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National Restaurant Association - California Assembly fails to pass "fair share" bill

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California Assembly fails to pass "fair share" bill

Restaurateurs in California won a major victory last week when the state Assembly rejected legislation that would have subjected large employers whose employees enroll in the state Medi-Cal program to fines, regulations and burdens on top of those imposed under the 2010 health care law.

The final vote was 47-27 with six abstentions, well short of the two-thirds supermajority necessary for the bill to become law. Supporters of the bill had delayed bringing it to the floor in an effort to gain the required votes. If it had become law, it would have impacted more than 1,000 employers in the state, including many restaurant brands.

Efforts by the California Restaurant Association were critical to securing the bill’s defeat. Over the past few weeks, representatives from many brands engaged Assembly members to educate them about the devastating impact the bill would have on businesses throughout the state.  The restaurant and business communities aggressively campaigned against passage, according to the California Restaurant Association, and hundreds of CRA members sent letters and faxes or made phone calls in the 24 hours leading up to the vote to encourage members of the Assembly to defeat the bill.

“The CRA would like to applaud the Democratic and republican legislators who voted no or abstained from voting,” the CRA said in a statement. “In addition, the CRA would like to thank all members who assisted CRA in defeating this potentially harmful legislation. The strong showing from our industry clearly impacted the final vote, resulting in a win for California’s second-largest private employer.”

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