(June 3, 2010) The California Chamber of Commerce Board of Directors recently took positions on two proposed initiatives:  The “Regulate, Control and Tax Cannabis Act of 2010” and “The Local Taxpayer, Public Safety and Transportation Protection Act.”  

Regulate, Control and Tax Cannabis Act of 2010 -- OPPOSE

This proposed initiative would allow individuals 21 years or older to possess, cultivate, or transport marijuana for personal use. The measure would permit local governments to regulate marijuana and, proponents believe, to tax its commercial production and sale. If passed, this initiative would create a different, higher standard for employers to be able to discipline employees who use marijuana while at work than for those employees who use alcohol. Current law allows employers to discipline employees who are “under the influence” of drugs or alcohol. This proposal would create a separate and higher standard for marijuana use to a level that requires the employer to prove that the employee is “actually impaired” from performing his or her job duties as a result of drug use.  This change in the law would undercut the ability of California employers to enforce drug free workplaces. 

The CalChamber Board of Directors voted to oppose the “Regulate, Control and Tax Cannabis Act of 2010” because it would drive up costs and significantly undermine the ability of employers to protect the safety of all employees in the workplace. If this measure were approved, employers, including the State of California, would be faced with the burden of proving that an employee who tests positive for marijuana is “actually impaired” from performing the job before taking any adverse action against the employee. This process would delay disciplinary actions used to protect workplace safety and drive up costs due to increased litigation. 

In addition, the CalChamber Board voted to oppose the Cannabis Act because it threatens state and federal contracts and grants. If passed, this initiative could result in employers losing public contracts and grants because they could no longer effectively enforce the drug-free workplace requirements outlined by the federal government. 

“This initiative has dangerous implications and puts the safety of workers in jeopardy,” said Allan Zaremberg, President and CEO of the California Chamber of Commerce. “If this measure passes, California’s employers would not only face higher costs but they would be put in the difficult position of having to protect the rights of some employees while allowing other employees to be put in harm’s way.”  

The Local Taxpayer, Public Safety and Transportation Protection Act -- SUPPORT

This proposed initiative would revoke the state’s ability to borrow from local government property tax funds currently authorized by Proposition 1A of 2004 and prohibit the state from borrowing Proposition 42 funds (gas tax) which voters have dedicated to transportation and mass transit. 

In addition, the measure would further prevent the state from redirecting or borrowing from sources of other funds established to pay for public transit and transportation projects. 

The CalChamber Board of Directors voted to support the “Local Taxpayer, Public Safety and Transportation Protection Act” because it would protect investments in transportation projects that help generate economic activity and create jobs and because it would keep the state from relying on short-term borrowing to fund continued deficit spending. 

“For every $1 billion invested in highway construction, we get about $5 billion in economic activity,” said Zaremberg.  “We must protect funds set aside to fix the roads and highway that are used to transport goods and our workers to and from their jobs.  Further, the constant borrowing from these funds puts pressure on local governments to raise taxes on business which will kill more jobs and only serve to create even more budget chaos.” 

Staff Contact: Denise Davis