lines in the strength of their democracy, we are Vinos de Chile, the association of addition to clean water to remote areas of assured that Chile will confront this Chilean wineries, estimated 125 million Chile hit hard by the earthquake. disaster with determination and rebuild to liters of wine lost, including bulk, bottled Items being gathered for this effort be even stronger.” and aging. The fi gure is the equivalent of include photovoltaic solar panels, power Specifi c assistance from the interna- $250 million, a loss of 12.5 percent inverters, street lights, wind energy, tional community requested by then-Chile compared with the 2009 vintage of 1.01 portable water treatment units (or water President Michelle Bachelet immediately billion liters, Vinos de Chile said. As of purifi ers) and water desalination units. after the earthquake asks for satellite March 3, routine work had been re-estab- Non-cash donations are being gathered phones and antennas, generators, transi- lished or would be soon, according to the at West Valley College in Saratoga. Cash tional houses, mechanical bridges, fi eld wineries association. donations are being gathered by Energy hospitals, structural damages evaluation for the Future/Chile in Rancho Cordova. systems, salt water purifi cation systems Relief Contributions (drinking water supplies), tents, dialysis The Embassy of Chile has opened an Chile Ties centers, mechanical public centers (food account at Bank of America specifi cally In September 2009 during a trade centers) and rescue expert teams. for Chile earthquake relief contributions, mission to Santiago, the capital of Chile, On March 11, Sebastián Piñera and is accepting contributions via mail the CalChamber joined in the signing of a succeeded Bachelet as President of Chile. (1732 Massachusetts Avenue NW, Memorandum of Understanding (MOU) to Damage Assessment Washington, DC 20036). The embassy is promote further trade and investment updating information continuously at between California and Chile. The trade On March 10, the Chilean Exporters www.chile-usa.org. Contribution links mission was a follow up to the June 2008 Association reported that the country’s are included on the site. signing of an MOU between California and fruit production and export sector was Tax exempt donations also can be Chile by Governor Arnold Schwarzenegger quickly working toward normal operations. made through the Pan American Develop- and then-Chile President Bachelet. Distribution of fruit products from ment Foundation online (www.panameri- In 2008, California exported more most regions to Chilean ports “is back to canrelief.org) or via telephone (877-572- than $1.6 billion worth of goods to Chile, normal schedules and unhindered by 4484), a special account at Citibank or an increase from $880 million in 2007. earthquake damage,” the association said. mail (1889 F Street NW, Second Floor, Since the U.S.-Chile Free Trade A week earlier, the association found Washington, DC 20006, Chile Relief). Agreement was implemented on January that there had been “important damage in 1, 2004, bilateral trade between Chile and major production areas and infrastructure Energy/Clean Water Effort the United States has doubled. including packing stations and cold A group of professionals and Califor- More information on Chile and relief storage facilities.” Much of the damage nia government offi cials announced last efforts is at www.calchamber.com/chile. occurred in regions affecting mostly table week that they are working to bring Staff Contact: Susanne Stirling

international trade updates at www.calchamber.com/international MARCH 12, 2010 ● PAGE 6 CALIFORNIA CHAMBER OF COMMERCE

Lawmakers Voice Support for Economic Analysis of Proposals

From Page 1 Harman’s proposal called for the proposed legislation on business and reviews, such as that done by the Offi ce of economic review to be done on any therefore the economy seems prudent,” the the Legislative Analyst. Another sugges- proposal estimated to generate a fi scal CalChamber said. tion was that the economic impact be part impact of $10,000 or more on small “The Legislature must create and seize of the Appropriations Committee analysis. business or $50,000 or more on any other economic development opportunities, Harman said he was willing to work business. The joint legislative committee reduce the cost and risk of keeping and with committee members on how to also would be required to report on such growing jobs, and jump-start public and conduct the economic analysis. He proposals each year. private infrastructure and commercial emphasized the importance of having an In a letter to Harman and Senate projects,” the CalChamber wrote. “As they organized, distinct process for the econom- Rules, the CalChamber noted that the cre- consider any new legislation or regulation, ic review. ation of an economic impact committee our leaders must fully and realistically that reviews all bills to determine their assess the impacts of any proposed Qualifi ed Analysis statewide economic impact is “a good mandate on the private sector. SBX8 60 In testimony to Senate Rules, Marc fi rst step in determining whether the state provides a tool to meet this goal.” Burgat, CalChamber vice president of as a whole can afford any new proposal.” Steinberg and others on Senate Rules government relations, commented that the Currently, both the Assembly and committed to working with Senator place where the economic analysis is Senate have Appropriations committees Harman on an appropriate forum and conducted is not necessarily as important that review the fi scal impact of proposals specifi cs of how to conduct the economic as making sure the analysis is done by staff on government and reject legislation that analysis. members qualifi ed to conduct an economic the government can’t afford. Harman’s SB 954 contains language impact review. identical to SBX8 60, which was intro- The earlier in the process the analysis is Prudent Action duced as part of the Eighth Extraordinary done, the better, Burgat said. “Given the “Because cost is the most important Session of the Legislature. Steinberg said current economy and recession, the indicator of whether a business will add the special session “probably” would close economy and jobs have to be a litmus test future jobs here or somewhere else, a on Friday, March 12. in which all analysis is based,” he said. similar process to assess the impact of Staff Contact: Marc Burgat

