2008 Articles
Term Limits Create Intraparty Fights for California Seats
Term limits have turned some former political allies into campaign foes as voters prepare to select nominees for 100 seats in the California Legislature. In a half dozen races on the June 3 primary ballot, former lawmakers are trying to revive political careers that were at least temporarily interrupted by term limits. "I think the stakes for business in this election are very high, and you will see an active effort from the business community to go out and help Democrats who both understand business issues and will help to build the economy for the future of California," said Rob Lapsley, executive director of JOBSPAC, a California Chamber of Commerce campaign committee. (Associated Press in the San Francisco Chronicle 05/08/08)
Taxes as a Tool to Fix Economy
The only proven solution to California's budget deficit is a sustained economic recovery. A sales tax on services would impede that recovery. Many California businesses would face an immediate 8% competitive disadvantage to companies in other states. (Allan Zaremberg in a Letter to the Editor of the Los Angeles Times 05/07/2008)
State Tax Hike Talk Must be Linked to Budget Reform
Is it better to ask permission or beg forgiveness? The California Legislature must believe it is better to beg forgiveness since they never sought permission to raise taxes to pay for a spending spree that has increased outlays by 80 percent since 1998. Now, faced with a deep budget deficit, many elected officials are advocating tax increases to pay for overspending. (Loren Kaye in the Sacramento Bee 04/22/08)
Tax Day Is Over, but Internet Tax Threats Loom
As Americans stretched to pay the tax man this week, California Assemblyman Charles Calderon (D-Montebello) was working on the sly to institute a new digital tax. Such a move is not only short-sighted, but also could seriously harm the state's competitiveness. The California Chamber of Commerce, which opposes the bill, points out that because of a Supreme Court ruling on mail-order companies, "in-state companies will be required to collect the new Internet tax while out-of-state companies will not." (Tech News World 04/18/08)
Nevada Fishes for New Business
Authority representatives stationed themselves outside the Capitol building in Sacramento, Calif., on Tax Day…to remind California business owners as they shelled out state corporate and personal income taxes Tuesday that they'd be free of such levies if they relocated to the Silver State. Allan Zaremberg, president and chief executive officer of the California Chamber of Commerce, agreed that business owners consider factors beyond taxes when they're deciding where to locate a company. "Our access to ports, a vastly superior work force, a tremendous system of higher education and a great quality of life keep us competitive," Zaremberg said. "As well, California has a substantially larger and wealthier consumer base market than other states." (Las Vegas Review Journal 04/17/08)
Should California Require Small Businesses to Offer Sick Days?
Hundreds of small businesses in California say they can't afford to offer paid sick days to employees, but Assemblywoman Fiona Ma believes businesses actually could save money by doing so. The San Francisco Democrat's Assembly Bill 2716 would let workers earn paid sick days that could be used to recover from illness, care for a sick relative or recover from domestic violence or sexual assault. The California Chamber of Commerce said the proposal would "unreasonably expand employers' costs and liability." Those cost increases could result in lower wages, reduced health insurance availability and reductions in worker-training programs, the chamber said. (Sacramento Bee 04/17/08)
Nevada Business Recruiters Try Again in Golden State
Dressed in bear suits outside the state Capitol, the state's business recruitment team chose tax-filing day to pass out gummy bears and hoist signs telling their neighbors that it was "Time to Feed the Bear." Behind the high jinks was serious business for the Nevada Development Authority, which trumpets its success at luring away Golden State business owners frustrated by taxes and regulatory burdens despite a study that brings balance to this boast. Such efforts underscore the need for state government and business to work together, said California Chamber of Commerce President and Chief Executive Allan Zaremberg. (Sacramento Bee 04/16/08)
Assembly Panel Backs Tighter Limits on Gifts to Legislators
AB 2795 would ban individuals, companies or groups that employ lobbyists from giving gifts totaling more than $10 per month to state politicians and officials. Allan Zaremberg, president of the California Chamber of Commerce, did not attend the meeting but said later that he doesn't see how limiting a lunch tab to $10 solves any problem. Casual, face-to-face meetings in which lawmakers receive information from company or industry officials, without lobbying, are an integral part of the political process, Zaremberg said. (Sacramento Bee 04/11/08)
Flexible Workweek Legislation Dies By Party-Line Vote In Committee
Assemblyman John J. Benoit (R-Bermuda Dunes) today announced that his Small Business Family Scheduling Option (Assembly Bill 2127), legislation that would have given flexibility to hourly employees in California's small businesses to alter their workweek schedules, was defeated on a party-line vote in the Labor and Employment Committee. "I am terribly dismayed that liberal-dominated interests, which would be unaffected by my bill´s provisions, have stopped small business employees from having the additional workweek flexibility that workers in 46 other states enjoy," said Benoit. " (California Chronicle 04/10/08)
New Calif. Bill Would Give All Workers Paid Sick Leave
California could become the first state in the country to require paid sick days for all workers, if a controversial bill is eventually passed in Sacramento. "We believe that additional cost could lead to layoffs, could lead to fewer folks being employed," said Marc Burgat of the California Chamber of Commerce. With California facing a more than $16 billion budget shortfall, many agree with Burgat, Luery said. (NBC11.com 04/10/08)
Will Calif. Senate Bill Make Criminals out of Studio, TV Execs?
