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Governor Newsom Survives Recall Election

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Latest legal news and recent law changes.

Governor Newsom Survives Recall Election

With 70% of the California counties reporting, not enough outstanding votes remain to recall the sitting Governor, therefor solidifying that Gavin Newson has survived the 2021 Recall Election.

The currently tally of votes shows 5,840,283 votes against Governor Newson’s recall and 3,297,145 in favor. Republican challenger Larry Elder received 2,373,551 votes, or 46.9% votes over all to be the next governor.

This is California’s 179th attempted political recall since 1913 (source).

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COVID News

Workplace Vaccination Requirements: All Employers With 100 Workers or More Must Require Covid-19 Vaccinations or a Weekly Negative Test Result

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Latest legal news and recent law changes.

Workplace Vaccination Requirements: All Employers With 100 Workers or More Must Require Covid-19 Vaccinations or a Weekly Negative Test Result

On September 9th, 2021, President Biden announced incoming restrictions on non-vaccinated individuals in the workplace. Private employers with 100 or more employees must require their workers to be either be: (i) fully vaccinated or (ii) have them obtain weekly COVID-19 tests confirming they are not live carriers of the virus. Employers must take note: Businesses will also be required to provide paid leave for employees to become vaccinated.

Referred to as the “Covid-19 Mandate,” this requirement has yet to be officially implemented and officials are awaiting the Executive Order as well as the new Emergency Temporary Standard by the Occupational Safety and Health Administration, which will develop mechanisms for implementation. It is anticipated that there will be various lawsuits challenging the Executive Order, the fate of which is unknown. In theory, legal precedent advises that the Covid-19 Mandate will be held constitutional [i.e., Jacobson v. Massachusetts 197 U.S. 11 (1905)]. However, as has been seen with the Supreme Court’s decision ending the CDC’s eviction moratorium, and the Court’s refusal to block the recent controversial Texas law, the current Supreme Court is anything but predictable; and it could potentially strike down the Covid-19 Mandate based on the Tenth Amendment to the Constitution (State Sovereign Immunity). This blog will be updated as details emerge.

 


For more details, contact Burton Law Firm at: 916.822.8700 or info@lawburton.com or, see details at: https://www.whitehouse.gov/covidplan/.

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COVID News

Supreme Court Ends CDC Pandemic Residential Eviction Moratorium

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Latest legal news and recent law changes.

Supreme Court Ends CDC Pandemic Residential Eviction Moratorium

In a 6-3 decision on party lines, Alabama Assn. of Realtors v. Department of Health and Human Servs., the Supreme Court struck down President Biden’s COVID-19 eviction ban. This decision was unexpected as the Court’s upheld the ban placed by the prior administration which expired last July. The Order was unsigned (“Per Curiam”). Although the lack of a signature does not affect the enforceability of the Order, it is an unusual circumstance seemingly acknowledging the controversial nature of the ruling.

Historically, the Court is relatively flexible toward responses to public emergencies. However, the conservative majority rued such flexibility was no longer warranted. Specifically, that “[v]accine and rental-assistance distribution had improved since the stay was entered, while the harm to landlords had continued to increase.” [Alabama Assn. of Realtors, 584 U.S. at 4-5)].  The dissent countered with statistics, warning that this ruling risks the reemergence of COVID-19 mutations as 92% of U.S. counties have “substantial” and “high” levels of coronavirus transmission with national “average new daily hospital admissions at 12,209.” [Id at 14].

The majority opinion ultimately voided the moratorium under the doctrine of separation of powers, arguing that the 1944 law that delegated power to the CDC is far narrower than what the current administration maintains. Simply put, the Court ruled that the Executive branch did not have legal authority to ban evictions, and that Congress, and Congress alone, could authorize this ban.

As such, please be advised that the ban on evictions is unconstitutional due to its origin not its substance. Should Congress pass a law identical to the CDC’s moratorium, a ban on evictions would most likely be held constitutional.

The full ruling can be read HERE.

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COVID News

U.S. Senate Passes $1 Trillion Infrastructure Bill

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Latest legal news and recent law changes.

U.S. Senate Passes $1 Trillion Infrastructure Bill

On August 10th, 2021, with 68 yes votes vs. 29 no votes, the United States Senate passed the INVEST in America Act (H.R. 3684), a $1 trillion infrastructure revamp that has been a signature component of President Biden’s economic agenda. The bill constitutes a significant victory for the Biden Administration and received bipartisan support in its passing by the Senate.

