Perspective on Housing
Welcome New Board Directors
INSIDE THIS ISSUE: Newsom Wants Tax System Redesigned P.5 | New Member Profiles P.13 | Upcoming Events P.19
Chamber Honored with National Award
“City Budget Crisis” Series Focused Community Attention on Deficit Challenges and Solutions In February 2019, the Salinas Valley Chamber of Commerce was one of only five Chambers to be recognized among the 850 members of the Western Association of Chamber Executives (W.A.C.E.). We were recognized for outstanding Chamber programs for our “City Budget Crisis” series of research articles. At this year’s annual Chamber industry conference, Dave Kilby, President & CEO of W.A.C.E. lauded the Salinas Valley Chamber for having the political courage to undertake such important advocacy. “This is the type of work that all Chambers should engage in to be successful Catalysts, Conveners and Champions for their communities.” Two years ago, in 2017, the Salinas Valley Chamber was among five
Chamber CEO Paul Farmer (2nd from right) accepts industry award for City Budget Crisis series.
City of Salinas Strategic Goals by Steve McShane, Salinas City Councilmember Every three years, the Salinas City Council looks at short and long-term goal setting. In January we met to review city progress and to revise our goals. Our Mayor did a remarkable job keeping the Council on task to review where we’ve been and plot a course for the immediate future. The first two hours of our retreat were dedicated to a thorough report on where the City has been in the last year or so. During 2018, we balanced our budget and allocated more capital improvement funding than we have in the history of Salinas. Thanks to the passage of Measure X, we have been able to leverage funds from other sources to start addressing sidewalks, roads and street trees. We have also broken ground on both our Police Services Building and a brand new El Gabilan Library. Alongside this good news, we also face the burden of paying for heavy costs associated with the California Public Employee Retirement System (CalPers). As reported in the Salinas Valley Business Journal and elsewhere, the City is responsible for funding an additional $70.9 million in employee retirement costs over the next 7 years. This results in a projected budget gap of $10.6 million a year. Under the leadership of Mayor Joe Gunter, we have made funding the gap our number one priority. We are actively engaged in cost cutting measures. We have also benefitted from rising property and sales tax revenues that we continue to apply toward paying down liabilities. The Salinas Valley Chamber of Commerce has been a valuable partner in working with us to address the issue. CalPERS was not the only major subject discussed at the retreat and goal setting. Your City Council has put a high priority on increasing opportunities for housing and addressing
AWARD - Continued on page 6
GOALS - Continued on page 6
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A Shared Perspective on Housing by John Bailey, Chamber Board Chair Who is responsible for ensuring that residents of Monterey County have quality affordable housing? It seems that the answer is a matter of perspective. The same appears to be true as our state and local governments grapple with competing proposals to boost housing production in the Salinas Valley. All can agree that the number one driver of cost of living in our area is housing, but the best plan to make housing in the Salinas Valley more affordable is a matter of perspective. My perspective is one of a business owner with six-full time employees. I want to provide local jobs and a living wage, and it saddens me to know the crushing effect of the cost of housing on the local work force that is the lifeblood of the local economy. It is a regular occurrence for employees, once
trained, to leave Monterey County for other parts of the state to find more affordable housing. What is perhaps most troubling is the number of homeless students in Monterey County. No matter one’s perspective, it is shocking to read in the local paper that more than one-third of the students in one local school district are considered homeless. Is the answer to the lack of quality affordable housing to be found in additional regulations? It appears that a majority of the members of the Salinas City Council think maybe. In January of this year, the Salinas City Council authorized a study to consider the creation of a “rental registry” that would give City officials more control to regulate housing, to make certain that people are living in safe conditions.
Not everyone agrees that more regulation is the solution to the problem. Some argue that more regulations will only increase the costs of housing by driving up costs for some landlords, and by causing others to remove their properties from the market entirely. Perhaps more importantly, most people dream of owning a home, not renting forever. It seems that everyone who is working full time in this county should at least have a shot at owning a home if they are working full time. It is for these reasons that the Salinas Valley Chamber of Commerce leadership has made housing our number one issue to focus on in 2019. It seems it is a challenge that everyone, from every perspective, agrees must be addressed. The Salinas Valley Chamber is looking to work with others throughout our region to gain insight on how we can best solve this housing crisis. We recently put out an invitation to other organizations to work collaboratively with the Salinas Valley Chamber to gain insight from differing perspectives. We are pleased to announce that the Monterey Bay Economic Partnership (MBEP) and the Salinas Planning and Research Corporation (SPARC) have agreed to act as liaisons to the Chamber in 2019, so that we can hear as many perspectives as possible. If your organization is working to increase the availability of quality housing in Monterey County or if you share our goal of improving the quality of housing for our local workforce, we hope you join us! ■
PROFESSIONAL STAFF ■ Roxanne
Noble Boss, Membership Director ■ Sydney Allred, Member Services Coordinator ■ Phillip Saldaña, Operations Manager ■ Thom Taft, Finance Manager ■ Paul Farmer, CEO & Chief Member Advocate
2019 EXECUTIVE COMMITTEE ■ Chair
John Bailey Chair Jim Bogart ■ Vice Chair, GRC Kevin Dayton ■ Vice Chair, Finance Bill J. Hastie ■ Vice Chair, Chair-Elect & Events Julie Ann Lozano ■ Vice Chair, Membership Kristy Santiago ■ Past
2019 BOARD OF DIRECTORS ■ Andrea
Bailey (Chevron) Bumba (Consultant Community/Health) ■ Esteban Calderon (Comerica Bank) ■ Raymond Costa (RHC Management Co, LLC dba McDonald's) ■ Frank Geisler (Geisler3) ■ John Haupt (Haupt & Associates) ■ Albert Maldonado (MP Express Printing) ■ Rodney Meeks (Credit Consulting Services, Inc.) ■ Tom Meyer (1st Capital Bank) ■ Kathy Miller (Aera Energy) ■ Krishna Patel (Valvoline Instant Oil Change) ■ Brandon Patterson (Brandon D Patterson Windermere Valley Properties) ■ Starla Warren (Monterey County Housing Authority Development Corporation) ■ Kalah
CHAMBER LIAISONS ■ Peter
Kasavan (SPARC) Huerta (Monterey Bay Economic Partnership)
LEGAL COUNSEL ■ Matt
CREATING A STRONG LOCAL ECONOMY PROMOTING THE COMMUNITY PROVIDING NETWORKING OPPORTUNITIES POLITICAL ACTION REPRESENTING THE INTERESTS OF BUSINESS WITH GOVERNMENT
Thank you Awards Luncheon Sponsors! Presented By
This year saw another 500+ community leaders and local businesspeople join our always successful Annual Awards Luncheon.
