Thursday, October 10, 2024
Join Dave Everett, WECA's Government Relations Manager, for a WECA presentation on how Project Labor Agreements (PLAs) impact taxpayer-funded construction projects in Ventura County.
When: October 23 at 7:30 a.m.
Where: Junkyard Cafe (2585 Cochran Street, Simi Valley, CA 93065)
Cost: FREE for VCTA members; non-members $20
Register here!
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According to Politico, on Tuesday, the Senate Appropriations Committee approved GGN’s proposal to impose new mandates on California refiners, but not without some grumbling from members about the vague cost analysis. The committee voted 4-2 along party lines to advance ABX 2-1 from Assemblymember Gregg Hart, which would authorize the California Energy Commission to require refineries to store a certain amount of gasoline. The Newsom administration argues the policy would prevent fuel cost jumps.
The committee’s bill analysis didn’t estimate a price tag but said that near-term costs would be “absorbable within existing resources.” It said the “unknown, potentially significant one-time costs” for the CEC to determine the “likely benefits” of requiring refiners to maintain a minimum gas supply “would outweigh potential costs for consumers.” There would also be vague significant costs associated with CEC administration of the new requirements.
“We believe the Energy Commission could initially redirect current resources and staff to meet some of the new requirements,” said Christian Beltran of the Department of Finance during the hearing. “However, it is possible that additional resources may be needed once the full scope of the regulatory analyses and activities are known and better quantified.” The Attorney General’s office and the state-funded trial court system would also face new expenses associated with enforcing the law. The bill is scheduled for a Senate vote Friday and then back to the Assembly for concurrence.
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Ambitious Democrats are starting early on the 2026 race for California governor, an election 25 months away. But taking sides on ballot measures facing voters this November, not so much.
Politico asked the five candidates running to replace Gov. Gavin Newsom where they stand on the year’s most consequential initiatives, from increasing drug-crime penalties to easing statewide limits on rent control. Only one contender, former Los Angeles Mayor Antonio Villaraigosa, took a position on all ten statewide questions.
FINAL Legislative Update Governor Newsom has completed his action on all legislation: the good, the bad, and those of Senator Wahab.
PLAs
SB 984 (D) SB 984 would have required the courts and CSU to identify and select at least three major construction projects by January 1, 2027, governed by project labor agreements (PLAs). DTSC was removed after they reported that “utilizing a PLA for a project increased the cost of the cleanup by approximately 25 percent.” WECA Position: Oppose Status: VETOED
Governor’s Message: To the Members of the California Senate, I am returning Senate Bill 984 without my signature. This bill would require, beginning January 1, 2027, the Judicial Council and the California State University (CSU) to each identify and select a minimum of three major construction projects and subject those projects to a Project Labor Agreement (PLA). While I am generally supportive of PLAs as an option for public works projects, the new requirements proposed in this bill could result in additional cost pressures that were not accounted for in this year’s budget. In partnership with the Legislature this year, my Administration has enacted a balanced budget that avoids deep program cuts to vital services and protected investments in education, health care, climate, public safety, housing, and social service programs that millions of Californians rely on. It is important to remain disciplined when considering bills with significant fiscal implications that are not included in the budget, such as this measure. For these reasons, I cannot sign this bill. Sincerely, Gavin Newsom
So, why did GGN, who, by his own admission, is “generally supportive” of PLAs, veto a State Building and Construction Trades Council bill?
I believe the State Building and Construction Trades Council’s opposition to the Governor’s plan to impose new mandates on California refiners, who must employ union contractors for turnarounds, PO’d the governor, which could explain the “double tap” veto message. He didn’t just veto the bill but cited “the new requirements proposed in this bill could result in additional cost pressures,” meaning PLAs cost more!
