2019 New Leadership. New Year.
our Association rises As the legendary phoenix— newborn—from the ashes of the past
Issue 51, January 2019 | the Official Publication of the Neighborhood Market Association
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Executive Board Of Directors Samer Salem Executive Chairman Mark Kassab Executive Vice Chairman Nashat Damman Executive Secretary and Treasurer Naseem Salem Executive Board Member Past Executive Chairman Sam Attisha Chairman: Events & Networking Committee Firas “Russ” Soro Chairman: Programs Endorsement Committee Rony Georges Chairman: Community & Government Relations Steve Mattia Chairman: Education & Compliance Committee Salam Moshe Chairman: Membership & Marketing Committee Ghassan Namou Executive Board Member Saeed Somo Executive Board Member Ayad Zaitona Executive Board Member President Arkan Somo General Counsel David C. Jarvis
The Voice the official publication of Neighborhood Market Association, and is published three times a year. 619-313-4400 Fax: 619-313-4408
2 We Are Committed to Help Our Members Succeed 3 New Leadership, New Year, New Beginnings
4 Meet The New Board of Directors
5 Open Invitation to All Retailers
6 Suppliers to serve on NMA Board
6 Save the Dates for NMA’s 2019 Major Events
7 Q&A with NMA General Counsel, David C. Jarvis, About UMG
8 NMA Treasurer is Not A Symbolic Position!
9 NMA Meets with ABC San Diego District Administrator
11 Meet the NMA’s Receiver 11 Media Coverage of Court Rulings and Op-Eds 12 Male Enhancement Pill Litigation 12 American’s With Disability Act Compliance 13 NMA Establishes the Power Buying Group 13 Retailers: Be Aware of Scams 13 Coming Soon: New NMA Website 14 Young’s Market Company Holiday Trade Show 17 Suppliers Meet & Greet the Newly Elected Board 18 2018 NMA Golf Tournament 20 East County Strategic Summit 21 Recap of the Midterm Elections
To advertise contact Arkan Somo at 619-313-4400 or email@example.com.
22 Good & Bad 2018 Bills to Pass the Legislature that Have Been Signed Into Law
The Voice will soon be available online in full color at: www. NeighborhoodMarket.org
23 Supplier Membership Application 24 Retailer Membership Application
We are committed to helping our members succeed
n behalf of the newly elected Board, I would like to wish all the retailers, suppliers and their families a very happy New Year. I would also like to express our deepest gratitude to our members who re-joined the association and believed in us. Paying the $500 membership fee when there were very little benefits in return was a strong statement that you wanted this organization to continue representing your businesses. That’s why the first action the NMA Board took was to reduce the membership fees to $250 and give every current Member a second membership year for free. The second action taken was creating five strong committees that will be laser focused on every aspect of the NMA’s membership and provide the tools and resources that will help our members succeed. I would like to introduce these committees and the great individuals who stepped up to serve as chairmen; • • • • •
Programs Endorsement Committee chaired by Mr. Firas “Russ” Soro Event and Networking Committee chaired by Mr. Sam Attisha Education and Compliance Committee chaired by Mr. Steve Mattia Membership and Marketing Committee chaired by Mr. Salam Moshe Community & Government Committee chaired by Mr. Rony Georges
I urge every retailer and supplier to contact them directly with any needs you may have or a new idea to improve our membership services. The members have placed their faith in us and we are committed to fulfill our responsibilities to protect them and help them become more prosperous. With your help, support and prayers we will build a great organization that our industry and community can be very proud of.
Samir Salem executive chairman | 2 |
New Leadership New Year New Beginnings our Association rises As the legendary phoenix— newborn—from the ashes of the past
arlier this year, our industry came together once again and elected new leadership that will unite retailers and suppliers towards a successful future.
After years of neglect, the NMA once again has a bright future with the help of respected members from our industry and community, and we are excited by this new journey. A committed, vibrant new NMA Board of Directors was recently elected in transparent and independent elections following the court’s removal of the prior NMA leadership and management. Our mission is to now focus on the needs of our family owned businesses and providing members with the tools needed to ensure their success. Our members have been neglected far too long and their needs ignored. That’s why the new Board, through five outstanding committees, has been tirelessly working to make up for lost time. We cannot change the past; we can only focus on the future. We are marching forward and invite the retailer and supplier community to join us so we can once again make the NMA into the strongest independent retail trade organization in California and the western region of the United States. With your help, I believe this can happen! Wishing you and your family a joyful prosperous New Year, and I look forward to serving the NMA.
