Carlsbad Chamber of Commerce Government Affairs Committee February

By TR Robertson
The February Carlsbad Chamber of Commerce Government Affairs Committee meeting featured presentations by newly elected Carlsbad City Council Member Teresa Acosta and Venture Workforce CEO Jeremy McCarthy.

City Council Member Teresa Acosta outlined her three initial goals for her District 4 and the City of Carlsbad. She wants to make Environmental issues a major concern in looking at the impact of climate changes on our environment and the changes necessary to improve these changes. A second issue is Public Works in assisting with street safety in southern Carlsbad. This would include everything from the conditions of the streets to sidewalks to crosswalks to safe routes to schools for children. The third goal is to increase the support small businesses receive. COVID has had a severe impact on businesses throughout the United States. Communities across the nations are trying to decide the best ways to help these businesses as they attempt to try to remain open. Teresa said clarifying the roles and the links between City Hall and businesses is crucial. One concern, is helping people find who oversees assisting when problems arise. She wants to help establish what kind of place the citizens of Carlsbad want the city to become. When asked about some donations made to her campaign, Ms. Acosta wanted it to be known she is not beholden to anyone and everyone should be wary of what they hear on social media. When asked about her feelings concerning AB 5, she said we do need to protect workers, but maybe not as far as AB 5 has stated. The final question asked was whether she supported the district system for cities. Teresa stated that by dividing the cities into districts was a keyway for citizens to reach out and get a quick response on whatever their concern might be.

The next speaker was Jeremy McCarthy CEO of Venture Workforce and coffee.hr.
Mr. McCarthy spoke about the Independent Contractors California Update. Venture Workforce helps with payroll benefits among other things and coffee.hr assists small companies with getting compliance. His 20+ years of experience has led to a great understanding of independent contractors and how the system works. Independent contractors are not employees, no tax is withheld from salaries, no benefits are available, no W2’s are filed, and no workers compensation is filed. The last several years there has been a lot of changes in how to handle independent contractors and businesses. Before our current situation, the IRS had a 20-factor test on determining whether a person could work as an independent contractor. For California, a Borello Test with 13 factors was established. Today, the California Supreme Court has re-written the law concerning the Borello Test with the passing of AB 5. The ruling is retroactive. AB 5 makes it almost impossible for a person to qualify as an independent contractor. With the decision by the California Supreme Court in the Dynamex Case of 2018, an ABC Test is now used to determine an independent contractor. The ABC Test asks – Are the workers free from control, Is the work outside the hiring of entity’s business and Is worker engaged with same work. AB 5 codified the Supreme Court ruling establishing 12 occupational carve outs. AB 2257 established additional carve outs and clarified AB 5. The passage of Proposition 22 only applies to app-based drivers and delivery services. This is a new protection for these workers, all others are subject to AB 5 & AB 2257. Mr. McCarthy said the reality of this is that there will be very few independent contractors in the future. All others must be paid as employees, meaning they will need W2’s, workers comp, sick leave, unemployment insurance, mandatory harassment training, expense reimbursement and COVID disclosure requirements. If an employer ignores AB 5 and 2257, they could be subject to fines, penalties, employment taxes, workers comp penalties or labor commission penalties. Jeremy said the future of California centers around California not liking Independent Contractors and considering them a high risk. Solutions might mean employers may turn to sources outside of California, they might put these workers on their payrolls, they could hire employees through a temp agency or hire workers who operate through LCC. Pres. Biden and V.P. Harris support AB 5 and oppose Prop 22. For any questions on this topic, e- mail Jeremy@coffee.hr.

Legislative Reports
Kristal Jabara from Supervisor Jim Desmond’s Office – Vaccine rollouts are underway and are being administered thru health care providers, private pharmacies, and county facilities. Rural areas are being covered as best as possible. There is a greater demand than supply of the vaccine. Two doses of the vaccine are required. Partnership agencies are helping to reach out and help with sign-ups. Kristal.jabara@sdcounty.ca.gov

Aaron Byzak, Chief Government & External Affairs Officer for Tri-City Medical Center listed the 3-part vaccine plan Tri-City is involved with. 1) District Vaccine Clinic held twice weekly, 2) Vaccine Response Team – deployed at various community vaccine centers like the CSUSM Super Center, 3) Distribution Hub – freezer capabilities exist at Tri-City for vaccine storage. Go to www.tricitymed.org/covid-19-resources for more information.

Jason Haber from the City of Carlsbad – At the Jan. 26th City Council meeting a financial update on the city budget showed the General Fund is down 5%. The city gold course revenue is up 28%. City Council salary increases have been waved. Currently restaurants can have outdoor eating at 25% capacity. Monroe St. Pool renovations will cost $16 million and will be on the ballot for June 2022. The Ponto property is under a 6-month evaluation. Feb. 4th will be a Goal Setting Workshop for the Council and Feb. 26 will be an updating of the various city council districts.

Carlsbad Mayor Matt Hall – Mayor Hall pointed out the importance of Goal Setting and setting a vision for Carlsbad that extends 10-30 years out.

Matthew Phy from Senator Patricia Bates Office – A resolution is in the works for a Youth Sports Plan in support of the 3 million kids in California who are currently deprived of participating in their sports programs. Many of these children could possibly be suffering from mental health issues. Sponsoring SB 248 which sets an open court for sexually violent predators. Working on EDD issues. Matthew.Phy@sen.ca.gov

Alex Kiwan from Assembly Member Tasha Boener Horvath’s Office – sponsoring and working on several Assembly Bills – AB 50 – creating an office for climate change related challenges; AB 66 – establishing research on an early warning system for bluff collapse; AB 111 – allocating funds to move the railroad tracks along the coast in Encinitas and Solana Beach; AB 55 – assists employees working after the pandemic begins to slow down. A reminder that there are several scams and frauds popping up during the COVID crisis. Working on EDD issues. Alex.kiwan@asm.ca.gov

Kyle Krahel Frolander from the Office of Congressman Mike Levin – $1.5 million established for funding stabilization of the bluffs in Encinitas and Solana Beach. Supports the $1.9 Trillion National vaccination program and assisting schools to reopen and bring back the food and nutrition plan for students. $350 allocated for state and local governments to keep services open and working. Supports numerous climate legislation centering around renewable energy, increase of green spaces and saving natural resources. Kyle.krahel@mail.house.gov