Partner Sponsors 1st Capital Bank • American AgCredit • AgroThrive • Ausonio Inc • Boys & Girls Club of Monterey County Cecilia Kennedy Insurance Services • Central Coast Federal Credit Union • Credit Consulting Services • Driscoll’s Strawberry Hastie Financial Group • JRG - Attorneys at Law • Kasavan Architects • Monterey Regional Waste Management District Noland, Hamerly, Etienne & Hoss • Ottone Leach & Ray LLP • Smith Family Wines • Union Bank • Wheeler’s Flooring 4
Newsom Wants Tax System Redesigned by Alexei Koseff, The Sacramento Bee California likes to tax the rich. A lot. The top 1 percent of earners provides about half of personal income tax revenue, by far the largest source of funding for the state government. The downside is that when the stock market goes bust, so does California’s budget. Experts, from Gov. Jerry Brown on down, are well aware of the problem, yet the politically perilous task of overhauling the volatile tax system has failed to gain traction for years. Can Gavin Newsom change that? Among a laundry list of other big and ambitious policy goals, the Democratic governor-elect has expressed interest in revising the state tax structure. With revenues booming and a historic Democratic supermajority elected for the next legislative session, this may be his best chance. It’s a priority for the business community, which feels burdened by mounting tax proposals as local governments look for ways to close their lingering budget gaps. But Newsom could face immense resistance among liberal supporters, who worry that any changes will push more of the tax burden onto lower-income residents. “Nothing, nothing, no issue more vexing than this one, because everyone has a trophy on the wall,” Newsom told reporters aboard his campaign bus last month, shortly before his election. “Gov. Brown had no interest in pursuing it. And I would argue there’s no greater political mind in our lifetime than Gov. Brown,” he added. “So I’m not naive about this, but I am not going to neglect this issue, and I’m going to lean into it and express a desire to see if we can possibly come together across our differences.” California has passed comprehensive overhauls of its tax system only twice in state history, according to a 2016 report by Controller Betty Yee. The last time was in 1935. But since voters approved Proposition 13 in 1978, radically limiting property taxes, lawmakers have constantly
fiddled with the tax code, looking for ways to make up for the major drop in what was once California’s primary source of funding. Over the past two decades, the state has increasingly come to rely on personal income taxes, which now comprise more than two-thirds of the general fund, according to the Legislative Analyst’s Office. And because of the progressive tax structure, wealthier Californians pay a larger share of their income than poorer Californians in taxes. A significant portion of that comes capital gains, such as investment returns from the stock market. So when the economy is doing well, California reaps the reward at higher levels than other states, and when the economy is bad, it suffers disproportionately. The LAO estimated last year that the income for the top tenth of earners in California is seven times as volatile as the remaining 90 percent. Newsom said he believes in a progressive tax code, but he wants to avoid a repeat of the staggering cuts from the economic recession a decade ago, which he said fell the hardest on those who could least bear it: women, children and minorities reliant on social services. “Volatility is not our friend, it’s our enemy,” Newsom said. Previous efforts to even out California’s fiscal fortunes have floundered. In 2009, a commission formed by then-Gov. Arnold Schwarzenegger in the wake of the recession reviewed the tax code. It recommended scaling back personal income tax rates to just two brackets — 2.75 percent for incomes below $28,000 and 6.5 percent for those above — and replacing the corporation tax and state sales tax with a 4 percent tax on business activity, better capturing a modernizing economy that has shifted away from
manufacturing and tangible goods. Criticized from all sides, the proposal went nowhere. This past legislative session, Sen. Bob Hertzberg, D-Los Angeles, introduced a bill to lower the sales tax by 2 percent and replace it with a 3 percent tax on some business services, such as legal representation and accounting. The measure did not even get a committee vote. With Newsom now in office, business groups are prioritizing a campaign to flatten the tax burden to a broader spectrum of sources. Bracing for a possible war over property tax limits on the 2020 ballot and a growing number of sales tax hikes in cash-strapped cities and counties, they argue that California’s impulse to raise taxes on corporations to balance the budget is another factor that makes it difficult to operate in the state. Rob Lapsley, president of the California Business Roundtable, said more certain tax conditions would improve the business climate. He pointed to Newsom’s own history of founding companies, like PlumpJack winery in Napa County. “His experience is unequivocal in teaching him that. He should know that,” Lapsley said. The business community wants Newsom to consider an arrangement that allocates a greater portion of the money to the local level, Lapsley said. Most importantly, with state coffers overflowing, it should be revenueneutral. “We don’t need any new taxes, period,” he said. That could be a challenge for Newsom’s policy agenda, which includes such budget-busting goals as universal preschool and health care for all. Liberal groups are also likely to put up a fierce opposition. Jessica Bartholow, policy advocate at
the Western Center on Law & Poverty, said discussion of California’s personal income tax volatility often feels like a roundabout way to advocate for reducing the onus on the rich and corporations. “Capital gains is money earned by people who didn’t earn it,” she said. “If wealthy corporations and people are having an upswing in their interests, then why shouldn’t the poorest people?” Bartholow said she is not opposed to overhauling the state tax structure, but changes should aim to even out the impact of a bad economy, through policies like a larger rainy-day fund, rather than fluctuations in revenues. She said the state should use its tax code to address its “stark inequality.” Bigger tax credits for low-income earners could actually help the economy, she said, since they are more likely to spend that money, rather than save or invest it like wealthier residents. California “should ride the wave of a great economy,” Bartholow said. “Maybe we could use that as an opportunity to get some of things that the poorest Californians need to reduce the volatility in their lives.” Newsom has not indicated what direction he would like to see a tax redesign go. He told reporters that “all of that needs to be brought to the table.” But any plan, which would need the approval of two-thirds of the Legislature, will require an enormous expenditure of his political capital. In a statement, Senate President Pro Tem Toni Atkins said addressing tax volatility is “worthy of additional consideration, but higher taxes on middle and lower income families is not the solution.” “California is in a much better position than any time in recent history to weather an economic downturn because we have a rainy day fund,” she said. “This has allowed us to take spiking revenues during the good years to fill the valleys in the bad years, and we expect to build on this responsible budgeting practice.” ■
➟ AWARD – Continued from page 1
honorees recognized by W.A.C.E. for leading the “Local First” coalition (fostering the adoption and implementation of local preference policies, to keep major investment dollars with local companies). In 2014, we received an Honorable Mention award for our Marketing program. With three major recognitions in six years, one person was overheard saying the Salinas Valley Chamber is like the New England Patriots of the Chamber world. Here’s a recap of the “City Budget Crisis” series that garnered kudos this year.
Background on City Budget - Taxes and Structural Deficit To help close a dire budget gap, in November 2005 voters in the City of Salinas passed Measure V, a half-cent sales tax. This brought in an estimated $10M annually to a then-$110M budget; it was scheduled to sunset in 2016. In 2015, the City Council put this measure before the voters to make the tax permanent. It passed. But that was not enough. The Council also put before the voters in 2015, Measure G, a one-cent sales tax. The Chamber supported both of these measures. But they still were not enough. Despite these significant increases to revenue, the City continued aggressively pursuing any and all sources of increasing revenue. In 2016, the Chamber was at the table as the City attempted to put forth major increases to planning department permit fees (with many proposed increases at 40% or more). The Chamber had to say, “Let’s slow down. If all of the recent tax increases are not enough, what’s really going on here?”