CalChamber2010.com to Stream Republican Primary Debate

From Page 1 dently sourced material and video clips friends, followers and colleagues on their California Chamber of Commerce that allow the voter to see and hear what favorite social network — and ask them President and CEO Allan Zaremberg will the candidates say in their own words. to do the same. Easy-to-follow directions address the audience before the debate. The site focuses on issues of critical are available on the site. importance to the state’s economy and Video from the debate will be avail- Educating Californians job climate in nine areas: Budget and able on CalChamber2010.com following Created by the CalChamber, this Spending; Jobs and the Economy; Taxes; the live streaming event. project has one clear goal: educating Education; Health Care; Environment and Visit CalChamber2010.com/debate to Californians. This is not a site that Energy; Water; Public Safety; and sign up to receive a reminder e-mail just advocates for a particular candidate. It Housing and Transportation. before the debate starts. lets the user decide. At CalCham- The CalChamber is urging readers to Staff Contact: Rob Lapsley ber2010.com, visitors can fi nd indepen- share CalChamber2010.com with

Which candidate is best for California? Get the facts and decide for yourself.

Available exclusively at ® 2010 CalChamber2010.com Jobs • Economy • Working Families CALIFORNIA CHAMBER OF COMMERCE MARCH 12, 2010 ● PAGE 7

CalBizCentral Offers Free Webinar on Pregnancy Disability Leave

A free web seminar answering the top ● How much PDL are employees pregnant? Can she not be hired because 10 questions employers ask regarding entitled to take? of her pregnancy? pregnancy disability leave (PDL) is being ● What types of wage replacement ● Does PDL include time off offered by CalBizCentral, the source for and/or benefi ts must be given to an for prenatal care or if an employee California business and human resource employee on PDL? miscarries? compliance products, presented by the ● When should you require medical ● If the employee’s health care California Chamber of Commerce. certifi cation from an employee—when provider has certifi ed that the employee This 30-minute free webinar is the leave begins, after, or both? is able to work with no restrictions, available on demand to registrants. ● An employee was put on a what should be done about absences This webinar will help employers with performance improvement plan just the employee says are related to the fi ve or more employees and employers before they went out on PDL: What pregnancy? with 50 or more employees who are not should you do about the performance ● After a PDL, how much time do you yet eligible for Family Medical Leave Act issues when the employee returns from give an employee for baby bonding? (FMLA)/California Family Rights Act PDL? (CFRA). ● Your company is experiencing Registration layoffs and has an employee who will Registration and more information Top 10 Questions soon be taking PDL: Can the employee on the webinar is available at www. The top 10 questions that will be take PDL early to avoid a layoff? What if calbizcentral.com/training or by calling discussed are: she is on the layoff list? (800) 331-8877. ● Which employees are eligible for ● What should you do when a female PDL? applicant for a job discloses she is

Small Business Advocate Award Nomination Form Available

The California Chamber of measures, testifying before the state recognize award winners at its Commerce has opened nominations Legislature, representing a local chamber Business Summit on May 17 in for its Small Business Advocate of of commerce before local government, Sacramento. the Year Award. and being actively involved on federal The nomination form and Nominees should have legislation. criteria are available at www. contributed signifi cantly as an calchambervotes.com or may be advocate for small business by Deadline: April 2 requested from the Local Chamber being involved in such activities Award nominations are due to the Department at (916) 444-6670. as taking leadership roles in or CalChamber Local Chamber Department working on state or local ballot by April 2. The CalChamber will Periodicals Postage PAID Sacramento, CA CALIFORNIA CHAMBER OF COMMERCE

P.O. BOX 1736 SACRAMENTO, CA 95812-1736 (916) 444-6670 FACSIMILE (916) 444-6685 www.calchamber.com

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CALIFORNIA CHAMBER OF COMMERCE COMMERCE OF CHAMBER CALIFORNIA MARCH 12, 2010 2010 12, MARCH PAGE 8 PAGE ●