Arkan Somo president
What is “Phoenix Rising”? In Greek mythology, the phoenix is a long-lived bird that cyclically regenerates or is otherwise born again. Associated with the sun, a phoenix obtains new life by rising from the ashes of its predecessor. (Wikipedia)
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2019 - 2020 Executive Board of Directors
Executive Vice Chairman
Executive Secretary and Treasurer
Firas â&#x20AC;&#x153;Russâ&#x20AC;? Soro
Executive Board Member, Past Executive Chairman
Chairman: Education & Compliance Committee
Chairman: Programs Endorsement Committee
Chairman: Events & Networking Committee
Salam Moshe Chairman: Membership & Marketing Committee
Chairman: Community & Government Relations
Executive Board Member
Executive Board Member
Executive Board Member
David C. Jarvis
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Open Invitation to ALL Retailers Dear Valued Retailer, On behalf of the NMA Executive Board, we would like to invite you to meet the newly-elected officers and directors. This meet and greet is only for retailers. The Executive Board had a similar meeting with our suppliers. The Board wants to listen to your concerns and address your questions regarding the recent events relating to the Association and its leadership transition. But most importantly we want to ask for your ideas and input in how to improve the NMA’s services moving forward. Sincerely, Samir Salem Mark Kassab Nashat Damman Chairman Vice Chairman Secretary/Treasurer
You Are Invited This is a new day for the Association with new leadership that pledges transparency and strong ethics to serve its members. Please join us as our guests for a conversation and dinner. Thursday, January 17, 2018 6:00 pm Royal Palace Banquet Hall 1340 Broadway, El Cajon
Reception: Introductions and Q&A Power Buying Group Dinner
6:00 pm – 7:00 pm 7:00 pm – 8:00 pm 8:00 pm – 8:30 pm 8:30 pm
We are looking forward to seeing you at this event. Please, RSVP to ArkanSomo@gmail.com
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Suppliers to Serve on the NMA Executive Board
pplications for Suppliers to Serve on the NMA Executive Board are being accepted to fill the seats dedicated to the suppliers. The NMA believes we can only get stronger and more effective as retailers and suppliers work together to protect the industry and make it prosperous. If you are a supplier and your company is interested in participating in the leadership of NMA, send NMA President, Arkan Somo an email or contact him directly at 619-9778484 to request a board application.
SAVE THE DATES
FOR NMA’S 2019 MAJOR EVENTS
March 15, 2019, 22nd Annual Banquet. Celebrate our industry and give recognition to those who made advances in our industry and community.
May 16th, 25th Annual Golf Tournament. Join the fun, network, and explore new products and services.
July 11th Trepco West Annual Buying Extravaganza. Dozens of manufacturers, suppliers and service provides in one place to save you money.
October 17th, Young’s Market Holiday Trade Show. This is your opportunity for holiday buying and to save money and sample new products.
487-3737 | 6 |
Q & A with David C. Jarvis about UMG nma general counsel
t seems a daily occurrence hearing about people Had the NMA been transparent, I don’t believe that misappropriating funds from a nonprofit organi- litigation would have occurred. zation, lack of oversight regarding spending nonThe NMA is aware of another organization profit funds, or using nonprofit funds for someone’s led by Mark Arabo, United Market Group. personal benefit. This happened to the NMA, but What are your thoughts about that? after years of litigation brought by concerned retail members, the court ordered Mark Arabo to repay the The NMA’s litigation counsel sent me some NMA, plaintiffs and court costs $382,000. and recourt filings regarding this matter a couple moved the entire Board. A new Board was properly of months ago. I did a little research into elected by NMA members. United Market Group (“UMG”), and I don’t think The question remains: how does this happen? The it’s even a valid nonprofit organization. Its organizaVoice met with the NMA’s general counsel, David tional documentation on file with the Secretary of C. Jarvis and asked his opinion on these and other State’s Office indicate it’s a for profit corporation. A former NMA employee, Lundon Attisha, is further matters. listed as the sole director as well as the president, secDave, what can the NMA do to avoid these retary, and treasurer of UMG. It’s unclear who owns things from happening again? UMG, but my research indicates it has shareholders just like any other business.
First and foremost is transparency. As with all nonprofits, the NMA is governed by the Board of Directors. The NMA Board then elects the Officers, who handle the day-to-day operations of the NMA. Good nonprofit governance requires the Officers report and answer to the Board, and with the Board reporting to the members.
You mentioned transparency. What did you mean by that?
The NMA is a nonprofit mutual benefit corporation. Any NMA member has the right to inspect the books and records of the NMA. Without enforcement of these rights, a small group of people can effective hijack a nonprofit organization. It seems this occurred with the NMA. A few courageous NMA members successfully challenged the former leadership’s mismanagement, but that litigation cost hundreds of thousands of dollars.
Could UMG effectively act as a trade organization similar to the NMA?
