News Blog

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  • Thu, September 19, 2019 4:09 PM | Anonymous member (Administrator)

    Governor Newsom signs sweeping independent contractor reclassification bill into law

    IRWINDALE - On Wednesday, Governor Gavin Newsom signed AB 5 into law, a major piece of legislation that has massive implications for state employment law. The bill codifies a California Supreme Court decision in the Dynamex case, which threw out established state law that allowed workers to operate as independent contractors which did not provide the same rights and benefits as full employees but gave them greater scheduling flexibility and less operational oversight by employers.

    AB 5 had several significant carve outs and exemptions for certain professions, such as physicians, lawyers, and accountants, but much of the news has focused on "gig" workers at Uber and Lyft and the reaction of those companies to this aggressive new regulation by the state of their unique business model. It is estimated that reclassifying all their previously independent contractors as full employees will cost Uber and Lyft $3,625 per driver per year for a combined bill of over $800 million. Uber and Lyft have threatened to place a ballot measure before voters next year to reverse AB 5.

    Labor advocates have argued that independent contracting is a legal loophole that allows companies to shortchange workers on the benefits and protections full employees receive at the price of flexibility. What is less discussed in the press is that independent contracting is a long-established form of employment that many, many companies (and many government agencies) rely on to address important needs at an affordable price. In light of this new regulatory bill, companies will face extremely difficult choices of what to do with their previously independent contractors. Certainly some companies will choose to hire some contractors as permanent new employees but given the high price to do so, it is more likely that more will simply discharge the contractors they've relied on. The overall result is that California companies will be shorthanded and hamstrung without access to affordable labor in their own state, putting them at a severe disadvantage compared to their competitors in the rest of the country while California's formerly independent contractors will find themselves without the flexibility and easy-access gig work they once relied on. Lyft has already notified its drivers that they may soon have to work in specific shifts, in specific areas, and only work for a single ride-share platform.

    Lawmakers are fond of citing the fact that California is the 5th largest economy in the world, frequently in an attempt to say that the state is doing pretty darn well and therefore it can afford to pay a little extra for more regulation in the labor force. What's often overlooked is that the state - with its immense advantages in agriculture, technology, entertainment, and many other industries - should really be the 2nd largest economy in the world, with a vastly larger economy that delivers more wealth and goods for California's millions of residents. Instead, the state struggles with a crippling housing crisis and vast disparities in poverty and opportunity. Perhaps AB 5 results in some contractors being hired full time and enjoying stronger benefits and protections but more likely is less job opportunities all around, less flexibility, less innovation, and a less dynamic economy in a state that prides itself on being forward thinking.


  • Fri, September 13, 2019 10:39 AM | Anonymous member (Administrator)

    State Legislature, LA County Enact Rent Control while Independent Contractor Reclassification Bill Passes

    IRWINDALE - It's been a huge week in California politics. The California State Legislature, which will wrap up the 2019 session today, passed a statewide rent control bill that will limit rent increases to 5 percent annually plus inflation while prohibiting the eviction of tenants except for just cause. The measure, AB 1482, will remain in force for ten years. Similarly, the Los Angeles County Board of Supervisors unanimously approved a cap on rent increases in the unincorporated areas of the County, making what was a temporary measure permanent.  While most rent control is enforced by local city rent control boards, it is likely the statewide rent cap increase would be enforced by the courts.

    Lawmakers in Sacramento also passed AB 5, a landmark bill that enacts the controversial Dynamex decision into state law, thereby reclassifying independent contractors as employees. AB 5 initially earned the support of business groups across the state in the hopes that a workable compromise could be found to preserve the flexibility and benefits of working as an independent contractor while legally reconciling state law with the Dynamex decision. However, a grand compromise did not pan out, with individual industries lobbying for special exemptions and carve outs for their workers. Maintaining independent contractor status is important for the broader economy, to allow for career flexibility for employees while employers benefit from a more affordable and flexible workforce. While there was talk of creating a hybrid employee classification somewhere between a fully independent contractor and a full employee, this proposal was never finalized. Particularly upset with the passage of the legislation was prominent gig companies like Uber and Lyft, who have threatened to support a ballot measure to allow voters next year to over turn AB 5.   

