Although California's Proposition 23 is widely considered to be an affront to the state's blossoming green tech industry, with backers in the oil industry citing its impediment to business operations, not many have considered how the law it is meant to repeal has generated substantial entrepreneurial activity and startup investment.
Proposition 23, if passed, will repeal AB 32 - a law passed in 2006 that restricts statewide greenhouse-gas emissions - until state unemployment drops to 5.5 percent. But the target represents an unrealistically lofty goal considering the states' current rate of 12.4 percent. What's more, as the Guardian reports, the Golden State has only reached the 5.5 percent rate three times in the past forty years.
Opponents of the proposition have argued that the restrictions have popped up countless new businesses and green tech companies filing an LLC or corporation title, as the need to reduce emissions has forced companies to seek outside help - a demand that has bolstered California to become a world leader in green tech innovation.
"If California isn't leading the charge on implementing these technologies, why be here?" clean-tech executive Eric Dresselhuys posed to the San Francisco Chronicle. "Do you want to be here for the high taxes, the high cost of living? Right now, you want to be here because California is where the action is."
Tuesday's vote has venture capitalists waiting urgently, as many believe investment in green tech startups will stall drastically if Prop 23 passes.
Tags : business licenses & permits, ca, incorporation news, small business management
Posted: Oct 29th, 2010