The legislature is expected to adjourn on August 31, 2020. Due to the pandemic the legislature was forced to suspend its session a couple of times during the year, cut back on many committee hearings and focus on bills related to the public health crisis. Approximately 700 bills are still pending but many of these bill may not be heard due to the pandemic fallout. The leadership of both houses are now allowing members to vote remotely, which will make for a very interesting end of session. Please note that the Governor has the authority to call a "special session" and bring back the legislature to address the continued pandemic which he expected to do after the regular session ends.
Legislative Bills
SB 1159 & AB 196 - Workers Compensation - Coronavirus - Oppose. These bills would increase workers comp costs for employers. SB 1159 creates a "disputable" presumption, meaning that it is presumed that contraction of coronavirus is a workplace injury but may be controverted by other evidence. If enacted, the bill would be retroactive and apply from the time the Governor's similar Executive Order expired (July 6). AB 196 would go further and create a "conclusive" presumption that contraction of coronavirus by essential employees is a workplace injury without ability of employer to provide any evidence to the contrary. Status: SB 1159 & AB 196 pending.
AB 3216 - Employee leave and expanding Paid Sick Leave - Coronavirus - Oppose. This bill expands family care and medical leave and expands paid sick leave. California law now requires 24 hours or 3 days paid sick days for all employees. AB 3216 would, among other things, require all employers to provide employees with at least 56 hours or 7 days paid sick leave for any specified purpose related to a "state of emergency". Status: Pending in Senate.
AB 2999 - Employees: Bereavement leave - Concerns. This bill imposes on all employers a mandate to provide employees up to 10 days of unpaid bereavement leave for the death of a spouse, child, parent, sibling, grandparent or domestic partner. Status: Pending in Senate.
AB 1035 - COVID-19 Small Business Immunity from Civil Liability. This bill would exempt a small business with 25 or fewer employees from liability for an injury or illness to a person due to COVID-19 based on the claim that the person contracted COVID-19 while at the small business or due to actions of the small business. Pending in Senate.
AB 1552 -Business Interruption Insurance. This bill, with respect to policy of commercial insurance that provides for business interruption, would create a rebuttable presumption that COVID-19 was present on specified property and caused physical damage to the property which was a direct cause of the business interruption. Pending in Senate.
AB 2454 - Trusted Dealer BAR Certification Program. Concerns. This bill, among other things, would establish the "Trusted Dealer Certification" program. The program requires BAR to develop regulations to implement. The bill is not expected to move this year but Assembly member Low has indicated a desire to reintroduce next year.
SB 1129 - PAGA Reform. The Private Attorney's General Act (PAGA) authorizes aggrieved employees to file lawsuits against employers for labor code violations. This bill will make the following changes: 1) fixes exiting law that provides employers with limited "right to cure" for technical pay stub violations ; and 2) provides that a violation in which employees do not suffer any actual economic or physical harm, the total aggregate penalty is no more than $5,000. Status: This bill is not expected to move this year.
AB 1345 - Private Post Secondary Education. This bill is part of a bill package targeting bad actors in the Private Post Secondary Education. This bill needs to be amended to address concerns, otherwise they will negatively impact good performing schools including Universal Technical Institute (UTI). Status: This bill is not expected to move this year.
BAR Regulations
BAR Shop Locator Program.
BAR Cite and Fine Regulations. BAR is proposing to expand the "cite and fine" disciplinary process. Currently, cite and fine is used for smog violations and unlicensed activity. Expanding cite and fine authority to apply to all ARD's would provide BAR field representatives with the ability to issue citations and fines (up to $5,000 per violation) for violations. Concerns have been raised by the industry. Status: A presentation is expected at the next BAR Advisory Committee meeting on October 22, 2020.
New DAD Smog Check Equipment Requirements. BAR proposed regulations called "bio metrics" which, among other things, will require smog stations using the DAD to obtain additional equipment, namely: 1) an external web camera and 2) Palm vein reader (scanner). The estimated cost for this new equipment is approximately $500. These regulations have been delayed due to concerns raised by the DCA.
Ballot Measures
There are a dozen different ballot measure for voters to decide come this November. The key measure are highlighted below.
Prop 15. The "Split Roll" initiative. Oppose. This measure will amend Prop 13 by requiring that commercial and industrial properties be assessed and taxed at current market value, rather than original price. The initiative exempts commercial and industrial properties worth less than $3 million.
Prop 22. Referendum on AB 5. This measure would allow drivers for companies like Lyft, Uber and Door Dash to continue to be classified as independent contractors, not subject to minimum wage, unemployment taxes and worker's comp.
Prop 24. Consumer Privacy. California privacy laws will get tougher under this initiative which will, among other things, create a Privacy Protection Agency to enforce laws and increase penalties against businesses that commit violations.
