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Major Legislative Wins: Incentives Repeal, Gender Discrimination Bills Stopped, Key Housing Bill Passes Out of Committee

IRWINDALE - This week, the Partnership scored major legislative victories as two bad bills were stopped and a key housing bill passed committee. The deadline for bills to clear policy committees and move to Appropriations in their respective chambers is fast approaching. Stopping bad legislation and making sure good legislation passes is a top Partnership priority in May.

SB 320 would have increased the chances for businesses to be subjected to costly litigation. The bill would have allowed customers to assert that any price difference on “substantially similar” goods, even by a nominal amount, could be based on gender discrimination and therefore the customer is entitled to a private right of action as well as attorney's fees. In an effort to comply, businesses would have been forced to assign a gender to different products and thereby engage in gender stereotyping. SB 320 was stopped in the Senate Judiciary Committee on a 3-3-3 vote. 

Another bad bill, SB 468 was substantially amended in Senate Governance and Finance Committee. As it was originally written, SB 468 would have repealed any "tax expenditure" that had reduced state revenues by more than $1 billion annually for each of the prior ten years. Under these provisions, six key state business incentives would have been repealed by 2023 including the retails sales and use tax law, food products, prescription drugs, and electricity, gas, and water utility services would become subject to state and local sales tax. Under the bank and corporation tax law, water's edge election treatment, exclusion of like-kind exchanges and the research and development tax credit would all be eliminated. The fiscal affect of these actions, as of 2020-21, according to the Department of Finance, would be a tax increase of more than $20 billion. Businesses throughout the state rely on the research and development incentives to offset the high cost of creating and researching new products. SB 468 was amended to create a state commission to review the fiscal effects of these state incentives.

Finally, a key housing bill, SB 659 passed the Senate Judiciary Committee on a 5-4 vote. SB 659 encourages more housing development in California by minimizing frivolous litigation that blocks infill housing projects by awarding reasonable attorney's fees to the winning party.

For more information on each of these bills, please contact the Partnership's Director of Public Policy, Brad Jensen at bjensen@sgvpartnership.org or (626) 856-3400.

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Partnership Opposes Unfair Regulation of Heavy-Duty Trucks, Expansion of Hospital Workers' Comp

Irwindale, CA - This week, the San Gabriel Valley Economic Partnership opposed two key state bills - one unfairly regulating medium- and heavy-duty trucks, the other expanding workers' comp presumptions of injury at hospital - while also supporting several key housing bills as well as two bills dealing with major local issues in the San Gabriel Valley. 

On Wednesday, the Partnership's Legislative Action Committee voted to oppose SB 44 (Skinner) which requires the state Air Resources Board to decrease greenhouse gas emissions from motor vehicles by 40% by 2030 and 80% by 2050 - however, the strategy would require those reductions to come solely from medium- and heavy-duty trucks which comprise only a small share of the total motor vehicles used in the state. The Committee also voted to oppose SB 567 (Caballero), which would create a presumption that hospitals are responsible for blood-borne infectious diseases, that would be regarded as an injury, and that hospital workers could file claims up to 10 years after they leave employment.

"These two bills hit the heart of our local economy here in the San Gabriel Valley," said Partnership President & CEO Bill Manis. "All of us depend on trucks to deliver our food to grocery stores, to stock all our stores, and get our goods to markets around the globe. Singling trucks out for emission reductions is a foolish, ineffective strategy that takes no account of how many jobs would be affected. Likewise, formally creating a presumption that hospitals are liable for workers' comp claims a full decade after someone leaves employment would raise health care prices precisely when the industry is trying to find ways to make health care cheaper."

The Partnership's Legislative Action Committee also voted to support several key housing bills. The Partnership has backed SB 751 (Rubio), which would create a San Gabriel Valley Regional Housing Trust, a joint powers authority that would strive to bring new funding for homelessness housing and services to the region. It also supports SB 450 (Umberg), which creates a CEQA exemption for motel conversion projects for homeless transitional and supportive housing as well as SB 744 (Caballero), which expedites judicial review of CEQA for Prop 1 & Prop 2 funded supportive housing projects.

Finally, the Partnership supports SB 7 (Portantino), a bill that currently removes the 710 "stubs" in Pasadena and Alhambra from the state freeway system. Senator Portantino hopes to amend the bill later this year to allow the transfer of the "stub" properties back to their respective cities. This is a key priority for the Partnership, to allow the cities to use the stubs or to redevelop the property as they see fit.