Not really. UMG could take a consulting type role for businesses. However, it has no accountability to anyone but its shareholders. Further, the shareholders of UMG would be entitled to all profits UMG makes. Based on the public record, it seems similar with UMG. In contrast, the NMA’s sole function and use of funds is for the benefit of the NMA and its members.
In his 20-year career, Dave Jarvis has formed many nonprofit organizations, including charitable organizations, churches, educational nonprofits, homeowners associations, and trade organizations. He also serves as a board member for the Boys & Girls Club of Greater San Diego.
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NMA Treasurer is Not a Symbolic Position!
by Nashat Damman, Secretary/Treasurer
’ve been a member of the NMA for over 20 years. I served on the NMA board when Auday Arabo was the president. I was elected again to the board of 2011-2012 when Mark Arabo was president and the executive board nominated me to be the NMA’s Treasure and Secretary which I gladly accepted. Months goes by and no one asked me to sign any NMA checks or provided me with any financial statements. Furthermore, no financial reports were sent to board members prior to Board meetings. At one of these Executive Board meetings, I asked if the Board can receive the financial report at least one day prior to the meeting so we have an opportunity to look at it and ask any questions we may have. I was told, “I did not email the financials because we do not want that stuff being forwarded and getting in other hands.” Mark Arabo stated, (NMA Executive Board Meeting Minutes, October 12, 2011.) I was also told, “All of these functions are done by NMA staff and the position of Treasurer is only SYMBOLIC!” Based on that statement and lack of support from the Board to ask the staff to provide financial reports to the Board, I decided to resign from my position as Treasurer and consequently from the Executive Board. Few months ago, I was honored to receive the vote of our members to be elected to the NMA Board for the year 2019-2020. The current board insisted for me to be the NMA’s Treasurer which I accepted with hesitation. Over the past 3 months I have been included and consulted with every financial decision the NMA has made. I have received the financials from the receiver, Mr. Richard Kipperman, and he has done a good job in keeping every invoice and every receipt the NMA paid. Our current president has asked me to sign every check although our chairman and vice chairman have the authority to sign checks as well. He presents me with an invoice and explains the charge and then he asks me to approve and write the check accordingly. I cannot describe how happy and thrilled I am to serve as the NMA Treasurer. I attest that the NMA’s Treasure position is NO LONGER SYMBOLIC. I pledge to our members that I will be vigorous and diligent with their money as we move forward in rebuilding this great association.
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L to R; Steve Mattia, Rony Georges, Ms. Melissa Ryan and Salam Moshe
NMA Meets with ABC San Diego District Administrator by Rony Georges, Chairman, Community & Government Relations Committee
he President of the Neighbor Market Association, Arkan Somo and members of the newly elected NMA Board of Directors met recently with the San Diego District Administrator for the Department of Alcoholic Beverage Control, Melissa Ryan, as part of the NMA’s outreach efforts with government and law enforcement agencies. Three NMA Executive Board members attended the meeting; Steve Mattia, Chairman of Education and Compliance Committee, Salam Moshe, Chairman of Membership and Marketing Committee and Rony Georges, Chairman of Community and Government Relation Committee. One of the primary goals of the NMA is to maintain a good relationship with all government agencies to address issues and regulations concerning NMA members in order to help keep them in compliance. The NMA president and committees’ chairmen presented many questions that Ms. Ryan graciously answered in details. Some of these questions were; How can the NMA legally negotiate on behalf of its members with suppliers of alcoholic beverages to get them better pricing, Internet alcohol sales and delivery, licensing issues and compliance issues? We also asked the department to reestablish partnering
with NMA to organize future ABC LEAD (Licensee Education on Alcohol and Drugs) training classes. Ms. Ryan informed us the good news that the department had just launched its ABC LEAD program online and all retailers and their staff can go through the program and receive their certification free of charge. The NMA urges all of retailers who engage in the sale of alcoholic beverages to mandate this training to ensure their employees have the knowledge and the tools to prevent any sale of alcohol to minors or those who are under the influence. Go to the California Department of Alcoholic Beverage Control website. https://www.abc.gov/ and register for an online LEAD training class. Ms. Ryan highlighted the importance of the continuing partnership with the Neighborhood Market Association and its members to protect communities through education and by administering prevention and enforcement programs designed to increase compliance with California’s alcoholic beverage laws. ABC licensees and their employees are encouraged to take ABC’s LEAD (Licensee Education on Alcohol and Drugs) training classes to help achieve higher compliance with alcoholic beverage laws. Keeping communities safe is a collaborative effort that involves everyone.
