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Chamber Legislative Report


(Carter) Colonel Allensworth State Historic Park: proximity to animal feeding operations.

Existing law provides for a state park system of which the Colonel Allensworth State Historic Park in Tulare County is a unit. This bill would prohibit a person from having an animal feeding operation, or a concentrated animal feeding operation, within 2.5 miles of the boundary of Colonel Allensworth State Historic Park in Tulare County. This prohibition would not apply to an existing animal feeding operation or concentrated animal feeding operation project site in Tulare County. This bill contains other related provisions.
Status:01/14/2008-To inactive file on motion of Assembly Member Bass.


(Coto) Foundations: diversity.

Existing law regulates the administration of nonprofit corporations and trusts that are deemed to be private foundations, as defined under federal tax law, and requires these private foundations to distribute their income for each taxable year so as not to subject the private foundation or its property to specified federal tax requirements. Existing law requires these entities to prepare specified annual reports. This bill would require a private, corporate, or public operating foundation with assets over $250,000,000 to collect specified data pertaining to its governance and domestic grantmaking. The bill would require this information to include the racial and gender composition of the board of directors and staff of the foundation ; if applicable, the number of grants and grant dollars awarded to organizations specifically serving ethnic minority communities , lesbian, gay, bisexual, and transgender communities, and other underrepresented communities; the number of grants and grant dollars awarded to organizations where 50% or more of the board members or staff are ethnic minorities ; and the number of grants and grant dollars awarded to predominantly low-income communities. The bill would require a foundation to disclose this information via its Internet Web site, if available, and to include this information in its annual report, as specified.
Status: 02/12/2008-From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B., P. & E.D.


(Hernandez) Public contracts: Sudan.

The State Contract Act governs contracting between state agencies and private contractors, and sets forth requirements for the procurement of materials, supplies, equipment, and services by state agencies. Existing law sets out the various responsibilities of the Department of General Services, and other state agencies in overseeing and implementing state contracting procedures and policies. This bill would require the Department of General Services to prepare, as specified, a list of scrutinized companies, as defined, that have specified ties to the government of Sudan, as defined, with which the state has a contract or could possibly have a contract with in the future and to present that list to the Legislature by August 1, 2008. This bill would prohibit a state agency from entering into a contract, as specified, of $100,000 or more with a company that is on the Department of General Services's list of scrutinized companies that have ties to the government of Sudan. The bill also would require each prospective bidder for any state contract to provide a statement under penalty of perjury disclosing all business operations between the bidder and the government of Sudan. This bill contains other related provisions and other existing laws.
Status: 08/30/2007-In committee: Set, first hearing. Held under submission.


(Arambula) Goods movement: small businesses and microenterprises.

Existing law requires the Department of Transportation to prepare the California Transportation Plan, which contains policy, strategies, and recommendations elements. Existing law requires the Secretary of Labor and Workforce Development to lead the preparation of a biennial California Economic Development Strategic Plan with various elements relative to promoting economic development. Existing law requires $2 billion of the funds made available pursuant to the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006, approved by the voters at the November 7, 2006, statewide general election, to be allocated by the California Transportation Commission for trade corridor improvement projects in consultation with the Goods Movement Action Plan prepared by the Business, Transportation and Housing Agency and the California Environmental Protection Agency. This bill would require the California Small Business Board, within the Business, Transportation and Housing Agency, in support of the preparation of the California Economic Development Strategic Plan and of the California Transportation Plan, and in collaboration with the Labor and Workforce Development Agency and the Department of Food and Agriculture, to perform an assessment of shipping needs and practices of small businesses and microenterprises, and to prepare a report to be submitted to the Governor and the Legislature by January 1, 2009, containing various assessments and recommendations in that regard. The bill would require updates to the California Transportation Plan to take into account these findings and recommendations. The bill would also require the Secretary of Labor and Workforce Development, in leading the preparation of the California Economic Development Strategic Plan, to consider incorporating in the plan those findings and recommendations, among others.
Status: 08/30/2007-To inactive file on motion of Senator Perata.


(Hayashi) Child care resource and referral programs: funding.

