Welcome to the April 20-24 edition of the Main Street Minute from your small-business-advocacy team in Sacramento.

The Legislature

Like the accident up ahead that is finally clearing and allowing stalled traffic to start moving again, the Legislature last week started voting on some measures, two of which were not at all helpful to NFIB’s agenda.

Last Tuesday (April 14), the Senate Committee on Governmental Organization voted 4 to 1 against Sen. Tony Strickland’s bill, SB 885, prohibiting a state agency from taking final action to adopt a major regulation until the Legislature approves. Strickland asked for and received reconsideration.

Also getting a cold shoulder was Assembly Bill 2336, which would exclude from gross income the first $25,000 of overtime pay. The Assembly’s Revenue and Taxation Committee moved Assemblymember Alexandra Macedo’s proposal to the suspense file, that great abyss where bills either die a quite death or are given a second chance to continue along the process—either way without a recorded vote.

NFIB is working to shift into drive two bills, one by a Democrat, the other by a Republican, that have been idling in park for too long. One is Assembly Bill 649 by Josh Lowenthal, which would establish a Small Business Right to Cure program, and the other is Senate Bill 84 by Roger Niello that would allow 120 days to correct a violation.

Now that the news of the lurid pasts of Cesar Chavez and Eric Swallwell is subsiding, NFIB expects Assembly Bill 1900, “Guaranteed Health Care for All,” to start commanding the lion’s share of media attention. The powers-that-be have still not assigned AB 1900 to a committee, but that will change shortly.

How Dare You Want to Make Money

Last month the Washington State Legislature passed, and Gov. Bob Ferguson signed, a so-called Millionaire Tax into law. NFIB is part of a lawsuit challenging it.

“All throughout the bill’s legislative journey, NFIB took great pains to point out that business earnings are not the same as take-home pay and that 85% of small businesses are organized as pass-through entities for federal tax purposes and report their business earnings and expenses on their personal income tax forms,” according to an NFIB news release.

Proponents of a California billionaire’s tax seeking a one-time 5% tax on the net worth of individuals with over $1 billion in assets have until June 24 to get 874,641 valid signatures for placement on the November General Election ballot. As of the end of February, they were 25% there.

Already on the ballot in San Francisco is Measure D, which would levy the top executive pay tax on executives who earn more than 100 times the median compensation paid to their employees.

And, nowhere on TV are you safe from a Tom Steyer ad about his feeling guilty for making money and being successful.

NFIB California News Release

April 15—NFIB Report Details Benefits of 20% Small Business Tax Deduction Becoming Permanent in California

From Nielsen Merksamer

Last week’s announcements

— April 14, the California Air Resources Board released 15-day modifications to two significant rulemakings: 1) The Mandatory Green House Gas Emissions Reporting proposal and 2) the Cap-and-Invest proposal. Comments are due April 29 and the Board is expected to discuss and vote on both proposals at its May 28 meeting. The Fresno Bee reported on the recent changes to the cap-and-invest regulations.

This week’s significant meetings

— CalRecycle Monthly Meeting – April 21 10:00 am (Sacramento & virtual)
The agenda includes announcements on SB 54 implementation and upcoming battery recycling and paint stewardship workshops; consideration of several grant and loan applications; and discussion on the beverage container recycling program, several product stewardship programs, materials management and local assistance programs, and solid waste and tire facility applications.

— Health Care Affordability Board Meeting – April 22 10:00 am (Sacramento & virtual)
The agenda includes discussion on the Cost Market Impact Review Program and the recent review of Res-Care, Inc., spending target data submission enforcement, spending target enforcement and penalties, and Fiscal Year 2022/23 inpatient and outpatient hospital price trends.

— California Air Resources Board “April Study Session” – April 23 11:00 am & April 24 9:30 am (Marshall, CA in-person only)
The agenda includes an informational update on California’s carbon capture landscape (Apr. 23), addressing air toxics (Apr. 23), and the next generation of clean transportation incentives (Apr.24).

Calendar

— May 4 & 5: Small Business Leadership Day at the Capitol

— May 4: County election officials must begin or have begun mailing ballots to voters by this date

— May 18: Last day to register for the June 2 Primary Election

— May 29: Last day for bills to pass their house of origin

— June 2: Primary Election for eight state constitutional offices, four Board of Equalization seats, all 52 congressional seats, all 80 assembly seats, and 20 (even-numbered districts) state senate seats. Governor’s proclamation here.

— June 15: Deadline (by midnight) to pass new state budget

— July 2-August 3: Legislature on Summer Recess

— August 31: Legislature adjourns its 2026 session

— September 30: Last day for governor to sign or veto bills sent to him.

National

Highlights from Federal Government Relations Principal Louis Bertolotti’s weekly report

— NFIB issued a letter of support for the RED Tape Act, which will cut down on duplicative environmental reviews during the permitting process. The bill passed the House 222-205.

— The Washington Times published an op-ed from NFIB President Brad Close highlighting the importance of the 20% Small Business Deduction: “Communities across the country will benefit from this provision, as small business owners create local jobs, purchase equipment and vehicle from other local businesses, and continue their support of vital community activities such as sports leagues, school activities and community events.”

— Principal of Federal Government Relations Tyler Dever spoke with the Daily Caller: “Small businesses are being squeezed by the rising cost of health care, forcing small business owners into an impossible dilemma.”

Next Main Street Minute: April 27. All Main Street Minutes can be found on the NFIB website here. Pull down the California tab in the upper-right-hand corner.