A roundup of important state bills, regulatory news, upcoming legislative issues and appointments of interest to local executives

PREVIEW

Taking Aim at Business Fees

With a rebounding California economy and state coffers filling with cash, both Republicans and Democrats are taking aim at business fees put in place when recession--not revenue--was the topic of the day.

Two bills were introduced in the Assembly last month seeking to reduce or eliminate the minimum franchise tax--the $800 annual fee paid for the privilege of doing business in the Golden State.

There’s AB 27, introduced by North Coast Democrat Virginia Strom-Martin, which would cut the tax to $300 for those businesses with annual sales of less than $1 million.

And there’s AB 8 by Irvine Republican Marilyn Brewer, which would waive the fee for five years for new businesses launched in 1997 and thereafter, provided they have negative net income.

The annual fee was hiked from $600 to $800 in 1990 in order to help remedy the state’s budget deficit.

Tax-cut supporters, such as the California Taxpayers’ Assn., acknowledge that the relief might not make or break a bottom line. But for start-up firms and those relocating to California, the franchise tax “is not exactly putting out the welcome mat,” says Ron Roach, spokesman for the association.

APPOINTMENTS

* Eugene B. Nebeker of Los Angeles has been reappointed to the California Regional Water Quality Control Board for the Lahontan region, which manages water resources in the area covering most of San Bernardino, Inyo and Mono counties. Nebeker, 60, is president of Scientific Associates Inc. of Santa Monica. No salary. Senate confirmation required.

* Richard A. Dodge of Ridgecrest also has been reappointed to the California Regional Water Quality Control Board for the Lahontan region. Dodge, 64, is a professor of environmental science at Cerro Coso Community College in Kern County. No salary. Senate confirmation required.

* William F. Hooper of Los Angeles has been appointed to the California Health Facilities Financing Authority. He is chairman and president of Student Insurance, a Los Angeles firm that offers athletic insurance to schools and colleges. No salary. Senate confirmation required.

HOT BILLS

Here’s a look at some business-related bills recently introduced:

* Campaign Contribution Restrictions (SB 109)

Would prohibit foreign contributions to candidates in local and state elections. The bill would not apply to U.S. subsidiaries of foreign corporations. Likely supporters include “good-government” organizations. Opposition could come from political consultants and others involved in campaign management and fund-raising. Author: Quentin Kopp (I-San Francisco).

* Los Angeles Revitalization Zone (AB 82)

Would extend until 2003 state tax credits granted businesses operating within the Los Angeles Revitalization Zone.Those tax breaks will expire at the end of 1997. Author: Antonio Villaraigosa (D-Los Angeles).

* Civil Rights Initiative of 1998 (ACA 3)

A legislative response to the passage of Proposition 209, this proposal would place a ballot measure before voters to allow gender and minority preferences in state education policy, hiring and in contracting. Author: Kevin Murray (D-Los Angeles)

Comments about the Capitol Matters column can be sent via e-mail to [email protected] or by fax to (213) 237-7837.