What’s Going On? – Delving Deeper Chamber leadership began performing our own research and conducted discussions with City leaders. We soon realized what is now commonly understood: the cost of ever-rising pensions and employee benefits were driving major increases in City costs, with no end in sight. This is not a problem unique to our City, but it is one that must be dealt with. As these costs take an increasing share of revenue, precious little is left for community programs like libraries, and maintaining infrastructure like streets and buildings.
Public Information Campaign Beginning in early 2017, the Chamber started ringing the bell – informing
our membership and the community about the calamitous state of the City’s budget. We performed detailed research in-house and held discussions with City leaders to validate our findings. Throughout 2018, we employed our sizeable media resources to publish a campaign we called “City Budget Crisis.” With circulation of 17,000, the Business Journal is the single most impactful medium the Chamber possesses. We created a year-long series of cover articles to highlight the following budget-related issues: 1. The ever-increasing cost of the City’s employee benefits and pensions 2. Overtime costs, focusing on the Police and Fire Departments (largest drivers of overtime) 3. The Fire Department’s special deal and “binding arbitration” 4. The Fire Department’s compensation for each employee in 2017 5. The Fire Department’s compensation, compared to peer cities 6. City of Salinas Employee Raises 7. Unsustainable CalPERS rates 8. City of Salinas Overtime Study This series of articles became the talk of town among businesspeople and City leaders and employees alike. The Chamber made some bold decisions, including to publish the names and compensation of each member of the Fire Department. With so much attention focused on the reporting, we ensured everything we published was consummately researched and focused on facts.
Results of our Initiative Much of our coverage reflected costs related to the Police and Fire Departments, as those two departments consume most of the City budget. For several articles, we focused on the Fire Department, as the Police Department had already garnered major wage increases and at the time, the Fire Department was in contract negotiations. Despite our highlighting the situation, the Salinas City Council still voted to give the firefighters a sizeable raise of approximately 10%. The most important positive outcome of our campaign was to encourage the City to bring in outside consultants to develop a 215-page document outlining strategies to close the structural budget deficit. The Chamber has offered important feedback on this plan and has encouraged City leaders to “grow the pie” by focusing on housing and streamlining the permit center. In creating the “City Budget Crisis” series, we believe the Chamber is fulfilling our duty for members by considering and acting on broader issues for the community. When the next recession hits and taxes and fees go up, our members will know that our Chamber has built a record of proactive accomplishment on their behalf. ■
➟ GOALS – Continued from page 1 homelessness. We have considerable support with one-time state funding to address homelessness. We have also prioritized incentives for the private sector to start building. We are partners with the County of Monterey on a shelter that will engage a wide array of services to address our homeless population. I am pleased to report that the City Council’s retreat included high priorities for jobs and economic development in the City. There was ongoing discussion about ways to continue to improve the planning and building department as well. In the near future it is expected the City will look at a package of recommended improvements. I think everyone is especially proud of small businesses popping up downtown along with more downtown housing development. The City’s Ag Tech programs have yielded more than fifty start-ups
since inception. Some of them are located right in downtown Salinas. The close of the retreat included a robust discussion regarding the Salinas Plan. The Salinas Plan is a report that includes dozens of recommendations for more focused delivery of services and cost cutting measures. It is expected that the recommendations will be implemented over the next year or more. Local government cannot exist without a strong business community and I’m convinced we need to do more. Will you help us? We need community ideas and solutions! I invite you to reach out to me with ideas and feedback at firstname.lastname@example.org or (831) 970-4141. Thank you for s upporting your City and your local Chamber of Commerce. ■
Welcomes New Faces CHAMBER BOARD
The Chamber Board is comprised of up to 20 members who change a bit each year, as some retire off the Board and some new Directors are welcomed. We are always striving to make sure our Board is made up of people who look like our membership in a number of ways including by industry, age, gender, race. Numbering seven, our “incoming class” for 2019 is diverse and larger than normal. These are the leaders who will help ensure that our Chamber stays at the forefront of both our strategic direction and financial oversight. Last issue we met a few of them, and we’d like to introduce a few more.
and graduated as a Doctor of Pharmacy from Hampton University located in Virginia. After graduating, he moved to California. He enjoys getting to know people which led to him getting his REALTOR license. This opportunity has been an amazing one for him because of the personal gratification he receives from helping families and individuals with the biggest purchase of their lives.
Albert Maldonado enjoys living and working in the city of Salinas. He is the owner and operator of MP Express of Salinas that specializes in commercial printing and direct mail services. He has been in business for 22 years with the support of a great business team. He is a husband, father of two and is involved with community organizations like the Downtown Rotary Club, Little League, L.U.L.A.C and the Salinas Valley Chamber of Commerce.
Esteban Calderon is the Vice President and
Banking Center Manager at Comerica Bank, located at 430 S Main St. He is a graduate of San Jose State University, where he earned a Bachelor of Science Degree in Business Administration, with a Concentration in Information Systems. Esteban is married and proud to be a native of Salinas.
Photo by Batista Moon Studio
Brandon Patterson is originally from Maryland
L to R
: Kathy Torres, VP MCB; Ray Retez, Luis Solano, Kim Solano, Haute Enchilada Cafe and Gallery Owners; Charles T. Chrietzberg, Jr., MCB President/CEO
The Haute Enchilada Cafe and Gallery boasts an eclectic menu of sustainable seafood and local organic produce, wine and beer tasting plus two art galleries with local artists’ original work. From palate to palette the Haute Enchilada Cafe and Gallery has something for everyone! Open daily from 11 AM to 9 PM for lunch and dinner as well as full bar, espresso bar and dessert. 7902 A Moss Landing Rd., Moss Landing, CA 95039 (831) 633-5843
Ray Retez, Luis Solano and Kim Solano, Owners
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L.A. Taking Huge Role in NorCal Reservoir
tips & advice on digital marketing by Phil Fisk, President Coastline Marketing Group
by Dale Kasler and Ryan Sabalow, The Sacramento Bee
What Your Website Says About Your Company No matter what industry you're in, a great website is a must. You wouldn't welcome customers into a dirty storefront or pay to have unprofessionallooking brochures made. A poorly designed website is the online equivalent of these embarrassments. In our digital age, your website makes a statement to potential and existing customers or clients. Make sure it's a positive one! Make an Impression There's a lot of competition for users' attention online. Your site must be riveting enough in the first few seconds of a visit to keep them from leaving. Make sure your site looks clean and attractive to ensure that visitors stick around long enough to become customers. Of course, the goal is to convert a visit to a sale, but even if they don't buy now, they may return at a later date.
What Makes a Website Great?
Visitors came to your website seeking products, services or information. Show your gratitude by making it easy to find what they want. Clearly marked, logically organized pages help provide a great user experience. Wouldn't you want to return to a place where you felt appreciated and got what you needed? Reward your guests with a satisfying visit every time, and you could become their go-to source in your industry.
