Michael Shaw

Final outcome of the Governor's pen

By Michael Shaw, VP, Government Relations

Capitol Update, Oct. 8, 2018 Share this on FacebookTweet thisEmail this to a friend

September 30th marked the deadline for Governor Jerry Brown’s final signing period where he had to decide the fate of hundreds of bills sent to him by the Legislature in August. Shortly after his office released the final update, Brown tweeted:

"16 years — and nearly 20,000 bills — later, the desk is clear. #Eureka."

In 2018, he signed 1,016 bills total and vetoed 201. Many of those bills affected, directly and indirectly, California manufacturers and your CMTA lobbyists poured hundreds of hours into advocating for the interests of manufacturing on many of these bills.

Below is the final status of some of CMTA’s more important bills that landed on the Governor’s desk:


Signed by the Governor

Legend:
✅ Outcome DID align with CMTA position
❌ Outcome DID NOT align with CMTA

ENERGY

Staff Contact: Michael Shaw


AB 1879 (Santiago) New Natural Gas Service Connections
Protects opportunity for manufacturing growth by setting additional conditions that the California Public Utilities Commission (CPUC) would have to meet in order to block new natural gas service connections.
[9/18/18, Chapter 481]
Position: Support

SB 100 (de León) Renewables Portfolio Standard Increase – MFG Breaker
Accelerates the goal to reach 50 percent renewables from 2030 to 2025 and adds a 100 percent zero carbon energy target in 2045 without specific offramps for conditions related to cost increases or reliability concerns for California ratepayers.
[9/10/18, Chapter 312]
Position: Oppose

SB 901 (Dodd/Conference Committee) Utility Wildfire Liability Relief
Increases energy rates for California manufacturers by imposing costs to cover damages from the 2017 North Bay Fires (PG&E) and changing the rules for apportioning liability costs for future utility-caused wildfires in a manner that makes it easier to shift the burden to ratepayers. The bill also directs $1 billion over the next five years from the Greenhouse Gas Reduction Fund (GGRF) to reduce the risk of large wildfires.
[9/21/18, Chapter 626]
Position: Oppose

SB 237 (Hertzberg) Electricity: Direct AccessMFG Maker
Increases customer choice for large energy users by increasing the existing cap on ‘direct access’
for electricity allowing manufacturers to purchase electricity from a provider other than the utility at
a lower cost. [9/20/18, Chapter 600]
Position: Support

 SB 1131 (Hertzberg) Industrial Energy Efficiency ProjectsMFG Maker
Increases access to energy efficiency funds paid by industrial ratepayers for energy efficiency projects at industrial facilities by requiring the California Public Utilities Commission (CPUC) to create a standardized metric for project eligibility. [9/19/18, Chapter 562]
Position: Support

ENVIRONMENTAL

Staff Contact: Dawn Koepke of McHugh, Koepke & Associates
Unless noted


 AB 1775 (Muratsuchi/Limón) New Offshore Oil Production Ban
Requires the State Lands Commission (SLC), upon receipt of an application for a lease renewal, extension, amendment, or modification to new construction of oil-and-gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf (POCS) issued after January 1, 2018, to notify the public, allow public comment, hold a public hearing on the matter and consider the impacts and necessity of the application.
[9/8/18, Chapter 310]
Position: Oppose

 AB 2061 (Frazier) Near-Zero and Zero-Emission Vehicles
Creates a weight exemption of up to 2,000 pounds for zero and near-zero emission heavy-duty vehicles that will help them maintain cargo capacity and economic viability while reducing emissions.
[9/20/18, Chapter 580]
Position: Support
Staff Contact: Michael Shaw

 AB 2632 (Santiago) Packaging and Labeling, Slack Fill MFG Maker
Provides clarity in current statute to ensure consumer product and food manufacturers cannot be deemed to have violated California’s ‘slack fill’ law when the product’s exterior packaging contains information that clearly communicates the amount and size of the product contained the packaging.
[9/19/18, Chapter 544]
Position: Support

 AB 2928 (Chen) Used Oil
Provides that the testing of used oil by a generator of highly controlled used oil is required only once
per year for the purpose of determining whether the used oil is hazardous waste for purposes of the exemption from regulation as hazardous waste.
[9/17/18, Chapter 440]
Position: Support

  AB 2998 (Bloom) Juvenile Products – Flame Retardants
Beginning January 1, 2020, prohibits sales & distribution of new (not previously owned) juvenile products, mattresses, or upholstered furniture that contains flame retardant chemicals at levels above 1,000 parts per million and prohibits a custom upholsterer from repairing furniture using components that contain flame retardant chemicals at those same levels.
[9/29/18, Chapter 924
Position: Oppose

 SB 834 (Jackson/Lara) New Offshore Oil Production Ban
Requires the State Lands Commission (SLC), upon receipt of an application for a lease renewal, extension, amendment, or modification to new construction of oil-and-gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf (POCS) issued after January 1, 2018, to notify the public, allow public comment, hold a public hearing on the matter and consider the impacts and necessity of the application.
[9/8/18, Chapter 309]
Position: Oppose

 SB 1133 (Portantino) Regional Water Quality Control Boards – Funding
Authorizesthe SWRCB, on behalf of itself or a regional board, to accept donations of moneys from a permittee for the purpose of updating a water quality control plan.
[9/11/18, Chapter 355]
Position: Support

 SB 1249 (Galgiani) Animal Testing, Cosmetics
As amended, opposition removed and changed to support. Prohibits the sale of any cosmetic, if the cosmetic was developed or manufactured using an animal test that was conducted or contracted by the manufacturer, or any supplier of the manufacturer, on or after January 1, 2020. Amendments provide retailers with up to 180 days to remove products that were found to be in violation of the test ban; provides for state pre-emption of local government ordinances; and provides trade secret protections for safety testing data requested by prosecutors.
[9/28/18, Chapter 899]
Position: Support

