Welcome to the Duvall Dispatch, an electronic newsletter we have implemented to keep you informed of the goings on in Sacramento and the Seventy-Second Assembly District. I invite you to share this newsletter with friends, family, and business associates. As always, your input and suggestions are greatly appreciated and will help me serve you. If you are having difficulties viewing this email, please be sure to visit my website for the latest updates from the office.

At a press conference on Thursday, June 21st, Senate President Pro Tem Don Perata and Assembly Speaker Fabian Núñez declared their intention to combine their respective healthcare reform proposals into one bill.  AB 8 (Núñez) and SB 48 (Perata) will be put together into one measure—one that, if voted out of the Legislature and signed by the Governor, would have tragic consequences for California's businesses.

First off, this bill will institute the single-largest tax increase on California businesses in the state's history.  The two Democratic leaders are proposing a payroll tax of at least 7.5% in order to fund their bill's burdensome requirements.  Even worse, I'm told that their proposal also includes the ability to RAISE this tax rate if it becomes ‘necessary' in order to pay for the massive new government-run healthcare bureaucracy created by the bill—and this would be done automatically, without a vote of the state Legislature. 

This is of vital importance, as both this plan and the Governor's healthcare proposal (which has not yet been written into legislation) contain payroll taxes on businesses that help to fund them.  However, both the Democrats and the Governor have insisted on calling this tax a ‘fee', as fees only require a simple majority vote of the Legislature, versus a tax, which requires a two-thirds vote (which gives legislative Republicans leverage, as their votes are needed to pass any tax bill). 

There is no doubt these measures would constitute a tax increase, and should be subject to a two-thirds vote of the Legislature.  Pushing them through by a majority vote means that these bills will likely be challenged in court and tied up in litigation for years.

Another extremely onerous element of the Democrats' plan is that it contains NO exemption for small businesses.  The Governor's proposal excludes businesses with fewer than 10 employees from its requirements, and a similar proposal that was enacted in 2003, SB 2 (Burton), excluded all businesses with fewer than 50 employees from its requirement to provide health coverage benefits (though SB 2 was repealed by a ballot referendum in 2004).  This provision completely ignores the reality of running a business and managing employees, costs and payroll in California's increasingly unfriendly business climate.

Finally, the majority Democrats' plan will regulate how much health providers may charge patients whose income is under 300 percent of the federal poverty level - without regard to the actual cost of providing care.  This could lead to many health providers cutting costs in other areas, such as eliminating services or lowering reimbursement rates to doctors and hospitals, or forcing them to pull out of the California market altogether.  This just provides further proof of how out of touch with market realities—and the lives of California workers, employers, and families—majority Democrats are.

Ironically, while claiming to fix California's ailing healthcare system, this terrible measure will serve as a final nail in the coffin for the state's hemorrhaging budget by draining the life out of California's already struggling economy.  Be assured that I am doing all I can to fight this proposal and protect the pocketbooks and livelihoods of California's businesses and citizens.

Thursday, June 14th was Flag Day and I am proud to announce the passage of Assembly Concurrent Resolution 60, a measure I authored to commemorate this important holiday in the State of California.

On June 14, 1777 the Continental Congress adopted a resolution specifying that the flag of the new nation carry 13 stripes and 13 stars, with the colors representing hardiness and valor (red), purity and innocence (white), and vigilance, perseverance, and justice (blue). 

The flag we fly now looks a bit different—we've added 37 stars since then—but the meaning and significance remain the same. With a long and rich history, Flag Day is a day to celebrate the symbol of our freedom.  The day might not warrant time off of work but it nonetheless serves as one of the most important holidays our nation acknowledges every year.

Moreover, this holiday is of personal significance to me, as it is also my birthday.  I encourage all Californians to celebrate the flag as a symbol of our freedom and to remember the hard work and sacrifices that so many have made to ensure that freedom. 

On June 21st, 2007, I requested that the California State Assembly adjourn in the memory of La Habra City Manager Brad C. Bridenbecker, who passed away on Monday, June 18th after a long battle with cancer.  He was just 35 years young.

Brad grew up in Orange County, attended college at Cal Poly Pomona and grad school at USC. He started with the City of La Habra back in 1994 as a part-time intern and was steadily promoted through the ranks until his appointment as City Manager on June 16, 2002.

A number of significant projects in La Habra were completed under his leadership, including: Westbridge Plaza, Costco, La Bonita Park Phases 1 and 2, and the reconstruction of La Habra Boulevard.

Brad was diagnosed with cancer shortly after being appointed City Manager and worked continuously until taking a leave of absence in April of 2006. 

Brad was a bright, capable and dedicated public servant, and wholeheartedly a family man.  He loved being a dad and spending time with his wife, Beth, and two daughters, Victoria and Katie. 

He will be sorely missed.

A memorial service will be held at 12 noon on June 28th at Our Lady of Guadalupe.  Our Lady of Guadalupe is located at 900 W. La Habra Blvd.  Please call (562) 691-0533 for more information.