    Here's how our San Gabriel Valley state lawmakers voted on AB 1482:

    Yes on AB 1482: Asms. Calderon, Chau, C. Garcia, Friedman, Holden, Rodriguez; Senators Leyva, Portantino, S. Rubio

    Not Voting on AB 1482: Senator Archuleta

    No on AB 1482: Asms. Chen, B. Rubio; Senator Chang

    Here's how our San Gabriel Valley state lawmakers voted on AB 5

    Yes on AB 5: Asms. Calderon, Chau, C. Garcia, Friedman, Holden, Rodriguez, B. Rubio; Senators Archuleta, Leyva, Portantino, S. Rubio

    No on AB 5: Asm. Chen, Senator Chang

    For more information, contact Brad Jensen at the Partnership.


  • Thu, September 05, 2019 2:58 PM | Anonymous member (Administrator)

    Job Killer bills moving forward in Sacramento as State Legislature nears the end of 2019 session

    IRWINDALE - With less than two weeks left in the 2019 session, lawmakers in Sacramento will soon be voting on major pieces of legislation that will harm the state's economy and impede job creation in California.

    Chief among these harmful bills is SB 1 (Atkins), a bill that creates major regulatory uncertainty by authorizing state agencies to adopt federal rules and regulations without having to follow the Administrative Procedures Act safeguards which requires all new rules to be subject to public comment and review. Moreover, this bill will create more hurdles for the conveyance of water to Southern California by derailing ongoing Voluntary Agreement negotiations. SB 1 is currently on the Assembly floor and could be brought up quickly for a vote.

    Another key bill to oppose is AB 1066 (Gonzalez), which would allow striking employees to claim unemployment benefits after four weeks on strike. This bill is particularly odious as businesses pay into the unemployment insurance fund to assist those who have lost their jobs through no fault of their own. Striking workers have not been fired or laid off - they have employment which they are choosing not to fulfill. By allowing striking workers to draw unemployment insurance, California runs the risk of depleting that fund and not having assistance available during a major economic downturn.

    Finally, AB 51 (Gonzalez) would ban arbitration agreements made as a condition of employment, thereby increasing costs for employers and employees and increasing the chance of litigation. Such a law, if it were to pass, would likely be preempted by the Federal Arbitration Act and would only delay the resolution of disputed employment claims. Governor Brown vetoed a similar bill last year, noting that it "plainly violates federal law." 

    For a detailed list of more key bills to watch at the close of session, visit the CalChamber's Action Alerts Web page for ways to contact and engage with your lawmakers.


  • Fri, August 09, 2019 11:51 AM | Anonymous member (Administrator)

    Gold Line backed with additional funding from San Gabriel Valley Council of Governments, will complete the line out to Pomona

    IRWINDALE - The Foothill Gold Line will be built to Pomona having obtained crucial additional funding from the San Gabriel Valley Council of Governments in a unanimous vote on Thursday night. The Partnership wrote a letter and spoke in support of additional funding for the Gold Line to ensure that the line would be built to Pomona.

    "The Foothill Gold Line is the single most important economic project underway in the San Gabriel Valley," said Partnership President and CEO Bill Manis. "Yes, it's a mass transit system but the Gold Line brings with it development incentives to build thousands of new homes, add thousands of new jobs, and brings billions in investment to the region. Its completion is absolutely vital."

    A total of 27 San Gabriel Valley cities backed the project, agreeing to assign special reserve funds to the Gold Line project, whose cost estimates had increased due to the high demand for steel and labor in the broader economy. It is hoped that the Gold Line will be completed from its current terminus in Azusa through Glendora, San Dimas, La Verne and to Pomona by 2025.

    The Partnership is pleased to see the strong support for the Gold Line in the region and wishes to thank our cities and their representatives to the COG Board for the vote in favor of funding the project.


  • Fri, August 09, 2019 9:36 AM | Anonymous member (Administrator)

    State rent caps, data privacy, major labor bills in limbo as State Legislature reconvenes

    SACRAMENTO - State lawmakers will return to the State Capitol on Monday to begin the final session of the year with major legislation pending on a host of topics including data privacy regulations, a statewide cap on rent increases, and significant changes to state labor law.

