The state’s most prominent and politically powerful business organization has decided to formally oppose the February ballot initiative that would modify legislative term limits.

The board of directors of the California Chamber of Commerce has voted to oppose Proposition 93. The measure would shorten the amount of time someone is eligible to serve in the Legislature, but would extend eligible time in either house. It also includes a mechanism for several incumbent legislators, especially the Democratic leadership, to extend their eras of influence.

Interestingly, Cal Chamber president Allan Zaremberg originally supported the proposal, telling the San Francisco Chronicle back in February that it would “bring stability to the Legislature.”

But a spokesperson for Zaremberg now says that his support was contingent on term limits reform being paired with reform of the political map drawing (redistricting) process. And Zaremberg’s written statement today confirms that rationale:

“If we are going to allow legislators to serve longer periods of time, they must be accountable to the voters. Fair redistricting is critical to creating accountability. We must ensure that districts are competitive and that voters have the ability to hold elected officials accountable at the ballot box for their actions.”

The business group’s decision is just the latest example of high profile players choosing sides when it comes to Prop 93. Earlier this week, former state controller and Democratic gubernatorial candidate Steve Westly came out in support of the initiative; Westly’s decision followed the decision of Insurance Commissioner Steve Poizner to oppose the measure.

The big kahuna, of course, is Governor Schwarzenegger. Zaremberg and the Cal Chamber are longtime allies of his, but that doesn’t mean they’re in lockstep on all issues. Will he support it? oppose it? Remain silent on it? He artfully dodged the question at an event earlier this week.

Stay tuned.