Governor Schwarzenegger Vetoes 10 'Job Killer' Bills
Click on the bill numbers below for more information.
Costly Workplace Mandates
AB 482 (Mendoza; D-Norwalk) Expanded Employer Liability
Increases exposure to liability for hiring decisions by unduly restricting the ability of employers to base employment decisions on the evaluation of all legally available information, including consumer credit reports. Vetoed.
AB 1994 (Skinner; D-Berkeley) Increased Workers’ Compensation Costs
Inappropriately increases costs to employers by expanding workers’ compensation presumptions into the private sector for the first time by allowing hospital workers to be eligible for various presumptions, including H1N1, MRSA, and other diseases and injuries. Missed deadline to pass house of origin.
AB 2187 (Arambula; I-Fresno) Expanded Employer Liability
Creates a significant disincentive to locate jobs and operations in California by potentially criminalizing almost any legitimate wage dispute with a terminated employee that takes longer than 90 days to resolve. Vetoed.
AB 2727 (Bradford; D-Gardena) New Liability for Hiring Decisions
Increases potential liability exposure for hiring decisions by restricting the ability of employers to make their decision based on a job applicant’s criminal conviction. Missed deadline to pass house of origin.
SB 145 (DeSaulnier; D-Concord) Workers’ Compensation Apportionment
Erodes recent workers’ compensation reforms and leads to higher premiums for California employers by undercutting fair and reasonable provisions in current law that protect an employer from paying for disability that was not caused by a workplace accident. Vetoed.
SB 810 (Leno; D-San Francisco) Government-Run Health Care
Creates a new government-run, multibillion-dollar socialized health care system supported by an unspecified "premium structure" that would conflict with recently enacted federal health care reform. Died on Assembly Floor.
SB 1121 (Florez; D-Shafter) Harms California Farms and Farm Workers
Places farms at a competitive disadvantage, increases cost of doing business for California farmers, and reduces available resources to invest in workers and farms by removing overtime exemption for agricultural employees. Vetoed.
SB 1474 (Steinberg; D-Sacramento) Increased Agricultural Costs
Designed to increase union representation of agricultural employees even when it is against the will of employees by undermining the process that now guarantees, through secret-ballot elections, a fair vote and the expression of agricultural employees’ true sentiments on the selection of a collective bargaining representative. This act will hurt California’s businesses by driving up costs, making employers less competitive in a global market. Vetoed.
Economic Development Barriers
AB 656 (Torrico; D-Fremont)/AB 1604 (Nava; D-Santa Barbara)/ABX6 1 (Nava; D-Santa Barbara) Gas Price Increase
Increases gas prices and dependence on foreign oil by targeting the oil industry for a tax on only oil extracted in California, in addition to other taxes not levied in other states. AB 656 in Senate Education Committee. AB 1604 in Assembly Revenue and Taxation Committee. ABX6 1: Assembly Print.
AB 846 (Torrico; D-Fremont) Anti-Business Cost Increases
Significantly increases the cost of doing business in California by automatically adjusting maximum and minimum penalties upward according to inflation and by raising penalties even higher according to an arbitrary rounding scheme. Died in Senate Governmental Organization Committee.
AB 1405 (De León; D-Los Angeles) Climate Change Tax Increase
Increases costs and discourages job growth by granting the Air Resources Board broad authority to implement unlimited fees and taxes with little or no oversight. Vetoed.
AB 1511 (De León; D-Los Angeles) Tax Increases for California Employers
Increases taxes for California employers and delays the state's economic recovery by repealing the NOL carryback deduction, making the single sales factor apportionment formula mandatory, and extending the suspension of the NOL carryforward deduction and unitary credit sharing. In Senate Revenue and Taxation Committee.
AB 1639 (Nava; D-Santa Barbara) Delays Residential Construction Industry Recovery
Hinders recovery of the residential construction industry by reducing credit availability due to the imposition of a mandatory mortgage mediation program, which will lead to increased delays in resolving delinquent loans. Failed passage in Assembly.
AB 1836 (Furutani; D-South Los Angeles County) Increased Tax Burden
Harms small businesses, many of whom pay taxes under the personal income tax system, by imposing another temporary personal income tax increase on top of the existing personal income tax increase that was passed in last year’s budget. Held on Assembly Revenue and Taxation Committee Suspense File.
AB 1935 (De León; D-Los Angeles)/ SBX6 18 (Steinberg; D-Sacramento) Discourages Business Growth in California
Raises taxes for many companies with significant investments of property and payroll in California by making the single sales factor apportionment method mandatory. AB 1935 held on Assembly Appropriations Committee Suspense File. SBX6 18 in Senate Revenue and Taxation Committee.
AB 1936 (De León; D-Los Angeles) Creates Inequity in the Tax Structure
Harms struggling small businesses and start-ups by repealing the Net Operating Loss (NOL) carry back deduction, a lifeline that helps employers stay afloat, retain employees, and continue investing in their businesses in an economic downturn. Held on Assembly Appropriations Committee Suspense File.
AB 2100 (Coto; D-San Jose)/ SB 1210 (Florez; D-Shafter) Targeted Tax Increase/Flawed Budget Philosophy
Threatens jobs in beverage, retail and restaurant industries by arbitrarily and unfairly targeting certain beverages for a new tax in order to fund obesity-prevention programs and services. AB 2100 in Assembly Revenue and Taxation Committee. SB 1210 on Senate Revenue and Taxation Committee Suspense File.
AB 2171 (C. Calderon; D-Montebello) Discourages Investments
Creates substantial uncertainty for employers and discourages future investment in the state by effectively creating an annual sunset for all investment incentives, including tax credits, deductions and exemptions, and caps how much can be claimed each year. Missed deadline to pass house of origin.
