Western Electrical Contractors Association, Inc.

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WECA Political Update 11-23-20

Monday, November 23, 2020

Government Affairs and Merit Shop Advocacy
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What contractors need to know about PLAs in light of Biden Presidency The president-elect campaigned on providing good union jobs as part of a massive infrastructure plan, so discussion around project labor agreements could get ratcheted up a notch next year. Story
 
Possible CSLB Change Kevin Albanese, CEO, and Chairman of Northern California construction company Joseph J. Albanese Inc., one of the largest private companies in Silicon Valley, is leaving both positions to pursue other interests and spend more time with family. He's been CEO since 2014. His younger brother, Phillip Albanese, currently President and COO, will become CEO. Albanese is also on the CSLB – and will likely be replaced. Story
 
A Look at Partisan Balance in State Legislatures Partisan control changed in two state legislative chambers due to the 2020 elections—Republicans gained majorities in the New Hampshire House of Representatives and the New Hampshire State Senate. This is the fourth time this decade that the New Hampshire Legislature has changed party hands. Story

Biden Transition – Continued Biden said at his event Monday that "union leaders are going to have increased power" in his administration. But it's going to be tougher to maintain their leverage if labor leaders, themselves, aren't on the same page, as is the case in discussions over Labor secretary Eleanor Mueller and Megan Cassella report. AFL-CIO President Richard Trumka and some of his organization's largest affiliate unions are voicing support for Boston Mayor Marty Walsh, a former head of the city's Building and Construction Trades Council who could appeal to construction workers that backed Trump in the election. But other member unions are publicly pushing for Rep. Andy Levin, a Michigan Democrat and former union organizer who also ran his state's job training program. The divide was laid bare at an AFL-CIO meeting on Friday. Union presidents who sit on the federation's political committee were expected to discuss a potential endorsement for the job. That didn't happen, and another meeting hasn't been scheduled, four people familiar with the discussions said. Still in the mix: Sen. Bernie Sanders (I-Vt.) has been lobbying for the position. And California Labor Secretary Julie Su is considered a leading contender, as well.

Property Owners Covering $1.7 Billion in Delayed Rent Payments During Pandemic Rob Lapsley, president of the California Business Roundtable, issued the following statement in response to a recent study by the Federal Reserve Bank of Philadelphia that shows an estimated 24,000 renters statewide are behind on their rent, totaling nearly $1.7 billion in missed rent payments since the pandemic began: "The Federal Reserve study is clearly defining the economic sacrifices made by private property owners that have allowed renters to stay in their homes, helping to prevent homelessness—all with little to no support from the state or federal government. This new report magnifies the urgent need to assist property owners and tenants affected by COVID-related economic hardships. At the same time, the Legislature's short-term eviction protections are expiring early next year. We cannot afford to prolong the crisis for property owners and tenants, especially as the governor toggles counties between COVID-mitigation tiers and its related impacts on the workforce. We look forward to working with the governor and Legislature to jointly address financial support for housing and small business recovery immediately." The California Business Roundtable was one of the leading proponents of AB 1482 (Chiu-Grayson), which enacted a balanced approach to modernizing the state's rental housing laws to increase protections for tenants while also encouraging the construction of new affordable housing. The Roundtable also took a neutral position on AB 3088, the current rental housing eviction freeze set to expire on February 1, 2021.

Will 'Amtrak Joe' Biden bail out California's troubled bullet train? Don't bet on it. President-elect Joe Biden is a self-professed train fanatic who estimates that he has ridden more than 2 million miles on 16,000 trains. This fall, he rode the rails to campaign across Ohio and Pennsylvania, part of the "Build Back Better" train tour. For months, some supporters of California's troubled high-speed rail project have pined for a Biden presidency, hoping his administration would throw its support behind the planned system between Los Angeles and the Bay Area, with trains running at 220 mph. Story

State Offices Shape Local Real Estate Market The Sacramento Business Journal notes, "Telework is altering the real estate landscape in cities across the country. As companies make decisions about how much office space, if any, they need in a post-pandemic world, brokers could find properties newly available. In Sacramento, California, no entity may end up effecting more change than the biggest lessor of space: the state of California, which leases more than 9 million square feet in Sacramento County. 'If they dump 3, 4, 5 million square feet in the market, they're going to crush the market,' Barry Broome, CEO of the Greater Sacramento Economic Council, told the Sacramento Business Journal. But done strategically, Broome said, the state could leave space that companies would gladly snap up — and that could help create more dynamic business environments in certain areas, including downtown Sacramento. How the state will approach its lease obligations is evolving. Jason Kenney, deputy director of the real estate services division with the state's Department of General Services, said officials continue to adjust to the work-from-home situation as the pandemic continues."

