In This Edition:
· Another Bureaucracy
· June Election
· Fatigue’s Role in Safety
· Social Security and Medicare Broke
· Classifications for Public Works Projects
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Another Bureaucracy Won't Build a Single Home
On July 1, Governor Gavin Newsom officially launched California's new Housing and Homelessness Agency, complete with a secretary, six deputy secretaries, communications staff, external affairs staff, legal counsel, advisors, and assistants. Newsom announced the reorganization plan a year ago after a stinging audit that showed little progress after spending billions on homelessness.
The annual salary bill for just these twelve senior officials is more than $2.1 million. Add pensions, health benefits, office space, support staff, travel, and overhead, and taxpayers will likely spend well over $3 million every year simply to operate the executive suite.
Perhaps that would be easier to accept if California had a proven record of success.
It doesn't.
In 2024, the California State Auditor concluded that the state had spent nearly $24 billion on homelessness programs over five years without consistently tracking whether the money produced results. The audit found that the state lacked reliable information about program costs, outcomes, and effectiveness, making it difficult—even for policymakers—to know which programs worked and which did not.
That audit wasn't written by political opponents. It came from California's own independent State Auditor.
Now, instead of demonstrating measurable improvements in housing production or reductions in homelessness, Sacramento has unveiled another organizational chart.
Of the many ways the scarcity of affordable housing affects most people, “the lines on the org chart” don’t crack the “top 100 list,” Sen. Christopher Cabaldon, a Napa Democrat, said of the governor’s proposal at a hearing.
Cabaldon noted that executive reorganizations are a semi-regular feature of California governance. The Business, Consumer Services, and Housing Agency is itself the product of a reorganization that spun off California’s independent transportation agency.
“The dance of the secretaries we do constantly, always with grand ambitions,” said Cabaldon. “Simply saying that it’s going to cause more focus, that it will be streamlined, that it will cause leadership-level action — but how?”
The question Californians should ask isn't whether these appointees are capable or well-intentioned. Many undoubtedly are. The real question is whether adding another cabinet agency, another secretary, more deputy secretaries, more communications staff, and more administrators will accomplish what billions of dollars and dozens of existing programs have failed to achieve.
Government agencies rarely measure success by eliminating themselves. They measure success by expanding responsibilities, hiring more staff, and requesting larger budgets.
Housing affordability will not improve because Sacramento has another deputy secretary. Homelessness will not decline because another communications office issues press releases.
Homes are built by reducing barriers to construction, shortening permitting timelines, lowering costs, and holding public programs accountable for measurable outcomes.
Until California can demonstrate that its existing billions in homelessness spending are producing results, taxpayers are justified in viewing another layer of bureaucracy not as a solution, but as another expensive promise.
The new Housing and Homelessness Agency should not be judged by the size of its executive staff or the polish of its organizational chart. It should be judged by one standard alone: are more Californians housed, and are fewer Californians homeless? If those numbers don't improve, this agency will simply become another line item in a long history of good intentions and disappointing results.
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June Election
The June election is over, except for the counting (by hand in Shasta), and there are a few races I’ll be watching in November.
CA 6 (Sacramento): One of the new Prop 50 districts drawn to give Democrats a new seat. Kevin Kiley (R I) leads with 47,165 votes. Second is Democrat Richard Pan with 45,008. Republican Michael Stansfield is at 39,118. This will probably be a Democratic pickup because FIVE Democrats ran in the primary, nearly eliminating Pan from the November runoff. This should be Pan’s win and third time in office.
CA 7 (Sacramento): This will be a Dem-on-Dem runoff in November. Incumbent Doris Matsui is in second place! Dem Mai Vang leads with 31%. Matsui could lose in November, but it will be expensive. Republicans got 36% of the votes in June and are more likely to vote for Matsui over Vang.
CA 14 (East Bay): This is Eric Swalwell’s old seat. Democratic State Senator Aisha Wahab leads with 38%, and Melissa Hernandez, another Democrat, has 17%, but it is unclear where voters will move.
AD 9 (Ripon): Assembly minority leader Heath Flora, who has been MIA from his district longer than Tom Kean Jr., is leading. This is a +10 R district, so Flora should win in November, but we can hope, right?
