Newsom Survives Recall Governor Newsom rather convincingly beat back the recall attempt. I don’t have much to add to what has been in the media, but I would point out it is only 265 days until the June primary! Nearly 64 percent of voters have rejected the recall, based on results from 9.1 million ballots counted statewide so far. That's a slight drop from initial tallies that were closer to a 2-to-1 ratio, but still a massive gap. Of course, all the numbers will change as more ballots get counted.
 
The biggest shocker here was fourth-place finisher Brandon Ross, a Democrat listed as "Physician/Attorney" on the ballot. Ross had 5.6 percent, outpacing Republicans John Cox (4.4 percent) and Kevin Kiley (3.2 percent). And Ross didn't even have a live bear or $7 million in TV ads.
 
Mayor Dyer Vetoes 5-Year Union Labor Deal for Fresno City Construction Projects The San Joaquin Valley Sun reports, “In his second-ever veto, Fresno Mayor Jerry Dyer rejected a measure adopted by six members of the Fresno City Council to institute union-prioritization for the City’s seven-figure construction projects. In a statement on Monday afternoon, Dyer rejected the five-year citywide Project Labor Agreement (PLA), a pre-construction agreement mandating union labor for most public works projects exceeding $1 million, as being “not inclusive,” failing to boost local hiring or “broaden the City’s labor pool. As a dues-paying member of public sector unions for the past 41 years, I do recognize that a Project Labor Agreement, if done correctly, can be beneficial,” Mayor Dyer said. “I would support the PLA if it could be modified to prioritize local hiring and local businesses.” The Dyer administration pushed back heavily on the proposed citywide Project Labor Agreement during debate before the Fresno City Council recently. Dyer doubled down in a statement on Monday, noting that union membership in the construction sits at 13 percent nationally. “This two-tiered system is discriminatory toward a large majority of Fresno’s construction workers and does not fit Mayor Dyer’s One Fresno vision of inclusivity,” his administration said in a statement. While the agreement would allow non-union contractors to bid on city work, it would subject them to paying union-mandated benefits that its workers on the project may not realize. “[T]he result being non-union contractors paying double for health and retirement benefits,” the Dyer administration said. Dyer administration officials also disputed the benefits touted by union representatives regarding better wages and benefits. Fresno’s history has only undertaken two project-specific PLAs with unions: the current City Hall building, completed in 1992, and Fresno-Yosemite International Airport’s parking garage, currently under construction. The city banned PLAs from 2000 to 2014. “(This PLA) lacks any measurement tools to see if it has met its goals,” city administration noted. Six members of the Fresno City Council backed the five-year citywide PLA measure. Fresno City Council member Garry Bredefeld was the lone dissenting vote on the agreement. In his veto statement, Dyer said he wanted exemptions for local contractors who are headquartered in Fresno’s city limits, have all employees on City of Fresno jobs reside within Fresno, provide health care coverage and 401(k) or other retirement benefits to those on the project, and dedicate 20 percent of workers assigned to the project be trade apprentices living within the City of Fresno. Dyer’s veto was overridden by a 6-1 vote of the City Council members.

Legislative Session Ends The first year of the 2021-2022 legislative session has concluded. However, Governor Newsom has already approved several bills.

AB 137 (Budget) Authorizes the Department of General Services to use the progressive design-build procurement process for up to three public works projects (with the usual SBCTC language) CHAPTERED

AB 143 (Budget) Authorizes the Judicial Council to use a design-build procurement process in contracting and procuring public works projects and would authorize the Judicial Council to award contracts using either the best value or low bid selection method for all projects (with the usual SBCTC language) CHAPTERED

AB 246 (Quirk) Adds illegal dumping to the list of violations that constitute a cause for disciplinary action against a contractor by the CSLB. CHAPTERED

AB 271 (Rivas) Permits the Santa Clara Valley Water District to award contracts on a best value basis for any work of the Anderson Dam project. The bill would require the contractor to comply with the State's STWF mandates unless the district has a PLA. CHAPTERED

AB 569 (Grayson) Increases the maximum civil penalty amounts that can be assessed against licensed contractors for violations of the Contractors State License Law consistent with changes in the Consumer Price Index. Authorizes the Contractors State License Board to issue a Letter of Admonishment instead of a citation for multiple violations at a time. CHAPTERED

SB 7 (Atkins) Reenacts the Jobs and Economic Improvement Through Environmental Leadership Act of 2011 and expands the Act’s eligibility to include smaller housing projects until January 1, 2026. The bill would exempt PLA projects from skilled and trained workforce mandates, the requirement to submit certified payroll records and prohibit the State Labor Commissioner from enforcing the labor code. Requires prevailing wages and apprentices on private projects authorized by the bill. CHAPTERED

