NABTU Sues Over PLA Exemption North America’s Building Trades Unions filed suit in the United States District Court for the District of Columbia recently against two federal agencies and their chiefs for ignoring a still-in-effect executive order from former President Joe Biden requiring project labor agreements on some federal jobs. They asked the court to enjoin the Department of Defense and the General Services Administration from foregoing PLA use, as the Biden-era order remains on the books. Since Trump took office, he has enacted a flurry of executive orders undoing many Biden-era policies, and in January, a judge severely weakened the case for the federal government to use PLAs, but NABTU argues that the original order is still in effect. Story

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New Building for California Lawmakers Costing as Much as an NFL Stadium Leaders overseeing California's Capitol Annex project refuse to explain the cost of what will be one of the most expensive buildings in the United States. The $1.1 billion (and counting) Capitol Annex Project had an original cost estimate of $543.2 million in 2018. Within the next few years, the building will house offices for the state’s 120 lawmakers, the governor, lieutenant governor, and staff. It will also have committee hearing rooms where lawmakers debate and vote on various issues. The price tag is also expected to pay for a parking garage, but maybe not a new visitors' center on the west side of the historic state capitol building. Story

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When Headless PAGAs Attack! A split in authority has developed in the California Courts of Appeal regarding what to do when an employer moves to compel arbitration of a Private Attorneys General Act (PAGA) that is “headless”—that is, a claim seeking penalties on behalf of all allegedly aggrieved employees except the named plaintiff. (This is the latest trick the plaintiff’s bar has come up with to thwart enforceable arbitration agreements, because if there’s one thing plaintiffs’ lawyers hate, it’s arbitration!)

In Leeper v. Shipt, Inc., the court held that a PAGA claim cannot be headless, so in this circumstance, the “individual” PAGA claim is implied and can be compelled to arbitration. On the other hand, Parra Rodriguez v. Packers Sanitation, Inc. held that a court must take the complaint as it finds it and cannot “imply” an individual PAGA claim that was not pled.

The California Supreme Court has granted review of Leeper to answer two questions:

1. Does every PAGA action necessarily include both individual and non-individual PAGA claims, regardless of whether the complaint specifically alleges individual claims?
2. Can a plaintiff choose to bring only a non-individual PAGA action?

Story

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Changes to WC Mandate? To address concerns that some construction contractor applicants or licensees were providing a certification of exemption even though they had employees, SB 216 (Dodd, Chapter 978, Statues of 2022) expanded the license classifications required to have a Certificate of Workers’ Compensation Insurance on file with the CSLB to include the C-8 (Concrete), C-20 (HVAC), C-22 (Asbestos Abatement), and D-49 (Tree Service), regardless if the contractor has employees, effective January 1, 2023, and additionally required that all licensing classifications (regardless of employee status) obtain workers’ compensation beginning January 1, 2026. Before the passage of SB 216, only a C-39 (Roofing) contractor was required to have workers’ compensation insurance regardless of the number of employees.

The impetus for the CSLB’s sponsorship of SB 216 stemmed from enforcement-related work conducted by the CSLB. The CSLB reported that between January 2018 and March 2020, it issued 500 stop-work orders to licensed contractors on job sites for failure to secure workers’ compensation. It also took 342 legal actions against licensed contractors for workers’ compensation insurance violations. In addition, in 2017, CSLB conducted an audit of a sample of contractors in four classifications that perform outdoor construction likely to require multiple workers: C-8 (Concrete), C-12 (Earthwork/Paving), C-27 (Landscaping), and D-49 (Tree Trimming). The survey revealed that 59% of contractors audited had false workers’ compensation exemptions on file with the CSLB. Contractors who file a false workers’ compensation exemption are subject to disciplinary action and cancellation of the false exemption, which subjects the license to suspension.

SB 1455 and Sunset Review. The CSLB is subject to the joint sunset oversight review process. In December 2023, the CSLB submitted its required sunset review report to this committee and the Assembly Committee on Business and Professions. That report noted significant challenges stemming from the implementation of SB 216. The report highlighted concerns that the implementation of SB 216 would have had a greater impact on CSLB’s workload than anticipated and could potentially increase license processing times. At that time, in early 2024, the CSLB reported the following concerning the issue of implementing the requirement for workers’ compensation coverage:

“If the 2026 mandate in SB 216 took effect today, approximately 115,000 contractors would currently need a policy. CSLB may expect 10 percent of licensees to stop paying to maintain a license, resulting in a possible loss of $8 million to CSLB’s fund that may impact enforcement operations. Staff also anticipates a significant increase in document processing with an increase in certificates and possibly applications to inactivate or cancel licenses. Staff will need to explore an entirely online certificate process or pursue a partnership with the Workers’ Compensation Insurance Rating Bureau to assist with the tracking and registering of certificates…

…As to workforce issues, contractors have expressed concern about being forced to pay for a policy that does not benefit them. There has always been a concern with any requirement of this nature that a percentage of licentiate will “go underground” instead of paying for workers’ compensation insurance.”

As a result of the concern raised concerning those potential licensees who may qualify for an exemption and to address the administrative workload impacts from the CSLB, SB 1455 (Ashby, Chapter 485, Statutes of 2024) paused the requirement for all licensees to have workers’ compensation coverage, regardless of employee status by January 1, 2026, and instead delayed implementation of the requirement until January 1, 2028, and additionally required the CSLB to establish a process, no later than January 1, 2027, to verify through and audit or other means that a contractor applicant or licensee may not have employees.

Although SB 1455 provided the CSLB with additional time to implement the requirement that all licensees obtain workers’ compensation as part of the licensure or renewal process and further required the CSLB to establish a process to verify that an applicant or licensee may legitimately not have employees, the CSLB has instead sponsored this bill as a means to achieve the legislative directive in SB 1455.

Instead of mandating workers’ compensation coverage for all licensees, as required by SB 216, SB 291 (Grayson) would instead exempt a licensee who self-certifies that they have no employees and whose work includes labor and materials, which are no more than $2,000, from the requirement to have workers’ compensation coverage. SB 291 specifies that a $2,000 contract cannot be split into more than one contract for the project to avoid the coverage requirements. This bill would remove the previous mandate for a C-8 (Concrete), D-49 (Tree Service), and C-20 (Warm-Air Heating, Ventilating and Air-Conditioning) licensee to have workers’ compensation, regardless of employee status, and allow these licensees to self-certify that they do not have employees. This bill will now require only a C-39 (roofing contractor) to obtain workers’ compensation insurance regardless of employee status.

To address the Legislature’s mandate that the CSLB establish a process to verify that a licensee or applicant who states that they do not have any employees, SB 291 would require the CSLB to establish as part of the application and renewal process, an open book examination, which will require applicants and licensees to answer questions correctly regarding workers’ compensation laws.

Under current law, BPC § 7126 explicitly states that any licensee or agent who violates the workers’ compensation requirements under existing law is guilty of a misdemeanor. This bill adds new civil penalties for violating the requirement to have workers’ compensation insurance for those applicants and licensees who have employees, in addition to the current misdemeanor penalties. The civil penalties range between $10,000 and $30,000, depending on the license type and the number of violations received.

Policy Issues Raised by Committee The Senate Business, Professions, and Economic Development Committee raised several points about this proposed retreat when it heard the bill on April 21.

