Arizona Will Get a New Representative Adelita Grijalva won decisively in a special Democratic primary on Tuesday, making it almost certain she will win the heavily Democratic 7th District in the September general election. Support from Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez boosted her progressive credentials. Her previous experience as a county supervisor also helped her campaign. But perhaps most importantly, name recognition played a key role: She shared the last name of her father, Democratic Rep. Raúl Grijalva, who held the seat for over 20 years before passing away in March due to cancer. [Politico]

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Trump Likes Apprentices Labor Secretary Lori Chavez-DeRemer has visited several training facilities on a 50-state tour since being sworn in in March, and signed a deal in April to launch a national apprentice program for firefighters and emergency responders at the DOL’s D.C. headquarters. “We know that we’re not going to see four-year universities deliver all of that workforce,” Chavez-DeRemer said during a keynote speech at the Western Governors’ Association conference last month.

Trump aims to have at least 1 million active apprentices, and Chavez-DeRemer told WGA attendees that she hopes to surpass that target and reach 1.2 million apprentices to “really deliver on this.” Since Trump returned to the White House earlier this year, more than 145,000 people have joined apprenticeship programs, and nearly 700,000 registered apprentices are nationwide, according to the U.S. Department of Labor.

But the high-stakes bet is happening at an awkward moment. The Trump administration has spent months hobbling labor regulators, rolling back worker-friendly rules, antagonizing unions, slashing jobs across the federal government, and cutting funding for other workforce development programs. “People talk a good game about, ‘Oh, we need more [apprentices],’” AFL-CIO President Liz Shuler said in an interview. “But if you're not willing to invest in the infrastructure around that, it's meaningless.”

Some employers that heavily rely on apprenticeships are cautious about relying on them as the sole solution to meet the need for skilled workers. “We see Registered Apprenticeships as one of many different workforce development solutions," said Michael Altman, senior manager of federal regulatory affairs at the Associated Builders and Contractors. “There are many construction contractors that have their kind of on-the-job training that do not align with Registered Apprenticeships.”

Trump spoke confidently about apprenticeships during his first term. Still, DOL spent most of those four years developing a separate apprenticeship model that would give employer groups more control in designing and overseeing training programs. The Biden administration later weakened these efforts. As a result, the emphasis on Registered Apprenticeships, which unions and Democrats also support, marks a significant shift for Trump this time around. [Politico]


 

California Voter ID? Senator Tony Strickland and Assemblyman Carl DeMaio announce the filing of language for a VOTER ID initiative. This is the first step toward ultimately gathering signatures to get this on the November 2026 ballot. (Photo credit: @EytanWallace)

In a related story, CDM was picked as the Biggest Troublemaker and Most Duplicitous in a poll by Capitol Weekly, a publication of Open California, a 501(c)3 nonprofit organization founded in 2012 to inform, enlighten and educate Californians about public policy and state governance, and to provide a platform for engagement with public officials, advocates and political interests.

In their latest survey, conducted in partnership with Paul Mitchell of Political Data Inc., thousands of Capitol denizens were polled on their favorite and least favorite legislators.

“The bombastic Republican who has a long history of fighting with labor and generally not playing well in the policy sandbox took this category with 31.6 percent of the vote, by far the widest margin of victory of anything polled in this survey. Wiener and Sen. Aisha Wahab (D-Hayward) tied for second with 9.2 percent each. DeMaio seems to relish a fight, with his opponents on the left as well as with his presumed allies on the right. We could recount his greatest hits, but is there a point? Just about a year into his first term in the Assembly, the community seems to know what he’s about or at least has formed a strong opinion.”

I like Carl a lot. There is no more vigorous advocate for Fair and Open Competition in Sacramento than Carl.

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New CEQA Exemptions in 2025: Streamlining Housing & Infrastructure Development in California. On Monday, June 30, 2025, Governor Gavin Newsom signed into law two bills, AB 130 and SB 131, which provide new exemptions from and streamline the process under the California Environmental Quality Act (CEQA). AB 130 creates a statutory exemption for qualifying infill housing projects, simplifies the CEQA review process for residential projects in the coastal zone, and provides procedural changes to the administrative review process to prevent unnecessary delays for new development projects. SB 131 focuses on accelerating public interest projects, such as clean water infrastructure, park and trail projects, and community support facility projects, by creating new exemption categories and streamlining processes for projects that would otherwise be CEQA-exempt but for a single condition. Both bills also include non-CEQA-related provisions that seek to support infill and public interest development further. More

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Why One Union Became One of the Most Pro-Housing Voices in California. When Gov. Gavin Newsom last week signed the biggest effort in years to undo red tape for housing development, he singled out one group for credit. “This is the third of the last four years we’ve been together signing landmark housing reforms, and it simply would not have happened without the Carpenters,” Newsom said. The California Conference of Carpenters has emerged in recent years as one of the most influential voices on housing in Sacramento. The new law rolls back California’s landmark environmental review law to exempt urban apartment developments, an idea once considered a legislative third rail. It’s the most significant yet in a string of bills intended to boost housing production that lawmakers have passed with the union’s help. Story


 

America’s broken construction industry is a big problem for Trump

The Empire State Building, finished in 1931, was erected in just 410 days. That same year, construction on the Hoover Dam began. It was meant to take seven years, but was built in five. Such feats now seem almost unimaginable. Last year, half of America’s construction firms reported that commercial projects they were working on had been delayed or abandoned. In 2008, California voters approved a high-speed rail line connecting Los Angeles to San Francisco, with completion scheduled for 2020. It will be at least a decade late. America’s inability to build is a problem for Donald Trump. Although he has again delayed levying “reciprocal” tariffs until August 1st, the president’s commitment to reviving American manufacturing through protectionism is as strong as ever. But can the country build the factories, warehouses, and bridges needed to reindustrialize, and do so quickly enough? And if the administration is to achieve its ambition of winning the artificial-intelligence race, it will have to ramp up the construction of data centers and electrical infrastructure as well. Story

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New Challenger for Valadao Assemblymember Jasmeet Bains is running for Congress. The Bakersfield Democrat and physician announced today that she is running to replace Republican Rep. David Valadao next November, reports CalMatters’ Maya C. Miller. Bains was elected to the Assembly in 2022 and has garnered a reputation as a moderate who sometimes breaks ranks with her party. As the lone Democrat who voted against a 2023 law backed by Gov. Gavin Newsom to penalize oil companies for alleged price gouging, Bains was temporarily stripped of a committee post by the Assembly speaker at the time. She will challenge an incumbent who has represented the San Joaquin Valley in Congress for 10 of the last 12 years. A first-time congressional candidate, she is running to the right of fellow Democrat Randy Villegas, a progressive school board member in nearby Visalia who has run on an economic populist, anti-Trump platform. Before Trump signed the federal budget bill, Valadao repeatedly pledged that he would not support any measure that would harm Medi-Cal recipients. But each time the measure came before him, Valadao voted to advance the bill. More than two-thirds of Valadao’s district, which includes parts of Kings, Tulare, and Kern counties, are on Medi-Cal. Together with his eight other California GOP colleagues in the House, they represent 2.5 million Medi-Cal enrollees.

Valadao has proven incredibly difficult to unseat. He won his race last fall by more than three percentage points and has nearly $1.4 million on hand after raising over $870,000 in the previous quarter. Additionally, most of the Medicaid spending cuts won’t take effect until after the midterms, as Republicans have delayed work requirements until 2027 and financing changes until 2028. More

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California’s Wind and Solar Projects Face New Federal Hurdles California’s drive to run its electric grid entirely on wind, solar, and other clean sources of energy just got harder after President Donald Trump signed a sweeping new budget law. The changes in federal tax incentives could affect the feasibility of new solar and wind projects, as the state is counting on them to provide more electricity for Californians. A state law requires 100% of electricity to be powered by renewable, carbon-free sources by 2045, while also moving to electrify cars and trucks. Incentives championed by former President Joe Biden were rolled back, shortening the timeline for the industry to obtain tax credits. Developers of wind and solar projects now face a new, shorter deadline for receiving tax credits, most of which now expire at the end of 2027 instead of no sooner than 2032. Story

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Rooftop Reprieve Assemblymember Lisa Calderon agreed Tuesday to remove language from a bill that would have cut subsidies for many rooftop solar customers. The Senate Energy, Utilities and Communications committee eliminated a provision in AB 942 that aimed to reduce payments to homeowners who installed solar panels before 2023 for selling surplus energy back to the electric grid through a process called “net metering”. One group of customers, homeowners whose annual electric bills are under $300, would still be affected under the proposed law. They would no longer receive a credit funded with cap-and-trade auction revenues. This change enables California to better support households in need of additional assistance with their energy bills, the committee stated in its analysis. The amendments also removed a requirement that new homeowners receive fewer subsidies than previous owners when buying homes that received net-metering credits. The California Public Utilities Commission voted in 2022 to end net metering for new solar customers, deciding instead to lower payouts. [Politico]

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Rule Breakers Labor Secretary Lori Chavez-DeRemer kickstarted an “aggressive deregulatory” effort this week that would slash more than 60 department regulations, including eliminating overtime and minimum wage protections for home health care workers and union organizing rights for migrant farmworkers. The deregulation push comes after Trump’s January executive order mandated “agency leaders to cut 10 existing rules, regulations or guidance documents for every new one created.” Also on the chopping block: “affirmative action requirements for registered apprenticeships.”