    "This has been a very significant year in Sacramento as lawmakers try to gauge what Governor Newsom will sign and support," said Partnership President and CEO Bill Manis. "After eight years of Governor Brown - who was willing to veto bills he felt were too costly, poorly thought out, or just plain silly - lawmakers have rolled out many bills that push the envelope to see what Governor Newsom will do when presented with similar bills."

    Data privacy has been a major issue all year long as last year's deeply flawed bill, the California Consumer Privacy Act (CCPA) is scheduled to go into effect January 1st, 2020. Several common-sense fixes to the CCPA have moved forward in the State Legislature but have yet to cross the finish line. AB 25 (Chau), which clarifies the definition of a consumer in the CCPA is still moving forward as is AB 846 (Burke), which will allow companies to continue customer loyalty programs like frequent flier miles. AB 874 (Irwin) clarifies language in the CCPA on what is personal information under the law, AB 1146 (Berman) clears up language on vehicle recalls and warranty repairs, and AB 1564 (Berman) establishes alternate ways customers can contact companies for customer complaints. Each of these bills will be heard in Senate Appropriations, a committee chair by Senator Anthony Portantino, who represents Glendale, Pasadena, and the foothill cities in the State Senate.

    Tenant protections has been championed by Governor Newsom this year and a recently amended bill, AB 1482 (Chiu), will follow newly enacted rent cap legislation in Oregon to cap rent increases across California at 7% per year plus an allowance for inflation (usually 2.5%). This measure, if passed and signed into law, would be in force for the next three years. This bill is also in Senate Appropriations.

    Finally, two labor bills will upend established state law regarding employer-employee relations. AB 51 (Gonzalez) prohibits arbitration of labor and employment claims as a condition of employment. This aggressive bill is likely preempted by federal labor law, which clearly allows employers to require agreement to arbitration to settle employee-employer disputes as a condition of employment. AB 51, if passed, will also expose employers to criminal liability and adds another private right of action under the Fair Employment and Housing Act, inviting more litigation at marginal benefit to employees in the state. AB 1066 (Gonzalez) would allow employees who are out on strike during a labor dispute to apply for unemployment insurance after four weeks. Unemployment insurance is intended to assist employees, who, through no fault of their own, are forced to leave their employment. Employers pay for unemployment insurance to assist these employees. Striking workers are still employed and have voluntarily chosen not to work as a negotiating tactic. It is fundamentally unjust for these workers to draw unemployment insurance while they still have employment, thereby depleting these insurance funds for those who truly need assistance. Both of these bills are in Senate Appropriations.

    The Partnership will visit Sacramento next week to meet with our lawmakers and will advocate for legislation that will improve the business environment of the state while encouraging the defeat of legislation that harms the economy.

    For more information, contact Brad Jensen, Director of Public Policy, at the Partnership or by email


  • Thu, August 01, 2019 2:38 PM | Anonymous member (Administrator)

    Governor Newsom signs Partnership-opposed bill adding more environmental reviews to the Cadiz Water Project

    IRWINDALE - Today, Governor Gavin Newsom signed SB 307 (Roth), a bill opposed by the Partnership, that sets a terrible precedent of allowing the State Legislature to arbitrarily select infrastructure projects to undergo additional environmental review. This will require the Cadiz Water Project, which has already passed the required environmental review process under the California Environmental Quality Act (CEQA) and defended those clearances 12 times in court, to undergo yet another environmental review.

    "The signing of SB 307 is an absolute disaster for the State of California," said Partnership President and CEO Bill Manis. "It will embolden the State Legislature to slap additional environmental reviews on any controversial infrastructure project in the hope of killing them. It is completely unjust and upends the reasonable expectation that there is one set of rules, that if followed, will allow projects to be built and completed."

    The Cadiz Water Project is located in the high desert of San Bernardino County. It is estimated the project can produce tens of thousands of acre feet of water each year to be delivered to the urban areas of Southern California. While it has already passed environmental review, and defended those results in court multiple times, it will proceed with the new required review process, assured that it will be cleared again to proceed.

