It’s no secret that California has one of the most unfriendly business climates in the nation. The state continues to rank as one of the worst to do business in, with the highest cost of living, and the least-friendly policies for business growth. Between 2009 and 2016, an estimated 13,000 businesses left California, and another 1,800 have fled to fairer business climates since 2016.
In the wake of the Coronavirus pandemic, the state is facing a $54 billion deficit and businesses have been devastated by the economic shutdown. Democrat leaders in Sacramento have touted that they support small business and want to help them recover, but then they turn around and pass $9.2 billion in new taxes on businesses.
In addition to billions of dollars in new taxes, Democrats in Sacramento forced through the following list of bills that will make it harder to do business in California:
AB 85 (Budget): Major tax increases on businesses over the next three years to the tune of $9.2 billion.
AB 685 (Reyes): Expands Cal/OSHA authority, allowing them to close businesses they determine expose workers to the risk of COVID-19, and mandates unreasonable notifications during COVID-19.
AB 1066 (Gonzalez): Mandates 10-day employer response to EDD requests for UI contributions (for AB 5 misclassifications, etc.)
SB 1383 (Jackson): Mandates that all small businesses with 5 or more employees must provide 12 weeks of paid leave to employees and potentially doubles the leave entitlement to 24 weeks for employers with 50 or more employees.
AB 3336 (Carrillo): Imposes new burdens and red-tape on people trying to make a living in the "gig" economy by requiring individuals who deliver ready-to-eat food for a third-party food delivery system (Grubhub, UberEats, Postmates, etc.) to encase food in tamper-evident containers, maintain certain temperatures during delivery, and be subject to specified delivery timelines.
AB 1788 (Bloom): Bans the use of second generation anti-rodenticides (used to control pests) in many applications statewide, at least temporarily.
AB 2037 (Wicks): Increases notification time-periods for hospitals that plan to close or reduce/eliminate/relocate emergency medical services or supplemental services.
AB 2118 (Kalra): Increases reporting requirements on health care service plans and health insurers related to the individual and small group markets.
AB 2231(Kalra): Prevailing wage expansion for private projects, including multifamily housing.
AB 2362 (Muratsuchi): Provides for civil fines of $1,000 to $3,000 for firearms dealers for regulatory violations.
AB 2782 (Stone): Imposes new conditions on mobile home parks who wish to close, including extending the length of notice provided to tenants of a closure and compensating tenants for the market value of their homes if the tenants cannot relocate to another park. Also allows long term leases to be subject to rent control.
AB 3216 (Kalra & Gonzalez): Creates a “right to recall” for some workers laid off due to a state of emergency, and enacts “worker retention” mandates on some companies changing ownership, creating administrative burdens and liability for businesses.
I will continue to oppose costly regulations and tax increases on our business community as we work towards economic recovery from the COVID-19 pandemic. I cannot say the same for my Democrat colleagues in Sacramento who say one thing, and vote another.
Please reach out to our office if you need any assistance.
Assemblywoman Megan Dahle
280 Hemsted Drive, Suite 110
Redding, CA 96002