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Partnership opposes AB 403, a whistle blower retaliation bill that incentivizes frivolous litigation

IRWINDALE - The San Gabriel Valley Economic Partnership opposed AB 403 (Kalra) this week, a bill that incentivizes frivolous litigation by undermining the Division of Labor Standards Enforcement whistle blower retaliation complaint process by requiring a one-sided attorney's fee provision.

"The current process for investigating whistle blower retaliation complaints would be completely undermined by the passage of AB 403," said Partnership President & CEO Bill Manis. "Adding the ability to collect attorney's fees for only one-side of the complaint process provides incentives for more litigation to be filed against employers. At the least, attorney's fees should be add for both sides in the complaint review process."

The complaint process in the Division of Labor Standards Enforcement is typically a less contentious and litigious approach to resolving incidences of potential whistle blower retaliation. AB 403 undermines that process by allowing the collection of attorney's fees, thereby adding an incentive to the process. At the very least, attorney's fees should be able to be collected by both sides in a complaint process to provide a level playing field for everyone potentially involved.

Partnership opposes state ban on selling combustion-propelled vehicles, supports new clean energy clearinghouse

IRWINDALE - This week, the San Gabriel Valley Economic Partnership opposed legislation that would result in foolishly banning the sale combustion-propelled vehicles by 2040. The Partnership also supported a key bill that would create a new state clean energy clearinghouse agency that would coordinate public and private investment and provide strategic leadership in that developing area.

AB 40 (Ting) is a bill that requires the state Air Resources Board to develop a comprehensive strategy by January 1, 2021 to ensure all cars sold in the state are free of greenhouse gas emissions by 2040. 

"The language of this bill is particularly troubling, as it is not entirely clear what it means to ensure that all cars are free of greenhouse gas emissions," said Partnership President and CEO Bill Manis. "Rather than simply setting a goal, this bill appears to be prescriptive in that it would empower the Air Resources Board to eliminate the sale of combustion-propelled vehicles entirely within the state."

AB 40 has additional clarification issues, given that all vehicles - whether propelled by combustion engines or by electric motors - produce greenhouse gas emissions in their assembly. Much of our electricity today is still based on burning natural gas, which goes to charge electric vehicles. Moreover, if AB 40 were to pass, it does not preclude the purchase of combustion-propelled vehicles from out of state, leading to a worrisome policy which could drive Californians to buy their motor vehicles in neighboring states.

The Partnership this week supported AB 383 (Mayes), a bill that would create a centralized Clean Energy Financing Office within the Office of the Treasurer to provide strategic leadership for coordinated public and private investment. As California strives to meet its ambitious goal of 100 percent carbon-free electricity by the year 2045, it will need to invest billions of dollars in clean energy and energy efficiency measures to meet the state's long-term greenhouse gas emissions targets. California has dozens of programs designed to support clean energy financing solutions across several agencies and offices, ranging from rebates for solar homes to tax credits for bus retrofits. While these programs may be successful on their own, the sheer number of programs and the variety of managing entities makes coordination difficult. By creating a centralized point of contact for interested parties, the state will be able to maximize its clean energy financing investments. 

Partnership backs two local SGV water bills in Sacramento

IRWINDALE - This week, the San Gabriel Valley Economic Partnership supported two key water bills that address major water-related concerns here in the San Gabriel Valley. Water is a vital issue for all of southern California and the San Gabriel Valley has long been an innovative industry leader on water policy in the state.

The first bill is AB 1093 carried by Asm. Blanca Rubio (D-Baldwin Park), which will help city and county governments who are struggling to comply with rigorous and expensive state and federal stormwater regulations. AB 1093 requires the State Water Resources Control Board to develop Financial Capability Assessment guidelines for local governments striving to comply with the federal Clean Water Act. The bill also requires the Los Angeles Regional Water Board to adjust the guidelines in light of the financial capability assessments.

"AB 1093 is an extremely important bill that will help local cities that are struggling to obey very expensive stormwater regulations," said Bill Manis, Partnership President and CEO. "The State of California's water regulatory agencies need to provide some financial flexibility to cities to meet these regulations. You can't expect to capture more rainwater if a town goes bankrupt."

