August 26, 2024

Chamber staff have been hard at work during this year’s legislative session, ensuring that San Diego’s business community is represented at our capital. From the annual budget to legislative bills, the Chamber has been actively engaging with our state representatives and our state partners on a wide range of issues. The Legislature has returned after legislative recess and active bills have to pass the full Legislature by August 31st before they head to Governor Newsom’s desk. As the legislative session for 2024 nears its end, we’d like to share some of the successes our staff have had this session, and some of the continued priorities we are championing in the upcoming months: 

• The Governor’s budget proposal back in May called for a 50% budget cut to the State’s Small Business Technical Assistance Program (TAP), which funds small business specific services and advising, mainly delivered by regional small business development centers and APEX accelerators. The Chamber advocated for a full restoration of TAP funding, as the impact that TAP funding can have for small businesses is great, especially in San Diego where over 90% of our economy is small businesses.   

• The Chamber signed on to a coalition letter opposing AB 2557 (Ortega). The bill would significantly restrict local governments’ ability to contract with non-profits, community-based organizations and other private entities that deliver essential services to local communities across the state. AB 2557 creates new bureaucratic requirements for local government agencies that contract out to provide services. It would also result in higher costs, further straining local governments budgets and increasing costs for taxpayers. Small businesses and private sector contractors can often deliver services more efficiently and more cost-effectively. By making contracting for local services more difficult, AB 2557 will increase costs for local governments already dealing with budget deficits and economic turmoil. 

• Executive Director of Public Affairs, Justine Murray, joined a statewide coalition on behalf of the Chamber to oppose Prop 33, which would repeal California’s current bipartisan statewide rent control and tenant protection laws that have brought stability and predictability to both landlords and renters. If cities adopt strict rent control ordinances, it will make California’s already dire housing shortage even worse. Property values will drop, and developers will be less likely to build new housing, which, in turn, will drive up prices in existing rental units. Additionally, the measure does not include protections for renters. California voters have already opposed this proposal on the ballot twice, and the Chamber voted to oppose this effort again earlier this year.  

• The Chamber has been a strong supporter and advocate of PAGA reform this year, joining a “Fix PAGA Coalition” to find legislative solutions to the issue. The statewide coalition was able to negotiate a deal between labor and business in June, and the legislature quickly adopted SB 92 and AB 2288. Governor Newsom signed the bills into law on July 1, significantly reforming PAGA in California. The reforms apply to civil actions filed on or after June 19, 2024. CalChamber put together a PAGA Wage and Hour Compliance Toolkit designed to assist businesses navigate through the new laws. To note, there is a cost to the toolkit. Please reach out to Justine Murray (jmurray@sdchamber.org) if you have any questions regarding the recent reforms. The Chamber will continue being a resource to businesses in the San Diego region as PAGA reforms are implemented.