It may sound strange, but a Republican state legislator is proposing to resurrect a defunct state regulatory body specifically to pass an increase in the state’s minimum wage.
State Sen. Abel Maldonado, R-Santa Maria, is carrying SB 1167, Gov. Arnold Schwarzenegger’s proposal to raise the minimum wage to $7.75 an hour from the current $6.75 an hour. But that bill effectively died in the Senate Labor and Industrial Relations Committee because the majority Democrats are backing other minimum wage legislation SB 1162 by Gil Cedillo, D-Los Angeles that would also include indexing the minimum wage to annual inflation.
Schwarzenegger has in the past vetoed minimum wage increases with this indexing component and has said he will do so again. His main reason: It would increase the minimum wage automatically regardless of current economic conditions.
So, late last month, Maldonado wrote a letter to Schwarzenegger suggesting that the governor reinstitute the state Industrial Welfare Commission, which was de-funded by legislative Democrats in 2004. Ironically, at the time, Democrats complained that the commission was blocking attempts to raise the minimum wage.
Under the state constitution, the IWC could on its own enact the Schwarzenegger-proposed minimum wage hike, without having to go through the Legislature.
In a press release accompanying his letter, Maldonado said: “Today I am asking Gov. Schwarzenegger to take immediate action and help California’s hardest workers. The Democrats have decided to play politics with workers’ lives rather than doing what is right. By the governor taking immediate action, the state’s 1.5 million minimum wage earners will see relief from rising health care, energy and gas costs.”
Besides taking the sails out of the Cedillo proposal, this move could also quash an attempt by labor to get voters to pass a minimum wage hike with annual indexing to inflation. An initiative is now in circulation for the November ballot. The deadline to gather 325,000 signatures is May 25.
Gov. Schwarzenegger said he wants to pursue the issue but has not considered this proposal.
Redrawn Toxic Regs
The California State Supreme Court has ordered a state agency to redo its fee and penalty policy for companies that fail to clean up hazardous materials.
The court, in a unanimous decision, concluded that the state Department of Toxic Substances Control had issued an overly broad interpretation of a 1989 state law requiring companies with 50 or more employees to pay a fee if they are in an industry that generates or stores hazardous materials.
In its regulations, the agency said that virtually every company either in these industries or serving these industries should pay the fee. That interpretation was challenged by Morning Star Co. of Los Banos, which supplies labor to tomato processors. Morning Star claimed that its main business had nothing to do with generating or storing hazardous waste. At stake in this dispute: $30 million a year in assessed fees.
The court ruled that because the agency’s policy was so broad, it had to go through a formal regulatory process, with hearings, which was not done. The Department of Toxic Substances Control must now re-craft its policy and hold hearings. But companies will not be off the hook; the court did allow the existing policy to stay in effect while the new one is being drafted.
New Air Quality Standard
The state Air Resources Board has scheduled a hearing this week to solicit input for a new tougher standard for nitrogen dioxide emissions.
Nitrogen dioxide is commonly found in car exhaust, as well as diesel engines and home heaters and gas stoves. As a result, standards for pollution controls target automakers, the manufacturers of off-road engines, power plants and makers of heaters and generators.
The ARB has long had a limit for nitrogen dioxide emissions of 0.25 parts per million for one hour; it was last reviewed in 1992. Since then, new information has come out on the health impacts of these emissions on children. As a result, ARB staff has recommended lowering the maximum concentration for one hour to 0.18. Also, a new annual average concentration of 0.03 parts per million would be established.
The hearing is May 11 in El Monte. For more information, log on to the board’s Web site at arb.ca.gov/research/aaqs/no2-rs/no2-rs.htm#new.
Taxing Multinationals
Gov. Arnold Schwarzenegger has indicated he will sign a bill passed by the state Senate last month that will change the way multinational corporations pay taxes in California. The change will generate an extra $50 million a year for state coffers.
The bill, SB 663 by Sen. Carole Migden, D-San Francisco, would tax companies headquartered in tax havens such as the Cayman Islands and Bermuda that do business in California. Current law only taxes multinational corporations that are incorporated to do business in the territorial United States.
Democrats have long sought to make this change, claiming it makes California conform to state law. But Republican legislators and governors and their business allies have repeatedly blocked these attempts until now. Schwarzenegger has steered to the left this election year after his failure in last year’s special election.
Taxes on Credit Cards
Business owners can pay for virtually everything else by credit card, so why not taxes?
Late last month, the state Employment Development Department launched a program called Ezpay, which allows California businesses to use a major credit card in making payroll tax deposits over the Internet or by phone.
“Ezpay marks a major step in our journey toward making all of our business systems efficient and customer friendly It also includes strong safeguards to protect the privacy of businesses,” said EDD Director Patrick Henning.
Ezpay accepts American Express, Discover, MasterCard and Visa. Online payments can be made at officialpayments.com. Payments over the phone can be made by calling (800) 272-9829.
Staff reporter Howard Fine can be reached by phone at (323) 549-5225, ext. 227, or by e-mail at
hfine @labusinessjournal.com
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