Special session of the Legislature starts this week. Governor signs bill on retail theft
Welcome to the September 16-20 edition of the NFIB California Main Street Minute from your small-business advocacy team in Sacramento.
Special Session Starts This Week
- Having adjourned its regular session August 31, the State Assembly starts its special session this week with informational hearings on gas prices by the newly formed Petroleum and Gasoline Supply Committee on Wednesday (September 18) and Thursday (September 19).
- A hearing on Assembly Bill x2-1, a measure codifying Gov. Gavin Newsom’s call to punish oil companies for what he views as their price gouging, will be held September 26, followed by a full Assembly floor session on October 1, according to a schedule put out by Assembly Speaker Robert Rivas.
- Just two sentences in AB x2-1 pretty much encapsulates what it seeks to do: “The bill would authorize the Energy Commission, by regulation, to develop and impose requirements for refiners operating in the state to maintain minimum levels of inventories of refined transportation fuels meeting California specifications, including any feedstocks and blending components, as specified. This bill would impose an administrative civil penalty on a refiner or person who fails to comply with regulations adopted pursuant to the above-described authority and would authorize the Energy Commission to seek any form of injunctive or remedial relief to enforce compliance with those regulations, as provided.”
- There are a couple of NFIB-endorsed Assembly members on the 19-member Petroleum and Gasoline Supply Committee, so small businesses will have some voice, although small business owners by nature can’t help getting the heebie-jeebies whenever government wants to jump in and solve something.
- And what about the State Senate?
- After saying in a news release, “We won’t be convening a special session this fall, but we look forward to continuing conversations with the Governor and Speaker about this critical issue in the days and weeks to come,” Subsequently, Senate President Mike McGuire was reported to be more conciliatory, holding out the possibility of reconvening his members for a brief return to approve or vote down whatever the Assembly finally comes up with.
- Gas prices are no small matter for small businesses. According to NFIB’s latest Small Business Problems & Priorities report, issued August 14, the Cost of Natural Gas, Propane, Gasoline, Diesel, Fuel Oil is the 6th most severe problem cited by small business owners. Nearly one-in-four report it as critical. The 6th rank is a 13-rank jump from its 19th place in the 2020 report.
Finishing Up the Regular Session
- Governor Newsom has two weeks left to sign or veto (or let become law without his signature) bills dumped on his desk by the Legislature.
- Last week’s Main Street Minute highlighted four of the 15 measures NFIB is asking the governor to reject (12) or approve (3). Here’s the latest as of Friday, September 13.
— The governor signed NFIB-supported Assembly Bill 1960 into law. Originally sponsored by Assemblywoman Esmeralda Soria, it was later taken over by Assembly Speaker Robert Rivas when she asked that her name be removed. The new law creates sentencing enhancements for taking, damaging, or destroying property in the commission of a felony.
— That leaves only Senate Bill 1381 as the one remaining measure NFIB is supporting among the legislation still awaiting the governor’s decision. It’s aimed at fentanyl suppliers and pushers. NFIB has asked for a veto on 13 other bills.
- Two of the higher-priority bills NFIB has asked for a veto of are:
— Assembly Bill 2499—“California’s businesses have been subject to nine new leaves in just the last four years. Some of those leaves address the same circumstances addressed in this bill. While one more leave in isolation may not seem burdensome, it is important to view this proposal as part of the broader set of mandates to which employers are subject, especially our smallest employers. We must continue to oppose the expansion of this 12-week leave.”
— Senate Bill 399—“SB 399’s overbroad provisions and narrow exemptions effectively prohibit any discussion or communications regarding political matters by an employer and expose companies of all sizes to liability for hosting or supporting political events. Its broad scope is why Democratic Governor Jared Polis of Colorado vetoed a nearly identical bill in May 2024, noting that the overbroad language of the law would put employers in the ‘impossible position’ of determining whether any speech could be deemed ‘political,’ and the exemptions were so narrow that they were ‘unworkable.’”
What You Do When You Get a Big, Fat Raise
- Why, of course, ask for more.
- “In person and over Zoom, franchise owners packed a meeting of the state’s new fast food council on Wednesday [September 11], urging it not to adopt any further increases in the industry’s minimum wage after the April hike from $16 to $20 for limited-service restaurants — a 25% increase. Fast food workers are seeking an inflationary adjustment for 2025,” reported CalMatters.
- “The restaurant owners said since the wage hike, they’ve cut back hours, slowed growth and reduced certain benefits. Price increases, they said, have also driven a decrease in sales. Several were accompanied by managers and employees who also spoke against further wage increases.
- “Many of the restaurateurs at Wednesday’s hearing said they were immigrants, with some having arrived in the U.S. as refugees. Some had started out themselves as fast food workers and praised the franchise model as a bridge to minority business ownership.”
Pigskin Payoff
- Speaking of salaries, “The state’s highest-paid public employee earned an unprecedented $7.1 million last year, new data show,” reported The Sacramento Bee.
- “Former UCLA Football Coach Chip Kelly earned more in 2023 than the combined pay of all 10 chancellors in the University of California system. His pay last year was roughly 30 times the salary of California’s governor.”
Calendar
- August 18-October 1 State Assembly meets in special session on gas prices
- September 30 deadline for governor to sign bills into law
- October 7 County clerks begin mailing ballots to all Californians
- October 21 Last day to register to vote
- November 5, General Election Day
- November 30 National Shop Small Business Saturday Campaign
National
Highlights from NFIB Federal Government Relations Principal Josselin Castillo’s weekly report
- Vice President of Federal Government Relations Jeff Brabant testified September 12 before the U.S. Senate Committee on Finance on why Congress should make the 20% Small Business Deduction permanent.
- Also on September 12, NFIB released two new impactful reports regarding the 20% Small Business Tax Deduction, which is scheduled to expire at the end of next year.
- The House Committee on Small Business advanced the Prove It Act. NFIB led a coalition of 50 trade associations in sending a letter ahead of this markup. The bill now awaits floor action.
— “… the Committee has prioritized several legislative proposals to strengthen the RFA [Regulatory Flexibility Act]. One proposal, the bipartisan Prove It Act, would increase small business input in the regulatory process and ensure agencies are fully accounting for the impact of regulations on small businesses. Other proposals would increase the transparency and accountability of the regulatory process for small businesses.”
A Look Ahead
- September 18-19 NFIB Guardian Awards Ceremony.
- September 24-25 NFIB Small Business Tax Deduction Summit.
This Main Street Minute can also be read on the NFIB California webpage here. Next Main Street Minute September 23.
