WECA Government Relation Voters Guide. The WECA Government Relations Committee released a guide for the November election as pertains to California. It is available here for WECA CA members.

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White House Calls for Stronger Labor Standards President Joe Biden signed an executive order on September 6 calling on federal agencies to adopt a series of “high-road labor standards,” according to an announcement from the White House, continuing the administration’s push toward expanding the federal workforce while pushing certain standards. The announcement calls the move the “first in history to specify a clear list of labor standards that all Federal agencies should look to prioritize.” Story

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Most Senate Republicans Dislike PLAs. Only one Republican in the State Senate joined their Democratic colleagues in passing Senate Bill 984 (Wahab) and sending it to Governor Newsom. SB 984 requires the Judicial Council and the California State University (CSU), by January 1, 2027, to identify and select at least three major construction projects and subject those projects to a Project Labor Agreement (PLA). Republican Scott Wilk joined the Democrats, except for Democrat Steve Glazer, who understands the damage PLAs inflict. If you are a constituent of Wilk, feel free to share your opinions politely. And if former Jerry Brown staffer Steve Glazer is your State Senator, I am sure he would appreciate hearing you know of his vote.

Alas, Glazer is finished in the Senate due to first winning election in a 2015 special election and thus is ineligible to run for another 4-year term in 2024. Two Democrats qualified for the November ballot, AD 15 Democratic Assemblyman Tim Grayson, and San Ramon City Councilmember Marisol Rubio, who challenged Glazer from the left in the 2020 primary.

Rubio has yet to be able to raise the funds needed to run a competitive race, and it is unclear if labor and progressive groups will come in with the lifeline in November that would be necessary to reverse her nearly 20-point deficit in the primary.

AYES:

Wilk, Scott

Lancaster

661-729-6232

NOES:

Glazer, Steve

Antioch

925-754-1461

Alvarado-Gil, Marie 

Modesto

209-576-6001

Dahle, Brian 

Bieber

530-294-5000

Grove, Shannon 

Bakersfield

661-323-0443

Jones, Brian 

Escondido

760-796-4655

Niello, Roger 

Rancho Cordova

916-464-3980

Ochoa Bogh, Rosilicie 

Redlands

909-335-0271

Seyarto, Kelly

Murrieta

951-894-2220

ABSTAIN/ABSENT:

Nguyen, Janet

Huntington Beach

714-374-4000

We’ll report on Newsom’s decision in October.

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PAGA Plaintiff Has No Right to Intervene, Vacate or Object to Another PAGA Plaintiff’s Settlement, Affirms the State’s Highest Court In a welcome win for employers, the California Supreme Court recently blocked a PAGA plaintiff’s attempt to intervene and object to another PAGA plaintiff’s proposed settlement as a matter of right, in Turrieta v. Lyft, Inc., No. S271721. Resolving an appellate court split, the court held in a 5-2 decision: “We hold that an aggrieved employee’s status as the State’s proxy in a PAGA action does not give that employee the right to seek intervention in the PAGA action of another employee, to move to vacate a judgment entered in the other employee’s action, or to require a court to receive and consider objections to a proposed settlement of that action.” Story

And, the same Court Holds Public Employers Exempt from Labor Code, and PAGA In Stone v. Alameda Health System, the California Supreme Court considered whether all public entities that are not specifically governmental in nature are exempt from the obligations in the Labor Code, such as meal and rest breaks and overtime, and whether penalties available under the Private Attorneys General Act (PAGA) apply to public entities. The Court held that public entities were exempt from obligations under the Labor Code unless specifically stated and that PAGA penalties do not apply to public employers. Story

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More Than 470 Local Tax and Bond Measures to Be Decided in November Election In the November election, California voters will decide the fate of at least 470 local tax and bond measures, with that number expected to rise as additional counties report qualified measures.

Of the 470 tax and bond measures in the 52 counties for which complete information is available, 203 are direct tax increases that cumulatively would cost taxpayers $3.1 billion, and 262 are bond measures that would authorize local governments and school districts to issue $49.1 billion in debt, to be repaid with interest through higher property taxes. Additionally, five measures would reduce or repeal existing taxes.