Business Issues
SB 1022 (D) SB 1022 significantly expands existing statute limitations for any complaint brought by the Civil Rights Department or its “authorized representative” to ten years. It also gives a court discretion to extend that statute of limitations even further if it is “reasonable” to do so. WECA Position: Oppose Status: VETOED
Governor’s Message: To the Members of the California State Senate: I am returning Senate Bill 1022 without my signature. This bill would clarify a number of unsettled procedural matters involving the Fair Employment and Housing Act (FEHA). I thank the author for introducing this measure, which intends to limit litigation and help resolve civil rights disputes quickly and more efficiently. However, I am concerned with specific provisions in this bill that provide the Civil Rights Department (CRD) with a seven-year period to file a group or class complaint under FEHA. This limitations period is significantly longer than the limitations period for similar civil matters, including class action litigation on behalf of employees. For this reason, I cannot sign this bill. However, I encourage the Legislature to pursue legislation next year that enacts the other changes that this bill would make, together with a more reasonable period for CRD to initiate a group or class complaint. Sincerely, Gavin Newsom
Business Issues
SB 1243 (D) SB 1243 makes various changes to a state law commonly referred to as the “Levine Act” that restricts campaign contributions to agency elected officials from entities with business before the agency involving a license, permit, or other entitlement for use, including raising the threshold for campaign contributions regulated by the Act from $250 to $1,000. It amends the Levine Act to provide a workable, transparent process for addressing perceived conflicts of interest. The existing law has presented implementation problems, has had a chilling effect on political participation, and unintentionally promotes dark money independent expenditures, which are less transparent to the public. WECA Position: Support Status: Signed
Energy
AB 2235 (D) Allows the City of Long Beach and its Board of Harbor Commissioners to use specified procurement methods and processes for the Pier Wind project. Requires a skilled and trained workforce to perform all project work unless a PLA exists. WECA Position: OUA Status: Signed
Housing
AB 3068 (D) This bill enacts the Office to Housing Conversion Act, which creates a streamlined, ministerial approval process for adaptive reuse projects and provides specific financial incentives for the adaptive reuse of existing buildings. Aspects of the project requirements do not apply to portions of the project that are subject to a bona fide collective bargaining agreement or project labor agreement that meets specified requirements. WECA Position: OUA Status: VETOED
Governor’s Message: To the Members of the California State Assembly: I am returning Assembly Bill 3068 without my signature. This bill would establish the Office to Housing Conversion Act, creating a ministerial approval process for adaptive reuse projects, aimed at converting nonresidential buildings, such as offices or industrial sites, into residential or mixed-use developments. The bill also provides financial incentives for developers, including the option for local governments to allocate up to 30 years of property tax revenue to support affordable housing conversions, and establishes specific labor standards for qualified adaptive reuse projects. While I strongly support efforts to address California’s housing crisis by promoting adaptive reuse projects, this bill raises several concerns. The proposed compliance and enforcement mechanisms for labor standards, including the issuance of stop-work orders for any violations, represent a significant expansion beyond existing law, which limits this remedy to a narrow subset of violations, such as those posing immediate threats to health and safety. Moreover, the bill lacks clear procedures for contesting violations or addressing noncompliance, creating considerable uncertainty that could lead to delays, and increased costs, potentially making projects financially unviable - ultimately undermining the bill’s goal of increasing housing production. For these reasons, I am unable to sign this bill. Sincerely, Gavin Newsom
Labor Law
AB 2499 (D) Entitles an employee with a family member who is a victim of crime to job-protected leave to attend to the family member’s needs and ensure their safety. Additionally, it permits both the employee victim and the employee who has a family member who is a victim to use sick leave for time off to obtain victim services. AB 2499 creates new, uncapped leave for scenarios already covered under existing law. And it applies to small businesses with just five employees. WECA Position: Oppose Status: Signed
AB 2738 (D) This bill establishes that a public prosecutor may alternatively enforce the training certification requirements of entertainment events employees and adds a public events venue or a contracting entity to the entities that may be assessed a penalty for violating these requirements. WECA Position: Oppose Status: Signed