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Meet the NMA’s Receiver
ichard Kipperman was the court appointed receiver to manage the daily operation of the NMA for more than eight months. On January 24, 2018, he took over the management duties of the NMA after the court removed the former NMA board and Mark Arabo’s management company, Refined Management, Inc. Mr. Kipperman filed four comprehensive reports with the court: 1. The first report dealt with Refined Management Inc.’s agreement signed by the prior NMA board with Mark Arabo and whether that agreement was a legal contract. The receiver concluded that it was not. He also uncovered that most of the management functions of the NMA were outsourced to other vendors and not performed by Mark Arabo or Refined Management Inc. 2. The second report dealt with establishing special election procedures and hiring an outside election inspector to conduct the NMA board election. The court approved these procedures. 3. The third report was to inform the court about the outcome of the special election. On Aug. 13, 2018, Mr. Kipperman swore in the newly elected board after he certified the election result.
Richard Kipperman 4. On November 30, 2018, in his fourth and final report, Mr. Kipperman asked the court to be discharged of his duties since he had satisfied all court required duties. Mr. Kipperman established his company, Corporate Management, Inc. in 1986 and still manages it today. He served in the United States Marine Corps as a Captain in Vietnam and was Honorably Discharged in 1971. On behalf of the NMA Executive Board and all our members, we would like to express our deepest appreciation to Mr. Kipperman and his wonderful staff for their professionalism and outstanding management of the NMA and keeping all financial records in an orderly fashion.
Media Coverage of the Court Ruling and Op-Eds November 17, 2017 Judge orders Arabo to repay Neighborhood Market Association $248,000 By Greg Moran, San Diego Union-Tribune November 18, 2017 A Judge’s Remarkable, Scathing Takedown of Mark Arabo and the Neighborhood Market Association By Andrew Keatts, Voice of San Diego
April 27, 2018 OPINION No, the NMA Board Was Not Duped by Mark Arabo By Raad Attisha, Voice of San Diego May 4, 2018 We Saved the NMA; Now We Must Rebuild it By Samir Salem, Arkan Somo and Basil Zetouna, The Voice of San Diego
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Male Enhancement Pill Litigation by Steve Mattia, Chairman of Education and Compliance Committee
any NMA members have expressed concern regarding the recent litigation involving male enhancement pills, such as Libigrow and Rhino branded products. The lawsuit alleges that ingredients in these pills are not FDA approved and retailers who are selling them are in violation of certain federal statutes such as false advertising and unfair competition. While the allegations are serious, there is little basis as to why the individual store owners would be in such a violation. The law firm bringing the action, Tauler Smith LLP, has sent demand letters to stores looking for quick settlements with a promise not to further litigate the matter. In some instances, many stores have been sued in federal court, causing the store to hire an attorney and defend the lawsuit. As chairman of the Education and Compliance Committee and an attorney, I am recommending that NMA members think twice before settling and understand their options. There is currently a counter lawsuit against this law firm for fraudulent and frivolous actions. I encourage all members who have received a letter or a lawsuit regarding this male enhancement pills to reach out to the NMA and allow us to guide you on the best possible response and protections available. As a precaution, I would recommend to our members to check their inventory and only sell the pills that are complaint and not part of this litigation. I welcome all questions and can assist with any compliance needs, please feel free to email me at firstname.lastname@example.org.
Americans With Disability Act Compliance by Steve Mattia, Chairman of Education and Compliance Committee
ver the past several years our NMA members have been subject to lawsuits involving non-compliance of the Americans With Disability Act (ADA), primarily regarding customer access to isles, countertops and entrances. These lawsuits are serious and should not be ignored. While the allegations may seem unfounded, the ADA has clear compliance requirements and businesses who do not follow these requirements can be accused of discrimination and open themselves up to severe consequences. Although most of our members do their best to comply with state and federal laws, the access laws are very specific and can seem surprising if one does not know the exact dimensions and parameters. At the NMA we are working with certified specialists who can inspect a store and determine what areas are out of compliance and make recommendations on what needs to be changed to avoid a possible lawsuit. We are developing a checklist for stores to follow, highlighting the most common areas of compliance and what the legal requirements are. The NMA encourages our stores to be complaint so that they can offer their customers a safe and accessible environment, where there is no indication of discrimination against those who are disabled. Members who feel they are non-compliant are encouraged to reach out to the NMA, where we will provide the best tools on what needs to be done to protect the stores and their customers. | 12 |
NMA establishes the Power Buying Group
ASK YOUR PEPSI REP FOR THE NEW NMA PEPSI PROGRAM
he NMA Executive Board is committed to saving our members lots of money. In order to achieve this goal, the NMA is creating a Power Buying Group (PBG) that members can join to leverage their collective buying power to receive a better pricing from suppliers and service providers. You must be an NMA member in order to join. This program will also present a great opportunity to suppliers with new products and services provides who want to gain bigger market share.