Broken down by type of tax, the measures propose 246 school bonds, 86 transactions and use taxes, 66 parcel taxes, 20 hotel taxes (“transient occupancy taxes”), 16 general obligation bonds, 14 business license tax changes, and 17 that ask for other types of tax increases.

Los Angeles County voters will contend with the highest number of tax measures, with a cumulative 66 tax and bond measures proposed in the many jurisdictions within the populous county.

Notable measures include:

·        Los Angeles County Sales Tax Increase. Measure A would repeal an existing 0.25 percent countywide transactions and use tax and replace it with a 0.5 percent transactions and use tax. The county estimates the tax increase would cost taxpayers more than $1 billion annually. If approved, Measure A will bring the top combined sales tax rate to 10.75 percent in parts of the county.

·        Revenue from the tax increase would fund programs to support homeless residents. Although Measure A is a special tax, local officials have opined that because it was placed on the ballot via a local initiative, it requires a simple majority vote rather than a two-thirds vote for passage. The officials cited the California Supreme Court’s ruling in California Cannabis Coalition v. City of Upland.

·        Los Angeles County Square Footage Tax. Measure E would impose a $0.06-per-square-foot tax on building improvements for property located in the county, with the tax rate adjusted annually for inflation. According to county estimates, the tax hike would cost taxpayers $152 million annually, with revenue earmarked to support the Los Angeles County Fire Department. The chief of the Fire Department would be responsible for administering the tax appeal process, and appeals would be limited to mathematical errors in the tax calculation or discrepancies between the assessed and actual square footage of improvements. Measure E was placed on the ballot via an initiative, so elections officials ruled that it requires a simple majority vote despite being a special tax.

·        Santa Cruz Soda Tax. Santa Cruz’s Measure Z would impose a tax of 2 cents per fluid ounce on any sweetened beverage containing one or more caloric sweeteners and 40 or more calories per 12 fluid ounces. According to the city's estimate, the tax would cost taxpayers $1.3 million annually.

·        Local governments had been prohibited from enacting new taxes on grocery items, including beverages, following the enactment of AB 1838 (Assembly Budget Committee) of 2018. However, a nonprofit organization and Santa Cruz City Council Member Martine Watkins sued the state to overturn the prohibition on beverage taxes. In 2023, the Court of Appeals ruled in Cultiva La Salud v. State of California that the state law violated municipalities' constitutional authority to enact local taxes. The state law “improperly uses the threat of crippling penalties to chill charter cities from exercising their constitutional rights,” the court wrote.

·        Berkeley Natural Gas Tax. Measure GG in Berkeley would impose a new tax on natural gas consumption. Measure GG proposes a tax of $2.9647 per therm of natural gas consumed in buildings larger than 15,000 square feet. The city estimates that this would cost taxpayers $26.7 million annually, with revenue earmarked for decarbonization programs. Although Measure GG is a special tax, election officials state that it would require a simple majority vote for passage, citing the Upland decision.

The number of tax and bond measures on the ballot is substantially higher than in the last presidential election when voters faced 261 measures. The total number of tax and bond measures is expected to increase when Colusa, Mariposa, Modoc, Orange, Riverside, and Tehama counties publish complete lists of measures qualified for the ballot.

[Courtesy of CalTax]

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You’re Special, and You’re Special The Assembly is getting its calendar for the special session on gas prices that has divided legislative leaders, with plans to convene in late September and get a floor vote by early October. Assembly Speaker Robert Rivas notified members today that the body would return for informational hearings on Sept. 18 and 19 ahead of a bill hearing on Thursday, Sept. 26. Rivas scheduled a floor session for Oct. 1, teeing up a floor vote that would allow the Assembly to conclude its business well before the November election. Meanwhile, Senate President Pro Tem Mike McGuire has said he'll call his members back once Rivas proves he has the votes to pass legislation.

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Drug Test Cheating Up 6X, Says Quest Diagnostics

• Drug test cheating among U.S. workers in 2023 was six times higher than in the previous record 12 months, lab chain Quest Diagnostics found in its analysis of nearly 10 million drug tests.
• Tampering surged to the highest level in more than 30 years of annual reporting, Quest said
• Substituted urine specimens increased by 633%, and invalid urine specimens jumped more than 45%.
• Quest also reported historically high rates of general U.S. workforce drug positivity as well as post-accident marijuana positivity.
• READ MORE

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When will Phoenix drop below 100 degrees? Phoenix is amid a scorching stretch, with temperatures soaring above 100 degrees for 106 straight days as of Tuesday. When will it end?

