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(February 8, 2010) A proposal to require businesses to withhold 3 percent of payments to independent contractors amounts to an interest-free loan to the state from small businesses, the California Chamber of Commerce has pointed out to state leaders.

Public Affairs / Politics     

Maldo Faces Uphill Battle in Assembly
Looks like Senator Abel Maldonado, the governor's appointment for lieutenant governor, will get a hearing in front of an Assembly committee Monday -- and we're not sure they will be quite as cordial as the Senate.  A number of Democrats are indicating it will be a tough road for the Republican Senator -- we've been hearing the whispers for weeks. And they're getting louder: in addition to comments by Assembly Majority Leader Alberto Torrico to our friends over at the Sac Bee, Assemblyman Pedro Nava (yes, he's running for higher office) sent out a missive Thursday attacking Maldo's votes on issues affecting farm workers, working people, women, gays, environmental protections ... the list goes on. San Francisco Chronicle

Prop. 14 Holds Promise to Change Primaries
California voters will have the opportunity in June to replace partisan primaries with a system in which candidates of all parties will be listed on the same ballot and the top two vote-getters would advance to the general election, regardless of party. If the measure is approved, it would take effect for the 2012 elections. Congressional and state races would be conducted in much the same way that nonpartisan city, county and school district elections have been conducted in California. It would not affect presidential primary elections. The San Diego Union-Tribune

California's Outsize Problems Won't be Easy for Schwarzenegger to Solve
People in the nation's largest state are in a sour mood. They are unhappy with the economy, unhappy with what has happened to their state, unhappy with Gov. Arnold Schwarzenegger (R) and unhappy with the Democratic-controlled legislature. The recession here began earlier and went deeper than it did nationally, according to estimates. The Washington Post

Human Resources / Health & Safety 

Obama to Invite GOP to Healthcare Summit
In a high-stakes bid to revive his healthcare overhaul, President Obama announced during a pre-Super Bowl television interview that he would convene a bipartisan summit in which Republicans and Democrats would try to forge a compromise while a national TV audience watched. Republican leaders indicated they would attend the Feb. 25 gathering, but said they want to start over -- tossing out the measures that passed the Senate and House last year. Los Angeles Times

Democrats Ask, Can Health Care Bill Be Saved?
For a moment, President Obama’s pledge to keep fighting for major health care legislation got personal on Thursday night as he told supporters at a fund-raiser about a former campaign worker in St. Louis without health insurance who had died of breast cancer. Despite recent political setbacks, Mr. Obama vowed to win approval of the legislation, and his enthusiastic audience roared: “Yes, we can! Yes, we can!” The New York Times

California Cracks Down on Discount Health Plans
At a time when nearly 7 million Californians are uninsured, state regulators are trying to rein in discount health and dental plans that officials say frequently overstate benefits, offer little if any savings and promise access to doctors who aren't part of the system. Some of the discounters fraudulently market themselves as insurance, while preying on the poor, the elderly and others who urgently need care, officials say. Los Angeles Times

New Workers’ Comp Assessment: State Officials Explain
The California Chamber of Commerce conducted an interview with California Department of Industrial Relations (DIR) Director John Duncan, and DIR Chief Financial Officer Greg Edwards on Thursday, December 17, to educate businesses about the increase in the Workers’ Compensation Premium Assessment (WCPA) for the year.

Economy 

States Try to Tax More Services as Coffers Deflate
Will plumbers, lawyers and hot-air balloon operators be forced to pitch in to solve state and local government revenue shortfalls? Sales taxes today mainly, though not exclusively, hit sales of tangible goods like cars and couches. Faced with the worst budget crisis in a generation, many states are looking to expand sales taxes to services, such as lawn care or accountants' advice. The goal, legislators say, is to broaden the tax base to cover a broader swath of the economy as traditional sources of tax revenue decline. Kyla Christoffersen, a policy advocate for the California Chamber of Commerce, said her organization opposed the idea for a number of reasons including potential harm to smaller businesses like dry cleaners. "These small businesses are trying to sell their services and they are going to essentially have to tell their consumers now the prices have increased," she said. The Wall Street Journal

Silicon Valley Companies Look to Hire
From global tech giants to tiny solar startups, some of Silicon Valley's hottest companies are dusting off their "Help Wanted" signs as they gear up for a return to growth. But the hiring may occur gradually, and some of those jobs will be spread around the world. With the valley's unemployment rate currently hovering at a staggering 11.5 percent, experts caution it may take a year or longer before the local employment market can be pronounced healthy again. San Jose Mercury News

Job Front: Online Job Ads Continue to Rise
In a week that saw the percentage of the nation's jobless dip below 10 percent, two reports show online job demand continuing to rise in January. The reports, from the Conference Board Help Wanted OnLine and online job board Indeed.com, are encouraging because the increases have come early in the year when employers typically pull back on want ads. The Sacramento Bee

Environment/Agriculture  

Earth, Wind and Wire: Going Beyond Solar Panels
Not long ago, people who wanted to generate their own green energy at home had to content themselves with rooftop solar panels. But new technologies -- and hefty government subsidies -- are now allowing homeowners to tap the wind, the Earth and other renewable sources in their own backyards. Los Angeles Times