Existing law requires state agencies, and encourages the University of California, to establish statewide participation goals, as specified, for small businesses or microbusinesses, minority business enterprises, women business enterprises, and disabled veteran business enterprises in contracts for construction, the provision of information technology, the procurement of goods, or the delivery of services. Existing law requires specified state agencies, including the Department of General Services, to make available a report on specified contracting activity, including information on the level of participation in statewide contracting by disabled veteran business enterprises, small businesses or microbusinesses, and, if available, business enterprises categorized by race, ethnicity, and gender of the owner, as provided. This bill would require the Trustees of the California State University and the Regents of the University of California to submit a report to the Department of General Services that contains specified information on contracting activity, including information on the level of participation in statewide contracting by disabled veteran business enterprises, small businesses or microbusinesses, and, if available, business enterprises categorized by race, ethnicity, and gender of the owner, as provided.
Status: 01/07/2008-To inactive file on motion of Senator Ridley-Thomas.


(Arambula) California Air Quality Zones.

Existing law establishes specified economic development zones in the state and various tax and other incentives for making financial investments in those zones. This bill would authorize the State Air Resources Board , on or before January 1, 2017, to designate California Air Quality Zones in the state based on specified air quality and other criteria.
Status: 08/30/2007-In committee: Set, first hearing. Held under submission.


(Committee on Jobs, Economic Development, and the E) Enterprise zones: reports.

Existing law requires a geographically targeted economic development area (G-TEDA), to report to the Department of Housing and Community Development by October 1, 2008, and every 2 years thereafter, on progress made towards its existing goals and objectives and plans for the following 2-year period. This bill would make technical, nonsubstantive corrections to this provision.
Status: 07/16/2007-From Consent Calendar. To inactive file on motion of Senator Lowenthal.


(Ruskin) Public contracts: small businesses and disabled veteran business enterprises.

Existing law requires state agencies to give small businesses and microbusinesses a 5% preference in contracts for construction, the procurement of goods, or the delivery of services. This bill would provide that any bundled procurement contract or strategically sourced procurement contract over $5,000,000 that includes a small business or microbusiness preference must be reviewed by the State Auditor prior to the letting of the contract to determine whether a commercially useful function is being performed by a small business or microbusiness. The bill would require the State Auditor to annually report their findings to the Legislature. This bill contains other related provisions and other existing laws.
Status: 04/21/2008-Re-referred to Com. on APPR. by unanimous consent.


(Benoit) Employment: alternative workweek schedules: small business option.

Existing law, with certain exceptions, establishes 8 hours as a day's work and a 40-hour workweek, and requires payment of prescribed overtime compensation for additional hours worked. Existing law authorizes the adoption by 2/3 of employees in a work unit of alternative workweek schedules providing for workdays no longer than 10 hours within a 40-hour workweek. This bill would authorize an individual employee employed by an employer with 25 or fewer employees to request a work schedule of up to 10 hours per day within a 40-hour workweek, and would authorize an employer to implement this schedule without any obligation to pay overtime compensation for hours worked as part of the schedule. The employee would be required to request the specific schedule desired in writing and if the employer agrees to that schedule, the employer and the employee would be required to execute a written agreement memorializing that schedule. The employee or employer would be authorized to terminate the agreement with written notice at least 7 days in advance of the desired termination date. The employer would be required to maintain the agreement as a record for 3 years after the termination of the agreement. This bill contains other related provisions.
Status: 04/09/2008-In committee: Set first hearing. Failed passage. Reconsideration granted.


(Price) Economic development: small business development centers.

Existing law establishes the California Economic Development Fund in the State Treasury to receive economic development funds and loan repayment and grant proceeds and authorizes the Secretary of Business, Transportation and Housing, upon appropriation by the Legislature, to expend the fund's revenue to provide matching funds for economic development purposes. This bill would establish the California Small Business Development Center Program in which a small business center overseen by an administrative lead center, defined as the entity contracting with the federal Small Business Administration, would assist the development and operation of small businesses. The bill would establish the SBA Account within the California Economic Development Fund and, upon appropriation by the Legislature, would authorize the This bill contains other existing laws.
Status: 04/23/2008-Read second time and amended.


(Tran) International trade offices.

Existing law prohibits the Secretary of Business, Transportation and Housing from establishing an international trade and investment office without preparing an international trade and investment strategy that has been authorized by the Legislature. Under existing law, the secretary may accept private sector moneys to promote international trade and investment, which are deposited into the Economic Development and Trade Promotion Account in the Special Deposit Fund in the State Treasury and continuously appropriated to the secretary. Existing law authorizes moneys in the account to be allocated to an international trade and investment office. This bill notwithstanding any other provision of law, would require the Secretary of Business, Transportation and Housing, until January 1, 2014 , to establish international trade and investment offices, as specified, using only funds from the Economic Development and Trade Promotion Account for those purposes.
Status: 04/08/2008-In committee: Set, first hearing. Hearing canceled at the request of author.


