Capitol Updates

Capitol Update, Oct. 19, 2021

Unfortunately one of CMTA’s “MFG Maker” bills AB 1036 (by Assm. Eduardo Garcia) was vetoed in the closing days of session but it came with insight into the Governor’s interest in advancing manufacturing.  The bill, a borne initiative from the pandemic, would have created two new loan programs for manufacturers during and after declarations of California emergencies for the purpose of attracting, retaining and expanding production facilities in the state.

Though the bill was vetoed, the Governor’s message came with a positive note about production and a general argument that the policy was good but that the many financing intricacies should be run through California’s budget oversight process, as opposed to the states' basic legislative dynamics.

"California's manufacturers stepped up to retool and utilize their facilities during the COVID-19 pandemic to help meet the State's needs. I am strongly supportive of California's manufacturing economy, a majority of which is fueled by small businesses," said Gov. Newsom in his message. He went on to conclude, "As this proposal would result in millions of dollars in ongoing costs and establish two new financing programs, it should be considered in the annual state budget process." 

Below are the final outcomes of all of CMTA’s priority legislation that made it to the Governor’s desk.  CMTA’s growing advocacy team worked extremely hard in 2021 to cover the many policy issues among the 120 legislative offices, more than 60 legislative committees, and within the Governor’s Administration to bring competitive policies for California’s manufacturers.  Relationships are being built on trust and compelling manufacturing data, setting us up for success in the second year of this legislative session and beyond.

Most importantly, because the entire CMTA team is so active inside and outside the Capitol, there are few voids left as to the economic benefits and tremendous opportunity created when manufacturers can grow production jobs here in California. That work is the foundation for competitive policies and votes for manufacturing growth in the future.

MANUFACTURING MAKER

• AB 1036 (E. Garcia): Vetoed by Governor -- Would secure funding mechanism for manufacturers during a declared state of emergency.

SUPPORT:

• AB 45 (Aguiar-Curry): Signed by the Governor -- Will allow hemp-derived CBD products in food, beverage and cosmetic products. 

OPPOSE:

• SB 62 (Durazo): Signed by Governor -- Sets unprecedented joint and several liability on businesses with no control over garment workers.
• AB 701 (Gonzalez): Signed by Governor -- Creates a never-ending presumption of retaliation based on fundamental misunderstandings of performance metrics
• SB 343 (Allen): Signed by Governor -- Creates a new definition of “recyclability” with ingredient and labeling criteria that have no relevance for packaging or products’ ability to be recycled. (You can read CMTA’s published op ed here)
• AB 616 (Stone): Vetoed by Governor -- Card check legislation that undermines the election process that is crucial for the agricultural workforce.
• SB 338 (Gonzalez):   Signed by Governor -- Expands violations that can cause port drayage companies to be placed on slow-moving a labor blacklist that extends joint liability for future violations.