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Business News

State Board of Food and Agriculture Oct. 2 meeting to include discussion with California Farm Bureau, Western Growers

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Written by: Elizabeth Larson
Published: 30 September 2018
SACRAMENTO – The California State Board of Food and Agriculture will hear from agricultural stakeholders on key issues related to farming and ranching at its upcoming meeting on Tuesday, Oct. 2.

The meeting will be held from 10 a.m. to 2:30 p.m. at the California Department of Food and Agriculture, 1220 N St., Main Auditorium, Sacramento.

“As we approach the end of the year, it’s appropriate to hear from some key stakeholders on issues of importance to the state’s farming and ranching community,” said CDFA Secretary Karen Ross.

Invited speakers include: Tom Nassif, Western Growers; Jamie Johansson, California Farm Bureau Federation; and Jeanne Merrill, California Climate and Agriculture Network (CalCAN). The board will also hear from CDFA officials, including: Jenny Lester Moffitt, Undersecretary; Rachael O’Brien, Deputy Secretary for Legislation; Crystal Myers, Office of Grants Administration and Thea Rittenhouse, CDFA’s Farmer Equity Advisor.

Among the departmental updates will be an overview of the Specialty Crop Block Grant Program, a follow-up discussion about the recent Global Climate Action Summit, and an introduction of CDFA’s Farmer Equity Advisor.

California is the largest agricultural producer and exporter in the nation with 77,100 farmers operating on more than 25 million acres. Last month, the United States Department of Food and Agriculture reported that California’s farmers and ranchers received more than $50.1 billion in cash receipts for 2017, representing approximately 13 percent of national production.

“Farmers are impacted by a lot of issues at the local, state and federal level,” said President Don Cameron, California State Board of Food and Agriculture. “But I cannot think of a better place to farm – our state remains at the forefront of innovation as we face challenges related to water, immigration, trade and agricultural pests and disease. We are innovative because California’s farmers and ranchers are dedicated to doing what is right and committed to finding workable solutions.”

The California State Board of Food and Agriculture advises the governor and the CDFA secretary on agricultural issues and consumer needs. The state board conducts forums that bring together local, state and federal government officials, agricultural representatives and citizens to discuss current issues of concern to California agriculture.

All meetings are open to the public and attendance is welcome.

Follow the board on Twitter at: www.twitter.com/Cafood_agboard.

Expanding CEO-to-worker pay gap bad for business

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Written by: Yasmin Anwar
Published: 27 September 2018
BERKELEY, Calif. – Companies whose CEOs earn hundreds of times their average employee’s pay are viewed as less desirable to work for, and to do business with, according to a new University of California, Berkeley, study.

Probing a new angle of income inequality, UC Berkeley researchers sought to determine how people would feel about a company once they knew what the top executive made compared to the workers.

Their findings, just published in the online issue of the Journal of Experimental Social Psychology, suggest that the wider the pay gulf, the more negative the perception of the company from the standpoint of potential employees and consumers.

"Our results indicate that consumers are less interested in purchasing from and getting a job at companies with high CEO-to-worker compensation ratios," said study lead author Arianna Benedetti, a Ph.D. student in psychology at UC Berkeley.

The study is especially timely in the face of the Security and Exchange Commission’s new requirement that publicly held corporations disclose their CEO-to-worker pay ratio. The most recent filings indicate an average CEO-to-worker ratio of 361:1. For Fortune 500 companies, the gap can be 10 times wider.

Notably, study participants were more bothered by the disparity between executive compensation and worker wages than by the actual amount people made, suggesting a visceral disapproval of businesses whose profits fail to trickle down the corporate ladder.

"This likely reflects a psychological aversion toward inequity, which develops early in life," said study senior author Serena Chen, a psychology professor at UC Berkeley. "For example, if a CEO makes a great deal of money, but the average worker also makes a good wage, people feel that the wealth is being distributed more fairly and in turn will have a more positive impression of the company."

Public distaste for a gaping CEO-to-worker pay ratio could translate into difficulties recruiting talent and attracting investors and result in lukewarm reviews on crowdsourcing forums like Yelp.

That said, the disparity did not influence study participants’ view of a company’s overall success or ability to innovate. Moreover, negative feelings about companies with large CEO-to-worker pay gaps lessened when they learned more details about a CEO’s actual responsibilities.

How they conducted the study

For a series of studies, UC Berkeley researchers recruited more than 1,000 participants nationwide via Amazon’s Mechanical Turk crowdsourcing platform as well as Bay Area networks.

Among other tasks, participants read a detailed description of a mock company modeled after an actual company. Different participants were presented with different CEO-to-worker ratios ranging from 25:1 to 350:1 so that researchers could see how their evaluations were influenced by high and low ratios.