(Tran) Economic development: international trade.

Existing law requires the Secretary of Business, Transportation and Housing to develop an international trade and investment policy and authorizes the agency to engage in activities related to trade or foreign investment. This bill would establish the volunteer position of State Trade Representative of California, appointed by the Governor, to promote foreign investment in, and trade with, this state and would require the Undersecretary for International Trade in the Business, Transportation and Housing Agency to administer the position. This bill would repeal these provisions on January 1, 2014, unless a later enacted statute, that is enacted before January 1, 2014, deletes or extends that date.
Status: 04/08/2008-In committee: Set, first hearing. Hearing canceled at the request of author.


(Tran) International trade and investment.

Existing law prohibits the Secretary of Business Transportation and Housing from establishing any international trade and investment office, unless certain conditions are met. This bill would make a technical, nonsubstantive change to these provisions.
Status: 02/22/2008-From printer. May be heard in committee March 23.


(Fuentes) Census.

Existing law specifies various duties of government agencies in connection with conducting the decennial census and maintaining population data. This bill would require the Governor to appoint a task force to make recommendations on how to maximize the number of Californians counted in the 2010 census and to implement a census outreach program.
Status: 03/05/2008-Referred to Com. on G.O.


(Fuentes) California Small Business Board.

The California Small Business Financial Development Corporation Law authorizes the formation of small business financial development corporations to grant loans or guarantees for the purpose of stimulating small business development. Under existing law, the California Small Business Board is required to advise the Governor and others about, among other things, business innovation and expansion and venture capital. This bill would require the board to advise the Governor and others about innovative financial products. The bill would also require the board to examine new financial products that could be derived through the innovative use of existing state resources and would require the board to prepare a written report on its examination on or before October 1, 2009.
Status: 04/23/2008-From APPR.: To APPR. SUSPENSE FILE.


(Price) California Green Jobs Act of 2008: job training: green jobs.

Existing law contains various programs for job training and employment investment. This bill would set forth legislative findings and declarations relating to green jobs, as defined, and would enact the California Green Jobs Act requiring the Employment Development Department to establish green job training programs, as provided, and a statewide database for identifying and tracking new jobs and the skills needed to expand the renewable energy and energy-efficient industries.
Status: 04/03/2008-In committee: Set, first hearing. Hearing canceled at the request of author.


(Arambula) Economic development: emerging domestic market data consortium.

Existing law establishes various programs to assist businesses in this state and to promote the economic development of the state. This bill would, until January 1, 2015, create the Emerging Domestic Market Data Consortium to collect data and make it available to promote the development of emerging domestic markets, as defined. The bill would authorize the Secretary of Business, Transportation and Housing to establish the consortium, after determining sufficient funds are available to implement the consortium, and would authorize a nonprofit corporation to implement and operate the consortium. The bill would require the Secretary of Business, Transportation and Housing to form an emerging domestic market advisory group, consisting of public pension fund representatives, to assist the consortium's development. The bill would require the secretary to administer the advisory group for 12 months after its formation and would subsequently transfer this function to the consortium. The bill would authorize the consortium to apply for foundation grants and for other funding and would authorize the Director of Finance to accept monetary gifts, which would be deposited into the California Economic Development Fund, to establish and operate the consortium.
Status: 04/22/2008-Re-referred to Com. on APPR.


(Portantino) Economic development.

Existing law establishes the Manufacturing Technology Program within the Business, Transportation and Housing Agency to award grants and technical assistance to nonprofit organizations and public agencies to assist manufacturing technology. Under existing law, government and private economic development funds are deposited into the California Economic Development Fund, and upon appropriation by the Legislature, these funds may be expended by the Secretary of Business, Transportation and Housing for economic development purposes. This bill would delete the Manufacturing Technology Program provisions and would instead require the Secretary of Business, Transportation and Housing to serve as a facilitator of high technology businesses, developers, and investors ; to complete a study and submit it to the Legislature on or before July 1, 2009, on the competitiveness of California's businesses in technology and innovation ; and to prepare a strategy for technology and innovation and submit it to the Legislature on or before February 1, 2010. The bill would require the Legislature to hold a hearing on the strategy, and would require the secretary to report annually on the ways in which the Governor's proposed budget relates to the strategy and to periodically update the study and strategy. The bill would require the secretary to develop a state innovation and technology policy based on the study and strategy submitted to the Legislature. The bill would require the secretary to notify the Legislature if he or she is unable to complete the study or strategy by the requisite due date because of a lack of funding and to estimate a date by which the study or strategy will be completed. The bill would authorize the Director of Finance to accept monetary gifts for the cost of developing and updating the study, strategy, and policy, which would be deposited in the California Economic Development Fund, and would require the director to record each gift and to file a copy of the record with the Business, Transportation and Housing Agency. This bill contains other related provisions and other existing laws.
Status: 04/23/2008-Read second time and amended.


