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Governor signs bill eliminating unfair tax advantage online retailers had over California businesses
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- Written by: Elizabeth Larson
Sen. Mike McGuire, Chair of the Senate Committee on Governance and Finance, Assemblywoman Autumn Burke, Chair of the Assembly Committee on Revenue and Taxation and California Treasurer Fiona Ma partnered on AB 147 – which implements the United States Supreme Court decision in South Dakota v. Wayfair Inc.
This decision authorizes states to begin collecting sales and use tax from online and out-of-state retailers without a physical presence in California.
AB 147 allows California to correct the competitive advantage out-of-state businesses, who did not collect tax, had over California retailers, who did. This inequity can give a big edge to online retailers over small businesses – in many cases the competitive advantage is between 7 and 10 percent.
“The enactment of AB 147 will bring in significant revenues from out-of-state retailers to fund essential state and local services. This represents a major step forward for both California and its tax system. AB 147 will level the playing field between California retailers and their out-of-state competitors. It also reduces administrative burdens for small online retailers, so they can spend time and resources to focus on their business and not tax compliance,” said Assemblywoman Autumn R. Burke (D-Inglewood).
“This critical legislation removes the competitive advantage online and out-of-state businesses, who did not collect sales tax, had over brick and mortar California retailers, who have always collected taxes,” Senator Mike McGuire said. “Local mom and pop businesses across California have been clamoring for relief for years and this legislation levels the playing field and not only implements Wayfair effectively, but also fairly. We are grateful for Governor Newsom’s support and our partnership with Chairwoman Burke and Treasurer Ma on this important legislation.”
“This is a long time coming! I've been working on comprehensive sales tax reform since 2007 with the National Conference of State Legislatures. I’m glad we now have clarity and uniformity regarding online sellers through the Wayfair case. This new law will close this major loophole by mandating that all online retailers collect and remit all the state AND local sales taxes due and level the playing field between our brick and mortar businesses in our state,” said State Treasurer Fiona Ma, CPA.
The Wayfair decision made by the US Supreme Court on June 21, 2018, allows California and all other states to require out-of-state retailers to collect and remit taxes when selling property to this state’s residents. Thirty three states have already implemented the Wayfair decision, with every other state with a sales tax expected to follow.
AB 147 will take effect immediately. The requirement for online marketplaces to collect taxes on all of their sales in California will commence Oct. 1.
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- Written by: Elizabeth Larson
The settlement resolves claims that the company concealed the high risk of mortgage-backed securities sold to the California Public Employees’ Retirement System, or CalPERS, and the California State Teachers Retirement System, or CalSTRS, from 2003 to 2007.
In the settlement, Morgan Stanley denied all of the action’s allegations, as well as all claims of wrongdoing, damages and liability.
Becerra said Morgan Stanley’s actions resulted in millions in losses to CalPERS and CalSTRS.
“Morgan Stanley lied about the risk of its products and put profits over teachers and public employees who relied on its advice,” said Attorney General Becerra. “Today’s settlement holds Morgan Stanley accountable for misleading Californians who were unfairly blindsided. Our office has recovered over $1 billion from cheaters on Wall Street since the financial crisis. Our work isn’t over.”
Mortgage-backed securities are complex investments that bundle together thousands of mortgage loans of potentially varying quality, where the investor typically relies on assurances that the loans have been carefully screened for risk.
An investigation and subsequent multi-year litigation by the Attorney General's Office found that the descriptions of these mortgage-backed securities to investors failed to accurately disclose the true characteristics of many of the underlying mortgages, and that due diligence to remove poor quality loans from the investments was not adequately performed.
Becerra alleged that Morgan Stanley was aware of the misrepresentations but failed to correct them.
The settlement resolves allegations that Morgan Stanley violated California’s False Claims Act, the Corporate Security Law, and the False Advertising Law. Morgan Stanley will pay $150 million.
Of those settlement proceeds, CalPERS will recover $122 million in damages and CalSTRS will recover $8 million.
The remaining $20 million of the settlement funds will go to the Office of the Attorney General to recover the costs of this investigation and lawsuit, and to help with future investigations and prosecutions of false claims to the state.
The settlement with Morgan Stanley is the latest action by the California Department of Justice to recover losses suffered during the financial crisis and to hold accountable the institutions that contributed to it.
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- Written by: State Treasurer’s Office
The coalition, called Trustees United, is demanding that fiduciaries who invest the public’s money do a better job of monitoring and reducing incidents of sexual harassment, assault, and misconduct.