More than half of the funds will go specifically to improvements in transportation, broadband telecommunications infrastructure, and public utilities. The bill also includes funding designated to combat climate change in the form of “publicly accessible electric vehicle charging infrastructure, hydrogen fueling infrastructure, propane fueling infrastructure, and natural gas fueling infrastructure[.]” Specifically, the bill approves spending on the following:

  • $11 billion for road safety;
  • $15 billion on alternative fuel based vehicle infrastructure;
  • $17 billion toward port improvements;
  • $17 billion toward airports;
  • $21 billion on environmental reclamation;
  • $39 billion for public transit revitalization;
  • $66 billion to expand passenger rail lines;
  • $50 billion for flood and other natural disaster protection;
  • $55 billion in clean water distribution;
  • $65 billion in broadband infrastructure;
  • $73 in clean energy conversion; and
  • $110 billion for roads and bridges.

Despite already having passed the House, the bill must return to the House to be reconciled with the Senate’s version before it can be sent for President Biden’s signature. This is not expected to occur until September 20th, but it is expected to pass the House again and then proceed to the President’s desk to be signed into law.

The full bill can be read here. For more information, please contact the Burton Law Firm or your local congressperson.

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COVID News

Public Mask Mandate Reinstatement

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Latest legal news and recent law changes.

Public Mask Mandate Reinstatement

On July 29, the Sacramento County Health Office issued  a Health Order, effective July 30, requiring masks to be worn indoors in public settings. This order comes because of an almost 300% rise in the number of hospitalizations for COVID-19 in the last month since the statewide restrictions were lifted. According to the order, 64.8% of positive COVID-19 tests in Sacramento County were found to be the Delta variant that is currently causing surges in COVID-19 cases all over the world. This order also references the recent CDC and California Department of Public Health recommendations to wear face coverings in indoor public settings, elevating the recommendations to a mandate.

The order requires:

  • Masks to be worn in all indoor public venues, regardless of one’s vaccination status.
  • Businesses to require face coverings indoors, and to post visible signage at all entry points to indoor settings stating the mask requirements.
  • All attendees of “Indoor Mega-Events” (gatherings of 5,000 or more attendees) to wear face coverings.
  • All attendees of “Outdoor Mega-Events” (gatherings of 10,000 or more attendees) to wear face coverings.

The entire order can be read on the Sacramento County Website linked here. Sacramento County Order of the Health Officer – 07-29-2021.pdf (saccounty.net)

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COVID News

The American Families Plan: President Biden’s Next Step

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Latest legal news and recent law changes.

The American Families Plan: President Biden’s Next Step

On April 28, 2021, President Biden unveiled the American Families Plan. This plan, if adopted in its entirety, would make significant changes to childcare, education, family and medical leave, and tax credits for low-income households. Many of the programs that it would expand would be funded via higher taxes on high income households[1], as well as increased enforcement of current tax policies via additional funding to the IRS. The White House says additional IRS funding would “go toward enforcement against those with the highest incomes. . . . Additional resources would focus on large corporations, businesses, and estates, and higher-income individuals.”[2] This plan will also limit 1031 like-kind exchanges above $500,000 in deferred capital gains, end the preferred treatment of carried interest, and make the 2017 tax law’s limitation on excess losses that applies to non-corporate income permanent.

The American Families Plan will focus on providing the following benefits:

  • Childcare, in the form of universal prekindergarten for children 3 and 4 years old.
  • Strengthening education by providing better training for teachers, and by providing 2 years of free community college following high school.
  • Decreasing food insecurity of children, by providing free meals for children in high-poverty school districts, and by expanding access to summer EBT (Electronic Benefits Transfer) programs—programs that provide increased access to SNAP (Supplemental Nutrition Assistance Program) benefits.
  • Reforming unemployment insurance, by putting money towards “unemployment insurance system modernization, equitable access, and fraud prevention”[3]
  • Creating a national paid family and medical leave program.
  • Granting a variety of tax credits to low-income households with children.

This legislation comes as the third installment of Biden’s “Build Back Better” plan. Build Back Better consists of a series of legislation started with the American Rescue Plan that he has claimed is intended to help many Americans who have been impacted negatively by the pandemic as well as assist people who were struggling even before COVID-19 was a factor. It is still early to say if it will pass or not but the American Families Plan indicates what Biden hopes to accomplish during his time as President.