(Price) Public contracts: Small Business Procurement and Contract Act.

The Small Business Procurement and Contract Act permits a state agency to award a contract for goods, services, or information technology with a value of between $5,000 and $100,000 to a certified small business, including a microbusiness and a disabled veteran business enterprise, without complying with specified competitive bidding requirements. This bill would increase the maximum amount of the contract from $100,000 to $250,000. This bill contains other related provisions and other existing laws.
Status: 04/23/2008-From APPR.: To APPR. SUSPENSE FILE.


(Mendoza) Small business and procurement.

Under the Small Business Procurement and Contract Act, a state agency is authorized to award a contract for construction, including the erection, construction, alteration, repair, or improvement of any state structure, building, road, or other state improvement of any kind that has an estimated value of greater than $5,000 , but less than a specified cost limit, to a certified small business, including a microbusiness, or to a disabled veteran business enterprise, as long as the agency obtains written bid submittals from 2 or more certified small businesses, including microbusinesses, or from 2 or more disabled veteran business enterprises. For purposes of the act, "small business" and "microbusiness" are defined, among other things, as including a manufacturer with a maximum number of employees. "Manufacturer" is defined as a business that is primarily engaged in the chemical or mechanical transformation of raw materials or processed substances into new products and is within a specified classification of the Standard Industrial Classification (SIC) Manual . This bill would replace the reference to a manufacturer within that pa rticular classification of the SIC Manual with a requirement that a manufacturer falls within a specified classification of the North American Industry Classification System .
Status: 04/23/2008-Do pass.


(De La Torre) State contracting: small business preference.

The Small Business Procurement and Contract Act requires the directors of the Department of General Services and other state agencies entering into contracts for the provision of goods, information technology, and services to the state, and in the construction of state facilities, to provide for a preference up to and including 5% for any bid to small businesses and microbusinesses, or nonsmall businesses that provide for small business and microbusiness subcontractor participation, in solicitations where an award is to be made to the lowest responsible bidder meeting specifications. This bill would increase the maximum percentage of the bidding preference afforded by the directors of the Department of General Services and other state agencies to small businesses and microbusinesses, or nonsmall businesses that provide for small business and microbusiness subcontractor participation from 5% to 10%.
Status: 04/23/2008-From APPR.: To APPR. SUSPENSE FILE.


(Furutani) California Community Colleges Economic and Workforce Development Program.

Existing law provides for the California Community Colleges Economic and Workforce Development Program. Existing law provides that this program only be implemented during the fiscal years for which funds are appropriated for these purposes in the annual Budget Act. Existing law requires that the mission of the economic and workforce development program include, among other things, the advancement of California's economic growth and global competitiveness through high quality education and services. Existing law provides for the repeal of the program on January 1, 2013. This bill would make a technical, nonsubstantive change to a provision of law related to the mission of the economic and workforce development program.
Status: 02/25/2008-Read first time.


(Furutani) California Community Colleges: workforce development.

Existing law establishes the California Community Colleges Economic and Workforce Development Program. Existing law provides that this program only be implemented during those fiscal years for which funds are appropriated for these purposes in the annual Budget Act. Existing law specifies the mission and goals of the economic and workforce development program and provides for its repeal on January 1, 2013. This bill would express the intent of the Legislature to subsequently amend this bill to include provisions relating to the economic and workforce development program.
Status: 02/25/2008-Read first time.


(Mendoza) California Small Business Advocate: Internet Web site.

Existing law requires the California Small Business Advocate to develop and post specified information on an Internet Web site. This bill would, until January 1, 2014, require the advocate to establish a one-stop location on its Internet Web site for posting announcements of business-related programs, information, announcements, and services offered by state agencies, departments, commissions, boards, and other state entities and other specified information. The bill would also require the advocate , in consultation with the California Small Business Board and the California Economic Strategy Panel, to determine the programs, information, announcements, and services for posting on the Internet Web site and the format and timelines for their posting. The bill would require state agencies, departments, commissions, and boards to cooperate with the advocate in administering the one-stop location on its Internet Web site.
Status: 04/23/2008-From APPR.: To APPR. SUSPENSE FILE.


