b'SACRAMENTO SUMMARYBy Michael J. Arnold & Michael Belote, Esq.Legislative AdvocatesWhat a Difference a Month MakesT here is evidence that at the highestis not.Senate consultants are analyzing allfor fiscal year 2020-2021 is going to be levels of government, some planningbills as if they will be heard in the normalparticularly daunting this year.The Governor has occurred in the past for potentialcourse upon a return to Sacramento, whilehas indicated already that the proposed epidemics.At the same time, there isthe Assembly committees have been morebudget he released in January, which evidence that both the state and federalopen about jettisoning non-essential billswas very ambitious, is now inoperable." systems partially reduced funding for theirfor the year.And the Senate seems moreTypicallytheGovernorreleasesa preparedness units, at precisely the wrongopen to potentially pushing the envelopeMay Revise to the January document to time.There is no level of planning, however,on remote hearings and voting, while thereflect tax receipts from April.With the for a true worldwide pandemic.CaliforniaAssembly has pretty much concluded thattax filing deadline extended to July 15, has fared better than much of the world, atsuch actions are not permitted under thehowever, the state will not have accurate least thus far, but we are working overtimestate constitution. revenue information until a month after to catch up on testing, hospital beds, andthe June 15 deadline.What has been clear the like. At the end of the day, it seems quite clearin Sacramento was acknowledged recently that 2020 will not be business as usual inby the Assembly Budget Committee: the There also is no civics textbook on how toSacramento, and the odds of a truncatedlegislature will have to adopt some form run governments in time of pandemic.Farsession obviously increase the longer theof pro-forma budget in June based upon from a students understanding of our three- session is in recess.Members are quietlythis years spending plan, and then adjust branch system of government, California isbeing told to reduce their bill packagesin August when revenue figures are in. now running on about a branch and a half.by perhaps 75-80%, taking the total fromAnd because state revenue tends to lag The legislature has been on joint recessaround 3000 bills to potentially 600-700.the economy, and because California is since March 19, and the state courts areThe best guess is that only bills dealing withdangerously dependent upon capital gains mostly closed, so Governor Newsom is inCOVID, other urgent matters, expiring sunsettaxes, it will put enormous pressure on not charge.The Governor has been receivingdates, and perhaps truly noncontroversialjust the 2020-2021 budge, but at least the quite positive reviews from members ofitems will be considered, with everythingnext one as well.both parties, but it will soon be necessaryelse put off until next year.It will be for the legislature to resume its oversightinteresting to see how if bills dealing withAn issue of great significance to CMA is and budget roles.Here is a brief rundownAB 5/Dynamex will be considered; thesea proposed trailer bill creating a state of where things stand as of the writing ofissues are very controversial and both sideslevel-CFPB in California, housed within the this column. of the independent contractor fights areDepartment of Business Oversight, which arguing that COVID proves the validity ofwould be renamed the Department of Legislature:By joint action, the Californiatheir positions. Financial Protection and Innovation.The Assembly and Senate are in recess until34-page draft of the proposed trailer bill Monday, May 4.Realistically, that date isBudget: There really are only two deadlinesmakes clear that virtually all providers of probably about 50-50, since a return toon the legislature imposed by the statefinancial products and services would be Sacramento seems unlikely if the stateconstitution: adopting a balanced budgetcovered by the new program, even if the remains under a stay at home order.by June 15, and adjourning the two-yearperson or entity already possesses a state Interestingly, the two houses in oursession by midnight, August 31 of even- license, such as a real estate broker.CMA bicameral legislature are taking slightlynumbered years.Every other deadline onhas been involved with a host of meetings different approaches to the recess.Thethe legislature is self-imposed, and mayin the Capitol on this proposal.It is unclear Senate is continuing to amend bills throughbe modified or waived by the Senate and the recess for example, while the AssemblyAssembly.Adoption of a state budgetcontinued on page 37Points of InterestSpring 2020Page 5'