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 California Governor Arnold Schwarzenegger Passes, Vetoes Several Key Legeilative Initiatives Benefiting
the California Lodging Industry

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Sacramento, California --October 1, 2004 -  CLIA � the California Lodging Industry Association -- is celebrating success on several key state legislative initiatives benefiting the California lodging industry. CLIA President/CEO Rick Lawrance praised California Governor Arnold Schwarzenegger for signing a CLIA-sponsored bill to create meaningful reforms to California�s Transient Occupancy Tax (TOT) codes, and for the Governor�s vetoes of two bills strongly opposed by the Association.

�The Governor�s actions are all highly favorable to the California lodging industry,� says Lawrance.  �The Governor�s vetoes of AB 606, requiring unprecedented and costly rest breaks for lodging room attendants, and AB 2832, which would have raised California�s minimum wage to the highest in the United States, were strongly urged by CLIA and our membership.�

TOT Reform

The CLIA-sponsored Transient Occupancy Tax (TOT) reform bill (AB 1916) provides lodging properties with predictable rules in several problem areas, without jeopardizing an important local government revenue source. �CLIA�s leadership was the single compelling force behind TOT reform,� says Sima Patel, CLIA Board Chair. �The signing of AB 1916 is a victory for CLIA and the California lodging industry.�  The bill goes into effect January 1, 2005, and will 1) provide lodging properties with fair protection against back TOT, when government employees claim an exemption; 2) require cities and counties to create a form for government employees to claim exemption; and 3) establish a 4-year statute of limitations for an action to collect past due occupancy taxes.

Victory with Unfair Room Attendant Requirements

�CLIA was steadfastly on record as opposing AB 606, a bill that was unfair to the industry. In that last several weeks, we called upon our members to urge Governor Schwarzenegger for a veto,� says Patel. �Those many messages were influential in gaining this important victory.�  If it were enacted, AB 606 would have created mandatory 15-minute rest breaks in climate-controlled rooms for room attendants and required extensive documentation of the breaks. The Governor, in his veto, stated �[this bill]�singles out one industry and places additional requirements on employers in that industry. These penalties and recordkeeping requirements will prove a disincentive to job creation and economic development, things California needs.�

No Raise in Minimum Wage

CLIA�s team of lobbyist worked with a broad-based coalition, including the California Chamber of Commerce and the California Restaurant Association, to oppose AB 2832, which would have increased California�s minimum wage to $7.75 per hour, in two steps, by January 2006. The increase, if enacted would have cost California employers from $3 billion to $4.4 billion. In his veto message, Schwarzenegger said, �In recent years, the high cost of doing business in California has driven away jobs, businesses, and opportunity.� 

We applaud the Governor Schwarzenegger�s effort to protect California business practices�particularly in the lodging industry,� said Lawrance.


 
Contact:
Karen Dera
Director, Communications & Business Development
CALIFORNIA LODGING
INDUSTRY ASSOCIATION
Post Office Box 15918
Sacramento, CA. 95852
916.447.6565
[email protected]
Also See: The California Lodging Industry Association Names Comfort Suites Antioch-Oakley the 2003 Outstanding Lodging Property Owner and Operator / Aug 2003
After Subcontracting Out the Entire Housekeeping Department the Comfort Suites, South San Francisco Now Being Boycotted by UNITE HERE Local 2 / October 2004
The Falor Companies Acquiring The Tides Hotel on Miami's South Beach; Will Convert into a Condominium-hotel / August 2004


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