Be Seen as a Value Provider
Content may not seem like a must for your business. But blog posts, articles and other useful text can provide great value to your users. 1. How-to articles help customers use your products as effectively as possible -- or provide them with ideas for new ways to use them. Many internet users are searching for how-to information, either to satisfy an immediate need or to avoid paying someone else for a service they can perform themselves. These articles tell visitors you care about saving them time and money. 2. Blog posts are excellent for establishing your company as an authority in your field. They also contribute to your marketing efforts by giving readers an idea of who you are as a brand. And you'll draw traffic to your website with content that is appropriate to your website, contains relevant keywords, and deals with topics for which readers are searching.
Establish Your Business Identity
Even if your company is wellestablished in your community or among your customer base, your website may tell a different story. A bare-bones or hard-to-navigate site tells prospective buyers you don't care. While that's probably far from the case, the amount of care you put into your website shows the online world who you are. ■
Sites Reservoir is Sacramento Valley’s water project. But L.A. is taking a huge role As water projects go, Sites Reservoir has always been the Sacramento Valley’s baby – a multibillion-dollar reservoir conceived by Valley farmers, carved out of a ghost town an hour north of the Capitol. Sites Reservoir is a $5.1 billion project that Around the Valley, “Build would take water piped from the Sacramento Sites Reservoir” signs dot the River 14 miles away, and store 1.8 million roads along mile after mile of acre-feet of water for participating water orchards and rice fields. agencies throughout the Sacramento Valley and as far away as Southern California. But a funny thing has happened as the Sites project, Fritz Durst, a Yolo County rice designed as the largest reservoir grower and chairman of the Sites built in California since the 1970s, Project Authority. pulls together its financing: It’s Durst and other backers insist Valley becoming much less of a Sacramento interests remain firmly in control of Valley venture. Sites’ destiny, however. By state law, Over the past two years, scared the Sites authority’s governing board is off by the anticipated costs of storing composed solely of representatives of water there, Valley agricultural Sacramento Valley water agencies, irrigation districts have steadily said Jim Watson, the authority’s reduced their ownership shares of general manager. Sites, giving way to water agencies Regardless of how the ownership from Southern California and the San is split up, Watson said the project Joaquin Valley. is moving forward. The state has The powerful Metropolitan Water committed $816 million in Proposition District of Southern California — 1 bond money to Sites, and Watson serving 19 million Californians as said the federal Bureau of Reclamation far away as San Diego — is nearly is considering sizable investment in as big an investor in Sites as all of the project, up to a maximum of the Sacramento Valley farm districts around $1 billion. combined. Metropolitan agreed Sites is inching forward as Gov. Tuesday to contribute another $4.2 Gavin Newsom begins to put his million to help plan the project. stamp on California water policy. The shift in ownership raises Sites has been on the awkward questions about the $5.2 drawing board for decades, and billion reservoir’s future and how it will serve Valley water supply needs. groundbreaking is still likely several After all, the Valley is a region where years away. The project would hold Southern California water interests as much as 1.8 million acre-feet, or have long been viewed with suspicion twice the size of Folsom Lake. It would whenever they seek to tap the become the largest reservoir built in abundant supplies found in the north. California since New Melones opened on the Stanislaus River in 1979, “That’s unfortunate, that it and the seventh-largest overall. becomes a perception issue that it’s a An acre-foot is 326,000 gallons. ■ Southern California water grab,” said
Finance Director on State Budget by CalChamber We are in extraordinary times right now, but that is punctuated by a lot of uncertainty, California Finance Director Keely Martin Bosler commented to a luncheon audience of more than 100 business leaders at the California Chamber of Commerce.
California Finance Director Keely Martin Bosler and CalChamber President and CEO Allan Zaremberg
Bosler covered five areas in Governor Gavin Newsom’s budget proposal of interest to the business community: budget resilience, education, paid family leave, housing, and federal tax conformity. The budget allocates $13.6 billion to building “budgetary resiliency” and paying down the state’s unfunded pension liabilities. This includes: • $4 billion to eliminate all outstanding budgetary debt as well as deferrals; • $4.8 billion to build reserves, bringing the state’s Rainy Day Fund to more than $15 billion this year (the largest amount ever) and nearly $20 billion over four years; • $4.8 billion to pay down unfunded retirement liabilities. The budget’s remaining spending prudently charts the path toward building a long-term fiscal foundation, Bosler explained. More than 86% of the new spending in the budget is for one-time purposes, and in each of the out-years the budget has a positive operating balance, she said. The budget also more than quadruples the size of the state’s safety net reserve, strengthening programs that provide the first line of defense for families
during an economic downturn. “We are almost 10 years into the longest economic expansion in history, and all of those who study, and look at these things know about, know we have these things called ‘business cycles’ and what goes up, does eventually come down at some point,” said Bosler. “All of these things are the reason why we’ve put together the budget we’ve put together that really starts with a very strong foundation.” Rainy Day Fund Working on all the prior work from the administration of Governor Edmund G. Brown Jr., the Newsom administration plan for 2019–20 proposes significant investment in the state’s rainy day fund. Bosler projects that the fund will have $15.3 billion by the end of the budget year, and that the amount will grow to approximately $19.4 billion by 2022–23, absent an economic downturn. Director Bosler explained that the Newsom administration has a legal opinion which states that deposits made into the Rainy Day Fund from the end of the Brown administration do not count toward the constitutionally mandated 10% savings rate. The Newsom administration agrees with the legal findings. Therefore, the state will not be meeting the state constitutional target until 2022 or 2023, which means that the state will continue to make mandated deposits into the reserve for the foreseeable future. Largest K-12 Education PerPupil Expenditure in History The funding guarantees for K–12 schools and community colleges in 2019–20 is $80.7 billion—a new
all-time high with per-pupil expenditures now nearly $5,000 higher than just seven years ago, Bosler explained. “Overall this budget provides around $500 per pupil more than last year,” Bosler said. The budget also includes a $750 million one-time General Fund expenditure to address barriers to full-day kindergarten. Bosler remarked that about one-quarter of students enrolled in kindergarten do not have access to a full-day kindergarten program. To address the rising costs of pensions in the California State Teachers’ Retirement System (CalSTRS)
and provide immediate relief to districts, the budget proposes a $3 billion one-time non-Proposition 98 General Fund payment to CalSTRS on behalf of schools. Bosler called this move “extraordinary.” Overall, this payment is expected to provide immediate relief to school districts and will reduce the out-year contribution rate by half a percentage point. Housing To address California’s housing crisis, the budget includes a $1.3 billion one-time General Fund allocation and a new approach to spur housing development to address the state’s affordability crisis and promote economic growth. The budget also
expands state tax credits to further develop both low- and moderateincome housing, and proposes new innovative housing on excess state property. “When we talk about affordability in the state, the single largest thing we are talking about housing,” Bosler said. “I think that really impacts every one of us.” The Governor is making a sizable one-time investment to really get local governments doing things differently, Bosler said. Local governments that meet regional housing goals will receive additional funds, but those that don’t meet those goals may eventually see transportation dollars diverted elsewhere in the state, Bosler explained. She remarked that California just isn’t seeing housing permits at the level needed to keep up with the natural growth of the state. She estimated that there were maybe
113,000 units granted permits statewide when California needs 200,000 built every year. “So we have a long way to go,” she observed. “I think the Governor is under no illusion that this is going to be easy, but he wants to put money on the table and get together with local governments and figure out how to move the needle here.” The Governor also is proposing to conform state tax law to the new federal opportunity zone provisions, which would provide relief from some capital gains taxes for investments in affordable housing and green technologies in newly-designated Opportunity Zones. ■
Do I Need to File a Federal Estate Tax Return?