(Carter) Microenterprises: economic development.

Existing law encourages local governments as well as California communities and the public agencies that serve them to promote microenterprise, as defined, development. This bill would revise the definition of microenterprise. This bill contains other related provisions and other existing laws.
Status: 04/22/2008-Re-referred to Com. on APPR.


(Nunez) Health care reform.

Existing law creates the California Health and Human Services Agency. This bill would require the agency, in consultation with the Board of Administration of the Public Employees' Retirement System (PERS), to assume lead agency responsibility for professional review and development of best practice standards for high-cost chronic diseases that state health care programs would be required to implement upon their adoption. The bill would additionally require the agency, in consultation with PERS and health care provider groups, to develop health care provider performance measurement benchmarks, as specified. This bill contains other related provisions and other existing laws.
Status: 02/25/2008-From committee without further action pursuant to Joint Rule 62(a).


(Kuehl) Single-payer health care coverage.

Existing law does not provide a system of universal health care coverage for California residents. Existing law provides for the creation of various programs to provide health care services to persons who have limited incomes and meet various eligibility requirements. These programs include the Healthy Families Program administered by the Managed Risk Medical Insurance Board, and the Medi-Cal program administered by the State Department of Health Care Services. Existing law provides for the regulation of health care service plans by the Department of Managed Health Care and health insurers by the Department of Insurance. This bill would establish the California Healthcare System to be administered by the newly created California Healthcare Agency under the control of a Healthcare Commissioner appointed by the Governor and subject to confirmation by the Senate. The bill would make all California residents eligible for specified health care benefits under the California Healthcare System, which would, on a single-payer basis, negotiate for or set fees for health care services provided through the system and pay claims for those services. The bill would provide that a resident of the state with a household income, as specified, at or below 200% of the federal poverty level would be eligible for the type of benefits provided under the Medi-Cal program. The bill would require the commissioner to seek all necessary waivers, exemptions, agreements, or legislation to allow various existing federal, state, and local health care payments to be paid to the California Healthcare System, which would then assume responsibility for all benefits and services previously paid for with those funds. This bill contains other related provisions and other existing laws.
Status: 07/10/2007-Read second time. Amended. Re-referred to Com. on APPR.


(Cedillo) Economic development subsidies: review by local agencies.

Existing law provides for various programs for economic development activities by state and local agencies. This bill would, beginning January 1, 2009, and until January 1, 2015, require each local agency to provide specified information to the public before approving an economic development subsidy, as defined, within its jurisdiction, and to review, hold hearings, and report on those subsidies at specified intervals. This bill contains other related provisions.
Status: 03/25/2008-In Assembly. Read first time. Held at Desk.

Political Races

Community College Trustee WARREN FURUTANI, a Democrat, was the top vote-getter in the December 11, 2007 Special Election to fill the unexpired Assembly term of Laura Richardson who was elected to Congress in an August 21 Special Election. Mr. Furatani now represents the 55th Assembly District which includes the Los Angeles communities of Harbor City and Wilmington, all of Carson, most of Lakewood and western portions of Long Beach.

Los Angeles area Senator Mark Ridley-Thomas and City Council Member Bernard Parks are in a heated race to succeed termed out Supervisor Yvonne Burke's seat on the Los Angeles Board of Supervisors. The election will take place on June 3, 2008.

California Legislative elections are every two years with the next election slated for June 3rd 2008. There are twenty-four members of the Assembly and ten members of the Senate who are termed out in 2008.

Two long serving African American legislators, Senator Edward Vincent and Assembly Member Dymally, are termed out of their current office in 2008. Dymally is in a competitive race against former State Assembly Member Rod Wright to succeed Senator Vincent in the 25th Senate District.

The favorite of the area's elected black leadership in Mr. Dymally's Assembly District is Isadore Hall, III, a member of the Compton City Council.

Political Races

The following Propositions have qualified for the June 3, 2008 Statewide Direct Primary Election ballot.

Proposition 98

Government Acquisition, Regulation of Private Property. Constitutional Amendment.

If enacted, Proposition 98 would bar state and local governments from condemning or damaging private property for private uses. The language specifically prohibits rent control and deference to government in property rights cases, defines "just compensation", requires an award of attorneys fees and costs if a property owner obtains a judgment for more than the amount offered by the government. Requires government to offer to original owner of condemned property the right to repurchase property at condemned price when property is put to substantially different use than was publicly stated. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Increased costs to many governments due to the measure's restrictions. The fiscal effect on most governments probably would not be significant. (Initiative 07-0015.)

