Catching the local business issues that fall through the cracks. Los Angeles County is considering sweeping revisions to fees for services performed by the Department of Public Health’s (DPH) Environmental Health (EH) Division that would raise the total fee cost to businesses by $12 million. The proposal includes adjustments to the public health license, permit and service fees, and the establishment of 37 new service fee categories. These drastic changes will impact more than 170,000 businesses across the county with 99,000 entities seeing their fees dramatically increase. Additionally, the 37 new fee categories will force 10,800 organizations that are currently not assessed any fees to start paying for services. The changes being proposed to the county fee structure impact many types of businesses, including: restaurants, grocery stores, food warehouses, convenience stores, farmers markets, apartments, hotels, child care centers, homeless shelters and garment manufacturers. Of all the entities that will face higher costs due to this proposal, restaurant owners are likely to see the most dramatic impact. Under the new fee structure facilities will be divided and ranked as low, moderate or high risk. Based on these categories, inspections will take place either once, twice or three times per year, respectively. This translates into additional costs for establishments that fall into the high risk category, causing this particular group of business owners to carry the burden of the fee increases. In fact, 59 percent of restaurant operators will be saddled with higher permit fees. By comparison, 21 percent of food market operators will see an increase in permit fees. Lagging recovery While the fee hikes will hit certain types of restaurants especially hard, at the end of the day, an increase is an increase. New and higher county fees are going to have damaging effects on the business community, especially as economic recovery in California (and Los Angeles County in particular) lags behind the rest of the nation. The truly shocking thing about these far-reaching fee hikes is that they have managed to stay under the radar and receive little attention from the media. The proposal first went before the County Board of Supervisors on April 19 with no fanfare and due to the quick work of VICA and a small coalition of business groups the item was continued for three weeks. When the item made it on the board’s agenda for the second time, May 10, there were still concerns that more time would be needed to notify all of the entities that will be impacted by the ordinance and allow ample opportunity for public comment. At this time the perseverance of the coalition has earned an additional 60-day continuance. Now the work really begins. VICA and other business organizations are preparing to meet with DPH in the coming weeks to discuss mutually beneficial solutions. It is important for business stakeholders to have a seat at the table in these conversations. Cost of oversight The county maintains that the revised and additional public health fees are necessary to cover the cost of oversight. The county fees covered in the proposal have not been raised in three years, which the county uses to justify the radical changes. However, we know that businesses are still struggling from the recession and recovery is slow. Restaurants were hit particularly hard by the economic downturn and must now brace for another blow. Business groups have continually called on governments to do what they can to support the private sector in order to help breathe life back into the economy, but these calls are always answered with tighter regulations, higher taxes or new fees. Our elected leaders must remember that the business community is the key to economic recovery and kicking businesses while they are down prevents commerce, and the economy as a whole, from picking itself back up. Is your business impacted by the county fee increases? If so, how will the increased fees hurt your bottom line? E-mail your responses or thoughts about the column to [email protected].