Government Relations Committee SEPTEMBER 19 DRAFT MINUTES

Government Relations Committee
SEPTEMBER 19 DRAFT MINUTES – THIS MONTH WAS A CONFERENCE CALL
Participants
Nancy Noe – Johnson & Johnson (co-chair)
Donna Blitzer – UC Santa Cruz (co-chair)
Sherri Sager – Lucile Packard Children’s Hospital
(co-chair emeritus)
Justin Bean – Streetline
Jessy Borges, Bloom Energy
Kari Decker – JP JP Morgan Chase
Mike Foulkes – Apple
Erin Heatley – Outreach
Michelle Moskowitz – UC-Berkeley
Tamon Norimoto – PG&E
Wade Rose – Dignity Health
Claudine Tuazon – Applied Materials
Grace Kay – Silicon Valley Leadership Group
Kirk Everett – Silicon Valley Leadership Group
I. August Minutes Approval – Motion by: Sager Second by: Rose Outcome: Approved
II.
INFO ITEM: Statewide Ballot Measures: Committee revisited the status of some of the statewide
and local ballot measures for a status update. At the Leadership Group’s October 9 Board of
Directors, they will be considering Prop. 30 – the Governor’s Temporary Tax Increase proposal AND
Prop. 39 – the Steyer measure to make CA SSF mandatory to pay for clean tech incentives.
‣ (qualified) Prop. 30 – Governor’s Temporary PIT Tax Increase to Fund Education and Public
Safety. This measure would increase the personal income tax on annual earnings over $250,000
for seven years. It also increases sales and use tax by ¼ cent for four years. And, the measure
allocates temporary tax revenues 89 percent to K-12 schools and 11 percent to community
colleges. (Leadership Group position: PENDING, likely “no position/stay off”). So far, other
business groups including the CA Chamber and Bay Area Council have weighed in to “stay off”.
Mt. View Chamber and Santa Cruz Chamber have supported. No motion by Committee to
change positioning.
‣ (qualified) Prop. 31: Government Performance and Accountability Act (California Forward and
Think Long’s ballot measure). The measure includes four principles which the Leadership Group
supports: 1) requires performance based budgeting, 2) one-time budgeting for one-time
expenses, 3) demand multi-year budgets, and, 4) provide more transparency in the bill drafting
timing process. Unfortunately, the ballot measure was loaded down with two less desirable
provisions: the local government strategic fund which lacks accountability measures and the
pay-go proposal which could limit the opportunity for future tax incentives. (Leadership Group
position: Support 4 principles, Neutral on other two). New Motion: Support Prop. 31 Second:
none offered. A Subsequent Motion: agree that Board decision should stand; Second: Bean
Outcome: approved
‣ (qualified) Prop. 39 Tax Treatment for Multistate Businesses. Clean Energy and Energy Efficiency
Funding (Tom Steyer Initiative). This measure would require multistate businesses to calculate their
CA income tax liability based on the percentage of their sales in CA. Repeals existing law giving
multistate businesses an option to choose a tax liability formula that provides favorable tax
treatment for businesses with property and payroll outside CA. Dedicates $550 million annually for
five years from anticipated increase in revenue for the purpose of funding projects that create
energy efficiency and clean energy jobs in CA. (Leadership Group position: Working Council
recommends support to Board of Directors)
‣ (qualified) Prop. 40: Referendum on State Senate Redistricting – SacBee reported that after leading
a successful $2.3 million signature gathering campaign to place a referendum challenging California’s
newly drawn Senate districts before voters, proponents have decided not to seek passage. Prop. 40
will remain on the November ballot, but sponsors will not raise funds or campaign for the
referendum. (Leadership Group position: Government Relations Committee recommends

Government Relations Committee
SEPTEMBER 19 DRAFT MINUTES – THIS MONTH WAS A CONFERENCE CALL
“oppose” – on the Sept. 6 Working Council Consent calendar). Recently, concerns arose that voters
will be confused with Prop. 40 because: If Prop. 40 goes down, 1) there is a chance courts could
strike down the entire independent redistricting commission and leave redrawing the lines up to the
CA Supreme Court; and If Prop. 40 goes through 2) the citizens’ independent redistricting
commission would remain intact. Motion: Sager to “Yes, Reaffirm Citizens Position in Redrawing
District Lines would stand” (a “no” vote would throw it out); Second: Borges. Outcome: Approved
Other Statewide measures which have qualified but the Leadership Group is “staying off”:
‣ Prop. 32 – Prohibits Payroll Deductions for Campaign Uses
‣ Prop. 33 – Would Allow Insurance Companies to Set Rates Based on a Driver’s History
‣ Prop. 34 – Death Penalty – savings and accountability act
‣ Prop. 35 – Human Trafficking Penalties Increased
‣ Prop 36 – 3 Strikes only for most serious offenses.