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Top 10 CNBC rated states for overall quality of life, taking into account several factors:

1.     Vermont

2.     Maine

3.     New Jersey

4.     Minnesota or Maine, I always get them confused, one has maple syrup, I believe

5.     Connecticut

6.     Hawaii

7.     North Dakota

8.     tied among Massachusetts, Nebraska, Virginia

The bottom states for overall quality of life:

50.  Tennessee

49.  Texas

48.  Indiana

47.  Utah

46.  Louisiana

45.  Georgia

44.  Alabama

43.  Arkansas

42.  Oklahoma

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Newsom Signs Budget, Highlights Tax Reduction for Veterans Governor Gavin Newsom (henceforth GGN) signed the 2025-26 state budget on June 27^th. He issued a press release with the headline: “Governor Newsom signs balanced state budget that cuts taxes for vets, fully funds free school meals, builds more housing & creates jobs.” The governor signed the main budget bill (AB 102, Gabriel) and numerous trailer bills the same day they were approved by the Assembly and Senate. Newsom’s approval was expected, as he and the Democratic leaders of the Legislature had negotiated the budget privately and unveiled it three days before the votes. The new budget, which replaced the placeholder approved by the Legislature in mid-June to meet lawmakers’ constitutional deadline to approve a budget or forfeit their pay, includes $321 billion in total spending from all funds, up from $298 billion in the budget for the current fiscal year. The tax relief for some veterans is a relatively small part of the budget, estimated to reduce revenue by $85 million. The relief will come in the form of an income exclusion for up to $20,000 in federal military retirement benefits for veterans who have other income that doesn’t exceed $125,000 (or $250,000 for joint filers). The exclusion is retroactive to January 1 and will expire in 2030. The Legislative Analyst’s Office estimated this will result in a tax reduction for 130,000 veterans. “The maximum benefit available under the proposal equates to a $600 tax reduction for the average military retiree,” the analyst added. [CalTax]

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How Did the Santa Ana Streetcar Construction End Up Costing Over $150 Million Per Mile? Orange County’s grand jury is seeking answers about what went wrong with the Orange County Transportation Authority’s Santa Ana Streetcar, highlighting that the project is now six years behind schedule, nearly $400 million over budget, and has no clear ridership plan for a four-mile rail line. The streetcar has long been one of the county’s most contested projects, with the original idea first proposed in 2006 when Santa Ana officials presented the plan. Story

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And if you’re Not Livid Already, Grand Jury Finds 'Lavish Spending' by Stanislaus County Agency The executive director of the Stanislaus Council of Governments, Rosa De Leon Park, was placed on paid leave after a grand jury report criticized “rampant and lavish spending” at the agency, which works on city and county transportation issues. The grand jury questioned approximately $150,000 in spending. “The grand jury accuses the StanCOG Executive Director of using taxpayer dollars on rental cars, luxury hotels, meals, and first-class flights,” KCRA News reported June 27. “The grand jury report says the Executive Director drove in rental cars virtually nonstop for three and a half years, totaling more than $100,000. The report says a lot of the rentals were ‘elite, premium, and luxury vehicles.’ The Executive Director claimed the cars had been ‘free upgrades and not at her request,’ according to the report. However, the jury claims that internal documents … contradict that.”

Additionally, the grand jury flagged 39 nights spent at Ritz-Carlton hotels in five cities, costing over $33,000 in total. “The same credit card was used at other luxury hotels such as the Hotel del Coronado and Vespera on Ocean,” the report stated. The grand jury also questioned charges for a $560 suitcase, more than $1,900 paid to scammers without challenge, and over $400 for a pontoon boat rental. Over seven months, the grand jury found $10,000 worth of purchases with no receipts. “What the civil grand jury found is deeply troubling,” the Stanislaus Council of Governments said in a written statement. “We are a public agency that is trusted to safeguard taxpayer dollars and deliver results for our community. This alleged level of waste and mismanagement demands immediate action. We are deeply disturbed by the supposed waste, mismanagement, and lack of accountability within StanCOG’s management. If true, these actions are unacceptable.” [KCRA]

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Kevin Faulconer has a New Job Former San Diego Mayor Kevin Faulconer is now the CEO of the Lincoln Club. “… and he’s ready to protect jobs and push back against policies that make San Diego more expensive,” the Club wrote. Since leaving office in 2020, Faulconer has run for governor and county supervisor. He has also worked as a lobbyist. Fun fact: The last two elected Republicans in San Diego now lead the Chamber of Commerce (Chris Cate) and the Lincoln Club. [VOSD]

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White House Announces NLRB Nominations On July 17, 2025, the White House announced the nominations of Scott Mayer, Chief Labor Counsel at The Boeing Company, and James Murphy, a former career official with the National Labor Relations Board (NLRB), to serve as members of the NLRB. The Board has been without a quorum since the termination of former Board Member Gwynne Wilcox. The appointment of two new Republican members will enable the NLRB to issue new decisions and regulations once again. CDW’s statement on the nominations can be read here.

 

2025-26 State Budget Approved

On Friday, June 27, the Legislature passed, and the Governor signed, the 2025 Budget Act along with several related bills (including numerous trailer bills that implement policy changes tied to the budget). The package represented a final agreement among three parties (the Governor and the Democratic leaders of both houses; Republicans are no longer included as their votes are not necessary to enact a budget) for the 2025-26 state budget. The budget deal advances many of the Legislature’s priorities, such as reducing the Governor’s proposed cuts to the Medi-Cal program. It relies more on reserves and internal borrowing than what was proposed in the May Revision. In a notable, and probably unprecedented move, the entire budget deal was made contingent on the Legislature’s approval and the Governor’s signature on SB 131, a budget trailer bill that authorized a new CEQA exemption for infill housing projects and other environmentally-beneficial initiatives, as well as providing an extra $500 million appropriation to local governments through the Homeless Housing and Assistance Program (HHAP) in FY 2026-27.

Despite contentious hearings on a related housing trailer bill, AB 130, and significant opposition from the environmental community to SB 131’s changes to CEQA, the Legislature came together to pass both bills, which Governor Newsom signed on June 30. While all components of the final budget deal have been approved, action will continue on additional trailer bills throughout the rest of the 2025 legislative session, and modifications to the budget are entirely possible given the considerable uncertainty of fiscal policy at the federal level.

What wasn’t widely discussed in the media but was noted by several bloggers was the concessions made to construction unions.

John Fleishman wrote:

“Media outlets around the state are heralding this as a triumph for housing reform, praising streamlined permits, CEQA exemptions, and such. Yet behind this carefully crafted narrative lies a troubling truth: these bills represent yet another extreme expansion of pro-union labor mandates, but you would not know it because it is largely unreported by the media. With a liberal in Governor Newsom who has made no secret of his progressive agenda and a legislature that has received millions in union campaign contributions, such government overreach was predictable. The public gets promises of housing relief while powerful union interests secure unprecedented control over California’s construction industry. It is time to examine what these politicians are delivering to their constituents.

AB 130 strikes at the heart of competitive free enterprise in California. The bill creates new CEQA exemptions for infill housing developments that meet local zoning and planning standards, but the devil lives in the details, which most media outlets ignore. Section 25 of the legislation exempts housing projects from environmental review while imposing minimum wage requirements and prevailing wage rates on developments that were never subject to these costly mandates—a costly mandate in a bill that purports to make it easier to build housing.

Most small-scale residential construction projects are not currently covered by prevailing wage requirements, making this a seismic shift in California’s construction landscape. For San Francisco projects exceeding 50 units, the legislation establishes labor standards that must be enforced by joint labor-management committees—entities dominated by union representation. Section 26 further rigs the system by manipulating prevailing wage calculations to exclude non-union data, guaranteeing that union-negotiated rates become the mandatory standard.

While SB 131’s CEQA exemptions appear less explicit in their union favoritism, they trigger prevailing wage laws that funnel construction work directly into union hands. This represents the government picking winners and losers in the marketplace, not genuine policy reform designed to benefit California families.

CEQA reform has long been a priority for Republicans and business advocates, who recognize that excessive environmental regulations strangle economic growth and housing development. Streamlining environmental review for appropriate projects represents sound policy that could benefit California families struggling with housing costs.

However, Newsom and the Democrats in the legislature have weaponized this reform to serve their union allies. By tying CEQA exemptions exclusively to projects that accept union labor mandates, they have transformed a pro-business reform into a tool for government favoritism. Only developments that surrender to these costly labor requirements receive regulatory relief, while projects seeking to operate competitively face the full burden of environmental bureaucracy.

This represents the worst kind of crony capitalism—government using its regulatory power to favor politically connected interests over fair competition. Rather than consistently applying CEQA reform across all qualifying projects, Sacramento politicians use regulatory relief as a carrot to force compliance with their union agenda.

I note that some Republicans voted for this, and I wonder if they slept soundly last night, knowing they used the coercive power of government this way.”