NMA RETAILER MEMBERS: WATCH FOR COMPLIANCE POSTER IN JANUARY’S MAIL
Please, contact the NMA staff to sign up and take advantage of this great money saving opportunity.
RETAILERS! Be Aware of Scams Retailers are receiving calls from people claiming to represent SDG&E, saying power will be shutting off if they don’t pay immediately. Other retailers have been visited by individuals claiming they are visiting the stores to pick expired Lottery games. If you suspect anything abnormal, do not respond to these individuals. Call SDG&E, the Lottery and the local police or sheriff station and report it. Don’t be a victim.
Coming Soon, New NMA Website A new and more user-friendly NMA website is coming soon with all the resources our members expect to receive. Members will be able to access all membership benefit and endorsed programs and sign-up on the website. Retailers and suppliers will see all the upcoming events and have the opportunity to sign up online, as well as all view the update on new regulations and the NMA lobbying effort on behalf of all the members to stop harmful regulations. You will see all the community outreach projects and events the NMA will be involved with and your opportunity to be a part of. The NMA’s goal is to make this website more interactive to benefit those who are in the industry. | 13 |
OCT. 17, 2019
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Call Namir Mattia at 619-442-9900 Business website royalpalacehall.net
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Suppliers meet and greet the newly elected executive board
n September 17, 2018 at the Royal Palace in El Cajon, suppliers met with the entire NMA Executive Board and the newly appointed president. The attendees enjoyed a reception where they interacted with every board member individually. Suppliers were very familiar with the caliber of the new board because of their long his tory in dealing with their businesses going back for decades.
from the Internal Revenue Service. On the other hand, the NMA is a not for profit trade association with a legal status from the IRS, which means membership dues are deductible as business expense. Corporations for profit dues are not. Other questions brought up by suppliers were related to what is next for the NMA and how the new board is planning to bring the industry together and help retailers in their everyday challenges.
The meeting began with the NMA president, Mr. Arkan Somo, introducing the newly elected board and their individual positions. Then, he opened a The newly elected board laid out its vision for the Q&A session where suppliers had plenty of quesNMA moving forward with their first action in lowtions they wanted to be answered. Here are some of ering the membership annual fee for retailer from the main questions: $500 to $250. It created five outstanding committees Questions regarding the election process and with great chairmen who are working tirelessly to adthe results of the election. Documents were dress the issues most important to retailers. Most impresented regarding how the court -appointed portantly, they created a Power Buying Group that receiver hired the Independent Election In- retailers will join to leverage their collective buying spector to conduct a very transparent and fair power in order to receive better pricing from venelection. The election was certified by the re- dors. This program will also present a great opportuceiver and the new board was sworn on August nity to vendors with new products and services who want to gain market share. 13, 2018.
Questions regarding the United Market Group were asked. Documents from California Secretary of State were presented to attendees that showed the group’s president, secretary and treasurer is Lundon Attisha, a former employee of Mark Arabo’s management company. It appears the group is for profit and not a Bona Fide Trade Association with legal exception status
Those suppliers in attendance expressed their optimism to bright future for the NMA and committed to work closely and proactive with the new leadership to help retailers overcome some of these challenges. The NMA board deeply appreciates everyone who attended that meeting and realized as the retailers succeed so do their suppliers.
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Golf Tournament Title Sponsor
Nickie Heath Insurance
Sycuan Casino & Resort
Tournament Corporate Co-Sponsors VIEJAS CASINO YOUNG’S MARKET COMPANY SOUTHERN WINE & SPIRITS NICKIE HEATH INSURANCE AGENCY Southern Wine & Spirits
Hole Sponsors, Other Sponsors and Products Contributors
Anheuser Busch, Blue Bunny Ice Cream, Buzz Ball, Certified Access Services, Edrington Group, First Choice Bank, Frito-Lay, Haisha Insurance Services, Gallo Wine, Ghost Tequila, Jägermeister, Pacific Wine & Spirits, PepsiCo, Popchips, Rock Ice Cream, San Diego Cash & Carry, San Diego Ice Company, Soapy Joes, Transatlantic Group, Trepco West Company, Wes Salem, and Wells Fargo Bank Longest Drive: Zane Alsheikit
Closest to the Pin: Mark A.
Young’s Market Company
Viejas Casino & Resort
1st Place Winner: Garmo & Garmo | 18 |
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East County Strategic Summit
he East County Economic Summit, held on October 9, 2018, was a powerful panel of economic and regional business experts who presented the outlook for San Diego East County and the region’s business, and discussed ways that business can prepare for the future, new policies and legislation that may impact business both positively and negatively and how to best prepare. The Keynote Speaker was Jerry Sanders of the SD Regional Chamber of Commerce, and Barry Jantz of Grossmont Healthcare District was the MC. Arkan Somo represented NMA on the panel at this summit and presented during the program, along with Congresswoman Susan Davis, President SDECDC; and Jenny Holland, Research Analyst Competitive Edge. NMA is looking forward to partnering with the Chamber in next year’s Strategic Summit.
