Pub. 2 2020-2021 Issue 3

16 themselves in a more advantageous position than many other industries due to an exchange, recorded on video, during a hearing on the DFPI proposal in the Assembly Banking and Finance Committee one day before the end of the session, where DBO officials clearly and expressly stated that they do not believe new car dealers are subject to DFPI oversight since other agencies already license them. The statement came af- ter Assemblyman Tim Grayson (D-Concord) asked, on camera, about dealer concerns and challenged the DBO official to ad- dress them. We are the only industry that was able to get this express statement from a DBO official during the proposal’s handful of hearings. Despite heavy industry opposition, along with opposition from many state lawmakers, the measure passed due to the Governor’s strong support. Some think it is possible that Richard Cordray, the previous head of CFPB under President Obama, may take the helm of DFPI considering that he testified in support of the measure the weekend be- fore its eventual passage. Agency leadership and priorities are details that will be unveiled in the coming months. SB 1383 – Significant Expansion of Family and Medical Leave Currently, under the California Family Rights Act (CFRA), California employers with 50 or more employees must provide 12 weeks of job protection to employees due to illness of themselves or a family member or to bond with a new child. A previous expansion, called the New Parent Leave Act, required employers with 20-49 employees to provide employees with 12 weeks of job protection for bonding with a new child. SB 1383 by Senator Hannah Beth Jackson (D-Santa Barbara) expands the coverage of this job-protected unpaid leave for both illness and baby bonding to employees at companies with five or more employees. CNCDA was part of a large busi- ness coalition opposing the measure, marked as a California Chamber of Commerce “Job Killer,” arguing that the new re- quirements will have a disproportionately negative impact on small businesses in the state at a time when they can least af- ford it. Despite opposition by Republicans and pushback from moderate Democrats, the measure passed the Assembly dur- ing the final seconds of the session. Once Governor Newsom signs the bill into law (which he has indicated he will do), it will become effective Jan. 1, 2021. Affected businesses will need to retain counsel to draft new leave policies and institute new leave procedures, and will need to approve, administer, and track employee leave under this expansion starting Jan. 1, 2021. Larger companies may also need to update their policies and procedures. Although the 2019-2020 legislative session is over, many policy negotiations will continue into the fall in advance of the 2021-2022 session. We can expect another few thou- sand bills to be introduced by California’s prolific legisla- tors in January 2021. 3 CONTINUED FROM PAGE 15 InsureExpress - Quick, simple and guaranteed insurance solutions for uninsured buyers. We provide exceptional service, a hands-on approach with a sense of urgency. We deliver training, income development and consulting services that improve your operations and results. OneSource Dealer Services LLC dba Cartel Marketing Serving California Dealers for over 30 years 800-999-5094 Call us today ONE STOP SHOP FOR YOUR AUTO DEALERSHIP NEEDS The Cartel Difference – Support. Premier Products. Training. Results.