 SB 1335 (Allen) Solid Waste Food Service Packaging in State Agencies and Large State Facilities
Requires, on or before June 1, 2021, CalRecycle to adopt regulations to establish a process and develop criteria for determining the types of food service packaging that are reusable, recyclable, or compostable and to publish a list of approved types of packaging on its website. The regulations and the food service packaging list shall be used to determine the types of food service packaging that may be distributed in state facilities.
[9/20/18, Chapter 610]
Position: Oppose
 

LABOR & EMPLOYMENT

Staff Contact: Nicole Rice


SB 1300 (Jackson) Increased Employment Litigation Exposure
Significantly amended to remove the private right of action for “failure to prevent” and delete changes to the existing sexual harassment training requirement. However, codifies intent language that lowers the standard for sexual harassment complaints and discourages summary adjudication of meritless claims. “Bystander intervention” training remains but is discretionary.
[9/30/18, Chapter 955]
Position: Oppose

SB 1343 (Mitchell) More Sexual Harassment Training Revisions
Requires all manufacturers with five or more employees to provide sexual harassment training to every worker. Companies can either develop their own training program or use the online course to be provided by the Department of Fair Employment and Housing.
[9/30/18, Chapter 956]
Position: Support

REGULATORY & LEGAL

Staff Contact: Jarrell Cook


SB 826 (Jackson) Gender Quotas for Board of Directors MFG Breaker
Discourages manufacturing investments and job creation by forcing manufacturers with California-based headquarters to institute a gender quota for their board of directors or face significant penalties.
[9/30/18, Chapter 954]
Position: Oppose

TECHNOLOGY

Staff Contact: Jarrell Cook


AB 1906 (Irwin) and
SB 327 (Jackson) Internet of Things Regulation MFG Breakers
Stifles innovation by inviting arbitrary and vague mandates on manufacturers of connected devices by requiring all connected devices to be equipped with “reasonable” security features “appropriate” to the nature of the devices.
[9/28/18, AB 1906 Chapter 860 and SB 327 Chapter 886]
Position: Oppose

 

WORKERS’ COMPENSATION

Staff Contact: Nicole Rice

 SB 880 (Pan) TD Benefits Payment Pilot
Permits self-insured employers and workers’ compensation insurers to use prepaid electronic funds cards (rather than paper checks) to pay temporary disability (TD) benefits. This pilot program sunsets on January 1, 2023.
[9/23/18, Chapter 730]
Position: Support

 

WORKFORCE DEVELOPMENT

Staff Contact: Nicole Rice


 AB 2420 (Quirk-Silva) Soft Skill Training
Clarifies that employers can use Employment Training Panel funding to train in “work-readiness” skills.
[8/28/18, Chapter 216]
Position: Support
 

Vetoed by the Governor

ENVIRONMENTAL

Staff Contact: Dawn Koepke of McHugh, Koepke & Associates
Unless noted


AB 2474 (Quirk) Hazardous Waste – Identification & Testing
Authorizes DTSC to evaluate potential alternative tests to the fish toxicity test to determine whether the tests can be adapted to be appropriate for use in identifying substances as hazardous waste or extremely hazardous waste, consistent with the requirements of state hazardous waste control laws. If DTSC finds they can be adapted it would require the Department to use each test found appropriate, as adapted, as an alternative to the fish toxicity method.
Position: Support
Veto Message 

LABOR & EMPLOYMENT

Staff Contact: Nicole Rice


AB 2819 (Holden) UC Study of High-Tech Company Employees MFG Breaker
Establishes unconstitutional hiring quotas on the Board of Directors of every publicly-held high technology company in California. Also commissions a biannual study on the diversity make-up of certain high technology companies located in California that will be posted online over a 10-year period.
Position: Oppose
Veto Message

AB 3080 (Gonzalez Fletcher) Prohibition of Arbitration Agreements MFG Breaker
Eliminates the use of arbitration agreements as a condition of employment for all labor and employment claims that arise under the state Labor Code or the Fair Employment and Housing Act.
Position: Oppose
Veto Message

AB 3081 (Gonzalez Fletcher) Sexual Harassment, Rebuttable Presumption MFG Breaker
Sexual harassment “omnibus” bill that was paired down in the final week of session to solely extend joint employer liability to harassment and impose a 30-day rebuttable presumption of retaliation if an employer takes an adverse employment action against an employee who is an alleged victim of discrimination. 
Position: Oppose
Veto Message

SB 937 (Wiener) Lactation Accommodation Mandate
Still expands manufacturers’ responsibilities in providing lactation accommodations and increases liabilities for violating that mandate. Amendments during the final days of session removed the private right of action and proposed requirements for building code/tenant improvement updates.
Position: Oppose
Veto Message

REGULATORY & LEGAL

Staff Contact: Jarrell Cook


AB 2107 (Reyes) Expanding New Motor Vehicle Board Authority MFG Breaker
Discourages innovation in auto manufacturing and service by giving car dealers a significant advantage in manufacturer-franchisee relationship and disputes regarding warranty parts and repair rate.
Position: Oppose
Veto Message

AB 2596 (Cooley) California Economic Development Strategic Plan MFG Maker
Requires the Governor’s Office of Business and Economic Development (GO-Biz) to lead a stakeholder process to develop a three-year economic development plan that includes recommendations for policy and program changes in order to promote growth in key existing and emerging industries.
Position: Support 
Veto Message

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