from Kevin Pedrotti, Legislative Advocate for the Golden State Builders Exchanges
Legislative Update
With one week remaining in the legislative session, there is some clarity and equal uncertainty with respect to remaining “big” issues.
CEQA Reform: It was announced yesterday there would be no CEQA reform this year. An effort to overhaul the California Environmental Quality Act in the last two weeks of the legislative session appeared likely earlier in the week. The proposal pushed by the Silicon Valley Leadership Group and other business interests would limit the ability to challenge certain construction projects in court. The proposal would exempt from CEQA projects that comply with a city general plan or other planning document for which an environmental review already has been done. Governor Brown has been critical of CEQA and he signed three bills last year limiting its reach. Environmentalists quickly mobilized against any changes and over 30 legislators signed a letter to legislative leaders urging a bill not move forward this year.
Workers Compensation Reform: Depending upon which day and who you ask, there remains uncertainty whether a major workers compensation reform bill is acted upon this year. The administration has taken over the drafting and quarterbacking of the effort. New draft workers' comp reform language is circulating and the updated text reflects several areas of compromise around the computation of permanent disability benefits, medical provider networks and the provisions for settling medical treatment disputes through independent medical review. The draft also brings back some provisions that were initially slated for elimination, such as a 15% penalty if employers don't offer a return-to-work option. But the changes don't appear to be enough to quell the opposition. Huge opposition has been generated from the California Applicants' Attorneys Association, California Society of Industrial Medicine and Surgery and others. The pre-print of the newest amendments is SB 867 (DeLeon).
Timber Tax: The timber industry and administration is proposing a “timber tax.” As proposed earlier in Governor Brown’s budget, provisions would limit liability on the part of lumber companies and landowners in cases of forest fires. In return, the lumber industry would pay an additional 1 percent lumber tax in order to fund forestry oversight. The tax would raise some $30 million a year to finance environmental reviews of timber harvest projects. Tax organizations, some retailers, and wholesalers are opposing the bill. This proposal is in AB 1492.
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