Business News
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- Written by: Governor's Office
“With more than 40 years of experience in state government and the private sector, Rita Saenz is well-prepared to lead EDD at what is sure to be one of the most difficult moments in the Department’s history,” said Gov. Newsom. “Nationally, we are seeing a record number of unemployment claims as a result of the COVID-19 pandemic and with that, unprecedented abuse of unemployment systems and fraudulent claims. California has certainly not escaped this national crisis unscathed but with Rita at the helm, we stand ready to ensure payments to Californians who are in desperate need of financial support while simultaneously stopping fraud in our systems and holding people who have committed fraud accountable.”
Newsom added, “I am extremely grateful to Sharon Hilliard and congratulate her on her retirement after 37 years of service at EDD. Sharon is a dedicated public servant and we owe her our gratitude for leading the Department through the pandemic.”
Saenz, 71, of Sacramento, was a consultant at Saenz and Associates from 2016 to 2020. She held several positions at the Xerox Corp. from 2007 to 2016, including director of California Governmental Affairs and director of Communications. At Affiliated Computer Services she was Western Regional Director of Health and Human Services from 2007 to 2009.
She was chief executive officer at the Academy for Coaching Excellence from 2004 to 2007, director at the California Department of Social Services from 1998 to 2004 and chief executive officer at Maria Nemeth Associates LLC from 1983 to 1998.
Saenz served in several positions in the Office of Governor Edmund G. Brown Jr. from 1981 to 1983, including appointments secretary and special assistant to appointments. She was director of the California Department of Alcohol and Drug Abuse from 1978 to 1981.
This position requires Senate confirmation and the compensation is $204,864. Saenz is a Democrat.
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- Written by: Elizabeth Larson
This statewide opener ends delays in place due to meat quality in the northern management area, or NMA, and the potential for whale entanglement in the central management area, or CMA.
It also gives the fleet ample time for planning and gear preparation and promotes an orderly start to the fishery.
For the NMA Fishing Zones 1 and 2, the pre-soak period will begin Sunday, Dec. 20, at 8:01 a.m. and for the CMA, Fishing Zones 3, 4, 5 and 6, the pre-soak period will begin Tuesday, Dec. 22, at 6:01 a.m.
Available data indicates some whales remain in the fishing grounds but risk is declining and CDFW supports a balanced approach to managing risk and providing opportunity for the commercial fishery that is grounded in expert science.
Whale entanglement risk still exists, but it is low. Thus, the opening declaration is accompanied by an notice to the fleet to use best fishing practices and avoid areas where whales may be congregating including around the canyon edges of Monterey, and between the Farallon Islands and Point Reyes. Crabbers are encouraged to review the Best Practices Guide and remember to minimize knots and line scope when fishing.
Recent survey data indicate most whales have started their annual migration out of the fishing grounds. Based on these data, CDFW made a preliminary recommendation to open the fishery statewide on Wednesday, Dec. 16. The Whale Entanglement Working Group evaluated all available data and did not provide a consensus recommendation to open or delay. After the Working Group meeting, the majority of ports requested further delay of the opener.
“Our recommendation was to open this Wednesday,” said CDFW Director Charlton H. Bonham. “But after hearing from parts of the fleet expressing a variety of views, and review of additional scientific information provided by Working Group experts, we decided on an additional seven-day delay. This gives the fleet extra time to get ready and get their gear in the water, certainty in that we’re opening statewide, hopefully the chance to get part of the holiday market and an additional seven days for any remaining whales to migrate. We support any additional measures the fleet or specific ports wish to take to minimize entanglements and also understand the additional hardships resulting from the COVID-19 pandemic. CDFW staff, collaborators and partners have worked hard to collect data to inform a unified statewide opener.”
Since late October, CDFW in partnership with researchers, federal agencies and the fishing industry has conducted surveys from the Oregon state line to the Channel Islands to observe marine life concentrations. Based on recent aerial surveys and observation data, whales have begun to migrate out of California waters to their winter breeding grounds, which in turn reduces the risk of entanglement when the commercial fishery opens.