Statement by Laura King Moon Assistant General Manager Regarding Temporary Lift of Pumping Restrictions in Delta
Public water agencies welcomed the federal court’s decision today to temporarily lift pumping restrictions on the water projects given their very minimal impact on the salmon and the much-needed opportunity to capture and store increased water supplies generated by our recent storms. While it is only a 14-day pause from the restrictions, it demonstrates a necessary desire to balance the needs of the environment, people and our economy. Prior to the judge’s decision, water agencies had lost more than 90,000 acre-feet of potential water supplies in a single week. State Water Contractors

Solar Manufacturing Company to Bring 150 Jobs to McClellan
A South Korean company will bring 150 solar-manufacturing jobs to McClellan Business Park after opening its first North American production facility this September, the Sacramento Area Commerce and Trade Organization announced Friday. N Solar Inc., a new U.S. subsidiary of Seoul-based Millinet, signed a lease for 128,000 square feet at the business park, SACTO officials announced jointly with McLellan Park and Sacramento County. The Sacramento Bee

Effort Underway to Suspend California's Global-Warming Law
Republican politicians and conservative activists are launching a ballot campaign to suspend California's landmark global-warming law, in what they hope will serve as a showcase for a national backlash against climate regulations. Supporters say they have "solid commitments" of nearly $600,000 to pay signature gatherers for a November initiative aimed at delaying curbs on the greenhouse gas emissions of power plants and factories until the state's unemployment rate drops. Los Angeles Times

International

Obama Starts New Push on Trade
The Obama administration is reaching out to business-friendly Democrats to win support for free-trade policies that divide the party. The effort is part of President Barack Obama's push on trade that was launched with his State of the Union address. Obama said he wanted to double exports over the next five years as part of an effort to grow the U.S. economy. The Hill

Asia Sails Smoothly Through Debt Waters
While rising government debt is a growing concern in Europe and the United States, Asia’s economies remain remarkably resilient, even buoyant, underscoring how economic might is shifting from West to East. China has been repaying some of what little foreign debt it owes, even as economists wonder whether Greece will require an international bailout and ask how long the United States can sustain record budget deficits. The New York Times

Yanukovych Leads in Ukraine Poll
Opposition leader Viktor Yanukovych won Ukraine's presidential election, near-complete returns showed Monday, although his opponent shows no sign of conceding defeat. Mr. Yanukovych polled 48.66% of the ballots cast Sunday, to 45.75% for Prime Minister Yulia Tymoshenko. Mr. Yanukovych proclaimed victory, but Ms. Tymoshenko avoided comment Monday. Her next move remains unclear, indicating Ukraine could be in for a protracted struggle in the courts. Before the election she had threatened to call supporters onto the streets if there was evidence of fraud. The Wall Street Journal

California Coalition for Free Trade
The CalChamber Council for International Trade (CIT) is urging the business community to join its coalition working to secure congressional approval of U.S. Free Trade Agreements (FTAs). There is no cost to join the coalition, which will keep members apprised of its activities and how to be supportive of the FTAs. For more information on the FTAs or to join the coalition, visit
www.calchamber.com/international

Infrastructure / Education

For UC's Commission on the Future, Nothing is Off the Table
Why not abolish student fees at the University of California? And in exchange, how about requiring graduates to pay the university a percentage of their income for a while after college? That may sound outlandish at a time when UC is substantially hiking student fees and the state budget crisis has left the 10-campus system strapped for cash. Los Angeles Times

With Federal Stimulus Money Gone, Many Schools Face Budget Gaps
Federal stimulus money has helped avoid drastic cuts at public schools in most parts of the nation, at least so far. But with the federal money running out, many of the nation’s schools are approaching what officials are calling a “funding cliff.” Congress included about $100 billion for education in the stimulus law last year to cushion the recession’s impact on schools and to help fuel an economic recovery. The New York Times

Bullet Train Ridership Numbers Don't Add Up, Watchdog Says
California officials' rosy ridership forecasts for the state's planned $45 billion high-speed rail system have been based on previously undisclosed statistical assumptions that differ from those published for peer and public review, newly released documents obtained by The Daily News show. The discrepancy raises questions about the validity of the forecasts, which the state has relied on for everything from its selection of the rail line's route to its applications for billions in federal stimulus dollars. San Jose Mercury News

Supporting port infrastructure investment
The CalTrade Coalition supports port infrastructure investment, intermodal congestion relief and the construction, longshore, trucking, warehousing and logistics jobs that go with it.  

Opinion / Editorial 

Democratic Climate Revolt
The Obama Administration has been moving full-speed ahead on anticarbon regulation, never mind waiting for Congress to pass a bill. But now opposition is building among senior Democrats, with two powerful committee Chairmen introducing a bill last week to bar the Environmental Protection Agency from declaring that carbon is a dangerous pollutant. The Wall Street Journal

Obstructionists Must Step Aside
Will the obstructionism never end? When the California Coastal Commission meets next week in Oceanside, opponents of a planned desalination plant in Carlsbad will fire another volley in their seemingly interminable guerrilla war against a facility that could be converting seawater into 50 million gallons a day of potable water by 2012. That’s enough to serve the needs of more than 100,000 typical households. The San Diego Union-Tribune

India Gives Cold Shoulder to Global Warming Zealots
The rush to impose Draconian, costly regulations to fight global warming is based on allegedly "settled science" showing manmade greenhouse gases increase temperatures. This belief system's high priests at the U.N.'s Intergovernmental Panel on Climate Change have issued successive reports trumpeting the danger, concluding that we must act immediately. But the science never was settled. There have been increasing contrary findings, and revelations that warming zealots may have rigged the data, suppressed dissenting views and committed grand blunders to advance their agenda. The Orange County Register

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