Legislative Year In Review
2016 Year In Review
IIABCal is a member of the Civil Justice Association of California (CJAC) - a strong force against the trial lawyers in Sacramento that continues to be one of the most powerful business associations in the state, fighting the trial lawyers on several fronts.
CJAC's successful programs - Legislative, Political, Appellate, The California Project, and Communications - continue to innovate, produce and deliver. Below is a summary of CJAC's most notable accomplishments in 2016:
Legislative Program
Of 25 bills CJAC opposed, 16 were killed or amended to resolve our concerns, and 4 more were vetoed. CJAC stopped:
- A bill that would have eliminated the statute of limitations for lawsuits over statements regarding climate change. (SB 1161-Allen)
- A bill prohibiting the use of arbitration in employment contracts with military service members. (AB 2879-Stone)
- A bill prohibiting agreements to arbitrate civil rights claims. (AB 2667-Thurmond)
- A bill that would have put onerous restrictions on arbitrators and arbitration companies. (SB 1078-Jackson)
- A bill that would have prevented settlements in two high-profile mass tort actions. (AB 2748-Gatto)
CJAC supported successful legislation to create, for the first time in ADA law in California, a limited right to cure for some minor ADA violations. (SB 269-Roth)
CJAC supported two successful bills to improve data collection about ADA lawsuit abuse. (AB 54-Olsen and SB 1406-Mendoza)
CJAC successfully secured a Democratic co-author, Assembly Member Adam Gray, and veteran support for CJAC's asbestos transparency bill. (AB 2315-Olsen)
Political Program
CJAC separately funded political action program provides assistance to candidates who support California's businesses and a more balanced legal system. FairPAC hosted 15 events for legal reform candidates, raising nearly $350,000, and supported fair-minded politicians and candidates from both parties.
Appellate Program
CJAC's appellate program reviews thousands of civil appeals in California's six Courts of Appeal and in the California Supreme Court, and makes strategic decisions about which cases deserve our involvement.
- A unanimous California Supreme Court handed CJAC a major victory in Winn v. Pioneer Medical Group, agreeing with CJAC's arguments that plaintiffs cannot do an end-run around MICRA by suing under the Elder Abuse Act for "neglect" rather than suing for medical malpractice.
- Pending before the California Supreme Court are big cases where CJAC filed amicus briefs regarding take-home asbestos liability and the extent of a real estate agent's fiduciary duty.
The California Project
CJAC's innovative candidate research program continues to provide the most comprehensive candidate and district analysis in the state. Meeting candidates early provides a great foundation for relationship-building when candidates become Legislators. In 2016, CJAC staff:
Monday, January 2, 2017
Big "I" Addresses ACA in Letter to U.S. Congress
IIABA last week partnered with the American Benefits Council and other business groups to send Congress a letter opposing several burdensome health care taxes.
The letter urges Congress to repeal the Affordable Care Act's (ACA) 40% "Cadillac" tax on health benefits. It also advises Congress not to cap the individual tax exclusion for employer-provided health care benefits or limit employers' deductibility of health care expenses.
Potential ACA replacement plans have proposed both capping the individual tax exclusion for employer-provided health care benefits and limiting employers' deductibility.
Controlling Health Care Costs
While the Big "I" supports efforts that aim to control health care costs, the association believes that limiting an employer's deduction or capping an employee's exclusion will not accomplish that objective. The letter makes clear that the Big "I" believes both measures will raise costs for employers and employees.
Increasing taxes on individuals, employers or their health insurance will not reduce the cost of delivering health care.
These measures will, however, constitute a tax increase and drive up out-of-pocket health care costs for employees and their families-risking disruption to the system and threatening the benefits which working families value.
California Senate Announces New Committee Chairs & Members
California Senate President pro Tempore Kevin de León (D-Los Angeles) announced his leadership members and nominees for Senate standing committee chairs and members today.
Committee chairmanships and memberships are subject to change each session as a result of newly elected legislators and changes in the legislative makeup.
Political Currency
Legislative leaders often use Chairmanships as political currency, for example awarding big party contributors with the higher profile "juice committees" and removing those members who failed to follow the party line or upset leadership in some manner.
There are nine new members of the Senate, six of whom has either immediately or within the last 10 years served in the Assembly. As a result, Senate President Pro Tempore had a good idea of their political track record as he placed them on their various new committees and awarded Chairmanships.
Most Notable
Most notable for the insurance industry -- and a move no one saw coming -- is the removal of Senator Richard Roth as Chair of the Senate Insurance Committee. He was replaced with Senator Tony Mendoza, who previously served as Chair of the Senate Labor & Industrial Relations Committee.
In addition, two new Democratic members were added to the Senate Insurance Committee: newly elected Senator Josh Newman and fromer Assemblyman now Senator Anthony Portantino.
"These changes in chairs have the potential to change the fate of some controversial legislation ..."
These changes in Chairs have the potential to change the fate of some controversial legislation that have stalled in past years (i.e. uninsured/underinsured motorist).
Senator Steven Bradford replaces Medoza as new Chair of Labor & Industrial Relations. Former Assembly Speaker Toni Atkins joins Senators Holly Mitchell and Hannah Beth Jackson on the committee. Jeff Stone remains the lone Republican and Vice Chair.
New Senator To See Action
New Senator (coming right from the Assembly) Bill Dodd was named Chair of the Banking & Financial Institutions Committee, which will see a lot of action this year post Wells Fargo scandal. He replaces Senator Steve Glazer, who was given the distinguished role of Chair of Governmental Organization Committee.
Designated committee chairs and membership will be formally adopted by the Senate Rules Committee when it convenes on January 11, 2017.
The IIABCal Legislative Report is a compilation of a number of reports including "This Week in Sacramento," produced by IIABCal Lobbyist John Norwood of Norwood & Associates, and a weekly report on legislative activity affecting civil liability issues, produced by the Civil Justice Association of California (CJAC).
