Capitol Alert

Senate Republicans stood with business representatives Tuesday in demanding a series of business and environmental regulation changes as part of budget talks.

"At a time when Californians are paying more at the gas pump and the grocery store, the last move the Legislature should make is to raise taxes," said new Senate Republican leader Dave Cogdill.

Cogdill said he wanted to make GOP requests public after criticism last summer that Republicans did not fully reveal their budget demands.

Senate Democratic leader Don Perata said he welcomed Republican suggestions.

“We are in such dire trouble fiscally, I am glad for anybody who wants to get into the game," Perata said. "We have not yet come to grips with how difficult this year will be. Everything must be on the table.”

Senate Republicans proposed:

-Allow employers to offer flexible work schedules by removing requirement that they pay workers overtime after an eight-hour day.

-Extend deadlines for diesel engine retrofits. At present, heavy-duty equipment has to be turned over twice within 8 years.

-Allow individuals and employers to purchase health insurance through any licensed provider.

-Require state agencies to assess the economic impact of regulations on small businesses.

-Eliminate red tape and redundancies in the building permitting process.

-Allow businesses to come into compliance with the Americans with Disabilities Act before regulators levy fines.

-Delay the implementation of greenhouse gas regulations by one year.

Dorothy Rothrock of the California Manufacturers and Technology Association said the governor has the ability to delay by one year the adoption of greenhouse gas limits, currently scheduled for January 2011. The move, she said, would allow the state to reduce carbon emissions in a "cost-effective and technologically feasible" manner.

Environmental regulation was a sticking point in last year's budget negotiations. During a 52-day standoff, Republicans won amendments protecting infrastructure bonds from being entangled in greenhouse gas emissions lawsuits.

Republicans are expected to unveil more demands in coming weeks.

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