Some Republicans Like PLAs This shouldn’t shock faithful readers, but a handful of Republicans in the State Assembly joined their Democratic colleagues in passing Senate Bill 984 (Wahab) back to its Senate home. As a reminder to readers who haven’t memorized all the critical legislation emanating out of the state orifice, AKA the State Capitol, SB 984 bill requires the Judicial Council and the California State University (CSU), by January 1, 2027, to identify and select a minimum of three major construction projects and subject those projects to a Project Labor Agreement (PLA). Here’s how the Republicans in the Assembly voted. If you are a constituent of any of the AYE votes, feel free to share your opinions politely.

AYES:

Alanis, Juan

Modesto

209-521-2201

 

Chen, Phillip

Brea

714-529-5502

 

Davies, Laurie

Oceanside

760-433-7400

 

Flora, Heath

Ripon

209-599-2112

 

Wallis, Greg

Rancho Mirage

760-346-6342

 

NOES: 

Dahle, Megan

Redding

530-223-6300

 

Essayli, Bill

Corona

951-277-3639

 

Waldron, Marie

San Diego

858-566-7538

 

ABSTAIN/ABSENT:

Dixon, Diane

Newport Beach

949-798-7221

 

Gallagher, James

Chico

530-895-4217

 

Hoover, Josh

Folsom

916-294-9774

 

Lackey, Tom

Palmdale

661-267-7636

 

Mathis, Devon

Visalia

559-636-3440
 

Patterson, Jim

Fresno

559-446-2029

 

Patterson, Joe

Rocklin

916-435-0501

 

Sanchez, Kate

Rancho Santa Margarita

949-459-7170

 

Ta, Tri

Westminster

714-379-0970
 

We’ll report on the Senate vote next time.

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Presto Chango For the last seven months, SB 1162 (Cortese) was a modest bill requiring contractors and subcontractors on public works projects to include a worker's date of birth in public works payroll records and in monthly compliance reports made to the public entity or awarding body for projects with a skilled and trained workforce requirement. It also would have required DLSE to accept and investigate a complaint submitted by a joint labor-management committee (JLMC) alleging a contractor (or subcontractor) did not follow skilled and trained workforce (STWF) requirements.

The bill is sponsored by the California State Association of Electrical Workers, the California State Pipe Trades Council, and the Western States Council of Sheet Metal Workers – all construction union members of the State Building and Construction Trades Council.

Cortese amended SB 1162 last week. The amendments strike the DOB change in the labor code, replacing it with new STWF requirements in PCC §2602 and adding a new §2604.

2602 (2) The contractor, bidder, or other entity will provide to the public entity or other awarding body, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with this chapter. The required monthly report demonstrating compliance with this chapter shall include the full name of, and identify the apprenticeship program name, location, and graduation date of, each worker relied upon to satisfy the apprenticeship graduation percentage requirements of paragraph (2) of subdivision (d) of Section 2601.

2604. On or before July 1, 2025, the Division of Apprenticeship Standards shall create and maintain a public online database to verify that a worker graduated from a California apprenticeship program. The database shall be searchable by using the first name, last name, and graduation date of the worker.

One possible explanation for the change is the estimated cost of the investigation mandate. The Assembly Appropriations Committee identified costs of approximately $1.23 million in the first year and $1.16 million annually for the Division of Labor Standards Enforcement to investigate every skilled and trained workforce complaint submitted by a JLMC. The Department of Industrial Relations (DIR) would also incur additional costs to update database systems to reflect the DOB requirement for CPRs and skilled and trained compliance reports.

In a budget year of continued state deficits, Cortese could have been forced to drop the investigation provision and go with the DOB, which was considered to have minor state costs. But this might have failed to satisfy the sponsors.

However, adding §2604 creates a similar programming cost, possibly higher than just the DOB addition.

The bill was re-referred to Assembly Labor and must be heard this week, the final week of the session.

The legislature's rules state that this week is reserved for floor sessions only. However, there are a couple of exceptions, and SB 1162 qualifies for one of them.

The chances of derailing the bill are slim. But knowledge is power.

