Californians against government-run health care gears up for busy fall: a guide to getting involved: the referendum on California bill SB 2, which will appear on the November ballot, will be designated as "Proposition 72." IFA opposes Proposition 72 and urges all California members of the association to vote against it.

Traditionally, fall campaigns kick into high gear right after Labor Day. The effort to overturn California Proposition 72, formerly SB 2, is no different.

Over the summer, California voters began to learn more about the potential catastrophic consequences of Proposition 72 (SB 2), the mandatory healthcare tax law that was signed by Governor Gray Davis just days before he was recalled from office. Thanks to an aggressive grassroots and earned-media (news coverage) campaign this fall, however, more and more Californians are learning that Prop. 72 is a $7 billion tax to fund a government-run healthcare program. As a result, support for the mandate continues to drop, but the business community must increase its activity this fall in support of the "No on Prop. 72" campaign to insure a November victory.

Moreover, there is a real danger that if Prop. 72 is not defeated, other states could jump into the fray with similar legislation next year. In fact, U.S. Sen. Ted Kennedy has called SB 2 a "model for the nation," which is frightening considering its enormous costs will likely lead to fewer jobs and fewer people with health insurance.

This is an important time for International Franchise Association members to get involved with the No on Prop. 72 campaign, if not already engaged. The campaign's professional staff has developed a strategy that will use small-business owners in California to deliver key message points about Prop. 72 to the voters--right up until Election Day. These opportunities include fundraising, media relations, and grassroots activities. All of these will be required to overcome the millions of dollars that Prop. 72 proponents, including labor unions, will spent to try to win in November.

Prop. 72: What it Does and How it Does it

Prop. 72 would force employers to pay an estimated $7 billion in taxes to fund a massive new state bureaucracy that would provide health benefits. It does this by requiring employers with 20 or more California employees to pay for at least 80 percent of their workers' health care premiums. Workers, whether or not they want or need this coverage, would pay an additional $1.7 billion out of their paychecks. The franchising community, which employs more than a million workers in California at 80,000 businesses, would be hit particularly hard by this tax.

Under Prop. 72, a new bureaucratic board would establish a state-sponsored health plan that would be funded largely by taxes paid by employers and employees. The employee would be required to participate with the state health plan unless his or her employer chooses to provide private insurance. In addition, the proposition requires every worker employed for 100 hours per month for three months to be covered, so even seasonal or part-time employers would be required to pay under this plan.

Prop. 72 will also affect employers and employees who already provide health care. The proposition gives the bureaucratic board the authority to establish benefits mandates for employer-sponsored insurance, which may differ from the benefits provided under the employer's current plan. In such a situation, the employer would be forced to decide between continuing with its private insurance offering or paying the state health tax to provide employees with government sponsored health care. In fact, many employees, who are perfectly happy with their current employer-provided insurance, could find themselves with a different health plan and unfamiliar health care providers should Prop. 72 not be defeated on November 2.

The IFA Leads Efforts to Defeat Prop. 72

At its annual convention in March, IFA's board of directors voted to support the campaign to defeat Prop. 72 by marshalling the franchising community's resources to oppose the measure. Since then, IFA has put together a plan of action that has aggressively mobilized the association's membership to oppose Prop. 72 that includes using IFA publications such as Franchising World and the IFA Insider to educate its members about this very important campaign.

In May, IFA hosted a conference call to discuss with its members the impact of Prop. 72 on their businesses. Callers also learned how they could make financial contributions and engage in campaign grassroots activities. IFA has continued to host these highly-successful calls over the summer in addition to regularly providing information about the campaign to IFA members in association newsletters and e-mails.

No on Prop. 72 Game Plan: How IFA Members Can Help

A strong campaign to defeat Prop. 72 this November has been organized by Californians Against Government Run Health Care to stop this $7 billion healthcare measure in its tracks and kicks into high gear this month. Californians Against Government Run Healthcare is the coalition formed to defeat Prop. 72 and consists of over 1,000 members from a very diverse group of businesses, restaurants, local governments, nonprofits, community and civic groups, law enforcement, education, and medical groups. Many of these are franchise operations.

The campaign has created a speakers' bureau, which will drive much of the grassroots activity, to assist with these efforts. It is comprised of campaign representatives and coalition partners whose purpose is to meet with groups statewide to educate them about Prop. 72's dangerous and vague provisions that are certain to cause economic disaster in California if not defeated in November. Groups of all sorts from local chambers of commerce to franchise organization meetings for business executives, restaurant owners, operators and employees are presented with campaign strategies, fundraising tactics and provisions of the measure.

Earned media is also an integral part of the overall strategy to defeat Prop. 72. The campaign is very busy fielding requests from statewide media outlets to speak with local businesses and others about how this initiative will affect their operations. Opinion editorials are being placed in regional business journals and in the coming months campaign representatives and coalition members will be meeting with statewide daily editorial boards to discuss why Prop. 72 is the wrong solution to California's healthcare problems.

Those interested in joining the coalition, Californians Against Government Run Healthcare, or who would to participate in the Speakers' Bureau, should call 916-443 3354 or visit www.stopthehealthtax.org.

Defeating California Prop. 72 is high on the business community's agenda this fall. There is every reason to expect that we will win on November 2 if the business community continues to roll up its sleeves and right to defeat this proposition. To learn more about the campaign, or about the IFA's involvement, contact Matt Lathrop, IFA's Director of Government Relations at 202662-0792 or [e-mail].