‣ Prop 37 – Genetically engineered food labeling requirements.
‣ Prop 38 – Increase Sales and PIT increase to pay for Education (Molly Munger Initiative).
INFO ITEM: 2012 Local Ballot Measures
An update was given on the various local measures where the Leadership Group has weighed in/stayed off.
They are as follows:
‣ SJ Minimum Wage Increase. On May 22, the City of San Jose council placed this measure on the
ballot to raise the minimum hourly wage from $8 to $10 and COLA increases. 3 out of the 11 council
members favored the increase when it came before the council and instead they opted for voters to
weigh in. Leadership Group – “Stay off” No position.
‣ Santa Clara County has placed an 1/8 of a cent sales tax on the November 6 ballot to pay for county
law enforcement and hospital emergency room services. This is in addition to the 2008 sales tax
increase goes from 8.25 to 8.375 to pay for the BART extension, which was supported by the
Leadership Group. The organization has a history of supporting local tax increase measures on the
ballot if the funding benefits core competencies such as education, transportation, housing, etc.
With the additional 1/8 th increase from the county, the rate would rise to 8.5%. Valley Medical and
Santa Clara Family Health Foundation are in support. The San Jose/Silicon Valley Chamber of
Commerce is opposed. Leadership Group – Working Council recommended “support” to the Board.
‣ Santa Clara Valley Water District extension of the $54 per parcel tax which is set to expire in 2016.
And, there are some local education parcel tax measures going through our education committee.
Leadership Group position: Support
‣ San Francisco: In addition to the Hetch-hetchy proposal, San Francisco Mayor Ed Lee and the Board
of Supervisors achieved an agreement which would do away with a payroll tax, which is based on
how many workers businesses have and how much they pay them. Businesses would instead be
taxed on their gross receipts - a plan favored by many of the tech companies sprouting up in San
Francisco, which are hiring. The deal meets mayor's requirement that any change be "revenue
neutral" - meaning businesses would pay about the same amount to the city as they do now. But it
also contains a provision to allow the city to collect at least an extra $25 million annually in business
license fees - with half the money going into the general fund and the other half into
affordable housing. Leadership Group position – “support”
III.
ACTION ITEM: Government Relations Committee Annual Review – “Return on Investment” Workplan
Committee members were invited to attend the Annual Strategy Conference on October 11 and 12 at
Scotts Valley Hilton.

Government Relations Committee
SEPTEMBER 19 DRAFT MINUTES – THIS MONTH WAS A CONFERENCE CALL
Committee members reviewed the 2013-2015 Government Relations Committee ROI work plan by
prioritizing the top 3 accomplishments for 2012 and goals for 2013 moving forward. Staff prepared a
draft ROI work plan which will next go to the Strategy Conference, the November Working Council and
December Annual Board meeting.
A draft copy of the ROI was sent to everyone in advance of this meeting. Committee finalized the order
of accomplishments and prioritized the goals for next year.
#1 Accomplishment: Bi-Partisan Silicon Valley Caucus -- Following three sessions this year – with
more than 100 CEO/Senior officer participants on March 23 at Echelon, May 22 in Sacramento
hosted by Brocade and July 11 at SunPower – significant progress was made at the end of the
legislative session last week!
o AB 57, a seat on the Metropolitan Transportation Commission for Silicon Valley – Signed
into law by the Governor.
o Higher ed funding and teacher credentialing:
• SB 1456 (Lowenthal) a student fee waiver for low income Community college
students – will be signed into law;
• SB 885 (Simitian), implementing longitudinal data in public schools – will be signed;
• AB 5 (Fuentes), teacher credentialing – didn’t make it out of the legislature, which
the Leadership Group opposed.
o AB 2165 (Hill) - Net Energy Metering: Eligible Fuel Cell Customer-Generators – will be signed
o Pension Reform: Modest improvement by the Governor, but more work to be done.
o And probably the biggest surprise was CEQA reform – In the final days of session Senate
President Steinberg pledge to take up comprehensive CEQA reform in 2013 with Senator
Rubio as the lead author.
