Insights from the Legislative Landscape: Reviewing Bills and Budget Challenges for 2023-24 Session

CLFP has sorted through the thousands of new bills and has identified dozens that affect the industry including bills on energy conservation, electrical costs, air quality control, labor, and water. Notably, this year has also brought several new artificial intelligence (A.I.) bills as this technology becomes more prevalent in the workforce. CLFP members may have also seen a bill, AB 2066 (Reyes, D – San Bernardino), which would prohibit the use of methylene chloride in the manufacturing process of decaffeinated coffee. AB 2066 raises similar concerns to last year’s AB 418 (Gabriel, D – Encino) also known as the “Skittles ban bill.” Although problematic language was ultimately removed from AB 481, CLFP and fellow stakeholders are concerned that this new bill could establish a legislative trend within the state by codifying manufacturing processes or ingredients. CLFP is engaging on the bill and will keep membership informed of any important deadlines as the bill moves.

Members may have noticed that many of the new bills are in “spot-form” meaning the bill has been introduced without substantive language or statute changes. These bills are often introduced as a placeholder while the author (legislator) decides on final bill language. Spot bills must be amended by March 11 in the Assembly and March 20 in the Senate in order to proceed to their appropriate policy committee. These policy hearings are the first important step in the public process, and will ramp up in the coming weeks.  

As the legislative landscape develops, CLFP staff can begin evaluating our top priorities for the year. At this early phase, it is difficult to anticipate trends or inclinations within the two houses – especially considering the recent change in leadership. Last summer, Assemblymember Robert Rivas (D – Hollister) rose to the leadership position of Speaker in the Assembly. Earlier this year, Senator Mike McGuire (D – Healdsburg) succeeded Senator Toni Atkins (D – San Diego) as Senate President Pro Tempore. These leadership changes, along with a large projected budget deficit, may change party priorities and objectives.

Readers may recall from last month’s issue, Governor Newsom released a proposed January budget with a $38 billion deficit. On Tuesday, February 20, the Legislative Analyst’s Office (LAO) released an updated projection of $73 billion ($15 billion more than the original LAO projection of $58 billion) due to recent state revenue collection data. This deficit has already impacted and/or eliminated funding for bills that were passed last year. This does not bode well for any new programs or budget appropriations that this year may bring. Lawmakers will most likely have a difficult time passing any new bills with a fiscal appropriation since many funds are already allocated towards ongoing obligations.

CLFP staff has begun meeting with members to discuss these and many issues that membership will face this year. Committees such as the Legislative Affairs Committee, Energy and Resources Committee, and Air Quality Subcommittee have already had meetings this month with other committee meetings scheduled in the next few weeks. If you have any questions, please feel free to reach out to Katie Little: katie@clfp.com.