Just a governor caught between labor and business

Presented by PhRMA: Your afternoon must-read briefing on politics and government in the Golden State
Sep 24, 2024 View in browser
 
POLITICO California Playbook PM

By Lindsey Holden

Presented by 

PhRMA

Tim Walz speaks at a podium.

Minnesota Gov. Tim Walz bragged about signing legislation banning mandatory anti-union meetings during an appearance at an American Federation of State, County and Municipal Employees convention last month. | Jae C. Hong/AP

NATIONALLY CAPTIVATING: Gov. Gavin Newsom is weighing a bill that would make it illegal to punish employees who don’t attend anti-union meetings — a pro-labor policy Democrats have been embracing on the national stage.

State Sen. Aisha Wahab’s legislation would prohibit employers from requiring workers’ presence at gatherings where they discuss political or religious beliefs. These so-called “captive audience” meetings are particularly concerning for labor organizers because managers can use them to dissuade employees from joining a union.

Since Minnesota Gov. Tim Walz became Vice President Kamala Harris’ running mate, the push to ban captive audience meetings has gotten a bigger platform. That’s because Walz — a former teacher who proudly touts his union bona fides — last year signed legislation prohibiting them in his home state.

“It’s always a benefit when you have a Democratic vice president nominee suggest that this is beneficial to the larger public,” Wahab told Playbook.

Walz made his first standalone appearance on the campaign trail at the American Federation of State, County and Municipal Employees convention in Los Angeles, where he bragged about getting rid of the gatherings.

“We banned those damn captive audience meetings for good in Minnesota,” he said.

Trade associations have challenged the ban in court. But Democrats’ embrace of these kinds of policies have been a boon for them when seeking labor union endorsements.

AFSCME and United Auto Workers quickly backed Harris after President Joe Biden dropped out of the presidential race. The West Coast Teamsters in California, Nevada, Hawaii and Guam recently broke with national leaders to endorse the vice president’s ticket, citing Harris’ and Walz’s support for worker protections, including Minnesota’s captive audience ban.

As with other labor proposals, Newsom seems to be pinned between labor and business groups, which oppose the bill on First Amendment grounds.

“Employers have the right to express their views and opinions regarding labor organizations,” opposition groups argued in a bill analysis.

Labor did not have a particularly successful legislative session. The California Labor Federation and other organizations were unable to get bills providing unemployment insurance for striking workers and creating new protections for self-checkout workers through the Capitol.

A Newsom veto on a captive audience ban would be a significant blow.

The governor has faced tough decisions on labor bills during the past two years. In 2022, he received national pressure from Biden to approve a United Farm Workers-backed bill allowing employees to join the union by signing cards. Newsom had signaled he would veto the legislation, but he later signed it.

Last year, the governor approved legislation setting a minimum wage for health care workers in one of his final big bill-signing decisions of the session.

Wahab said she remains optimistic about the captive audience bill, noting that several other states besides Minnesota have passed similar legislation. When asked whether she thinks the national labor conversation would play into the bill’s fate, she wasn’t sure it would affect Newsom’s decision-making.

Newsom has less than a week to make his choice about Wahab’s legislation — he must veto or sign it by Sept. 30.

IT’S TUESDAY AFTERNOON. This is California Playbook PM, a POLITICO newsletter that serves as an afternoon temperature check on California politics and a look at what our policy reporters are watching. Got tips or suggestions? Shoot an email to lholden@politico.com.

 

A message from PhRMA:

Over half of every dollar spent on medicines goes to middlemen, like PBMs and insurers, along with others. They control what medicines you can get and what you pay at the pharmacy. Middlemen are driving medicine costs in California, and you don’t know the half of it.

 
WHAT YOU NEED TO KNOW TODAY

A farmworker covers his face as he works at a flower farm in Santa Paula, California.

Gov. Gavin Newsom signed legislation to have the state look into operating migrant farmworker centers year-round instead of seasonally and to explore potentially loosening rules about who qualifies for such housing. | Marcio Jose Sanchez/AP

MIGRANT HOUSING MOVES: Newsom today signed a bill from Assemblymember Joaquin Arambula to have the state look into operating migrant farmworker centers year-round instead of seasonally and to explore potentially loosening rules about who qualifies for such housing.