Is an open-book examination sufficient? Will an open-book examination aid the CSLB in evaluating whether or not a licensee truly has no employees? The exam may be duplicative, as the content should be included in the Law and Business exam, which is already a requirement for licensure. The examination adds another step in the licensure and renewal process, which could increase application and renewal processing timeframes, costs for printing and mailing the exam, and may not ensure the applicant or licensee has a sufficient understanding of the law.

Rolling back previous workers’ compensation requirements for higher risk classifications. SB 216 required four different licensing classifications to obtain workers’ compensation insurance regardless of employee status. The classifications include asbestos abatement contractors, concrete contractors, heating, ventilation, and air conditioning contractors, and tree service contractors. As currently drafted, this bill would roll back the requirement for these licensing classifications to be mandated to have workers’ compensation insurance, regardless of employees, and allow them to file an exemption if they contract for less than $2,000. This rollback does not take into account prior research conducted by the CSLB. Could this bill place those licensees or employees at risk? The CSLB may need to complete an updated industry study on those licensing classifications that may be able to operate without employees.

Are there potential workarounds for the $2,000 contract threshold? This bill would allow a licensee to self-certify that they have no employees if they contract for a project (labor and materials) less than $2,000 and specifies that the contract cannot be broken into multiple contracts to avoid the $2,000 threshold. Unfortunately, this exemption could potentially be circumvented. The $2,000 threshold appears to be arbitrary and does not reflect any study conducted by the CSLB finding that only contracts offered at $2,000 or less ensures that a licensee would be eligible for an exemption, or that any contract higher would require employees.

Does this bill satisfy the legislative mandate for an audit or other proof to verify an applicant or licensee’s eligibility for a workers’ compensation exemption? The CSLB is required to establish a process and procedure that may include an audit, proof, or other means to verify that an applicant or licensee is eligible for an exemption from the requirement to obtain workers’ compensation insurance by January 1, 2027 (BPC § 7125.7). It’s unclear if the provisions of this bill satisfy the legislative mandate for the CSLB to establish a process to verify if a licensee may not have any employees and would be eligible for an exemption. The proposed increased civil penalty and open book examination are not comparable to an audit or providing proof that an applicant or licensee does not have employees.

To address the concerns raised above, the author agreed to amend the bill to strike the current contents of this bill, except the increased penalties for violating the current workers’ compensation coverage requirements and the inclusion of disciplinary actions related to workers’ compensation violations in the report the CSLB submits annually to the Legislature, to provide greater insight into the current number of violations for workers compensation exemptions. In addition, to reinforce that the Legislature already provided time for the CSLB to address the issue of verifying employee status, this bill should clarify that the CSLB must provide a mechanism no later than January 1, 2027, to effectively determine whether a licensee has no employees and qualifies for an exemption to the workers compensation coverage requirements and report back to the Legislature.

With those amendments, the Committee approved the bill 11-0.

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Trump Orders Federal Procurement Overhaul President Trump ordered federal agencies to overhaul their procurement systems and regulations. According to Federal News Network, this is the biggest effort to modernize how federal agencies buy products and services since Congress passed the Federal Acquisition Streamlining Act and the Federal Acquisition Reform Act into law in the ’90s.

Trump’s April 15 executive order said the FAR had evolved “into an excessive and overcomplicated regulatory framework.” He called for it to include only those “provisions required by statute or essential to sound procurement,” and said any provisions that do not advance these objectives should be removed.

In a second order on April 16, Trump also directed agencies to purchase only commercially available products and services, rather than unique government systems or custom solutions, unless they are given a waiver from the agency’s approval authority. Story

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Former Edison Executive Calderon, Now A Lawmaker, Seeks to Cut Rooftop Solar Credits Nearly 2 million California rooftop solar owners could lose the energy credits that help them cover what they spent to install the expensive, climate-friendly systems under a proposed bill. The bill’s author, Assemblymember Lisa Calderon (D-Whittier), is a former executive at Southern California Edison and its parent company, Edison International. She says the credits that rooftop solar owners receive when they send unused electricity to the grid raise the bills of customers who don’t own the panels. Assembly Bill 942 would limit the program’s benefits to 10 years, half the 20-year period the state had told the rooftop owners they would receive. The bill would also cancel the solar contracts if the home were sold. Story

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Steve Hilton, Former Fox News Host, Is Running for California Governor Steve Hilton, a former Fox News host who has also worked in conservative politics in Britain, announced on Monday that he was running to become California’s next governor. Mr. Hilton is the second prominent Republican to enter the 2026 race, but he faces difficult odds. California voters have not elected a Republican to statewide office since they re-elected Arnold Schwarzenegger in 2006. Story

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Here's Where Your Tax Dollars Are Going Individual income taxes are the largest source of tax revenues and half of total annual receipts. Here's what they support in the federal budget. More



From Hostile to Union Leaders to Vacationing with Them Leaders at the Chula Vista Elementary School District once had an adversarial relationship with the teachers’ union. That’s changed in the years since Francisco Tamayo, a former union leader in the Sweetwater Union High School District, joined the Chula Vista school board. With Tamayo on the Chula Vista Elementary District Board, Voice of San Diego reports, the district’s teachers’ union has gotten pay raises five of the last eight years and won concessions from district leaders – even as the district faces a $15 million budget deficit this year. Tamayo’s partnership with union president Rosi Martinez has made those gains possible. Martinez and Tamayo both say their relationship is professional. But their close ties have provoked questions about accountability. Story

Clashing Compromises Chavez’ Celebration Assemblymember Corey Jackson recently confronted Assemblymember Carl DeMaio on the body’s floor over remarks about a resolution celebrating labor leader Cesar Chavez ahead of the state-observed holiday Cesar Chavez Day. Chavez’s views on undocumented immigrants were complicated and related to their role as strikebreakers when he was organizing the United Farm Workers union in the 1960s and 1970s.

DeMaio, a San Diego Republican known for needling Democrats, drew attention to this with his floor speech. “During his life, Cesar Chavez spoke out against illegal immigration while affirming legal immigration,” DeMaio said. “He was a strong voice for the Latino community and Latino workers in our country while also holding concerns and opposing illegal immigration.”

Jackson, a Riverside-area Democrat, took issue with this frame, calling it “very disrespectful to the heroes of our communities” and leaving his seat to chastise DeMaio at his desk. “You should be disgusted [with] yourself,” he yelled. “Grow a soul for a change. That’s a piece of crap move.”

DeMaio remained seated at his desk during the interaction while Assemblymember Tina McKinnor and Majority Leader Cecilia Aguiar-Curry stood in front of Jackson, and Assemblymember Josh Lowenthal tugged at his arm and guided him away.

DeMaio later claimed in an X post Jackson “physically lunged” at him. However, the video that accompanied the post also appeared to show DeMaio smiling during the face-off. The incident was reminiscent of a similar exchange that took place last year, when Jackson and Republican Assemblymember Bill Essayli got into a dispute during a tense floor debate over a bill banning school districts from outing transgender students. [Politico]

And in related news, Former Assemblymember Bill Essayli is wasting no time jumping into his new job as U.S. attorney. Essayli announced a federal task force to investigate “fraud, waste, abuse, and corruption involving funds allocated toward the eradication of homelessness” in the state’s Central District. He threatened arrests if the task force finds federal violations. “California has spent more than $24 billion over the past five years to address homelessness,” Essayli said in a statement. “But officials have been unable to account for all the expenditures and outcomes, and the homeless crisis has only gotten worse. Taxpayers deserve answers for where and how their hard-earned money has been spent.”

