Overregulation

California is the most overregulated state in the country, with a staggering 420,434 total regulatory restrictions, according to the Mercatus Center at George Mason University. Each year, more than 4,000 new bills are introduced in the California Legislature, and more than 700 are signed into law. Golden Research Institute Co-founder Dave Kaval experienced this firsthand in his efforts to build a new ballpark in Oakland for the Athletics. Kaval had to get three pieces of new legislation passed just to allow the project to move forward. These layers of red tape create the need to pass new laws to clarify and adjust older laws. This is a bonanza for lawyers and lobbyists but stifles entrepreneurship and small business creation, forcing businesses out of the State.

Golden Research Institute is focused on shining a light on these unnecessary laws and developing best practices to roll back these laws to make the state more competitive.

Reverse the exodus of businesses and residents

California has become increasingly too expensive to live and raise a family. Housing costs are the highest in the nation, with the median home price in California nearly 2.5 times higher than the national average, according to 2022 Census data. The state’s tax burden is off the charts. A 2024 WalletHub analysis reveals California residents face the nation’s highest state and local income taxes, averaging 4.9% of their income.

Homeowners insurance, if it can be obtained, is outrageously expensive. California’s homeowners insurance market is in crisis. With rising premiums and shrinking coverage, homeowners are losing coverage or struggling to find alternatives. In August 2024, the California Department of Insurance approved Allstate’s request to raise homeowners’ insurance rates by an average of 34%, marking the largest hike by a major carrier in three years. The increase, effective since November, impacts about 200,000 households across various regions, with some seeing premiums rise by over 100%, and a few, particularly in wildfire-prone areas like Mariposa County, experiencing increases of over 200%. In the past year, seven of the state’s top 12 insurers, including Allstate and State Farm, have scaled back coverage, citing the rising costs of disasters and regulatory challenges. To stabilize the market, state officials have also approved rate increases for other major insurers, including Safeco and State Farm.

This combination of high costs, limited insurance options, and regulatory challenges is driving families out of the Golden State in record numbers. The Stanford Institute for Economic Policy Research (SIEPR) reported in 2023 that California was “hemorrhaging residents to neighboring states like Texas, Arizona, and Nevada.”

Golden Research Institute is dedicated to reversing this trend. Through data-based research and thoughtful public policy recommendations, we aim to address the underlying causes of these challenges and promote the State as a great destination to live and work.

Artificial Intelligence

There is no greater threat and opportunity for the State than its approach to artificial intelligence (AI). California is at the forefront of the AI revolution, much like Silicon Valley led the chip, information age, and internet booms. With more than 5,000 AI start-ups founded in the Golden State and world-class research institutions like Stanford, Berkeley, and UCLA, California has the talent and resources needed to continue driving AI innovation and breakthroughs. Golden Research Institute co-founder Brad Null, an expert in creating AI models, recognizes the immense potential for this nascent industry to drive the State’s future growth.

However, ensuring a balanced, common-sense approach to AI regulation is essential. In 2024 alone, 18 new laws were passed in the legislative session addressing AI. Excessive regulation could stifle technological progress and threaten California’s status as a global technology hub. The AI Alliance, representing creators and developers in the field, warns that poorly crafted regulations could hinder safety advancements and harm economic growth.

Golden Research Institute is committed to advancing several research projects on AI and its regulation, with the goal of promoting this incredible new industry and maintaining California’s early lead in the sector.

Innovation and Entrepreneurship

One of California’s greatest strengths is its ability to foster innovation and entrepreneurship and Golden Research Institute co-founders Dave Kaval and Brad Null embody this spirit. Both serial entrepreneurs, they have launched California-based ventures such as the Golden Baseball League , an independent baseball league featuring former MLB stars, innovative operations, and a platform for players to transition to Major League Baseball, and Giraffe AI, a company helping organizations build and enhance their AI and Insights capabilities. Access to capital, a skilled workforce, and a robust market were key determinates in their decision to start these businesses in California.

Golden Research Institute is committed to ensuring that the Golden State remains the best place to start a business. Our efforts focus on advocacy around continued workforce development and supporting entrepreneurs.