That’s not to say that Governor Gavin Newsom didn’t TRY to make these CEQA by-pass projects more affordable. An earlier proposal included some new language:

• California Environmental Quality Act (CEQA) exemptions for housing projects of up to 25 units (10 units in San Francisco) without Labor Code prevailing wage/apprenticeship requirements.
• For projects exceeding 25 units (or 10 units in San Francisco), new construction labor standards may be used as an alternative to Labor Code prevailing wage and apprenticeship requirements.
• In Los Angeles, Marin, Monterey, Napa, Orange, Riverside, Sacramento, San Bernardino, San Diego, Santa Barbara, Santa Cruz, Solano, Sonoma, and Ventura counties, state law would require that 60% of the construction workers shall be paid at a wage rate of no less than $36 per hour and 100% at a wage rate of no less than $24 per hour.
• In Alameda, Contra Costa, San Mateo, and Santa Clara counties, and the City and County of San Francisco, 60% of the construction workers shall be paid at a wage rate of no less $40 per hour and 100% of the construction workers shall be paid at a wage rate of no less $27 per hour.
• For all other counties, 60% of the construction workers shall be paid at a wage rate of no less than $28 per hour and 100% of the construction workers shall be paid at a wage rate of no less than $20 per hour. 
• These new wage rates would be reduced by the hourly cost of health benefits.
• These new wage rates would be adjusted annually based on CPI.
• There would be no apprenticeship requirement.

This alternative was hit with a buzzsaw of opposition from Democrats and their union supporters and the language was quickly dropped.

Time will tell if these changes make a difference and increase the availability of new homes, or slow their inflationary increase.

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Litigation Financing Measure Becomes Law, Delivering Win for Ariz. Legal System Arizona Gov. Katie Hobbs on Friday signed legislation establishing new requirements around third-party litigation financing, marking a win for the Arizona business community concerned about the increasing prevalence of outside funders driving up the costs of litigation. The measure, SB 1215, sponsored by Sen. Vince Leach (R-SaddleBrooke), sets the stage for continued reform of lawsuit lending practices. The new law targets a fast-growing industry that funds lawsuits in exchange for a share of potential settlements. While once viewed as a novel tool for legal access, critics argue that the practice has evolved into an opaque, unregulated sector that distorts the legal system and even invites foreign interference in U.S. court cases. Story

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Rule Breakers Labor Secretary Lori Chavez-DeRemer kickstarted an “aggressive deregulatory” effort this week that would slash more than 60 department regulations, including eliminating overtime and minimum wage protections for home health care workers and union organizing rights for migrant farmworkers. The deregulation push comes after Trump’s January executive order mandated “agency leaders to cut 10 existing rules, regulations or guidance documents for every new one created.” Also on the chopping block: “affirmative action requirements for registered apprenticeships”.

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New Supervisor Imperial Beach Mayor Paloma Aguirre coasted to an easy victory in a special election for an open seat on the San Diego County Board of Supervisors. Votes are still being tabulated, but Chula Vista Mayor John McCann, down by about 6 points, conceded the race and said in a statement that he had called Aguirre to congratulate her on her win. Both Aguirre, a Democrat, and McCann, a Republican, issued statements that included pledges to address the sewage from Mexico that contaminates the Tijuana River and befouls south county beaches. That’s undoubtedly one of the most pressing issues in the district, one that has also attracted the attention of the Trump administration. Most of the attention outside the district, however, has been on how the results will break a partisan divide on the powerful Board of Supervisors. Aguirre’s win means the board will again have a 3-2 Democratic majority, which will matter as the county wrestles with changes to Medicaid in the Republican megabill and other looming challenges.

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OBBB Smackdown: Governor Newsom told reporters that Central Valley Rep. David Valadao “might as well resign early and I can call a special election” if he votes for Trump’s megabill, which is awaiting House approval. “If he votes for the bill, he should be voted out, period, full stop,” the governor said, calling the legislation “one of the most calamitous and devastating bills of our lifetime.” Newsom slammed Valadao, one of the state’s more vulnerable Republicans, at a Los Angeles news conference touting new film tax credits in the freshly-signed state budget. The governor said that any vote for the federal OBBB would be "the ultimate betrayal,” noting more than 60 percent of Valadao’s constituents rely on Medi-Cal, the state’s version of the federal Medicaid health insurance that covers the poorest Americans. The legislation could boot millions of Californians off the program to help Republicans fund tax cuts. [SV Sun]

Threat to WECA Apprenticeship Program - AB 889

We are concerned that Assembly Bill 889 by Assembly Member Heather Hadwick (R) from Northeastern California (AD 1) will reduce journey worker contributions to WECA’s apprenticeship program. To date, Hadwick has refused to adopt modest amendments to her bill that we have suggested.

We are keeping a close eye on when AB 889 could be scheduled for a hearing in the Senate Labor, Public Employment and Retirement Committee, but anticipate an early July hearing.

As this proposed legislation continues through the process, we will be reaching out to you to contact your local Senator when the time is right – please keep an eye out for that request in future communications.

Your support will be crucial. 

If you have questions about AB 889 and our efforts, contact Richard Markuson or Rex Hime, richard@pacificadvocacygroup.com or rhime@goweca.com.

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Biden PLA Mandate to Stay, Per Trump Trump’s OMB director Russell Vought said the Trump administration supports the use of PLAs when those agreements are “practicable and cost effective, and blanket deviations prohibiting the use of PLAs are precluded.” The Trump administration has indicated it will not rescind a Biden-era rule mandating the use of project labor agreements on large publicly funded jobs. After months of court cases and federal agencies announcing deviations from Federal Acquisition Regulation rules regarding PLA use, a Thursday Office of Management and Budget memo to federal agencies and department heads sought to unmuddy the waters. (Excuse me while I go vomit)

Michael Bellaman, president and CEO of Associated Builders and Contractors, said the decision “cannot be reconciled with the president’s philosophies of merit, fairness, and nondiscrimination because it inhibits fair and open competition and prioritizes special interests over taxpayers and workers.”

Russell Vought, director of the White House Office of Management and Budget, laid out the Trump administration’s position in a June 12 memo in response to agencies issuing what was termed “overly broad” deviations from Federal Acquisition Regulation provisions related to the labor pacts.

Readers will need to be sitting down as they read this article because it represents the first time DJT said one thing during campaigning, and another thing after.

The move follows Defense Secretary Pete Hegseth saying in February that he was directing the U.S. Defense Dept. to remove language requiring agreement mandates from contracts worth $35 million or more, and the U.S. General Services Administration announcing soon after it was also removing requirements from land port of entry projects.

Curiously, neither the State Building and Construction Trades Council nor the NBTU have said anything about Vought’s memo. I reached out to my contacts in the Trump Administration, but they hadn’t been given the spin document yet.

Bloomberg captured it succinctly: “The White House budget office is pushing federal agencies to use union project labor agreements, an unexpected move that will be a major win for organized labor and continue a Biden-era policy.” Story

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Alarms Sound Over Record State Spending and Growing Deficits Well on his way to his race for President, or arrest, Governor Gavin Newsom is dealing with some big budget mess. Rob Lapsley summed it up as “California is poised to continue with near-record-breaking spending, despite economic uncertainty, especially around federal funding. The Legislature’s plan commits more than $232 billion from the General Fund, nearly $90 billion in special funds, and billions more in bond expenditures, all while the state continues to face a chronic structural deficit of $10 to $20 billion in the General Fund and billions more in special funds.” More

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U.S. Steel Power Grab Should Terrify Every American Jon Fleischman has been tracking the acquisition of U.S. Steel by Nippon Steel, and one detail he believes should make every freedom-loving American very, very worried. Buried in this $14.9 billion deal is what is called a “golden share”—a single piece of preferred stock that hands the federal government veto power over a private company’s most basic decisions. Under this deal, the federal government can now block U.S. Steel’s board appointments, dictate where they build factories, and override countless other business decisions. He argues, “This isn’t capitalism—this is the kind of state control you see in China, where the Communist Party pulls the strings of every major corporation, or in Russia, where Putin’s cronies decide which businesses live or die.” More

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Legislature Approves Budget Without Union-Supported Tax Hikes and Missing Many Key Elements. Both houses of the Legislature approved a placeholder budget (SB 101, Wiener) on June 13 that doesn’t include any of the corporate tax increases sought by progressive lawmakers and public employee labor unions in recent weeks. The legislative plan directs the legislative analyst to “develop tax reform options” by November for consideration in next year’s budget. It includes the governor’s proposal to require financial institutions to use a single sales factor when apportioning income to the state of California. Several lawmakers made it clear during committee hearings that the “budget reforms” they support involve large tax increases targeted at major corporations, especially those with large workforces that do not provide healthcare benefits to all their workers. [Caltax]

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Supervisor Race Enters Home Stretch

In two weeks, South San Diego County voters will determine San Diego’s political future. The race to represent a vacant South County seat on the County Board of Supervisors is down to the wire. The deadline to vote is July 1. Supporters of Imperial Beach Mayor Paloma Aguirre and Chula Vista Mayor John McCann have spent close to $1 million so far, most of it in the past few weeks, according to the latest analysis. Polls indicate a tight race, with neither candidate holding a decisive lead. VOSD South County reporter, Jim Hinch, has followed the election closely. Check out their South County Decides homepage for full coverage (including in-depth Q&As with the candidates) analysis of top issues and the latest on the money race.

Hinch also delved into each candidate’s background, including McCann’s ties to a businesswoman convicted of fraud, questions raised by a real estate promotion and Aguirre’s record of unpaid bills. Last week, responding to questions about Aguirre’s failure to pay a three-year-old $2,600 tax bill on the Imperial Beach condominium she and her husband own, a campaign spokesperson said Aguirre had arranged a payment plan and was caught up on the bill. A copy of that payment plan later sent by Aguirre’s campaign shows Aguirre and her husband arranged the plan three weeks ago, on May 21. The previous day, May 20, conservative commentator Amy Reichert had made the delinquent tax bill a campaign issue by posting a screenshot of it. Asked why Aguirre and her husband waited three years to address the bill, campaign consultant Dan Rottenstreich said the 2022 bill “got lost in the shuffle.”