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Copper Caper Clampdown The Fresno City Council will take a swing at fighting copper theft with an ordinance that could mean jail time for having more than 10 pounds without a legitimate purpose. The Fresno County Board of Supervisors unanimously approved a similar ordinance recently. It was introduced by Supervisors Garry Bredefeld and Nathan Magsig. The county ordinance prohibits receiving, possessing and transporting more than 10 pounds of commercial grade wire stripped of its protective sheathing, except by a licensed business.

An afternoon news conference after the supervisors’ vote brought out business, farming and elected officials from the county and city of Fresno. The action represents a collaborative effort to fight copper theft, which causes tens of thousands of dollars in damages to water pumps and machinery for something worth about $3.25 a pound from a recycler.

At the Fresno City Council’s meeting on Thursday, April 10, members will consider an ordinance that goes even further with penalties in city limits. It was introduced by Council President Mike Karbassi and Councilmembers Annalisa Perea and Tyler Maxwell.

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Utah’s Mike Lee won the energy gavel. Now what? It's been more than three months since Mike Lee took control of the Senate Energy and Natural Resources Committee, and colleagues and advocates are still wondering how the Utah Republican will use his perch, writes Kelsey Brugger. Lee, who has a deeply conservative voting record, has been pushing politically difficult ideas like selling public lands and retooling environmental laws. But he is not known for being a schmoozer or dealmaker. [Politico]

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DA to Diversion The California State Bar is sending San Francisco District Attorney Brooke Jenkins to a diversion program after a series of ethics complaints against her. Story

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Commissioner Compromises Career With less than two years left in his final term, Insurance Commissioner (you know we have one, right?) Ricardo Lara has been using what appears to be a shell campaign committee to pay for nearly $30,000 in meals and drinks at some of the country’s fanciest restaurants and bars, according to an investigation by The Standard. Almost a third of these charges were listed as campaign meetings, and it’s unclear who Lara has been wining and dining during meals costing hundreds or, in at least one case, more than $1,000. Story

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WECA’s Government Relations Surveys Legislation At its April meeting, WECA’s Government Relations Committee adopted the following positions:

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. WECA Position: SIA (Support if Amended)

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 WECA Position: Support

AB 296 (Davies - R) This bill would require school districts and schools to host at least one apprenticeship fair event during each school year. WECA Position: Support

AB 303 (Addis - D) Restricts new installations of utility size BESS WECA Position: Oppose

AB 305 (Arambula - D) This bill would exempt small modular reactors from existing law prohibiting new nuclear power plant construction until it’s too late. WECA Position: Support

AB 306 (Schultz - D) It proposes a moratorium on adopting or modifying new state and local building standards affecting residential units from June 1, 2025, to June 1, 2031, with limited exceptions. WECA Position: Support

AB 345 (Jackson - D) Implements a deadline by which the Division of Apprenticeship Standards (DAS) must render a decision on an application for a new apprenticeship program outside of the building and construction trades and firefighting programs and provides for conditional approval if certain conditions are met. WECA Position: Watch

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. 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. WECA Position: Support

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. WECA Position: Watch

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. WECA Position: Watch

AB 667 (Solache - D) Requires CSLB to provide examination interpreters WECA Position: Watch

AB 742 (Elhawary - D) Requires CSLB to prioritize license applications from contractors who are descendants of American slaves WECA Position: Watch

AB 765 (Flora - R) Sponsored by Coalition for ETP and Jobs, this bill would prohibit money in the Employment Training Fund from being diverted, transferred, or otherwise used to pay the interest charged on federal loans to the Unemployment Fund or related liabilities without the approval of the Legislature by statute and a public report justifying the necessity for the diversion, transfer, or use. The bill would also make related findings and declarations. WECA Position: Support

AB 862 (Castillo - R) It requires the collection and reporting through the California School Dashboard (Dashboard) and Local Control and Accountability Plan (LCAP) of the percentage of students who intend to enroll in college or specified careers. WECA Position: Support

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 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. WECA Position: Watch

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. WECA Position: Support

AB 1198 (Haney - D) Requires contractors to pay the new prevailing wage whenever DIR changes them. WECA Position: Oppose

AB 1221 (Bryan - D) This bill requires employers to notify workers 30 days before introducing any workplace surveillance tools. The notification must detail the data collected, its purpose, and the necessity of the surveillance. It prohibits the use of surveillance technologies that incorporate facial, gait, or emotion recognition. The Labor Commissioner is responsible for enforcing the bill, employees can take civil action for violations, and public prosecutors can also enforce the provisions. Employers violating the bill face a $500 civil penalty for each infraction. WECA Position: Oppose

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. WECA Position: Oppose

AB 1235 (Rogers - D) Prohibits a contractor from being prequalified for, shortlisted for, or awarded a design-build contract with the Trustees of the California State University unless the contractor provides an enforceable commitment to the trustees that the contractor and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract WECA Position: Watch

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 WECA Position: Watch

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. WECA Position: Oppose

AB 1371 (Sharp-Collins - D) This bill would revise and recast existing law to, among other things, allow an employee to refuse to perform a task assigned by an employer if the employee has an apprehension that the performance of the assigned task would result in injury or illness to the employee or other employees. WECA Position: Oppose

SB 61 (Cortese - D) Limits the retention payment amount for a private work of improvement from exceeding five percent, subject to certain exceptions. WECA Position: Support

SB 75 (Smallwood-Cuevas - D) Creates a 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. WECA Position: Support

SB 84 (Niello - R) 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. WECA Position: Support

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 WECA Position: Oppose

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. WECA Position: SIA (Support if Amended)

SB 291 (Grayson - D) Repeals the requirement that all contractors must have a workers' compensation policy, except for roofers. WECA Position: Oppose

SB 310 (Wiener - D) Violates last year’s amendments to PAGA by permitting W&H penalties to be recovered through an independent civil action under PAGA. 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. WECA Position: Oppose

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. WECA Position: Oppose

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. WECA Position: Oppose

SCR 55 (Niello - R) Would declare the week of April 27, 2025, to May 3, 2025, inclusive, as “Apprenticeship Week” in the State of California and would request that the Governor issue a proclamation calling on the people of the great State of California to observe the week with appropriate programs and educational activities. WECA Position: Support

Congressional Democrats Re-Introduce PRO Act Last Wednesday, House and Senate Democrats re-introduced the “Protecting the Right to Organize Act” (or PRO Act), a bill that would rewrite much of the country’s private-sector labor laws by banning Right-to-Work states, require federal government-appointed arbitrators to mandate first contracts, effectively outlaw independent contracting, among other dramatic changes. Although it may only be a political stunt, as Teamsters’ President Sean O’Brien indicated during his podcast interview with Marianne Williamson, the legislation is being led this year by Sen. Bernie Sanders (I-Vt.) and Rep. Bobby Scott (D-Va.), reported HuffPost. O’Brien explains the “inside baseball” being played inside Washington, explaining to Williamson how the “PRO Act was going to be used as a political pawn” (by Democrats). O’Brien then explains how the Teamsters are working with Democrats and Republicans to enact a “version” of the PRO Act and how his union avoids using the NLRB. The bill has passed the House of Representatives twice in the past, however, it has never reached the Senate Floor for a vote.

