Operating costs for California businesses are on average 19 percent higher than other businesses nationwide, a new study suggests. The added expenses are a combination of higher labor and legal costs, business taxes and regulatory mandates, according to a st​udy released by the California Foundation for Commerce and Education.

The higher costs are said to result in a disadvantage when trying to expand, retain or entice businesses that can choose where to operate, the report stated. The report was released Wednesday by the CFCE, which is an affiliate of the California Chamber of Commerce and advocates for the state's business community.

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