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by Chuck Des Roches, Attorney Noland, Hamerly, Etienne & Hoss
One of the most common questions clients ask their estate planning attorneys is whether they need to be concerned about inheritance tax – either as beneficiaries of family members' estates, or as the people who will be leaving their property to their loved ones. While there is no longer an "inheritance tax" in California, there is a federal estate and gift tax that could take a large (40%) bite out of what the intended beneficiaries of an estate or trust might otherwise receive. Under the current tax law, most of us will not need to worry about the federal estate tax issue, because each of us has an exclusion from estate tax (called the "Applicable Exemption Amount" or "AEA") that allows us to leave up to $11.2 million in wealth to whomever we please without incurring the tax. In addition, since January 1, 2013, under something in the tax law called "portability", the AEA of a married person who dies may be transported his/her surviving spouse, effectively doubling the surviving spouse's AEA and allowing him/her to leave $22.4 million to whomever the surviving spouse chooses. HOWEVER, the current AEA is set to expire in 2025, reverting to the pre-2018 law that allows each of us to leave $5 million, adjusted annually for inflation ($5,490,000 in 2017). The good news is that portability will survive, and a married couple could still leave $10 million + to their intended beneficiaries. In order to take advantage of the portability option, the executor or personal representative of the
deceased spouse must file an IRS Form 706 Federal Estate & Gift Tax Return within nine months of the date of the deceased spouse's death (15 months if an application for the automatic six-month extension is filed prior to the expiration of the nine month deadline). Having an IRS Form 706 prepared is not cheap – I've had clients who paid their accountants anywhere from $9,000 to $15,000 to get the return completed. Most people have estates that are valued well below $5 million, let alone $11.2 million, and aren't really keen on spending that kind of money just to elect portability to get their deceased spouse's AEA transferred to them when they almost certainly will never need it to completely avoid the dreaded federal estate tax. Generally, I advise my clients that it is their decision to make. There are many factors (including, but not limited to, the client's age, health, and prospects of inheriting or receiving large amounts of wealth), that impact whether it makes sense to spend the money to file or not to file. My suggestion is that you periodically check in with your estate planning attorney and/or tax professional to make sure you are informed about the current state of the tax law concerning federal estate tax and that you seek advice on whether you need to do tax planning, including filing an IRS Form 706. ■ © 2019 Noland, Hamerly, Etienne & Hoss. This article is intended to address topics of general interest and should not be construed as legal advice. Charles Des Roches is certified as a specialist in probate, estate planning, and trust law by the State Bar of California’s Board of Legal Specialization. He is the President of the Monterey County Bar Association.
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The College of Business Showcase May 2, 2019 H 6-9 p.m. University Center, Ballroom This Showcase builds relationships between CSU Monterey Bay, its graduating students, and the local business community. Outstanding seniors and two community leaders will be honored during the celebration.
5163 COB Showcase Print Ad 19.indd 1
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333 Salinas Street Salinas, CA 93901 831.424.1414 470 Camino El Estero Monterey, CA 93940 831.373.3622
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Should California Buy Disaster Insurance? by Judy Lin, CalMatters
premiums to cover their wildfire costs. Hoping to save California taxpayers some money after spending nearly Dodd and Lara say the state needs to $1 billion to fight wildfires last year, get creative in confronting climate three officials say it’s time to look at change-driven disasters, which have purchasing disaster insurance for the state. transformed California into “a tinderbox” Napa Democratic Sen. Bill Dodd, during fire season. Insurance Commissioner Ricardo Lara Last year, more than 6,000 wildfires and Treasurer Fiona Ma announced burned 876,000 acres, leveled thousands Senate Bill 290, which would authorize of homes and killed 104 people. the state to explore purchasing a policy The state recorded $24 billion in to cover wildfires, earthquakes, floods insured losses in the two most destructive and other disasters. wildfires—the Tubbs Fire in 2017 and the “It works just like your home insurance Camp Fire in 2018. As a result, the state but for our state,” Lara said at a Capitol has exceeded fire suppression costs in press conference Thursday. “You pay a seven of the last 10 years. premium each year and we are protected. In 2018, California spent If a disaster strikes, once you cover the Firefighters battle the Camp Fire in Butte County. $947 million on fire suppression deductible, the plan pays you back for Photo by Karl Mondon, Bay Area News Group and emergency response, far exceeding your losses.” the budgeted $450 million. Other states and even the federal government have used reinsurance “This is a smart approach to one of the biggest challenges ever faced policies to manage costs associated with natural disasters. Notably the by the state of California and that is, how to keep the public safe without Federal Emergency Management Agency purchases protection on their flood response to hurricanes. And Oregon has saved millions by paying breaking the bank,” Dodd said. ■
Media, Advertising & Marketing The Salinas Valley Chamber of Commerce encourages you to shop and dine at local businesses. For every $100 spent at locally owned businesses, $73 stays in the community.
Letâ&#x20AC;&#x2122;s keep the Salinas Valley strong â&#x20AC;&#x201C; shop at these member businesses.
KSBW TV (831) 758-8888
Armanasco Public Relations (831) 372-2259
LC1 Productions (831) 444-1082
Boots Road Group (831) 612-9200 Coastline Marketing Group (831) 789-9320 Entravision (831) 373-6767 Geisler3 (831) 372-6789 iHeartMedia (831) 755-8181 International Paper (831) 757-5381 KION TV (831) 422-3500
MP Express Printing (831) 758-9040 PageOneDesign (831) 917-2118
Snow Signs (831) 443-4951 South County Newspapers (831) 385-4880
Lowe Packaging Group (831) 610-9000
Progressive Packaging Group (831) 424-2942
The Californian (831) 424-2221
Magnitude Visuals (831) 204-1972
Richard Fontana Design (831) 747-0348
The Gennis Agency (831) 422-6636
Mapleton/Radio Monterey Bay (831) 658-5200
Salinas Valley Embroidery (831) 422-8070
The Maynard Group (831) 644-9300
Sambrailo Packaging (831) 724-7581
TMD Creative (831) 758-6425
Signworks (831) 899-8700
Valley Yellow Pages (800) 350-8887
Smile Business Products (831) 758-1474
Vegetable Growers Supply Company (831) 759-4600
Monterey County Herald (831) 372-3311 Monterey County Weekly (831) 394-5656 Moxxy Marketing (831) 975-5002
A Special Thanks to Our Strategic Partners and Stakeholder Members
New Member Profiles Downtown Book and Sound At Downtown Book & Sound, we believe in the magic and power of the written word. So much so that we have a real bookstore offering new and gently used books, movies and music. If we don't have it, we can get - fast! For your convenience, we are open 7 days a week from 10am until 9pm. We invite you to visit us in Downtown Salinas and look forward to welcoming you to our space soon. 213 Main Street, Salinas • 831-477-6700 DowntownBookandSound@gmail.com DownTownBookandSound.com
Las Islitas Grill Las Islitas Grill, El Kora, Las Islas Marias, and Las Islitas Restaurants are all family-owned restaurants that specialize in seafood. We have served our community for more than twenty years. We pride ourselves on delivering excellent service and make it a wonderful experience for each of our valued customers. We’re not your only option but we are the best one. Come try us out we have 4 locations; El Kora - 153 Griffin St., 831-753-6989 Las Islas Marias - 1565 N Sanborn Rd., 831-751-9557 Las Islitas - 1230 Main St, Watsonville, 831-406-3585, and our newest location Las Islitas Grill, 805 W Laurel Dr.
