Daily Business Report-May 30, 2019
Some bills will die publicly, after vocal debate. Others may go out with a whisper. (CALmatters photo)
Death Watch: the bill killer
is in the house
By CALmatters
Welcome to death watch. The legislative kind.
We’re tracking which bills California lawmakers are rejecting as the Legislature hits the half-way point for making new laws for this year. May 31 is the deadline for bills to pass the house in which they were introduced, a critical hurdle in the legislative process that will conclude in mid-September.
Some bills will die publicly, after vocal debate. Others may go out with a whisper, dying from simpy not being brought to a vote on the floor.
Of course, where there is a political will there is a way to do almost anything in the Capitol. It’s conceivable that some of the policies lawmakers are jettisoning now could be revived later this year, if they gain renewed political momentum. Others will be on hold until next year, when their authors can try again.
Tobacco industry breathes easy–no ban on flavored products
Never doubt the power of the tobacco lobby in California. A bill to ban the sale of flavored tobacco products statewide was pulled May 23 by its author, Sen Jerry Hill.
Flavored tobacco products, especially those used in electronic cigarettes, are responsible for an increase in tobacco use by middle and high schoolers. Health advocates say they can lead to the use of traditional cigarettes, and nicotine addiction.
Hill, a Democrat from San Mateo, said he withdrew the bill because of amendments that exempted hookah products and also any product patented before 2000, except menthol cigarettes. Those amendments led the American Cancer Society Cancer Action Network, the American Lung Association in California and the American Heart Association to withdraw their support.
“Exempting hookah products set a terrible precedent and undermine the foundation of the original legislation to protect youth, low income and minority communities from flavored tobacco,” the organizations wrote.
The tobacco industry—and particularly Juul Labs of San Francisco, the largest maker of e-cigarettes—waged a high-powered Capitol lobby effort and donated significantly to state lawmakers. The industry, which insists it does not target young people, already killed a similar idea in the Assembly. Negotiations may lead to a compromise, but presumably only if it’s something the industry prefers.
Click here to see what else is being snuffed out in the California Capitol.
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Assembly passes bill outlawing independent
contractor status in most industries
Times of San Diego
The state Assembly took aim at the growing gig economy in California by passing a bill Wednesday that outlaws the use of independent contractors in most industries.
Assembly Bill 5, authored by Assemblymember Lorena Gonzalez of San Diego, would codify into law a state Surpreme Court decision last last year that defined independent contracting status.
California works ranging from Lyft and Uber drivers to software developers and freelance writers would be required under the bill to become employees of any company they do work for.
“Big businesses shouldn’t be able to pass their costs onto taxpayers while depriving workers of the labor law protections they are rightfully entitled to. Thank you to my Assembly colleagues for the bipartisan support today,” said Gonzalez in a tweet.
The bill specifies that an independent contractor can only perform “work that is outside the usual course of the hiring entity’s business.” Otherwise, the contractor must become an employee.
Lobbyists for various affected industries have been able to carve out exceptions in the text of the bill. Those include insurance agents, some health care professionals, stock brokers, real estate agents and hairstylists.
Lyft and Uber have been particularly vocal in opposition to the measure. “Lyft strongly opposes AB 5, which would force ridesharing drivers into shift work, eliminating the control drivers currently have over their own schedules,” the company said in a statement after the vote.
California labor unions were major supporters of the bill and cheered the vote. “We applaud the the California Assembly for standing with workers by passing AB 5. We can’t continue to devalue the California Dream by allowing greedy employers misclassify and shortchange workers,” said SEIU California on Twitter.
The measure must still be passed by the state Senate and signed by the governor to become law.
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MGI’s U.S. subsidiary files patent
infringement suit against Illumina
GenomeWeb
Complete Genomics, the U.S. subsidiary of Chinese sequencing tech firm MGI, has filed a lawsuit against Illumina alleging patent infringement of its sequencing technology.
The complaint, filed in the U.S. District Court of the State of Delaware, alleges that Illumina’s two-channel sequencing systems, which include the NovaSeq 6000, NextSeq, and MiniSeq platforms, as well as associated library preparation and reagent kits, infringe Complete Genomics’ US Patent No. 9,222,132, titled “Methods and Compositions for Efficient Base Calling in Sequencing Reactions.”
The patent, which lists MGI CSO Rade Drmanac as inventor, was issued in 2015 and covers two-color sequencing technology. According to MGI, it is key to the firm’s DNBSeq technology.
Complete Genomics claims that Illumina’s infringement is willful and is asking the court for a jury trial, a declaration that Illumina infringes the ‘132 patent, an injunction to prevent further infringement, and triple damages, among other things.
“When necessary, we will protect our intellectual property rights worldwide,” said Wei Wei, VP and general counsel of BGI Group, the parent company of MGI, in a statement. “The current lawsuit demonstrates the serious attitude and firm confidence of MGI in protecting its intellectual property rights.”
