A bill that would give certain union industries relief from meal period liability, AB 569 (Bill Emmerson, R-Hemet), heads to the Governor’s desk.

Currently all industries, businesses, and occupations are subject to a restrictive statute which has resulted in costly litigation. CMTA believes that a comprehensive solution must be reached in order to provide ALL businesses regardless of size, type or union status, with appropriate clarity and guidance for the compliance and enforcement of meal period laws.

AB 569 only carves out union commercial drivers, construction workers, security guards and electrical workers from the meal period statute. CMTA believes that all union companies should be allowed to collectively bargain these provisions and that non-union companies should receive the same flexibility by clarifying the current statute.

CMTA will continue lobbying for a comprehensive solution to California’s meal period law for all employees. We are requesting a veto of AB 569 which only provides relief to a few.

Call the Governor’s legislative unit today to voice your opinion: (916) 445-4341.

To see a template of a letter to the Governor, go to:  www.cmta.net/pdfs/AB 569_VETO_Template.doc

After the historic passage of the Patient Protection in the Affordable Care Act, the federal government is now working diligently to roll out a series of regulations related to Health Care Reform.

Earlier this week U.S. Health and Human Services (USHHS) Secretary Kathleen Sebelius released final rules on the expanded use of electronic health records (EHR).  Under the Health Information Technology for Economic and Clinical Health Act of 2009, eligible health care professionals and hospitals can qualify for Medicare and Medicaid incentive payments when they adopt certified EHR technology and use it to achieve specified objectives.  These regulations are just a start in the multiple steps to lay the groundwork for the incentive payments program.  As much as $27 billion may be expended in incentive payments over ten years.  Eligible professionals may receive as much as $44,000 under Medicare and $63,750 under Medicaid, and hospitals may receive millions of dollars for implementation and meaningful use of certified EHRs under both Medicare and Medicaid.

USHHS also announced regulations requiring new private health plans to cover evidence-based preventive services and eliminate cost sharing requirements for such services.  The new rules will help Americans gain easier access to services such as blood pressure, diabetes, and cholesterol tests; many cancer screenings; routine vaccinations; pre-natal care; and regular wellness visits for infants and children. Under the regulations issued this week, new health plans beginning on or after September 23, 2010, must cover preventive services that have strong scientific evidence of their health benefits, and these plans may no longer charge a patient a copayment, coinsurance or deductible for these services when they are delivered by a network provider.

The California legislature wishes to quickly implement federal directives on health care reform and is watching closely all regulations being issued by USHHS.  CMTA will continue to monitor regulations that control cost and improve the quality and effectiveness of the health care delivery system.

The Assembly Judiciary Committee passed, 7 to 2, SB 657 (Darrel Steinberg D-Sacramento) which mandates that manufacturers and retailers develop and disclose their company’s policy to eradicate slavery and human trafficking from their supply chains.

Although the bill is portrayed by the sponsors as a consumer protection measure, the statute sets forth a set of minimum standards that all companies must address.  If this bill is signed into law, companies will need to disclose at a minimum what they are doing and not doing in the following areas:

1. Engaging in a third-party verification of product supply chains to evaluate and address risks of human trafficking and slavery;


2. Conducting independent, unannounced audits of suppliers to evaluate supplier compliance with company standards for trafficking and slavery in supply chains;


3. Requiring suppliers to certify that raw materials incorporated into the product comply with the laws regarding slavery and human trafficking of the country or countries in which they are doing business;


4. Maintaining internal accountability standards and procedures for employees or contractors failing to meet company standards regarding slavery and trafficking; and


5. Providing company employees, including management, training on human trafficking and slavery, particularly with respect to mitigating risks within the supply chains of products.

In addition, the bill contains an exclusive remedy by the Attorney General for injunctive relief if a company fails to disclose their policies on their websites.

This type of mandate is unprecedented and may encourage future mandates that increase businesses liability.  California businesses are likely to be held responsible for the actions of suppliers whom they have no contractual relationship or influence over, depending on the depth of their supply chain.

California’s business community opposes slavery and the abusive treatment of workers. However, SB 657 puts businesses in the role of policing federal and state laws regarding slavery and human trafficking.  CMTA believes that businesses have already stepped up to address the myriad of challenges in this area and that ongoing international dialogues should continue on the role businesses should play.

Between the Appropriations Committee and floor sessions last week the Legislature was busy moving bills along and slowing others down. In the area of labor and employment, several key bills were held in their respective Appropriations Committee while several bad bills moved forward. The following is a quick snap shot:

Bills held in suspense/no longer moving

• AB 1804 (Curt Hagman, R-Diamond Bar) Employment Training Panel (CMTA supported);


• AB 1994 (Nancy Skinner, D-Berkeley) Hospital Employees Workers’ Compensation Presumption (CMTA opposed);


• AB 2030 (Mariko Yamada, D-Davis) Unemployment Insurance Self Employment Assistance Program (CMTA opposed);


• AB 2727 (Steven Bradford, D-Inglewood) Applicant Criminal History (CMTA opposed); and


• SB 1259 (Mark DeSaulnier, D-Concord) Office of Economic Development (CMTA supported). 

