Special session coming to an end; More Prop. 32 on the John and Joe Show

Welcome to the October 14-18 edition of the NFIB California Main Street Minute from your small-business advocacy team in Sacramento.

The John and Joe Show

• Too bad the election ends November 5. Were it able to go on a bit longer, NFIB California State Director John Kabateck and pro-Proposition 32 backer Joe Sandberg might join the pantheon of famous entertainment and business duos like Abbott and Costello or Hewlett Packard.

• Both men were at it again last Thursday (October 10) on the AirTalk Show with Larry Mantle on LAist Radio, 93.3 FM in Pasadena, discussing the ballot measure to raise the state’s minimum-wage rate. Click here to hear their 18-minute exchange. Their appearance follows an October 1 debate on NPR-affiliate KQED in San Francisco where they jawboned for nearly an hour.

• Another radio station, KPFA FM in San Francisco, also has requested their appearance for a show tomorrow (October 15). LAist is part of the Southern California Public Radio group, KQED part of NPR chain, and KPFA part of the Pacifica Network, so the John and Joe Show is being heard throughout California.

• On the LAist website, Sanberg is described as an “anti-poverty advocate,” importantly distinguishing him from all the pro-poverty advocates out there. Poverty is a word Sanberg sprinkles on a lot of his remarks. But …

• “… evidence simply does not provide a strong case for using minimum wages to reduce poverty,” writes David Neumark, a national expert on the minimum wage, for the Federal Reserve Bank of San Francisco. “Similarly, recent research does not provide conclusive evidence that a higher minimum reduces government spending on welfare and other programs to support poor families, with the possible exception of food stamps.”

• Elsewhere in the media, Kabateck is quoted about Prop. 32 in a staff story by NBC7 in San Diego.

Special Session Update—One More Vote

• Today (Monday, October 14), it is expected that the Assembly will give final approval on Assembly Bill X2-1, concurring with Senate amendments made Friday (October 11) and then passing the measure on to Gov. Gavin Newsom for his certain signature (it’s his baby).

• “ABX2-1 requires oil refineries to maintain a minimum inventory level to decrease price spikes during peak driving months, and to monitor when refineries undergo either planned or unplanned maintenance,” reports the Associated Press via ABC10 in Sacramento.

— “The bill would require the California Energy Commission, in collaboration with an advisory committee, to develop the minimum requirement standards. They would also be in charge of overseeing its implementation. Refineries that do not comply with the proposed standards could have civil penalties.

— “Senate Republicans tried to pass another bill at the special session that would have suspended the state’s gas tax, but the measure was not brought up for a vote. ‘I’m deeply disappointed in the legislature’s decision to continue ignoring real solutions for lowering gas prices. It is our legislative duty to support struggling families, and one critical step we can take is to provide immediate relief from the burdensome state excise tax,’ said Rosilicie Ochoa-Bogh in a statement.”

• More comment can be read in the AP story. Will greater state involvement in the market forces of a major industry alleviate or exacerbate gas prices? NFIB members no doubt have a sneaking suspicion as to the answer.

• Energy prices are no small matter to small businesses, which listed them as their sixth biggest worry in NFIB’s latest Small Business Problems & Priorities report, a 13-place jump from their 2020 ranking of 19th. The report ranks a total of 75 issues.

Last Word on the 2023-2024 Session

• There were more than 5,500 bills in the last, two-year session of the California State Legislature, 2023-2024. NFIB narrowed to 106 the ones needing the higher concentration of lobbying for or against.

• In a Legislature completely controlled by one party and within that one party, under sway by its progressive faction, the odds were stacked against any business group getting what it wanted, which most of the time was wanting something defeated.

• Still, NFIB working with its many coalition partners put up a united front that was able to halt some very bad legislation and eek out a few victories. Check out NFIB’s Top 14 Victories from the 2023-2024 Session of the California State Legislature for a few examples.

Calendar

• October 21, Last day to register to vote
• November 5, General Election Day
• November 30, National Shop Small Business Saturday Campaign
• December 2, a new Legislature for the 2025-2026 session convenes for organizational purposes and to collect a per diem before adjourning for the rest of the month.
• January 6, the 2025-2026 session of the California State Legislature opens for regular business.

National

Highlights from NFIB Federal Government Relations Principal Josselin Castillo’s weekly report

• The U.S. District Court for the Eastern District of Texas held its first hearing in the case Texas Top Cop Shop, Inc., et al. v. Garland, et al. NFIB filed a lawsuit challenging the Corporate Transparency Act (CTA) and the legality of the beneficial ownership reporting requirements for small businesses. NFIB urged the U.S. District Court to block the burdensome Beneficial Ownership Requirements for Small Businesses.

• NFIB sent a letter of opposition to the U.S. Senate opposing S. 5208, the Warehouse Worker Protection Act. Legislation that would increase costs, onerous mandates, and more regulatory burdens for small businesses. Click here for more information.

• NFIB filed an amicus brief in the Richard v. Lilly legal case regarding collective action lawsuits and the Fair Labor Standards Act (FLSA).

This Main Street Minute can also be read on the NFIB California webpage here. Next Main Street Minute October 21.