SACRAMENTO UPDATE
                                              CMC Lobbying Office: 1215 K Street, 17th Floor i Sacramento, CA 95814
                                                CMC Main Office: 2971 Warren Lane i El Dorado Hills, CA 95762
                                                          Phone: (916) 933-3075 i Fax: (916) 933-3072
                                               Web Site: i E-mail:

                    A Monthly Publication for California’s Metalworking Industry— since 1976
                                  Volume XXXII       Number 11         November 2008

                                      Prop 11 Passage Ends
                                     Reign of the Salamander
        In 1812, Massachusetts governor Elbridge Gerry came up with an interesting concept. He began
drawing political district lines in such a way that he could predict the outcome of elections. The districts
often looked like salamanders, and the term “gerrymandering” spawned from the governor’s last name.

        Nearly 200 years later, California is still influenced by this
practice as politicians select their voters using precise computer data.

       But there is good news in California. The salamander was slain
by the voters on November 4th with the passage of Prop 11. Follow-
ing the census of 2010, a 14-member commission will re-draw district
boundaries for state Assembly, Senate, and Board of Equalization seats.

        What was at stake? The balance and composition of the state
Legislature. When party leaders know they can’t lose a race, the
                                                                                               1812 Gerrymander Cartoon
most liberal or most conservative candidates emerge. Far-left vs. far-
right politicians rarely meet in the middle resulting in serious political gridlock. If you’re looking for proof of
this imbalance, just read tomorrow’s newspaper on how Sacramento is handling the state budget crisis.

                                     Also at stake was the fact that the US census occurs every 10 years. So if
                             the system did not change before the April 2010 census, the next chance to redraw
                             state district boundaries would not have occurred until 2020.

                                     What turned the tide? Simply put, money. It took six tries to pass
                             redistricting reform on the ballot. In the past, we were always outspent. But in
                             2008, the Yes on 11 campaign raised $14 million, versus $1 million raised by
                             opponents. CMC’s PAC—funded by CMC members—contributed to Yes on 11.
                             CMC President Jeff Mock and Executive Director James Simonelli were
                             invited to the Governor’s Election Night Celebration, and on behalf of CMC,
                             toasted with the Governor to a brighter future in California.
             Democrats Gain a Seat in the State Senate...or Do They?
        Going into election night, Democrats held 25 of 40 seats in the state Senate—or 63%. Currently, state
Democrats need to garner two Republican votes in the Senate to reach two-thirds. In California a two-thirds
vote is needed to pass a state budget, raise taxes, or overturn a Governor’s veto.

        Termed-out Republican Tom McClintock currently holds the state Senate seat for District 19 (Santa
Barbara). But at the end of election night on November 4th, state Democrats were celebrating a narrow win in
this district as Hannah Beth-Jackson (D) was leading Tony Strickland (R).

        But absentee and provisional ballots recently counted
in Ventura County pushed Strickland back into the lead. As of
November 24, Strickland led Jackson 50.2% to 49.8%. Provisional
ballots (which are ballots cast by voters whose registration couldn’t be
verified at polling places) remained to be validated and counted in
Santa Barbara and Ventura counties. With less than 17,000 ballots
expected to be counted, this see-saw battle is far from over.

        If Strickland wins, there will be no change in the party balance of the state Senate. The results of this
race are significant as we enter 2009, and especially in 2010 when we face another election year.

                        Republicans Concede 2 (or 3) Seats
                              in the State Assembly
      CMC continues to work with Legislators on both sides of the aisle and applauds politicians who
move towards the political center. But we always keep a close watch on the balance of the state Legislature
and whether one party makes a significant gain.

        Going into election night, Democrats held 47 of 80 state Assembly seats—or 59%. After November
4th, the Democrats picked up three seats in Assembly District 15 (Livermore), Assembly District 78 (S. San
Diego), and Assembly District 80 (Indio). But they lost one seat to the Republicans in Assembly District 30
(Bakersfield), giving them a total of 49 of 80 seats (61%) going into 2009.

       But there is still one undecided race in the Assembly. The Assembly District 10 (Lodi) race has
Republican Jack Sieglock leading Democrat Alyson Huber by only 1,081 votes. This seat is currently held
by the Republicans.

       If the Democrats reach 53 votes in the Assembly, they will
have a 2/3 vote. Just like in the state Senate, this power holds
the key to passing a state budget, raising taxes and overturning a
Governor’s veto.

         For full 2008 state election results, including Propositions,
visit the CMC web site at
                           Welcome New Members
                    The California Metals Coalition (CMC) is our opportunity to grow and
             replenish the industry’s state advocacy group. For 2008, CMC’s current members are
        reaching out to their colleagues, suppliers, and customers to support CMC’s lobbying coalition.

                            The grassroots movement of our industry and
                                 statewide strength begins with you.
                         Thank you for your support and contact CMC if you
                             have any leads on new industry members.

