Capitol Alert

The latest on California politics and government

June 10, 2014
Tesla-driving Rick Perry jabs California on jobs

perrysacramento.jpgFor the latest round in the Jerry Brown-Rick Perry rivalry, the photo opportunity was especially promising: Perry, the Texas governor and self-proclaimed hunter of California jobs, cruising down L Street in a Tesla just days after the Brown administration announced it is considering steps to persuade the car's maker to build a massive battery factory here.

The Palo Alto-based company's Model S, Perry told reporters after pulling into the Hyatt Regency Hotel, would look good with a "Made in Texas" bumper sticker.

Perry has long boasted about recruiting businesses from California to Texas, but the rhetoric increased last year, when Perry ran a radio ad in California and Brown dismissed his effort as "barely a fart."

On Tuesday, Brown's office referred to that quote when asked for comment.

With the Tesla behind him and his shades on, Perry criticized California's tax and regulatory climate, as he has on previous visits, and he trumpeted the value of competition between states for jobs. Trying to recruit Tesla, he said, is "one of our goals, obviously."

But when asked what incentives Texas was offering the company, he said, "I don't know all of the different details about the incentive packages and what have you."

In fact, Perry is not meeting with Tesla officials on this trip to California.

Who he was visiting with were Republican lawmakers, candidates and at least one very deep-pocketed GOP donor, Charles Munger Jr. Perry, a former presidential candidate who may run in 2016, talked briefly with Munger in the hotel lobby, before former state Sen. Jim Brulte, chairman of the California Republican Party, put his arm around Perry and walked with him to a meeting with lawmakers upstairs.

PHOTO: Texas Gov. Rick Perry addresses reporters in Sacramento on June 10, 2014. The Sacramento Bee/David Siders

June 10, 2014
Brown administration recommends tax breaks for companies


From e-commerce to pet cremation, 31 companies from around the state would get almost $30 million in tax breaks under recommendations by Gov. Jerry Brown's office of business development.

The "California Competes" income and franchise tax benefits would generate almost 6,100 jobs and more than $2.3 billion in investment, according to the recommended companies' application paperwork.

California Competes is part of a package of economic development programs that replaced enterprise zones, a 30-year-old program that the Legislature voted to shut down a year ago with Brown's backing. Demand for the $30 million in available credits for the program's first year far exceeded supply, with almost $560 million in applications. Next year, $150 million in credits will be available.

The California Competes Tax Credit Program committee will consider the awards when it meets June 19 in West Sacramento.

The largest recommended tax credit – $6 million – would go to San Jose-based Samsung Semiconductor, Inc., which promises that the credits would generate almost $358 million in investment and 400 jobs. That translates into about $60 in investment for every dollar of tax credit, and $15,000 in credits for every job to be created.

The smallest recommended tax credit – $20,000 – would go to Novato-based XCell Science, Inc., which promises $213,103 in investment and eight jobs created. That translates into $11 in investment for every tax credit and $2,500 in credits for every job to be created.

Here is the full list of recommended California Competes awards:

NameIndustryPrimary locationNet increase of full-time employeesInvestmentsAmount of tax creditsLink to agreement
The Sacramento Bee
Samsung Semiconductor, Inc.Semiconductor Research & DevelopmentSan Jose400$357,764,000$6,000,000
CE&P Imperial Valley 1, LLCEthanol / Biofuel ManufacturingBrawley222$526,700,398$3,100,000
Petco Animal Supplies, Inc.Retail and Corporate ManagementSan Diego263$84,000,000$2,600,000http://bit.lyhih4rxa
Ultragenyx Pharmaceutical Inc.Pharmaceutical Research & DevelopmentNovato180$16,331,892$2,100,000
Samsung Information Systems America, Inc.Electronic Device Research & DevelopmentMountain View210$128,333,935$2,000,000
Amazon Fulfillment Services, Inc.Online Retail Warehouse & DistributionMoreno Valley, Tracy, Newark & San Bernardino1,550$225,000,000$1,575,000http://bit. ly/1pdnksy
Iso Nano International LLC dba BST NanoCarbon LLCHigh-Tech Commercial Fiber Design & ManufacturingSan Diego, Temecula632$22,825,000$1,450,000
A2Z Development Center, Inc.Electronic Device Research & DevelopmentSunnyvale, Cupertino798$55,000,000$1,200,000
Graphic Packaging International, Inc.Food and Beverage Packaging Design & ManufacturingOroville, Irvine, Santa Clara138$54,228,200$1,150,000
Macy', Inc.E-Commerce TechnologySan Francisco193$206,307,830$1,000,000httP://
Novartis Pharmaceuticals Corp.Pharmaceutical ManufacturingSan Carlos28$104,800,000$1,000,000http://bit.lvAtZgRPN
Weber Metals, Inc.Aerospace Metal ForgingLong Beach60$170,703,000$1,000,
Hyundai Capital AmericaAutomobile Consumer Financial ServicesIrvine120$0.00$885,000
iHerb, Inc.Online Retail Warehouse & DistributionRiverside County150$15,000,000$815,000http://bitiviSsXFh7
Deckers Outdoor CorporationFootwear Design, Marketing & DistributionMoreno Valley, Goleta125$149,475,624$800,000
Al California, LLCGrocery Regional Headquarters, Distribution & Retail StoresMoreno Valley & Counties of Orange, San Diego, Los Angeles, Riverside, San Bernardino, Ventura182$150,000,000$700,000
Fresh Select, LLCLarge Scale Produce Refrigeration & DistributionDinuba341$5,923,906$500,000
Flowers Baking Co. of Modesto, LLCProduction of Packaged Bakery GoodsModesto121$25,000,000$300,000
Duarte Nursery, Inc.NurseryHughson33$33,082,533$250,000http://bit.lyhuNcoBZ
Sparsha USA, Inc.Transdermal Patch Development & ManufacturingOceanside21$4,400,000$250,000
CTP Transportation Products, LLCCommercial Vehicle Wheel & Component ManufacturingOntario33$1,000,000$150,000 http://bit.lyhxzlRxP
Matheson Tri-Gas, Inc.Industrial Gas SupplierRancho Cucamonga, Santa Rosa, Newark, Los Nietos53$5,923,906$100,000
Professional Asbestos and Lead Services, Inc.Hazardous Materials Remediation & RemovalStockton71$650,000$100,000
Systena America, Inc.Information Technology & Communication Device Software Engineering & TestingSan Carlos42$789,600$100,000
Salient IT, Inc.Information Technology Consulting & Data Center ManagementSacramento, Oakland21$460,000$77,500
Lynam Industries, Inc.Sheet Metal ManufacturingFontana69$6,512,552$68,000
Technical Engineered Coatings, Inc.Commercial Concrete TreatmentFolsom13$239,000$55,000
Health One Pharmaceutical Inc.Health Supplement ManufacturingCity of Industry10$5,643,008$50,000
Animal Memorial Service, Inc.Pet Cremation ServicesGilroy5$370,000$40,000
American Marine Abatement Services, LLCUS Navy Ship Maintenance & Repair ServicesNational City6$110,000$30,000
XCell Science, Inc.Stem Cell Biotechnology Research & DevelopmentNovato8$213,103$20,000

PHOTO: California Gov. Jerry Brown visits Takeda, a biotech firm, in San Diego, where he signed signed legislation phasing out enterprise zones and replacing the program with California Competes and other incentives. U-T San Diego/Carolyne Corelis

June 10, 2014
California judge declares teacher employment rules unconstitutional

schoolkids.JPGIn a decision that could reverberate through the nation's largest network of public schools, a Los Angeles judge has declared some key California teacher employment rules unconstitutional.

The decision by Los Angeles County Superior Court Judge Rolf Treu dealt a serious blow to teachers unions who defend California's laws, including those governing when teachers win permanent employment status and when they can be fired. An organization that brought the case on behalf of public school students, Students Matter, framed the lawsuit in the context of California students having a fundamental right to a quality public education.

In a decision that referenced landmark education equity cases like Brown v Board of Education and Serrano v Priest, Treu wrote that evidence of ineffective teachers running classrooms "shocks the conscience."

"All sides to this litigation agree that competent teachers are a critical, if not the most important, component of success of a child's in-school educational experience," Treu wrote.

Rules that keep ineffective teachers in the classroom, attorneys for Students Matter argued, deprive many students - particularly low-income ones - of their constitutional right to a useful education.

The lawsuit challenged the two-year time frame after which teachers are eligible to win tenure, the guidelines for firing teachers and the requirements, known as "last in first out," that teachers with the least service time go first during budget-driven layoffs.

Treu agreed. He said the current permanent employment statute undercuts teachers and students alike, called last-in-first-out a "lose-lose situation" and decried the "tortuous" process for firing teachers as "so complex, so time consuming and expensive as to make an effective, efficient yet fair dismissal of a grossly ineffective teacher illusory."