Illumina said in a statement that “BGI’s claims of patent infringement are meritless, and we fully expect to succeed in the litigation.”
MGI’s action follows two recent patent infringement lawsuits by Illumina against MGI. Earlier this month, Illumina filed a suit against BGI Europe in Denmark, claiming that several BGI and MGI sequencing platforms infringe one of its European sequencing patents and violate a trademark it holds. In March, Illumina sued Latvia MGI Tech in a German court for alleged infringement of another European sequencing patent.
MGI said earlier this year that it plans to start selling sequencing equipment in Europe and North America. The company, which was spun off from BGI in 2016, holds more than 580 patents worldwide and has more than 900 employees, more than half of them in R&D. MGI includes Complete Genomics in the US, Shenzhen MGI Tech, and other operations in 16 countries and regions.
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San Diego law firm launches student
loan assistance program for its lawyers
Tyson & Mendes LLP says it will become one of the first medium-sized law firms to launch a student loan repayment program. The firm hopes to ease that burden for its attorneys through the launch of a new student loan assistance program in partnership with Gradifi.
The new initiative will help lawyers at the firm cut years off their payment of student loans while saving thousands of dollars – providing a unique, tangible benefit for attorneys who, in some cases, took out more than $100,000 in loans for law school alone.
Tyson & Mendes, a civil defense firm headquartered in San Diego, is also starting a program in which it will contribute to the future educational costs of its attorneys’ children.
According to Managing Partner Robert Tyson, the firm plans to contribute $10,000 over five years of gradually increasing monthly payments toward the student loans of eligible attorneys, or the same amount toward 529 college savings plans for their loved ones.The firm is working with Gradifi, which helps employers provide innovative financial benefits and ensure a seamless process of direct employer payments to student loan servicers or to a College SaveUp plan.
Participants in the Student Loan PayDown Plan could potentially cut years off of their payment period and save thousands as a result of the firm’s monthly contributions.
“This effort is fueled in part by our rapid growth and desire to retain top talent. The firm appreciates the commitment those who enter the legal profession undertake, and we strive to give back in any way we can,” said Tyson. “We hope this will alleviate much of the financial stress young attorneys face after graduating law school, and we are proud to be the first firm of our size to offer this benefit.”
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San Diego Promise fundraising hits milestone
Recent pledge puts total at $1.02 million
The San Diego Promise free community college program has exceeded the $1 million mark in contributions, a milestone the San Diego Community College District hopes will fuel further donations to assist students at San Diego City, Mesa, and Miramar colleges.
A recent pledge of $45,600 from the San Diego County Citizens’ Scholarship Foundation brings total fundraising since the program began to $1,027,290.
More than 230 individuals, corporations, and nonprofit organizations have made gifts to the San Diego Promise, with contributions ranging from a $1-per-month employee payroll deduction to a matching gift of $200,000 from San Diego Padres co-owner and Executive Chairman Ron Fowler. In addition, a September 20, 2018, fundraising gala headlined by four-time Oscar-nominated actress Annette Bening raised more than $200,000 to support the program.
“We are grateful to everyone who has contributed to the San Diego Promise. Reaching this major milestone in the District’s fundraising effort is an important step in establishing a sustainable, long-term funding model for supporting our students in reaching their educational and career goals,” said SDCCD Chancellor Constance M. Carroll. “The San Diego Promise is clearly benefitting our students, and donors are being motivated by the students’ success.”
The San Diego Promise is a life-changing program that provides two years of education at San Diego City, Mesa, and Miramar colleges for first-time, full-time students, without tuition. Many of the program’s students with the most need also receive textbook grants.
In addition to financial support, the San Diego Promise provides counseling, peer mentors, and other support services to help students reach their educational goals. Recent studies show students in the program fare better academically than their non-Promise counterparts. For example, 48 percent of San Diego Promise freshmen earned a 3.0 or higher GPA last year, compared to 43 percent of their non-Promise peers, and 62 percent of Promise students completed 12 or more credit units, compared to 56 percent of their non-Promise peers.
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North San Diego Business Chamber
elects 6 new officers for 2019/2020
The board of directors of the North San Diego Business Chamber has elected six new officers who will begin their board term on July 1. Each term is
three years. Denise Visconti, current board chair, will continue a second term leading the 2019-2020 board of directors. Visconti serves as managing shareholder of the San Diego office of Littler Mendelson.
