Thursday, September 11, 2025

AB 889 at Finish Line

Assembly Member Heather Hadwick (R-Jackson) amended her AB 889 on September 5, 2025. AB 889 makes changes to the annualization rule of fringe benefits for work on both public and private construction projects by requiring annualization to apply to all employer payments not made directly to the worker and by eliminating the exemption that the director of the Department of Industrial Relations (DIR) has determined that annualization would not further the purposes of the law. WECA, ABC of California, and AGC-San Diego all oppose the measure, which is sponsored by the California-Nevada Conference of Operating Engineers and the District Council of Iron Workers. A laundry list of unions support it.

The amendment added Assembly Members Chen (R-Brea), Flora (R-Ripon), Gallagher (R-Chico), and Senator Rubio (D-West Covina) as authors, and clarified that vesting of pension contributions must occur within the first 500 hours worked, and struck language in the bill that mentions the United States Department of Labor Field Operations Handbook. These changes were made at the request of the Newsom administration, which means a veto is unlikely.

The Senate approved AB 889 yesterday, 35-0, with five Republicans voting aye (Dahle-Chico, Choi-Irvine, Grove-Bakersfield, Jones-Escondido, Strickland-Huntington Beach, and Valladares- Lancaster). Senator Choi initially voted no, and all the other Republicans, except Dahle and Strickland, abstained. When the call was lifted, Choi changed his vote and joined the other Republicans in support. Republican Senators Alvarado-Gil, Niello, Ochoa Bogh, and Seyarto abstained.

The bill now returns to the Assembly, where it can be voted on as soon as today. Newsom has 30 days to sign or veto, and AB 889 will take effect on January 1, 2026.

We asked Hadwick to submit a clarifying letter to the Assembly Daily Journal, and although Hadwick said she would consider it, she didn’t like the first draft. A second draft was submitted, but she told opponents that she would not submit it or any letter to the Journal.

Hadwick could still hold the bill in the Assembly, but her refusal to file a letter in the Journal makes that unlikely, after what will likely be strong bipartisan support in the Assembly.

Newsom could veto the measure, but with the amendments his administration sought being adopted, that is very unlikely.

The bill will take effect in January. WECA will publish guidance for contractors this fall.

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Construction Spending Slide Deepens

• Nonresidential construction spending slipped 0.2% in July to a seasonally adjusted annual rate of $1.24 trillion, according to an ABC analysis of U.S. Census Bureau data.
• Private nonresidential outlays dropped 0.5% for the month, though public nonresidential construction ticked up 0.3%, according to the report. Spending decreased in seven of 16 nonresidential categories, including manufacturing and commercial work.
• The dip marks the third consecutive monthly decline, as tariffs rise and labor shortages resurface. “It may be a bleak second half of the year for the construction industry,” said Anirban Basu, ABC chief economist.

Story

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It Ain’t Over Till It’s Over

California lawmakers won’t be able to cast the final votes of the 2025 session until Saturday morning, marking one of the latest final days of the session in recent history. Lawmakers published the final piece of new bill language, a bill to extend the state's greenhouse gas trading program, at 10:21 a.m. on Wednesday, meaning AB 1207 can’t be taken up on the Senate floor until 72 hours later, Saturday, under legislative rules. The session will extend beyond that time, as they debate the bill on the floor before it heads to the Assembly for a vote to approve the amendments.

Lawmakers often waive the rules, which end the session at midnight on Friday, along with other deadlines, allowing them to continue working into Saturday during the first year of a legislative session. But veteran lobbyist Chris Micheli, who has worked in the Capitol for over three decades, said this is the first time in his memory that lawmakers are expected to adjourn early Saturday and then return later in the day for votes.

The delay came as Gov. Gavin Newsom and legislative leaders scrambled to hammer out a package of climate and energy measures that extended beyond Tuesday night and into Wednesday morning. The first of those bills, a proposal to establish a West-wide electricity market (AB 825), arrived at 5:43 a.m., while legislation to boost in-state oil drilling (SB 237) and to backfill the state’s wildfire fund (SB 254) came in after 9 a.m.

Senate President Pro Tem Mike McGuire told his chamber on Wednesday to "pack extra socks" in preparation for a marathon end of session, where they will have to be back Saturday morning to "complete our business. We are going to be working late, ladies and gentlemen, here into the evening on Friday,” McGuire said, adding “I would anticipate that we are going to be working into the morning hours of Saturday." Micheli said this is the latest that lawmakers have introduced bills since voters passed Proposition 54 in 2016, which established the 72-hour rule.

