California Governor Gavin Newsom (D) vetoed a bill that the ABC California chapters have been fighting for months. In its original form, SB 984 would have mandated PLAs on any and every state-procured project over $35M, in line with the threshold set by the Biden pro-PLA policy on federal contracts of $35M or more.
ABC’s campaign since March resulted in the bill getting watered down significantly to a new measure that would require PLAs on just two to three projects in just two state agencies (four to six PLA projects total). While the chapter was pleased with passage of a watered-down bill, they targeted Gov. Newsom for an outright veto.
Surprisingly, in this 9/29 veto message, Governor Newsom, one of the most liberal governors in the country with strong WH political aspirations, conceded that GMPLAs increase costs: “While I am generally supportive of PLAs as an option for public works projects, the new requirements proposed in this bill could result in additional cost pressures that were not accounted for in this year’s budget.”
If you are keeping track at home, earlier this summer District of Columbia Mayor Bowser (D) rejected DC Council’s legislation expanding its pro-PLA statute after an ABC campaign…check out her veto letterdocumenting the added costs of PLAs on future DC projects, ICYMI.
In 2023, Maine Gov. Janet Mills (D) said something similar in a veto message on offshore energy construction legislation after an ABC campaign (she later found a comprise that was very union-friendly after the Biden administration leaned on her heavily).
Click here to read Gov Newsome’s veto letter to the California senate.