Aloha Jordan and Blanca. Politico reports that two California assembly members said spending campaign funds on airline tickets to Hawaii for a conference last week, an event that has come under fire because of California's coronavirus surge and official warnings not to travel out of state, was appropriate. Assembly members Jordan Cunningham (R-Templeton) and Blanca Rubio (D-Baldwin Park) reported buying plane tickets on their late October campaign finance filings. Neither has responded to phone inquiries about attending the 100-person, four-day legislative conference at the Fairmont Kea Lani in Maui. The event, run by the Independent Voter Project has brought together lobbyists and lawmakers from California, Texas, and Washington, according to organizers. California lawmakers and lobbyists have been venturing to Hawaii each November to soak up the sun, socialize and attend panels, but never before during a worldwide pandemic. Rubio's campaign committee disclosed spending a total of $1,644 for three Hawaiian Airlines tickets for a conference in Hawaii this week. Cunningham's campaign committee reported spending $306 on a Southwest Airlines ticket for "11/15-Conference Travel, 1, CA/HI, RT." Legislators are required to file a campaign finance statement that details spending and contributions through Oct. 17. It is possible that other attendees purchased flights after that date or through means other than their campaign accounts. POLITICO contacted offices for 15 state lawmakers who reported having attended the same conference in recent years. The event typically draws moderate Democrats and Republicans and bills itself to bridge the political divide, all while being sponsored by major Capitol players. Of the 15 offices, eight said their lawmakers did not attend the trip, while seven have not returned calls, including spokespeople for Rubio and Cunningham. Rubio recently became head of California's moderate Democratic caucus — a role that presumes the kinds of connections with business groups that the Maui conference prizes. Cunningham recently fended off a well-funded Democratic challenger, keeping a battleground seat in the Republican column. The Independent Voter Project's Dan Howle has stressed the safety precautions in place, including Hawaii's requirement that visitors show proof of a negative test within 72 hours of arrival to avoid a lengthy quarantine. But the event launched the same day Gov. Gavin Newsom announced new shutdowns in nearly the entire state as coronavirus spreads at an unprecedented pace. The event also began three days after Newsom issued a travel advisory asking residents not to travel out of state and to quarantine upon return voluntarily. The governor also has implored people to cancel their Thanksgiving plans. It also follows the San Francisco Chronicle's revelations that Gov. Gavin Newsom attended a 12-person birthday party at the exclusive Napa Valley Restaurant, the French Laundry. "Fair to say that the timing isn't great," said Jack Pitney, a politics professor at Claremont McKenna College. "Anybody organizing an in-person event should think carefully about the optics, particularly in California, where the governor has just sent most of the state into purple. There's a chance this will not be received well by the general public."

The best way to get a job in the Biden White House is to have once worked for President-elect Joe Biden. That much has become clear this past week, with 13 of the first 14 White House appointments going to former Biden staffers. Several were high-ranking officials on the 2020 campaign or were in the vice president's office, but many also go back decades — to his Senate office or even his 1988 presidential run. Biden's transition team is also full of Biden veterans, suggesting many more are likely to pop up in his administration. Defense Secretary Leon Panetta, who also served with Biden in Congress, described Biden's approach to politics as "street smarts" versus "Harvard smart."

New COVID OSHA Regs - After a lengthy hearing, the Cal OSHA Standards Board unanimously voted (6-0) to adopt the emergency regulation on COVID-19 workplace prevention standards. Thank you to all who answered our ongoing survey and responded with comments. Opponents were concerned that regulation timing did not afford adequate stakeholder engagement, which would have identified and possibly corrected inconsistencies and implementation challenges for manufacturers. The regulation now heads to the Office of Administrative Law (OAL) for approval. They have ten calendar days to act. While OAL could find that the rule exceeds Cal OSHA's authority and reject it (sending it back to the Division for additional editing), that outcome is highly unlikely as their involvement is usually pro forma. If approved, the regulation would go into effect on November 29, 2020, and remain in effect for 180 days with the possibility of two 90-day extensions. Draft Regulations