Insurance Corner WHAT IS WORKERS’ COMPENSATION INSURANCE?
It is a policy issued to a business owner which provides insurance coverage for the costs of work related injuries to their employees. This type of insurance pays for all costs associated with a worker’s injuries such as, medical bills, lost wages, rehabilitation, and permanent disability or death. The benefits under a workers’ compensation policy are set by the state’s workers’ compensation regulatory commission.
HOW IS WORKERS’ COMPENSATION PREMIUM DETERMINED?
AM I REQUIRED TO HAVE WORKERS’ COMPENSATION INSURANCE? The premium is a percentage of your If you are operating a business in the state of California, and employ any workers, you are required by the state labor commission to have workers’ compensation insurance. The only businesses which are exempt from this law are those operated solely by the owners with no employees. If you operate without it you run the risk of heavy fines and possible shut down of your business. Another important reason to have work comp insurance is to protect you from financial disaster. The medical costs of treating an injured worker, the lost wages, and other costs could be extremely burdensome for any business and could put your assets in jeopardy.
estimated payroll for the policy term. Each type of business is assigned a specific classification which represents the degree of hazard in their industry. Both the classification number and description are set by the state under section 11658 of the California Insurance Code. The premium rate for each class is determined by the degree of hazard of injuries in that industry.
ARE OWNERS COVERED UNDER A WORKERS’ COMPENSATION PROTECT YOURSELF AND YOUR BUSINESS CALL US TODAY FOR A FREE POLICY? Owners have the option to include or exclude themselves from coverage. If they are included in the coverage, then they are entitled to the benefits in case of injury. Their payroll would be included in the calculation of premium. If elected to be excluded from coverage the owner’s payroll would not be included in the premium calculation.
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WORKERS’ COMPENSATION QUOTE Contact us at: Office: 858.487.3737 Fax: 858.487.3730 Email: Info@nickieheath.com www.nickieheath.com CA LIC. 0F04182
Recap of The Midterm Elections by Arkan Somo
very election has consequences that will affect our daily lives and our work no matter what industry we are a part of. Let’s take a quick look at November’s midterm election results:
ON THE FEDERAL LEVEL:
Republicans maintained control of the Senate and expanded their majority to 53 senators. Democrats regained control of Congress, which means we now have a divided government. Usually a divided government does not produce any meaningful results to the people of our country. However, there are two recent examples in which divided government focused on the needs of our nation and its citizens, then wonderful things happened. President Ronald Reagan and President Bill Clinton had the opposite party in control of the congress. However, working together and compromising on getting what is possible for the benefit of the American people produced two of the best periods of prosperity our country had seen in decades. They proved that good policy could be achieved when Republicans and Democrats work together in collaborative fashion and focus in creating a good education system and a good working environment for economic growth. Today, Immigration, Border Security, Health Care and Foreign Policy are issues that can only be solved if both sides focus on what’s best for the American people and America’s relationship with its allies and its leadership position in the world.
ON THE STATE LEVEL: California just became bluer after the last midterm. Democrats control the governorship and every state-wide office as well as regaining their super majority in both houses; the Senate and Assembly. As we congratulate all the winners from both sides we are urging them to be more mindful of the adverse impact their policy and legislation may have on the family-owned businesses in California. ON THE LOCAL LEVEL The two top law enforce-
ment officers of San Diego County won their reelection
for another term. NMA congratulates District Attorney Summer Stephan and Sheriff Bill Gore in their victories and ask them to continue their hard work in keeping the crime rate in the county the lowest it has been in decades, and in keeping our community safe. The county Board of Supervisors welcomed two new additions; San Marcos Mayor Jim Desmond and former Assembly member Nathan Fletcher. Three new council members are joining the San Diego City Council; Jennifer Campbell for District 2, Monica Montgomery for District 4 and Vivian Moreno for District 8. Council Member Chris Cate won his reelection for District 6. That means the Democrats have a super majority on the council and can override the veto of Mayor Kevin Faulconer. In the second largest city in the county, Chula Vista, Mary Casillas Salas won her reelection as Mayor as well as Council member John McCann and Council member Jill M. Galvez. City Attorney Glen Coogins easily won his reelection over his challenger. Other races around the county and around the state showed similar results of the electoral being frustrated with our government for its inaction to resolve the issues that matter the most to their lives. The Neighborhood Market Association will continue to work proactively with our elected officials on the local, state and federal level to represent our members’ position on issues affecting our industry. The small family owned businesses remain the backbone of our economy. Our elected officials on all levels must not overlook the importance of nurturing and protecting these businesses. The NMA through its Political Action Committee will vigorously engage the political process to defend and protect its members from harmful regulations that will affect their businesses.
