(October 10, 2006) Governor Arnold Schwarzenegger has vetoed a California Chamber of Commerce-opposed bill that would have had a negative impact on California’s economy and competitiveness.

SB 1523 (Alarcón; D-San Fernando Valley) was a “job killer” bill that would have stifled economic development by adding an " economic impact report" to the superstore retailer approval process.

While the intent of SB 1523 was to promote market competition and economic development in communities, the practical effect of such a measure would have been the exact opposite. By requiring the approval of an economic impact report before approval of a development project that includes a superstore retailer, SB 1523 would have created a system of costly hurdles that these retailers would have had to overcome before opening a new facility in a city or county.

SB 1523 would have sent a clear message to retailers across the country that they are not welcome in California even though communities and shoppers want the option to shop at “big box” retailers and welcome the lower prices.

Limit Local Authority

In his veto message, Governor Schwarzenegger commented, “Adding a new hurdle, approval of an economic impact report prior to approval of a development project that includes such a retailer, will only limit the authority of local communities to decide what kind of retail projects they want to embrace. As is often the case, a one-size fits all approach from Sacramento will take away choices that communities have to decide whether a particular development fits their communities.”

To see the final status of all the “job killer” bills, visit www.calchamber.com/jobkillers.

Staff Contact: John Hooper