    In a statement regarding the signing of SB 307, Cadiz, Inc. said:

    “We look forward to working closely with the Governor's office, the State Lands Commission and other State Agencies as we complete this fair, public and transparent procedural step and we are confident that we will continue to demonstrate that the Project is environmentally sound and a worthy part of the solution to California’s persistent water supply challenges. 

    “California is home to over a million people who lack access to safe, clean, reliable drinking water. Over the long-term we face a statewide supply-demand imbalance that requires a successful water resiliency strategy, especially if we seek to achieve the State's objectives of providing water and housing for all.   We believe a fact-based evaluation of the Project conducted under the Governor’s watchful eye will undoubtedly conclude we can sustainably contribute to this effort.”


  • Fri, July 26, 2019 9:43 AM | Anonymous member (Administrator)

    Partnership joins SGV restaurant owners, chefs and local officials from the Chinese community to fight proposed ban on natural gas

    ARCADIA - The San Gabriel Valley Economic Partnership joined Californians for Balanced Energy Solutions at a Chinese-language press conference held in Arcadia this week along with local elected officials, restaurant owners, and chefs from the SGV Chinese community to publicly oppose the proposed ban on natural gas in California homes and businesses. This ban is being seriously considered by the Public Utilities Commission.

    "What we heard here today is remarkable," said Jon Switalski, Executive Director of Californians for Balanced Energy Solutions, a grassroots organization of natural gas users. "Small business owners, community leaders and concerned citizens have stood here today to say, "Enough!" The State of California is going in the wrong direction in banning the use of natural gas."

    Speakers at the press conference, held at the notable Chinese restaurant Meizhou Dongpo at the Santa Anita Mall, emphasized the devastating economic and cultural effects banning natural gas would have on the Chinese communities of the San Gabriel Valley. The region is especially famous for its Chinese cuisine and numerous restaurants, large and small, which are a major economic driver for cities like San Gabriel, Temple City, Rosemead, Monterey Park, Alhambra and Arcadia. In the recently released California Michelin Guide, 62 SoCal restaurants were recognized with honorable mentions - 15 were in the San Gabriel Valley while only 5 were in Orange County. A prestigious Michelin Star was awarded to Bistro Na's in Temple City, which features traditional upscale Chinese cuisine. The elimination of natural gas for cooking purposes would pose an existential threat to the operation of these important Chinese restaurants.

    Chef  Tian Yong of the Michelin Star restaurant Bistro Na's discusses the importance of natural gas to Chinese cuisine.

    "These proposed regulations will significantly hurt businesses that cannot operate without natural gas," said Brad Jensen, Director of Public Policy for the Partnership. "The San Gabriel Valley's local economy would be devastated by this new rule, as would residents and businesses across the state."

    The Partnership's Director of Public Policy answers questions about the proposed regulations.

    More than 90 percent of homes in Central and Southern California use natural gas for home space and water heating or cooking. Poll data show consumers favor natural gas for those uses because it is more affordable than electricity. State policymakers at the California Energy Commission and Public Utilities Commission are considering the adoption of new regulations that would eliminate natural gas use in new and existing homes and replace it with more expensive forms of energy.

    Key speakers at the event included City Councilmembers Chin Ho Liao, from San Gabriel, and Sam Kang, from Duarte. Lili Kang, Sam Kang's mother, spoke at the event as she has hosted a Chinese cooking program on the radio for many years. Leo Wang of the Chinese Caterers Association spoke about the challenges facing the broader restaurant industry. Charles Lu, Head Chef at the Shanghailander Palace restaurant in Hacienda Heights, detailed how difficult it is to run a successful restaurant, how thin profit margins are and how hard you have to work to keep your business going. Annie Wei, Director of Business Development at the Partnership played a key role as organizer and translator at the event.

    Councilmember Chin Ho Liao of the City of San Gabriel addresses the press.


