Reporting Ian Schwartz
SACRAMENTO (CBS13) – Many California business leaders say it’s becoming more difficult to do business in the state and a number of them are being recruited by governors from places like Texas and Iowa.
Politicians, some of whom insisted just a few months ago that California is a great place to do business, met with business leaders to improve the state’s business climate and create jobs.
Now politicians seem to have come to the realization that California may not be as great a place to do business as they once said it was. That’s bad news for Sacramento business owner Curtis Champman who is thinking about incorporating his optometry shop to expand. He’s done business with the state before and knows it can be difficult.
“It was a lot of red tape, headaches and so forth. We did a restaurant,” said Champman.
Throw in high taxes and strict regulations, and that can make doing business in state tough. But some relief is on the way.
Lawmakers in the Assembly passed AB 113 Monday to start attacking the business-filing backlog at the secretary of state’s office. Right now it’s sitting at two months or more.
“Business filing must be processed within five business days,” said Assembly Speaker John A. Perez, D-Los Angeles.
That is the goal by November with $2 million now available to hire more staff. This is all happening as other states are actively courting California businesses, trying to get them to jump ship to places like Texas.
“Building a business is tough, but I hear building a business in California is tougher,” Texas Gov. Rick Perry said.
Texas even ran ads in California offering up grants and tax incentives to businesses tired of California’s business climate.
“It’s a bit frustrating that we would get to the point of having such a huge backlog of documents in the first place,” said Roger Niello, Sacramento Metro Chamber of Commerce.
Niello says this is a good move because the red tape slows businesses like Champman’s down.
“They can’t start generating revenue. They can’t hire employees. They can’t do anything that would benefit them, of course, or our larger economy,” he said.
The secretary of state’s office says the backlog is a result of massive budget cuts that forced a reduction in staff.
The bill still needs to pass in the Senate, but sources say that is more than likely to happen.