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Recommendation to receive and file a withdrawal of the referendum and initiative petitions for the “Long Beach Minimum Wage for Healthcare Workers”; and
Declare ordinance repealing Ordinance No. ORD-22-0022, also known as Chapter 5.96 (“Healthcare Minimum Wage”), read the first time and laid over to the next regular meeting of the City Council for final reading. (Citywide)
DISCUSSION
This office has prepared and submits the above-described Ordinance for your consideration to repeal ORD 22-0022, also known as Chapter 5.96 (“Healthcare Minimum Wage”).
Brief History of ORD 22-0022
• June 6, 2022 - A group of residents filed a petition to enact an initiative ordinance to add Long Beach Municipal Code Chapter 5.96 (“Healthcare Minimum Wage”), to establish a minimum wage $25.00 per hour for qualifying healthcare workers working in the City of Long Beach.
• August 26, 2022 - In lieu of placing the Healthcare Minimum Wage on the ballot, the City Council voted in favor of its adoption without alteration, as authorized by Elections Code section 9215(a). The Healthcare Minimum Wage was adopted as ORD 22-0022.
• September 21, 2022 - The Healthcare Minimum Wage was challenged by a referendum petition, which suspended the effective date of the ordinance and required that the City Council either repeal the ordinance in its entirety or submit it to a vote of Long Beach voters.
• November 15, 2022 - The City Clerk, through the Los Angeles County Registrar of Voters, certified the referendum. The City Council opted to submit the Healthcare Minimum Wage to a vote of Long Beach voters in the March 2024 primary election.
• October 13, 2023 -The Governor approved a statewide minimum wage for qualifying healthcare workers, Senate Bill 525 (SB 525), which contains a provision that any ordinance, regulation, or administrative action by a local government, including charter cities, applicable to healthcare facilities identified in SB 525 is void if it was enacted or took effect after September 6, 2023.
• October 19, 2023 - Pursuant to Elections Code Section 9237.2, the proponent of the referendum for the Healthcare Minimum Wage withdrew their petition contingent on the withdrawal of the initiative petitioners withdrawing their petition, enclosed as Attachment 1.
• October 20, 2023 - Pursuant to Elections Code Section 9215.5, the proponent of the referendum for the Healthcare Minimum Wage withdrawals their petition contingent on the withdrawal of the referendum petitioners withdrawing their petition, enclosed as Attachment 2.
When a higher level of government (e.g., the State or federal government) enacts a law that limits or eliminates the power of a lower level of government (e.g., the City), to regulate a specific issue, the lower level government is “preempted” from regulating on issue. In this case, the provisions of SB 525 state that it occupies the whole field of wages, salary, or compensation for covered health care facility employees, and applies to all cities and counties, including charter cities and counties, during the stabilization period. The language in SB 525 clearly outlines the State’s intent to preempt lower level of governments, such as the City, from regulating the wages of lower level government covered health care facility employees. Further, SB 525, states that any ordinance, regulation, or administrative action by a local government, including charter cities, applicable to healthcare facilities identified in SB 525 is void if it was enacted or took effect after September 6, 2023.
Since the effective date of the Healthcare Minimum Wage was suspended due to a qualified referendum petition and the ordinance was waiting to be considered by Long Beach voters, the Healthcare Minimum Wage was not enacted and would not have taken effect until after March 2024, if adopted by the voters. The City is a charter city, so the provisions regarding preemption in SB 525 apply to Long Beach. Considering the Healthcare Minimum Wage is preempted by SB 525 and that both the initiative and referendum proponents have withdrawn their petitions, this Office recommends to receive and file said withdrawals and repeal Healthcare Minimum Wage to ensure that the City does not maintain a law on its books that knowingly is preempted by State law.
SUGGESTED ACTION
Approve recommendation.
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Respectfully Submitted,
DAWN MCINTOSH,
CITY ATTORNEY