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Groups Spend Big Bucks to Send CA Lawmakers on Sponsored Trips to Far-Off Places

Nearly 100 special interest groups spent over $820,000 last year to send California legislators to distant locations such as Hawaii, the United Kingdom, Vietnam, and Israel, writes CalMatters. About three-quarters of the Legislature, or 92 Democratic and Republican lawmakers, received free trips, according to financial disclosure reports. As in previous years, particularly in 2022 and 2023, the largest sponsor of travel last year was the California Foundation on the Environment and the Economy. The nonprofit paid nearly $260,000 to take more than 40 lawmakers on domestic and international trips. The foundation is an unusual umbrella organization that encompasses corporations, oil companies, environmental groups, and other entities. Its international trips, called “study tours,” let representatives from these special interest groups mingle with lawmakers.

Story

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Former AZ Senator Kyrsten Sinema buys $2M Estate

Former U.S. Senator Kyrsten Sinema paid $2 million for an estate in Cave Creek. The property, which does not belong to an HOA, has recently undergone several additions and has sufficient space to build a casita or a large toy barn. Sinema served from 2019 to 2025 as a United States senator from Arizona. A former member of the Democratic Party, Sinema became an independent in December 2022. Sinema served three terms as a state representative for the 15th legislative district from 2005 to 2011, one term as the state senator for the 15th legislative district from 2011 to 2012, and three terms as the United States representative for the 9th district from 2013 to 2019.

Sinema was considered a key swing vote in the Senate during the 117th and 118th Congresses, when it was almost evenly split between Democrats and Republicans. On March 5, 2024, she announced she would not seek reelection and was succeeded by Democrat Ruben Gallego.

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Players Gonna Play

Earlier this year, California lawmakers delivered a historic victory for champions of more housing construction by exempting most urban apartment developments from the California Environmental Quality Act, a 50-year-old statute that Yes In My Backyard advocates and the building industry have long blamed as an impediment to building more homes.

A bill proposed Monday night, just days before the end of the legislative session, would punch a tiny hole in that landmark law that appears to apply to just one proposed apartment building in California — in the district represented by the incoming leader of the state Senate.

Senate Bill 158 would subject any project within a city of more than 85,000 but fewer than 95,000 people and within a county of between 440,000 and 455,000 people to the state’s environmental review law.

That only describes one place in California, according to 2020 Census data: Santa Barbara, a city represented by Sen. Monique Limón. Earlier this year, Democrats in the state Senate chose Limón as the body’s next leader. She is set to replace Senate President Pro Tem Mike McGuire, who is termed out in 2026.

Story

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Immigration Crackdowns Intensify Construction Labor Woes

• Ramped-up immigration enforcement has impacted nearly a third of construction firms, according to a survey released Aug. 28 by the Associated General Contractors of America and the National Center for Construction Education and Research.
• Labor shortages continue to be the main reason for project delays, with 45% of contractors mentioning worker gaps as the cause. Ninety-two percent of respondents said they struggle to fill open positions.
• The survey highlights how labor issues and immigration enforcement intersect with broader policy pressures, like tariffs, which 16% of firms say have already caused project changes, according to the report.

Story

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Discredited Bureau of Labor Statistics Says Demand For HVAC, Electrical, and Plumbing Workers is Expected to Grow

Organizations are launching programs aimed at expanding access to skilled trades at a time when the federal government is predicting above-average growth in these jobs over the next decade.

The BLS Occupational Outlook Handbook, which includes information on approximately 600 occupations, states that the need for HVAC-R mechanics and installers is expected to grow by 8% and add about 40,100 openings per year through 2034. That’s “much faster than the average for all occupations,” BLS says.

Electrician employment is projected to grow 9% over the decade, with approximately 81,000 openings projected each year on average, according to the BLS. 

The need for plumbers, pipefitters, steamfitters, and general maintenance and repair workers is projected to increase by 4% over the next decade, according to the data. 

Story

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Hanks’ Award at West Point Cancelled by Trump

Last time we mentioned that former Governor Schwarzenegger’s Hall of Fame Induction was on hold, possibly because of his opposition to Prop 50.

President Donald Trump recently applauded the decision of the US Army Academy to cancel an award ceremony for actor and veterans advocate Tom Hanks, accusing the celebrity of being “woke” in a post on Truth Social. “We don’t need destructive, WOKE recipients getting our cherished American Awards!!!” Trump wrote. “Hopefully, the Academy Awards, and other Fake Award Shows, will review their Standards and Practices in the name of Fairness and Justice. Watch their DEAD RATINGS SURGE!”