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Money for You, and You, and You A first-in-the-nation California proposal could make undocumented immigrants eligible for up to $150,000 in state-supported home loans just as immigration has become an incendiary topic in the presidential election.

The California Dream for All program is run by the California Housing Finance Agency, which generates revenue through mortgage loans and not from taxpayers. The measure, AB 1840 (Arambula – D), would open up the program to illegal immigrants; it is likely to pass the California Legislature this week, where Democrats enjoy a supermajority and in a state with the largest share of undocumented immigrants in the country. Unsurprisingly, AB 1840 support has been split along party lines in the Legislature.

Newsom, a top surrogate for President Joe Biden and Vice President Kamala Harris, declined to say whether he would sign the measure if it clears the statehouse by the August 31 deadline. He would likely decide while Republican nominee Donald Trump criticizes Harris over the influx of migrants at the U.S-Mexico border early on in Biden’s tenure and as Harris moves to the right on immigration.

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California’s Minimum Wage Will Increase Again in 2025 California's minimum wage will increase from $16.00 per hour to $16.50 per hour on January 1, 2025. This increase applies to all employers, regardless of size. The adjustment is based on the Consumer Price Index (CPI), which saw a 3.18% increase over the past year. Additionally, on January 1, 2025, the minimum salary for full-time exempt employees will increase from $66,560 to $68,640. Because of wage order 16, this change affects the threshold for employers to pay for hand tools. Story

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First-In-Nation Measure to Require Textile Recycling Clears California Assembly Because California is doing a bang-up job of recycling everything, including politicians, California is one step closer to having the nation's first state-level clothing recycling program after the state Assembly passed legislation on Wednesday. State Sen. Josh Newman's "Responsible Textile Recovery Act," SB 707, calls for clothing producers to create and fund an organization to help launch a textile recycling program overseen by CalRecycle. It passed the Assembly 46 to 5 on Wednesday. Newman's bill is meant to reduce textiles that end up in landfills every year. About 1.2 million tons of textiles were thrown out in California in 2021. Newman's office has said that while most of that material could be reused or recycled, only about 15 percent currently is. The bill excludes mattresses and carpets covered by existing take-back programs.

Introduced in 2023, the bill passed the Senate last spring before stalling in the Assembly amid opposition from textile industry groups. Newman negotiated with the groups and made changes to the bill, including excluding retailers with less than $1 million in sales, structuring the program after other "extended producer responsibility" programs, and addressing online marketplaces to clear key Assembly committees this year. The bill heads to a concurrence vote in the Senate. The legislative session ends Saturday. Newsom then has until Sept. 30 to sign the bill, veto it, or let it become law without his signature. If the legislation becomes law, it would still take several years for any clothing recycling program to be operational. It requires a plan to be approved by CalRecycle by July 1, 2030.

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Because California Gas Prices Aren’t High Enough Already Gov. Gavin Newsom wants lawmakers to hold a special session to deal with energy issues, according to four legislative sources. This is a signal that his end-of-session bid to rein in gasoline price spikes is facing opposition among Democrats. Newsom on Tuesday evening floated the idea of a special session to Assembly Speaker Robert Rivas and Senate President Pro Tem Mike McGuire, according to a legislative source who was granted anonymity to discuss confidential negotiations.

The move came after Newsom's office presented bill language to Assembly Democrats earlier to give the California Energy Commission more authority to oversee oil refiners' supplies, a move aimed at controlling gasoline price spikes. The proposal met skepticism from moderates in the Assembly, who were concerned the move risked increasing gas prices, per several sources. Assembly leadership was receptive to taking more time with it in a special session, while some senators balked.

Sen. Nancy Skinner, who authors the refiner proposal in SB 950, said she supports completing it in regular sessions. "I hope we would get it done now," she said. "Be smart, get it done now."

McGuire declined to say whether he supported the idea on Wednesday, but Sens. Lena Gonzalez and Scott Wiener also said they'd like to pass the refinery bill before the regular session ends Saturday. “We don’t need a special session, we should just do the work before recess,” said Wiener.

Several senators said the special session could also incorporate other hard-to-land energy proposals to reduce electricity bills and streamline permitting.

