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Folsom Company Threatens To Leave State Due To Business Climate

FOLSOM (CBS13) -- Crushing regulations and interference from lawmakers may force the largest public company in the Sacramento region to pull up its stakes and move to another state, according to the business' top executive.

Waste Connections CEO Ron Mittelstaedt said the company, which operates in 29 states and employs more than 5,500 people, has dealt with a cost structure that has increased dramatically in recent years, thanks to growing bureaucratic obstacles that can be traced back to state leaders.

"Over the last decade it has become extremely difficult to do business here," Mittelstaedt said. "The number one thing they need to do is get the legislature out of the process. The reality is the less government intervention, the more the private sector will create jobs."

Leading Democrat lawmakers announced a new proposal Thursday that aims to reduce the burden on corporations and "put an end to the drumbeat that California is not friendly to business." The proposed policy, SB617, would require state agencies to reevaluate new regulations if they would cause an economic impact greater than $50 million.

"California is serious about improving its business climate by eliminating unnecessary obstacles to business creation and expansion," said State Senate President pro tem Darrell Steinberg.

Another law, AB29, would develop an economic strategy for local businesses and create a business investment program.

Business leaders have welcomed the proposed law as a positive step, but Mittelstaedt said he hopes lawmakers are serious about reform.

"What a novel concept, trying to figure out the costs and impacts of regulation before you implement it rather than after," he said.

Waste Connections has received inquiries and proposals with specific, targeted incentives from leaders in Texas and Nevada about moving the company's headquarters to one of those states. The company generates about revenue and about $100 million in tax revenues for local governments.

Mittelstaedt said the company's odds of remaining in the state, even with the new proposals from lawmakers, hang at about a 50-50 chance.

The California unemployment rate continues to wallow at about 12 percent.

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