Through the course of the crab season, CDFW will engage regularly with the Working Group to review scientific information and advice efforts to minimize the risk of whale and sea turtle entanglements while maximizing fishing opportunity.
Based on that process, CDFW may take additional management actions in response to future risk assessments. For more information related to the risk assessment process or this delay, please visit CDFW’s Whale Safe Fisheries page.
For more information related to the risk assessment process or this delay, please visit CDFW’s Whale Safe Fisheries page or for more information on Dungeness crab, please visit www.wildlife.ca.gov/crab.
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- Written by: Elizabeth Larson
The temporary tax relief entails an automatic three-month income tax extension for taxpayers filing less than $1 million in sales tax, extends the availability of existing interest and penalty-free payment agreements to companies with up to $5 million in taxable sales and provides expanded interest free payment options for larger businesses particularly affected by significant restrictions on operations based on COVID-19 transmissions.
The total tax relief, if fully utilized, is estimated to have billions in impact.
The state would build on its ongoing support for businesses impacted by COVID-19 by providing immediate, temporary tax relief potentially worth billions and a new $500 million COVID Relief Grant program.
The governor also announced that the state would expand the California Rebuilding Fund by $12.5 million, bringing the total investment to $37.5 million. These efforts are informed by recommendations made by the Governor's Task Force on Business and Jobs Recovery.
“California’s small businesses embody the best of the California Dream and we can’t let this pandemic take that away,” said Gov. Newsom. “We have to lead with health to reopen our economy safely and sustainably while doing all we can to keep our small businesses afloat. With this financial assistance and tax relief, California is stepping up where the federal government isn’t. By providing potentially billions in immediate relief and support, our small businesses can weather the next month as we continue partnering with the Legislature to secure additional funding and investments in small businesses in the new year.”
Small businesses are drivers of economic growth – creating two-thirds of new jobs and employing nearly half of all private sector employees. California is home to 4.1 million small businesses, representing 99.8 percent of all businesses in the state and employing 7.2 million workers in California, or 48.5 percent of the state’s total workforce.
The COVID-19 pandemic has presented a significant challenge to small businesses, employers and employees. An August Small Business Majority survey data found that 44 percent of small businesses are at risk of shutting down.
Data released through the Census Current Population Survey found that minority-owned businesses are disproportionately impacted: the number of active businesses owned by African-Americans dropped by 41 percent, Latinx by 32 percent, Asians by 25 percent and immigrants by 36 percent.
“California’s small businesses continue to struggle as a result of COVID-19, and this latest round of action at the state level will help bridge the financial gaps that are vexing our state’s mom-and-pop business owners and nonprofits while we wait for congressional action, and as we prepare for additional legislative action at the start of the year,” said Senate President pro Tempore Toni G. Atkins (D-San Diego). “From widening access to grants, low-interest loans, and tax deferrals, to modifying fees incurred by restaurants and bars, these are critical supports for the small businesses and services that keep our communities going. Now, we need our federal partners to do their part and pass a federal stimulus so these businesses and nonprofits can survive 2020 and the year to come.”
“While we wait for Congress and the White House to approve an economic relief package that responds to the current surge, California has a chance to help nonprofits, small businesses, and communities now,” said Assembly Speaker Anthony Rendon (D-Lakewood). “I thank the governor and the Senate for their partnership.”
The announcements build on the state’s ongoing business support throughout the pandemic, including the Main Street Hiring Tax Credit, which authorizes $100 million in hiring tax credit for qualified small businesses. The credit is equal to $1,000 per qualified employee, up to $100,000 for each small business employer. The application opens Dec. 1.
A full list of existing state support for businesses can be found here.
Building on the state’s ongoing support throughout the pandemic, which can be found here, the governor announced the following immediate support and relief:
Tax relief for businesses impacted by COVID-19
In April 2020, the governor, through Executive Order, allowed taxpayers to apply for penalty and interest relief for 90 days for any taxpayer reporting less than $1 million in sales on their tax return. Through Nov. 22, some 9,287 plans with almost $149 million in tax relief have taken advantage of this program.