SB 51 (Durazo) Makes changes to the Roberti Act (the Act) to encourage the sale of homes owned by Caltrans, located within the State Route (SR) 710 corridor in the El Sereno neighborhood of the City of Los Angeles (Los Angeles), for low- and moderate-income rental housing. Exempts PLA projects from CPRs and STWF. Requires prevailing wages and apprentices on private projects authorized by the bill. CHAPTERED

SB 144 (Portantino) Makes changes to the Film and TV Tax Credit administered by the California Film Commission (CFC), housed within the Governor’s Office of Business and Development (GO-Biz). Requires that the operation and maintenance of the soundstage must be performed by a workforce paid at least the prevailing rate that is either directly or through a payroll company employed by the soundstage owner or lessee; or a skilled and trained workforce, as defined in the Public Contract Code Chapter 2.9 (beginning with section 2600), if a third-party vendor provides services. CHAPTERED

SB 657 (Ochoa Bogh) Allows employers, in any instance the employer is required to physically post information, to additionally distribute that information to employees by email with the document or documents attached. Further, this bill clarifies that email distribution or relevant documents under the proposed statute does not alter the employer’s physical obligation to display the required posting. CHAPTERED

Two Of Arizona’s Native Fish Are Being Considered for Downlisting from endangered to threatened under the Endangered Species Act. But here's why they may always need human help.

Reconciliation and the PROAct In addition to the tax increases in the $3.5 trillion budget reconciliation package, on Sept. 10, the House Education and Labor Committee marked up and approved its $761 billion portions of the bill on a party-line vote. It contains provisions like policies included in the Protecting the Right to Organize Act (PROAct):

·        $5 million for the implementation of electronic voting in union elections.
·        Financial penalties on employers for unfair labor practices.
·        Personal liability for company directors and officers for unfair labor practices.
·        Prohibitions against employers from permanently replacing strikers, locking out workers, captive audience meetings, and arbitration agreements.

ABC has a website that allows contractors to contact their members of Congress here.

The Peter G. Peterson Foundation has produced an analysis of the reconciliation process and the plan to pay for the “infrastructure” package.

Time for Reconciliation All House Dem committee chairs have successfully met Speaker Pelosi's deadline to finish their sections by Sept. 15, clearing the way for leadership-level negotiations on the most challenging aspects of the bill: Medicare expansion, Medicaid spending, SALT, and drug pricing.

Arbitration Agreements A federal appeals court Wednesday simultaneously revived and gutted a 2019 California law banning employers from requiring arbitration agreements in job contracts, ruling that its enforcement mechanisms run afoul of federal law. The court allowed the ban to take effect but limited the state's power to enforce it, rendering the law largely symbolic. The 9th Circuit Court of Appeals ruled in a split decision that federal law does not prevent California officials from banning forced arbitration under AB 51. But the panel struck down a provision of AB 51 that would have penalized employers that retaliate against workers who decline to sign such agreements. The court ruled that civil penalties subjecting employers to up to six months of jail time or a $1,000 fine, as outlined in the measure, are prohibited under federal law. The U.S. Chamber of Commerce, National Retail Federation, and other business groups filed a lawsuit in 2019 arguing that the bill was in direct conflict with the Federal Arbitration Act, allowing employers and workers to settle disputes outside of court.

NLRB Chief Counsel Seeks New Penalties for Labor Law Violations With a newly minted Democratic majority on the National Labor Relations Board (NLRB), the General Counsel of the NLRB, who directs the enforcement of federal labor law, has ordered her staff to seek broad remedies—many of which would be unprecedented—for workers subjected to unfair practices, including reimbursement for “consequential damages” such as health care expenses, credit card late fees, or loss of a home or car as a result of being unlawfully terminated. Story

The Popularity of our POTUS: President Joe Biden’s average approval rating (46 percent) is in Ford territory and could be headed into Trump territory if he doesn’t turn it around. Here’s where every modern president rated at this point, according to FiveThirtyEight.

G.W. Bush: 82.6%
Kennedy: 76.1%
Truman: 75%
Eisenhower: 74.4%
Johnson: 74%
G.H.W. Bush: 69.5%
Nixon: 62.3%
Reagan: 60.1%
Carter: 54.3%
Obama: 53.4%
Clinton: 48.3%
Biden: 46%
Ford: 46%
Trump: 38.8%

Air Resources Board Invites CSLB Licensees to Attend Workgroup on Proposed Amendment for Off-Road Diesel Vehicles The California Air Resources Board (CARB) will host a public workgroup to discuss possible amendments to the In-Use Off-Road Diesel-Fueled Fleets Regulation (Off-Road Regulation) to include additional requirements for contractors and public works projects that use, hire, or own off-road diesel vehicles that are subject to the Off-Road Regulation.

