From Kevin Pedrotti, Legislative Advocate for the Golden State Builders Exchanges (GSBE)
The 2011-2013 legislative session ended on August 31. The Governor has until September 30 to sign or veto bills passed by the legislature before September 1.
The ending days of every session brings many issues to the forefront. An effort to inject CEQA reform was blocked by the legislative leadership which declared there was insufficient time to address such a complicated issues in the remaining in the legislative year; however, the legislature, with support of the Governor, did push through comprehensive workers’ compensation and public pension on the final day of adjournment. The senate champion for CEQA reform, Senator Michael Rubio, said he will take this issue up again next session. In addition, the final bill approved on the closing night of session was a timber tax. Supported by the administration and timber industry, AB 1492 would limit liability on the part of lumber companies and landowners in cases of forest fires. In return, a 1% tax would be levied at retail in order to fund forestry oversight. The tax would raise some $30 million a year to finance environmental reviews of timber harvest projects.
GSBE develops an inclusive list of over 100 pieces of legislation that are actively addressed throughout the session. A majority of the bills introduced, good or bad from the construction industry’s perspective, seldom make it through the entire legislative process and to the Governor for final action.
GSBE, as part of an employer coalition advocating for regulatory reform, signed on to numerous bills this year that if passed would assist in removing expensive regulatory hurdles for businesses in California. Of the many bills supported by the coalition, only two saw their way to the Governor. Both were carried by Senator Rod Wright.
SB 965 would establish allowable ex parte communications with State Water Resources Control Board (SWRCB) and Regional Water Quality Control Board (RWQCB) members and increases public access to the SWRCB and RWQCB public processes. Ex parte communications are made in private between an interested party in a decision making process and an official in a decision making position. By allowing access to decision makers, a more effective and balanced approach can be made to enacting public policy.
The other, SB 1099, provides that unless an effective date is specifically provided, a regulation or an order of repeal shall become effective on a quarterly basis. Every year, businesses face countless new regulations promulgated by state agencies. The regulations go into effect 30 days after filing with the Secretary of State, and this happens year round. It is difficult, if not impossible, for a small business with minimal staff to keep track of the regulatory process involving multiple departments and agencies.
Unlike previous sessions, there were few legislative proposals this year having a direct impact to the construction industry that made their way to the Governor.
One such bill is GSBE co-sponsored AB 1671 (Huffman) which extends, until January 1, 2020, the sunset date prohibiting the Department of Transportation (CalTrans) from withholding retention proceeds to its contractors when making progress payments for work performed on a public works projects. The initial legislation was passed in 2008.
A new laws summary will be completed once the Governor takes action on all legislation.
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