“After a number of letters [from county tax authorities] over a couple of years, [Aguirre and her husband] called the tax collector and mortgage company. They started dealing with it,” Rottenstreich said. “It takes time.” Rottenstreich pointed out that Aguirre and her husband have paid every other property tax bill on their condo “with the exception of this one supplemental tax bill that was not paid initially and then they lost track of.” Rottenstreich said the timing of Reichert’s screenshot posting was unrelated to Aguirre’s handling of the tax bill. “People misplace bills. It’s $2,600,” Rottenstreich said. “She’s not running to be the County Assessor. She’s running to be County Supervisor.” [Voice of San Diego]

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California Construction Law: Navigating Key Changes and Insights Over the past year, the California Legislature introduced significant additions and amendments to more than 50 statutes, including 14 statutes that directly affect contractor licensing laws and construction practices. These legislative developments reflect the state’s growing emphasis on labor and employment standards, energy sustainability, healthcare infrastructure, affordable housing, and other key issues. This article examines key developments in California construction law, with a particular focus on AB 2293, AB 2235, AB 1034, AB 2579, AB 2696, SB 1162, and AB 3190. Story

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Never Say Never Lawmakers on Capitol Hill are still unveiling major labor legislation despite GOP control of Congress, which may make it hard to advance. [Politico]

PRO Act (registration required for links in this section): Makes it easier for unions to organize and collectively bargain by strengthening the National Labor Relations Act. Reps reintroduced the bill. Bobby Scott (D-Va.) and Brian Fitzpatrick (R-Pa.) in the House, and Sen. Bernie Sanders (I-Vt.) unveiled a companion bill the Senate.

Faster Labor Contracts Act: Prevents employers from slow-walking union negotiations by requiring talks to begin within 10 days after a union is recognized. Sen. Josh Hawley (R-Mo.) introduced the bill in March.

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Were Cuts in Rooftop Solar Payments Legal? California Supreme Court Hears Arguments The California Supreme Court heard arguments recently in a case that could be pivotal to the spread of rooftop solar panels in California. Environmental and consumer advocacy groups are seeking to reverse a 2022 decision by state regulators to slash by around 75% the rates paid to compensate customers with solar installations for the excess energy they generate. The move, intended to shield non-solar customers from unfair cost burdens, sent solar hookups plummeting.

Three environmental groups bringing the case — the Center for Biological Diversity, The Protect our Communities Foundation, and the Environmental Working Group — argue that the California Public Utilities Commission didn’t properly consider benefits to customers and disadvantaged communities when it changed the program. The commission argued the policy strikes a balance between affordability for all customers and encouraging renewable energy choices. The court’s decision is expected within about a month. Story

DIR Director Hagen Resigns Department of Industrial Relations Director Katie Hagen is leaving DIR for the private sector, according to internal sources. Hagen has served for five years in what one senior manager describes as a chaotic tenure.

DIR managers criticized Hagan, stating that she would make decisions but not allow enough time for them to take effect before changing course again. She will become the CEO of CPS HR Consulting in July. The firm specializes in serving public agencies, and its website indicates that it offers testing, recruitment, personnel selection, and organizational performance improvement services. It has around 120 full-time staff and 200 project consultants. According to the firm, it serves approximately 1200 public agencies and nonprofit clients throughout the United States. DIR has encountered significant personnel issues and struggled to staff up to capacity, severely limiting its ability to fulfill its mission. Managers unanimously attribute the problem to a complex hiring process. Gov. Gavin Newsom appointed Hagen as DIR director in March 2020, just as the pandemic shutdowns were beginning. Before her appointment at DIR, Hagen was the chief deputy director at the California Department of Tax and Fee Administration. [Cal-OSHA Reporter]

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Suspense Day California lawmakers rejected hundreds of bills on Friday, May 23^rd to save costs amid a $12 billion budget deficit. The deficit has worsened due to potential federal funding cuts and increased spending on healthcare for low-income residents. Assembly Appropriations Committee Chair Buffy Wicks said, “Many good bills will fall by the wayside today,” citing the challenging budget environment that limits the expansion of programs and agencies.

The procedure known as the “suspense file” is one of the state Legislature’s most confidential and expedited biannual hearings. During this process, the chairs of the Assembly and Senate Appropriations committees swiftly reject costly proposals with minimal explanation, often exerting more stringent actions during times of budget constraints.

Bills that would incur a cost of at least $50,000 in the Senate and $150,000 in the Assembly are placed in suspense files by the appropriations committees. Initially designed to enable lawmakers to collectively evaluate policy proposals involving state expenditures, balancing them against one another, this mechanism has become well-accepted for its secondary purposes. In Sacramento, it is an open secret that the suspense file proceedings provide legislators an opportunity to terminate contentious bills clandestinely, cater to influential special interests, or reduce the volume of legislation for floor debate. Decisions on whether bills should advance to the full Senate or Assembly, or be held, are made in advance in private. The public hearings merely serve to announce these decisions rapidly.

The Senate Appropriations Committee rejected 29% of the 432 bills listed, although some were retained for further consideration next year. This reflects a more aggressive reduction compared to May of the previous year. Similarly, the Assembly Appropriations Committee dismissed 35% of the 666 measures on its suspense file, a rate consistent with that of the preceding year. Legislators had been advised to minimize the financial impact of their proposals, according to Wicks. 

State Budget The Legislative Analyst assessed the state’s multiyear budget condition under the Governor’s May Revision policies. As shown below, their estimates project operating deficits ranging from $10 billion to $20 billion over the next 3-year period. These shortfalls represent future budget problems that would require additional budget-balancing decisions. That said, the actual budget condition will differ, possibly significantly, from these projections, primarily due to revenue volatility. While their revenue forecast is designed to balance the risk of over- and underestimation, history shows that actual revenues can vary from the median projection by billions or even tens of billions of dollars over a multi-year period.

Several Democratic lawmakers and progressive interest groups expressed concerns about Governor Gavin Newsom's revised budget proposal last week, particularly regarding the proposed reduction in Medi-Cal benefits for individuals who are not legal state residents.

Critics suggested tax increases to fund higher spending. Assembly Member Patrick Ahrens called for reviewing corporate tax breaks, including incentives for job creation in California. Assembly Member Cecilia Aguiar-Curry, representing the Legislative Women’s Caucus, urged lawmakers to reject proposed cuts to childcare by Newsom and instead provide cost-of-living increases and additional funding for childcare programs.

David Huerta, president of SEIU California and SEIU-United Service Workers West, stated that SEIU members vowed to fight for jobs and workers' values. They urged legislators to reject proposed budget cuts and find revenue options to reinvest in improving lives and opportunities in California. Over 100 organizations signed an SEIU letter advocating for increased taxes, according to Luan Huynh from the Coalition of California Welfare Rights Organizations.

The California Budget and Policy Center, known for advocating higher taxes on employers in the state, has criticized the governor’s proposal. They described the proposed expansion of tax credits for film studios as a “misguided” measure that would compromise the state's ability to assist Californians in managing the high cost of living and meeting basic needs. Governor Newsom has emphasized that the tax credit is essential for retaining film industry jobs within California.

During a press conference on May 19 addressing the Medi-Cal reductions, leaders from the Democratic Legislative Latino Caucus suggested that tax increases should be considered in budget discussions. According to KCRA News, the Caucus did not present specific solutions. Still, it fielded multiple questions regarding potential cuts to other state services or the creation of new taxes to cover additional costs.

Newsom, who many believe is running for President in 2028, is unlikely to approve tax increases but will face a tough final two years with an unbalanced budget.

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California State Assembly Passes Bill to Break NEM Contracts California politicians continue to discover new ways to devalue home solar. The California Assembly Appropriations Committee passed Assembly Bill 942, which will void existing solar contracts when homeowners sell their homes. “The agreement language that every solar user signs is abundantly clear that the 20-year net metering terms are attached to the solar system and not the property owner,” explained California Solar & Storage Association (CALSSA) executive director Brad Heavner. “Reducing net metering compensation when homes are sold or transferred means solar users, who are mostly middle- and working-class households, would no longer be able to capture the value of their solar investment when their property is sold.” But the bill had additional elements.

The bill’s author, former Edison employee Assemblymember Lisa Calderon, exempted public schools and farms from her bill as both opponents and proponents ramp up their fight ahead of a key legislative deadline this Friday. Then, the Assembly suspended a procedural waiting period to advance her bill Tuesday night, leaving solar advocates fuming.

The Assembly voted to suspend a rule requiring the chamber to wait a "full calendar day" after any amendments to take up her bill. After approving the rule waiver, lawmakers then approved the bill 46-14, sending it on to the state Senate. The bill cleared the 41-vote minimum to pass the Assembly. It drew 'no' votes from Democratic Assemblymembers Rebecca Bauer-Kahan, Robert Garcia, Darshana Patel and Chris Ward, as well as support from Republican Assemblymembers Heath Flora and Juan Alanis.