The purpose of these potential amendments is:

1) To achieve long-term vehicle emissions reductions needed to meet federal and State air quality goals and requirements, and
2) To promote more effective compliance with the existing Off-Road Regulation.
During CARB’s public workgroup, the concept will be discussed, and CSLB licensees who may be affected by the proposed amendments can provide input.

Virtual Public Workgroup

Tuesday, September 21, 2021
2:30 – 4:30 p.m.

Register here.

More information about the workgroup is available here.

Accessible Parking the California Commission on Disability Access (CCDA) wants to change accessible parking in California. They have developed a survey for contractors and construction managers to “help” access the changes.
 
It should only take 5-10 minutes to complete but is due COB 9/21/21.
 
On the topic of accessible parking in private works construction, buildings open to the public, the survey asks which areas of Chapter 11B of the CA Building Code (public accessibility) would be most helpful for CCDA to focus on in developing toolkits/resources for business owners/operators, ADA local government, and building industry professionals. The survey expects A-Gen Eng., B-Gen Building, C-8 Concrete, C-10 Electrical [EV charging in parking lots], C-12 Earth/Pave, C-23 Orn. Metal, C-27 Landscaping, C-32-Parking and Highway, C-45 Signs, or any other contractor license classification who may be able to weigh in.
 
Access the full link here.

AFL-CIO Picks IBEW Lobbyist as President And no—it is not Scott Wetch. Politico reports “The AFL-CIO’s executive council voted to appoint Liz Shuler as the federation’s president following the unexpected death of Richard Trumka. Shuler is the organization’s first female president, a historic moment for organized labor in the U.S. She will serve as the nation’s top union official until summer 2022, when the AFL-CIO’s 50-plus affiliates can gather for their annual convention to vote on a permanent successor. Shuler’s first job in labor was as an organizer for the International Brotherhood of Electrical Workers in 1993. She eventually worked her way up to become a lobbyist for IBEW and, later, executive assistant to its president, before Trumka named her his running mate in 2009.” Her top priorities: “I'm going to continue to carry the mantle on this sprint to the end on infrastructure and getting that across the finish line,” she said. “In particular I'm thinking of the investments in care,” as well as “making sure those are good jobs. We want labor standards attached to make all of these investments with our tax dollars work for working people. Of course the PRO Act continues to be a major focus. And you've seen all of the organizing efforts that have been happening on the ground, the strikes that are happening, workers are in motion right now. We need to capitalize on that momentum and get these important pieces of legislation passed but also continue to invest in organizing and mobilizing on the ground.”

Recall A couple readers asked if WECA had a recommended candidate or a position on the recall of Governor Gavin Newsom (we don’t). David Crane, who worked for Arnold Schwarzenegger and now runs Govern for California wrote an interesting analysis about the recall election. You can read it here. In related news: the nonpartisan Public Policy Institute of California in a recent poll found that 58 percent of likely voters surveyed in California oppose removing Newsom from office compared to 39 percent who support recalling the governor, a gap rooted in the sharp partisan divide between Democratic and Republican voters in the state.

Vice President Harris has cast eight tie-breaking votes so far in the Senate Vice President Kamala Harris (D) has so far cast eight tie-breaking votes in the Senate. Her two most recent tie-breaking votes were to invoke cloture and then confirm Jennifer Abruzzo on July 20 and 21 as general counsel of the National Labor Relations Board. In unrelated news, a new Rasmussen Reports survey found that 55 percent of likely voters in the U.S. say that Harris is not qualified to assume the duties of the presidency. Story

EEO-1 Reporting Deadline Extended Until October 25, 2021 The EEOC has announced on its EEO-1 Data Collection website that it has, again, extended the deadline for filing EEO-1 Reports this year—this time to October 25. Employers still rushing to finalize and upload their 2019 and 2020 EEO-1 reports by the prior August 23 deadline will certainly welcome this extra breathing room. More

Related to that… OFCCP Reverses Course, Will Use EEO-1 Pay Data for Investigation, Enforcement (You saw that coming, didn’t you?) On September 1, 2021, the Office of Federal Contract Compliance Programs (OFCCP), the Department of Labor sub-agency charged with enforcing affirmative action and non-discrimination requirements imposed on federal contractors by way of Executive Order 11246, announced that it was reversing its prior position regarding the use of EEO-1 compensation data collected by the Equal Employment Opportunity Commission for calendar years 2018 and 2019 (the so-called “Component 2”). Story

