Wilson Urges Pro-Business Revolution : Regulation: Governor calls for Proposition 13-style constitutional amendment to restrict measures that carry a cost for firms.

WASHINGTON —  Gov. Pete Wilson told a group of national business executives Wednesday that he wants to reverse California’s inhospitable reputation by seizing the mandate he says voters issued in November’s election and launching a Proposition 13-style revolt against government regulation.

“For years, California has had the reputation as the state that leads the nation in adding new regulations and imposing burdens on the private sector,” the governor said in a speech to more than 500 business leaders attending the National Wholesalers Assn. convention. “But we are turning that reputation on its head. We are making California a state that rewards risk takers and welcomes job creators.”

Since his State of the State speech last month, the Republican governor has emphasized the need to encourage business growth, which in turn provides adequate tax revenue for government programs and jobs for Californians. As a result, Wilson has ordered policies to shrink the size of government and to promote business.

In his speech Wednesday, the governor repeated his call for a state constitutional amendment making it more difficult for the Legislature to pass regulations that carry a cost to business. Nearly 20 years after the property tax revolt of Proposition 13, Wilson said, “we are going to lead a new revolt, a revolt against the runaway cost that government is imposing through job-killing regulation.”

The proposed amendment, which would require voters’ approval, is expected to have a hard time getting through the Legislature because of stiff opposition from environmentalists and consumer groups.

Wilson said in his speech, however, that the state’s economic viability depends on the Legislature recognizing the need to remove obstacles to business.

“The simple secret of all that we would like to do publicly relies upon the strength of our job-creating private sector,” said Wilson, who received a standing ovation when he concluded his remarks. “Unless you have high employment, unless the state is attractive to investors, unless we can provide the kind of job creation to keep pace with a relentless population increase, we won’t have the revenues to do the kind of things we would like to by way of education, higher education and public safety.”

Much of Wilson’s message overlaps the priorities of the new Republican leadership in Washington, and the governor boasted that some of his proposals “go even further than those in the (House GOP’s) ‘contract with America.’ ” The national tone of Wilson’s speech and the prominent audience also fueled speculation that Wilson is preparing to run for President in 1996, a possibility mentioned when the governor was introduced.

Since he arrived in Washington on Saturday for a National Governors Assn. convention, Wilson has repeatedly rejected questions about his intentions even though he has not flatly rejected the idea.

Wilson told reporters Tuesday that supporters have been encouraging him to run. And on a national talk show over the weekend, the governor confirmed that he would like to seek the presidency “at some point.” He dodged a direct answer, however, saying only, “I have no new ground to break.”

Still, the prospect of a national campaign followed Wilson around. “It’s got to be on people’s minds,” said Rep. David Dreier (R-San Dimas), who met with Wilson Tuesday and Wednesday to discuss legislation. “I haven’t flat-out asked if he’s going to run for President . . . but he seems buoyed to the point where I would not be surprised to see him as a potential candidate.”

Wilson met privately Wednesday afternoon with House Speaker Newt Gingrich (R-Ga.), who has developed a close working relationship with the California governor since the November election. At Wilson’s prompting, Gingrich recently assigned four California Republican congressmen to a special Speakers Task Force--headed by Dreier--that is designed to expedite legislation that is of particular interest to California.

Wilson talked about some of the legislation--mostly a rollback of federal mandates--with the task force members Tuesday. He discussed the ideas with the full California Republican delegation at another meeting Wednesday.

In his speech before the business group, the governor also lashed out at Congress, charging that biased federal laws led to a federal judge’s preliminary decision this week in favor of state employees who contended that they were improperly paid with IOUs instead of paychecks during a budget crisis two years ago. Wilson said the state was held liable for a $500,000 punitive penalty even though the IOUs did not prevent employees from receiving their salaries promptly.

“That’s idiocy,” he said. “I am outraged by it. . . . I blame the Congress for being such whores to the public employee unions that they can pass that kind of legislation.”

Most of Wilson’s remarks, however, described the governor’s commitment to making California more friendly for business.

In the last two years, Wilson said, the state has effectively passed a 10% tax reduction for businesses by cutting assessments for capital gains, equipment purchases and corporate research. In addition, the governor noted that he has proposed a sweeping, phased-in 15% income tax cut for individuals and businesses in his budget.

The governor also said overregulation is just as damaging to business growth as taxes. “When an individual or business is compelled to spend another dollar complying with new regulations, that’s no different from having to pay another dollar in taxes,” Wilson said.