from Damon R. Conklin, Director of Government Affairs, Sacramento Regional Builders Exchange
CSLB MAKES NEW B-2 LICENSE AVAILABLE
On June 1, the CSLB will begin accepting applications for the new B-2 Residential Remodeling Classification. This classification is available to licensees and applicants whose principal contracting business involves working on existing homes with residential wood frame structures which require at least three unrelated trades or crafts for a single contract (SB 1189).
NINTH CIRCUIT RULES AB5 NOT PREEMPTED, LIFTS INJUNCTION
The Ninth Circuit Court of Appeals rejected a lower court’s injunction and stated that AB 5 is applicable to the trucking industry in California. The suit was brought by the California Trucking Association on the basis of federal preemption for motor carriers. The construction industry is still operating under AB 5’s construction industry trucking exemption (Exemption) which is in effect until January 1, 2022. Legislatively, SRBX is supporting AB 1561 which seeks to extend the exemption out until January 1, 2025. Read more here.
SACRAMENTO AREA ECONOMY RUNS ON GOVERNMENT
The PPIC released a report that found while employment in Sacramento metro dropped nearly 14% in April 2020, the region has recovered by about 70%—a bit better than statewide. Of the three industries the report credited (government being the first) that helped protect the Sacramento metro from deeper cuts, construction was cited as the second industry to help keep Sacramento to grow faster than in any of the 13 largest metros in California, perhaps reflecting strong and growing demand for housing in the region. Read entire report here.
CONGRESSIONAL UPDATE
Earlier this week, SRBX sat down with Congressman John Garamendi (CA-3), Congressman Alan Lowenthal (CA-47), Congresswoman Judy Ch (CA-27), Congresswoman Sanchez (CA-38) and Congressman Mike Levin (CA-49) to discuss the Biden administration’s transportation and infrastructure proposal and how to best position CA for shovel-ready projects for the construction industry to address affordable housing, road maintenance, broadband and energy generation. Additionally, there was discussion around ways to upskill displaced workers how to strengthen the pipeline from classrooms to the careers through workforce development programs that are critical to our industry in closing the skilled labor gap. A BIG thank you to the members for their time, thoughts and continued commitment to supporting our industry.
TAX UPDATE
On Wednesday, the California Supreme Court declined to review an appeals court’s ruling permitting San Francisco to fund child care and early education programs with a tax approved by 51% of voters. Under a ballot measure California voters approved in 1996, any tax increase proposed by local government to fund specific programs must be passed by two-thirds of voters. But the child care tax was placed on the San Francisco ballot by residents collecting signatures, and that initiative power is “one of the most precious rights of our democratic process” and must be interpreted broadly, the appeals court ruled.
The state Supreme Court in September declined to review a similar case, clearing the way for San Francisco to pay for homeless services with a citizen-proposed tax passed by a simple majority of voters. But the Howard Jarvis Taxpayers Association, which appealed both cases, isn’t backing down: It’s considering sponsoring yet another ballot measure that would require two-thirds of voters to approve any local tax increase.
CA BUSINESS PROFILE
California is about to lose a seat in the U.S. House of Representatives for the first time in history, and yes, some high-profile corporations have moved to Texas — but the Golden State is also home to nearly half of the 64 U.S. companies on Time magazine’s list of the 100 most influential companies in the world. The list, compiled for the first time and released Tuesday, indicates that reports of the much-discussed “California Exodus” may be exaggerated. Of the 30 California companies on the list, 23 are based in the Bay Area, six in the Los Angeles area and one in San Diego. They comprise big names like Apple, Facebook, Google, Twitter and Netflix.
HOME PRICES REACH RECORD HIGH AS HOUSING PRODUCTION CONTINUES TO DECLINE
The state median home price reached a record-high $759,990 in March 2021. This is in part due to a substantial shortfall of new housing units—CA approved only 102,800 new housing units in 2020, which was 8.8% less than 2019 and far short of the Governor’s goal of building 500,000 new units annually. CA and Sacramento need tools to incentivize new workforce housing. Read more.
SECRETARY WALSH AND VP HARRIS WILL LEAD EFFORT TO EMPOWER WORKERS
Secretary of Labor Marty Walsh joined Vice President Kamala Harris as vice-chair of the newly established White House Task Force on Worker Organization and Empowerment. Walsh affirmed his belief in every worker’s right to unionize or collectively bargain.
GOOD NEWS ON COVID-19 PROGRESS
- Thanks to continued gains in COVID-19 vaccinations and ongoing efforts to practice good health and safety protocols, a number of positive milestones were reached on the global pandemic stage:
- After a temporary pause, the FDA and CDC once again recommend the use of Johnson & Johnson (J&J) COVID-19 vaccine and CA officials announced the resumed use of the J&J shot. Data shows J&J COVID-19 vaccine’s benefits outweigh risks. Read more.
- Officials in the U.K. downgraded COVID from a pandemic to an endemic situation, where the virus is circulating at a low, largely controllable level.
- Dr. Fauci and other experts said the risk of catching the virus outside is very low, and the Biden Administration is getting ready to relax public health guidance on outdoor masks.
- European Union officials announced that fully vaccinated American tourists will be able to travel to the EU this summer. Read more.
CDC COVID-19 MASK UPDATES FOR FULLY VACCINATED PEOPLE
On April 27, CDC released an update on interim public health recommendations for fully vaccinated people. To be fully vaccinated, a person must wait two weeks after their second dose of either Pfizer or Moderna or one dose of the Johnson & Johnson vaccine. Updates show that fully vaccinated people can do most outdoor activities without a mask. Get vaccinated today!
Don’t forget that we have our Govt Affairs and PAC meeting Thursday, June 6th at 10 AM – See you there!
Best,
Damon R. Conklin
Director of Government Affairs
Sacramento Regional Builders Exchange
5370 Elvas Avenue ǀ Sacramento, CA 95819
Telephone: 916.442.8991 ǀ Cell: 916.290.3400
Email: dconklin@srbx.org ǀ www.srbx.org