This year, with both the House and the Senate under Republican control, it is uncertain whether the bill would even pass the House, let alone reach the Senate Floor. In the unlikely event it were to pass both chambers, though, it would likely face a presidential veto.

On Tuesday, though, a bipartisan Senate bill was introduced that, if passed, would implement a key component of the PRO Act called binding arbitration. Given its bipartisanship and presuming the PRO Act fails, it is possible that the bipartisan binding arbitration bill may get support from both sides of the political divide. If that were to happen and the Faster Labor Contracts Act were to pass, it is unclear whether President Trump would veto it.

Predictably, employer representatives, including Associated Builders and Contractors and the Associated General Contractors of America, have long opposed the PRO Act, declaring it anti-competitive and claiming it may force workers to join a union when they don’t wish to.

“While the PRO Act purports to help workers, it actually strips away many of their rights and privacies while expanding opportunities to coerce law-abiding employers, thereby hurting the economy and upsetting a delicate balance of rights and restrictions established by the National Labor Relations Board, the courts, and Congress,” Brian Turmail, AGC’s vice president of public affairs and workforce, told Construction Dive. “If enacted, this measure will harm workers, undermine the economy and end decades of labor stability.” In a statement, Kristen Swearingen, ABC’s Vice President of Legislative and Political Affairs, called the PRO Act and its provisions harmful. Story

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California Union Pushes Arizona Jobs Out For more than 30 years, Axon, a public safety technology company that makes Tasers and bodycams, has called Scottsdale, AZ home. Founded by Chaparral High School graduate Rick Smith, the company is planning a major expansion of its corporate headquarters as part of a development of 74 acres near Hayden and the 101. The new investment would be approximately $1.3 billion. But an out-of-state labor group, Worker Power, the political arm of the California-based UniteHere, was lurking, determined to disrupt the job-creation project. Story

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Study Shows Workers Want Better Communication, Psychological Safety

• While workplace safety remains a top priority for employees, significant gaps persist between employee expectations and employer efforts, according to a new study by risk management provider AlertMedia.
• The report surveyed more than 2,000 full-time U.S. employees to understand their perceptions of safety and to provide employers with data and insights into how they can better deliver against employees’ safety expectations.
• Among the key findings, while nearly all employees (96%) believe physical safety at work is essential, more than half (56%) do not feel completely safe at work.
• Nearly all (95%) consider mental health important, yet 15% believe their employer ignores it altogether.

Read More

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Legislation

Licensure

SB 291 – Grayson | The CSLB wants to reverse the industry-supported elimination of workers’ compensation exemptions for construction contractors.

SB 282 – Wiener | Requires the California Energy Commission, by 2027, to establish a statewide certification program for licensed contractors of residential heat pump water heaters and heat pump heating, ventilation, and air conditioning (HVAC) systems to obtain a heat pump installation certification, and would require the commission to create a state training program.

Apprenticeship:

AB 296 – Davies | Would require schools to hold at least one career fair every year, which would include information on apprenticeships.

Contracts:

AB 483 – Irwin | Would create new contact requirements for installment contracts that could make home improvement loans disappear.

AB 559 – Berman | Would clarify that ADU construction falls under HIC requirements, controlling progress payments. The bill is in reaction to recent cases in which consumers lost hundreds of thousands on ADUs that were never delivered.

AB 1327 – Aguiar-Curry | Would permit a notice of cancellation of a home improvement or home solicitation contract to be conveyed to the seller orally by telephone.

SB 61 – Cortese | Will limit retention on private construction projects to 5% of the contract value.

SB 517 – Niello | Will require a home improvement contract with a subcontractor performing more than 50% of the total estimated project cost to contain the subcontractor's name and contact information.

Public Works:

AB 963 – Petrie-Norris | Requires contractors and developers to give unions extensive documents about development projects, putting contractors and their employees at risk.

AB 1198 – Haney | Will require contractors to pay new prevailing wage rates whenever DIR changes them.

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Lori Chavez-DeRemer Confirmed as Labor Secretary Several unions welcomed news of Chavez-DeRemer’s confirmation on Monday evening. The Amalgamated Transit Union called the former congresswoman from Oregon “a strong advocate for working people and unions.” Sean O’Brien, president of the International Brotherhood of Teamsters, said Chavez-DeRemer will do “an excellent job” and “protect the working class.” Story

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Solar-Utilities Reporting, Guidance, and Education (SURGE) provides some essential resources to help solar contractors better understand prevailing wage requirements as they submit copies of certified payroll records to the SURGE Compliance Portal per AB 2143 and PUC 769.2.

Prevailing Wage/Labor Compliance Training The California Department of Industrial Relations (DIR) has announced its series of upcoming trainings for 2025. These educational seminars across the state provide an overview of prevailing wage and apprenticeship standards compliance and public works enforcement. The first webinar event is on Thursday, March 13, 2025 from 8:30 AM – 4:00 PM. To explore all of these upcoming events, please visit the following link: DIR Upcoming Trainings

DIR Distribution List To stay current with the DIR prevailing wage training and other information and resources, you can sign up for email notices. Please use the following link to sign up on the DIR’s website. Sign Up for DIR Email Notices

SURGE Upcoming Events Additionally, SURGE has upcoming events for solar contractors to navigate the SURGE Compliance Portal. Visit the SURGE Happenings website for upcoming event information.

• March 25, 2025: CPUC SURGE Event: What is AB 2143/PUC 769.2? How to Stay in Compliance - Register Here
• April 16, 2025: SURGE & DIR Informational Webinar (registration coming soon)

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30 states have adopted English as an official language—11 through ballot measures—since 1920 On March 1, President Donald Trump (R) issued an executive order "[designating] English as the official language of the United States." While the federal government had never established an official national language before, 30 states have designated English as their official language. Three of the 30 states—Alaska, Hawaii, and South Dakota—also recognize some Indigenous languages as co-official languages. Nebraska was the first state to adopt an official language by ballot measure in 1920. Oklahoma is the most recent state to vote on a measure, with voters approving State Question 751 in 2010. Story

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District Supes Denounce Taxpayers Association School districts pushing bond measures have long coveted endorsements from the San Diego County Taxpayers Association. But district superintendents started getting sick of the process the Taxpayers Association demanded. They raised concerns to the media before Taxpayers Association CEO Haney Hong resigned late last week. Story

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Rivas Purges Members from Assembly Committee Posts A group of Republican lawmakers—and at least one Democrat—have touched a nerve with Assembly Speaker Robert Rivas (D-Hollister). In a late Friday night announcement, Rivas booted five Republican lawmakers from key committee posts. Story

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Out Of Energy: California paused a $290 million home energy rebate program on Monday, citing the uncertainty created by President Donald Trump's decision to freeze funding for climate-related programs, reports POLITICO. The California Energy Commission said it will stop accepting applications for the program, which uses federal money to help homeowners replace broken or inefficient heating or cooling systems with more efficient heat pumps. However, the commission said it would continue to honor rebates for homeowners whose applications have already been approved. The commission said in a statement that the program will be paused "until the Trump Administration provides additional information on the funding for this program."

