from Kevin Pedrotti, Legislative Advocate for the Golden State Builders Exchanges
Within a 24 hour window, the legislature passed a budget, sent it the Governor and it was vetoed; a physical altercation occurred on the floor of the Assembly over the use of the word “mafia;” and a former republican leader of the Assembly was cited for DUI. You can’t make this stuff up.
As previously noted, the Governor and legislative democrats for months have been trying to find the magic two republican votes in each house to extend the current temporary taxes on sales, income and cars. The voters provided the legislature the ability to pass a budget on a majority vote, but the two-thirds requirement is still necessary for taxes. The Governor and democrats want the tax extensions so no further cuts in public services are needed to balance the budget. With the June 15 constitutional deadline looming to pass a budget and the real threat that legislators would forfeit pay if a budget was not completed on time, a budget package was brought to the floor requiring only a majority vote since it did not include any taxes. Both houses passed the budget and corresponding budget trailer bills with precision, but not without some consternation among members of both parties on some budget solutions, namely the taking of local redevelopment agency funds. The debate was heated over this issue in the senate and it took several roll calls to finally get the necessary votes to send the bill to the assembly. Once in the assembly, this issue again was over heated with one republican member saying the state was functioning much like a scene from the Soprano’s where the mafia forced issues with brute force. That prompted another member of the assembly to ask for an apology to Italian-American’s. An apology was afforded, but not without more references to the mafia and insurance fraud. The non-apology caused some others members to stir and one member had to be restrained as he verbally dressed down his fellow legislator. Later that evening, news reports indicate a San Diego area legislator was observed driving over the speed limit and failing to stop at traffic signs close to the Capitol. Capitol police following on bicycles attempted to stop the offending legislator and did not catch up with him until he reached the Capitol basement parking garage. There, the legislator was cited and released for driving under the influence.
Where the budget goes next is an open question. Most lawmakers receive $95,291 per year in salary and $142 per day in living and travel expenses. Under Proposition 25, those payments must stop on June 16 if lawmakers have not sent the governor a budget.
The State Controller, John Chiang, made a forceful statement earlier this month that lawmakers must not only send the governor a budget on time, but one that is balanced. Democratic leaders said Thursday they had met that requirement regardless of Gov. Jerry Brown's veto. If Chiang rules that pay must stop, you can bet action on another budget attempt will be taken up quickly.
Legislative leaders struck back at Brown saying they acted and were angered that he vetoed their budget plan. Against that back drop, the Senate Leader has said he will not take up Brown appointees for confirmation in the near future.
Key Bills this Month
There are a number of key bills that will be considered this month. These include:
AB 780 (Calderon)which reinstates relief for fixed-priced construction contracts should an increase if the state sales tax be imposed. The bill is set for June 29 in the Senate Governance and Finance Committee.
AB 720 (Hall)that sets forth when force accounts can be used by county road commissioners. The bill is set in the Senate Transportation and Housing Committee on June 21.
SB 293 (Padilla)has among its provisions a 5% cap on retention for public works projects. The bill is set in the Assembly Business, Professions and Consumer protection Committee on June 21.
SB 474 (Evans)is intended to ensures that everyone are held responsible for their own active negligence and any harm they cause to project owners or workers. Currently, GCs use contractual clauses known as “Type 1” indemnity to shift for an injury, damage or defect. The bill is set in the Assembly Judiciary Committee on June 28.
SB 469 (Vargas)addresses a San Diego issue over development of "superstores" by Wal-Mart and other big retailers. The bill takes the side of grocery store unions and Wal-Mart's competitors who were losing at the local level. The measure would require such stores to undergo economic impact analyses, giving opponents more clout in stopping the development of these retail businesses. The bill is very selectively since it would apply to Wal-Mart but exempt Costco and similar stores. The bill is set in the Assembly Local Government Committee on June 22.
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