The Partnership also supported SB 413 by Senator Susan Rubio (D-Baldwin Park) and sponsored by the San Gabriel Basin Water Quality Authority, a Partnership member. With many cities moving their elections from odd-years to even years in order to coincide with midterm and presidential elections, the result is that seats on local water agencies may have to be filled by special elections because they now conflict with elections to the Water Quality Authority. SB 413 addresses this significant problem by moving the Water Quality Authority elections to odd-numbered years.

Partnership supports federal Sites Reservoir bill, opposes business free speech restrictions of HR 1

IRWINDALE, CA - This week, the Partnership joined a nationwide coalition of 317 business groups that opposed H.R. 1, which has the misleading title of the "For the People Act of 2019." Although its supporters focus on aspects of the bill that purport to bring more people into the political process, other parts of the legislation are clearly designed to have precisely the opposite effect – pushing certain voices, representing large segments of the electorate and our economy, out of the political process altogether.

"HR 1 is being touted as a measure to chase dark money out of politics but in fact it is a blatant unconstitutional attempt to regulate our free speech," said Partnership President & CEO Bill Manis. "It unfairly targets business groups and would sharply restrict their political voice and activities."

The bill would create an uneven playing field for business associations due to stringent reporting requirements. Organizations that have members that join for less than $10,000 will be exempted from the legislation’s proposed reporting requirements. This exclusion is designed to carve out labor organizations from disclosure requirements, leaving associations that represent the business community squarely in the cross-hairs.

Many business groups believe the bill would dissuade a host of associations from trying to advocate on issues, essentially taking the business community and trade associations out of the political advocacy process. There is specific language in the bill that calls for using the so-called PASO standard when determining political activity. That could cover any communications from lobbying groups that “promote,” “attack,” “support” or “oppose” a candidate or elected official.

Click here to read the full letter sent by the coalition opposing HR 1.

The Partnership also supported H.R. 1453, the Sites Reservoir Project Act this week, a bill by Rep. John Garamendi (D-Davis). The bill would provide federal support for the construction of Sites Reservoir and related water infrastructure in Colusa and Glenn Counties. The construction of the Sites Reservoir would provide critically needed water supply reliability for the environment, farms and cities. The importance of expanding the capacity of water storage for the future of California cannot be estimated.

Partnership joins USMCA Coalition, backing new North American trade deal

IRWINDALE, CA - The San Gabriel Valley Economic Partnership has joined the USMCA Coalition, a group of over 250 companies and business groups across the country who strongly support the newly negotiated North American trade deal.

"Trade is vital to the livelihoods of millions of Americans and millions more beyond our borders," said Partnership President & CEO Bill Manis. "39 American states list Mexico or Canada as their top foreign trading partner. This new trade deal is vital for the long-term economic strength of the continent."

The new trade deal known as USMCA is particularly important for small and mid-size companies who's first foray into foreign markets is usually with Canada or Mexico. The USMCA maintains tariff-free access to Mexico for American exporters. For Canada, it maintains the current tariff-free access for 99% of U.S. products and eliminates some remaining barriers facing U.S. dairy and poultry exports. The agreement preserves and strengthens America’s strong trade ties to Canada and Mexico. Importantly, it includes groundbreaking provisions on digital trade, intellectual property, and other issues that will bring North American trade into the 21st century.

For more information about North American trade, click here for a fact sheet.

Senator Steven Glazer (D-Orinda) joins other key lawmakers who support his bill expanding the renter's tax credit (AP).

Partnership backs expanded renters credit, water conservation exemption; Opposes oil severance tax

Irwindale, CA - This week, the San Gabriel Valley Economic Partnership voted to support an expansion of the renter's tax credit as well as an income and corporate tax exemption for participating in water conservation programs. The Partnership also voted to oppose an new proposal to levy an oil and gas severance tax on extraction industries here in California.

"Increasing the tax credit for renters is crucial for California's workforce," said Partnership President and CEO Bill Manis. "The tax credit eases the burden of high rents for individuals and families across the state. It's an important step forward to making housing in California a bit more affordable for the millions of renters in the state."

SB 248 by Senator Steven Glazer (D-Orinda) expands the renter's tax credit for the first time since 1979. Those eligible for the expanded credit would be single filers making $41,641 or less and joint filers making $83,282 or less. Eligible households with children would receive a $434 refundable credit; households without children would receive $220. Under the current credit, eligible renters have their tax liabilities offset by $60 for single filers or $120 for join filers.