New directors for the 2019-2020 term:
- . Michiko Araki, vice president, new business/corporate marketing, Sony
- . Jill Farwell, director, executive development, Rady School of Management, UCSD
- . David Hallisey, vice president, corporate communications, Petco
- . Barbara Kennedy, president/CEO North County Health Services
- . Mike Teresso, president, Baker Electric Home Energy
- . Peter Zien, owner/CEO, Ale Smith Brewery
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Oceanside sees marked increase in
visitors, travel spending, employment
Tourism continues to be on an upward trend in Oceanside. According to a 2018 study by Dean Runyan Associates, Oceanside has seen a consistent increase in visitors, travel spending and travel industry employment over the last eight years with 2018 reaching record highs. Recent statistics from the study were shared at Visit Oceanside’s ninth annual Tourism Summit held at the city’s historic Brooks Theater.
“It’s an exciting time for our industry as well as our community because the increases in visitor spending and tax revenues also help support infrastructure improvements, beautification and important amenities that our local residents enjoy,” said Leslee Gaul, CEO of Visit Oceanside.
Visitor spending in Oceanside in 2018 was $382 million, representing a 6 percent increase from 2017. The visitor spending directly supported more than 3,500 jobs in Oceanside with tourism industry employment increasing at an average annual rate of 3.9 percent since 2010.
Visitor spending on lodging in 2018 totaled $276 million, nearly double the amount from 2010 and a 5 percent increase from 2017. This generated a record high in Transient Occupancy Tax (TOT) that exceeded $7.9 million. The city of Oceanside uses TOT funds to support essential city services including parks, recreation and public safety. The study also noted that the largest portion of visitor dollars are spent on food service, which continues to align with the popularity of the city’s burgeoning dining scene in recent years.
While continued growth remains a top priority in coming years, Visit Oceanside is shifting its focus to put an increased emphasis on responsible growth in the coming year. This sustainable tourism approach will drive a variety of initiatives from growing demand midweek and during shoulder seasons, to supporting the diversification of product offerings, especially in areas of the city that don’t traditionally attract a large tourism audience. Expanding support for community programs such as environmental and preservation programs and youth scholarships are other ways Visit Oceanside will share what it calls a “tourism cares” approach to destination marketing.
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BNBuilders and development team
complete renovations at Petco Park
BNBuilders recently completed the Compass Premier Club and VIP Patio Suite renovation at Petco Park. Designed by Carrier Johnson + Culture, the $2 million renovations were completed during the off season to be ready for Opening Day on March 26. BNBuilders also built the San Diego Padres Hall of Fame in 2017, a ballpark feature which has quickly become a favorite for local and visiting fans.
The Compass Premier Club renovations included demolition and reconstruction of the 7,500-square-foot space with upgrades to the arrival vestibule, bar area including wood and tile, and 36 new VIP loge seats. Now complete, the Club features an open floorplan with expansive views of the park. Emphasizing the Padres’ strong regional connections, the Club was complemented by locally-resourced custom materials, adding unique character to the space.
Manuela Bravo-Smith, Sr. Associate with Carrier Johnson + Culture states, “The design concept was developed in close collaboration with the Padres team to provide their members a space that embraces the love for the sport in a relaxed yet classic environment. We were delighted to work with many behind-the-scenes members of the very dynamic and complex Padres organization, who all contributed to bringing this project to life.”
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Sam Adams and Accion host Brewing
the American Dream Speed Coaching event
Samuel Adams and Accion are bringing back the annual Brewing the American Dream Speed Coaching event on Thursday, June 6, from 6 to 8:30 p.m. at the SDG&E Energy Innovation Center (EIC) in Clairemont Mesa. This is a free event open to any small business owners in the food, beverage and craft brewing industries.
Speed Coaching offers attendees the opportunity to participate in up to four 25-minute, high-impact coaching sessions in areas such as sales and distribution, packaging and finance with expert coaches from Samuel Adams, local area businesses, and Accion. Entrepreneurs are encouraged to bring questions about specific business challenges they face, as well as samples of packaging, point-of-sale items, and other material on which they would like feedback.
Sam Adams has supported Accion in providing more than 100 loans to San Diego-area entrepreneurs, totaling more than $2.4 million. The businesses supported by these loans have created or retained approximately 260 jobs in the community. In the past five years, Brewing the American Dream has connected with over 900 San Diego-area entrepreneurs through annual Speed Coaching events, more than any other single market hosting the event annually.
One Accion-funded business owner Darrel Brown of Savagewood Brewing attended the event in 2017 while he was considering starting his own brewery.
“I brewed my way into the American dream of business ownership,” stated Brown. “In addition to learning more about Accion’s partnership with Sam Adams, I was able to get connected to other local business experts and resources I needed to start my business.”
Attendees can register for the event at https://sandiegospeedcoaching.eventbrite.com. Free dinner, parking and Sam Adams beer are included. The SDG&E EIC address is 4760 Clairemont Mesa Blvd, San Diego, 92117.
