Press Release(s)

California regulatory and competitiveness survey shows we need to get smarter

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

 April 8, 2011 Sacramento, CA -- A coalition of industries and employers fighting for a competitive California and a smarter regulatory environment released the first round of results this week from a survey to understand how companies feel about the regulatory climate in California.

More than 400 companies have answered the survey. Of those 400, 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:

1. Existing and future regulations will have a major negative impact on job creation, and
2. Favorable attributes of California donít 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 CMTA president Jack M. Stewart. 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 NFIB/California executive director John Kabateck. "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% said they would not consider locating a new business here, if they were not already here.
72% said they did not have plans to grow in California by more than 10% in the next five years.
80% said California's attributes will not, or might not, encourage them to make new investments in the state.
50% 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.

Link to survey:

Download key results: http://www.calrecovery/key_results.pdf

See overall results (two parts)
  • Manufacturers, construction, restaurants, etc. (257)
  • NFIB (159)

Regulatory process reform bills being heard on Tuesday, April 12 in Senate GO hearing:

  • SB 396 (Huff) Analysis on existing regs and 5-year reviews on regs going forward | Letter
  • SB 400 (Dutton) Cost and job impact analysis on regs | Letter
  • SB 401 (Fuller) 5- year expiration date on new regs | Letter
  • SB 553 (Fuller) Extend effective date for regs from 30 to 180 days | Letter
  • SB 560 (Wright) Alternatives for compliance | Letter
  • SB 688 (Wright) Delay dates for major regulations to allow time for review | Letter

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