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The California Budget Conference Committee approved a three percent independent contractor withholding provision, which would drastically affect each and every direct sellers business. If approved, the proposal would require your direct selling company to withhold three percent of any money you may have earned and remit this amount to the state.
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Mr. Garrett: i thank the chair and i yield myself two minutes and i would like to begin by commending my good friend and colleague from new jersey, from south jersey, congressman john adler, for his hard work on this very important issue. And as all our colleagues know in new jersey and around the country, our nation’s in a tough economic time right now and these tough times are compounded, if you’re a small business. And the last thing that we need to do is to put more burdens on them by imposing costly regulations. I think we all agree that our nation’s small businesses aren’t enough to cause our financial situation but they’re enough to get us out of it. The language in the bill that would exempt small businesses with a market capitalization of $75 million or less from section 404-b was added during committee consideration by myself and mr. Adler and was adopted by a broad bipartisan vote with the backing of the white house as well. And unlike some would like to have you believe, this exemption does not exempt institutions from all auditing requirements and as the independent committee of bankers association notes in a letter on this matter they say regulatory burden will be in addition to their other annual auditing fees, the regular safety and soundness and compliance examinations conducted by the banking agencies and complying with numerous other federal, state banking laws and regulations. It will also be in addition to complying with fiction 404-a which requires management to rend ar opinion concerning internal controls. Basically all that means is there is a plethora of other regulations providing for transparaphernalia sophomore these companies. Will et — transparency of these companies. Let me give you an example of a company in my district, small company, 35 employees, capitalize $3.6 Million. Hardly a company that’s going to cause pan knick this country if they fail. The c.E.O., The c.F.O. And other management, they’re all located on the same hallway in the same building, there’s constant communication between all the board of directors and they are a perfect example of a small business of which the government should not force new and now highly expensive regulatory requirements in order to have them check off some boxes on some forms. Think about it. The hundreds of thousands of dollars that it will cost them to comply with section 404-b will be much better spent on developing new and more efficient generators which is what the company does to support our troops overseas, to be used on the battlefield or be used to hire new employees which is what we talked about a number of times before on this floor, to make sure that we can provide more jobs as we see the jobless rate expire and i reserve the balance of my time.
Hello everyone and welcome to GopherHaul. GopherHaul is a show for entrepreneurs and new business owners. In it we discuss business tips and tricks we have learned over the years and share with you some real world experiences on how to help your lawn care business or any other business grow. 
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