From your small-business advocacy team in Sacramento
On this Memorial Day, NFIB California joins its fellow Americans in somber remembrance and gratitude to the men and women who suited up for service to our nation and never made it back to enjoy the freedoms they secured for the rest of us.
Welcome to the May 29-June 2 edition of the NFIB California Main Street Minute.
The Legislature
- This Friday, June 2, is a big day for the Legislature. That’s the date when Assembly bills must pass out of that chamber and onto the Senate and, commensurately, when Senate bills must pass out of that chamber and onto the Assembly. Bills that aren’t are dead for the 2023-2024 session.
- The NFIB California lobbying team has narrowed to 47 from the 2,938 bills introduced in 2023 that potentially have the most impact on small business. Come close-of-business this Friday that will shrink even more, and the lobbying on those that remain intensifies.
- Already, the Assembly and Senate chambers have passed a few of the 47 onto the opposite legislative body. One of the 15 measures NFIB had on the positive side of the ledger was Assembly Bill 1355 (Valencia), which would authorize employers to supply individuals with electronic statements or materials relating to claims for benefits. It passed the Assembly and is now making its way through the Senate.
- More small-business-helpful bills, such as two retail theft measures, were killed faster than you can snatch a Louis Vuitton handbag and hop into a getaway car. This is, after all, one of the more anti-business legislatures in state history, challenged only by the previous session.
- On the negative side of the ledger, seven measures have made it out of their houses of origin and into the opposite chamber. They are:
— Assembly Bill 594 (Maienschein) would give greater power to public prosecutors in state labor code cases. It was passed to the Senate. NFIB’s letter of opposition can be read here.
— Assembly Bill 1213 (Ortega) deals with the denial of treatment by a physician that is subsequently overturned and how that would be calculated in disability payments. It was passed to the Senate.
— Senate Bill 71 (Umberg) would increase small claims court jurisdiction. It was passed to the Assembly.
— Senate Bill 365 (Wiener) deals with staying proceedings in arbitration cases. It was passed to the Assembly.
— Senate Bill 399 (Wahab) would prohibit an employer from requiring employees to attend an employer-sponsored meeting. It was passed to the Assembly.
— Senate Bill 723 (Durazo) would redefine ‘laid-off employee’ as a result of a public health directive, government shutdown order, lack of business, reduction in force, or other economic nondisciplinary reasons. NFIB’s letter of opposition can be read here. It was passed to the Assembly.
— Senate Bill 729 (Menjivar) would include coverage for the treatment of fertility and fertility services in health plans. NFIB’s letter of opposition can be read here. It was passed to the Assembly.
Upon Closer Look, the Budget Worsens
- Last week’s Main Street Minute had a link to the Legislative Analyst Office’s Initial Comments on the Governor’s May Revision of the state budget. Since that time, the LAO has twisted the rabbit ears left and right, adjusted the knobs a fraction here and there, and even given that black-and-white, Philco TV set of a spending plan a good whack on the sides. Result: picture quality worsened.
- In the LAO’s Multi-Year Budget Outlook report released last Tuesday (May 23), it reports, “there is less than a one-in-six chance the state can afford the May Revision spending level across the five-year period. This means that, if the Legislature adopts the Governor’s May Revision proposals, the state very likely will face more budget problems over the next few years.”
- The LAO recommends the Legislature reduce spending and use its reserves, and it cautions: “Using only one or the other would mean the Legislature would need to make more difficult decisions—like cuts to core programs or revenue increases—at least one year earlier.”
National
Highlights from NFIB Legislative Program Manager Caitlin Lanzara’s weekly report
- On May 25, NFIB Legal Center had two great wins in the U.S. Supreme Court cases in which NFIB participated. Here’s the latest update from the Legal Center:
— Sackett v. EPA – Court Narrows WOTUS Reach in Big Win for Property Owners
In the long-awaited WOTUS (Waters of the U.S.) case, Sackett v. EPA, the Supreme Court sided with Chantell and Michael Sackett to rein in the federal government’s WOTUS overreach. The decision significantly narrows the reach of the federal Clean Water Act and is a victory for farmers, ranchers, home builders, and contractors.
We’ll have more on what this means for EPA’s new WOTUS rule in a blog analysis we’ll share next week. The Sacketts bought their land in 2004 for $23,000 and have yet to build on their property and continue to live in a rental that they’ve had since they purchased the property 19 years ago. Read NFIB’s press release here.
— Tyler v. Hennepin County – Court Supports Grandmother’s Fifth Amendment Takings Claim
The Court unanimously sided with Geraldine Tyler, a 94-year-old grandmother who lost her home in foreclosure due to a $15,000 unpaid tax bill. NFIB argued in a brief it submitted on behalf of Ms. Tyler, that Minnesota’s handling of the property sale violated the Fifth Amendment.
The Supreme Court found that upon seizure of property for unpaid property taxes, the Takings Clause of the Fifth Amendment of the Constitution does not allow Minnesota (or other states with similar rules) to keep more than it is owed. Hennepin County had sold Ms. Tyler’s condo for $40,000, but instead of returning $25,000 (difference between the sales price and what she owed in back taxes), the county retained the balance.
In a unanimous 9-0 opinion, Chief Justice Roberts held that the government’s action likely violated the Constitution’s takings clause. Read NFIB’s press release here.
- We are waiting for decisions in two cases in which NFIB participated: Coinbase v. Bielski and Glacier NW v. Teamsters. The 2022-23 term ends June 30th.
- On May 20, NFIB released the NFIB 80th Anniversary video, an overview of NFIB’s history.
Next Main Street Minute June 5.
