Initiative outcomes have chambers cheering

Alicia Robinson

Several local business owners are rejoicing over the outcome of two

statewide propositions in last week’s election.

The passage of Proposition 64, which closes a loophole in unfair

business-competition laws that some attorneys exploited to file suits

with no plaintiff or real damages, is considered a win for

businesses, as is the defeat of Proposition 72, a referendum on a

state law requiring businesses with 20 or more employees to offer

healthcare to employees or pay into a state fund that would offer

coverage.

“We help with the insurance for all of our employees,” said Marion

Halfacre, who owns Traditional Jewelers at Fashion Island. “We pay a

percentage, but to pay all of it, it’s just too big of a burden to

ask of a small-business owner.”

Some attorneys have allegedly extracted money from businesses by

threatening to sue over minor state code violations. Businesses

sometimes pay rather than face a costly court battle even if no one

was harmed by their violation.

Barring that type of frivolous lawsuit removes a concern for small

businesses, said Andrew Hanscom of FormaLogix, a Costa Mesa company

that makes a device to help fit shoes.

“Fortunately, we haven’t been involved in any of those

[lawsuits],” Hanscom said. “They’re always scary for a start-up

company or a new company with limited revenue.”

Many business proponents were also happy with Newport-Mesa’s

Republican representatives in Sacramento and the reelection of

President Bush, whom they think will promote business interests.

State Senator-elect John Campbell and Assemblyman-elect Chuck

DeVore understand the needs of small business, but as members of the

minority party, they’ll have to be vigilant against overregulation

and unfunded mandates, Newport Beach Chamber of Commerce President

Richard Luehrs said.

Luehrs was pleased with the outcome of the election overall,

except for the passage of two initiatives. He opposed one that will

allow the state to sell bonds for stem cell research and the

construction and renovation of children’s hospitals, and one that

raises taxes on higher-income residents.

“Ultimately, the taxpayer pays the interest on those bonds,” he

said. “Right now, the state’s bond rating is not that great.”

Continuing to reform workers’ compensation legislation to lower

costs and offering businesses tax breaks are on the wish list of

business leaders for next year.

“We achieved two of the top priorities with [Propositions 64 and

72], and from here it’s hopeful that the legislature doesn’t fall

back into the same pattern of overspending and over-regulating that’s

a burden on businesses,” Costa Mesa Chamber of Commerce President Ed

Fawcett said.

* ALICIA ROBINSON covers business, politics and the environment.

She may be reached at (714) 966-4626 or by e-mail at

alicia.robinson@latimes.com.