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Jon Fleischman

Smyth’s AB 2916 Killed In Committee

We ran a column from Assemblyman Cameron Smyth this morning on some good legislation that he had coming up in Committee.  Curious how that went?  This just in from Smyth…

This morning, I presented AB 2196 to the Assembly Committee on Jobs, Economic Development, and the Economy.  Whoever named that committee had an ironic sense of humor.

I should clarify that I actually presented the bill to three of the six members of the committee.  Those three members – Dan Logue (R-Linda), Bill Berryhill (R-Ceres), and the chair of the committee, V. Manuel Pérez (D-Coachella) – all voted in support of the bill.

The other three members of the committee – Jim Beall (D-San Jose), Marty Block (D-San Diego), and Mary Salas (D-Chula Vista) – were out of the room when I presented the bill.

Had they been there, they would have heard from representatives from the National Federation of Independent Business, California Manufacturers and Technology Association, California Taxpayers Association, and the American Council of Engineering Companies.  Each of these groups testified in support, and provided examples of how California’s regulatory climate was impacting the businesses of their members.

What they would not have heard is anyone testifying in opposition.  Not a single member of organized labor spoke in opposition to the bill.  Not one.  Even the chairman of the committee, Assemblyman Perez, noted that while he understands union concerns, AB 2196 is an important bill for economic development in California and seems to pose no direct threat to unions.  I applaud him for taking a stand.  The intent is not to roll back worker protections.  We simply want to study the costs of regulations and see how we can tweak them to minimize the impact on businesses in California.

When Assemblymembers Beall, Block and Salas returned, however, they all promptly voted against the bill.  It died, 3-3, one vote short of passage.

We have 12.6% unemployment.  The national average is 9.6%.

Small business bankruptcies rose to 81% at the end of 2009.

California ranks 32nd in the nation in competitiveness.

We are 49th in the nation on the Small Business & Entrepreneurship Council’s 2009 Small Business Survival Index.

The American Legislative Exchange Council found that California’s economic performance ranked 38th in the nation and its economic outlook ranked 46th in the nation.

AB 2196 attempted to find the reasons for our decline by focusing on the ten costliest regulations, developing alternative approaches that are less burdensome, and making recommendations on how California’s regulatory process can more effectively assess the impact on small businesses.

This was a meaningful step towards reinvigorating our economy.  For three members of the committee, however, it was a step they were unwilling to take.

Those three members who voted against AB 2196 need to look no further than the nearest mirror when they wonder why California continues to lag behind the rest of the country in economic recovery indicators.