The Chamber Review April 2018 - Page 37

income tax rate from 13.3% – which is already, by far, the highest income tax rate in the country – to 14.3% for one category of taxpayers (including some proprietors), who already pay half of California’s income taxes, forcing them to mitigate these costs through means that include reducing workforce, in order to provide more funding for higher education.

AB 2384 (Arambula; D-Kingsburg) Increases Health Care Premiums — Increases health care premiums by mandating medication-assisted treatment for substance disorders and by eliminating all quality control and cost containment mechanisms.

AB 2447 (Reyes; D-Grand Terrace) Increases Costs and CEQA Litigation — Invites more litigation and increases the complexity and cost of CEQA compliance by 1) requiring local agencies to make a finding as to the discriminatory intent or effect of a proposed project, 2) forcing the local agency to incorporate all oral and written comments from the scoping process into the environmental review document regardless of its accuracy or relevancy, and 3) allocating responsibility for identifying what constitutes a “subject land use” for which new notice provisions will apply to the Office of Environmental Health Hazard Assessment.

AB 2527 (Muratsuchi; D-Torrance) Costly Litigation Against Small Employers — Exposes small businesses who are seeking financial investors in their company to devastating class action litigation by banning the use of arbitration agreements, which is preempted by the Federal Arbitration Act, prohibiting class action waivers, allowing for the award of treble damages, punitive damages, and attorney’s fees, and interferes with contractual negotiations between sophisticated parties by dictating the choice of forum and choice of law for such litigation.

AB 2560 (Thurmond; D-Richmond) Targeted Tax on Contractors — Unfairly targets one category of taxpayers to fund a benefit for all of the state by imposing a tax on contractors for the privilege of doing business with the Department of Corrections and Rehabilitation, and requires the contractor to absorb the cost while maintaining a price of lowest responsible bidder.

AB 2571 (Gonzalez Fletcher; D-San Diego) Public Employee Retirement Systems Investment Policy — Seeks to publicly shame investment managers and the hospitality companies in which they invest, by forcing them to submit an annual report subject to a public review, that discloses employee wage information according to gender, ethnicity, and race, exposing such companies to costly litigation.

AB 2613 (Reyes; D-Grand Terrace) Wage Statement Penalties — Imposes another layer of Labor Code penalties for wage and hour violations in addition to the penalties already available under the Private Attorneys General Act (PAGA) and imposes personal liability onto employees who have no control over the actual payment of wages.

AB 2765 (Low; D-Campbell) Portable Benefits for The Gig Economy — Imposes onerous and costly mandates on companies in the gig economy labeled as the “digital marketplace” by adding them under the provisions of the Fair Employment and Housing Act (FEHA), expanding the protected classifications under FEHA for contractors of the digital marketplace to include “familial status,” and creates further confusion and uncertainty regarding the use and classification of independent contractors. These new mandates will dramatically increase the amount of frivolous litigation under FEHA and the Private Attorneys General Act (PAGA) for the digital marketplace.

AB 3080 (Gonzalez Fletcher; D-San Diego) Ban on Settlement Agreements and Arbitration Agreements — Significantly expands employment litigation and increases costs for employers and employees by banning settlement agreements for labor and employment claims as well as arbitration agreements made as a condition of employment, which is likely preempted under the Federal Arbitration Act and will only delay the resolution of claims. Banning such agreements benefits the trial attorneys, not the employer or employee.

AB 3087 (Kalra; D-San Jose) Health Care Price Controls — Jeopardizes employers negotiating power and access to care, ignores the drivers of health care costs, and adds another layer of bureaucracy by creating an appointed commission to impose price controls on health care providers and insurers.

THE CHAMBER REVIEW | APRIL 2018

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