Pasadena Chamber Board positions on pending legislation

The Pasadena Chamber Board of Directors often takes positions in support of (or oppostion to) legislation, initiatives and regulations that may impact Pasadena, our local economy or our members.

These items are first reviewed by our legislative and Government Affairs Committee who recommends positions to the Board. The Committee determines if the legislation could have an impact in Pasadena and, if so, often recommends positions to the Chamebr Board.

Recently, the Board took positions on these bills that are pending in Sacramento:

A. Oppose AB 1066 (Gonzalez; D-San Diego) Could significantly increase costs on employers engaged in a trade dispute by allowing employees on strike to receive unemployment benefits if the strike lasts more than two weeks, incentivizing strikes and transforming unemployment insurance into a political tool in trade disputes. CalChamber has identified AB 1066 (Gonzalez) as a Job Killer because it will expose employers to a significant cost increase
during a time in which they are already struggling with the financial impact of labor negotiations and a strike, thereby jeopardizing the employers’ ability to maintain existing jobs and wages as well as the increased wages and benefits demanded by the union.

B. Oppose SB 37 (Skinner; D-Berkeley) Proposes one of the steepest corporate tax increases ever contemplated in California. The bill requires that for taxable years beginning on or after January 1, 2020, the rate for corporations with net income of $10 million or more be revised to instead impose a tax rate from 10.84% to 14.84%, or for financial institutions, from 12.84% to 16.84%, based on the compensation ratio of CEOs to employees of the corporation. This measure would bring the top tax rate for some companies to 22.26%, about 150% higher than today’s rate. The bill goes beyond what was contemplated in last year’s SB 1398 (Skinner), also tagged a Job Killer, which failed to pass out of the Senate policy committee. CalChamber has identified SB 37 (Skinner) as a Job Killer because the measure
will result in companies offsetting the costs of these steep tax increases by reducing their presence (and taxable exposure) in California.

C. Oppose SB 320 (Jackson; D-Santa Barbara) Exposes businesses to costly litigation for a consumer’s assertion that any price difference on “substantially similar” goods, even a nominal amount, is based on gender and therefore the consumer is entitled to a minimum of $4,000. CalChamber has identified SB 320 (Jackson) as a Job Killer because of the private right of action with an automatic $4,000 for any violation. Although a business may very well be able to prove the price charged for a particular product was based on a gender-neutral reason, the cost of litigation to prove that defense would be significant.

D. Support SB 329 (Portantino) Modifies the minimum franchise tax on small businesses and creates a tax structure to encourage entrepreneurship in California. It is an attempt to help small businesses succeed and encourage investment growth while also respecting protections with LLCs (Limited Liability Corporations). The bill creates a fee structure based on a small businesses annual gross receipt to replace the flat $800 flat minimum tax mandate. This will help foster growth of small businesses and encourages entrepreneurship by reducing costs for
many small businesses.

E. Support SB 659 (Borgeas; R-Fresno) will minimize frivolous litigation that blocks infill housing projects. The California Environmental Quality Act (CEQA) is used sometimes by special interest and community groups to delay, scale back or halt projects for reasons unrelated to the environment. SB 659 acknowledges the urgency of timely housing construction and seeks to discourage frivolous CEQA litigation filed to block or slow critically needed infill housing projects by awarding reasonable attorney’s fees to the prevailing party. By discouraging frivolous CEQA litigation, SB 659 will expedite construction for infill housing projects, reduce costs associated with CEQA litigation, and create more jobs.

F. Support SB 621 (Glazer), EXPEDITING AFFORDABLE HOUSING PROJECTS which would expedite CEQA judicial review for affordable housing projects to 270 days. Places a time certain on judicial decisions related to CEQA litigation.

G. Support SB 744 (Caballero), CEQA EXEMPTIONS FOR STATE FUNDED HOMELESS HOUSING PROJECTS which would enable CEQA exemptions and expedite 270-day judicial review for Proposition 2 funded housing projects.

H. Support AB 782 (Berman) LAND CONSERVATION ACQUISTIONS which would enable CEQA exemptions for public agencies to acquire land for conservation purposes.

I. Oppose AB 857 (Chiu/Santiago), MUNICIPAL BANKS which would authorize local agencies to create and operate publicly owned banks. Municipalities can’t fill potholes, they are going to successfully run a complex financial institution?

J. OPPOSE AB 51   (Gonzalez) - Would ban Settlement Agreements and Arbitration Agreements. Significantly expands employment litigation and increases costs for employers and employees by banning settlement agreements for labor and employment claims. Bans arbitration agreements made as a condition of employment, which is likely preempted under the Federal Arbitration Act and will only delay the resolution of claims. Banning such agreements benefits the trial attorneys, not the employer or employee.

K. SUPPORT AB 474 (Reyes).  - Would create the Loan Loss Reserve Account in the California Small Business Expansion Fund to be under the administrative and management control of the California Small Business Finance Center within the bank, and would continuously appropriate all moneys deposited into the account to the center for purposes of the Small Business Financial Assistance Act of 2013, to assist small business with compliance with environmental regulations.

L. SUPPORT SB 150 which calls for changes to the Chafee Education and Training Voucher (Chafee ETV), available to help students who have been placed in the foster care system afford college. The bill would improve the administration of the grant program and remove obstacles for foster youth, including rigid academic benchmarks that often lead to foster youth losing their grant aid;

M. SUPORT SB 4, Enabling Inclusive Workforce and Affordable Housing (McGuire & Beall), which focuses on strategic infill developments to build workforce affordable housing throughout the state;

N. SUPPORT SB 25 (Caballero) which would expedite CEQA lawsuits and reduce the environmental process for projects funded by opportunity zones;

O. SUPPORT AB 71 (Melendez)  Would change the recent CA Supreme Court decision on contractors from the courts ABC test back to the original Borello nine (9) point test.

P. OPPOSE AB 5 (Gonzalez) Codifies into state law the Dynamex decision (the new independent contractor law) and “clarifies” its application.