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Law On Legislators’ Sponsored Travel Falls Short Following a CalMatters investigation, California’s campaign finance watchdog agency concluded this month that a law — meant to make transparent who is paying for California legislators’ sponsored travel — is falling short. In 2023, CalMatters revealed that a 2015 law requiring trip organizers to annually disclose their major donors had been used only twice in seven years — despite interest groups paying for millions of dollars in travel for lawmakers during that time. The Fair Political Practices Commission’s audit, triggered by CalMatters’ reporting, recommends simplifying disclosure requirements to cover more interest groups that take lawmakers to policy conferences and on international study tours — a change that can only be made by those very same legislators.

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My View

Huntington Beach Councilman Tony Strickland Leads in Special Election for State Senate On Tuesday, Feb. 25, voters in California’s 36th State Senate District special election and an early tally of ballots in Orange and Los Angeles counties showed Republican Tony Strickland with a strong lead. As of the latest tally, Strickland maintained an early 51% lead over Democrat Jimmy Pham. Pham is an attorney and serves on Westminster’s traffic commission. Strickland, a Huntington Beach councilmember and former mayor, is eyeing a return to the California Legislature, where he has already served for a decade — first as an Assembly member from 1998 to 2004, then as a state senator from 2008 to 2012 — representing parts of Ventura and Santa Barbara counties.

“Tony Strickland has always been a great supporter of free enterprise and open competition,” said WECA’s Southern California Government Affairs Representative Dave Everett (pictured with Strickland). “Whether it is in the California Legislature or at the local level in Huntington Beach, merit shop contractors know they can count on Tony Strickland.” The special election was triggered after former State Senator Janet Nguyen vacated the seat to join the Orange County Board of Supervisors. Nguyen endorsed Strickland to succeed her in the Senate. The race for the 36th State Senate District, which includes communities in Los Angeles and Orange counties, could be decided outright if a candidate secures more than 50% of the vote in the primary, meaning the runoff election scheduled for April would be canceled.

Despite Strickland’s strong early lead, Orange County Democratic Party Chair Florice Hoffman said she is encouraged by the initial results. “It looks like Jimmy Pham will be in a runoff in this Republican district,” she said. Pham ran for the 70th Assembly District seat in 2024 but was defeated by Republican Assemblymember Tri Ta.  The 36th Senate District stretches from Seal Beach to San Clemente along the Orange County coast to a small portion of Los Angeles County. It includes portions of Buena Park, Cypress, Fountain Valley, Garden Grove, La Palma, Los Alamitos, Stanton, and Westminster in Orange County and Artesia, Cerritos, and Hawaiian Gardens in Los Angeles County. Republicans make up the district's most significant share of registered voters at 37.11%. Democrats follow with 33.93%, while 22.61% of voters are registered with no party preference. Whoever is elected in Tuesday’s primary or the general election in April will serve a term that runs through Dec. 7, 2026.



Huntington Beach Councilman Tony Strickland (left) and WECA Southern California Government Affairs Representative Dave Everett (right)

Stan Ellis (R) Wins Special Election for Assembly District 32 In a decisive victory, Bakersfield-area businessman Stan Ellis (whom WECA supported) has won the special election for California's 32nd Assembly District. Ellis, a Republican, secured 64% of the vote, avoiding a runoff and succeeding Vince Fong, who vacated the seat after winning a congressional election last year. Stan Ellis is a farmer, local businessman, and community member with deep roots in the Central Valley. Ellis's campaign focused on common-sense leadership, advocating for less regulation, safer communities, and economic opportunities. "This victory is a clear message that our communities want leadership that puts working families and our future first," Ellis stated in his victory email.

The district, which includes parts of Visalia and Bakersfield, has been without representation since June 2024. Ellis's win brings a renewed focus on addressing the critical needs of the Central Valley, and he expressed eagerness to begin his work in Sacramento.

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AZ’s Ciscomani Expresses Reservations Over House Republican Budget Resolution Southern Arizona U.S. Rep. Juan Ciscomani (R) is expressing reservations over a Republican budget blueprint that could result in significant cost shifts from the federal government to Arizona and negatively affect the state’s Medicaid program, known as AHCCCS, or the Arizona Health Care Cost Containment System. Story.

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Plaintiffs Are Responsible for Commencing Court-Ordered Arbitration The California Court of Appeal held that after the employer-defendant successfully moved to compel arbitration of the plaintiffs’ employment-related claims, the employer-defendant did not waive its right to arbitration by failing to commence arbitration. The fact that the employer was the only party that “wanted” arbitration was irrelevant. The arbitration agreement required the plaintiffs to initiate arbitration, which they failed to do. Michelle Arzate, et al. v. ACE American Insurance Company, Case No. B336829. Story

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Big day for crypto: The US Senate’s first subcommittee on digital asset policy convened this week. Punchbowl got a sneak peek at the opening remarks from the panel’s top Democrat Sen. Ruben Gallego (Ariz.). The Arizona Democrat, whose election bid was backed by the crypto super PAC network Fairshake, will say crypto “presents both extraordinary opportunities and significant challenges.” Gallego will also stress the need for “robust oversight,” including a call to ensure crypto is “not used to circumvent existing laws on money laundering, tax evasion, or illicit financing.” Gallego also wants to focus on “encouraging productive and useful innovation to everyday Americans. The growth of things like ‘meme coins’ on everything from Trump to DOGE to Peanut the Squirrel are about flashy headlines and trending on social media, not about helping traditionally un- and under-banked communities gain access to the financial system.” [Punchbowl]

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Labor Nominee Gets a Boost Democratic Sen. Maggie Hassan will vote to advance Lori Chavez-DeRemer through the Senate HELP Committee on Thursday, significantly boosting the chances that Trump’s Labor secretary nominee will get confirmed. Hassan is the first Democrat on the HELP Committee to say she will vote for Chavez-DeRemer, making up for potential opposition from panel member Rand Paul. [Politico]

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What is Happening on the Labor Front in DC? Kristen Swearingen Explains. A lot is going on in Washington, DC, these days. In this episode of Labor Relations Radio, Kristen Swearingen, Vice President, Legislative & Political Affairs at the Associated Builders & Contractors, Inc. and spokesperson for the Coalition for a Democratic Workplace, joins host Peter List to discuss some of the issues, including the re-introduction of the PRO Act, Sen. Josh Hawley’s “PRO Act-Lite” framework, as well as President Trump’s nominee to head the Department of Labor, Lori Chavez-DeRemer. Listen

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Bill Introductions in the California Legislature Over the past decade, the California Legislature and its 120 legislators have introduced between 1,900 and 2,600 bills per year, each year of the 2-year legislative session, by the February introduction deadline. Fewer than 50 additional bills get introduced after the deadline (e.g., due to a rule waiver or a bill introduced by a committee, which are not subject to the introduction deadline). The 2023 California Legislative Session saw more introductions than usual, the highest number in over a decade. The 2024 Session returned those introduction numbers to more normal levels. Story

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Guess Who Stymies Housing Construction A passel of recent California laws was supposed to supercharge the construction of desperately needed housing. According to YIMBY Law, they haven’t even come close. One California law was supposed to flip defunct strip malls across California into apartment-lined corridors.

Another was designed to turn under-used church parking lots into fonts of new affordable housing.

A third would, according to supporters and opponents alike, “end single-family zoning as we know it.” Fast-forward to 2025 and this spate of recent California laws, and others like it intended to supercharge the construction of desperately needed housing, have had “limited to no impact on the state’s housing supply.”

That damning conclusion comes from a surprising source: A new report by YIMBY Law, a pro-development nonprofit that would very much like to see these laws work.

