(June 4, 2012) A number of California Chamber of Commerce-opposed “job killer” bills are likely dead for the year, having missed the legislative deadline to pass the house in which they were introduced.
The following “job killer” bills failed to pass their house of origin:
Barriers to Economic Recovery
- 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 — Originally increased the cost of development and created project delays by requiring that general plans incorporate concepts related to healthy food access and urban agriculture. With 05/17/12 amendments, no longer a “job killer.” CalChamber still opposes.
- 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. Refused passage; Assembly Floor, 05/31/12.
- 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. In Senate Governance and Finance Committee; 04/27/12 – Failed deadline.
Costly Workplace Mandates
- 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. Held on the Assembly Appropriations Suspense File; 05/25/12.
- 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 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.
Expensive, Unnecessary Regulatory Burdens
- AB 2424 (Portantino; D-La Cañada Flintridge) 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.
Fuel Price Increases
- AB 2404 (Fuentes; D-Los Angeles) 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. Held on the Assembly Appropriations Suspense File; 05/25/12.
New Job Killer Bill Identified
SB 491 (Evans; D-Santa Rosa) Anti-Arbitration Legislation — Creates uncertainty for businesses regarding the enforceability of arbitration agreements, and dramatically increases litigation costs by encouraging more class actions and pushing more cases into the courts.
SB 491 will be heard in the Senate Judiciary Committee; no hearing date set.