The current version of the bill would apply the new, lower payments rooftop solar customers get for selling energy back to the grid to pre-2023 rooftop solar customers upon the sale of a home. It would also eliminate the credit ratepayers get on their bills from cap-and-trade revenues for those who have rooftop solar.  Story

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Arizona Moves to Add Heat Protections

• Arizona Gov. Katie Hobbs has signed an executive order directing the Arizona Division of Occupational Safety and Health to form a Workplace Heat Safety Task Force.
• Composed of industry leaders, worker representatives, and occupational safety and health experts, the task force will be responsible for drafting and recommending heat guidelines for employers before the end of the year.
• This follows the July 2023 launch of Arizona’s Heat Stress State Emphasis Program, created to reduce heat-related illnesses and injuries in the workplace through inspections, training, and compliance assistance.
• READ MORE

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In related news

Arizona Chamber And Ariz. Manufacturers Council Join Task Force On Workplace Heat Safety The above executive order will comprise labor groups, occupational safety advocates, and private industry representatives, including the Arizona Chamber of Commerce & Industry and the Arizona Manufacturers Council. The task force will be responsible for drafting and recommending heat guidelines for employers before the end of the year, building on the state Industrial Commission’s Heat Stress State Emphasis Program (SEP) that was launched in July 2023, which was created to reduce heat-related illnesses and injuries in the workplace through inspections, training, and compliance assistance. More

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CAL/OSHA's Proposed Revisions to Its Draft Workplace Violence Prevention Regulation On May 13, 2025, Cal/OSHA released a new discussion draft of its proposed regulation on Workplace Violence Prevention in General Industry. This latest version updates the July 15, 2024 draft previously blogged about, and reflects stakeholder input gathered through the advisory committee process. More

 

WECA Legislation

* PLAs

(AB 1280 Garcia, D) Qualifies thermal energy storage for multiple financial incentive programs administered by the California Infrastructure and Economic Development Bank (IBank) and the California Energy Commission (CEC). Requires an industrial decarbonization project funded by the I-Bank to include a project labor agreement and a community benefits fund or agreement.  (Based on 06/02/2025 text). Status: 06/02/2025 - Read third time and amended. Ordered to third reading.
WECA Position: Oppose

ADA

(SB 84 Niello, R) One of two ABA bills, SB 84 would prohibit construction-related accessibility claims under the ADA and the Unruh Civil Rights Act from being initiated until a small business defendant has been served with a demand letter specifying each alleged violation and given 120 days to correct them.  (Based on 05/23/2025 text). Status: 05/27/2025 - Read second time. Ordered to third reading.
WECA Position: Support

APM/DB/CMaR

(SB 272 Becker, D) SB 272 authorizes the San Mateo County Transit District (SamTrans) to enter into job order contracts (JOCs). Requires JOCs to be subject to the project labor agreement (PLA) between SamTrans and the San Mateo Building Trades Council or an amendment or extension of that agreement.  (Based on 03/18/2025 text). Status: 05/12/2025 - Referred to Com. on L. GOV.
WECA Position: Support If Amended

Apprenticeship

(AB 291 Gipson, D) Establishes the Credentialed Educator Apprenticeship Act at the Commission on Teacher Credentialing (commission) in partnership with the Division of Apprenticeship Standards (DAS).  (Based on 04/21/2025 text). Status: 05/27/2025 - Read second time. Ordered to third reading.
WECA Position: Watch

(SB 75 Smallwood-Cuevas, D) This bill requires the California Workforce Development Board (CWDB) to establish the Reentry Pilot Project in the Counties of Alameda, Los Angeles, and San Diego to provide workforce training and transitional support to formerly incarcerated individuals committed to careers in the skilled trades. It also requires the CWDB to designate a qualified nonprofit organization in each pilot county to manage and monitor funds and be accountable to the board for proper expenditure and reporting.  (Based on 03/26/2025 text). Status: 06/02/2025 - Read third time. Passed. (Ayes 38. Noes 0.) Ordered to the Assembly.
WECA Position: Support

BESS

(AB 303 Addis, D) This proposed legislation extends the current law until June 30, 2029, allowing applicants to submit certification requests for eligible energy storage facilities with a capacity of 200 megawatt-hours or more to the State Energy Resources Conservation and Development Commission. The bill clarifies that this does not apply to battery energy storage systems, requiring the commission to reject pending applications related to batteries. Furthermore, it prohibits development projects with such systems within 3,200 feet of sensitive receptors or on environmentally sensitive sites.  (Based on 01/23/2025 text). Status: 04/02/2025 - In committee: Hearing postponed by committee.
WECA Position: Oppose

(SB 283 Laird, D) Senate Bill 283 enacts the Clean Energy Safety Act of 2025, which requires specified fire protection standards to apply to BESS facilities. Co-sponsored by the California State Association of Electrical Workers and the Coalition of California Utility Employees. CALSSA opposes, arguing the bill would impose additional and duplicative requirements on systems that are already governed by existing California Building Standards Codes and local permitting processes. These overlapping regulations would complicate, rather than streamline, ESS deployment, especially in the behind-the-meter market segment, without meaningful additional safety precautions.  (Based on 05/01/2025 text). Status: 05/28/2025 - Read third time. Passed. (Ayes 38. Noes 0.) Ordered to the Assembly. In Assembly. Read first time. Held at Desk.
WECA Position: Oppose

Business Issues

(AB 1104 Pellerin, D) The bill proposes that nonresidential photovoltaic facilities producing less than one megawatt can qualify for NEM tariffs, even if contractor compliance issues exist. Such contractors are granted 90 days to rectify unintentional violations, avoiding penalties if promptly addressed and proven corrected.  (Based on 05/05/2025 text). Status: 05/28/2025 - In Senate. Read first time. To Com. on RLS. for assignment.
WECA Position: Support

(AB 1327 Aguiar-Curry, D) This author-sponsored bill would enable consumers to cancel home solicitation contracts, home improvement contracts, and seminar sales contracts via email.  (Based on 04/03/2025 text). Status: 05/21/2025 - Referred to Com. on JUD.
WECA Position: Watch

(SB 61 Cortese, D) Limits the retention payment amount for a private work of improvement to not exceed five percent, subject to certain exceptions.  (Based on 03/26/2025 text). Status: 05/12/2025 - Referred to Com. on JUD.
WECA Position: Support

Codes

(AB 306 Schultz, D) It proposes a moratorium on the adoption or modification of new state and local building standards affecting residential units from June 1, 2025, to June 1, 2031, with limited exceptions.  (Based on 05/13/2025 text). Status: 05/13/2025 - From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on HOUSING.
WECA Position: Support

(SB 682 Allen, D) This bill prohibits a person from distributing, selling, or offering for sale covered products that contain intentionally added PFAS beginning January 1, 2027. Prohibits certain specified products that contain intentionally added PFAS unless the Department of Toxic Substances Control (DTSC) made a determination that the use of PFAS in the product is a currently unavoidable use. By banning essential materials—from heat pumps to electrical cabling—SB 682 would drive up housing costs, jeopardize safety, and further exacerbate the state’s housing crisis.  (Based on 05/23/2025 text). Status: 05/27/2025 - Read second time. Ordered to third reading.
WECA Position: Oppose

Construction Practices

(SR 41 Niello, R) Would resolve that the Senate hereby recognizes the week of May 19, 2025, to May 23, 2025, inclusive, as Contractor Fraud Awareness Week throughout the State of California and encourages the citizens of California to become familiar with contractor fraud and to participate in the various programs taking place during the week.  (Based on 05/20/2025 text). Status: 05/19/2025 - Read. Adopted. (Ayes 36. Noes 0.)
WECA Position: Support

Energy

(AB 942 Calderon, D) Makes three changes to Net Energy Metering (NEM) customer-generator arrangements: 1) sunsets legacy NEM contracts after 10 years; 2) requires new property owners inheriting solar systems to take service under the current, not the inherited, NEM tariff; and 3) ends Climate Credit allocations to NEM customers starting on January 1, 2026.  (Based on 06/02/2025 text). Status: 06/02/2025 - Read third time and amended. Ordered to third reading.
WECA Position: Oppose

(SB 567 Limón, D) This bill establishes the Gravity-Based Energy Storage Well Pilot Program until January 1, 2035, and authorizes the State Oil and Gas Supervisor to allow the conversion of 250 oil and gas wells for use as gravity-based energy storage wells, as defined, to evaluate their use to generate energy safely.  (Based on 05/23/2025 text). Status: 05/27/2025 - Read second time. Ordered to third reading.
WECA Position: Watch

Housing

(SB 681 Wahab, D) This bill makes several changes to laws governing housing approvals, elements, common interest developments, and building standards. Among other provisions, it prohibits landlords from charging tenants certain fees, limits the application screening fee a landlord can charge, and deems subordinate mortgages abandoned if the mortgage servicer fails to provide certain notices.  (Based on 05/23/2025 text). Status: 05/27/2025 - Read second time. Ordered to third reading.
WECA Position: Support If Amended

Labor Law

(AB 1234 Ortega, D) AB 1234 (Ortega) penalizes defendants for exercising their right to a hearing on the merits. It creates a new, automatic thirty percent penalty that would apply regardless of whether the defendant acted in good faith.  (Based on 05/23/2025 text). Status: 05/27/2025 - Read second time. Ordered to third reading.
WECA Position: Oppose

