California Manufacturing Growth Agenda

By Michael Shaw

Capitol Update, Jan. 15, 2015 Share this on FacebookTweet thisEmail this to a friend

ATTRACT MANUFACTURING INVESTMENT TO CALIFORNIA

Manufacturers are re-shoring jobs and investments to the USA and California should take steps to attract its fair share.  Options to increase competitiveness in this area include conforming with federal tax law, lowering corporate income tax rates, and extending the Sales and Use Tax exemption on the purchase of manufacturing equipment.

EDUCATION TO MEET FUTURE WORKFORCE NEEDS

CMTA supports education reforms to meet the needs of manufacturers in the 21st century. California must establish scalable policy models and maintain sustainable funding for industry-relevant technical education and skills training in the K-12 and postsecondary education systems.

AFFORDABLE AND RELIABLE ENERGY SUPPLIES

Ambitious policies to reduce greenhouse gas emissions require rigorous oversight and analysis of economic impacts as well as environmental benefits in order to promote California competitiveness compared to other states and nations that do not impose such policies. Prior to setting new goals for emission reductions beyond 2020, the state must fully understand the pre-2020 costs of AB 32 policies and reform programs to protect California manufacturers. Future policies should promote in-state manufacturing to prevent leakage of emissions and jobs. CMTA supports post-2020 climate change goals and policies that utilize cost-effective, technologically feasible methods and tools.

RATIONAL ENVIRONMENTAL REGULATIONS FOR MANUFACTURING GROWTH

CEQA regulations were meant to protect the environment, but in some cases projects that would have led to environmental improvements have been blocked or delayed. California Environmental Quality Act (CEQA) reforms would expedite permitting of new or expanded manufacturing facilities for the benefit of both jobs and the environment.

MODERNIZE WORKPLACE LAWS AND REGULATIONS

CMTA supports workplace policies that meet the needs of employers and workers in today’s advanced manufacturing economy.  Outdated policies impose unnecessary costs and burdens on companies, increase risks of frivolous litigation, and frustrate efforts to improve productivity.  CMTA encourages California to be a leader in promoting sensible workplace policies that balance worker protections with incentives that promote manufacturing job growth and investment to build a stronger middle-class. 

 

 

New bills introduced

As we roll into the new legislative session legislators are continuing to hire staff and hang pictures on the walls, but CMTA is already tracking a number of bills with positions that are consistent with our Manufacturing Growth Agenda. With a February 27th deadline for the introduction of new bills, we expect the pace to pick up significantly over time as this is a deadline-driven business in Sacramento. Your CMTA lobbyists will continue to update our bill tracking as new bills come into print and include a regular addition to the Capitol Update of the priority bills facing California manufacturers and technology companies.

Your input is highly valuable, so please feel free to reach out to us to share your concerns or support for specific bills or proposals. Also, please consider participating in one of CMTA’s policy committees (listed below). The year is set to be a busy one, so keep an eye on your email for CMTA updates and action alerts throughout the year.

  • Climate Change Advisory
  • Corporate Counsel
  • Energy: (Available only to manufacturing companies - not our associate members. Additional member fee required)
  • Environmental Quality
  • Government Relations
  • Labor & Employment
  • Tax

CMTA members can sign up for these committees here.

 

Introduced Bills

CLIMATE CHANGE

Staff Contact: Michael Shaw

AB 21 (Perea) Post-2020

Spot bill to require ARB to recommend to the Governor and Legislature specific targets for statewide emissions reductions by 2030 and consult with the PUC regarding electrification of the transportation sector.

AB 33 (Quirk) Scoping Plan

Requires ARB by January 1, 2016 to propose greenhouse gas emissions reduction goals for 2030, 2040 and 2050 as part of the Scoping Plan Update and provide a report to the Legislature by January 1, 2017.

SB 32 (Pavley) Emissions Limit

Requires ARB to establish a GHG emission limit of 80 percent below 1990 levels to be achieved by 2050 and allows ARB to set interim emissions targets for 2030 and 2040. Specifically directs ARB to set emissions targets for short-lived climate pollutants.

 

ENVIRONMENTAL

Staff Contact: Mike Rogge

AB 102 (Rodriguez) Railroad Safety and Emergency Planning

Spot bill anticipated to implement a fee on hazardous chemicals transported by rail.

SB ? – no # yet (Jackson) California Environmental Quality Act

Anticipated to reform CEQA in 3 areas: concurrent preparation of environmental record, increased use of electronic documents, and eliminations of document dumping. Nothing has been seen in writing, although the author has had a meeting (in conjunction with Senators Roth and Hill) with stakeholders.

 

LABOR & EMPLOYMENT

Staff Contact: Nicole Rice

AB 67 (Gonzalez) Double Pay on Holiday Act

Requires employers to pay their employees double time when working on Thanksgiving or Christmas day.

SB 3 (Leno) Minimum Wage Increase

Increases the state minimum wage for all industries in two stages – $11/hr in 2016 and $13/hr in 2017 – then mandates future annual increases tied to inflation. Also allows local jurisdictions to adopt higher wage thresholds.

SB 29 (Beall) Sick Leave

Spot bill pertaining to the use of sick leave to care for an employee’s ill spouse, domestic partner, parent, or child.

 

REGULATORY REFORM

Staff Contact: Michael Shaw

AB 12 (Cooley) Regulations Review

Requires state agencies to review existing regulations by January 1, 2018 and revise duplicative, overlapping, out-of-date, or conflicting regulations and direct the Department of Finance to annually report to Legislature on compliance with standardized regulatory impact analysis requirements.

 

TAXATION AND BUDGET

Staff Contact: Michael Shaw and Nicole Rice

SB 8 (Hertzberg) Tax on Services

Major tax reform bill that raises $10 billion in additional revenue through application of the Sales and Use Tax to most services in order to fund specific entities ($3 billion to K-14 education; $2 billion for UC and CSU systems; $3 billion for local government; $2 billion for a California EITC; and unspecified changes to the corporate income tax rates) with unspecified reforms to corporate and personal income tax rates designed to incentivize investment and higher minimum wages.

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