“It’s grim,” said Sonja Trauss, executive director of YIMBY Law. Though she acknowledged some of the laws are still new, she blamed their early ineffectiveness on the legislative process which saddled these bills with unworkable requirements and glaring loopholes.

“Everybody wants a piece,” she said. “The pieces taken out during the process wind up derailing the initial concept.”

What are these requirements and loopholes that have prevented these laws from succeeding? Maybe not surprisingly, they are the frequent objects of critique by YIMBY Law and the Yes in My Backyard movement more generally.

One is the inclusion of requirements that developers only hire union-affiliated workers or pay their workers higher wages. Story

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Acting NLRB General Counsel Rescinds Controversial Memoranda On February 14, 2025, National Labor Relations Board Acting General Counsel William Cowen issued Memorandum 25-05, rescinding more than a dozen policy memos issued by his predecessor. Cowen cited an unsustainable backlog of cases as the primary motivation for the rescission. Cowen also signaled that he plans to publish new guidance to replace some of the rescinded memos. Others may be abandoned altogether. Learn More

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CSLB Newsletter Please enjoy the Winter 2025 edition of the California Licensed Contractor Newsletter – a quarterly newsletter from the Contractors State License Board.

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Santa Barbara County Supervisors Are Planning to Give Themselves a 48% Raise On February 25, 2025, the Santa Barbara County Supervisors are planning to give themselves a 48% raise. You read that right. According to Andy Caldwell, Executive Director of the government watchdog COLAB (Coalition of Labor, Agriculture and Business), that means they will be making $171, 309 per year for a part-time job. They are currently paid $115,000. Story

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Hawley Sells Moreno on Government Control of Private Contracts Punchbowl News has reported that Senator Bernie Moreno (R-OH) is cosponsoring one of the bills based on Senator Josh Hawley’s (R-MO) recently released legislative framework implementing a “new direction” for Republican labor policy, which ironically appears to consist entirely of provisions stolen from Senator Bernie Sanders’ (D-VT) Protecting the Right to Organize (PRO) Act (S 567, HR 20, 118th Congress) and Senator Markey’s bill that brings the warehouse sector under government control and creates a new subagency at the Department of Labor (Warehouse Worker Protection Act, S 5208, 118th Congress). The framework is expected to be broken down into five pieces, and Moreno is reportedly cosponsoring the legislation that would implement government control over management-union contract negotiations.

The legislation, the Faster Labor Contracts Act, requires employers and unions to begin negotiating collective bargaining agreements within 10 days after a union wins a representation election and execute their agreement within months. Consequences for failing to meet this arbitrary timeline is mandatory arbitration, where government-appointed arbitrators set terms for the first contract. [Employment Policy Network]

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Electricity Causes 150 Workplace Deaths Each Year Electricity continues to be one of the leading causes of workplace fatalities and injuries in the U.S., according to new workplace safety statistics from ESFI.

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Mayor and San Diego Supervisor Candidate John McCann Visits WECA San Diego With less than 6 weeks until the April 8, 2025, special election for San Diego County Supervisor, WECA was proud to host Chula Vista Mayor John McCann for a tour and a discussion about workforce development this week at WECA’s San Diego Training Center. Joined by WECA Board President and CDM Electric Vice President Dru Wells, Bill Baber, and Dave Everett from WECA’s Government Affairs team, Mayor McCann sat down with WECA to discuss workforce development, public works projects, and apprenticeship opportunities.

Mayor John McCann is running for the open San Diego County Supervisor seat for District 1. With two Democrats and two Republicans on the San Diego County Board of Supervisors, this election will decide which party sets the agenda for the county’s budget and services. A special election will occur on April 8th, with a possible runoff in July if no candidate wins 50% +1 votes. Three Democrats — San Diego City Councilmember Vivian Moreno, Imperial Beach Mayor Paloma Aguirre, and Chula Vista Councilmember Carolina Chavez — and one Republican, Chula Vista Mayor John McCann, have confirmed they are running. Vivian Moreno voted for a discriminatory PLA on all City of San Diego construction, as did Carolina Chavez for the City of Chula Vista. And while the Laborers Union has endorsed Imperial Beach Mayor Paloma Aguirre, she has not yet imposed a PLA on Imperial Beach. Mayor John McCann, of course, voted against the PLA in the City of Chula Vista.

On the tour of our San Diego facility this week with Mayor McCann, WECA highlighted how apprenticeship presents great opportunities for students, and how beneficial it is for young adults to begin adulthood debt-free. We also discussed some of the discrimination and cost increases involved with PLAs. Thank you, Mayor McCann, for taking time out of your busy schedule to learn more about our members and students. It was a critical discussion on the region’s workforce development needs as well as some of the challenges facing the construction industry in California.

Do Voters Want OSHA to Go Away? Rep. Andy Biggs, R-Ariz., last month proposed the Nullify Occupational Safety and Health Administration Act, which would abolish the Occupational Safety and Health Act of 1970 that created OSHA. Biggs introduced similar legislation in 2021, which stalled out after it was referred to the House Committee on Education and Labor. “OSHA’s existence is yet another example of the federal government creating agencies to address issues that are more appropriately handled by state governments and private employers,” Biggs said in a statement in 2021. Perhaps someone should remind Biggs that only 22 states (including Arizona) have OSHA-approved state plans. I guess workers in those 28 other States are SOL. Story

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Trump's Labor Secretary Pick Is a Union Favorite—And a Threat to Right-to-Work Laws Given the salacious allegations against some of President Donald Trump's cabinet nominations, it is understandable how Secretary of Labor nominee Lori Chavez-DeRemer has mostly flown under the radar. But from a policy perspective, Chavez-DeRemer's voting record is concerning—especially for those who value federalism and coercion-free workplaces. For most of her political career, Chavez-DeRemer, who lost her Oregon congressional seat in November, has been a polarizing figure. The daughter of a Teamster, her soft spot for unions puts her at odds with her Republican colleagues and right-of-center groups. In a letter to the Senate, National Right to Work Committee president Mark Mix wrote that Chavez-DeRemer's judgment is "clearly compromised" and that she "must be rejected as the Secretary of Labor."

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DOD Halts Plans on Construction Projects The Department of Defense has ordered its contracting officers to halt the use of project labor agreements on “large-scale construction projects,” according to a memo published by Construction Dive. The notice, dated Feb. 7, says contracting officers shall remove PLA requirements created by former President Joe Biden that apply to projects receiving $35 million or more in federal funds. As part of the memo—signed by John M. Tenaglia, principal director of defense pricing, contracting and acquisition policy for the DOD—contracting officers were ordered to amend solicitations for federal contracts to remove PLA requirements.

