2012 ‘Job Killer’ Bills
The California Chamber of Commerce released its annual list of “job killer” bills on April 10, calling attention to the negative impact the proposed measures would have on California’s competitiveness and job climate if they were to become law. To date, 29 bills have been placed on the 2012 “job killer” list.
CalChamber also unveiled this year a new, one-of-a-kind website — CAJobKillers.com — which will serve as a clearinghouse for all information related to those bills, regulations and policy makers deemed to be a threat to California’s ability to retain and create jobs.
Legislation included on the “job killer” list will change throughout the year as bills are amended or new language is introduced.
Click on the bill numbers below for more information.
Barriers to Economic Recovery
AB 278 (Hill; D-San Mateo)/ SB 900 (Leno; D-San Francisco) Impedes Economic Recovery — AB 278 and SB 900 are currently intent bills to enact legislation that will delay the recovery of California’s housing market by allowing all borrowers, including strategic defaulters and investors, to abuse the loan modification process or to interrupt the foreclosure process to forestall legitimate foreclosures, and create a private right of action which could discourage investment in California’s housing market and make capital more expensive for consumers.
AB 1543 (Alejo; D-Salinas) Unconstitutional Limit on International Trade — Increases the cost of state contracts and reinstates a requirement already struck down by California courts by prohibiting state and local governments from contracting with many businesses that use component parts and materials from other countries in construction projects and to manufacture goods. In Assembly Business, Professions and Consumer Protection Committee. Failed 04/27/12 deadline to move to fiscal committee.
AB 1602 (Eng; D-Monterey Park)/ SB 1470 (Leno; D-San Francisco)/) Impedes Economic Recovery — Delays the recovery of California’s housing market by allowing all borrowers, including strategic defaulters and investors, to abuse the loan modification process to forestall legitimate foreclosures. AB 1602 in Assembly Banking and Finance. SB 1470 in Senate Banking and Financial Institutions. Both bills failed 04/27/12 deadline to move to fiscal committee. Topic is now subject of discussions by a legislative conference committee.
AB 1897 (Campos; D-San Jose) Impedes Development — Increases the cost of development and creates project delays by requiring that general plans incorporate concepts related to healthy food access and urban agriculture.
AB 1963 (Huber; D-El Dorado Hills) Targeted Tax on Services — Originally imposed a new sales-and-use-tax base on numerous services, disadvantaging California businesses that will not benefit by the proposed reduction in other tax rates. Amended 04/25/12 to require a study of proposed changes.
AB 2425 (Mitchell; D-Los Angeles)/ SB 1471 (DeSaulnier; D-Concord) Impedes Economic Recovery — Delays the economic recovery of California’s housing market by allowing borrowers, including strategic defaulters and investors, to interrupt the foreclosure process to forestall legitimate foreclosures. AB 2425 in Assembly Banking and Finance. SB 1471 in Senate Banking and Financial Institutions. Both bills failed 04/27/12 deadline to move to fiscal committee. Topic is now subject of discussions by a legislative conference committee.
AB 2517 (Eng; D-Monterey Park) Inappropriate Wage Liens — Creates a dangerous and unfair precedent in the wage and hour arena by allowing employees in the car washing industry to file liens on an employer’s real property or any property where work was performed, based on an alleged but unproven wage claim.
AB 2540 (Gatto; D-Los Angeles) Targeted Tax on Services — Originally imposed a new sales-and-use-tax base on numerous services, disadvantaging small businesses that may not necessarily benefit from the proposed tax exemption for the first $10,000 in business income. Amended 04/25/12 to deal with different subject, so no longer a "job killer."
SB 950 (Alquist; D-Santa Clara) Unreasonable and Duplicative Tax Penalties for Employers — Forces taxpayers to overpay their taxes in order to avoid severe penalties.
Costly Workplace Mandates
AB 1313 (Allen; D-Santa Rosa) Increased Cost on Agricultural Employers — Drives up the cost of commodities to consumers by removing the existing overtime exemption allowed for agricultural employers.
AB 1439 (Alejo; D-Salinas) Automatic Minimum Wage Increase — Increases the cost of doing business on California employers by annually indexing the minimum wage rate upwards according to the percentage of inflation even during an economic downturn.
