CalChamber Identifies Three More Job Killer Bills

April 16, 2018

The California Chamber of Commerce this week added three more bills to its job killer list, bringing the total number of job killers to 24.

The new additions to the list are:

• AB 2447 (Reyes; D-Grand Terrace): This bill would force state entities to weigh discrimination factors when deciding whether to certify an environmental impact report for a project.

CalChamber has identified this as a job killer because it invites more litigation from project opponents, who will exploit the subjective nature of any finding that a person is being discriminated against, to kill projects they do not like or want, thus increasing the complexity and cost of complying with the California Environmental Quality Act (CEQA).

According to CalChamber’s letter, at a time when California is already experiencing unprecedented CEQA litigation and delays in the construction of much-needed housing and other land use projects, a bill attracting more CEQA abuse is the last thing Californians need.

AB 2447 is scheduled to be heard in Assembly Natural Resources Committee on April 16.

• AB 2560 (Thurmond; D-Richmond): If passed, this bill would impose a tax of up to 10% on contractors for the privilege of doing business with the state Department of Corrections and Rehabilitation to fund preschool and after school programs.

CalChamber has identified this as a job killer because the unduly burdensome tax structure built into contracting with the Department of Corrections will ultimately result in a loss to the state of qualified and competitive bidders, as well as a loss of business to the vendors that the state has come to rely on as quality and dependable.

AB 2560 is scheduled to be heard in the Assembly Revenue and Taxation Committee on April 16.

• AB 3087 (Kalra; D-San Jose): The measure would create the California Health Care Cost, Quality, and Equity Commission, a new state agency, to control in-state health care costs and set the amounts accepted as payment by health plans, hospitals, physicians, physician groups, and other health care providers.

Because the bill interferes with an employer’s ability to negotiate for benefit designs and costs for its employees, interferes with Covered California’s ability to negotiate with insurers, reduces access to care, adds another layer of bureaucracy, and adds a new health care cost called “witness fees,” CalChamber has tagged this as a job killer.

According to CalChamber’s bill letter, AB 3087 fails to take into account the major causes of rising medical care costs. Simply capping the rates will not make the costs in the health care system disappear, but instead will limit choices, access, and in the long term, increase costs for employers and their employees.

The Assembly Health Committee is scheduled to consider AB 3087 on April 24.

Action Needed

The CalChamber is encouraging members to contact their representatives in the Assembly, as well as members of the committees where the job killer bills will be considered, and urge them to oppose AB 2447, AB 2560 and AB 3087.

Last modified: April 16, 2018

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