With the state likely to appeal, the case could continue to wind its way through the courts. That could open a window for a legislative response in Sacramento, where a push to streamline the teacher dismissal process has emerged in a key bill this year.

In a statement, the California Teachers Association called the ruling "deeply flawed" and vowed to appeal.

"Circumventing the legislative process to strip teachers of their professional rights hurts our students and our schools," the union said. "This lawsuit has nothing to do with what's best for kids, but was manufactured by a Silicon Valley millionaire and a corporate PR firm to undermine the teaching profession and push their agenda on our schools."

PHOTO: At right, Maiya Miller, 8, hugs Principal Shana Henry on the first day of school at Pacific Elementary school in Sacramento on September 3, 2013. The Sacramento Bee/Renee C. Byer

June 10, 2014
AM Alert: Republican candidates train for November wins

Conway_budget.JPGState GOP chairman Jim Brulte's goal of reviving the Republican Party in California this year includes winning enough legislative seats to eliminate Democrats' two-thirds supermajority.

It will be a close fight come November, but California Trailblazers is on board. The program, which works to recruit and elect Republicans to the Legislature, is holding a training session in Sacramento today for a dozen candidates it has supported that advanced from last Tuesday's primary.

The all-day training, held at the Hyatt Regency on L Street, will include visits from Assembly Republican leader Connie Conway and members Brian Jones, R-Santee, and Rocky Chávez, R-Oceanside, as well as Kevin Riggs of Randle Communications and Mark Bogetich of MB Public Affairs. The training will cover messaging, grassroots outreach, voter contact, finance and opposition research.

VIDEO: The state controller's race is headed for a photo finish, with the top two changing daily, Dan Walters says.

SAVE OUR SEAS: The Ocean Protection Council, created to manage and conserve California's coastal ecosystems, holds a public workshop to get feedback on its plan for "collaborative stewardship" of the state's marine protected areas, 9:30 a.m. at the Natural Resources Agency Auditorium on 9th Street.

LGBTROOPS: Assemblyman Roger Dickinson, D-Sacramento, honors lesbian, gay, bisexual and transgender veterans during a ceremony at 11:30 a.m. on the south steps of the Capitol. Dickinson is sponsoring a resolution that would mark June 11 as LGBT Veterans Day.

WHAT'S MY AGE AGAIN?: The Assembly Committee on Aging and Long-Term Care continues its series of informational hearings about the "faces of aging" in California with a look at aging in LGBT community, 2 p.m. in Room 447 of the Capitol.

LESS WATER, PLEASE: Among the steps Gov. Jerry Brown took earlier this year to address California's severe drought was urging a 20 percent reduction in water use. The Natural Resources Defense Council and the Pacific Institute have prepared an analysis of potential water savings across the state, to be released at 10 a.m.

PHOTO: Assembly Republican leader Connie Conway speaks at a press conference in Sacramento on June 30, 2011 to celebrate the demise of a higher sales tax rate and vehicle license fee. The Sacramento Bee/Hector Amezcua

June 10, 2014
Dan Walters Daily: State controller's race down to photo finish

swearengin_controller_resized.jpgAs California finishes counting hundreds of thousands of ballots, the top two in the controller's race changes daily, Dan says.

Have a question you'd like Dan to answer? Post it on our Facebook page.

See other Dan Walters Daily clips here.

PHOTO: Fresno Mayor Ashley Swearengin gives her State of the City address at a lunch meeting at the Fresno Convention Center Wednesday, June 1, 2011. The Fresno Bee/Craig Kohlruss


Capitol Alert Staff

Amy Chance Amy Chance is political editor for The Sacramento Bee. Twitter: @Amy_Chance

Dan Smith Dan Smith is Capitol bureau chief for The Sacramento Bee. Twitter: @DanielSnowSmith

Jim Miller Jim Miller covers California policy and politics and edits Capitol Alert. Twitter: @jimmiller2

David Siders David Siders covers the Brown administration. Twitter: @davidsiders

Christopher Cadelago Christopher Cadelago covers California politics and health care. Twitter: @ccadelago

Laurel Rosenhall Laurel Rosenhall covers the Legislature, the lobbying community and higher education. Twitter: @LaurelRosenhall

Jeremy White Jeremy B. White covers the Legislature. Twitter: @capitolalert

Koseff Alexei Koseff edits Capitol Alert's mobile Insider Edition. Twitter: @akoseff

Dan Walters Dan Walters is a columnist for The Sacramento Bee. Twitter: @WaltersBee

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