AB 1450 (Allen; D-Santa Rosa) Expansion of Discrimination Litigation — Subjects employers to charges of discrimination for legitimately inquiring into an applicant’s employment history.
AB 1808 (Williams; D-Santa Barbara) Improper Characterization of Private Employees to Allow Potential Card Check Unionization — Significantly expands the definition of “public employee” to include employees of any private employer where a public agency “shares” in the employment decisions of those private employees, thereby subjecting private employers to petitions of recognition from public employee unions. In Assembly Public Employees, Retirement and Social Security Committee. Failed 04/27/12 deadline to move to fiscal committee.
AB 1999 (Brownley; D-Santa Monica) Expansion of Discrimination Litigation — Makes it virtually impossible for employers to manage their employees and exposes them to a higher risk of litigation by expanding the Fair Employment and Housing Act to include a protected classification for any person who is, who will be, or who is perceived as a family caregiver.
AB 2039 (Swanson; D-Alameda) Expansion of Protected Leave Requirements for California Employers — Creates a burdensome, California–only mandated benefit that significantly expands the category of individuals with serious health conditions for whom an employee can take a leave of absence beyond what is currently included under the federal Family Medical Leave Act.
AB 2217 (Pan; D-Sacramento) Targeted Burden on Companies with Call Centers — Discourages businesses from even locating a call center in California by requiring the business to adhere to overreaching mandates. Failed passage in Assembly Labor and Employment; 04/19/2012
AB 2346 (Butler; D-Los Angeles) Increased Costs and Unreasonable Requirements — Could increase the price of food and force growers to move their crop production to other states and countries, thereby hurting California exports, by creating excessive, unnecessary new rules regarding heat illness prevention with unreasonable consequences for violations.
Expensive, Unnecessary Regulatory Burdens
AB 2424 (Portantino; D-Pasadena) New State Goals for Forestry — Increases costs of timber production by changing the state’s forestry goals to give equal consideration to each public need when reviewing forestry operations, including Timber Harvest Plans. 05/07/12 hearing in Assembly Natural Resources canceled at author's request.
SB 568 (A. Lowenthal; D-Long Beach) Polystyrene Food Container Ban — Threatens thousands of manufacturing jobs within the state by inappropriately banning all food vendors from using polystyrene foam food service containers, ignoring the numerous environmental benefits associated with polystyrene products.
Fuel Price Increases
AB 1532 (John A. Pérez; D-Los Angeles)/ AB 2404 (Fuentes; D-Los Angeles)/ SB 535 (De León; D-Los Angeles)/ SB 1572 (Pavley; D-Agoura Hills) Illegal Tax Increase — Increases energy costs, including fuel prices, on consumers and businesses by allocating funds from an illegal tax to various programs that are not necessary to cost-effectively implement the market-based trading mechanism under AB 32.
Inflated Liability Costs
AB 1208 (C. Calderon; D-Montebello) Court Inefficiency — Creates uncertainty, inefficiency and unpredictability for litigants, further aggravating California’s reputation as a bad place to do business, by decentralizing control of trial court funds.
AB 2149 (Butler; D-Los Angeles) Discourages Settlement Agreements — As introduced, inappropriately interfered in the contractual relationship between two parties by allowing the sharing of certain information contained in settlement agreements. With 04/26/12 amendments, removed from "job killer" list, but CalChamber still opposes unless amended.
SB 1528 (Steinberg; D-Sacramento) Inflates Litigation and Insurance Costs — Artificially inflates medical damage awards in personal injury cases by allowing an injured party to recover expenses never actually incurred, ultimately increasing not only legal costs, but also rates for auto, health, workers’ compensation and general liability insurance.
Early Activity on 'Job Killer' Bills in 2012
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" to be determined by 2014 and by prohibiting the sale of any private health care insurance. Failed passage in Senate.
AB 832 (Ammiano; D-San Francisco) Hidden Tax Increase
Before amendments, would have imposed a hidden tax on software with a majority vote bill by making it virtually impossible for the owner to show that the software is eligible for a property tax exemption. Amended to remove opposition and job killer status.