Advocacy Updates
Chamber Advocacy Stops Two Bills Increasing Taxes and Fees
Bills would expose employers to lawsuits and impose head taxes The Chamber continues to advocate for Riverside’s business community and that advocacy proved successful as two pieces of legislation were defeated that would have imposed inequitable taxes and penalties on local employers already facing hardships due to COVID-19. SB 873 (Jackson): Gender: discrimination: pricing SB 873 exposed employers to penalties and fines for having any price differences in substantially similar goods. The bill opened the door for individuals to target small businesses that have any price differences for similar goods, even if the price difference is not based on gender-related factors, threatening lawsuits or settlements. Under this legislation, if a store were to sell two similar packages of razor blades – one intended for men and the other women – the business owner would be susceptible to potential lawsuits and fines in excess of $4,000 even if the price difference between the two items was as little as $0.01.Even if the business owner is able to justify the price difference, such as having different manufacturers, the cost of defending the case in court would be an overwhelming roadblock for businesses, many of whom would be forced to settle. AB 2843 (Chu) Local employer affordable housing fees: Affordable Housing Assistance Fund AB 2843 imposed an annual head tax of up to $150 per employee for the purposes of funding housing programs. While the bill did not apply to businesses with fewer than 50 employees, the bill would have greatly impacted thousands of businesses, many of whom are struggling with the economic fallout due to COVID-19. This type of tax discourages businesses from expanding their workforce and places California at a strategic disadvantage when trying to attract outside investors from locating in the state. Additionally, the bill did not ensure that the regions funding these new housing programs would receive an equitable reinvestment back into those communities. Unfortunately, the bill stopped short of truly addressing the state’s housing crisis by neglecting to fund the development of multiple housing options for the full spectrum of California’s population. For more information, contact Andrew Sall at asall@riverside-chamber.com or 951-683-7100 Ext. 220. |
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