Pub. 3 2021-2022 Issue 1

23 Although lawmakers will surely be tempted to implement ever-increasing mandates on employers struggling to make it through the pandemic, voters in November demonstrated that they are not supportive of every progres- sive agenda item. It will be fascinating to see how legislators can thread that needle and balance their huge level of progressive power with an elector- ate that seems to be wanting some restraint. Add the pandemic’s realities and a recall effort gaining steam tar- geting Governor Gavin Newsom, and we are looking at another unprec- edented year. Governor Newsom Recall Attempt The recall campaign targeting Governor Newsom was widely char- acterized early on as a small, fringe grassroots effort. However, largely due to frustrations over state handling of the pandemic, it is now beginning to gain steam and has a slight potential to threaten the Governor. The effort, supported by Rescue California, has raised more than $1.7 million so far. The campaign says it has gathered 1.2 million of the 1.5 million signatures they need by March 17th to get the recall effort on the ballot, which would likely happen in the fall of 2021. Governor Newsom’s approval rating is high at 57%. Still, there is steadily mounting frustration over on-again- off-again closures, fraud and inepti- tude related to the state Employment Development Department, and confusion related to the vaccine and its rollout. Rescue California is being characterized by state Democratic leaders as an attempted coup in line with the U.S. Capitol storming a few weeks ago, and prominent news stories have linked the campaign’s proponents with hardline anti-vacci- nation activists and QAnon support- ers. However, many state Republican leaders support the overall recall effort. Also, two Republicans who are considering challenging Governor Newsom if the recall reaches the bal- lot, San Diego-based venture capital- ist John Cox and former San Diego Mayor Kevin Faulconer, have been speaking out in support of the effort. Impact of New Federal Administration Lastly, due to President Joe Biden and vice president Kamala Harris’s elec- tion, there is an ongoing and ever- expanding game of political musical chairs in California. • Governor Newsom appointed California Secretary of State Alex Padilla to Harris’ U.S. Senate seat and then appointed Assemblymember Shirley Weber (D-San Diego) to replace Padilla as Secretary of State. Once the legislature confirms Weber, that will create a va- cancy and a special election to follow later in 2021. Weber’s daughter Dr. Akilah Weber, an obstetrician and La Mesa city councilmember is considered the front-runner to replace her mother in the Assembly. • California Attorney General Xavier Becerra was nominated to become Biden’s Secretary of Health and Human Services, which means Governor Newsom will have another appointment to make. Depending on who he chooses, it could have further ramifications for Assembly or Senate seats. • There are rumors that Biden plans to nominate California Labor Secretary Julie Su for Deputy Secretary of the U.S. Department of Labor Department — a rumor that will likely be confirmed before this article’s publishing date. If Su leaves California for Washington, D.C., the post of California Labor Secretary will be vacant. Due to the federal administration’s change, Washington, D.C.’s policy pri- orities have drastically shifted. So far, President Biden has indicated that his priorities will include the following: • Establishing ambitious fuel economy standards that will likely mirror the stricter standards that were set during the Obama administration. • Reconsidering the Trump ad- ministration’s decision to revoke California’s authority to set its own auto emissions standards and require a rising number of zero-emission vehicles. • Adding 500,000 charging sta- tions nationwide for zero-emis- sion vehicles. • Introducing new tax credits for electric vehicle purchases. • Reviving the “Cash for Clunkers” program aimed at providing incentives for consumers to retire older vehicles. • Banning mandatory arbitration clauses in employment contracts. Also, during the past four years, California Attorney General Xavier Becerra filed a total of 110 lawsuits challenging a whole host of the Trump administration’s actions. Now that President Biden is in the White House, we can expect these lawsuits to cease. This means that California’s new Attorney General will have been able to divert substantially more staff resources toward investigating and penalizing California businesses than fighting fed- eral actions once he or she is appointed. CNCDA Fights for Dealers As always, CNCDA will be engaged on behalf of dealers in what is expected to be a tough political environment this year. So far, we are already engaging in opposition to an effort to cap the rates automotive repair dealers can charge for vehicle storage when a customer abandons their vehicle, and in strong support of a proposal to allow busi- nesses to deduct business expenses paid with forgiven Paycheck Protection Program loans — and this is just week three of the session. As always, dealer engagement and feedback will be critical for our success in the legislature this year. A big part of that involve- ment is our annual Dealer Day, which is coming up on Wednesday, April 21st. Please mark your calendars and support our efforts to educate policy- makers about the importance of your businesses to your local communities’ health and vibrancy. 3