[1] Raise of the top marginal income tax from 37% to 39.5% (applies to incomes over $425,700 for single filers and $509,300 for joint filers). Taxing long term capital gains and qualified dividends as ordinary income for taxpayers with taxable income over $1 million. Taxing unrealized gains at death for unrealized gains above $1 million for single filers and 42 million for joint filers. Apply a 3.8% net investment income tax (NIIT) to active pass-through business income above $400,000. Pass-through businesses include partnerships, sole proprietorships, and S corporations.

[2] The White House Briefing Room Statements: “Fact Sheet: The American Families Plan” 4/28/2021

[3] The White House Briefing Room Statements: “Fact Sheet: The American Families Plan” 4/28/2021

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News

Good News for New LLCs

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Latest legal news and recent law changes.

Good News for New LLCs

Every new business must decide its form of ownership. From sole proprietorship to corporation, there are several ways to organize your business, each with its own advantages and disadvantages. California recently provided a new advantage for limited liability companies (LLCs), limited liability partnerships (LLPs), and limited partnerships (LPs). Normally, a minimum franchise tax of $800 is imposed annually on the aforementioned entities. However, California will now waive the minimum tax for the first year of the entity’s existence, under two conditions.

First, the LLC, LLP, or LP in question must be registered with the California Secretary of State on or after January 1, 2021 but before January 1, 2024. Second, the waiver applies only to business entities with gross receipts of less than $250,000 for the year (rounded to the nearest dollar). The tax is scaled to gross receipts (not net income or profits), with $900 incurred for gross receipts from $250,000 to $499,999, $2,500 for gross receipts from $500,000 to $999,999, $6,000 for gross receipts from $1,000,000 to $4,999,999, and $11,790 for gross receipts of $5,000,000 or more.

To summarize:  If the LLC was registered on or after January 1, 2021, and has annual gross receipts of $249,999 or less, the minimum tax of $800 would be waived.  However, if the same LLC happened to have annual gross receipts of $250,000, it would owe a minimum tax of $900.  

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News

United States Supreme Court Strikes Down California’s Pro Bono Disclosure Laws

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Latest legal news and recent law changes.

United States Supreme Court Strikes Down California’s Pro Bono Disclosure Laws

In a 6-3 vote, the US Supreme Court struck down a California law that forced non-profits to annually disclose their major contributors (i.e. those who contribute more than $5,000). The case, Americans for Prosperity Foundation v Bonta, was split down liberal/conservative lines, where Chief Justice Roberts wrote for the plurality, holding that the disclosure requirement infringed on the Freedom of Association found under the First Amendment.

Drawing from history, Chief Justice Roberts pointed to how states such as Alabama had previously used similar laws to punish contributors to nonprofits that enriched the lives of minorities, such as the NAACP. Even though sent to the state government confidentially, Chief Roberts highlighted the potential that these records could be accidentally leaked or posted online, and therefor risked reprisal to those who contributed to unpopular organizations. He acknowledged these laws were created in California to fight fraud; however, he then pointed to the alleged lack of evidence that California’s law alone had successfully assisted with any “investigative, regulatory or enforcement efforts.”

Dissenting opinions stressed the incompatibility with using judicial precedent meant to protect civil-rights offences to those created to assist with financial fraud, as well as the impossibility to provide evidence that this law, as one tool of many, to fight fraud was not helpful. However, the Court was obviously not swayed. Therefore, for now, non-profits will not need to provide California with their list of donors. Even so, this list will still likely be required for the federal government, i.e. the IRS. As such, the administrative perks of having this law struck down is so far seen to be minimal.

 

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Current Legality of Automatic Firearms in California

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Latest legal news and recent law changes.

Current Legality of Automatic Firearms in California

In 1989, California passed the Roberti-Roos Assault Weapons Control Act (codified as Cal. Penal Code §§ 30500-31115) which, in effect, made it illegal to own or semi-automatic firearms (they were classified as assault weapons). Currently referred to Assault Weapons Control Act (“AWCA”) this ban has been challenged multiple times in its history and continues to be challenged today. In Kasler v. Lockyer (2000) and Harrott v. Kings County (2001), the California Supreme Court upheld the AWCA with relatively minor adjustments due to vagueness within the law.[1] Dissatisfied with California state court rulings, the AWCA began to be challenged in federal court under Second Amendment defenses.