East Garrison East Garrison is designed with opportunities to live, shop, play, explore and enjoy in a village-inspired setting. Its 244 acres include distinct neighborhoods of new homes within easy strolling distance of many parks and a planned town center. An Arts District will repurpose historic buildings into a vibrant cultural asset for the entire region. Close by are all the amenities that make the Monterey Peninsula a world-class destination. Create your future here. (831) 800-3964 • EastGarrison.com
Kings Oil Tools Kings Oil Tools, Inc. was established in San Ardo, CA in 1982. Our company was built on the convenience of a "One Stop Shop", offering a complete line of oil well servicing equipment within close proximity to our customers' locations. We also proudly serve Bakersfield, Derby Acres, Coalinga, and Taft. We offer quality equipment and a "Customer Comes First" mentality and our technicians possess hundreds of years of combined downhole well experience. We are 150 employees strong and committed to personal safety to return each of us home "Incident and Injury Free." (805) 238-9311 • KingsOilTools.com
Rodriguez Tree Service Rodriguez Tree Service is a family-owned operated company with over 30 years of experience. We offer complete tree services and yard maintenance for all Monterey County, Gilroy, and Santa Cruz residents. We specialize in tree removal, view enhancing, and tree trimming. Your satisfaction is our priority. Our services include: Tree Service, Removals, Trimming, Stump Removals, View Enhancements, Landscape Maintenance, Lawn Service, Scrub Maintenance and Removals, Planting, and Property Cleanup. We can handle your emergency calls too! • (831) 595-8092 RodriguezTreeService01@gmail.com • RodriguezTreeServicesCA.com
Virtuous Tax & Financial Kristen Edgar and Lupe Ruiz together have 29+ years’ experience in Tax Preparation. We have experience in real estate sales/loans, bookkeeping for non-profits and small businesses. We specialize in individual and business taxes. Our mission is to provide quality, accurate, and affordable financial services including but not limited to Tax Preparation, Bookkeeping, and Payroll Services. We want to build lasting relationships with our valued customers and help our clients reach their financial goals. 21 W Laurel Dr Ste 65, Salinas • (831) 256-2750 • VirtuousTax.net
Follow us on Social Media MARCH 2019
Salinas Valley Chamber of Commerce @SalinasChamber Salinas Valley Chamber of Commerce
CA Supreme Court and Local Taxes by Ben Christopher, CalMatters California’s Supreme Court has thrown cities— and citizens—into chaos over local taxes The California Supreme Court has some explaining to do. Late last year, the city of Oakland put a new land parcel tax on the books, after 62 percent of voters turned out to boost funding for public education. Now a local business group is suing the city, arguing that the new tax needed two-thirds of the vote—just over 66 percent— to pass. San Francisco faces a similar problem, only twice as big. The city recently began collecting two new taxes: a gross receipts levy on commercial landlords to fund childcare services, and a land parcel tax to increase teacher pay. Last June, each received 51 and 61 percent of the vote respectively. The city is being sued twice. And then there’s Fresno. After 52 percent of voters there opted to increase the city’s sales tax to fund park improvements, city leaders decided to play it safe
and do nothing, noting that 52 percent is clearly less than 66. A local nonprofit took them to court for not collecting the new tax. Sued if you do, sued if you don’t. The reason for all this fiscal confusion: the state’s highest court. “It creates havoc for public agencies, it creates all this strange uncertainty for taxpayers and everyone else involved,” said Michael Coleman, an advisor for the League of California Cities, which represents city governments in the Capitol. “This kind of thing fuels cynicism about government.” The central question at issue is a simple one, or at least it ought to be: How many votes does it take in California for a new tax to become law? Over the last four decades, California voters have passed a series of amendments to the state constitution, all designed to make it harder for governments to tax them and raise new revenue. Proposition 13 from 1978 is the mother of all these tax blockers, but voters and the courts have been going back and forth over the details ever since. In 1996, voters passed Prop. 218, which clarified that any tax designated for a specific purpose— say, to fund affordable housing— needs two-thirds of the vote to pass. Since then it was widely assumed that this rule applied to all specific taxes—no matter how they find their way onto the ballot. But a year and a half ago, the state’s Supreme Court threw that into question. ■ [Editor’s note: for the rest of this story, please visit https://calmatters.org/ articles/local-tax-chaoscalifornia-supreme-court]
Chamber Events There were plenty of Boys and Girls (and a Club) invited to the Grand Opening of the new XFINITY Store by Comcast.
Chamber Membership Director Roxanne says “Delicioso!” every time she eats at the newly-opened Las Islitas Grill Mexican seafood restaurant, near the Laurel Inn.
Peter Maturino with Paramount Properties celebrates opening his company’s new office in Salinas.
Joseph Sanchez and Caliber Home Loans opened their new office right beside their friends from Paramount Properties.
Wow! Where to start? Do I start with the fact that I am immigrant from the Netherlands? I’ve been here for more than 20 years. Does that still count? I’m practically a native at this point. I even became a US citizen back in 2011! That’s nearly 10 years ago. I suppose I can mention WHY I became a citizen. That was an easy decision. After serving my adopted country in Iraq with the US Army, it was a no-brainer to be part of the land of opportunity. Maybe I should talk about my hobbies. Yeah, that’s always interesting. I like Spartan races and trail running. A Spartan race is for people who like to run a lot, and then get punished with extra exercises if they fail an obstacle. Umm, that sounds like a weird sport. Maybe traveling. Yeah, that’s a good one. I love to travel and go to National Parks with my family. The outdoors is very important to me and I spend as much time as possible being part of nature. Right now, I’ve visited most of the National Parks on the West Coast,
LEADERSHIP MONTEREY COUNTY ANNOUNCES 2019 The Monterey County Business Council 2019 Participants are: Berta R. Torres is excited to be partnering with Salinas HR Manager, Mont. Valley Chamber of Commerce in kicking Regional Waste Mgmt. Dist. Beth Welch off the 2019 Leadership Monterey Vice President, Schipper Design County program on February 22, 2019. Twenty-four participants will have an opportunity to learn of the critical businesses and organizations that create a thriving economy here in Monterey County. The 10-month program is designed to educate local leaders from different industries and to bring awareness and advocacy to all the significant economic impacts within the county.