                   Chase Brass                                          Aaron Metals
             14212 Country Road M-50                                  750-105th Avenue
               Montpelier, OH 43543                                Oakland, CA 94603-6304
      Phone: 419-485-3193 | Fax 419-485-5945                Phone: 510-569-6767 | Fax 510-569-8971

                                Public Unions at Top of 2008
                                     Political Donor Lists
       In the narrow world of political influence, one sector has taken bold steps to protect their interests.
California’s public unions have become a significant force in California politics by raising millions of dollars
and single-handedly impacting the outcome of elections. Some believe they have become too powerful.

                                                        Let’s follow the money: Based on reports from the
                                                Sacramento Business Journal in 2008, public unions occupy 4
                                                of the top 6 spots in political donations. Led by the California
                                                Teachers Association, California Correctional Peace
                                                Officers Association, and Service Employee International
                                                Union, these groups overshadowed “big oil” and “big business”
                                                in political contributions.

        Public union fundraising capabilities are setting the pace in Sacramento, a position once held by the
private sector. And they are doing it with $50, $70 and $100/month collections from individual members, a
level not far from the reach of even the smallest business budget.

        There is no question that California needs the services of these important groups. But looking at it from
the narrow world of political influence and fundraising, the money and political power that public unions hold
make them serious players in budget discussions, political races, taxes, and lawmaking decisions.
                             Richmond Voters Can’t Resist
                                  Raw Materials Tax
        In 2006, a measure was defeated in the city of Richmond (near Oakland) that would have added a new
city tax to all raw materials used in the manufacturing process.

       But the lure of new funds and disdain for a local Chevron refinery
pushed Measure T to victory in 2008. Measure T levies a new tax on
manufacturing businesses equal to ¼ of one percent of the value of the
raw materials used in the business’s manufacturing process per year.
The city estimates the Measure will generate about $26M in new revenue
beginning in 2009.

      With California cities and state government facing significant cash shortages, ballot initiatives such as
Measure T are likely to be considered as voters risk short-term solutions for long-term stability.

                              CMC Hosts National Conference
                                on State Lead-Free Law
       Assembly Bill 1953 was signed into law by
Governor Schwarzenegger in 2006 effectively lowering
the lead content in products that come in contact with
drinking water from 8% to .25%. The law takes effect on
January 1, 2010.

       On November 13, CMC opened its resources to
metalworking companies and vendors from all across the
U.S. by hosting a conference on AB 1953. Over 115
attendees participated in the conference held at the
Downtown Sacramento Hyatt.                                      (L to R) CMC’s James Simonelli, Los Angeles DWP’s Pankaj Parekh,
                                                                  San Jose Water Co.’s Monique VanderMarck, East Bay Municipal
       The session was the first time since AB 1953 was             Utility District’s Richard Sykes, and CMC President Jeff Mock

signed into law that such as diverse group of industry,
water utility, and government representatives had gathered in the same room.

                                                       Presenters included AFS Copper Consortium Chair
                                               Mike Jones of Ford Meter Box, Pete Greiner of NSF
                                               International, Shahin Moinian of IAPMO Labs, Pauli Undesser
                                               of the Water Quality Association, Bruce Jennings of the Senate
                                               Environmental Quality Committee, Bruce LaBelle and Corey
                                               Yep from the DTSC, and much more. Based on the
                                               conference, CMC created a web site with all materials,
                                               presentations, and attendee questions at: www.metalscoalition.
                         President-Elect Obama Expected
                   To Take Different Approach on Mobile Sources

       When examining the sources of air pollution in the state of California, metalworking facilities are
only a small part of the challenge. Dominating the air pollution problem are automobiles, trucks, trains,
airplanes, freightliners, ships, and the ports.

       But when state government looks to regulate sources of
California’s air pollution, they are often limited to stationary sources.
Federal rules keep them from regulating sources such as automobiles.

        As a result, stationary sources are hit with the brunt of
regulations—and the blame for ongoing air challenges. Moreover, it is
impossible to clean our air without addressing all the sources.

       AB 32 (California’s new greenhouse gas reduction law) requires
reductions of greenhouse gas emissions. Mobile sources emit over 40%
of the CO2 in our state, but currently California cannot regulate

      Governor Arnold Schwarzenegger and Attorney General Jerry
Brown sued Fed-EPA over this issue, but the Bush Administration continues to block this efforts.

       But come January 20, 2009, that all will change. CMC expects the Obama Administration will
allow California to regulate mobile sources. This will be a significant change for state and local govern-
ment time, focus and resources. Increased costs due to new regulations on mobile sources should be ex-
pected, but the current cost of stationary sources paying for the entire state’s air challenges is unbearably

                                     SCAQMD Won’t Budge
                                    on Solvents & Lubricants
       After several public workshops, comments from the metalworking industry, and scrutiny from
solvent and lubricant suppliers, the South Coast Air Quality Management District (SCAQMD) continues to
march forward on Proposed Rule 1144 (

                                        Some recent activity includes the SCAQMD Board hearing on the
                                proposed rule to be pushed from December 5th to January 9, 2009, as well
                                as rule enactment dates to be extended, but the issue of a test method to
                                verify VOC’s and depth of the regulations remain unchanged. CMC has
                                been following the lead of Dodge Oil Co. and other suppliers as we await
                                feedback from members. CMC encourages the industry to get involved in
                                this issue, contact your local mayor, and keep pressure on the SCAQMD.
                                      CMC Prepares for
                                   December Dues Renewals
       The majority of CMC member dues renewals come at the end of the calendar year. The next
round of dues renewal notices will be sent the first week of December. Payment options are always
available and will be detailed in the renewal letter. CMC’s lobbying, conferences, roundtables, buying
programs and daily operations are funded by your support. We thank you for your ongoing
dedication to our important efforts!