Governor’s Message: To the Members of the California State Assembly: I am signing Assembly Bill 2738, which extends local public prosecutor enforcement authority for violations of existing workplace safety laws to entertainment venues; requires the court to award a prevailing plaintiff reasonable attorney’s fees for the enforcement of specified labor laws; and adds public events venue or a contracting entity to the entities responsible for the live events safety training requirements. Existing law authorizes a public prosecutor to enforce certain provisions of the labor code, until January 1, 2029. This period allows us the ability to assess the effectiveness of local enforcement, including requirements of this bill. I appreciate the efforts by the author and sponsors to help ensure workers can enforce their rights under the Labor Code at the local level. Nevertheless, we need to monitor this expansion in the coming years to ensure this authority is being used as intended and evaluated for any unintended consequences. Sincerely, Gavin Newsom
SB 399 (D) This bill effectively prohibits any discussion of political matters in the workplace and is unnecessary in light of existing California and federal laws that protect employees from any coercion related to their political beliefs or activities. Further, the bill both violates the First Amendment and is preempted by the National Labor Relations Act (NLRA). WECA Position: Oppose Status: Signed
Land Use
AB 98 (D) AB 98 prohibits, commencing 1/1/2026, cities and counties from approving new or expanded logistics uses unless they meet specified standards; requires cities and counties to update their circulation elements to include truck routes, and imposes study requirements on the South Coast Air Quality Management District (AQMD). The buffer zones and mandatory truck route provisions would severely limit the availability of land suitable for logistics uses. This could push logistics uses further from population centers, increasing the distance trucks must travel. This could increase the cost of transportation and the emissions from truck traffic. The bill could hinder efforts to redevelop blighted areas and reduce economic opportunities, particularly in the Inland Empire, where logistics uses are a significant driver of economic growth. WECA Position: Oppose Status: Signed
Public Works
AB 2182 (D) Modifies state public works law by 1) granting joint labor-management committees (JLMCs) reasonable access to public works job sites and 2) requiring a change in a prevailing wage rate as determined by the DIR Director to apply to specific contracts from July 1, 2026, to January 1, 2031. WECA Position: Oppose Status: VETOED
Governor’s Message: To the Members of the California Assembly: I am returning Assembly Bill 2182 without my signature. This bill would require that any change in prevailing wage rates apply to existing contracts on certain public works projects. The bill also grants joint labor- management committees (JLMCs) reasonable access to public works jobsites and allows JLMCs to file actions in court to enforce this requirement. While I am a steadfast supporter of prevailing wage law, the adjustments proposed by this measure would likely lead to uncertainty in the cost of public works projects, potentially creating significant cost pressures on the state budget. In partnership with the Legislature this year, my Administration has enacted a balanced budget that avoids deep program cuts to vital services and protected investments in education, health care, climate, public safety, housing, and social service programs that millions of Californians rely on. It is important to remain disciplined when considering bills with significant fiscal implications that are not included in the budget, such as this measure. For this reason, I cannot sign this bill. Sincerely, Gavin Newsom
STWF
SB 1162 (D) This bill requires a contractor, bidder, or other entity to include the full name of and identify the apprenticeship program name, location, and graduation date of all workers in existing monthly compliance reports made to the public entity or other awarding body for projects with a skilled and trained workforce requirement. This bill also requires the DAS to create and maintain a public online database on or before July 1, 2025, to verify that a worker graduated from a California apprenticeship program. WECA Position: Oppose Status: Signed
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Election Guide CalMatters launched the latest feature of their Voter Guide: the tool lets voters look up nearly every race up and down their November ballot. You can type in your address and get the list of races you’ll decide (except for school and special district elections). From that list, you can go to their full Voter Guide information on the U.S. Senate, U.S. House, state Legislature and the ten ballot propositions, the candidates for county supervisor and city council, and information on local ballot measures. The CalMatters data team collected nearly 1,000 races and more than 700 measures.
Try it here.
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WECA Government Relation Voters Guide. The WECA Government Relations Committee released a guide for the November election. It is available here for WECA members. (Log in to your WECA Member Dashboard to access.)
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