The last days of the legislative session before adjournment are always filled with an array of last minute surprises. Nevertheless, I’ll admit my shock when a brazen gut-and-amend bill with far-reaching implications appeared. Assembly Bill 101, a bill to unionize child care workers, is co-authored by Assembly Speaker John Perez and Senate President pro Tempore Darrell Steinberg.

Only a couple of weeks ago, Assembly Bill 889 (Ammiano), affectionately known as “The Babysitter Bill,” showed up on the radar, although the bill has already passed the Assembly and appeared to be on track to make to the Governor’s desk. AB 889 would require household “employers” (aka parents) to pay minimum wage, provide workers’ compensation benefits, meal and rest breaks, as well as overtime pay to any “domestic employee,” even a babysitter, over the age of 18 from the first hour worked. AB 101 picks up where AB 889 leaves off.

Both licensed and license-exempt child care providers who receive state subsidies will be required to join an exclusive “provider organization” if 50% or more of those targeted “show interest.” Sign a card, join the union. No… Read More

Media reports indicate that Amazon.com and legislative leaders have struck a deal to delay implementation of the “Amazon Tax” for at least a year.

I’m withholding judgment until I see the actual language of the deal. But I can say this much: any deal must be about California jobs.

Will this deal protect California’s remaining affiliate businesses? Will it bring back the businesses destroyed by the failed ‘Amazon Tax?’

Will it encourage new investment and job creation in our state by Amazon and other online retailers? Or will it continue to punish those out-of-state companies that dare to provide jobs and income for… Read More

“The inherent vice of capitalism is the unequal sharing of its blessings. The inherent virtue of socialism is the equal sharing of its miseries.” – Sir Winston Churchill

Socialism Has Failed………Again: The last month has not been a good one for the now highly interconnected world economy. Certainly, we have many problems in the US, with crushing debts and deficits and no job growth or really any growth in the economy at all. Expectations that the future looks bleak add to a lack of investment and risk-taking as more and more people stick their financial heads in the sand. But, it’s even worse in Europe and other places around the world. The huge fiscal problems in countries like Greece, Portugal, Ireland, Italy and Spain may result in debt defaults and are affecting not just their growth, but ours as well.

If you look at the problems in this country and those in Europe, you find that they are really just differing degrees of the same problem. Our governments (federal, state and local) in the US have spent too much money and borrowed too much money and now don’t have enough… Read More

Follow FlashReport on Twitter (@flashreport) or check it out at http://www.twitter.com/flashreport!… Read More

Last week, Governor Brown made a big splash pushing a business tax reform proposal. This issue involves how national and international corporations are taxed under California law. As the result of the budget deal crafted two years ago (a deal that hit citizen taxpayers hard) corporations were given a choice over how they were taxed. The details aren’t that important for normal people and the issue is a bit complicated. (There was a humorous moment when Darrell Steinberg said “this is simple” and, moments later, Jerry Brown said this is a “complicated issue” and he wasn’t even sure he understood it.)

Whether corporations should be given the opportunity to elect how they are taxed might very well be a legitimate discussion to have. (But Joel Fox makes the valid point that the absence of predictability due to these radical changes in tax policy every few months is a contributing factor to the perception that California is anti-business, if not outright weird). What is clear is that the elimination of the right to elect would be a tax increase. Pure and simple. Moreover, any such proposal requires a two-thirds vote of each house. The good news… Read More

Another GOP Presidential Debate or convention, another article about the decline of the GOP in California. The latest version of this “template” appears in today’s Sacramento Bee, and ignores the screamingly obvious – the decline of California has occurred at the exact same time and pace as the decline of conservative political influence in the State.

Even in today’s piece, we read that the GOP must reach out to leftist 2nd and 3rd generation Latino voters. This is such a lazy and tired argument in favor of a strategy that has not and will not work that its mention is laughable. Leftist voters are not going to vote for our candidates. Leftists of all racesmust simply live with their decisions until they hate California so much that they are willing to makea change. It is quite possible that this will never happen, no matter how bad California becomes, because there is no more monolithic and close minded voter than the California leftist.

A failing education system, massive bond debt, bankrupt State government,… Read More

I’m pleased to report that Senate Republicans yesterday held firm against an attempt by Democrats to strip California voters of their right to hold a referendum on the “Amazon Tax.”

AB 155 would have cemented the failed policy of AB 28X into law, but the measure fell five votes short of the required 2/3rds vote. In his floor speech, Senator Sam Blakeslee rightly described the measure as “an attempt to thwart the voice of the people.”

Opponents of the “Amazon Tax” have already collected more than enough signatures to force a referendum vote next year. And as I recently warned the Governor and legislative leaders, the $200 million they are counting on in “Amazon Tax” budget revenue is certain not to materialize this fiscal year.

Even so, the Governor and Democrat leaders have spurned an offer by Amazon.com to collect the tax in two years and voluntarily bring thousands of jobs to California in exchange for a repeal of AB 28X.

Republicans must continue to… Read More

[Publisher’s Note: As part of an ongoing effort to bring original, thoughtful commentary to you here at the FlashReport, I am pleased to present this column from Kevin Dayton, State Government Affairs Director for the Association Builders and Contractors of California – Flash]

It’s the time of year for notorious “gut and amend” antics in the California State Legislature: remove the text of an innocuous bill, replace it with something controversial and divisive, and sling it through the legislative process in the last chaotic week of the session before opponents become fully activated and the public learns about the scheme.

Many leftist special interest groups find value in this anti-democratic tactic, including the California State Building and Construction Trades Council. The Plot: Kill Off Those Pesky Policies to Protect Taxpayers from Union Monopolies

On the afternoon of Friday, September 2 – the day before Labor Day weekend – Democrat… Read More