SD 4: But in one of the more interesting races, an incumbent will not make the runoff. State Senator Marie Alvarado-Gil, a Republican from Jackson, is in third place in the race for Senate District 4, which means she will not advance to the November general election. The race for the red-leaning district includes Democrat Jaron Brandon, a Tuolumne County supervisor. But Republican candidate Alexandra Duarte came in second and will probably pick up most of the Alvarado-Gil voters. This was the first time Alvarado-Gil has faced an election since switching parties from the Democratic Party to the GOP in 2024. This is an R+7 district, so Duarte will probably win in November.
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Study Links Construction Worker Fatigue to Unsafe Behaviors
- Physical fatigue strongly contributes to construction safety incidents by increasing the likelihood of unsafe worker behavior.
- The ASCE Library study evaluated this impact by monitoring three workers performing material handling tasks over three days.
- Results showed that unsafe actions increased notably after 30 minutes of strenuous manual work as physical fatigue accumulated.
- Continuous electrocardiogram data confirmed significant correlations between these workplace safety risks and specific cardiac variations.
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Social Security and Medicare Trust Funds Will Be Depleted Within the Next Decade
The Social Security and Medicare Trustees released their annual reports on the programs’ financing, showing that the future of these vital programs remains at risk. The Social Security Trustees note that the Old-Age and Survivors Insurance (OASI) Trust Fund is expected to become depleted in 2032, one year earlier than projected in the last two reports and the same as the Congressional Budget Office projected earlier this year. Upon depletion of the OASI Trust Fund in just six years, millions of older Americans would face an automatic cut of 22 percent to their Social Security retirement benefits.
More
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Law Requires Awarding Agencies to Follow CSLB Regulations When Determining Classifications for Public Works Projects
The Contractors State License Board (CSLB) is providing additional guidance on following licensing regulations for public works projects as a result of Senate Bill 1455 (2024).
SB 1455 amended California Business and Professions Code (BPC) §7059 to clarify that awarding authorities must ensure that contractors bidding on public works projects hold the license classification appropriate for the work being performed, in accordance with CSLB regulations. The italicized information below in BPC 7059 (b)(1) shows what was changed in the law.
- In public works contracts, as defined in Section 1101 of the Public Contract Code, the awarding authority shall determine the license classification necessary to bid and perform the project, in accordance with the classifications prescribed by this article and as set forth in Division 8 of Title 16 of the California Code of Regulations.
What Changed
SB 1455 clarifies that awarding authorities must determine the required license classification using CSLB’s classification descriptions in Division 8 of Title 16 of the California Code of Regulations. Previously, the law required proper licensure but did not expressly connect to CSLB’s classification descriptions.
The classification descriptions noted in Division 8 of Title 16 of the California Code of Regulations are included in CSLB’s Description of Classifications publication, which awarding agencies should review in determining the most appropriate classification or classifications.
In addition, CSLB’s Fast Facts: What Jobs "B" General Building Can/Cannot Perform provides further clarification to help awarding authorities determine whether a “B” is appropriate for a project. While it is CSLB’s largest classification, the “B” is not always suitable depending on the project. “B” General Building may not be appropriate if the work does not involve the construction of a structure involving framing or carpentry, does not require multiple building trades, and is not incidental to a project.
What This Means
Awarding authorities must review the project scope and select the appropriate classification that best aligns with the work described using CSLB’s Description of Classifications.
Contractors are responsible for ensuring they hold the appropriate license classification at the time of bid and use properly licensed subcontractors for work outside their classification. Failure to do so may affect bid eligibility and could result in enforcement action under existing contractor license laws.
For more information or questions regarding classification determinations, contact CSLB’s Classification Deputy at Classifications@cslb.ca.gov.
In This Edition:
· Election 26: Close Races
· Multiemployer Pension Withdrawals
· Workplace Violence Prevention
· Energy Storage in AZ
· Bills!
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June Election
· 36 days until the Secretary of State certifies election results
· 23,155,447 registered voters in California
· 33.2% voter turnout in the last gubernatorial primary election in 2022
· 152 days until the general election
The June election is over, except for the counting (by hand in Shasta), and there are a few close races.