(Full Text)

Initiative Constitutional Amendment
Proposition 99

Eminent Domain. Acquisition of Owner-Occupied Residence. Constitutional Amendment.

If enacted, Proposition 99 would bar state and local governments from using eminent domain to acquire an owner-occupied residence, as defined, for conveyance to a private person or business entity. Creates exceptions for public work or improvement, public health and safety protection, and crime prevention. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: The measure would likely not have a significant fiscal impact on state or local governments. (Initiative 07-0018.)
(Full Text)


SB 1856 (Chapter 697, 2002). Costa.

Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century.

The Safe, Reliable High-Speed Train Bond Act for the 21st Century would provide $9.95 billion in general obligation (GO) bonds to fund the planning and construction of a high-speed passenger (bullet) train system and improvements to other specified rail systems in the State.

*Note: The Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century was originally scheduled to appear on the November 2, 2004, General Election ballot. Subsequently, Senate Bill 1169, Chapter 71, Statutes of 2004, provided that it appear on the November 7, 2006, General Election ballot. However, most recently, Assembly Bill 713, Chapter 44, Statutes of 2006, provides for the submission of this Act on the November 4, 2008, General Election ballot instead.


Treatment of Farm Animals. Statute.

If enacted, this initiative would require that an enclosure or tether confining specified farm animals allow the animals for the majority of every day to fully extend their limbs or wings, lie down, stand up, and turn around. Specified animals include calves raised for veal, egg-laying hens, and pregnant pigs. There are exceptions made for transportation, rodeos, fairs, 4-H programs, lawful slaughter, research and veterinary purposes. Failure to comply results in misdemeanor penalties, including a fine not to exceed $1,000 and/or imprisonment in jail for up to 180 days.. (Initiative 07-0041.)
(Full Text)

 

What's New?


2007 Legislative Session Summary

The 2007 Legislative Session was intended, by all parties, to be the year of "Healthcare Reform". While there was agreement on the goal of creating a healthcare system to address the approximately 6.5 million uninsured in the state of California, there was very little agreement on how to accomplish that goal. As a result, there were many varying legislative proposals introduced. Governor Schwarzenegger started the effort with a call for a mandate on all Californians to have health insurance, which was quickly countered by a universal health care plan sponsored by the California Nurses Association.

After being unable to come up with a proposal during the Regular Legislative Session, Governor Schwarzenegger called a special session to address the issue and in the final days of the Extraordinary Session on Healthcare the Governor reached a deal with Assembly Speaker Fabian Nunez. However, an expected $14 billion budget deficit resulted in Senate President Don Perata deferring a vote on the agreement. Ultimately, the bill failed in the Senate.


Governor Schwarzenegger's State of the State Address

The Legislature reconvened for the 2008 Legislative Session on Monday, January 7th. The Governor delivered his annual state of the state address on Tuesday, January 8th. This was his fifth state of the state address as Governor. The speech lacked the ambition and passion of the Republican governor's address a year ago when he was basking in his reelection, legislative achievements and a budget he said then was under control. Schwarzenegger, cognizant that the state's predicted $14 billion budged deficit would limit expansion of his objectives, offered few proposals compared to years past. The governor had previously designated 2008 as the "Year of Education," and a commission he appointed recommended $6.1 billion in new spending in a draft report completed last year. While the governor spoke about improving education in his speech, he said there was not funding for it now and embraced few of the commission's suggestions in his speech.

He revisited his failed proposal of a constitutional amendment instituting a spending cap. He said it would force the budget process to be more responsible by automatically reducing expenditures when tax revenues increased more slowly than average. When revenues were flush, it would put extra money aside for the future.

Additionally, he said he would push for public-private partnerships in state and local construction projects, a plan he cited that British Columbia has practiced for years and has proven successful for all parties, especially small businesses.


California's Fiscal Crisis

Governor Schwarzenegger declared a fiscal emergency for the state of California on Thursday, January 10th when he submitted his Budget Bill. Doing so triggered a 45-day deadline for lawmakers to present the governor with a solution. If they fail, they are not allowed to consider any other legislation until they do come up with a plan to solve the fiscal crisis. Lawmakers have introduced a flurry of bills this legislative session but all eyes seem to remain on what ultimately happens with the state budget with respect to what cuts are made and what taxes are raised.

 
 

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