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Good and Bad 2018 bills to pass the Legislature that have been signed into law. Workplace
Minimum Wage: Effective January 1, 2019, employers will be required to comply with phase-in requirements of previously enacted legislation for minimum wage increases to $11/ hour for employers with 25 or fewer employ ees, and $12/hour for employers with 26 or more employees. The City of San Diego has its own Minimum Wage Program and as of January 1, 2019 all employers, regardless of number of employees, must pay a minimum wage of $12/hour. Go to https://www.sandiego.gov/ treasurer/minimum-wage-program to find more information.
Workplace Injury: Beginning January 1, 2019 Cal/OSHA has authority to issue citations for record keeping violations that exist during the entire five-year record keeping retention period.
SB 1343 (Mitchell) Expands sexual harassment prevention training mandates to be implemented by January 1, 2020, to require that all employees be trained, if the employer employs five or more employees (rather than supervisors only at employers with fifty or more employees), with two hours of training required for supervisors and one hour required for others. Directs the Department of Fair Employment and Housing to develop or obtain online training courses on the prevention of sexual harassment in the workplace and to post it on the department’s website.
AB 2770 (Irwin) Protects sexual harassment victims and their employers from a lawsuit for defamation by an accused employee, and provides greater transparency during job reference checks and investigations into sexual harassment claims.
AB 2863 (Nazarian) Ensures that a patient will not have to pay more than the retail price of a prescription drug if that retail price is lower than the patient’s copay/cost share under his/ her health plan.
SB 1246 (Gaines) Streamlines the property tax refund process to allow counties to provide a refund without a claim being filed if the amount is less than $5,000 and there has been no trans| 22 |
fer of the property during or since the year for which the refund is due. Benefits taxpayers by allowing county auditors to order refunds without having the taxpayer fill out and mail in a form. SB 966 (Wiener) Promotes water reuse by requiring the State Water Resources Control Board to develop regulations governing the installation of onsite non-potable water reuse systems in commercial, multifamily residential, and mixed-use buildings. SB 700 (Wiener) Allows the Public Utilities Commission to extend a rate increase of $166 million annually from electric utility ratepayers to fund the Self-Generation Incentive Program, for five more years, through 2024. Terminates SGIP subsidies for technologies with non-renewable fuels beginning in 2020. Signed. SB 1477 (Stern) Increases utility rates by redirecting $50 million annually in utility ratepayer rebates to two new programs that promote low-emission space and water heating equipment and to deploy near-zero-emission building technologies. Signed. AB 3018 (Low) Imposes civil penalties of up to $10,000 per month on contractors or subcontractors that fail to comply with skilled and trained workforce requirements, subject to the discretion of the Labor Commissioner. Provides that any contractor or subcontractor that commits two or more willful violations in a three-year period, or a violation with intent to defraud, is ineligible to bid on a public works project, and requires the Labor Commissioner to publish a list of such ineligible contractors and subcontractors. SB 1300 (Jackson) Prohibits employers from requiring a release of claim or right under the Fair Employment and Housing Act (FEHA) or a nondisparagement agreement as part of a raise, bonus, or condition of employment, and prohibits a court from awarding a prevailing defendant attorney’s fees in civil actions under FEHA unless the civil action is found to be frivolous. Signed.
Continued on inside back cover
NEIGHBORHOOD MARKET ASSOCIATION “Empowering Family-Owned Businesses”
Mail Application and Dues Payment to: 6367 Alvarado Ct. # 204, San Diego, CA 92120 Email NMA President Arkan Somo at ArkanSomo@gmail.com For additional information or call him directly at 619-977-8485
RETAILER MEMBERSHIP APPLICATION Reduced Annual Membership Fee* $250 per location *Memberships are based on a fiscal year from Jan. 1 to Dec. 31 BUSINESS INFORMATION
Business Name_______________________________________________________________________ Address_____________________________________________________________________________ City_________________
Business # (____)_____________ Corporation:
Mobile # (____)______________
Fax # (____)_______________
Corp. Name ______________________________________________________
Billing Address ______________________________________________________________________________ City_____________________ County __________________State __________________Zip_________________ Contact Person ______________________________________ Title (owner, mgr., etc.) _________________________ (Last) (First) Email: ___________________________________________________________________________________ How many other retail businesses you own directly or indirectly? ___________________________________________ REFERRED BY: _____________________________________________________________________________ PAYMENT INFORMATION Annual Membership ____
$250 per location (separate applications must be submitted for each location)
Check box if you do not want $50 of your membership fee to go towards the NMA Political Action Committee.
