Circumnetting California’s New Laws, Regulations and Continuing Follies

Effective today, it’s no longer a crime to possess small amounts of marijuana in California. But selling unlabeled baked goods with trans-fats is verboten. (The San Jose Mercury-News , “New laws launched today statewide affect everyone from bakers to paparazzi.”)

These economy-boosting, jobs-creating strategies are among the 750 laws signed by Gov. Arnold Schwarzenegger in 2010, many of which go into effect with the start of 2011. The Sacramento Bee reviews the statutory onslaught in “New year, new laws: A sampling of the nearly 750 bills signed into law in 2010.”

As for manufacturers, the greatest impact from state government probably comes from the cap-and-trade regulation adopted by the California Air Resources Board on Dec. 17. From the California Manufacturers and Technology Association (CMTA), “CARB adopts cap & trade“:

The market will start on January 1, 2012. Between now and then CARB will be building the market structure and finalizing important details left undone in the regulation. Also adopted were a series of resolutions for additional work to be done, described by one board member as “longer than Santa’s list.” Included is a commitment to perform an update by July 31, 2011 on the progress being made on implementation issues, among which is the status of the Western Climate Initiative, estimates of expected offset supplies, a schedule for training covered entities, and finalization of the allowance allocation system. There will also be more work on the emissions intensity and trade exposures of different industries prior to the start of the program.

CARB believes that it has legal authority to conduct an auction under the program, but does not have authority to direct expenditure of the monies. CARB resolved to deposit 10 percent of the auction revenues into the Air Pollution Control Fund for appropriation by the legislature on programs for GHG reductions and green collar employment in disadvantaged communities.

(Meanwhile, in Europe, ” Europol Arrests More Than 100 In Carbon Trading Fraud.”)

From EDAWN, a Reno economic development organization, “Two California Manufacturers Invest in Reno AM2T Moves to Reno and Synvasive Technology Expands Existing Operations“: “Reno, Nev. (December 20, 2010) – – Two California manufacturers looking to escape the high costs of doing business in the Golden State are investing in Reno creating much needed jobs and opportunities.”

The Reno release came out the same day that State Treasurer Bill Lockyer and Stephen Levy, director of the Center for Continuing Study of the California Economy, published an op-ed in The Los Angeles Times, “California isn’t broken.” Although higher taxes would fix it.

Steven Greenhut, editor of, refutes the column in a San Francisco Examiner piece, “Living in state of delusion. He includes the perspective from manufacturers: “CEOs like to live in California,” said Jack Stewart, president of the California Manufacturers and Technology Association. “It’s nice to have a corporate headquarters in Silicon Valley or San Diego. But they do their manufacturing someplace else.”

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