They then rated the companies based on such measures as employee morale, employee well-being, work-life balance, collaboration, innovation, trustworthiness, global impression and ratio fairness. They also rated their likelihood of purchasing the company’s products and working for the company.

The results consistently demonstrated that a company’s internal morale and external reputation could be positively or negatively influenced by the CEO-to-worker pay gap. Moreover, they reflect real-world data that the researchers collected from the job search Web site, www.Glassdoor.com, that shows a connection between CEO-to-worker-pay ratios and reviews of companies.

"Our study shows that CEO-to-worker ratios really matter to employees and consumers alike," Benedetti said. "These results demonstrate that, now that publicly traded companies have started to disclose their CEO-to-worker ratios, they need to be cognizant of and prepared for the effects such disclosure may have."

Yasmin Anwar writes for the UC Berkeley News Center.

Commissioner approves new program to streamline licensing process for independent insurance adjusters

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Written by: California Department of Insurance
Published: 27 September 2018
SACRAMENTO – Insurance Commissioner Dave Jones announced he has approved a Universal Claims Certification program, or UCC, from Claims and Litigation Management Alliance, or CLM, designed to streamline the licensing process for independent insurance adjusters.

The UCC makes the process of licensing independent insurance adjusters who wish to acquire and manage their independent insurance adjuster licenses in multiple states more efficient.

The UCC does not replace an independent insurance adjuster license, but makes the process of securing a license more efficient. Both licensed and unlicensed individuals can acquire a UCC.

However, unlicensed individuals must first go through an intensive training by completing a 40-hour online pre-certification education program and successfully pass an examination to earn the UCC.

"As insurance commissioner, one of my top priorities is making sure California's insurance market is healthy and vibrant," said Insurance Commissioner Dave Jones. "The Universal Claims Certification process is designed to streamline the independent insurance adjuster licensing process and reduce costs. Also, the UCC program sets requirements for licensees that exceed the requirements under current California law, meaning it requires licensees to complete more continuing education, which greatly benefits the independent insurance adjusters and consumers. When this program was filed, my department worked to expedite approval so independent insurance adjusters would benefit from the efficiency the UCC is designed to provide. I encourage more organizations to develop innovative programs and business models, like this one, to better serve the needs of the California insurance market."

Currently, independent insurance adjuster applicants are not required to complete any prelicensing education.

California's applicants are only required to take and pass the independent insurance adjuster license examination and meet the license requirements to receive an independent insurance adjuster license.

For a licensee to maintain the UCC, the independent insurance adjusters must complete 24 hours of continuing education every two years including five hours of insurance law and ethics.

The UCC program's insurance law and ethics requirement exceeds California's required three hours of law and ethics that is a part of and not in addition to the 24-hour continuing education requirement.

Once independent insurance adjusters acquire the UCC, they will be able to more quickly obtain a license in the states where the UCC is currently approved, including Alabama, Florida, Georgia, Mississippi, Texas, and now California. This will allow out-of-state adjusters to be more readily available when a natural disaster occurs.

"For years, the CLM membership has complained of the tedious state-by-state adjuster licensing process. We first worked to tackle the process of managing multiple licenses with our Tracker product, then we started to work with various states to actually change the licensing process," says CLM Founder and former CEO Adam Potter. "It's exciting to see this work come to life as we launch the UCC."

CLM is an insurance industry association with more than 45,000 members that focuses on education and resources. CLM offers over 300 live courses, events and conferences annually.

Governor signs bill to benefit fishermen, fish buyers, state economy and environment

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Written by: Elizabeth Larson
Published: 26 September 2018
SACRAMENTO – For decades, the State of California has required fish landing receipts to be completed by hand and submitted via the US Mail twice per month.

This process has proven extremely burdensome, inefficient and antiquated.

Fish tickets, also known as landing receipts, are used by commercial fish buyers to report what type of fish was caught, how much was caught, etc.

Current law authorizes the California Department of Fish and Wildlife to accept fish tickets by paper submissions twice a month.

This is a tedious and time-consuming process and prevents a shift to more real-time management of fisheries, which is critically needed.

This new law will update the processes for electronic submission as CDFW transitions to accept fish tickets electronically.

The Fish and Game Commission adopted regulations through its administrative procedures to ensure the switch from paper landing receipts to electronic fish tickets. However, the commission lacked the authority to alter reporting requirements.

“Transitioning from paper landing receipts to electronic fish tickets just makes sense. It helps to save time, reduce costs, and it will allow officials to better manage the state’s multi-billion dollar fisheries,” Sen. McGuire said. “This has been a team effort, and this new law will benefit fishermen, fish buyers, the state’s economy, and the environment by helping us to better maintain healthy and sustainable commercial fisheries.”

SB 269 received overwhelming bipartisan support passing both the Senate and Assembly without opposition.

The legislation was supported by California Fisheries and Seafood Institute, California Wetfish Producers Association and The Nature Conservancy.
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