                                             NBA All-Star To Run
                                             City of Sacramento
         A career average of 18 points and 9 assists per game in the NBA are elite
statistics. Three-time all-star and Olympic gold medalist Kevin Johnson led the
Phoenix Suns to many victories, including a trip to the 1993 NBA Finals.

        Johnson can now add another victory to his resume...this time in politics.

        A Sacramento High School and UC Berkeley graduate, this Sacramento
native took on 3-term incumbent Heather Fargo for city mayor. Both Fargo and
Johnson are Democrats. Kevin Johnson, 42, has no political experience, but ran a
strong campaign and became the first African-American mayor of Sacramento.

                                                               As one might expect, Mayor-
                                                                                                   Kevin Johnson (right)
                                                       elect Johnson inherits a city deep in
                                                                                                takes on Michael Jordan
                                                       debt and a downtown in need of            in the 1993 NBA Finals
                                                       identity. He will also be taking on a
                                                       number of public unions as he attempts to balance the city

                                                               But with star-power, ambition, and intelligence, the
                                                       Mayor position could be only the first step in a bright political
 Mayor-elect Johnson at an Obama rally in Sacramento
                                                       future for Kevin Johnson.
                          Thursday, December 4, 2008
             US Pipe, Union City, CA ~ 10:00am - 1:00pm
      The 2008 CMC Quarterly Regional Roundtables are up-to-date legislative and regulatory briefings for
your metalworking company.

       CMC’s lobbyists and industry colleagues are gathering on Thursday,
December 4 in Union City, to strategize and discuss state and local political
issues. Join us to hear which new laws were signed that will impact your
company, as well as how the November election will impact businesses in 2009.

      The CMC roundtables also bring California’s elected officials to you. On
December 4, California state Senator Ellen Corbett (D-10) will join us and
hear our issues during the last hour of the session. Corbett’s 10th Senate district
encompasses Alameda and Santa Clara counties, including Union City, Hayward,
Fremont, and San Leandro.

         Senator Corbett spoke to our group during her tenure in the state
Assembly—1998-2004. She has served as a city councilmember, Mayor of San                  State Senator Ellen Corbett (D)
Leandro, and graduated from UC Davis and McGeorge Law School. Ellen was
elected to the state Senate in 2006, where she can serve up to 8 years. 2008 legislation she’s authored includes a
bill to reduce unwarranted lawsuits against businesses regarding disability access, and a bill to allow the DTSC to
randomly sample drinking water plumbing products for lead content. CMC supporters will exchange
information with a real decision maker. We’ll see you on December 4!



  Phone Number:                                  Email:

            Cost: $25/person, lunch served; Location: US PIPE, 1295 Whipple Road, Union City, CA 94587
  Time: 10:00am-1:00pm Form & Payment to: California Metals Coalition, 2971 Warren Lane, El Dorado Hills, CA 95762

                               SPONSORED BY: EPIC INSURANCE (
                       Wednesday, December 10, 2008
      Embassy Suites, Downey, CA ~ 9:00am - 12:00pm
      The 2008 CMC Quarterly Regional Roundtables are up-to-date legislative and regulatory briefings for
your metalworking company. Join us for the final roundtable of 2008.

       CMC’s lobbyists and industry colleagues are gathering on Thursday
December 11, to discuss the current issues impacting your metalworking
company. Hear which new laws will impact your company, as well as how
the November election will impact businesses in 2009.

       The CMC roundtables also bring California’s elected officials to you.
State Assemblymember-elect Diane Harkey (R-73) was victorious on
November 4th with 53% of the vote, but faces a significant number of
challenges in Sacramento. Diane is the former Mayor and Councilmember of                      Republican Assembly Leader Mike
Dana Point. The 73rd district includes Dana Point, Laguna Hills, Laguna                     Villines (L) with Assembly-Elect Harkey

Niguel, Oceanside, San Clemente, San Juan Capistrano, and Aliso Viejo.

       The state budget is the top issue in Sacramento. Public unions (teachers, correctional officers, nurses,
services employees, etc.) are lobbying to protect their interests. We have to do the same.

      There are only 80 state Assemblymembers casting votes in Sacramento. Join us in December 10 and
exchange information with a real Sacramento decision maker. We’ll see you on December 10!




  Phone Number:                                    Email:

                Cost: $25/person, lunch served; Location: Embassy Suites, 8425 Firestone Blvd, Downey, CA 90241
        Time: 9am-12:00pm Form and Payment to: California Metals Coalition, 2971 Warren Lane, El Dorado Hills, CA 95762
                                                   SPACE IS LIMITED.
                                SPONSORED BY: EPIC INSURANCE (

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