June 2018 | Volume IX | Legislative Advocacy
The Results Are In: Primary Election 2018
California's 2018 Primary Election was held on Tuesday, June 5th. The California Primary system is based on a top-two primary, meaning the top two candidates, regardless of party affiliation, will be on the General Election ballot in November. Below are the results from the Primary:

Governor:
John H. Cox (R) - 33.36%
Gavin Newsom (D) - 26.68%

Lt. Governor:
Eleni Kounalakis (D) - 21.5%
Ed Hernandez (D) - 21.13%

Secretary of State:
Alex Padilla (D) - 45.33%
Mark P. Meuser - 37.20%

United States Senator:
Dianne Feinstein (D) - 41.6%
James P. Bradley (R) - 11.49%

25th Congressional District:
Steve Knight (R) - 54.55%
Katie Hill (D) - 20.96%

26th Congressional District:
Julia Brownley (D) - 52.94%
Antonio Sabato, Jr. (R) - 23.01%

Member of the Assembly - 38th District:
Dante Acosta (R) - 57.09%
Christy Smith (D) - 42.73%

State Superintendent of Public Instruction:
Marshall Tuck - 41.33%
Tony K. Thurmond - 30.26%
Ventura County Supervisor - 4th District
Bob Huber - 53.69%
Bernardo M. Perez - 28.78%
*Please note, if one candidate receives more than 50% of the votes, that candidate wins the office for Ventura County Supervisor and will not be on the ballot in the November election.

Proposition 68:
Yes - 51.90%
No - 48.10%

Proposition 69:
Yes - 78.93%
No - 21.07%

Proposition 70:
Yes - 38.19%
No - 61.81%

Proposition 71:
Yes - 76.39%
No - 61.81%

Proposition 72:
Yes - 84.97%
No - 15.03%

For full results, click here.
California Supreme Court Decision Reclassifies Independent Contractor Defintion
On April 30, 2018, the California Supreme Court set new rules for determining whether an individual can be classified as an independent contractor, rather than an employee.

Under this new decision, an individual must meet the three following criteria to be classified as an independent contractor:

  • The worker must be free from the control and direction of the hirer
  • The worker must perform work that is outside of the usual course of the hiring entity's business
  • The worker must be customarily engaged in an independently established trade, occupation or business of the same nature as the work performed
In the past, the basic test to determine "independent contractor" status was based upon the amount of control that company has over the schedule and working conditions of the worker.

This will have severe impact on many small businesses who use independent contractors, specifically in the popular ride-share apps, Lyft and Uber, whose drivers are independently contracted, set their own hours, and largely are independent from the larger corporation.

If your company makes use of independent contractors, it might be wise to consult a labor attorney to verify that the individual can be classified as an independent contractor, rather than an employee of the company. An individual might meet the accounting definition of an independent contractor, but not the labor law definition, therefore opening up a business to potential lawsuits for unpaid overtime, rest breaks, and other labor violations.

For more information on this new California Supreme Court decision, click here.
ACTION ALERT: SB 993 could increase
Business to Business Taxes
SB 993 (Hertzberg) would impose a new 3% business services tax on services purchased by businesses in California. This proposed business tax would be offset by a 2% reduction in sales tax. Examples of business-to-business services include a business seeking and utilizing outside resources for legal representation, accounting services, janitorial services, and other services.

The Simi Valley Chamber opposes SB 993 for many reasons, including:
  • The Business Services Tax does not exist in the vast majority of other states, putting California businesses at a competitive disadvantage.
  • This proposed business tax, despite particular exemptions for qualifying businesses, would have a significant negative impact on smaller businesses. While larger businesses might have the ability to bring these services in house, many small businesses rely on contracting out for these services.
  • As a result of this proposed tax, the cost of doing business in California would increase, which would logically translate into higher prices of goods and services.

Given the foreseeable negative impact of this proposed Business Services Tax, the Simi Valley Chamber opposes SB 993.

Click here to see the letter the Simi Valley Chamber sent to our Senator urging him to oppose SB 993. If you'd like to send a letter to your Senator, download a sample letter here .
Tax Reform:
Business Impact Survey

Has your company or a company in your community taken actions in response to tax reform being signed into law? The United States Chamber of Commerce is seeking responses from local businesses on the impact of this tax reform. Please complete this short survey to provide feedback . Note, the information provided, with the excpetion of your name and email, may be used publicly.
Simi Valley Chamber Legislative Advocacy Forum

The Simi Valley Chamber Legislative Advocacy Forum (LAF) meets on the fourth Wednesday of each month to discuss current legislation and its impact on businesses. Staff from the state legislature, U.S. Congress, County of Ventura, and the City of Simi Valley attend these meetings.
 
Join us for the next meeting on Wednesday, April 25th at 8:00 AM in the Chamber.
Simi Valley Chamber of Commerce | 805-526-3900 | [email protected] | simichamber.org