Legislative Update
By Mariko Yoshihara, CELA Legislative Counsel and Policy Director

Governor Signs State Budget Providing Boost to Equal Access Fund and Strategic Labor Enforcement, Courts Still Underfunded

Mariko Yoshihara

Governor Jerry Brown signed a $183 billion state budget on June 27th, which included significant increases to legal aid organizations and strategic labor enforcement, but still did not provide adequate funding for our court system. The Chief Justice issued a statement explaining that she was “disappointed that our underfunded court system did not receive more help. Chronic underfunding of the courts unfairly affects members of the public seeking their day in court. Trial courts receive a little more than a penny for every general fund tax dollar, and in the past, the judicial branch has had funds swept to support the state budget during times of crisis. Now the courts have an ongoing funding crisis, new laws are added annually, there are more complex cases, but there is no stable funding solution for the judicial branch and the people we all serve.”

The Budget Act of 2017, signed into law by Governor Brown, provides a total state operating budget of $3.7 billion for the judicial branch, which includes $70.7 million in new funding. The additional funding will be used to replace the outdated case management system, to implement and administer a statewide electronic filing program, and to improve language access, among other things. Significantly, the Budget also provides an additional $10 million for the Equal Access to provide grants to legal service agencies and programs that offer legal assistance in civil matters to low-income Californians. The Budget also includes $45 million to expand the availability of legal services for people seeking naturalization services, deportation defense, or assistance in securing other immigration services and remedies.

The Division of Labor Standards Enforcement (DLSE) will receive an additional $4.6 million and 31 new positions, increasing to $11.4 million and 82.5 position in 2020-21 ongoing, to implement a strategic enforcement plan to combat wage theft and other labor law violations in specified industries known to have significant non-compliance with the state’s labor laws.

As part of one of the budget trailer bills (these are bills that provide implementing language for the State Budget), the legislature approved language that would require at least 25 percent of cy pres awards to be transmitted to the Equal Access Fund and another 25 percent deposited in the Trial Court Improvement and Modernization Fund, for new or expanded collaborative courts or grants for Sargent Shriver Civil Counsel projects. The remaining 50 percent of the funds would continue to be administered under current law. Some non-profit organizations are opposed to this proposal and therefore if the trailer bill is signed into law, this specific provision may be reconsidered during the summer.

San Francisco Passes Measure to Prohibit Employers from Asking About Previous Pay

On June 27th, San Francisco supervisors voted unanimously to ban employers from asking job applicants about their prior salary during the hiring process. This bill was modeled after legislation CELA co-sponsored at the state level, but was vetoed by Governor Brown. The new San Francisco ordinance will apply to all employers in San Francisco, including city contractors and subcontractors. By prohibiting employers from asking about prior salary, women will have a better opportunity to close earning gaps during salary negotiations and employers will be compelled to use objective and unbiased measures to evaluate candidates during the hiring process.

This year the California legislature reintroduced a new version of the previously vetoed legislation to ban employers from asking about prior salary, which now has bipartisan support and is a Legislative Women’s Caucus priority. The bill is expected to be back on the Governor’s desk in September for final approval, along with two other pay equity bills that would clarify that the Fair Pay Act covers public employees and that would require very large employers to submit information on the company’s gender wage gaps to the state.

For a complete list of bills that CELA is tracking, please visit www.cela.org/legislation or contact mariko@cela.org.