A panel featuring local legislative leaders fielded questions from both the Santa Clarita Valley Chamber of Commerce and local business owners Friday.

Nancy Starczyk, Board Chair for SCV Chamber of Commerce, moderated the panel, first asking State Senator Henry Stern, D-Canoga Park,  about Assembly Bill (AB) 5. Starczyk inquired whether or not the legislator would be adding more carve-outs for independent contractors like “gig-economy” workers.

AB 5, signed by California Governor Gavin Newsom in September, would reclassify contracted workers as employees to companies given the employer controls the conditions of the work. The full text of the legislation can be read here.

“There was a Supreme Court decision with Dynamex… that were trying to treat independent contractors under the employment code, and the court found the way they were being controlled they would be employees,” Stern said. “(This) set us on the path where people were going to be caught in this jam- folks who want to be independent contractors would be forced into an employer, employee relationship.”

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This change in relationship would change benefit structures, flexibility and cause challenges. Despite working different versions of a bill that would reclassify employees, AB 5 was passed, however Stern is not certain it fixes every problem.

Starczyk then went on to ask Congresswoman Katie Hill , D-Agua Dulce, how recent tariffs may be affecting local automotive dealers.

“I had the privilege of going to the Acura dealership and talking about the tariffs,” Hill said. “There’s a six month delay for many auto parts, it’s really having a big impact- even affecting safety. Those cars are largely manufactured here in the U.S., so the tariffs are not having the consequences that are intended for them.”

Congresswoman Hill emphasized that not only are the tariffs in question a tax on United States business and consumers.

Assemblywoman Christy Smith, D-Santa Clarita, updated those in attendance on Proposition 13 (1978), and the “split-roll tax” that aims to alter it.

Proposition 13 of California sets property tax at one percent of the sale price, and increases two percent every year. The split-roll would asses commercial and residential property differently. The full text of Prop 13 can be read here.

“The Governor has a pretty significant interest and getting involved at this point, so he’s made a commitment to the Education Coalition,” Smith said. “He’d like to step in right now and start to have conversations about maybe some alternatives that could be considered… a more national-competitive, per-people funding model.”

Smith is unconvinced the split-roll tax is the right solution, as the costs from the property tax would affect the business and it’s customers.

“It’s just one more cost of doing business in California, which I don’t think can be sustained,” Smith added.

“Ever since Proposition 13 passed, it’s been a frustration for business legislature,” said Assemblyman Tom Lackey, R-Palmdale. “Income and the desire for income is an insatiable desire that’s never going to be satisfied.”

A local non-profit organizer had the opportunity to ask the legislative panel about the rising minimum wage and the stagnant funding for non-profits.

“The last minimum wage, that was a really frustrating experience because a number of years back we voted and increased it by one dollar,” said Senator Wilk, R-Santa Clarita. “We didn’t get to go home to talk to our constituents. It was done so fast they took no considerations at all, no student wage, no difference between San Francisco and Victorville. It was poorly done.”

Wilk claims the $15 minimum wage was merely a payoff for the unions, calling it compaction.

For more information on the Santa Clarita Valley Chamber of Commerce visit their site, here.

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