The refinery bill would give the CEC authority to require refiners to provide advance notification of how they plan to make up for lost production during outages associated with maintenance at refineries. It would also authorize the state to require refiners to store more products and to impose penalties of up to $1 million per day for noncompliance. Refinery sources told WECA they would have to use tankers anchored offshore to store refined fuel to comply. #WCGW

Newsom spokesperson Izzy Gardon said Newsom, who was at home in Marin, was still focused on passing the bill during this session. "We're focused on this one," he said.

Newsom has been concerned about gas prices, which rose as high as $6.44 per gallon in the fall of 2022. He called a special session in December 2022 that resulted in SB 1 X-2. This bill directed the CEC to collect and analyze gasoline market data and decide whether to impose new regulations on oil refiners, including a potential profit cap. The CEC has focused on refiners’ inventories as a price driver, leading to the proposal to require more storage. The agency has also said it plans to announce whether to impose a profit cap this fall.

Republican Nevada Gov. Joe Lombardo has raised concerns that Newsom's push could raise Nevada state's gas prices since the state gets most of its gasoline from California. Industry representatives from Arizona, which also gets gas from California, have raised concerns.

A range of energy proposals in the Legislature, including those on permit streamlining and electricity affordability, have also struggled to gain approval from the Senate, Assembly and governor’s office in the last days of the session.

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I Want to Be Your Governor. I know we haven’t picked which loser we want for President, and I am already talking about 2026, but…Conservative commentator Steve Hilton is seriously considering a run for governor and is already piquing the interests of Silicon Valley assholes.

Three people in close touch with him told POLITICO that Hilton, the former Fox News host and policy adviser to British Prime Minister David Cameron, is mulling a run to succeed California Gov. Gavin Newsom in two years.

While Hilton and his team did not comment when asked about the story, several prominent political figures in the state conveyed that the Silicon Valley entrepreneur, who has been increasing his public appearances and focus on California public policy, is already deep in discussions about a possible run as a Republican.

“He is thinking very seriously about running for governor, and he is doing it in a very organized way,” said Jim Brulte, former California Republican Party chairman and GOP leader of the state Senate. “I know he’s talking to a lot of the right people because I have heard from a lot of the right people that he’s talking to them.”

His candidacy would be a major test of voters’ appetites to challenge Democratic dogma and conventional wisdom in one of the nation’s most significant, bluest states. It also could help resolve whether deteriorating conditions on the ground — pockets of high crime, homelessness and soaring cost of living — will precipitate a fulsome conversation about alternative leadership that hasn’t happened in decades.

Word of Hilton’s interest has already caught the attention of Silicon Valley leaders, including figures pining for a political disruptor. In an interview, Chamath Palihapitiya, the billionaire tech venture capitalist who has increasingly waded into national and state politics, said Hilton’s emergence could jump-start conversations around various issues plaguing California.

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Andrew Who? GOP Rep. Michelle Steel appears to be distancing herself from longtime ally Andrew Do, an Orange County supervisor facing calls to resign amid a federal probe related to reports that he directed millions of taxpayer dollars to a nonprofit run by his daughter.

Do was previously listed among Steel’s endorsements on her campaign website but had removed his name from the roster as of Monday. Lance Trover, a spokesperson for her campaign, said in a statement that “public officials must be held accountable for their actions, but like any other American, they are entitled to due process of the law. Steel is fighting a close reelection battle this year against Democrat Derek Tran, who has been working to tie Steel to Do’s turmoil.

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I don’t usually comment on the specifics of my sausage-making, but this one caught my eye. FYI, I did not receive any PPP loans. Lobbyist Settlement The lobbying firm California Advisors LLC, including partner Delaney Hunter and former partner William Gonzalez, have agreed to pay $580,000 in damages and penalties over allegations they fraudulently sought a federal Paycheck Protection Program loan during the pandemic. The U.S. Attorney's Office announced the settlement on Monday, noting the loan program wasn’t open to firms that primarily lobby. Hunter and Gonzalez both signed the settlement agreement. They received a PPP loan for $144,340! Cue the tears.

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Third Circuit Holds Multiemployer Pension Fund Claim Cannot Be Enforced due to Unreasonable Delay in Providing Notice of Withdrawal Liability Assessment While California is in the Ninth Circuit, this story caught my eye. In July, the Third Circuit upheld a District of New Jersey decision to throw out a withdrawal liability assessment, finding the multiemployer pension fund was barred from pursuing its claim because the fund unreasonably delayed notification of a withdrawal liability assessment for 12 years.

