In This Issue:

• STILL NO BUDGET – 74 DAYS

• “BUT MY GUY IS OK”

• SIGN/VETO MACHINATIONS

• CITY OF STOCKTON ADOPTS LEED MANDATES

• S.F. BAY AREA MAYORS BAND TOGETHER TO REDUCE GHGS

• ALASKA AND HAWAII GOVERNORS OPPOSE PORT TAX BILL

• AB 32 CLIMATE CHANGE SESSION

• 2008 INDUSTRY AWARDS GALA

• CBPA 2008 CALENDAR

STILL NO BUDGET – 74 DAYS

Seventy-four (74) days without a spending plan for the world’s sixth largest economy.

A new Field Poll reports that 82 percent of voters now describe the budget situation as "very serious." The other 18 percent responded by saying “tastes like purple.”

In a show of the acrimony between the Governor and members of his own party in the Assembly, when Schwarzenegger showed up to a recent meeting with the group many of the caucus members were wearing nametags. This little protest was meant to underscore the complaint that the Governor does not interact with members of his own party enough to know their names.

In all seriousness however, rumours are beginning to fly that one side is about to blink and the “beginnings of a deal” are starting to come together. It’s obvious that something must break and its just a matter of what and when and we will keep you posted.
 

“BUT MY GUY IS OK”

The same Field Poll also shows state lawmakers with a 15 percent approval rating. Even with record-low job performance ratings not a single incumbent legislator is in danger of losing their seat in the November election. It doesn’t make sense how an organization can have such a universally low approval rating, yet show no signs that it feels external forces to improve. We can only assume that many people in the poll dislike the other 118 legislators but do not think the two representing them are part of the problem.

Another reason that the institution can withstand such a public battering is that it has inoculated itself to such pressure by drawing gerrymandered districts that preordain victory for one political party or the other. Since there is no “market” forces in these districts to contemplate anything but the prescribed doctrine of one side there is no incentive to act in any way different.
 

SIGN/VETO MACHINATIONS

As further proof of the glamorous life of lobbyists, we present to you a memo from the top parliamentarian in the Assembly regarding legislative deadlines that may not be met due to the ongoing budget standoff. Warning: Do not read while driving or operating heavy equipment:

For bills that take effect January 1st- they must be signed by the Governor no later than September 30th. The bills must be chaptered by the Secretary of State no later than October 2nd. (Article IV, Section 8c)

If a bill is not signed or vetoed by the Governor and in his possession, the bill becomes law without his signature. (Article IV, Section 10 b2)

If the Legislature sends a bill to the Governor after September 30th; it would not likely be chaptered by October 2nd- therefore the bill would take effect January 1st of the following year (January 1, 2010).

Between September 1st and November 15th, the legislature can pass any bill that takes effect immediately. These types of bills are tax levies, budget bills, statutes calling elections, urgency bills, and a bill passed in a special session(Article IV, Section 10).

If a bill is passed after September 1st in the regular session (ending November 30, 2008), the Governor only has 12 days to act on that bill (Article IV, Section 10). The reason is that any bill passed after August 31st (sine die), does not enjoy the longer signature deadline (30 days) and needs to be acted upon on by the Governor within 12 days. If the Governor does not sign or veto, the bill becomes law without his signature. The Assembly Chief Clerk states that it is uncharted territory when a bill passed during this time period would take effect.

The constitution states that the legislature cannot send the Governor a bill after November 15th.
 

CITY OF STOCKTON ADOPTS LEED MANDATES

The City of Stockton City Council voted 4-3 to adopt a settlement agreement to settle a lawsuit brought by the Sierra Club (with a threat by the State Attorney General, Jerry Brown, to join the lawsuit if not adopted). The settlement agreement mandates, among other things, that the city adopt LEED Silver standards for all non-residential construction and Build it Green standards for all residential construction. There is great concern that this lawsuit is a new tactic to get around the Governor’s recent vetos of this policy at the state level and that the agreement will encourage additional lawsuits.

“THANK YOU” to the many members that weighed-in with the City Council and provided information about impacts. The initial agreement was significantly amended over the two week discussion and ultimately is somewhat less onerous than the initial document that had no input from business groups. Our industry remains very concerned about the precedent this action will set and are prepared to enter the fray if/when these tactics are used again.

Click here for local newspaper coverage: Split council OKs Brown plan; Stockton settles dispute with attorney general.
 

S.F. BAY AREA MAYORS BAND TOGETHER TO REDUCE GHGS

In a potentially related story… Mayors of the San Francisco Bay Area's three largest cities (Oakland, San Francisco, San Jose) vowed to set aside provincial interests and back an effort to reduce greenhouse gas emissions by building houses near rail lines and expanding employment in solar energy and green technology. Click here for the full story.
 

ALASKA AND HAWAII GOVERNORS OPPOSE PORT TAX BILL

SB 974 (Lowenthal; D-Long Beach) has long been opposed by industry and has taken two years to wend its way to the Governor’s desk. The bill would create a $60 fee for each 40-foot cargo container moving through the ports of Los Angeles, Long Beach and Oakland, which together handle more than 40% of the nation's goods. Businesses in California are worried that the added tax on goods shipments will increase costs to consumers and/or push shipments to other West Coast ports.

The LA Times published a story focusing on a letter sent to Governor Schwarzenegger from Alaska Governor Sarah Palin. Due to Palin’s new status as VP candidate the story takes the opportunity to imply that she should mind her own business. However, please keep in mind that the Governor from Hawaii has also sent a letter of opposition to the bill and has taken her opposition a step further by threatening to sue California if it adopts this measure. The LA Times story also quotes Senator Lowenthal as stating Palin “displays a lack of understanding," about the policy but later acknowledges that he offered to amend the bill to address her concerns by cutting the fee in half. Click here to read the full story.
 

AB 32 CLIMATE CHANGE SESSION

Please join four major industry groups, including the California Chamber of Commerce, California Building Industry Association, California Business Properties Association, and American Council of Engineering Companies of California for a high level discussion and panel presentation on the implementation of AB 32, California’s 2006 Green House Gas (GHG) global warming solutions bill and its resulting impacts on industry.

From land use to transportation planning, residential to commercial development, manufacturing to the retail industry, AB 32 is setting the stage for profound effects that will resonate across California for years to come.

The AB 32 Session will be held in Sacramento on October 2, and is FREE FOR MEMBERS. Space is limited and attendance is on a first-come first-serve, so sign up now. Click here for more information.
 

2008 INDUSTRY AWARDS GALA

The Industry Awards Dinner is scheduled for October 23, 2008 at The Island Hotel in Newport Beach. This event is not to be missed as it is a chance to recognize the unwavering leadership of individuals and companies dedicated to our industry. Click here for more information about the honorees and for sponsorship information.
 

CBPA 2008 CALENDAR

October 23-

CBPA Board Meeting
The Irvine Company, Newport Beach

2008 Industry Awards Dinner
Island Hotel, Newport Beach