Another wave of pro-business legislation looming.

Sacramento likely to focus on health care, taxes in '94

Pro-business legislation had a banner year in 1993, and many legislative experts said they expect another such year in 1994.

Nonetheless, small-business groups are anticipating some big legislative battles in Sacramento during 1994, especially regarding health care reform.

Small-business advocates said they fear health care reform proposals may place an unfair burden on owners of small businesses, especially if those reforms require employers to provide health care for all employees.

The National Federation of Independent Businesses is one small-business advocacy group that expects to be actively opposing state legislation requiring small businesses to cover the cost of employees' health care, according to the group's Assistant State Director Shirley Knight. In that fight, the small-business advocacy group plans to take on both the health care industry and big business.

The group stated that it will support any legislation that would place limits on health care costs, and that stance will likely pit the group against the powerful California medical establishment. Legislation that would reduce the high cost of health care is especially important right now because employers are struggling to survive the recession, said Knight.

Knight and other small-business advocates also expressed hope that any health care reform legislation would contain special exemptions for companies that simply could not afford health insurance for employees. "Many simply do not have the advantages that larger companies do," said Knight. "It is not that small businesses would not like to cover the health care costs of their employees; it is just that many do not have the resources."

The National Federation of Independent Businesses also plans to push for legislation in 1994 that would require certain high-income individuals to purchase their own health care.

What is at stake in health care reform extends far beyond the health of California citizens. It threatens to undermine the growth of the California economy, Knight said. "It is just not going to help the California economy to make small businesses carry this burden," she asserted.

During Sacramento's last legislative session, significant workers' compensation legislation was passed. However, many small-business experts said they expect to see more workers' comp reform in the year to come. Knight said that any flaws in the new workers' compensation legislation, which went into effect July 1, should be apparent by the time the next session convenes on Jan. 3, 1994. "You should probably see some spot bills that address problems in the earlier legislation," she said.

Likewise, Robert Turner, executive director of the Black Business Association, said that this year's reforms, though a step in the right direction, are probably not sufficient to address employers' concerns about workers' compensation.

Additionally, Turner said he anticipates the validity of certain claims, such as stress claims, to be debated in the state Legislature in 1994. "Part of the (problem with) workers' comp is the number of claims," said Turner. "We have to get a handle on the claims and what constitutes a valid claim."

John Rooney, president of the Los Angeles Business Development Corp., a non-profit small business assistance company, said that more tax legislation aimed at promoting small business may be coming down the pike next year. Last year's tax legislation was indicative of the state's effort "to be more business friendly and to create more jobs," said Rooney. "I think that pro-business mood prevails in Sacramento and we may see more."

In Los Angeles, small-business groups are hoping to get a helping hand from the Mayor's Office of Economic Development. Many small-business sources recalled Mayor Richard Riordan's campaign promise to streamline the permitting process for businesses in the city of Los Angeles. Sources said they are looking for changes in that process to come out of Riordan's office in 1994.

Riordan spokesman Tom Kruesopon said Deputy Mayor Al Villalobos' office is hard at work on streamlining the business permitting and licensing processes. As of press time, no substantial changes have been made. But one streamlining idea being studied is establishment of a one-stop permitting office.