Dan Lungren -- The Importance of California's Growth Industries

By Dan Lungren

Today, California's economy is thriving. The transition from recession to boom was created, in great part, by the expansion of California's high-tech and bio-tech industries. Despite the growing importance that high-technology companies play in our economy, too often government continues to stand in the way.

Dan Lungren has developed a targeted agenda for the high technology sector of California's economy with the objective of making California an attractive place for this industry to continue to do business. The agenda will include several targeted and systemic changes that will keep existing business here, and help start-up businesses that will develop the technologies of the future to choose California as their home.

Tort Reform The civil litigation system is one of the most damaging elements of the business climate in California. As Attorney General, Dan Lungren supported three tort reform measures sponsored by the business community, and was an outspoken opponent against Proposition 211, a measure sponsored by trial lawyers to make California's high tech industry more susceptible to shareholder lawsuits. As Governor, Dan Lungren is committed to ending the abuse of shareholder strike suits to hold companies hostage, restricting damage awards in termination lawsuits, modified loser-pays, capping punitive damages and product liability reform.

School Reform It is quite clear that education is the most important issue facing California in 1998. As Governor, Dan Lungren's first priority will be a complete overhaul of the current state bureaucracy that has put California students, and by extension our business community, at a competitive disadvantage. The focus of Lungren's agenda for education will be curriculum reform that focuses on the basics, greater flexibility for decision-making at the local level and clear statewide standards by which we can measure progress. He will continue to advocate for school technology programs to provide for instruction on appropriate technology. He supports competency testing for teachers and monetary rewards for teachers who are performing well. In addition, he supports alternative credentials so that these leaders can become teachers and our children can benefit from their experience, and differential pay for math and science teachers. He is also a vocal supporter of competition and greater parental choice in education, including charters and opportunity scholarships.

Taxation Dan Lungren advocates a rational tax structure that uses incentives to foster efficient business practices. He has proposed a capital gains tax cut that will spur economic growth and jobs by allowing investors to keep more of the profits from their investments. He supports a federal ban on taxation of electronic commerce, eliminating the Minimum Franchise Tax that puts an excessive burden on one of our most important growth industries, the small start-up companies, and expanding the Manufacturers Investment Credit (MIC) so that it applies to all businesses. Lungren would also push for an expansion of the Research & Development credit, to reward companies with the forethought to invest in the research to develop the technologies of tomorrow.

Year 2000 The impact that the year 2000 will have on state run computer systems, is a challenge facing the high tech industry and the entire state. The crippling effect that the year 2000 calendar change will have on automated systems must be addressed through proactive cooperation between industry and regulators. Although the impacts of the problem are going to affect every business and every government agency, there has been little talk of solutions for fear of lawsuits. Lungren will advocate for legislation that gives software companies enough legal protection to allow them to discuss and develop solutions for the problem.

High Tech Training The existence of a well-trained and educated workforce is an important factor driving the rise of the high-tech industry in California. However, over the past twenty years, California's public schools and post-secondary institutions have fallen behind in training in high technology fields. As Governor, Dan Lungren will push for public private partnerships in California's high schools, community colleges and universities that will allow the business community to provide expert guidance in the training of a qualified workforce.

Visas for Skilled Foreign Workers It is no secret that California's high tech industry is struggling to fill vacancies for lack of qualified workers. Dan Lungren fully support efforts to lift the caps on the number of H-1B visas issued to qualified workers from other countries. However, the long-term answer to meeting the needs of the technology industries is improving our schools so our own workers can fill these high-paying jobs. In the short term, Senator Abraham's legislation addresses a critical need for qualified workers in these industries. It is also important to recognize that the measure relates to legal immigrants. Americans have always believed in the importance of legal immigration. This legislation simply reaffirms the important role that immigrants continue to play in our economy.

Regulatory Reform For too long, California's regulatory climate has been driven by government without sufficient regard for economic impact. The appropriate role of regulation is to provide a balance between the protection of the public safety and the promotion of economic development. As Governor, Dan Lungren will require that risk assessment be based on sound science and include cost benefit analysis.

International Trade One quarter of California's economy is based on international trade and investment. Dan Lungren was a strong supporter of the North American Free Trade Agreement (NAFTA), which has created more than $35 billion in revenues and hundreds of thousands of jobs statewide, and will push for similar agreements in South America and Asia. As Governor, Lungren will advocate for increased free trade and increased enforcement of intellectual property provisions to protect California companies from software pirates. He will also support Fast Track, allowing the President the authority to negotiate trade agreements to open foreign markets without injecting partisan politics into the process. Promoting international trade and investment will be a top priority for a Lungren administration.