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September 15, 2003
Dear Governor Davis,

United Small Business is a small business associati on comprising approximately 5000 members. This letter is being sent to you for one simple reason--put the welfare of the state you govern over pandering to yet another special interest group. Our concern is SB 2, the ground-breaking health insurance meas ure that would require small businesses to either purchase priva te healthcare policies for their workers or pay a fee into a statewide pool.

Governor, small business in California is just now starting to recover. SB 2 will simply take any hard-fought gain in workers comp premiums and land us right back at square one if you sign SB 2 into law. According to a study by the Economic Development Corporation of Los Angeles County, SB 2 would cost the California business community $5.7 billion per year. Governor Davis, what exactly does it take to get your attention--a fiscal meltdown, downgraded state bond ratings, workers compensation premiums doubling annually and now huge increases in costs for health insurance??? YOUR PLAN FOR THIS STATE IS NOT WORKING! You stated, " I will review the health bill and make my own sound judgement." United Small Business hopes that your judgment on this issue will be better than your decision to cripple the California small business community with these bills:

AB 749 huge increase in workers comp premiums

AB 60 8-hour overtime mandate

AB 2065 net operating loss-carryforward

SB 400 huge increase in public employee pensions

SB 1661 mandated family leave

SB 975 prevailing wage mandate

The obvious point we hope you do not miss vis a visSB 2 is that its net effect will not provide workers medical benefits; rather, it will take away their jobs. Smaller firms with just over 20 employees, which constitute a large percentage of our base, will lay off peripheral workers so that they are not covered under the law. Larger firms will undoubtedly follow the trail of the thousands of other businesses that have left this state to get fairer treatment in Nevada, Utah, Arizona et.al.

Governor Davis, for once in your reign of terror of the California business community choose for the ENTIRE state, and not just your special interest groups, and VETO SB 2. You might even want to call Governor Lingle in Hawaii. Hawaii passed a mandated health bill in 1974 and is still recovering.


Malcolm Lunn
Chairman of the Board
United Small Business
17221 Roscoe Blvd. Suite 17
Northridge, CA 91325

phone 877-791-7705
fax 630-475-3844

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