"Nevada, You're Next."

I attended a very interesting “hearing” on Friday at the offices of the Nevada Motor Transport Association in Reno.

Several Republican California state legislators came over the hill to hear from companies who had moved away from California. A few hours was spent listening to testimony from several entrepreneurs, most of whom had relocated to Northern Nevada.

What was most interesting to me was that while taxes certainly came up from time to time, most of the complaints centered around high workers comp costs, and the extraordinary regulatory hurdles and burdens put in place by various California governmental entities. A common theme was the antagonistic attitude of the bureaucrats toward business owners, rather than a “how can I help you comply” approach.

We heard tales of agents demanding to inspect a closed plant on Good Friday, of enforcement officials bringing news camera crews with them to “offending” businesses, of crushing regulations that threatened to drive job producers out of business.

We then learned about the magnet that is the State of Nevada. One participant stated that Nevada is the closest thing to California without being in California. They are the 7th largest economy in the world and both of our major cities sit on two of the major interstate highway corridors from California. Our neighbor is a huge market, filled with people who need goods and services.

Several participants disclosed the fact that it is cheaper to transport goods between Northern Nevada and Southern California than it is between points in Northern and Southern California! California’s tariff laws are the cause of this disparity.

Finally, one participant, who has a business in the Carson Valley, discussed the warm reception he received from the local fire marshal when he arrived in Nevada. The fire marshal arrived and wanted to learn about his business, what it manufactures, and how to train his people to deal with the type of fire that could potentially occur there!

All of the speakers confirmed that they were never notified by any officials in California to inquire as to why they were leaving and how they could assist in enticing them to stay.

The attendees received a warning from the California elected delegation in attendance.

“Nevada, you’re next!” they stated. “Don’t let what happened to us, happen to you.”

I could only think of the various workers comp bills and other anti-business legislation flying around Carson City right now. It was a shame that there were no elected Nevada officials in attendance to hear the warning.