  • Fri, July 19, 2019 10:27 AM | Anonymous member (Administrator)

    Partnership applauds House repeal of "Cadillac Tax" on healthcare plans

    IRWINDALE - On Wednesday, the House of Representatives voted overwhelmingly 419-6 to repeal the "Cadillac Tax" provision of the Affordable Care Act which placed a tax on high-cost healthcare plans. This tax was designed to keep costs down by discouraging overly generous healthcare plans but a coalition of both labor unions and major employers opposed the tax - one of the few areas both parties found common ground on in healthcare policy.

    Every San Gabriel Valley representative in the House voted for repeal.

    "We are delighted to see our local lawmakers in Washington respond to the concerns of our businesses and residents and vote for repeal of the Cadillac Tax," said Partnership President & CEO Bill Manis. "Our thanks to Reps. Grace Napolitano, Norma Torres, Judy Chu, Adam Schiff, Linda Sanchez and Gil Cisneros for rescinding this tax."

    The "Cadillac Tax" has actually never been enforced, having been long postponed as part of the implementation of the Affordable Care Act. The repeal legislation will now move to the Senate. The Partnership strongly encourages the Senate leadership to take up the repeal legislation in a timely manner.


  • Thu, July 11, 2019 3:22 PM | Anonymous member (Administrator)

    Partnership supports SR-71 freeway federal grant application

    IRWINDALE - The SR-71 freeway that runs through Pomona down to Corona remains incomplete, but the Partnership was pleased to support a new federal grant application this week, to be submitted by CalTrans and LA County Metro, that may obtain $25 million in additional funding to finish the project. 

    "Finishing the 71 freeway is a top transportation priority for the Partnership," said President & CEO Bill Manis. "The 71 is a key freight corridor connecting the 10 freeway to Riverside County. It's high time that we expand and finish that freeway through Pomona."

    CalTrans and Metro will soon submit an application to the Department of Transportation's Better Utilizing Investments to Leverage Development (BUILD) Grant Program. A BUILD grant award would complete the funding for the entire SR-71 project and expedite its construction to close the last remaining freeway gap in Los Angeles County.

    Nearly 85 percent of the total construction costs to complete the SR-71 freeway come from local sources.

    For additional information, contact Brad Jensen, Director of Public Policy at (626) 856-3400 or


  • Thu, June 13, 2019 2:40 PM | Anonymous member (Administrator)

    Partnership opposes tariffs on Mexico, backs more funding for Customs and Border Protection

    Irwindale – This past week, the San Gabriel Valley Economic Partnership has weighed in on two significant federal issues that would have a major impact on our local economy. The Partnership joined the U.S. Chamber of Commerce and 140 other business groups from around the country to oppose the Trump Administration’s proposal to impose a five percent tariff on all goods imported from Mexico.

    The proposed tariffs put at risk an upcoming vote in Congress to pass the United States-Mexico-Canada Agreement (USMCA), a new trade pact that works to eliminate barriers to international commerce, promote conditions of fair competition, and to further trilateral and regional cooperation between the major nations of North America.

    “Tariffs on Mexican imports would not only harm the American economy as a whole, but greatly harm our own economy here in the San Gabriel Valley,” said Bill Manis, Partnership President and CEO. “The tariffs would have increased the cost of goods our residents buy – from avocados to automobiles – as well as hurt our local businesses that trade extensively with Mexico.”

    The Partnership also joined the U.S. Chamber to support additional funding for Customs and Border Protection (CBP) operations for the remainder of this fiscal year. This funding would support more CBP staffing, overtime, and travel costs for the ongoing redeployment of officers to address the influx of immigrants along the Mexican border. The lack of available officers at key ports of entry has dramatically increased wait times and slowed the flow of goods and people. In April of this year, it took seven hours for a freight truck to cross the Bridge of the Americas in El Paso, Texas; a year ago it took less than an hour to clear inspection and enter the U.S. Additional funding will provide Customs and Border Protection with greater flexibility on staffing and will hopefully provide better service for the flow of goods between the two countries.

    For more information about these two positions, contact Brad Jensen, Director of Public Policy at (626) 856-3400 or


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San Gabriel Valley Economic Partnership

4900 Rivergrade Road, Suite B130, Irwindale, CA 91706

Phone: (626) 856-3400    Fax: (626) 856-5115


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