Democratic state Senator Sheila Kuehl “fair market value” bill backed by the Writers Guild and Teamsters has good intentions, and pokes into a touchy area that needs reform; but as written it is so vague that it might open up a Pandora’s box of conflicting claims; and as a result contracts could be rewritten that would make such a law backfire on the very groups that it is intended to help. The California Chamber of Commerce was blunt in its call to quash the legislation: “The bill uses the legislative process to inappropriately attempt to rewrite an actual, recently-reached collective bargaining agreement. The bill dictates contract terms that were discussed and rejected in negotiations leading to the collective bargaining agreement that brought an end to the recent and highly publicized writer’s strike.’ (Hollywood Today Newsmagazine 04/10/08)
CalBizCentral Releases New Booklets to Aid California Businesses
In response to employment law confusion, CalBizCentral recently released a mini-booklet series titled "What Every Manager Needs to Know About." The five-booklet series is designed to educate managers about state and federal employee law and reduce the legal risks of companies. (HispanicBusiness.com 04/09/08)
Legislators Propose New Labor Laws
The California Chamber of Commerce and small business lobbying groups are sponsoring flexible hours legislation. The bill by Republican Assemblyman John Benoit would allow businesses with 25 or fewer employees, not covered by collective bargaining, to offer four ten hour days per week or other schedule agreeable to both. (KGET.com 04/09/08)
Sick Leave Bill to Get Assembly Hearing
But at least a dozen business groups have lined up to oppose the bill, contending it would increase costs and liability. Business leaders also warn it could lower wages and reduce available health insurance. In the worst-case scenario, the mandate could lead to job loss or reduced work hours, said Denise Davis, a spokeswoman for the California Chamber of Commerce. (Associated Press in the San Jose Mercury News 04/07/08)
Flex Time Helps Workers, Employers
The Inland Valley Chamber Legislative Alliance is asking all businesses to support AB 2127 (Benoit), which will allow employees and employers flexibility in work schedules to help accommodate employees' diverse family obligations, personal pursuits, commuting issues and environmental concerns by allowing a small business to agree to provide scheduling options requested by an employee. This option, known as the Small Business Family Scheduling Option, would allow a small employer (25 or fewer employees) to agree to an employee's request to work an alternative work schedule. (Inland Valley Daily Bulletin 04/05/08)
Restaurants Gain Support for Suit Against San Francisco's Mandatory Health Payments
San Francisco restaurateurs' legal battle with the city's novel health plan is gaining supporters. Groups including the National Federation of Independent Business, the California Chamber of Commerce, the National Association of Manufacturers and the U.S. Department of Labor have written the court arguing that the city's health plan is superseded by a federal law, the Employee Retirement Income Security Act, which restricts local governments from administering employee benefits. (East Bay Business Times 03/31/08)
Chamber a Supporter of Flexible Work Hours Measure
The Modesto Chamber of Commerce supports Assembly Bill 2127, which will allow employees and employers flexibility in work schedules. It will help accommodate workers' diverse family obligations, personal pursuits, commuting issues and environmental concerns. (Joy Madison in the Modesto Bee 03/28/08)
Californians Should Watch Out for Taxes Disguised as Fees
As state lawmakers search for solutions to address California’s significant projected budget deficit, many in the business community are concerned that tax increase proposals will be on the rise. Ironically, a proposed legislative tax increase forthrightly identified as a tax increase is not the most threatening type of proposal to taxpayers. (Kyla Chrisotffersen in Capitol Weekly 03/20/2008)
Businesses Face Loss of Benefits
The state’s major business groups are also opposed to reducing or phasing out corporate tax breaks. “The most important criteria to consider in evaluating tax credits and competing demands for resources is job growth and investment,” said Kyla Christoffersen, policy advocate with CalChamber, formerly the California Chamber of Commerce. “Stimulating the economy is the only way California can generate the tax revenues it needs to run the state over the long term.” (Los Angeles Business Journal 03/10/2008)
Family-Friendly Work Benefits Falling Short