HR 6 (Sacramento): One of the new Prop 50 districts drawn to give Democrats a new seat. Kevin Kiley (R I) is ahead with 28,000 votes. In second is Republican Michael Stansfield. If this ½ stands, it will deny the Democrats a pickup. This is because FIVE Democrats ran in the primary (cue the circular firing squad emoji).
HR 7 (Sacramento): This could turn out to be a Dem-on-Dem runoff in November. Incumbent Doris Matsui is clearly ahead, but second-place Dem Mai Vang leads the Republican Zach Wooden by less than 1,000 votes. Matsui will win in November, but if Vang ends up in the runoff, it will be expensive.
HR 14 (East Bay): This is Eric Swalwell’s old seat. State Senator Aisha Wahab leads with 34%, but one Dem and two Republicans are within 900 votes of each other. Wahab will win, but if Melissa Hernandez, the D right now in second, prevails, this could be $$.
HR 16 (South Bay): Former San Jose Mayor (no, not Mahan) incumbent Sam Liccardo will win in November, but two Republicans are within 500 votes of each other.
SD 24 (Los Angeles): This open D+29 seat has three Dems within 5,000 votes
AD 9 (Ripon): Assembly minority leader Heath Flora, who has been MIA from his district longer than Tom Kean Jr., is leading, but with two candidates for second within 500 votes of each other; one D, one R. This is a +10 R district, so Flora should win, but we can hope, right?
SD 4: But in one of the more interesting races, an incumbent will probably not make the runoff.
State Senator Marie Alvarado-Gil, a Republican from Jackson, is in third place in the race for Senate District 4, which puts her at risk of not making it to the November general election. The race for the red-leaning district includes Democrat Jaron Brandon, a Tuolumne County supervisor.
Early results show Brandon leading, with Republican candidate Alexandra Duarte trailing by more than six percentage points and Alvarado-Gil trailing Duarte by nearly five percentage points. This is the first time Alvarado-Gil has faced an election since switching parties from the Democratic Party to the GOP in 2024. This is an R+7 district, so Duarte will probably win in November.
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SCOTUS Addresses Rules for Withdrawals from MEPPs
The US Supreme Court recently unanimously held that the actuarial assumptions underlying the calculation of an employer’s withdrawal liability from an underfunded multiemployer pension plan can be selected after the date the employer left the plan.
Story
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California Releases Further Revisions to Draft General Industry Workplace Violence Prevention Standard
California recently released the latest iteration of its proposed regulatory standard to implement the state’s law imposing workplace violence prevention safety requirements on nearly every employer in California. A period of public comment on the proposal and the new revisions is open through June 1, 2026. Employers with any employees in California may consider whether to comment. A final version, accompanied by formal rulemaking support documents, is expected to emerge in the coming months, likely with little variation from the recently released proposal. Employers can prepare for compliance by reviewing how the recent version differs from the requirements already in effect under Labor Code § 6401.9.
More
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Arizona Ranks No. 2 in US for New Storage Capacity Added This Year
The state installed 940 megawatt-hours in the first quarter, trailing only Texas. Arizona now has more than 20 gigawatt-hours of utility-scale storage installed.
Story
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Bills
Here’s a look at bills WECA is supporting and opposing that had votes in the last two weeks.