Headline Risk — Apparently, Republicans’ faith in Big Business has plummeted, a dramatic change in sentiment that coincides with the rise of corporate social responsibility and voter populism. Since 2019, the share of rank-and-file Republicans who say large corporations have a positive impact on the U.S. has fallen by almost half, to 30 percent from 54 percent, according to a Pew Research Center survey of U.S. adults. The upshot: Republicans used to be the party of business. These days, there’s not much light between them and Democrats, Pew found. “It’s striking, there’s no question about it,” said Carroll Doherty, Pew’s director of political research. “For large corporations specifically, members of both parties are saying they have a negative impact on the country.” Businesses are feeling it. Lobbyists reportedly say that while they still have friends in Washington, it has become much harder to get even bipartisan legislation passed. GOP attitudes toward big banks and tech companies took a dive, too, Pew found, and regulation is a growing threat. “Republican leaders obviously listen to their voters,” Doherty said. “The ground is shifting.” We saw this under Trump, who famously went to war with the U.S. Chamber of Commerce and other industry groups over his trade policies. In the Biden era, companies that wade into policy debates over voting rights and diversity are drawing fire from conservative groups.

Corporate Shaming Consumers’ Research, a Washington-based nonprofit, has launched a multimillion-dollar campaign to agitate against Coca-Cola, American Airlines and other companies with political-style naming-and-shaming ads. Executive Director Will Hild said companies are using hot-button social issues to distract consumers from bad service, forced labor practices and other failings.

Long-Term Energy Storage The Newsom administration is proposing language in the state budget to promote new energy sources—including storage—wind and solar power and fuel cells. Budget trailer bill language that came from Newsom's office would steer roughly $800 million in spending over two years on new energy projects that Newsom and lawmakers agreed to in the June budget. At that time, however, they didn’t specify how the funding would be distributed. Besides setting investment guidelines for grants for hydrogen plants and other projects to reduce greenhouse gases at industrial facilities and food processors, the language would also streamline permitting for wind, solar or energy storage facilities above 50 megawatts. It would extend customer incentives to install fuel cells, which convert natural gas, biomethane or hydrogen into electricity. Environmental groups are worried about the storage language, which they say would benefit a controversial proposal in Southern California to tap an aquifer near Joshua Tree National Park. But they're also objecting to the hydrogen language, which they say is too vague, and the general idea of enacting a raft of policy changes in the last days of the legislative session with no public process. 

But as you can anticipate, the State Building and Construction Trades Council has included a requirement that the project developer (of the long-term energy storage) "use or require its contractors to use multicraft project labor agreements, as defined paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code, for the construction and the contracted out maintenance of the project. Those project labor agreements shall conform to the industry standard agreements recently used for private large thermal power plant projects, including separate agreements for high voltage transmission and related work.”

Delta Variant 'Significantly' Slowing Construction Recovery National nonresidential construction spending expanded 0.1 percent in July, a decrease of 4.2 percent from last year at this time, according to an Associated Builders and Contractors analysis of data published Sept. 1 by the U.S. Census Bureau. While the data suggests that commercial construction spending was effectively flat in July, the numbers are "meaningfully worse than they appear," said ABC Chief Economist Anirban Basu in a press release. When adjusting for inflation, the volume of construction services delivered by the U.S. commercial contractors actually declined in July, he said. Story

COVID Shutdown Lawsuits Cost California More Than $4M For Settlements The San Francisco Chronicle reports "The state of California has settled at least 10 lawsuits this year related to public health orders during the coronavirus pandemic, agreeing to pay more than $4 million to cover the costs of lawyers who sued over restrictions on religious services, schools, strip clubs and tattoo parlors. The 10 settlements, which total nearly $4.36 million for attorneys’ fees and costs, all name Gov. Gavin Newsom as a defendant and were obtained through a public records request to his office by the First Amendment Coalition, a nonprofit organization that promotes free speech and government transparency. As the number of coronavirus cases began to rise in California last year, Newsom established the country’s first statewide shelter-in-place order in March 2020 that shut most activities but provided exceptions for some retailers and other essential services to keep operating. That order paved the way for months of legal battles over which businesses were forced to close, how to reopen schools and whether the governor had the authority to take these steps at all."

Mia Bonta Leads in Special Election East Bay Assembly Race The San Francisco Chronicle reports "Mia Bonta was leading in a special election Tuesday for an East Bay Assembly seat vacated by her husband, California Attorney General Rob Bonta, according to early returns. Bonta, president of the Alameda Unified School District board and CEO of the nonprofit Oakland Promise, received 55 percent of the early vote totals. Her opponent, social justice attorney Janani Ramachandran, received 45 percent and was trailing by roughly 4,500 votes. Every registered voter in the district received a mail-in ballot. Officials from the Alameda County Registrar of Voters said they will next update the vote totals Thursday afternoon. The two candidates were vying to represent the heavily Democratic district that includes San Leandro, Alameda and 80 percent of Oakland. Regardless of who wins, they will help set an all-time record in Sacramento this year: 32.5 percent of the members of the Legislature are women, according to Close the Gap California, which recruits and trains women to run for state office."