They are asking investors to adopt four principles, including following California’s lead by eliminating non-disclosure agreements in claims of sexual assault, harassment or discrimination based on sex.
"These principles are needed because we have learned from courageous workers and the #Metoo movement that sexual harassment, sexual assault and misconduct are still a persistent and painful reality for far too many employees," said Treasurer Fiona Ma. "A company that fails to prevent unacceptable behavior can face dire consequences. As consumers lose confidence in its reputation, it may lose sales, see its stock price decline, and experience poor morale, and more rapid employee turnover."
A single incident can jeopardize a company’s ability to create and sustain value. Here are some examples:
– Allegations that former Uber Chief Executive Officer Travis Kalanick tolerated a toxic work environment harmed his company’s reputation, slowed its growth, and helped its ride-hailing rival, Lyft, record dramatic growth, according to eMarketer, a research firm.
– At Google, revelations that the company mishandled serious allegations of sexual misconduct against top executives sparked a one-day walkout.
– When allegations of sexual misconduct against former Wynn Casinos Chairman Steve Wynn became public the company’s stock price plummeted. Similarly, numerous allegations of sexual assault against Harvey Weinstein led to his firm’s bankruptcy.
Institutional investors have an obligation to seek long-term value from the companies they own so they can maximize and maintain returns for their constituencies, the group says.
"As fiduciaries we must insist that companies create safe work environments and cultures that allow their employees to be productive, their companies to thrive and our portfolios to grow," said Ma. "We know that safe business is our business."
A survey by FTI Consulting and Mine the Gap last year found that nearly half of professional women would not buy a product or stock from a company with high profile allegations of misconduct or tolerance of misconduct against them. In addition, 55 percent of professional women would not seek a job at such companies.
Trustees United, which has just begun to organize, has been joined by pension trustees, institutional investors and asset managers across California and the nation, including from two largest pensions in the nation, the California Public Retirement System (CalPERS) and the California State Teachers Retirement System. (CalSTRS). Ma is a member of both boards.
"As trustees and investors, we cannot let the adverse impacts of sexual harassment and misconduct destroy opportunities to promote and enhance long-term value creation," said Theresa Taylor, Vice President of the CalPERS Board of Administration. "Our principles help guide investors to manage risk, ensure a safe corporate culture free of sexual harassment, and protect all employees. I commend Treasurer Ma for joining Trustees United and encourage other trustees around the world to stand with us."
Trustees United is calling on fellow trustees, institutional investors and asset managers to adopt the four following principles and ensure the companies they own follow them. They are:
– Supporting the rights of all employees, including temporary workers and subcontractors to safely bring forward claims of sexual harassment and assault, and publicly share that process.
– Eliminating non-disclosure agreements and forced arbitration that hide settlements and perpetuate a culture of secrecy.
– Seeking diversity in the boards of directors, management and the workforce to help companies thrive and become more aware of misconduct and discrimination.
– Pursuing policies, including collective bargaining agreements, which reduce the power imbalances that often facilitate abuse, harassment and discrimination.
CalSTRS Board President Dana Dillon said: "As a trustee from the world’s largest educator pension fund, I am focused on the opportunities to create long-term value that have been missed because of the damaging impact that sexual harassment, misconduct and violence in the workplace have on all levels of any corporation.
These principles are meant to act as a catalyst to stimulate productive conversations and ongoing engagement. It’s time for us to take a stand to promote safe workplaces for men and women alike. Working together, we can build and leverage solid relationships as we make progress toward reducing risks and promoting positive change in companies across our investment portfolios and beyond."
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- Written by: Elizabeth Larson
CLEARLAKE, Calif. – The People Services Clearlake Thrift Store will celebrate its new store front opening with a ribbon-cutting ceremony sponsored by the Clear Lake Chamber of Commerce on Tuesday, April 23.
The ceremony begins at 1 p.m. Refreshments will be served.
The thrift store’s new location at 5100 Old Highway 53 marks nine years of enabling workers with developmental disabilities meaningful paid employment.
People Services will celebrate with a ribbon cutting and great discounts on all items sold.
The new location across the street from Mendo Mill offers customers a fresh new look and ample parking for their shopping experience.
Hours of operation will be Monday through Friday, 10 a.m. to 4 p.m.
For more information please contact the thrift store staff at 707-350-5422 or Clearlake People Services at 707-994-1560.