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California’s First-in-Nation COVID-19 Regulation Finally Rides Off Into the Sunset (Mostly…) Nearly all the substantive provisions of Cal/OSHA’s non-emergency COVID-19 regulation expired on Monday, February 3, 2025. The event marked a significant end point to the regulatory journey that began on November 19, 2020, when California became the first jurisdiction to enact general workplace regulations specifically addressing COVID-19. California’s detailed COVID-19 requirements remained in effect much longer than those of any other jurisdiction, most of which already expired more than a year ago. Despite the expiration of nearly all the COVID-19 non-emergency regulations, employers should remain attentive to their ongoing workplace safety duties. More

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Legislation

AB 76 Alvarez (D) Current law prescribes requirements for the disposal of surplus land by a local agency. Current law defines terms for these purposes. Current law defines “exempt surplus land” to mean, among other things, land that is subject to a sectional planning area, as described, and meets specified requirements, including that at least 25% of the units are dedicated to lower income households, as specified, and that is developed at an average density of at least 10 units per acre, calculated with respect to the entire sectional planning area. This bill would change those requirements so that at least 25% of units that are not designated for students, faculty, or staff of an academic institution must be dedicated to lower income households, as specified, and that the land must be developed at an average density of at least 10 units per acre, calculated with respect to the entire sectional planning area and inclusive of housing designated for students, faculty, and staff of an academic institution. WECA Position: SIA (Support if Amended)

AB 231 Ta (R) Would, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, allow a credit against the Personal Income Tax Law and the Corporation Tax Law taxes to a qualified taxpayer in an amount equal to 40% of the qualified wages paid or incurred to a qualified employee employed during the taxable year. The bill would define a qualified employee for this purpose to mean 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. WECA Position: Support

AB 296 Davies (R) Current law provides for the establishment of apprenticeship programs in various trades, to be approved by the Chief of the Division of Apprenticeship Standards within the Department of Industrial Relations in any trade in the state or in a city or trade area whenever the apprentice training needs justify the establishment. Current law requires a school district or school to notify each apprenticeship program in the same county as the school district or school of a career or college fair it is planning to hold, as specified. Current law provides that the Legislature encourages school districts and schools to host apprenticeship fair events, as provided. This bill would delete the above-specified provision regarding the Legislature’s encouragement to school districts and schools and would, instead, require school districts and schools to host at least one apprenticeship fair event during each school year, as specified. WECA Position: Support

AB 303 Addis (D) Current law, until June 30, 2029, authorizes a person proposing an eligible facility, including an energy storage system capable of storing 200 megawatthours or more of energy, to submit an application for certification with the State Energy Resources Conservation and Development Commission of the site and related facility. Current law specifies that the issuance by the commission of the certificate is in lieu of any permit, certificate, or similar document required by any state, local, or regional agency, or federal agency to the extent permitted by federal law, except as provided. Existing law establishes the procedures by which the commission is to review the application. This bill would specify that energy storage systems do not include battery energy storage systems for the above-described purposes. WECA Position: Oppose

AB 305 Arambula (D) Current law prohibits the State Energy Resources Conservation and Development Commission from certifying a nuclear fission thermal powerplant, except for specified powerplants, and provides that a nuclear fission thermal powerplant, except those specified powerplants, is not a permitted land use in California unless certain conditions are met regarding the existence of technology for the construction and operation of nuclear fuel rod processing plants and of demonstrated technology or means for the disposal of high-level nuclear waste, as specified. This bill would exempt small modular reactors, as defined, from those provisions. WECA Position: Support

AB 345 Jackson (D) Current law provides for apprenticeship programs within the Division of Apprenticeship Standards within the Department of Industrial Relations, sponsored by specific entities and employers, and requires the Chief of the Division of Apprenticeship Standards to perform various functions with respect to apprenticeship programs and the welfare of apprentices, including the approval of new apprenticeship programs. Current law makes any person who willfully discriminates in any recruitment or apprenticeship program, as specified, guilty of a misdemeanor. This bill would require the Division of Apprenticeship Standards to confirm the completeness of an application for a new apprenticeship program within 30 days of receiving the application. The bill would provide that, where the chief has not made a final determination on a completed application for a new program within 6 months of receiving the application, the program shall have conditional approval to operate if it satisfies specified conditions, including approval by the United States Department of Labor. The bill would require the chief to make a final determination on an application for a new apprenticeship program within one year of receiving a completed application. The bill would provide its provisions do not apply to apprenticeship programs in the building and construction trades or to firefighter programs. WECA Position: SIA

ACR 28 Ortega (D) Would proclaim the week of March 2, 2025, to March 8, 2025, inclusive, as Women in Construction Week. WECA Position: Support

SB 61 Cortese (D) Current law generally governs retention payments withheld with respect to a contract for a private work of improvement, including by requiring an owner that withholds a retention from a direct contractor to, within 45 days after completion of the work of improvement, pay the retention to the contractor. This bill would limit the amount of a retention payment with respect to a contract for a private work of improvement by, among other things, prohibiting a retention payment withheld from a payment by an owner from the direct contractor, by the direct contractor from any subcontractor, and by a subcontractor from any subcontractor thereunder, for a private work of improvement, from exceeding 5% of the payment. WECA Position: Support

SB 75 Smallwood-Cuevas (D) Current law establishes the Pre-Release Construction Trades Certificate Program within the Department of Corrections and Rehabilitation to increase employment opportunities in the construction trades for incarcerated persons upon release. Current law requires the department to establish a joint advisory committee, composed of representatives from specified organizations and state agencies, for the purpose of implementation of the program and specifies the duties of the committee with respect to the program. This bill would state the intent of the Legislature to enact legislation relating to postrelease apprenticeship programs. WECA Position: Support

SB 84 Niello (R) Would prohibit a construction-related accessibility claim for statutory damages from being initiated in a legal proceeding against a defendant who employs 50 or fewer individuals, as specified, unless the defendant has been served with a letter specifying each alleged violation, and the alleged violations have not been corrected within 120 days of service of the letter. The bill would provide that a defendant is not liable for statutory damages, plaintiff’s attorney’s fees, or costs for an alleged violation that is corrected within 120 days of service of a letter alleging the violation. The bill would also prohibit a plaintiff from avoiding the notice and opportunity to correct provisions and the liability limitations by claiming they are seeking general discrimination damages based on a violation of the Americans with Disabilities Act of 1990 if the underlying claim is based on a defendant’s failure to comply with physical accessibility standards under California law. WECA Position: Support

SB 272 Becker (D) The Local Agency Public Construction Act sets forth procedures that a local agency is required to follow when procuring certain services or work. The act also sets forth specific public contracting requirements for certain transit districts, including the San Mateo County Transit District, for construction work contracts. The act authorizes certain local agencies, including school districts and community college districts, to engage in job order contracting, as prescribed. This bill would establish a pilot program to authorize the San Mateo County Transit District to use job order contracting as a procurement method. The bill would impose a $5,000,000 cap on awards under a single job order contract and a $1,000,000 cap on any single job order. The bill would limit the term of an initial contract to a maximum of 12 months, with extensions as prescribed. The bill would establish various procedures and requirements for the use of job order contracting under the pilot program. WECA Position: SIA

SB 291 Grayson (D) Current law generally requires, as a condition precedent to the issuance, reinstatement, reactivation, renewal, or continued maintenance of a contractor license, a licensed contractor or applicant for licensure to have on file at all times with the Contractors State License Board a current and valid Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance in the applicant’s or licensee’s business name, as specified. Current law generally makes a violation of these provisions a misdemeanor. Current law exempts from this requirement an applicant or licensee who has no employees, provided that they file a statement with the board before the issuance, reinstatement, reactivation, or continued maintenance of a license certifying that they do not employ any person, as specified, and who does not hold a specified license issued by the board, including a C-8 license, as defined. Existing law repeals these provisions on January 1, 2028. This bill would instead repeal the above-described provisions on January 1, 2027. WECA Position: Oppose

