As Californians await probably one of the most anticipated elections in many years on Nov. 2, business interests are watching a number of state measures closely in addition to the neck and neck presidential race. As for the Bush-Kerry contest, Raphael Sonenshein, professor of political science at California State University Fullerton said that while the business community as a whole will tend to vote Republican, there would be advantages for the entire state should John Kerry be elected as president. “If the Democrats win, there is most likely going to be greater resources for California since it will be the state that voted for a winner,” Sonenshein said. “Things like homeland security funds have largely been allocated seemingly on partisan grounds.” For these reasons, Sonenshein said that Gov. Schwarzenegger could find himself getting along with a Democratic administration very well, because of a probable increase in spending on domestic programs. Kerry has said that, if elected, he would increase funding resources for education, healthcare, homeland security programs, all of which would be welcome news in cash-strapped Sacramento. With most polls showing California will lean heavily Democratic in the election, many Democratic groups have begun to lend support to nearby swing states by continuing to contact local voters and walk precincts to drum up support for John Kerry. The Democratic Party of the Valley is sending some of its volunteers to work elsewhere in the Southwest United States. “We have volunteers who are physically going to Arizona and Nevada, doing phone calls and precinct walking there,” said Agi Kessler, assistant campaign office manager of the group. “They’re also calling and writing to other swing states like Ohio.” Senator Barbara Boxer is also running for re-election in her U.S. Senate seat, but polls have consistently shown her to be well ahead of her challengers. Aside from the presidential election, business advocates are concentrating on three measures on the November ballot. -Proposition 72 would require that all employers with at least 50 workers either provide health care for their workers or pay into a state healthcare fund. -Proposition 67 would place a three percent telephone surcharge on both businesses and residences to fund emergency room operations. -Proposition 64, which is supported by businesses, would place limits on lawsuits that can be filed against companies alleging unfair business practices. George Kiefer, chairman of the board of directors of the L.A. Area Chamber of Commerce, said the group has taken a position on a number of those propositions. Kiefer warned that the upcoming election is crucial in showing whether or not California supports business development. “If (the propositions) all went against business, what business is recommending, it would be bad in two ways,” Kiefer said. “First of all, we’d miss an opportunity for appropriate reform, secondly, we’d send a signal that we’re not interested in promoting business.” “Over a number of years, California has become, in an unintended way, a difficult place to create new jobs and do business,” he said. “We’ve passed legislation that seems good on its face, but it’s created all sorts of regulatory hurdles and costs.” Placing a burden In particular, Kiefer said that Propositions 72 would only add to those costs. “We would want that to be defeated,” Kiefer said. “This puts too much of a burden on small businesses.” Martin Cooper, chair of the Valley Industry and Commerce Association, said the group’s membership of over 90 companies voted unanimously to oppose proposition 72, as well. “This is going to wind up hurting the very people it’s designed to help,” he said. Cooper said that a number of companies will either have to reduce their staffs or cancel plans to grow because of added costs. Julio Perez, a policy analyst at the Los Angeles Alliance for a New Economy, said that voting against Proposition 72 will leave an unfair burden on California’s taxpayers, however. “Thirteen to 30 percent of healthcare costs are offsetting the uninsured, and right now the taxpayer is paying for all of that,” Perez said. “Many businesses should be paying some part of that and lifting the burden from the taxpayer.” Fewer uninsured? Perez said that the state currently pays over $4 billion a year for emergency room visits by uninsured people.” According to Perez, Proposition 72 could reduce the state’s uninsured population from 6 million people to five million. Perez said that the Proposition is aimed at businesses like restaurants and retailers, not larger companies that typically provide health coverage for their employees already. Kiefer said the chamber is backing Proposition 64, which would limit lawsuits that can be filed against companies alleging unfair business practices. “There’s been a growing viewpoint that some laws. . .have been used to extort particularly small businesses,” said Kiefer. “The way (the laws) are drafted, you don’t have to show damages, you just have to file a claim.” Proposition 64, if passed, would allow lawsuits only if there was an actual loss suffered. Cooper said that VICA is also supporting Proposition 64, mainly to offer protection for businesses that are threatened with lawsuits by unethical law firms without actual claims of unfair practices. Kiefer said that the attorney general’s office has already begun cracking down on law firms that file excessive claims. The chamber is also opposing Proposition 67, the measure that would levy a phone tax to pay for emergency room services. “Taxing one industry to support another is something we philosophically oppose,” said Kiefer. While he thinks that California has a long way to go to make itself more business friendly, if businesses could get their way on these propositions come election day, it could go a long way in repairing the state’s image. “This is part of the puzzle,” Kiefer said. “But not the whole puzzle.” Issues at a Glance Proposition 64 -Limits individual’s right to sue by allowing private enforcement of unfair business competition laws only if that individual was actually injured by, and suffered financial/property loss because of, an unfair business practice. Proposition 67 -Provides funding to physicians for uncompensated emergency care, hospitals for emergency services, community clinics for uncompensated care, emergency personnel training/equipment, and emergency telephone system improvements. Proposition 72 -Provides for individual and dependent health care coverage for employees, as specified, working for large and medium employers.
