The Road Ahead in 2015: A California public policy and regulation roadmap for in-house counsel

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The Road Ahead in 2015: A California public policy and regulation roadmap for in-house counsel

Presenters Darry Sragow Partner Public Policy and Regulation + 1 213 892 2925 darry.sragow@dentons.com Marc Burgat Senior Advisor Public Policy and Regulation +1 213 892 5064 marc.burgat@dentons.com George Broder Senior Advisor Public Policy and Regulation +1 415 882 0163 george.broder@dentons.com 2

California Political Landscape Registration Democrat 43.4% Republican 28.4% Other 28.2% (No Party Preference and Third Parties) Voter Attitudes 3

2014 Election Outcome Assembly Democrats - 52 Republicans - 28 State Senate Democrats - 26 Republicans - 14 4

Statewide Constitutional Offices Governor Lieutenant Governor Attorney General Secretary of State Controller Treasurer Insurance Commissioner Superintendent of Public Instruction Edmund G. (Jerry) Brown Jr. Gavin Newsom Kamala D. Harris Alex Padilla Betty T. Yee John Chiang Dave Jones Tom Torlakson Every one is a Democrat 5

Electoral Drivers Term Limits (1990) Citizens Redistricting Commission (2008, 2010) Open Primary (2010) 6

Policy Focus 7

Governor's Agenda Sustainable Budget Education Prison Sentencing and Reform Transportation, including High Speed Rail Climate Change Flat tuition for UC students 8

Key Gubernatorial Appointees Natural Resources John Laird Air Resources Board Mary Nichols Transportation Brian Kelly Industrial Relations Christine Baker 9

New Leadership in Assembly and Senate Senate President pro Tem Kevin De Leõn Speaker of the Assembly Toni Atkins Minority Leader Bob Huff Minority Floor Leader Kristin Olsen 10

Legislation Introduced / Process & Path to Adoption 11

California State Government 12

Influencing the Public Policy Process Lobbying Contribution Limits 13

California State Contribution Limits 14

New Laws in 2015 Mandatory paid sick leave Privacy/cyber-data breaches Ban on single-use plastic bags Arbitration Yelp bill Film tax credits Insurance/ride-sharing companies Professional sports teams Tribal development 15

Meanwhile, In the nation's capital 16

Republicans Win Solid Majority in Senate Control of the 113 th Senate (2012-2014) Control of the 114 th Senate (2014-2016) Democratic Republican Independent 2 2 53 45 44 54 Total Seats Democrats: 53 Republicans: 45 Independents: 2 Total Seats Democrats: 44 Republicans: 54 Independents: 2 Analysis Having won most of this year s competitive races, Republicans secured 54 Senate seats, flipping the Senate from blue to red A GOP win in Louisiana was announced on December 6, 2014 Since Republicans expanded their majority to 54 seats, they will have an easier time passing legislation in the Senate because they will need fewer Democratic defections to overcome filibusters (which require a 60 vote supermajority) Source: National Journal Research; CNN Election Center; Associated Press; NBC News.

Republicans Win Record Majority in House Control of the 113 th House (2012-2014) Democratic Republican Vacant Undecided* Control of the 114 th House (2014-2016) 1 199 233 188 246 AK Total Seats Democrats: 199 Republicans: 233 Vacancies: 3 AK Total Seats Democrats: 188 Republicans: 246 Undecided: 1 Analysis Republicans won a total of at least 246 seats in the House, their largest majority since 1928 An expanded GOP majority in the House means that Speaker Boehner will have an easier time passing legislation in the House without Democratic support, and Republicans will also have an easier time holding on to their majority in future elections * Refers to AZ-2 race, in recount as of 12/8/2014 Source: National Journal Research; CNN Election Center; New York Times.

Priority Issues on the Hill - Republican Governance not Gridlock Cybersecurity Limited Immigration Reform Tax Reform Budget Deal Transportation Debt Limit Trade Deals - TPP and TTIP 19

The Future Boxer seat Feinstein seat President 20

Thank you Dentons US LLP 601 S. Figueroa Street Suite 2500 Los Angeles, CA 90017-5704 United States 2015 Dentons. Dentons is a global legal practice providing client services worldwide through its member firms and affiliates. This publication is not designed to provide legal advice and you should not take, or refrain from taking, action based on its content. Please see dentons.com for Legal Notices.