AB 1235 (Rogers, D) Prohibits a contractor from being prequalified for, shortlisted for, or awarded a design-build contract with the Trustees of the California State University unless the contractor provides an enforceable commitment to the trustees that the contractor and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract. (Based on 01/22/2026 text) WECA Position: Oppose
06/03/26 - SEN. ED. (Y:5 N:2 A:0) (P)
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AB 1707 (Davies, R) Introduces provisions for electricians to apply for certification and exams electronically, and also renew certifications online. Additionally, it allows individuals who fail the certification exam to promptly re-register and retake it at the next available slot. (Based on 02/04/2026 text) WECA Position: Support
05/28/26 - ASM. THIRD READING (Y:77 N:0 A:3) (P)
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AB 1813 (Ward, D) Existing law requires the California Public Utilities Commission (CPUC) to evaluate existing customer community renewable energy programs to modify and/or terminate them. It also requires the CPUC to determine, based on specified criteria, whether it is beneficial to ratepayers for an electrical corporation to develop a new tariff or modify an existing one for community renewable energy, including ensuring that at least 51% of the energy capacity serves low-income customers. This bill extends the operation until 2027 (Based on 04/27/2026 text) WECA Position: SIA (support if amended)
05/22/26 - ASM. THIRD READING (Y:51 N:8 A:21) (P)
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AB 1859 (Ortega, D) This bill requires that awarding bodies or owners grant access to joint labor-management committees (JLMCs) to "investigate" prevailing wage and apprenticeship violations. These committees can take legal action if access is denied. Additionally, the bill specifies that courts may impose civil penalties for violations. (Based on 05/18/2026 text) WECA Position: OUA (oppose unless amended)
05/27/26 - ASM. THIRD READING (Y:60 N:14 A:6) (P)
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AB 1860 (McKinnor, D) Authorizes a county office of education (COE) to use the design-build and progressive design-build method for facilities projects in excess of $1 million and $5 million, respectively, subject to approval of the county superintendent of schools, and provides the county superintendent of schools with exclusive authority to award design-build contracts. Projects include all construction, alteration, demolition, installation, repair, and maintenance work that is subject to a skilled and trained workforce (including subcontractors, unless the school district has entered into a project labor agreement) for public works projects over $5 million. (Based on 04/13/2026 text) WECA Position: Oppose
06/03/26 - SEN. ED. (Y:5 N:1 A:1) (P)
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AB 1976 (Wicks, D) Bill repeals and replaces the Pedestrian Mall Law of 1960 with the Pedestrian Mall Law of 2026. The bill exempts the establishment or expansion of pedestrian malls from CEQA while requiring that such projects meet the same local-agency and labor-related conditions that apply to other transportation exemptions, like STW, which is waived with a PLA. (Based on 05/21/2026 text) WECA Position: SIA (support if amended)
05/28/26 - ASM. THIRD READING (Y:49 N:19 A:12) (P)
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AB 2033 (Papan, D) This bill would allow city councils to award yearly job-order contracts, each capped at $500,000, for repair, remodeling, or repetitive work based on unit prices. These contracts cannot be used for new construction projects. They must be awarded to the lowest responsible bidder and be based on standard plans and specifications. Requires City JOCs to use a STW unless there is a PLA. (Based on 05/22/2026 text) WECA Position: OUA (oppose unless amended)
05/27/26 - ASM. THIRD READING (Y:69 N:1 A:10) (P)
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AB 2139 (Garcia, D) This bill would expand the definition of “exempt surplus land” to include land owned by the City of Ontario that is located within the sports and entertainment district commonly known as Ontario Sports Empire, subject to a land use plan formally adopted by the City of Ontario for the coordinated development of the district. (Based on 04/16/2026 text) WECA Position: SIA (support if amended)
05/28/26 - ASM. THIRD READING (Y:70 N:1 A:9) (P)
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AB 2152 (González, Mark, D) This bill makes “essential local fire station projects” eligible for judicial streamlining under the California Environmental Quality Act (CEQA) only if they have a PLA with a $50,000 threshold for any construction. (Based on 05/18/2026 text) WECA Position: Oppose
05/27/26 - ASM. THIRD READING (Y:74 N:1 A:5) (P)
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AB 2329 (Fong, D) Existing law sets forth requirements for the disposal of specified surplus residential property in the City of South Pasadena. This bill would require the fair market value offered to present tenants to be based on an appraisal of the property. Support if author deletes CPR waiver on PLA projects. (Based on 04/13/2026 text) WECA Position: SIA (support if amended)
05/27/26 - ASM. THIRD READING (Y:79 N:0 A:1) (P)