Perhaps the most memorable, as well the most recent, federal case is Miller v. Bonta (2021).[2] In Miller, Judge Roger Benitez compared the AR-15 rifle to the Swiss Army Knife, calling it “a perfect combination of home defense weapon and homeland defense equipment”.[3] The Miller Court proceeded to declare the AWCA unconstitutional under Second Amendment stating “[t]he banned “assault weapons” are not bazookas, howitzers, or machineguns…[t]hose arms are dangerous[.]” Though declared unconstitutional, the Miller Court’s order was “stayed pending resolution of Rupp v. Bonta, No. 19-56004” by the 9th Circuit on June 21.[4] Rupp is a similar case which, in turn, has been “held in abeyance” until the resolution of Duncan v. Becerra, Docket No. 19-55376.[5] Duncan was decided on August 14, 2020 by the 9th Circuit invalidating the AWCA only to vacate its decision on February 25, 2021 in preparation for an en blanc 9th Circuit decision. Though confusing, what this means is that the fate of the AWCA will likely be decided by the 9th circuit in their en blanc (en blanc meaning, all judges of a particular court will hear the case appeal) decision of Duncan v. Becerra, not rather than Miller v. Bonta.

In other words, for now, AWCA is in full effect and the AR-15 rifle remains banned. [*The Burton Law Firm is an amalgamation of various attorneys with various beliefs and opinion. The firm takes no political position and merely provides analysis of the current law.] For more information, contact info@burtonlawfirm.com or call 916-822-8700 for a consultation.

 


[1] Kasler v. Lockyer, 23 Cal. 4th 472 (2000); Harrott v. Kings County 25 Cal. 4th 1138 (2001).

[2] Miller v. Bonta, Case No. 19-cv-1537-BEN (JLB) (S.D.Cal. 2021). Available here.

[3] Id at 1

[4] http://cdn.ca9.uscourts.gov/datastore/general/2021/06/22/21-55608-order.pdf.

[5] https://michellawyers.com/wp-content/uploads/2021/03/2021-02-25-Order-Holding-Case-in-Abeyance-Pending-Duncan.pdf.

 

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COVID News

Covid is Down But Not Out: Osha’s Guidance for Your Employees

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Latest legal news and recent law changes.

Covid is Down But Not Out: Osha’s Guidance for Your Employees

On June 15th, OSHA released new guidance for employers that brings them in line with the recent CDC guidance released on May 28th. This guidance allows vaccinated workers in all industries except the medical field to go back to work without wearing a mask, unless required by federal, state, local, tribal, or territorial laws, rules, and regulations.

For unvaccinated workers, OSHA still advises that masks be worn and social distancing be followed. In workplaces where all employees are fully vaccinated, most employers no longer need to take steps to protect workers from COVID-19 exposure. If there are unvaccinated employees in the workplace, steps do need to be taken to protect those employees. OSHA points to 11 mitigation measures that they advise employers to take:

  1. Grant PTO for employees to be vaccinated.
    1. They also note that businesses with fewer than 500 employees may be eligible for tax credits based on PTO given to employees to get vaccinated.
  2. Instruct any workers who are infected or unvaccinated workers who have had close contact with an infected individual to stay home from work.
  3. Implement physical distancing for unvaccinated and at-risk employees in all communal areas.
  4. Provide face coverings for unvaccinated and at-risk employees.
  5. Educate and train workers on COVID-19 policies and procedures in languages they understand.
  6. Suggest that unvaccinated customers, visitors, or guests wear face coverings.
  7. Maintain Ventilation Systems.
  8. Perform routine cleaning and disinfection.
  9. Record and report COVID-19 infections and deaths.
  10. Implement protections from retaliation and set up an anonymous process for workers to voice concerns about COVID-19 related hazards.
  11. Follow other applicable mandatory OSHA standards, including: respiratory protection, sanitation, protection from bloodborne pathogens, and OSHA requirements for employee access to medical and exposure records.

Some people will still choose to wear masks in the workplace, maybe to protect someone close to them, or maybe because it makes them feel comfortable. Regardless of the reason, it is important to respect the choices that others make regarding their safety.  This has been a trying time, and it is not always possible to know the circumstances that others are dealing with. Be kind and stay strong.