Business groups have opposed such mandates, however, saying they place a burden on employers. The California Chamber of Commerce has called for laws that enable workers to choose flexible work schedules instead. (San Francisco Chronicle 02/26/08)
Senator Margett Calls For Flexibility In Meal Periods For All California Employees and Employers
Senator Bob Margett (R-Glendora) introduced Senate Bill 1192 which gives all California employees greater flexibility in deciding when to take a meal break. According to a recent publication regarding meal periods by the California Chamber of Commerce, "California law on meal and rest periods is a confusing, self-contradictory muddle that exposes employers to indefinite and often unjustified risks of litigation. Further, it provides employers and employees alike with no meaningful ability to maturely manage how employees eat and rest during their daily workday." (California Chronicle 02/13/2008)
Community College Proposition Proves Divisive
Hardly anyone disputes that the 109 public community colleges in California are underfunded, but this initiative underscores disagreement over the right time and the right way to fix that. “It locks in huge new state spending with no way to pay for it,” said Denise Davis, a spokeswoman for the statewide business organization. “We're concerned that it's adding spending in a year when we're facing a huge budget deficit.” (San Diego Union-Tribune 01/28/08)
Medical Pot Rights Don't Apply at Work, Court Says
The decision immediately spurred calls by activists and lawmakers for the overhaul of the state's medical marijuana law voters passed more than a decade ago. But business leaders welcomed the court's position. "We think this protects employers and the safety of employees in the workplace," said Denise Davis of the California Chamber of Commerce. (Sacramento Bee 01/25/08)
Business Friend of Governor
The governor's proposals to plug budget shortfalls include 10 percent cuts in most departments, early release of thousands of prisoners and the full or partial closing of many state parks. What they don't include is additional taxes on business. "We're still working through the budget checking everything," said Denise Davis of the California Chamber of Commerce. "It's a huge process and this is going to be a very tough year. The governor has had to make some hard decisions, but we haven't seen anything hurtful to business." (Inland Valley Daily Bulletin 01/20/08)
Yes on Props. 94, 95, 96 and 97
A broad statewide coalition is supporting Props. 94, 95, 96 and 97, including the governor, fire and law enforcement groups, seniors, the California Chamber of Commerce and other business organizations. The opposition is funded and directed by gaming interests that don't want the competition and don't see the common interest. (North County Times 01/12/2008)
Budget Plan Could Hit Capital Region Hard
Make deep cuts in spending, as Gov. Arnold Schwarzenegger urged in his budget proposal, and you take money out of the economy. Raise taxes, as Democrats believe is necessary, and you create the same effect. "He understands the need to invest in the future," said Denise Davis, a spokeswoman for the California Chamber of Commerce. She said the chamber was "very pleased" that the governor resisted higher taxes. (Sacramento Bee 01/11/2008)
Business Groups Announce Opposition to California Health Care Bill
Business groups are lining up against the proposed health care reform plan touted by Gov. Arnold Schwarzenegger and Assembly Speaker Fabian Nunez. The California Chamber of Commerce, the National Federation of Independent Business, and the California Manufacturers & Technology Association were among the list of a dozen business-friendly groups that signed a letter Jan. 9 announcing their opposition of Assembly Bill X1 1... (East Bay Business Times 01/10/08)
Budget Woes Divert Water Bond
The Republican effort is being led by the California Chamber of Commerce and other business and farm groups. The coalition has not begun collecting signatures for the initiative because it still needs final approval from the Secretary of State's Office. The coalition plans to meet in the future and discuss next steps," said chamber spokeswoman Denise Davis. (Fresno Bee 01/08/2008)
Punitive-Damages Reform Is Essential for Future of California Business
The results of recent national surveys of state legal systems confirm that states have failed to convince businesses that their punitive-damages systems are fair and reasonable. In the same survey, California's punitive-damages system ranked near bottom: third-worst in the nation in 2007, behind Mississippi and West Virginia.(Op-ed by Kyla Christoffersen in the Daily Journal 01/07/08)