Policy Positions - Economic Growth and Development

Adopted May, 2005

 

Public Agency and State Budgets

One of the most critical elements to returning the state and local agencies to sound budget condition is a healthy economy. Lawmakers should ensure that California is as attractive a state to businesses as possible. Increased economic activity will provide lawmakers with an increased revenue stream, which can be matched with reductions in state and local spending and commitments to reduce the state deficit over the long-term and prevent local agency deficits in the future. Increasing taxes and fees does not necessarily result in increased revenues and can only exacerbate the growing dependence on volatile sources of revenues and the tremendous burden placed on high income earners and businesses.

Worker’s Compensation
Workers’ compensation coverage is legally required of every employer in California regardless of size or type of business.  While 2005 saw some progress in addressing some of the flaws in the system that put harsh burdens on business in California, much still needs to be done.

Chamber supports these reforms:

Permanent partial disability regulations must reduce costs. Medical regulations must reduce costs and provide quality care. The system must be fraud-free. Employer responsibilities and liability must be clear. Employees must be healed, compensated for their loss and returned to work. Litigation must be kept to a minimum.

The Chamber opposes repealing the reforms of SB 899.

Infrastructure
California’s population continues to grow at a rapid pace, while funding for the infrastructure necessary to accommodate this growth is inadequate. California is home to nearly 36 million people, and its population is expected to grow to 48.5 million by 2020. Much of California’s infrastructure was built in the 1960s, and unless the state reinvests in its infrastructure, its economic growth will be hindered.  The Sacramento region and Elk Grove face the same challenges.

Housing
Chamber of Commerce supports these reforms:

● Examining state and local roles in planning for new home construction.
● Reforming CEQA to remove obstacles to home construction.
● Increasing liability protections for urban infill projects.
● Legislation and/or regulation that encourages use of ‘cure period and/or exhaustion of other remedies, such as notification, prior to filing of lawsuits.  [and wording on ADA compliance  below]
● Ensuring that new homebuyers pay their fair share of infrastructure costs.

The Chamber opposes:

● Increasing home prices to subsidize low-income housing through inclusionary zoning. ● Statewide “smart growth” initiatives that halt growth and increase home prices.

Transportation:
The Chamber supports development of major transportation corridors to route traffic in, around and through area the Elk Grove area that:

Are adequate to handle business/industrial needs  Provide good access and egress Provide regional access Tie business centers within Elk Grove and between Elk Grove and neighboring business centers; and Connect I-99 and Hwy 5 on north and south and a connector between Hwy 99 and Hwy 50

Homebuyers and residents should pay their fair share of infrastructure costs, so that business is not unduly burdened.

Health Care:
Rising costs demand a search for viable options and long-term solutions to the current cost of health care.  On average, employers spend more than $300 billion annually on health insurance for employees, dependents and retirees, the Society for Human Resource Management research quarterly reports.

The Chamber supports:

Legislation to allow employers to offer a minimum benefit plan, which would allow small employers and their employees to buy health care coverage at a more affordable price than current health benefit plans, which cover a wide array of health services.  A moratorium on benefit mandates.  Streamlining government regulations to increase efficiency and reduce overall administrative burdens. Increased state funding on Medicare and Medicaid reimbursements to providers of health care and fight future attempts to further cut current reimbursement rates. Wellness and disease management education programs as a way to encourage healthier living in an effort to reduce the burden on the strained health care system.  A temporary moratorium on unfunded mandates on hospitals. Reform at the federal level to help lower the cost of insurance for health care providers and fighting attempts by trial lawyers in California to alter the Medical Injury Compensation Reform Act (MICRA), which caps non-economic damage awards against California’s doctors and has helped keep malpractice insurance premiums lower in California, thereby helping sustain a sufficient doctor-to-patient ratio.

 Unemployment Insurance:
The California system still results in high costs for business and needs cost-saving, structural reforms to assure solvency, sufficient funds for benefits California’s unemployment insurance (UI) system urgently needs both cost-saving and structural reforms to assure solvency and ensure there are sufficient funds to pay benefits to unemployed workers.

The Chamber firmly believes that the Legislature must act expeditiously to pass legislation that addresses the UI Trust Fund’s solvency crisis, and to promote an agenda that further stimulates the economy and puts more Californians back to work. The Chamber supports structural reforms to the UI system to help offset higher employer UI taxes caused by the recent enactment of multi-year UI benefit increases.

Workplace Improvement:
Simplifying state workplace rules and laws can help employers and employees. California employers comply with the most stringent and complex labor laws in the nation and face some of the highest fines and penalties when they fail to do so. As a result, employers are calling for simplification in workplace rules and laws.

The Chamber supports sensible changes in state labor laws and regulations aimed at making workplace requirements easier to administer. Chamber supported changes include plain, simple language for workplace rules; creating pay practices for the 21st century; simplifying meal and rest period rules; and a four-day workweek to provide individual workers more flexibility and employers the ability to be more responsive to employee work/life needs. The Chamber supports legislation and administrative reforms that will effect positive changes in workplace compliance and administration.

The chamber supports reforms that will provide notice to business of possible violations of ADA rules prior to instigation of law suit and elimination of the “bounty-hunter” provisions which encourage laws suits strictly for personal gain.

Many businesses have worked diligently to ensure that their place of business is ADA compliant, but violations are easy to allege.  And, even if only one out of many alleged violations is found to be accurate, the law’s provision of strict liability for businesses means that they face their own defense costs, and also damages, plaintiff’s lawyer’s fees and costs as well.

We support looking for ways to help businesses avoid ADA-triggered lawsuits.  One way this can be accomplished is to create a process where businesses have the opportunity to make a good faith effort to correct an alleged ADA violation before becoming the subject of a lawsuit.  Another way is an “across the board” approach, such as a licensed "access specialist" that includes the disabled community, businesses, builders, contractors and inspectors to work out the needs of all concerned to effectively and fairly apply the goals of the ADA.