#2 Accomplishment: Sacramento and DC Trip
#3 Accomplishment: Roundtables throughout the year from outside the area to Silicon Valley (e.g. bipartisan
roundtables.)
There was consensus by the Committee on the “accomplishments”. Committee reviewed the proposed
goals within the ROI work plan and we’ll need to re-rank each of them in terms of priority (highest to
lowest). “A” ranking is the highest with “B” and “C” as lower priorities.
The Committee reviewed the “nice to haves” vs. “need to or must haves”. Some of the projects may be
popular for some, but the bandwidth continues to shrink as the list continues to grow. Committee
agreed to remove/make changes to the following projects: Breakfast Club – remove, but revisit down the
road, Voter Registration – remove this year only, Good Government Luncheon Series – remove and
revisit down the road, Fridays Around the Bay – remove (see general roundtables change to work plan),
Candidate Forums – keep, Professional Development Advocacy Workshop keep if timing/interest permit.
Additions for 2013: Fresh Ideas from Newly Elected Legislators, Silicon Valley Caucus is still very young
and worthy of top goal for 2013. Placing sustainable higher education funding as an ongoing top
priority in the DC and Sacramento outreach was suggested.
Motion to support ROI work plan by: Sager Seconded by: Blitzer Outcome: Approved
IV.
Local Government Annual Meetings – August/September/October
Santa Clara County DONE! TY Bloom Energy and Barclays
San Jose DONE! TY Turner Construction and Technology CU
Santa Clara, Sunnyvale, Milpitas DONE! TY FujiFilm Dimatix
Palo Alto – Mt. View (Sept. 27, 9:30-11:00 am) at SAP

Government Relations Committee
SEPTEMBER 19 DRAFT MINUTES – THIS MONTH WAS A CONFERENCE CALL
Santa Cruz – Scotts Valley (Oct. 31, 10:30-noon) at Plantronics TY UC-Santa Cruz and Plantronics!
Los Gatos, Campbell, Cupertino, MS, Saratoga – Sam Arditi, CEO, TIGO Energy -- Narrowing on
two date options
San Francisco – Seeking date options
San Mateo Cty./Menlo Park/RWC – Seeking date options
Alameda Cty, Fremont, Hayward, Newark – Kevin Murai, CEO, Synnex – Seeking date options
Morgan Hill/Gilroy – (Kaiser Permanente) Seeking date options
V. 2012 Non-Partisan Voter Registration Drive
The Leadership Group will soon launch a notice to members about a non-partisan voter registration
drive on ways in which Leadership Group members can encourage employee participation:
Button on Leadership Group’s and companies’ webpage links directing a potential voter to
state registration materials
Also, with thanks to UC-Santa Cruz and SJSU, a co-authored opinion piece is being drafted to
appear sometime in early October in one of the local papers.
VI.
Silicon Valley Caucus
With thanks to Erin Brennock, our final Silicon Valley Caucus for 2012 on November 14 (10am-11:30a) at
Synopsys hosted by CEO Aart de Geus. A “pre-call” with legislative staff is being planned prior to the
11/14 Caucus roundtable: Monday, Oct. 29 at 4:00 or Tuesday, Oct. 30 at 10:45 or Tuesday, Nov. 6 at
9:00 are pending until one of the dates is selected.
CEO and executive participation is encouraged.
VII.
VIII.
Upcoming Dates: Working Council: No Working Council in October – the next one is on Thursday,
November 1 at EPRI in Palo Alto. Next Government Relations Committee: Tuesday, October 16 (Donna to
chair – Nancy is away)
September 20 “Game Changers” Conference from approximately 8:00 a.m.-noon at the Santa Clara
Convention Center is tomorrow!
KLIV/CEO Show – candidates as guests. Please plan to call-in!
o Senate District 15: Jim Beall/ Joe Coto – October 16 confirmed
o Assembly District 28: Paul Fong/Chad Walsh – October 9 confirmed
Annual Strategy Conference on October 11 and 12 at the Scotts Valley Hilton Inn.
Annual Public Policy Luncheon on November 2 at the Santa Clara Convention Center – Governor
Jerry Brown is the keynote speaker.
November 27-29 CEO Follow-up Trip to DC
Other/new Business/Adjourn at 4:22 pm (scheduled to adjourn at 4:30 pm)