(AB 1331 Elhawary, D) AB 1331 functionally prohibits the use of surveillance in every California workplace because of its overbroad language and, in doing so, undermines workplace safety.  (Based on 05/23/2025 text). Status: 05/27/2025 - Read second time. Ordered to third reading.
WECA Position: Oppose

(SB 261 Wahab, D) This bill attempts to recover unpaid wages owed to workers by: 1) requiring the Labor Commissioner (LC) to post a copy of an order, decision, or award (ODA) on a claim for unpaid wages on the division’s internet website; 2) prescribing when a posting can be removed; 3) requiring notification by certified mail to employers before the posting of an ODA; 4) subjecting, for final judgments unsatisfied after 180 days, the employer to a civil penalty not to exceed three times the outstanding judgment amount; and 5) authorizing the LC to adopt regulations and rules of practice and procedures to enforce these provisions. Posting every single ODA online effectively creates a shopping list for trial attorneys  (Based on 05/23/2025 text). Status: 05/27/2025 - Read second time. Ordered to third reading.
WECA Position: Oppose

(SB 294 Reyes, D) This bill 1) requires employers to provide a stand-alone written notice annually to each employee informing them of their rights under state and federal law, as specified; 2) directs the Labor Commissioner to develop separate videos for employers and employees informing them of their responsibilities and rights under state and federal law, as specified; 3) requires employers to contact an employee’s designated emergency contact if the employee is arrested or detained pursuant to an enforcement action; 4) authorizes an employee’s emergency contact to collect all wages owed to an employee and to file a wage claim on the employee’s behalf if the wages are not lawfully paid; and 5) authorizes various penalties for noncompliant employers.  (Based on 05/01/2025 text). Status: 05/28/2025 - Read third time. Passed. (Ayes 28. Noes 10.) Ordered to the Assembly. In Assembly. Read first time. Held at Desk.
WECA Position: Watch

(SB 310 Wiener, D) Existing law makes every person who fails to pay the wages of each employee subject to a specified penalty. Existing law requires the penalty to either be recovered by an employee as a statutory penalty or by the Labor Commissioner as a civil penalty, as prescribed. This bill also would permit the penalty to be recovered through an independent civil action, as specified.  (Based on 04/10/2025 text). Status: 05/23/2025 - From committee: Do pass. (Ayes 5. Noes 1.) (May 23). Read second time. Ordered to third reading.
WECA Position: Oppose

(SB 464 Smallwood-Cuevas, D) SB 464 would encourage new, costly litigation against employers based on the publication of broad, unreliable data collected by the state.  (Based on 05/01/2025 text). Status: 06/02/2025 - Read third time. Passed. (Ayes 27. Noes 9.) Ordered to the Assembly.
WECA Position: Oppose

Land Use

(AB 76 Alvarez, D) Existing law sets rules for how local agencies dispose of surplus land, which is land declared unnecessary for their use through formal action. "Exempt surplus land" is land meeting criteria like having at least 25% of units for lower-income households and a minimum average density of 10 units per acre. This bill proposes changing these requirements so that 25% of units, excluding those for academic institution students, faculty, or staff, must be for lower-income households. The density requirement remains 10 units per acre, calculated over the entire area, including housing for students, faculty, and staff.  (Based on 04/21/2025 text). Status: 05/21/2025 - Referred to Com. on L. GOV.
WECA Position: Support If Amended

Licensure

(AB 485 Ortega, D) Supported by unions, AB 485 requires state license agencies like CSLB to deny an application or renewal to an employer with any unsatisfied final judgment for nonpayment of wages. Only opponent is the hospital association.  (Based on 03/03/2025 text). Status: 05/27/2025 - Read second time. Ordered to third reading.
WECA Position: Support

(AB 521 Carrillo, D) Provides that the Contractors State License Board is not liable for legal fees or costs related to actions against a contractor when the contractor has a deposit filed with the Board in lieu of a bond. Specifically, this bill provides that the Contractors State License Board is not liable for any legal fees or costs in any action, as specified, against any deposit filed with the Board, regardless of when it was filed with the registrar.  (Based on 02/10/2025 text). Status: 05/14/2025 - Referred to Coms. on B. P. & E.D. and JUD.
WECA Position: Support

(AB 559 Berman, D) This bill expands "home improvement" to include construction related to ADUs on residential properties. It imposes penalties for licensees or unlicensed individuals who take excessive down payments or progress payments that cause financial loss to consumers, with license revocation and a minimum $10,000 civil penalty for violators.  (Based on 03/27/2025 text). Status: 05/14/2025 - Referred to Coms. on B. P. & E.D. and JUD.
WECA Position: Watch

(AB 667 Solache, D) Requires licensing boards within the Department of Consumer Affairs (DCA) to allow applicants who cannot read, speak, or write in English to use an interpreter when taking examinations required for licensure or certification.  (Based on 04/09/2025 text). Status: 05/27/2025 - Read second time. Ordered to third reading.
WECA Position: Watch

(AB 742 Elhawary, D) Requires CSLB to prioritize license applications from contractors who are descendants of American slaves.  (Based on 03/13/2025 text). Status: 05/27/2025 - Read second time. Ordered to third reading.
WECA Position: Watch

(AB 1002 Gabriel, D) AB 1002 will allow the DOJ to bring a civil action that would revoke or suspend an existing contractor license, or bar the licensure or deny the re-licensure of a contractor previously found to be illegally withholding wages. CEA thinks they'll be okay so long as jurisdictional issues can’t be included in the process. The bill was triggered by West Coast Drywall, which was a pretty bad actor.  (Based on 03/28/2025 text). Status: 06/02/2025 - Read third time. Passed. Ordered to the Senate.
WECA Position: Watch

Public Works

(AB 538 Berman, D) Section 1776 already requires the production of CPRs within 10 days of receipt of a request, and AB 538 doesn't change that. Instead, the bill's intent appears to address situations where a request for CPRs is made through the awarding body, but the awarding body doesn't have the records in its possession. These amendments require the awarding body to obtain the documents from the "relevant contractor." If the contractor doesn't comply, the awarding body must notify DLSE, who can seek penalties.  (Based on 05/23/2025 text). Status: 05/27/2025 - Read second time. Ordered to third reading.
WECA Position: Watch

(AB 963 Petrie-Norris, D) Requires owners and developers undertaking any public works project to make specified records available to the Division of Labor Standards Enforcement (DLSE), multi-employer Taft-Hartley trust funds, and to joint labor-management committees (JLMCs). Supported by unions, opposed by developers and contractors. Opposed by California Housing Consortium, California Housing Partnership Corporation, Housing California. (Based on 02/20/2025 text). Status: 06/02/2025 - Read third time. Passed. Ordered to the Senate.
WECA Position: Watch

Taxes

(SB 573 Smallwood-Cuevas, D) SB 573 would replace the state’s existing corporate tax rate with a tiered tax rate based on the difference between the median employee pay and the pay of the highest-paid executive. The rates would become active on January 1, 2026, ranging from 7 percent to 13 percent, depending on the pay ratio. The rate would increase by 50 percent if a company reduces employees in the United States by 10 percent or more and increases foreign contracted employees.  (Based on 04/02/2025 text). Status: 04/02/2025 - Re-referred to Com. on REV. & TAX. From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.
WECA Position: Oppose

Workers Comp

(SB 291 Grayson, D) This bill sets a minimum civil penalty of $10,000 per violation of any sole owner and $20,000 per violation for any partnership, corporation, limited liability company, or tribal business licensee found to have employed workers without maintaining workers’ compensation coverage, as specified. The bill also requires additional data regarding disciplinary actions for violations maintaining workers’ compensation coverage be reported to the Legislature, as provided.  (Based on 05/01/2025 text). Status: 05/28/2025 - Read third time. Passed. (Ayes 35. Noes 0.) Ordered to the Assembly. In Assembly. Read first time. Held at Desk.
WECA Position: Support

(SB 536 Archuleta, D) Senate Bill 536 would require an insurer or licensed rating organization to notify the Employment Development Department and the local district attorney's office and Fraud Division on the Department of Insurance of suspected fraud when the fraudulent act relates to premium fraud. This can be accomplished by using the same Suspected Fraudulent Claim Referral Form currently utilized with the Department of Insurance, District Attorneys and other authorized governmental agencies. The bill would also require, upon written request by an insurer or specified others, the Employment Development Department to release detailed payroll information, including payroll summary totals, allowing the requester to compare the records with the information they are otherwise entitled to receive from employers in workers' compensation claims or pursuant to workers' compensation policies. SB 536 would prohibit the provided documents from being used for specified purposes. This bill would create a new obligation for insurers to report suspected fraud directly to the EDD (in addition to the Department of Insurance (CDI) and relevant district attorneys), which would alert the EDD to conduct further investigations of potential fraud.  (Based on 05/23/2025 text). Status: 05/27/2025 - Read second time. Ordered to third reading.
WECA Position: Support

Workforce Development

(AB 231 Ta, R) Would allow up to a $5,000 tax credit for employers with five or fewer employees equal to 40% of the qualified wages paid to an individual that, among other things, has been convicted of a felony, as provided, and has a hiring date not more than one year after the date the individual was convicted or was released from prison.  (Based on 01/13/2025 text). Status: 05/23/2025 - In committee: Held under submission.
WECA Position: Support

Is Gallego Setting His Sights Higher? With a trip to Pennsylvania, Sen. Ruben Gallego enters the 2028 conversation. Gallego, D-Ariz., is used to taking his message on the road in a swing state. But now the first-term senator, fresh off his hard-fought win last year, is heading far from home to speak to voters in Pennsylvania, the quintessential presidential battleground state. Gallego attended a town hall in Bucks County, a key swing area outside Philadelphia that Donald Trump flipped by a few hundred votes last year.