Judge Rules Against Biden PLA Mandate A U.S. Federal Claims judge has ruled in favor of a group of construction companies that filed protests against the implementation of former President Joe Biden’s December 2023 executive order that mandated project labor agreements on federal contracts over $35 million. In a briefing earlier this month, Judge Ryan Holte of the U.S. Court of Federal Claims said the implementation of the mandate on seven contract procedures last year ignored federal agencies’ own research indicating PLAs would be anti-competitive and relied on “arbitrary and capricious” presidential policy. The Jan. 21 ruling only impacts those specific bid protests filed in 2024, but construction employer groups touted it as a win for the entire industry. It opens the door for more challenges and puts the future of the rule in question, said Dirk Haire, Washington, D.C.-based partner at Philadelphia-headquartered law firm Fox Rothschild, which represented some of the plaintiffs. Story

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Changes to Retention Proposed Senator Dave Cortese is author of Senate Bill 61, which applies the limits on retention on public works to private work. Existing law mandates that an owner must pay retention withheld from a direct contractor for private work within 45 days after completion. SB 61 introduces a limit on retention payments for such contracts. It prohibits the retention held by an owner from the direct contractor, by the direct contractor from any subcontractor, and by a subcontractor from another subcontractor, from exceeding 5% of the payment for the private work. Let WECA know if this is a good idea.

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Apprenticeship for Teachers? Assembly Member Mike Gipson introduced Assembly Bill 291. Current law mandates the Commission on Teacher Credentialing to set standards for issuing and renewing teaching credentials, certificates, and permits. This bill expresses the Legislature's intention to develop future legislation focused on establishing requirements for apprenticeships for credentialed educators. Gipson may not be aware that college graduates can quickly become credentialed teachers through a network of private and public training programs.

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Let’s Go to the Fair! Assembly Member Laurie Davies wants to change existing law that requires school districts to inform local apprenticeship programs about their career or college fairs and encourages them to host apprenticeship events. Assembly Bill 296 changes the encouragement into a requirement for schools to host at least one apprenticeship fair annually, creating a state-mandated local program. Additionally, if a school district requires community service for high school graduation, the bill mandates that students receive credit for attending fairs.

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No More Battery Fires Assembly Member Dawn Addis thinks burning lithium batteries are a bad idea. Less than two weeks after the huge fire at one of the world’s largest battery storage plants in Moss Landing, scientists affiliated with San Jose State University have discovered unusually high levels of toxic metals in soils at Elkhorn Slough, roughly a mile away. Her answer? No more battery energy storage systems! Her Assembly Bill 303 requires the State Energy Resources Conservation and Development Commission to reject pending battery-related applications. Furthermore, it prohibits development projects with such systems within 3,200 feet of sensitive receptors or on environmentally sensitive sites. This applies statewide, even to charter cities, and is an urgency statute, which would take immediate effect.

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Nuc, Baby, Nuc! California may ban battery energy storage systems, but Assembly Member Juan Arambula wants more nuclear reactors in California. Sure to be a popular bill among the never-nucs. Current law in California restricts the certification and land use of nuclear fission thermal power plants, except for certain specified facilities, unless specific technological conditions for nuclear fuel processing and waste disposal are met. Assembly Bill 305 proposes to exempt small modular reactors from these restrictions. In addition, the Public Utilities Commission (PUC) regulates electrical and gas corporations, and the state's existing policy aims for 100% of electricity retail sales and procurement for state agencies to come from renewable and zero-carbon sources by 2045. The bill also mandates that by January 1, 2028, the PUC must develop a plan to increase electricity generation from nuclear facilities while phasing out reliance on natural gas power. Why, you ask? Artificial intelligence is an energy hog, and every query to ChatGPT is like running a lightbulb for 20 minutes, a research scientist recently told NPR. More

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Workforce Development Assembly Member José Luis Solache wants more jobs in the fire zones. The California Workforce Innovation and Opportunity Act establishes the California Workforce Development Board to assist the Governor in improving and aligning California's workforce and education systems with modern economic needs. His Assembly Bill 338 proposes to allocate $50 million from the General Fund to this board, specifically for the South Bay Workforce Investment Board and the Economic Development Collaborative. The funds aim to train and retrain individuals who are underemployed or unemployed, focusing on rebuilding areas in Los Angeles and Ventura Counties affected by the 2025 wildfires. This initiative targets employment in fields like construction, firefighting, healthcare, and other emergency response sectors. Participants are promised expedited licensing and certification. The bill emphasizes the need for immediate implementation due to the urgency of recovery efforts in these counties.

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In related legislation to Speed Apprenticeship Program Approvals, Assembly Member Corey Jackson is the author of Assembly Bill 345, which mandates the Division of Apprenticeship Standards within the Department of Industrial Relations to verify the completeness of new apprenticeship program applications within 30 days of receipt! If the Chief doesn't make a final decision on a completed application within six months, the program can operate conditionally if it meets specific criteria, including U.S. Department of Labor approval. The Chief must make a final decision within a year. Oh, and this bill excludes building, construction, and firefighter programs. Damn!

Next time, we will cover some new Senate bills.

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Last time we mentioned that Senator Josh Hawley (R-MO) was circulating a framework for potential labor law reform legislation, which includes the laundry list of labor asks. WECA is a member of the Coalition for a Democratic Workplace (CDW), which is pushing back.

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NLRB General Counsel Abruzzo and NLRB Member Wilcox Fired On January 27, 2025, Jennifer Abruzzo was terminated from her role as National Labor Relations Board (NLRB) General Counsel. While her term was not scheduled to end until July 2025, former President Biden set a precedent for terminating NLRB General Counsels of the opposing party in 2021 when he terminated then-General Counsel Peter Robb within hours of his inauguration. It is likely that most, if not all, of Abruzzo’s memos will be withdrawn in the coming months. Deputy General Counsel Jessica Rutter is now Acting General Counsel until a replacement is announced. In addition to terminating Jennifer Abruzzo, Trump also fired Democrat NLRB Member Gwynne Wilcox, despite a law that forbids the firing of NLRB members without evidence of neglect or malfeasance. This leaves three seats open on the NLRB and a lack of a quorum, leaving the Board unable to issue new decisions or regulations. President Trump is expected to fill at least two of the seats with Republican nominees.

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Senator Paul Signals Opposition to Chavez-DeRemer Senator Rand Paul (R-KY) told an NBC political reporter that he plans to vote against the confirmation of Department of Labor Secretary Nominee Lori Chavez-DeRemer, citing her support of the PRO Act. According to the reporter’s post, Paul expects that DeRemer could lose the votes of around 15 more Republicans, but gain the support of some Democrats. DeRemer’s confirmation hearing is expected to take place in the next couple of weeks.

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94% of Incumbent State Legislators Won Re-Election State legislative sessions are in nearly full force - but Ballotpedia took a break to look back at the final figures for how incumbents performed in the 2024 election cycle. In total, 303 incumbents lost, representing about 6.2% of the 4,853 who ran. In other words, 94% of incumbents won re-election. This was the fewest incumbent defeats in any even year since 2012. 408 incumbents lost in 2022, and 382 lost in 2020. Between 2010 and 2022, the average number of overall incumbent defeats was about 445.

·        169 (or about 3.5%) of incumbents who ran in primaries were defeated

·        134 (2.9%) of those who ran in general elections were defeated

2024 was the third presidential election year since Ballotpedia started collecting this data. Over that time, the number of incumbent defeats in presidential election years has fallen.