The Employee Retirement Income Security Act of 1974 (ERISA), as amended by the Multiemployer Pension Plan Amendments Act of 1980 (MPPA), sets minimum funding and other standards for multiemployer defined benefit pension plans. Under ERISA and MPPA, an employer that exits a multiemployer plan must pay “withdrawal liability” to the fund to cover the employer’s “share” of the fund’s unfunded vested liabilities.

This is relevant as some contractors who work on PLA projects could be hit with a withdrawal penalty. Story

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California Court Holds Mechanic's Lien Enforceable Despite Failure to Provide Preliminary Notice In a recent case, the California Court of Appeal held that a contractor could foreclose a mechanic's lien over the project owner's objection, even though the contractor had not provided a preliminary notice of lien to the project owner's construction lender. The court based its decision on the lack of prejudice to the lender.

As you all know, California law requires contractors to provide a preliminary notice of mechanic's lien to any lender on the project. The notice is a prerequisite to the lien's validity. In the case at issue, the contractor did not provide the lender with a preliminary notice. When the owner did not pay the contractor, the contractor sought to foreclose its lien. The owner opposed the foreclosure on the ground that the lien was invalid because the preliminary notice had not been given to the lender, who had a trust deed.

In a recent case, the California Court of Appeal held that a contractor could foreclose a mechanic's lien over the project owner's objection, even though the contractor had not provided a preliminary notice of lien to the project owner's construction lender. The court based its decision on the lack of prejudice to the lender. Story

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OSHA’s Walkaround Rule Raises Questions of Liability, Safety OSHA’s new employee walkaround rule has raised many questions. The final rule was enacted on May 31, allowing employees to select a third-party representative to be present during OSHA inspections. The agency has touted the change to improve inspections by increasing worker representation and making it easier for compliance officers to obtain more information about workplace safety. “Worker involvement in the inspection process is essential for thorough and effective inspections and making workplaces safer,” Doug Parker, assistant secretary of labor for occupational safety and health, said in a press release. Story

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When Does Job-Hunting By CA Lawmakers Raise Questions? Like we need more lobbyists. CalMatters reports: At the end of this year’s legislative session, nearly a quarter of the 120 lawmakers will depart and collect their final state paycheck in late December.

Some hope to start in a new elected office next year, while others will return to their previous jobs. However, based on recent history, at least one in five will land a job at companies or organizations trying to influence California’s government.

And as CalMatters Digital Democracy reporter Ryan Sabalow explains, some may be job hunting while still voting on bills that could affect their prospective new bosses.

Outgoing Republican Assemblymember Devon Mathis of Visalia: “August is kind of … the interview period. You see people that are trying to shop, you know, for a third-house gig or something like that.”

While legislators are still in office, state ethics guidelines allow voting on bills that could benefit a “significant segment” of an industry as long as they don’t specifically affect their would-be employer. Mathis has started a public relations firm and agreed to work for an energy company, but he said he checked with state ethics officials to make sure he wasn’t violating any laws.

And lawmakers aren’t required to publicly disclose if they’re in job talks with an outside organization trying to influence state policy. Ethics experts and good governance advocates argue the rules should be updated so that the public can at least know if a lawmaker has a new job lined up while they’re still casting votes. When legislators abstain from voting, which is common, there’s also no way to know if it’s because of a conflict of interest.

After leaving office, a one-year “cooling off period” prevents lawmakers from directly lobbying their former colleagues. But they can still work for a company that’s lobbying the Legislature.

A CalMatters analysis of 180 lawmakers who left office in 2012 found that about 40 registered as lobbyists, worked as political consultants, or took executive-level jobs with companies or organizations actively lobbying at the Capitol. Story

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Does Construction Need More Access to Opioid Overdose Meds When people think about the potential dangers of working on a construction site, falling off scaffolding or being injured or killed by heavy machinery are typically the situations that come to mind. To be sure, these are all very real risks. Data from the Bureau of Labor Statistics shows that construction workers already face the highest number of fatal work injuries compared to any other profession. Story