Legislation that failed to pass the house in which it was introduced last year had one last chance this month to continue moving.
The following California Chamber of Commerce-opposed bills missed that last chance.
Cost Drivers
Failing to pass the Senate was SB 310 (Wiener; D-San Francisco) Expands Private Right of Action for Penalties. This Cost Driver bill would have created a new private right of action for wage and hour penalties that would have been manipulated by trial attorneys, undermining the 2024 Private Attorneys General Act (PAGA) reform, which sought to reduce avenues for litigation abuse.
The Fix PAGA coalition that fought to craft the PAGA agreement raised objections to SB 310 as the author was attempting to revive his proposal and stopped the bill from advancing.
Held in the Assembly Appropriations Committee Suspense File on January 22 were the following Cost Drivers.
• AB 298 (Bonta; D-Alameda) Prohibits Cost Sharing. Would have increased premiums for California’s employers and employees by restricting insurers from imposing a deductible, coinsurance, or copayment for in-network health care services provided to an individual under 21 years of age enrolled in a large group plan.
Although AB 298 aimed to alleviate cost burdens for families with children, it overlooked the fundamental economic principle that eliminating cost-sharing mechanisms will be offset by increased monthly premiums.
The increase would have had a disproportionate impact on California’s working families, who already face escalating healthcare costs that surpass the national average, as documented by the California Health Care Foundation.
• AB 405 (Addis; D-Morro Bay) New Climate Disclosure. Would have imposed duplicative, costly and misaligned regulatory requirements on apparel companies that would have increased clothing prices and worsened affordability for Californians, all without delivering meaningful sustainability improvements to global supply chain.
Held earlier in the month in the Assembly Revenue and Taxation Committee was the following Cost Driver.
• AB 796 (Lowenthal; D-Long Beach) Tax on Digital Advertising Revenue. Would have implemented a new tax on digital ads. In addition to increasing costs for businesses and in turn consumers, the bill is likely unconstitutional.
CalChamber Opposed Bills
• AB 1313 (Papan; D-San Mateo) Stormwater Permits. Would have required commercial, industrial, and institutional facilities to obtain a new, unworkable stormwater permit with crushing compliance costs and a private right of action. Businesses, schools, hospitals, community centers, places of worship and a host of other entities across the state could have faced huge new costs if AB 1313 had moved through the legislative process and become law. Failed to move off Assembly Inactive File where the author had placed it last year.
• AB 1157 (Kalra; D-San Jose) Statewide Rent Control. Would have imposed permanent statewide rent control on rental housing, including single-family homes, accessory dwelling units (ADUs), and individually owned condominiums, by capping annual rent increases at 2% plus the change in the cost of living, or 5%, whichever is lower.
AB 1157 failed to pass the 12-member Assembly Judiciary Committee on January 13 on a vote of 4-3 with five committee members not voting.
Concerns raised by opponents and some committee members included the possibility that the legislation’s restraints would worsen the state’s housing crisis and make it difficult for rental property owners to improve the rentals or keep them on the market. Also noted was that voters have repeatedly rejected attempts to impose rent control statewide.