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Trump’s Budget Proposes Cutting $600M From Utah’s Biggest Water Project The White House wants to cut funding for the project that delivers Colorado River water to millions on the Wasatch Front — but no one will say what those cuts would entail. Tucked 28 pages into President Donald Trump’s budget recommendations for next year, released May 2, was a proposed funding cut to the Central Utah Project to the tune of $609 million. Congress must approve the final budget. The Central Utah Project is “the largest and most complex water resources development project” in the state, according to the U.S. Bureau of Reclamation. The project is a complicated system of reservoirs and pipelines that bring water from the Colorado River system to the Wasatch Front for irrigation, municipal and industrial uses, supporting the region’s rapid growth. It also provides opportunities for recreation, water conservation and fish and wildlife protection. Story

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Because it’s Fun to Give Away OPM: Assembly lawmakers advanced a plan on Monday to grant undocumented immigrants access to phone bill discounts, providing potential financial support for immigrants as the Trump administration pursues mass deportations. Democratic Assemblymember Avelino Valencia’s AB 1303, which passed with a vote of 60-12, would make California the first state to allow undocumented immigrants and others without Social Security numbers to sign up for a state Lifeline phone discount program. This program offers low-income households up to $19 off their monthly phone bill. Additionally, it protects undocumented immigrants by prohibiting program administrators from sharing applicants’ personal information with Immigration and Customs Enforcement without a warrant. California Democrats are concerned that the Trump administration could weaponize personal information collected by government programs to track, apprehend, and deport undocumented immigrants. Earlier this year, ICE sought access to federal tax data to support an ongoing crackdown on undocumented immigration.

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Howard Reinstated; Some NIOSH Cuts Reversed Dr. John Howard, the longtime director of the National Institute for Occupational Safety and Health (NIOSH), has been reinstated to his position after receiving a termination notice earlier this year. Moreover, key programs cut under the guise of efficiency have also been restored in response to the backlash against the agency's sweeping cuts. Up to 90% of NIOSH's workforce, including Howard, received layoff notices as the Department of Health and Human Services began shifting NIOSH functions into the new Administration for a Healthy America. The Administration, through DOGE, initially stated that it would make mistakes and correct them. This serves as clear evidence of its ability to acknowledge mistakes and rectify them. HHS has reinstated more than 300 NIOSH employees and restored several programs, including the Respiratory Health Division, Division of Safety Research, Division of Compensation and Analysis Support, and the National Personal Protective Technology Laboratory, which certifies new respirators. Layoffs at the World Trade Center Health Program have also been reversed. Howard has been NIOSH director since 2002 after serving 11 years as chief of Cal/OSHA's Division of Occupational Safety and Health.  He has been lauded for his work in the World Trade Center Health Program and research on worker health and cutting-edge technology, such as nanotechnology. Howard noted that while some NIOSH employers were reinstated, others were not. He says he will continue to make the case for restoring the rest and "restoring the agency's capacity." Some 600 NIOSH employees remain laid off. [Cal-OSHA Reporter]

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Candidates for Governor Wave Green Flags for Union Millions At the Sheraton Grand Hotel in Sacramento, seven Democrats—former U.S. Rep. Katie Porter, Lt. Governor Eleni Kounalakis, former Senate President Toni Atkins, former Los Angeles Mayor Antonio Villaraigosa, former State Controller Betty Yee, former U.S. Health and Human Services Secretary Xavier Becerra, and State Superintendent of Public Instruction Tony Thurmond—courted the California Federation of Labor Unions and the State Building and Construction Trades Council. This illustrated fidelity to unions, whose anticipated $40 million in election spending secures policy loyalty. The Democrats' eagerness to trade principles for union funds, favoring special interests over taxpayers, was evident. It represented an impressive bow to the true masters of Sacramento. Story


 

Save the Date for the 2025 Battery Energy Storage Systems Fire Safety Symposium Join us on July 24, 2025, at the California Natural Resources Agency in Sacramento, CA for a Battery Energy Storage Systems Fire Safety Symposium. This Symposium is geared towards sharing valuable insights on improving emergency response, the latest research and technology, understanding codes and standards, and updates on state initiatives to local fire departments and officials. Registration information for in-person and virtual attendance will be available soon. More

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Cal/OSHA’s Latest on Lead Exposure: Clarification for the Construction Industry On May 5, 2025, the California Department of Industrial Relations made an important announcement that affects employers in the construction industry. Cal/OSHA has clarified lead exposure prevention guidance specific to protecting workers conducting dry abrasive blasting during construction work. California’s recently amended lead standards for the construction industry went into effect on January 1, 2025 (California Code of Regulations, title 8, section 1532.1) as part of a broader effort to provide greater protection for workers from the health effects associated with lead exposure. These requirements, which are generally more protective than existing federal regulations, emphasize increased use of protective measures, including substitution, engineering controls, and administrative controls. More

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Judge Says Defense Department Must Resume Use of PLAs

·        A U.S. District Court judge in Washington, D.C., has granted a preliminary injunction against the Department of Defense and Defense Secretary Pete Hegseth for not following a Biden-era executive order mandating the use of project labor agreements on some federal jobs.

·        Judge Rudolph Contreras ruled in favor of North America’s Building Trades Unions and the Baltimore-D.C. Metro Building and Construction Trades Council on May 16, ordering the DOD to set aside PLA-avoidant guidance, even for projects not related to the plaintiffs.

·        Contreras’ order sides with the plaintiffs and says that the DOD must resume the practice of using PLAs. The agency did not respond to requests for comment.

NABTU President Sean McGarvey, practicing his standup routine, praised the ruling. “PLAs aren’t political gimmicks or special-interest carveouts,” McGarvey said in a statement. “They are proven workforce development tools that undergird strong economic growth in communities across the country.” More

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California High-Speed Rail Project Seeks Outside Investors CEO Ian Choudri is seeking outside investors. “Our outreach to the private sector has received strong interest,” he stated in a May 15 news release. In January, the authority held an industry forum to engage potential partners, including private equity firms. The authority will soon request expressions of interest for public-private partnerships. Discussions may cover monetizing assets like train sets, station facilities, track access, fast cargo, and parcels movement. Other opportunities include transit-oriented development, real estate, fiber optic lines along the right-of-way, and leasing certain assets to the private sector. More

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Unions Want Higher Tax Labor groups are considering whether to seek a renewal of tax increases on incomes over $250,000 in 2026 or 2028. Voters approved Proposition 30 in 2012 and Prop 55 in 2016, raising tax rates on high earners to fund schools and healthcare programs. This tax is set to expire in 2030. SEIU and the California Teachers Association, who previously supported the tax, are key players in deciding the timing for the renewal effort. They will likely garner support from various labor, healthcare, and progressive organizations. [Politico]

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New Solar Tariff The International Trade Commission has recommended levies of up to 3,521 percent on solar imports from Cambodia, Malaysia, Thailand, and Vietnam, citing material injury to U.S. manufacturers. This decision allows the Commerce Department to impose trade penalties. Reactions vary in the solar industry, with the Solar Energy Industries Association warning that tariffs will increase costs for manufacturers and developers reliant on foreign parts. Conversely, U.S. manufacturers like First Solar welcome the ruling, arguing it addresses China's subsidization of cheaper solar components in Southeast Asia. More

 

AB 942 – Legislative Call to Action Assembly Bill 942 still includes language that would eliminate NEM benefits for new non-beneficiary property owners and place them on Net Billing Tax (NBT). A shift to NBT could have a handful of consequences, but from a WECA perspective, it could deter future investments in solar-enabled housing. If you would like to share your experience with your issue, please email us by May 14^th so we can be included in a larger effort to advocate on this legislation. It would be helpful to focus your experience based on how it would impact your property or business upon a sale, in terms of how a shift to NBT would influence the sale price of a property and the impact of solar relief on energy cost. Lastly, if you feel so compelled, contacting your local legislator is always a great way to magnify your voice.

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States Pile On Seventeen US states have filed a lawsuit against the Trump administration’s pause of $3.3 billion in funding to build electric vehicle (EV) chargers. These funds were part of a $5 billion plan passed during Biden's presidency under the Bipartisan Infrastructure Law (BIL) to help states build EV charging stations. The suit was filed on Wednesday and is being led by the attorneys general of California, Colorado, and Washington. They contend that only Congress can bar or block the funding, not the Federal Highway Administration. The Department of Transportation hasn't responded to the lawsuit yet.

This latest suit against the Trump administration, California’s 19th so far, is an attempt to rescue billions in frozen federal funds. As with most of the suits that California has joined against President Donald Trump, it’s a largely blue-state coalition. But in some ways, this filing could be of most use to the Republican states that aren’t signed onto it.

Texas is the state that’s supposed to receive the largest award from the National Electric Vehicle Infrastructure (NEVI) program — a $5 billion pot in 2021’s BIL that’s divvied up through a highway-based funding formula — at around $408 million. The state has around 4,400 public chargers, a fraction of California’s more than 80,000.

