MARCH 2004
URGENT ACTION NEEDED BY BUSINESS OWNERS, MANAGERS AND EMPLOYEES
CONTACT THE GOVERNOR AND URGE HIM TO VETO SB 2

Senate Bill 2, the mandatory health insurance bill - Chamber opposes

Under SB 2,  California businesses and their employees will be mandated to pay more than $7 billion in new health care taxes.  The bill institutes a “play or pay” health care system, mandating that employers either cover 80 percent of their employees’ health care costs, or pay into a state-run health care plan. Employers with more than 200 employees also must cover dependents.

Currently, the bill exempts employers with fewer than 50 employees, although employers with 20-49 employees will be included under SB 2 if future legislation creating a tax credit is passed.  SB 2 is a barrier to job creation and attraction in California. It establishes a competitive disadvantage for California employers and will serve as a disincentive for businesses to locate to California.  In addition, there are legal questions as to whether the bill is pre-empted by federal law — the Employee Retirement Income Security Act (ERISA).

Governor Davis has not yet signaled whether he will sign or veto SB 2. Please urge him to veto this “job killer.” Express your concern over the impact SB 2 would have on your business and the economy.

CONTACT YOUR LEGISLATOR

Many bills are moving through the California Legislature that will impact our business.  From time to time, the chamber will be notifying chamber members of action needed to influence the outcome of the debates.  Click here to identify your representatives in the Assembly and Senate