Brian Razzari Product Manager, Markon Inc. Brian Spector President/CEO, Spector Corbett Architects Connor Groth Sales Coordinator, Driscoll’s Berries Daniel Hollingsworth Attorney, Hollingsworth Law Firm Etna Montsalve-Campos HOA Management Greg Williams General Superintendent, Cal Water Service Guy Petraborg Director of Engineering & Compliance, Mont. Regional Waste Mgmt. Dist. Jamie Miller Human Trafficking Prevention Specialist Kathy Miller Public Affairs Coordinator, Aera Energy
in addition to 34 US states and 24 countries. To pay for these hobbies, I sell Real Estate. I am an active Realtor with Alain Pinel Realtors in Carmel and work in Salinas and along the coast. I was voted Rookie Realtor of the year in 2017 and one of the best New Realtors in Monterey County by the Monterey Herald in 2018. I currently live in South Salinas and love the area I call home. I can walk to Star Market, be in Ft Ord in 5 minutes, or ride my bike to Oldtown on a regular basis. That is why I joined the Salinas Valley Chamber as an Ambassador. I want to promote Salinas for all the good things it does and has to offer. We are a city of hard-working folks. I like to bridge the “lettuce curtain” and show people the great things Salinas can offer as a place to LIVE and WORK. I am particularly excited about the new train-station on Market Street, and several mixed-use buildings that are either being discussed or in the planning stages (like the Rabobank building or the Dick Bruhn building). ■
Keesha Hall HR Manager, Indus Mackenzie Little Philanthropic Services Associate, Community Foundation for Monterey County Martha Carvey Administrative Secretary, Salinas Police Department Matt Sundt Community Development Director, City of Gonzalez Matt Willis Manager of Energy Business Development, Monterey Bay Community Power Michael Davi Realtor, Davi Properties Mike Ward Director of Environmental Services, Community Hospital of the Monterey Peninsula Mindy Maschmeyer VP of Marketing & Communications, Monterey Bay Aquarium Norm Tuitavuki Deputy Chief Operating Officer, Monterey Salinas Transit
Paulina Mejia Ag. Inspector Biologist, Monterey County Ag Commissioner’s Office Roxanne Noble-Boss Membership Director, Salinas Valley Chamber of Commerce Ryan Sigala Marketing Coordinator, Mann Packing Shelby Gorman Administrative Assistant, City of Sand City
Class topics and dates are as follows: February 22, 2019 - Hospitality March 22, 2019 – Defense and Security April 26, 2019 - Education May 24, 2019 – Government and Law June 21, 2019 – Healthcare July 26, 2019 – South County August 23, 2019 – Non Profit Sector September 27, 2019 – Infrastructure and Environment October 25, 2019 – Art, History and Culture November 15, 2019 – Agriculture
Focus on Non-Profits
The Sports Car Racing Association of the Monterey Peninsula (SCRAMP) is a not-for-profit group created by civic-minded businessmen in 1957 in an effort to keep sports car racing in Monterey after safety concerns ended the former Pebble Beach Road Races, which ran from 1950 to 1956 and swelled to more than 50,000 spectators. SCRAMP built what is now known as WeatherTech Raceway Laguna Seca on land leased from Fort Ord. Presently, SCRAMP is the staff and volunteer
base at the Monterey County-owned facility. WeatherTech Raceway Laguna Seca hosts eight premier events in 2019 which include IndyCar, IMSA sports car racing, Superbike racing and the renowned Rolex Monterey Motorsports Reunion historic motorsports event that is a pillar of Monterey Classic Car Week. The track contributed $84.4 million in direct spending in Monterey County as a result of seven premier 2018 events. The study was commissioned by WeatherTech Raceway Laguna
Seca and conducted by California State University Monterey Bay and Fairleigh Dickinson University researchers. The County of Monterey-owned and operated facility attracted 263,888 visitors to the 2018 race events, with 79 percent of attendees visiting from outside Monterey County, according to the report. In addition to the motorsports events, WeatherTech Raceway Laguna Seca offers year-round camping, hospitality venues, monthly Twilight Cycling events, bimonthly Laguna Seca Cars & Coffee events and is the site of the annual Sea Otter Classic cycling festival. The 2019 Season Pass, at a $740 value, is available for $420 to fans outside of Monterey County with a special price of $350 for Monterey County residents. Tickets are available on www.WeatherTechRaceway. com or by calling 831-242-8200. ■
Non-Profit Calendar Mar. 7:
Quarterly Conversation for Nonprofits 8:30-10:00am 945 S. Main Street, Suite 208 Non-Profit: Community Foundation for Monterey County 831.375.9712 cfmco.org/workshops
Executive Director Networking Lunch 12:00-1:30pm 2354 Garden Road, Monterey Non-Profit: Community Foundation for Monterey County 831.375.9712 • cfmco.org/workshops
Early Bird Registration Deadline for Race for Open Space 5pm Marks Ranch Non-Profit: Big Sur Land Trust 831-625-5523 • BigSurLandTrust.org
Twilight Cycling 5-7pm 1022 Highway 68, Monterey Non-Profit: Sports Car Racing Association of the Monterey Peninsula 831-242-8202 WeatherTechRaceway.com
Intercontinental GT Challenge California 8 Hours 8am-5pm 1023 Highway 68, Monterey Non-Profit: Sports Car Racing Association of the Monterey Peninsula 831-242-8203 WeatherTechRaceway.com
Intercontinental GT Challenge California 8 Hours 8am-5:30pm 1024 Highway 68, Monterey Non-Profit: Sports Car Racing Association of the Monterey Peninsula 831-242-8204 WeatherTechRaceway.com
Online Registration Closes for Race for Open Space 12pm Marks Ranch Non-Profit: Big Sur Land Trust 831-625-5523 BigSurLandTrust.org
The Phantom Tollbooth 7pm 320 Main Street Non-Profit: ARIEL Theatrical 831-775-0976 ArielTheatrical.org
Race for Open Space 2.5K, 5K, and 10K Trail Run/Walk 6am-11am 497 Monterey Salinas Hwy (117th Drive) Non-Profit: Big Sur Land Trust 831-625-5523 BigSurLandTrust.org
The Phantom Tollbooth 2pm & 7pm 320 Main Street Non-Profit: ARIEL Theatrical 831-775-0976 ArielTheatrical.org
Give Back To Your Community! www.SalinasChamber.com
Users May Profit From Online Data
by Don Thompson, The Associated Press California Gov. Gavin Newsom has set off a flurry of speculation after he said the state's consumers should get a piece of the billions of dollars that technology companies make by capitalizing on personal data they collect. The new governor has asked aides to develop a proposal for a "data dividend" for California residents but provided no hints about whether he might be suggesting a tax on tech companies, an individual refund to their customers or something else. "Companies that make billions of dollars collecting, curating and monetizing our personal data have a duty to protect it," the Democrat said in his first State of the State speech Tuesday. "California's consumers should also be able to share in the wealth that is created from their data." Tech companies, for example, sell the data to outside businesses that target ads to users. The European Union and Spain's socialist government last year each proposed taxing big internet companies like Google, Facebook and Amazon. Common Sense Media, which helped pass California's nationleading digital privacy law last year, plans to propose legislation in coming weeks that would reflect Newsom's proposal, founder and CEO James Steyer said, without providing details.