California was supposed to get the second-highest amount, at $384 million. But that’s a drop in the bucket compared to the $2 billion it’s already spent in state funding, and the $1.4 billion it still has coming from various state coffers. For rural (read Republican) states, the money is much more important. NEVI funding makes up a disproportionately high portion of EV charging funding in Republican states, where state funding is often lacking.

“I think that most, probably all of the states, would like to have this funding, but they are afraid to sue the Trump administration,” said Bill Magavern, policy director at Coalition for Clean Air. “Almost every Republican elected official has just gone silent, and attorneys general are elected officials.”

However, the NEVI funding will still have an impact, even in California. That’s because the program is designed to place charging stations no more than 50 miles away from each other along major highways. That means locations in the Central Valley and along the Northern California coast, rather than just urban centers like Los Angeles and the Bay Area, where EV adoption has been highest. “We need public funding, especially to go into the areas where the private sector may be more reluctant to venture,” Magavern said. “That includes rural areas and disadvantaged communities.”

Johannes Copeland, chief operating officer at Skycharger, a charger supplier that’s won NEVI grants in California and New Mexico, told POLITICO shortly after the DOT announced the freeze in February that the loss of federal funding and Biden-era tax credits that help cover costs of building and operating chargers could force some companies to reconsider investing in rural areas, where there are no guarantees they’ll ever be profitable. “The riskier sites may not get built,” Copeland said at the time. “That’s absolutely a risk in losing the money associated with the program.”

Gov. Gavin Newsom is also using the lawsuit to resume his jabs at Trump, taunting the president over a March decision to turn the White House lawn into a Tesla showroom to support Elon Musk. The governor also pointed to China’s growing manufacturers like BYD, which is now the largest EV maker in the world. “President Trump’s illegal action withholding funds for electric vehicle infrastructure is yet another Trump gift to China — ceding American innovation and killing thousands of jobs,” Newsom said in a statement. “Instead of hawking Teslas on the White House lawn, President Trump could actually help Elon — and the nation — by following the law and releasing this bipartisan funding.” Read more

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More Pain for HSR Trump said Tuesday that the federal government (a euphemism for taxpayers) will not pay for California’s medium-speed train, another potential wrinkle in a troubled project that has repeatedly blown past its budget and completion timeline since voters approved funding in 2008. “That train is the worst cost overrun I’ve ever seen,” Trump, who’s seen many of his own projects and endeavors fail, told reporters in the Oval Office during a joint appearance with Prime Minister Mark Carney of Canada. “It’s, like, totally out of control.” He added: “This government (i.e., taxpayers) is not going to pay.” The president’s comments came three months after his administration launched a review of how California is spending a $3.1 billion federal grant issued under the Biden administration. That audit has not yet been completed. Story

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Bonta Soft on Child Sex Abuse? While California Attorney General and aspiring Governor Rob Bonta is quick to sue the Trump Administration, he is less inclined to charge a former official with sexual assault. Former Kern County Supervisor Zack Scrivner was not charged with a sex crime but was charged with three felony counts of child abuse and two felony counts of possessing assault weapons by the California Department of Justice in February.

The charges stemmed from an incident at his Tehachapi house in April of last year, where Scrivner was stabbed in the upper torso by one of his four children, who was trying to protect another child from being sexually assaulted by Scrivner, according to Kern County Sheriff Donny Youngblood. Detectives seized around 30 firearms and psychedelic mushrooms from Scrivner’s house after the incident. Scrivner resigned from the Board of Supervisors last August after taking a lengthy medical leave of absence. According to the complaint filed by the Department of Justice, Scrivner allegedly got into bed with one of his children and touched the child inappropriately.

The case wound up on Bonta’s desk due to a familial conflict with Kern County District Attorney Cynthia Zimmer.

The decision not to charge Scrivner didn’t sit well with Assemblymember Jasmeet Bains (D-Bakersfield), who wrote a letter to Bonta asking for clarification on the charges filed against Scrivner to know why he was not charged with a sex crime. Story

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Praise the Lord, Congress Focuses on Important Stuff! The Gulf of America Act of 2025 (HR 276) renames the Gulf of Mexico as the Gulf of America. The bill directs the Board on Geographic Names within the Department of the Interior to oversee the implementation of the renaming concerning each federal document and map. Each federal agency must update its records and maps within 180 days of the bill's enactment. All nine of California's Republicans voted AYE today on the bill. All the state's Democrats voted no. The House voted for the renaming by a margin of 211 to 206. Rep. Kevin Kiley, R-Roseville, explained why he backed the plan, which would write into law the renaming plan proposed by President Donald Trump on his first day in office. "The Gulf of America is a critical region to our country's economy. It's a staple of energy independence that fuels economic growth, creates jobs, and is a tourist destination for people across the United States," Kiley said. Story

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Navigating California’s New Regulations on Automated Decision-Making Tools The California Civil Rights Department (CRD) has recently approved regulations under the Fair Employment and Housing Act (FEHA) to address discrimination in employment resulting from the use of automated decision-making systems, including artificial intelligence (AI) and algorithms. These regulations apply to all employers covered by the FEHA and are expected to take effect in July, once they have completed the final administrative approval process with the Office of Administrative Law. Story

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California Court of Appeal Affirms Enforceability of Prospective Meal Period Waivers In a ruling that clarifies a previously unsettled area of California employment law, a California Court of Appeal affirmed the enforceability of written, prospective meal period waivers for shifts between five and six hours long. The April 21, 2025, decision in Bradsbery v. Vicar Operating, Inc. explained that advanced “blanket” waivers are valid under the law if freely revocable and absent evidence of coercion or unconscionability. For California employers, Bradsbery provides much-needed guidance on how to implement meal period waivers in compliance with the law. Story

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Good News, Gov. Newsom has launched a website fact-checking anonymous X accounts, in-state Republicans, and President Donald Trump — escalating a campaign to defend his home state and record against false and misleading information online, Politico reports. “This site is for everyone sick of the BS about California,” Newsom said in a statement. “We’re done letting the MAGA trolls define the Golden State. We’re going on the offense and fighting back — with facts.” Posts already on the site dispense with some serious whoppers from questionable sources. One claim, from an X account named “Beauty Hub,” incorrectly asserts that stealing up to $950 is legal in California. Another post, from Libs of TikTok, falsely claimed California reservoirs ran dry during the LA fires. Californiafacts.com deploys some of Newsom’s go-to answers for common criticisms of his home state. It responds to economic digs by touting California’s status as the fourth-largest economy. To an X post that accused Democrats of being a party of “zealous open border immigration,” it notes the federal government’s jurisdiction over the issue. It cites the economic benefits of people commuting across the Mexico-California border for work.

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AZ Valley Voters, Lawmakers Should Stand Up to California Labor Union An out-of-state labor-affiliated group has cast a shadow over the Valley’s economic development future. Voters and elected officials can help clear things up. An example is Glendale City Council’s recent approval of zoning for a 39-acre site on the west side of Loop 101 across from State Farm Stadium, which is set to feature a mix of multifamily housing, retail and hotels. It’s the type of development cities typically welcome. They create jobs, generate tax revenues and generally improve a community’s quality of life thanks to new amenities. Worker Power, the Los Angeles-based political arm of the hospitality union UniteHere, opposes the zoning approval and is poised to thwart development at the site. A representative was at the April 22 Council meeting to express the group’s opposition, specifically calling out the inclusion of a hotel in the development. More

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Legislator Wants School Funds to be Given to Utilities Assemblymember Cottie Petrie-Norris is attempting to reintroduce legislation that would provide a one-time credit to most of the state’s electricity customers with funding from a program that provides money for school heating, ventilation and air conditioning upgrades, reports Politico. Petrie-Norris, a Democrat who chairs the Assembly Utilities and Energy Committee, is refusing to hear AB 832 by Assembly Education Chair Al Muratsuchi, which would give school districts more time to use some $192 million for HVAC improvements and plumbing.

While Muratsuchi's bill would extend the time that schools can tap the funding for HVAC improvements until 2031, Petrie-Norris proposed amendments that would redirect any funding not used by December 2026 to the state’s utilities, which would then distribute the money to customers as credits. Muratsuchi's office confirmed that he wouldn't take the amendments. He said he was “disappointed” that Petrie-Norris won’t hear his bill, which “ensures that schools have access to critical funds to improve indoor air quality and create healthier learning environments.”

“California’s students and staff deserve to learn and work in spaces with safe, effective ventilation systems,” he said in a statement. It's the second year that Petrie-Norris has proposed redirecting school HVAC funding to electricity bills, as well as the second year that school advocates have proposed extending the funding deadline, which was established in 2020's AB 841. A similar bill proposed last year by former Assemblymember Phil Ting died before it received a floor vote.



WECA's Southern California Government Relations Representative Dave Everett gives Riverside City Councilman Chuck Condor a tour of WECA Riverside's labs.

Councilman Visits Riverside City Councilman Chuck Condor recently toured WECA Riverside for a discussion about workforce development. Joined by Dave Everett with WECA’s Government Affairs team, Condor sat down to learn more about WECA’s commitment to apprenticeship, training and safety. Currently, the City of Riverside is looking at several construction projects, including a $32.8 million construction contract to bring the Museum of Riverside closer to reopening and a proposed 126-acre sports complex. On the tour, WECA highlighted the great opportunity that apprenticeships are for students and how beneficial it is for young adults to begin adulthood debt-free. Thank you, Riverside Councilman Chuck Condor, for taking time out of your busy schedule to learn more about our members and students!