Important bills to be heard in their second House

• AB 569 (Bill Emmerson, R-Hemet) Meal Period Carve-Out for Transportation (CMTA opposes);


• AB 1827 (Juan Arambula, I-Fresno) Transfer Unemployment Insurance Resources to One-Stop Centers (CMTA opposes);


• AB 2340 (William Monning, D-Santa Cruz) Bereavement Leave (CMTA opposes);


• SB 657 (Darrell Steinberg, Senate President pro Tempore, D-Sacramento) Human Trafficking (CMTA opposes);


• SB 1231 (Ellen Corbett, D-San Leandro) Contracts with State – Human Trafficking (CMTA opposes);


• SB 13 (position letter)04 (DeSaulnier) Medical Leave for Bone Marrow and Organ Donation (CMTA opposes); and


• SB 477 (Dean Florez, D-Shafter) Outdoor Heat Illness (CMTA opposes).

Among the bills that were held, CMTA supported AB 1804 which would have stopped the diversion of Employment Training Panel dollars to the Department of Social Services.  CMTA also supported another bill held back, SB 1259, which would have created a position for a Secretary of Economic Development and Job Creation in an effort to reorganize government and maximize tools available for businesses.  Both of these bills would have gone a long way to help restore a strong economy.

Of the bills still moving, SB 657, which mandates all businesses to develop, implement and maintain a policy that shows how they avoid human trafficking and slavery in their supply chain, will soon take testimony in an Assembly Judiciary hearing.

Senate President Pro Tempore Darrell Steinberg (D-Sacramento) revealed a 27-bill package on February 10th. He estimated that it would create 140,660 jobs.

Some bills will use federal funds for transportation (SBx8 36 Correa), high speed rail (SB 965 DeSaulnier), school (SB 205 Hancock) and multi-family housing construction (SB 958 Lowenthal).  Some bills target unspent state bond funds for new programs such as workforce training for high speed rail (SB 964 Alquist), “green school” energy efficiency projects (SBx8 35 Lowenthal) and redirecting funds from ineffective housing projects (SBx8 28 Yee).

The package calls for an expansion of energy efficiency and renewable projects such as a 33 percent renewable portfolio standard (SB 722 Simitian), mandating that a certain level of renewable energy is purchased in California, expedited permitting for large scale renewable projects (SBx8 34 Padilla), using existing Public Interest Energy Research funds for the construction or reconfiguring of facilities or schools for career technical education that prepares students for employment related to clean technology, renewable energy or energy efficiency (SB 675 Steinberg). There are also bills on environmental restoration; recycling, litter reduction, water supply, flood protection (SB 991 Wolk), and clean air (SBx8 37 Cedillo). SB 959 (Ducheny) would have Cal-EPA re-establish the Permit Assistance Centers, One-Stop Shops, to streamline the process for new businesses needing multiple permits.

Workforce Development is another issue in the package. Senator Leno will have a bill to expand the “Work Share” program at the Employee Development Department so more employees can maintain employment and receive partial UI benefits.  SBx8 29 (Steinberg) would exempt certain State employees from being furloughed. SB 974 (Steinberg) would swap out Enterprise Zone tax credits with new credits to encourage businesses to invest resources, time and expertise in middle and high school “career pathways”.

Not all proposals have numbers. The package has until the bill introduction deadline of February 19.

As unemployment continues to rise, it comes as no surprise that California now faces the largest unemployment fund shortfall in the nation.  The Legislative Analyst Office has forecast an $18.4 billion deficit by the end of 2010. As of now, California has borrowed $6 billion from the Federal Unemployment Insurance (UI) Trust Fund and will probably borrow more. Unfortunately, 25 other states have also borrowed money from this fund and 40 states are predicted to do so by the end of 2010.



These staggering numbers will continue to rise unless states raise their UI taxes or the Federal Government raises the UI federal tax.  All states that are currently borrowing money from the feds must pay their loans back with interest.  California’s debt comes due in January 2011.  It will include about $1 billion in interest to be paid from the General Fund.  In addition, employers may lose their federal tax credit – a potential increase to them of $320 million in 2011.



As California’s legislature continues to battle the State’s massive budge deficit it must also address this mounting UI debt.  It will be a challenge to raise taxes in this climate and a drastic UI tax increase on employers will be detrimental to businesses and likely result in even more Californians facing unemployment.



For a snapshot of other states click this link:  projects.propublica.org/unemployment/