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AB 2390 (Schiavo, D) Modifies provisions of the streamlined, ministerial review process established by SB 423 (Wiener), Chapter 778, Statutes of 2023, related to environmental eligibility, project modifications, and approval tolling timelines. (Based on 04/22/2026 text) WECA Position: SIA (support if amended)
05/21/26 - ASM. THIRD READING (Y:69 N:0 A:11) (P)
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AB 2484 (Alvarez, D) This bill would authorize those taxes to be imposed by a qualified voter initiative in the San Diego Metropolitan Transit System (MTS). Existing law requires MTS work to be performed with STW unless under a PLA (Based on 05/18/2026 text) WECA Position: Oppose
05/26/26 - ASM. THIRD READING (Y:46 N:21 A:13) (P)
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AB 2748 (Quirk-Silva, D) Exempts new or existing affordable housing projects for which a permit application is submitted between January 1, 2025, and December 31, 2035, from specified electric vehicle (EV) charging receptacle installation requirements in the 2025 California Green Building Standards Code, including any subsequent editions, and instead requires the affordable housing project to comply with the EV charging receptacle installation requirements in the 2022 edition of the California Green Building Standards Code. (Based on 05/18/2026 text) WECA Position: Support
05/26/26 - ASM. THIRD READING (Y:58 N:4 A:18) (P)
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SB 909 (Smallwood-Cuevas, D) This bill would exempt contractor DIR registration fee adjustments from the APA, remove the $800 cap, and eliminate the publishing requirement. It also mandates that contractors who violate prevailing wage laws face increased penalties, with 50% of the penalties directed to the State Public Works Enforcement Fund. SB 909 would increase daily civil penalties for prevailing wage, certified payroll, and related violations. This increases further potential financial exposure for contractors, even for clerical or unintentional errors. Prime contractors remain liable for subcontractor compliance, compounding the risk. (Based on 05/14/2026 text) WECA Position: Oppose
05/26/26 - SEN. Senate 3rd Reading (Y:29 N:7 A:4) (P)
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SB 952 (Laird, D) This bill would require the Department of Water Resources, in conducting procurement, to consider portfolio diversity, resource type, location, and hours of typical peak operation. The bill would authorize, on and after January 1, 2036, excess procurement, as defined, of eligible renewable energy resources and zero-carbon resources in one year to be applied to any subsequent year’s obligation (Based on 05/18/2026 text) WECA Position: SIA (support if amended)
05/26/26 - SEN. Senate 3rd Reading (Y:36 N:0 A:4) (P)
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SB 954 (Blakespear, D) Bill narrows eligibility and imposes a series of new requirements to use a CEQA exemption for advanced manufacturing projects. These include additional setback standards, community benefit agreements, zero-emission backup generation mandates, stringent air limits, LEED Gold certification, and even a requirement for gubernatorial certification. (Based on 05/14/2026 text) WECA Position: OUA (oppose unless amended)
05/27/26 - SEN. Senate 3rd Reading (Y:23 N:9 A:8) (P)
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SB 983 (Weber Pierson, D) This bill would establish a pilot program to authorize the San Diego Unified Port District to use job order contracting as a procurement method but subject to the ports PLA (Based on 04/22/2026 text) WECA Position: OUA (oppose unless amended)
05/26/26 - SEN. Senate 3rd Reading (Y:29 N:8 A:3) (P)
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SB 1145 (Grayson, D) Excludes from the Surplus Land Act dispositions for military base reuse projects and streamlines environmental review for the Concord Community Reuse Project. (Based on 04/28/2026 text) WECA Position: OUA (oppose unless amended)
05/19/26 - SEN. Senate 3rd Reading (Y:39 N:0 A:1) (P)
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SB 1154 (Reyes, D) This bill gives "best value" contracting option to community college districts for projects over $1,000,000. It includes bad safety language and STW mandates unless covered by a PLA. It mandates a report to the Legislature by January 1, 2030, on its utilization. These provisions will expire on January 1, 2031. (Based on 02/18/2026 text) WECA Position: Oppose
05/19/26 - SEN. Senate 3rd Reading (Y:29 N:9 A:2) (P)
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SB 1185 (Cortese, D) The bill extends the skilled and trained workforce (STW) requirement to facilities related to pharmaceutical research, development, and production. It mandates monthly compliance reports to the Labor Commissioner. If contractors or subcontractors violate this workforce requirement, they face civil penalties of up to $5,000 per month for a first violation and up to $10,000 per month for subsequent violations. (Based on 05/14/2026 text) WECA Position: OUA (oppose unless amended)
05/19/26 - SEN. Senate 3rd Reading (Y:29 N:7 A:4) (P)
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SB 1256 (Jones, R) Provides that an action to enforce the Subdivision Map Act cannot be commenced or sustained if it raises substantially similar issues or claims to an action related to the California Environmental Quality Act. Requires a PLA to be eligible. (Based on 04/30/2026 text) WECA Position: Oppose
05/27/26 - SEN. Senate 3rd Reading (Y:33 N:0 A:7) (P)