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California regulatory and competitiveness survey shows we need to get smarter

Posted by Gino DiCaro, VP, Communications on April 8, 2011

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.  The Los Angeles Times wrote the first story this morning.

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: 

  • Existing and future regulations will have a major negative impact on job creation, and
  • Favorable attributes of California don’t outweigh the negative regulatory climate.

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.

Those regulatory process reform bills being heard on Tuesday, April 12 in the Senate Government Organization hearing include : 

  • 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


The coalition is asking all California employers to take five minutes to answer the survey.  We need thousands of responses.

Key survey results so far 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.

Link to survey:

Download key results so far:

See overall results so far (two parts):




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