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Business News

CDFA announces vacancies on Fertilizer Research and Education Program’s Technical Advisory Subcommittee

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Written by: California Department of Food and Agriculture
Published: 17 June 2018
SACRAMENTO – The California Department of Food and Agriculture is announcing three vacancies on the Fertilizer Research and Education Program’s Technical Advisory Subcommittee, or TASC.

TASC reviews and recommends research and education proposals for funding and implementation to the department’s Fertilizer Inspection Advisory Board.

Funded through a mill assessment on the sale of fertilizing materials, Fertilizer Research and Education Program sponsors and facilitates research to improve the agronomic and environmental use of fertilizing materials in agriculture.

The program serves growers, agricultural supply and service professionals, extension personnel, public agencies, consultants, and the public.

Applicants must demonstrate technical, applied, and scientific expertise in the fields of agronomy, soil science, plant physiology, production agriculture, and environmental issues related to fertilizer use.

The term of office for subcommittee members is three years. Members receive no compensation, but are entitled to payment of necessary travel expenses.

Individuals interested in being considered for appointment should send a resume and a prospective member appointment questionnaire to This email address is being protected from spambots. You need JavaScript enabled to view it.. The application deadline is July 20.

For further information about FREP, please contact FREP staff at 916-900-5022 or visit http://cdfa.ca.gov/go/frep.

With one month remaining in fiscal year, state controller reports state revenues fall short of projections

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Written by: California State Controller’s Office
Published: 09 June 2018
SACRAMENTO – State Controller Betty T. Yee reported California brought in less tax revenue than expected during the month of May.

Total revenues of $8.25 billion were below monthly estimates in the governor’s FY 2018-19 updated budget proposal by $784.2 million, or 8.7 percent.

With one month left in the 2017-18 fiscal year that began in July, total revenues of $115.38 billion are $784.2 million less than estimates in the May budget revision, but $4.52 billion higher than expected in the enacted budget.

Total fiscal year-to-date revenues are $10.10 billion higher than for the same period in FY 2016-17.

For May, personal income tax (PIT) receipts of $4.82 billion were $497.4 million, or 11.5 percent, higher than estimated in the governor’s May budget proposal.

For the fiscal year, PIT receipts are $3.28 billion, or 4.2 percent, higher than projected in the 2017-18 Budget Act.

May corporation taxes of $570.6 million were $79.2 million, or 12.2 percent, less than forecasted in the governor’s proposed budget unveiled last month.

For the fiscal year to date, total corporation tax receipts are 15.9 percent above assumptions in the enacted budget.

Sales tax receipts of $2.43 billion for May were $1.11 billion, or 31.4 percent, lower than anticipated in the governor’s FY 2018-19 amended budget proposal.

For the fiscal year, sales tax receipts are 1.7 percent lower than expectations in the 2017-18 Budget Act.

Unused borrowable resources through May exceeded amended budget projections by 13.4 percent.

Outstanding loans of $5.83 billion were $1.17 billion less than the governor’s May Revision expected the state would need by the end of May. The loans were financed entirely by borrowing from internal state funds.

Insurance market responding to Jones' call for insurance products for cannabis businesses

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Written by: California Department of Insurance
Published: 05 June 2018
SACRAMENTO – Insurance Commissioner Dave Jones announced he has approved the first Cannabis Business Owners Policy (CannaBOP) in the state of California.

The American Association of Insurance Services (AAIS) designed the new CannaBOP program for cannabis dispensaries, storage facilities, processors, manufacturers, distributors, and other cannabis-related businesses operating in the state.

"Cannabis businesses need insurance coverage to help them recover when something goes wrong just as any other legalized business does," said Commissioner Jones. "This first-of-its-kind Cannabis Business Owners Policy or CannaBOP program will make it easier for more insurers to enter the market and fill coverage gaps for cannabis businesses. I encourage insurers to take advantage of this new standardized CannaBOP program to file more cannabis insurance products with the department to meet the needs of this emerging market."

AAIS developed a California specific business owners policy (BOP) program for the cannabis industry, complete with forms, rules, and rating information.

The CannaBOP program provides a package policy containing both property and liability coverage for qualifying California cannabis dispensaries, storage facilities, distributors, processors, manufacturers, and other businesses participating in or supporting the California cannabis industry.

Commissioner Jones launched an initiative last year to encourage commercial insurance companies to write insurance to fill coverage gaps for the cannabis industry.

As a result of Jones' initiative, the first filing and approval of commercial insurance for the cannabis industry from an admitted carrier was announced in November of last year, the first surety bond program for the industry was announced in February and the first coverage for commercial landlords for the industry and a product liability and product recall program for the industry were announced last month. There are also approximately 20 surplus lines writers offering cannabis insurance.

Commissioner Jones hosted a national webinar titled Weeding through the Unique Insurance Needs of the Cannabis Industry with the National Association of Insurance Commissioners Center for Insurance Policy and Research.

In April, Jones renewed his call for insurers to offer insurance products for California's legalized cannabis industry in the wake of published reports that President Trump has abandoned Attorney General Jeff Sessions' policy on federal law enforcement of cannabis. Jones sent a formal letter to California insurers encouraging them to fill insurance gaps for California's cannabis businesses.

Workers' compensation costs continue to decline but employers not seeing equivalent premium savings

Details
Written by: California Department of Insurance
Published: 31 May 2018
SACRAMENTO – On Wednesday California Insurance Commissioner Dave Jones adopted and issued a revised workers' compensation insurance advisory pure premium rate, lowering the benchmark to $1.74 per $100 of payroll for workers' compensation insurance, effective July 1, 2018.

Commissioner Jones has reduced the benchmark rate by 36.5 percent since January 2015, when the average pure premium rate was $2.74 per $100 of payroll.

With an average filed pure premium rate of $2.22 per $100 of payroll as of January 1, 2018, insurers are on average applying pure premium rates that are 27.6 percent more than the indicated pure premium rate approved by the commissioner Wednesday.

Even after considering the industry's extensive use of rating plan credits, industry profitability appears to be substantial as a percentage of premium.

"It is time insurers do the right thing and pass along more cost savings to California employers who deserve to share in the benefits cost reductions have brought to the workers' compensation system," said Insurance Commissioner Dave Jones. "In addition to the cost reductions that have led to higher profits, insurers are also benefiting from the federal income tax break, which should result on average in about another five percent decrease in premiums."

Commissioner Jones' order sets the advisory pure premium rate below the $1.80 average rate recommended by the Workers' Compensation Insurance Rating Bureau (WCIRB) in its filing.

Jones issued the advisory rate after a public hearing and careful review of the testimony and evidence submitted by stakeholders. The pure premium benchmark rate is only advisory, as the Legislature has not given the insurance commissioner authority over workers' compensation insurers' rates.

The WCIRB's pure premium advisory rate filing established that overall costs continue to decline in California's workers' compensation insurance system.

The pure premium advisory rate reduction is based on insurers' cost data through December 31,2017. Insurers' net costs in the workers' compensation system continue to decline as a result of SB 863, SB 1160, and AB 1244 enacted by the Legislature and Governor Brown. The WCIRB noted continued favorable medical loss development including acceleration in claim settlements.
  1. Consumer trust in autonomous vehicles slips
  2. Lake County Sheriff’s Office issues update on cannabis background fees
  3. Commissioner approves new product liability program for cannabis industry
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