Starting next year, California's European-style privacy law will require companies to tell customers upon request what personal data they have collected and why, which categories of third parties have received it, and allow consumers to delete their information and not sell it. U.S. Sen. Mark Warner of Virginia, ranking Democrat on the Senate Intelligence Committee, predicted in November that California would consider legislation that would "send a shiver down the spine" of tech companies. He described the proposal as returning 25 percent of the value of an individual's data. It wasn't clear how the calculation would be made. Axios calculated that the average Facebook user is worth $7.37 to the company, while a Twitter user is worth $2.83, and a Reddit user, about 30 cents. The calculation basically divided the companies' annual revenue by their monthly active users. Steyer promised "landmark legislation" that will change the way consumers view the value and privacy of their online information. Most consumers don't realize that companies "are taking your data at extremely detailed levels and selling it and monetizing it," he said. "You're basically saying, 'It's my data,'" Steyer said. "And if you do use it, I would like a portion of that because you're monetizing my personal information. That's a big deal, and that will represent an enormous step forward for consumers in California and all across the country." â&#x2013;
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New Shareholder Inspection Rights
by Patrick Casey Under California law, shareholders of a corporation have the right to inspect a variety of corporate records that may include the corporation’s financial statements, a list of all shareholders, accounting books and records, corporate minutes and bylaws. Shareholders may want to inspect these records in case they have a dispute with the corporation’s management or its operations, or they want to know what happened at a meeting of the shareholders, directors or any committee of the directors. A new law went into effect on January 1, 2019 that revised California Corporations Code section 1601 to both expand and clarify a shareholder’s inspection rights of a corporation’s accounting books, records and minutes of proceedings of the shareholders, board of directors and any committees of the board (the “corporate records”). Section 1601 gives shareholders inspection rights of corporate records of (i) any domestic corporation (which is a corporation formed under the laws of California) and (ii) any foreign corporation that either keeps any records in California or has its principal executive office in California (a “qualifying foreign corporation”). A foreign corporation is any corporation that has been formed either in any state other than California or in any other country. The first change specifies that a shareholder may inspect the corporate records of a qualifying foreign corporation at the corporation’s principal executive office in California or if the qualifying foreign corporation
has no principal executive office in California, then at the corporation’s registered agent for service of process in California. By specifying exactly where the shareholder may go to inspect these records, this new law prevents a qualifying foreign corporation from informing a shareholder that it has to go to multiple locations in the state in order to inspect the records. The second change provides shareholders with even greater latitude to inspect corporate records as a shareholder may now request that a domestic corporation or qualifying foreign corporation produce the corporate records by mail or electronically if the shareholder pays the reasonable costs to copy or convert the requested documents to electronic format. This allows the shareholder to avoid having to go to any location in order to inspect the corporate records. The law does not state how quickly the corporation must provide the corporate records, but the corporation could not unreasonably delay in providing the records. The third change states that these inspection rights apply to the corporate records of each subsidiary of any domestic corporation or qualifying foreign corporation. Therefore, even if a subsidiary is a foreign corporation that is not otherwise subject to Section 1601, that foreign corporation will become subject to Section 1601 if it is owned by any domestic corporation or qualifying foreign corporation. This new law makes it much easier for a shareholder to inspect the corporate records, which may be incredibly important depending upon the facts and circumstances. ■
SVMH Foundation Welcomes Major Donations In February, Salinas Valley Memorial Foundation announced several major donations, showcasing the many ways that its donors continue a long tradition of caring for their community. “Today, we are more than just a hospital. We are a comprehensive healthcare system that doesn’t just serve Salinas, but all of Monterey County,” said Pete Delgado, President/CEO of Salinas Valley Memorial Healthcare System. “Donors to SVMH Foundation have helped us acquire state-of-the-art technology, implement outreach programs in the community, improve our cancer center and help children throughout Monterey County.” SVMH Foundation announced several major donations: • $250,000 from Nancy Ausonio towards the purchase of state-of-the-art imaging technology for the Nancy Ausonio Mammography Center that will help doctors better diagnose and treat breast cancer; • $300,000 from the Sally Hughes Church Foundation for a mobile health clinic to bring healthcare services directly to communities where transportation and time away from work are significant barriers; • $994,503.36 from the SVMH Children’s Miracle Network Hospitals Program, which will assist vital departments and services that care for local children; • $50,000 from Michael McMillan, William Hines and CypressHealthcare Partners to the Children’s Miracle Network Medical Needs Fund; and, • $10,000 from the Lipe family to the UCSF Madison Clinic for Pediatric Diabetes at Salinas Valley Medical Clinic.
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This article is written by Patrick Casey, who is a business attorney with the JRG Attorneys At Law firm in Monterey. You may reach the author at (831) 269-7114 or at email@example.com.
Schedule an appointment today. Call 831.757.2058
March & April 2019 Mar
Ribbon Cutting-CCE Central Coast Entertainment 5:00 PM - 6:00 PM • 5 E Gabilan #213
Government Relations Committee (GRC) Meeting 11:30 AM - 1:00 PM • Chamber Office
Meet the Chamber Board:
Ribbon Cutting- Monarch Orthodontics 4:00 PM -7:00 PM • 275 W Laurel Dr, Ste D
Ribbon Cutting- Downtown Book & Sound 5:00 PM - 7:00 PM • 213 Main Street
Lunch and LearnTips to Perfect Your Negotiating Skills
CA International Airshow Joint Mixer
11:30 AM - 1:00 PM • Chamber Office 5:00 PM - 7:00 PM • 30 Mortensen Ave
Ambassador Committee Meeting 12:00 PM - 1:00 PM • Chamber Office
Connect at LunchSalt Wood Kitchen and Oysterette
Government Relations Committee (GRC) Meeting
12:00 PM - 1:00 PM • 3295 Dunes Drive, Marina
Join us for a delicious lunch and experience
11:30 AM - 1:00 PM • Chamber Office
3295 Dunes une e Drive es Drive, Marina D 12 12 2-1 1 pm Wednesday April 3rd Wednesday,
RSVP is Required Required Re u (831) 58 85 8 5-1286 5 1286
Meet the Chamber Board:
It means unrIvaled commItment to calIfornIans. Proud to support the Salinas Valley Chamber of Commerce It means Ready to Help RabobankAmerica.com/ReadyToHelp
Food & Agriculture