The governor will direct the California Department of Tax and Fee Administration to do the following:
– Provide an automatic three-month extension for taxpayers filing less than $1 million in sales tax on the return and extend the availability existing interest and penalty-free payment agreements to companies (with up to $5 million in taxable sales)
– Broaden opportunities for more businesses to enter into interest-free payment arrangements.
– Expand interest-free payment options for larger businesses particularly affected by significant restrictions on operations based on COVID-19 transmissions.
$500 million for new COVID relief grant for small business
The governor announced the creation of a $500 million COVID Relief Grant administered by the California Office of the Small Business Advocate, or CalOSBA, at the Governor’s Office of Business and Economic Development for small businesses that have been impacted by COVID and the health and safety restrictions.
Funds would be awarded to selected intermediaries with established networks of Community Development Financial Institutions to distribute relief through grants of up to $25,000 to underserved micro and small businesses throughout the state by early 2021. Nonprofits would also be eligible for these grants.
CalOSBA is establishing the program and will make it available to small businesses as soon as possible – for updates on availability visit here.
Increase funding for the California Rebuilding Fund by $12.5 million
Last week, the governor announced the opening of the California Rebuilding Fund which makes available $25 million to help impacted small businesses rebuild from the economic crisis and keep local economies strong. This program is built to be a resource in the market for the next year as businesses pivot and recover.
An increase of $12.5 million would allow the fund to be fully capitalized. The additional funding will help the third party administrator fundraise $125 million to make more low-interest loans to small businesses with less access to loans from traditional banking institutions.
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- Written by: Elizabeth Larson
The $54.0 million increase in net income was due to the company’s determination that the Oct. 14 proposed decision in the California 2018 General Rate Case, or GRC, was sufficient evidence to record regulatory assets and associated revenues for interim rate recovery as well as benefits balancing accounts and the decoupling mechanisms.
In the third quarter of 2020, the company recorded revenues of $37.6 million related to interim rate recovery regulatory assets, balancing account net revenue increases of $37.0 million, and customer refunds for 2017 excess deferred federal income taxes, or TCJA, of $7.1 million.
Included in the amounts above were third-quarter interim rate recovery regulatory assets of $18.9 million, balancing account net revenue increases of $11.5 million, and $3.0 million of 2017 TCJA refunds to customers.
These increases were partially offset by increases in depreciation and amortization of $2.4 million, employee wages costs of $2.2 million, income taxes of $1.6 million, bad debt expenses of $0.9 million, and outside service costs of $0.7 million.
Additionally, certain factors outside the company’s immediate control decreased net income $1.2 million, including a $2.6 million reduction in accrued unbilled revenue, partially offset by a $1.2 million increase in unrealized gain on certain benefit plan investments.
The proposed decision for Cal Water’s California GRC is subject to adoption by the California Public Utilities Commission, or CPUC, which can occur no earlier than the CPUC’s Nov. 19, 2020, meeting.
Both California Water Service Co. and the CPUC's Public Advocates Office have provided feedback on the proposed decision. If adopted as proposed, the decision would approve the settlement reached in October of 2019 by Cal Water and the CPUC’s Public Advocates Office, allow Cal Water to continue its decoupling balancing accounts through 2022, and allow Cal Water to retain its Pension Cost Balancing Account and Health Cost Balancing Account.
According to President and Chief Executive Officer Martin A. Kropelnicki, the Oct. 14 proposed decision helps enable the company to continue to provide safe and reliable water service to customers.
“I’m pleased with the Oct. 14, 2020, proposed decision for our California GRC. It fully supports our goal of providing customers with the highest quality water service and reflects the Commission’s support of our operations during the challenging COVID-19 pandemic health crisis,” he said.
“I’m also pleased with the solid progress we’ve made on our 2020 infrastructure improvement investment program, making improvements totaling $221.3 million during the first nine months of 2020, despite the continuing pandemic. A top priority for the remainder of the year is to continue doing everything we can to keep our employees healthy and take care of our customers during this unprecedented time,” he added.
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