AB 2492 (Ammiano; D-San Francisco) Higher Employer Property Taxes
Undermines Proposition 13 protections and could result in higher property taxes for small businesses by creating an arbitrary and unfair standard for determining that a business property has changed ownership and needs to be reassessed. Assembly Third Reading.
AB 2498 (Skinner; D-Berkeley) Unreasonable and Duplicative Tax Penalties for Employers
Establishes a tax amnesty program related to “abusive tax avoidance transactions” along with severe penalties that could harm innocent taxpayers, as well as unfairly restrict the rights of attorneys and tax professionals to practice their professions. Missed deadline to pass house of origin.
AB 2641 (Arambula; I-Fresno) Discourages Investments
Creates uncertainty for California employers making long-term investment decisions by requiring all future-enacted investment incentives to sunset after five years, and eliminating existing incentives that provide no “measurable benefit” without defining how that benefit would be measured. Missed deadline to pass house of origin.
ACA 6 (C. Calderon; D-Montebello) Discourages Investments
Discourages investments in jobs and operations by imposing an automatic sunset of seven years on any new or extended tax credit, exemption or deduction. Died on Assembly Floor.
ACA 22 (Torlakson; D-Contra Costa) Targeted Tax Increase/Flawed Budget Philosophy
Exacerbates state budget problems and harms tobacco industry by unfairly targeting it for a new cigarette tax, a declining revenue source, to fund new government spending programs. Died in Assembly Governmental Organization Committee.
SB 967 (Correa; D-Santa Ana) Restricts Business Options
Limits choice and drives up prices for consumers and for state and local government by providing a preference to bidders who commit that 90 percent of the work will be performed by California employees. Vetoed.
SB 974 (Steinberg; D-Sacramento) Undermines Economic Development
Threatens California’s economy and economic recovery by effectively gutting the California Enterprise Zone (EZ) program hiring tax credit and in turn increasing employer taxes in order to fund a new education tax credit. In Assembly Jobs, Economic Development and the Economy Committee.
SB 1113 (Wolk; D-Davis) Undermines Taxpayer Rights
Makes it more costly and difficult for taxpayers to fight meritorious disputes and gives the Franchise Tax Board (FTB) the upper hand by allowing FTB to request a new court trial of tax cases it loses at the administrative level. Failed passage in Senate.
SB 1272 (Wolk; D-Davis) Discourages Investment
Creates uncertainty for California employers making long-term investment decisions by requiring all future-enacted investment incentives to sunset after seven years. Vetoed.
SB 1275 (Leno; D-San Francisco) Delays Residential Construction Industry Recovery
Hinders recovery of the residential construction industry by reducing the availability of credit due to delays in resolving delinquent loans by requiring lenders to determine a borrower’s eligibility for a loan modification prior to the filing of a notice of default. Failed passage in Assembly.
SB 1316 (Romero; D-East Los Angeles) Employer Tax Increase
Places California out of step with federal law and creates a disincentive for multi-state companies to invest in California by making it the only state to impose a tax liability when a company needs flexibility to exchange a California property with one owned in another state. Senate Inactive File.
SB 1391 (Yee; D-San Francisco)/SBX6 20 (Yee; D-San Francisco) Creates Employer Tax Credit Uncertainty
Eliminates the incentive effect of future-enacted tax credits by requiring employers to repay the state for credits claimed in years where their businesses experience a net loss of employees, whether or not the reduction of employees was connected to the effectiveness of the credit. SB 1391: Senate refused to concur in Assembly amendments. Dead. SBX6 20: Introduced 9/21/10.
Expensive, Unnecessary Regulatory Burdens
AB 479/AB 737 (Chesbro; D-North Coast) Expanded Waste Bureaucracy
Exposes employers to new requirements that may be unworkable or not cost effective by giving government broad new authority to impose programs that achieve a statewide solid waste diversion rate of 75 percent by 2020. AB 479: Held on Senate Appropriations Suspense File. Dead. AB 737: Amendments removed "job killer" provisions, but CalChamber still opposes. Vetoed.
AB 2138 (Chesbro; D-North Coast) Unworkable Mandate
Imposes new and costly mandates on California’s food service industry by imposing an unworkable framework aimed at reducing marine debris. Missed deadline to pass house of origin.
AB 2578 (Jones; D-Sacramento) Inappropriate Price Control
Reduces health care choices, access and quality by creating additional bureaucracy to impose price controls on health insurance policies while failing to address the major cost drivers of rising medical costs. Failed passage in Senate.
Inflated Liability Costs
AB 1680 (Saldaña; D-San Diego) Interferes with Contractual Agreements
Burdens businesses with unnecessary litigation costs and slows resolution of disputes by presumptively invalidating arbitration agreements in an otherwise voluntary contract if the underlying claim involves a possible hate crime. Vetoed.
AB 2773 (Swanson; D-Alameda) Undermines Judicial Discretion
Unreasonably increases business litigation costs by limiting judicial discretion to reduce or deny exorbitant legal fees in fair employment and housing cases. Vetoed.
Unrestrained Government Control
AB 1602 (John A. Perez; D-Los Angeles) Unrestrained Government Control
AB 1602, together with SB 900, prematurely creates overly broad and expansive governance and guidelines without oversight for the state health benefit exchange, which could lead to unnecessary cost increases and limited choice for employers. Chapter 655.
SB 900 (Alquist; D-Santa Clara) Unrestrained Government Control
SB 900, together with AB 1602, prematurely creates overly broad and expansive governance and guidelines without oversight for the state health benefit exchange, which could lead to unnecessary cost increases and limited choice for employers. Chapter 659.