The West Point Association of Graduates alumni association announced in June that Hanks would be recognized for his work in several movies, where he portrayed U.S. service members, and his advocacy for building the World War II memorial on the National Mall. Hanks also supports service members through the profits of his coffee company, HANKS for Our Troops.

Robert A. McDonald, chairman of the alumni association, said in June that Hanks has “done more for the caring of the American veteran, their caregivers and their family” than many other Americans.

The actor’s ceremony to receive the Sylvanus Thayer Award, which is awarded to an “outstanding citizen” with a record of service exemplifying “Duty, Honor, Country,” was set for Sept. 25.

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Utah Ordered to Redraw Congressional Districts Ahead of the 2026 Elections

On Aug. 25, a federal judge ordered Utah to redraw its congressional map, making the state one of 13 where district boundaries might change before the 2026 elections. Notably, on August 29, Texas Governor Greg Abbott (R) signed a new congressional map into law, aimed at gaining five Republican U.S. House seats. California Gov. Gavin Newsom (D) scheduled a special election for Nov. 4, 2025, to approve a constitutional amendment for redrawing the state's congressional districts through 2030. In the Utah ruling, Judge Dianna M. Gibson stated that the Utah Legislature violated voters’ right to reform their government by overriding voters’ chosen redistricting rules. Story

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Trump’s War on Wind Has This Construction Crew Stuck 15 Miles Out at Sea

Connor Walcutt is among the workers caught in the crossfire of President Trump’s war on the offshore wind industry, which recently culminated when officials halted the $5 billion Revolution Wind project. The administration’s stop-work order surprised even the shellshocked clean-energy sector because the development’s skyscraper-sized turbines are largely complete.

Story

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Out with the Old

Democrat Eric Jones, a wealthy former venture capitalist, is launching a primary challenge against longtime incumbent Rep. Mike Thompson. The upheaval in California’s 4th Congressional District highlights an ongoing intergenerational divide within the Democratic Party as first-time candidates nationwide seek to unseat older lawmakers. Thompson, 74, has represented the Napa Valley area in Congress for over 25 years.

Jones’ first ad highlights this issue as he criticizes Trump’s cuts to safety-net programs. “Trump is cutting Medicaid to give tax cuts to billionaires,” Jones, 34, says in the spot, which shows him driving down a rural dirt road in a Jeep with his dog at his side. “And too many Democrats have been in Washington so long they’re not up to the fight.”

Jones also discusses growing up in Maine as the son of a nurse and a disabled veteran who did not finish high school. He mentions that his family sometimes depended on food stamps and disability checks. He also commits in the same ad not to accept campaign contributions from corporate PACs and lobbyists or to trade stocks as a member of Congress. Jones’ campaign said the spot will air on broadcast and cable TV in the Bay Area and Sacramento media markets.

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Encinitas Councilmember Charged with Felony Assault

Encinitas Councilmember Luke Shaffer appeared in a courtroom for his criminal arraignment, where he heard about his charges in front of a judge. The charges include one count of felony assault and two misdemeanor counts of hit-and-run driving and willful omission to perform duty, which basically means that a public official knowingly failed to do something they were legally required to do as part of their job. Details of the incident that led to the charges haven’t been made public yet. Still, court documents indicate that Shaffer made threats to a member of the public, “did unlawfully commit an assault upon” a person, and was “the driver of a vehicle involved in an accident resulting in damage to property.”

Story

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Everything Old is New Again

On Aug. 26, California Assembly Minority Leader James Gallagher (R-3) introduced Assembly Joint Resolution 23 (AJR 23). The resolution would “express the consent of the Legislature for specified counties to form a new state from within the current boundaries of the State of California and would urge Congress to accept and embrace that consent.”

Gallagher said the proposal was a response to the Legislature’s approval of Proposition 50 for the Nov. 4, 2025 ballot. Proposition 50 is a constitutional amendment that would allow the state to use a new, legislature-drawn congressional district map for 2026 through 2030. Here’s a brief history of past attempts to divide California into two or more states.

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California Supreme Court Eases Employer Risks in Arbitration Fee Rule

The California Supreme Court’s decision in Hohenshelt v. Superior Court might seem unfavorable to employers at first. After all, the Court declined to find that Code of Civil Procedure section 1281.98—California’s “pay arbitration fees on time or lose arbitration” rule—was preempted by the Federal Arbitration Act (FAA). However, a closer look reveals a critical silver lining: the Court has softened the strict interpretations that had been emerging from the Courts of Appeal.

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