The Partnership is also pleased to support AB 533 by our local Assemblymember Chris Holden (D-Pasadena). The bill exempts any rebates, vouchers, or other financial incentives issued by a local water agency or supplier for expenses incurred to participate in a water efficiency or storm water improvement program from state or corporate income tax. The bill is designed to encourage more Californians to conserve water.  

The Partnership voted to oppose a newly proposed oil and gax severance tax. SB 246 (Wieckowski) would place a tax of 10 percent of the average price of a barrel of oil produced in California on that product as well as a 10 percent tax per average price of a unit of natural gas. The bill would require a two-thirds vote in both chambers of the State Legislature in order to pass. 

California has a projected budget surplus of $15 billion this year. A 10 percent tax on gas and oil produced in the state would harm the thousands of Californians who work in those two vital industries and lead to higher prices, harming the industry and providing a competitive advantage to oil and gas produced and imported into the state from places that do not have California's tough environmental laws and regulations. For these reasons, the Partnership opposes SB 246.

These decisions were made at the monthly meeting of the Partnership's Legislative Action Committee. For more information, contact Brad Jensen at bjensen@sgvpartnership.org or (626) 856-3400.

Partnership goes to Sacramento with the REAL Coalition, advocates with lawmakers

IRWINDALE, CA - The Partnership visited Sacramento this week and joined the REAL Coalition in meetings with key lawmakers working on housing, transportation and economic development legislation. The REAL Coalition is a group of the 25 largest regional business groups in the state, including the Los Angeles Area Chamber, Orange County Business Council, Greater San Diego Chamber, Silicon Valley Leadership Group, and many others. 

"We had a great opportunity to meet with key lawmakers this week," said Partnership President & CEO Bill Manis. "We gave critical feedback to our legislators on housing, transportation and the major issues facing the San Gabriel Valley."

The Coalition met with Senator Scott Weiner (D-San Francisco), chair of the Senate Housing Committee, to discuss his bill, SB 50, which up-zones areas around transit hubs and stations, encouraging greater density in new housing development. Next was Senator Jim Beall (D-San Jose), chair of the Senate Transportation Committee, who discussed his economic development bill, SB 5, which hopes to bring back tax increment financing to help build more affordable housing in the state. The final meeting was with Larry Mendonca, the director of the Governor's Office of Business and Economic Development and new chair of the State High Speed Rail Authority. He emphasized that the Newsom Administration is approaching economic development with a focus on equity across the state, helping those areas that need jobs and new growth the most. California has the 5th-largest economy in the world, he said. Clearly, something is working in the state's business community but major challenges remain - and the Governor and his staff want to address the things that are holding back greater growth in California.

Following the REAL Coalition meetings, Partnership staff met with Senator Anthony Portantino (D-La Canada Flintridge), who represents the foothill cities of the San Gabriel Valley in the Senate as well as chairing the Appropriations Committee. He discussed the various redevelopment proposals introduced in the legislature and expressed dissatisfaction with some of their provisions. The Partnership also met with the staff of Senator Susan Rubio (D-Baldwin Park) and Asm. Blanca Rubio (D-Baldwin Park).

Partnership Support's LA County Metro's INFRA Grant Application to Fix the 57/60 Confluence

IRWINDALE, CA - This week, the Partnership sent a letter of support on behalf of LA County Metro's federal INFRA grant application to fix the terrible 57/60 confluence - the 5th-worst truck bottleneck in the entire nation and the worst in California.

"The 57/60 confluence is a traffic nightmare," said Bill Manis, Partnership President and CEO. "Cars and trucks pile up at this junction, causing massive delays, releasing more carbon monoxide from idling cars and leading some drivers to get off the freeway and clog up the streets in Diamond Bar, Walnut, Pomona, and Rowland Heights. The residents of the San Gabriel Valley need this bottleneck fixed and fixed now."

The Partnership has worked with the Cities of Industry and Diamond Bar for many years to lobby the U.S. Department of Transportation for funding to fix the freeway project. Progress has been made, notably with the recent opening of the new Lemon Avenue off-ramp off the SR60, but the bulk of the freeway realignment remains incomplete. Additional federal funding would be a major boost to the project, which has local funds through Measure M to be completed.

Those who are interested in sending in an additional support letter may contact Lillian De Loza-Gutierrez from Metro at DeLozaGutierrezL@metro.net.