Sunday, February 25 , 2018, 5:49 pm | Fair 59º



Survey of California’s Regulations, Competitiveness Shows Rising Alarm from Business

Early conclusions show state's future growth at risk without regulatory reform

A coalition of industries and employers fighting for a competitive California and a smarter regulatory environment have released the first round of results from a survey to understand how companies feel about the regulatory climate in California.

More than 400 companies have answered the survey. Of those, 84 percent said they would not consider locating a new business here if they were not already in California and 72 percent said they did not have formal plans to grow in the state by more than 10 percent in the next five years.

Two findings are becoming clear:

» Existing and future regulations will have a major negative impact on job creation.

» Favorable attributes of California don’t outweigh the negative regulatory climate.

“We are disappointed that the California state government does not systematically research the impact of regulations on the economy,” said Jack Stewart, president of the California Manufacturers & Technology Association. “The insights could support a strategy for regulatory reform to encourage new investment and job growth.”

The coalition is releasing the first round of results to inform a legislative hearing on bills to develop a smarter rule-making and review process. The bills capture different policies for independent economic impact analysis, sunset reviews and regulatory triggers.

“We have got to get this under control,” said John Kabateck, executive director of the National Federation of Independent Business/California. “Regulations can affect entrepreneurs and small business more than large companies. We must find ways to protect the public that also let small businesses grow and create jobs.”

Key survey results include:

» 84 percent said they would not consider locating a new business in California, if they were not already here.

» 72 percent said they did not have plans to grow in California by more than 10 percent in the next five years.

» 80 percent said California’s attributes will not, or might not, encourage them to make new investments in the state.

» 50 percent said the possibility of future California laws or regulations discourage them from retaining/adding employees or making new investments.

The coalition is asking all California employers to take five minutes to answer the survey. Click here to participate.

— Gino DiCaro is vice president of communications for the California Manufacturers & Technology Association.

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