Current rules require farmworkers using this housing to demonstrate they live 50 miles away for at least three months after they move out for the season. The restrictions and center closures often force families to leave after harvests. But an investigation by The Sacramento Bee last year found that most of the state’s farmworkers would prefer to remain settled in their communities, and requiring migrant families to move hurts children’s education.

California subsidizes units at 24 housing centers near agricultural work sites on the Central Coast, in the Central Valley and in Northern California, but they are open only seasonally and mostly remain vacant through winter months.

“We need larger housing,” Newsom said during a press conference after the bill signing. “We need family housing. We need no longer to have just seasonal housing. We need year-round permitted housing. So it's all those component parts.”

Arambula’s legislation requires the state to gather the feedback needed to update the definition of migrant farmworkers. It also pushes the state Department of Housing and Community Development to submit a report analyzing what it would take to open the migrant housing centers year-round and evaluate whether nearby excess state property could be used for permanent farmworker housing.

Additionally, the bill continues a policy exempting families with school-age children from the rule that requires migrant center residents move a certain distance away after leaving the housing for the season. It also requires center operators to screen residents for year-round housing options.

 

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ON THE BEATS

Assembly Speaker Anthony Rendon watches lawmakers debate a bill in the Assembly at the Capitol in Sacramento on June 1, 2023. (AP Photo/Rich Pedroncelli)

Gov. Gavin Newsom signed a bill from former Assembly Speaker Anthony Rendon cracking down on the laundry list of cleaning tasks that often come with stays at short-term vacation rentals. | AP

VACAY SLAY: Former Assembly Speaker Anthony Rendon notched a final legislative win before terming out after Newsom signed his bill today cracking down on the laundry list of cleaning tasks that often come with stays at short-term vacation rentals.

SB 2022, which goes into effect July 1 of next year, will require property owners and short-term lodging platforms to disclose cleaning tasks that guests must complete to avoid an additional fee or penalty. It came within a package of more than a dozen bills Newsom signed this morning related to consumer protections.

Rendon told us earlier this year that the bill was inspired by a recent stay of his own at a home near Tahoe, where he and his sister-in-law discovered a list of cleaning tasks after other members of their party had left and scrambled to complete them prior to check-out.

“Thanks to Governor Newsom’s signature of AB 2202, consumers staying at vacation rentals in California will know in advance what chores they’ll be asked to complete before they check out,” Rendon said in a statement to Playbook. “This commonsense measure will help consumers make informed choices moving forward.” — Lara Korte

SEEING GREEN: State revenue is rebounding after a rough budget year — at least so far. California took in $710 million more than projected last month and has generated $1.7 billion above forecasts since the fiscal year began in July, the Department of Finance announced today.

It’s still early. The first assessment of whether the state will face another deficit or a surplus during next year’s budget cycle isn’t expected until November, when the Legislative Analyst’s Office typically releases its annual Fall Fiscal Outlook. But even shreds of positive news may offer comfort to California Democrats, who had to address a cumulative $47 billion shortfall just months ago. — Blake Jones

 

A message from PhRMA:

There’s a long line of middlemen profiting when you get your medicines, and they are often part of the same company.

Over half of every dollar spent on medicines goes to middlemen like PBMs, insurers, and others. They control what medicines you can get and what you pay at the pharmacy.

Middlemen are driving medicine costs in California, and you don’t know the half of it. Get the whole story.

 
WHAT WE'RE READING TODAY

— A California firefighter charged with arson last week was formerly an inmate. (POLITICO)

— Kamala Harris said today she supports ending the Senate filibuster to pass abortion rights legislation. (Wisconsin Public Radio)

— California dairy farms are scrambling to curb a rising tide of bird flu outbreaks among cattle herds. (Los Angeles Times)

AROUND THE STATE

— San Francisco mayoral candidate Daniel Lurie boasts about his record on affordable housing. But Lurie’s critics say his past projects are riddled with safety issues. (San Francisco Standard)

Two climate activists were arrested outside Kamala Harris’ Brentwood home Monday during a Sunrise Movement protest demanding the vice president present a more detailed plan to combat climate change. (Los Angeles Times)

— Oakland Mayor Sheng Thao has ordered a crackdown on homeless encampments that the Oakland police officer’s union is calling a “political stunt” to boost her chances of surviving a recall election. (East Bay Times)

— compiled by Tyler Katzenberger

 

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