Please, check box if you are interested in joining the NEW NMA Buying Group so we can send you additional information.
NMA Political Action Committee Law Enforcement Reward Fund Membership Legal Defense Fund
____ ____ ____
____ ____ ____
_____ _____ _____
______ ______ ______ ______ ______ ______
Please make check payable to Neighborhood Market Association or NMA Office Use Only: _____/___________QB
| 23 |
NEIGHBORHOOD MARKET ASSOCIATION “Empowering Family-Owned Businesses”
Mail Application and Dues Payment to: 6367 Alvarado Ct. # 204, San Diego, CA 92120 Email Arkan Somo at ArkanSomo@gmail.com if you need additional information Call Arkan Somo at 619-977-8485 if you have any question
SUPPLIER MEMBERSHIP APPLICATION Three Levels of Annual Membership Fees* *Memberships are based on a fiscal year from Jan. 1 to Dec. 31 BUSINESS INFORMATION
Business Name: Business Address: Street:___________________________________________________ City:
Billing Address: Street:____________________________________________________ City:
Contact Person #1:
Mobile # (_____)_____-___________
Contact Person #2:
Mobile # (_____)_____-___________ PAYMENT INFORMATION
_____$500 Annual Membership for companies with 1-10 employees _____$1000 Annual Membership for companies with 11-25 employees _____$1500 Annual Membership for companies with 26 or more employees _____ Check here if you do not want $50 of your membership fee to go towards the NMA Political Action Committee
□ Please check the appropriate box(s) if you are interested in participating in the following: □ NMA Annual Banquet □ NMA Annual Golf Tournament □ NMA Annual Buying Trade Show □ Advertising in the NMA Publications Donation Type
NMA Political Action Committee Law Enforcement Reward Fund Membership Legal Defense Fund
____ ____ ____
____ ____ ____
_____ _____ _____
Please make check payable to Neighborhood Market Association or NMA Office Use Only: _____/___________QB
| 24 |
______ ______ ______ ______ ______ ______
continued from page 22
Other AB 2343 (Chiu) Extends the time periods for which notice must be given by a landlord in an unlawful detainer proceeding when a tenant of a dwelling has failed to pay rent or made other curable breaches of the lease, and for which required responses must be provided by the tenant. Prolongs the overall eviction process. SB 759 (McGuire) Provides that if the signature on a vote-by-mail ballot envelope does not match any signature in the voter’s file, the elections official must offer the voter an opportunity to provide another signature for matching purposes. Authorizes persons to return originals or copies of such signatures up to 28 days after the election, in person, by mail, by fax, or by E-mail. SB 820 (Leyva) Prohibits confidentiality provisions in settlement agreements in cases involving sexual harassment, sexual assault, and sex discrimination, but allows the identity of the victim to be shielded (unless the victim is a government employee). Removes an incentive for businesses to settle claims, increasing the likelihood of trials. AB 1884 (Calderon & Bloom) Prohibits many types of dine-in restaurants from providing single-use plastic straws to consumers unless requested. SB 834 (Jackson) / AB 1775 (Muratsuchi) These two bills attempt to stop the production of oil and gas from new federal leases issued after January 1, 2018.
What is PROP. 65 and how would retailers comply?
roposition 65, the Safe Drinking Water and Toxic Enforcement Act of 1986, was enacted as a ballot initiative in November 1986. The Proposition was intended by its authors to protect California citizens and the state’s drinking water sources from chemicals known to cause cancer, birth defects or other reproductive harm, and to inform citizens about exposures to such chemicals. Under the statute, a person in the course of doing business cannot expose an individual to a chemical known to the state to cause cancer or reproductive toxicity without first giving a clear and reasonable warning to an individual. Proposition 65 requires the state to maintain and update a list of chemicals known to the state to cause cancer or reproductive toxicity. OEHHA is the lead agency designated by the Governor to implement Proposition 65 and to further its purposes. In carrying out its duties as the lead agency, OEHHA adopts and modifies regulations to conform with and implement Proposition 65 and to further its purposes. OEHHA’s regulations can be accessed at: http://oehha.ca.gov/proposition-65/law/proposition-65-law-and-regulations ALL retailers need to go to https://www.p65warnings.ca.gov/new-proposition-65-warnings and get the information they need to be in compliance with Prop. 65.
Prop. 65 Compliance Resources The State of California has enacted new Clear and Reasonable Warning regulations under Proposition 65 that took effect August 30, 2018, and it has a significant impact on any company’s overall XXXX. ALL retailers need to go to https://www. p65warnings.ca.gov/new-proposition-65-warnings and get the information they need to in compliance with Prop. 65.
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