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Dempsey Construction completes industrial
building in Frontera Business Park
Dempsey Construction has completed the ground up construction of a new 174,200-square-foot building, which is part of the larger seven-building, 517,207-square-foot Frontera Business Park at 2695 Customhouse Court in Otay Mesa. Dempsey Construction Project Manager Drew Wall said the new concrete tilt-up building features three main storefront entries with spandrel glass and pop-out elevations. The large size of the building’s tilt-up panels required a 300-foot crawler to complete the construction. The Dempsey team completed several large-scale concrete pours of up to 1,200 yards. The completed building is 830-feet long and 230-feet wide, featuring 43 dock high truck doors, a 36-foot clear height, and six grade level truck doors. The building is situated on 9.23 acres.
“It’s great to see our hard work come to fruition at Frontera,” said Wall. “One of the logistical hurdles we faced during this project was that the scope of work extended into the neighboring building’s truck drive. Coordination, communication and creativity were absolutely paramount to keeping both operations fully operational. The end result was a successful project delivered on-schedule and on-budget.”
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PSAR’s Realtor Games June 21
will raise money for charity
The Pacific Southwest Association of Realtors (PSAR), a real estate trade group for San Diego-area realtors, will host its third annual Realtor Games from 1 to 4 p.m., Friday, June 21, at Scobee Park, 2390 Boswell Road, in Chula Vista’s EastLake community.
The Realtor Games, organized by the PSAR Charity Committee, will feature 16 teams competing in mental and physical challenges. Proceeds will benefit three local charities, including Meals on Wheels San Diego County, South Bay Community Services and Unity 4 Orphans.
The competition will include agility contests (sack race, free-throw contest, balloon catch and cornhole) and mental challenges (spelling bee, board puzzle and “Realtor Feud,” a game resembling TV’s “Family Feud”).
Spectators are welcomed to attend and cheer for their favorite team. Food trucks will be on site. For more event information, call PSAR at (619) 421-7811, or visit www.psar.org. In 2018, approximately 200 attendees helped generate $8,600 in donations to charities.
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Jackson Design and Remodeling
honored with 3 Chrysalis Awards
San Diego-based Jackson Design and Remodeling (JDR) announced it has become just the fifth company in the history of the Chrysalis Awards to receive a prestigious “Decade of Excellence” award since Chrysalis became a national competition in 2000. JDR was also recognized with a national and a regional Chrysalis Award, which are judged by the editors of major national lifestyle publications such as Better Homes & Gardens, Southern Living, Woman’s Day and Sunset Magazine.
JDR took home a national Chrysalis Award in the category of “Whole House Remodel $300k – $700k” for a striking Encinitas home with a clean, modern design and bold architecture which seems to reach toward the ocean from every angle. To view a photo gallery of this innovative whole home remodel, click here.
The company was honored with a regional award in the “Historic Renovation” category for breathing new life and original style into a registered historical home in Kensington, built in the 1920s in an “Eclectic Mediterranean” style inspired by Old Hollywood. To view photos of this colorful historic home, click here.
JDR received the “Decade of Excellence” award this year and is only the fifth company in the entire nation to win this award. The coveted honor is given to companies that have shown continued excellence in construction and design, as well as excellence that has been tested over time. It is only presented once to residential remodeling companies who have won a Chrysalis Award in 10 separate years since Chrysalis became a national competition in 2000.
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Sweetwater Authority wins statewide award
for Securing Our Water Future campaign
The Sweetwater Authority Governing Board was presented with the California Association of Public Information Officials (CAPIO) EPIC Award for excellence in public information and communications. The Authority received the award earlier this month at the CAPIO annual conference for its strategic and comprehensive outreach campaign surrounding the 2018 five-year rate study titled “Securing Our Water Future”.
Upholding the Authority’s commitment to transparency and exceptional customer service, the Board directed the efforts to engage customers and stakeholders in the 2018 five-year water rate study process. The robust effort included numerous community presentations, two public open houses, and substantial outreach, in both English and Spanish, through direct mail, social media, PSAs, ads, and more.
Through these efforts, customers and stakeholders were able to learn about the rate study process and how water rates are used to invest in infrastructure that secures water reliability for customers both now and in the future.
The award-winning communications campaign was executed by the Authority’s communications team, with assistance from two consulting firms: Raftelis, which provided strategic communications consulting surrounding the rate study, and SVPR Communications, which provided stakeholder outreach, media, ad placement, and community engagement services.
More Honors
The Certificate of Achievement for Excellence in Financial Reporting has been awarded to Sweetwater Authority by the Government Finance Officers Association of the United States and Canada (GFOA) for its comprehensive annual financial report. The Certificate of Achievement is the highest form of recognition in the area of governmental and financial reporting, and its attainment represents a significant accomplishment by a government agency and its management. This is the Authority’s second time receiving this prestigious honor.
“Obtaining this prestigious award from GFOA for the second time solidifies the Governing Board’s commitment to transparency and fiscal responsibility for our rate payers,” said Steve Castaneda, board chair.
