SACRAMENTO – Governor Gavin Newsom today announced that he has signed Senate Bill 177 by the Committee on Budget and Fiscal Review to help protect Medi-Cal and the health care services millions of Californians rely on. The new law is a significant step forward in holding the state’s largest corporations accountable for the public costs of health coverage for their employees - rather than shifting the costs to taxpayers. 

“I appreciate Governor Newsom's partnership in advancing this important legislation,” said Senator John Laird (D-Santa Cruz). “It strengthens Medi-Cal, protects taxpayers, and helps ensure that large employers contribute fairly toward the health care costs of their workforce. California taxpayers should not be left subsidizing costs that large employers can afford to shoulder themselves.”

John Laird, Chair of the Senate Budget and Fiscal Review Committee

California supports innovation, investment, and the businesses that drive our economy. But we also believe the biggest and most profitable companies should do their fair share—not shift the cost of employee health care onto taxpayers. As the Trump administration wages a war on affordability and turns its back on working families, California is taking a different approach: protecting working families, defending access to health care, and standing up for the people who make this economy work.”

Governor Gavin Newsom

“The Senate was proud to champion the Fair Share from Big Corporation Act to ensure taxpayers no longer pay a public subsidy to meet a corporation's responsibility for employee healthcare,” said Senate President pro Tempore Monique Limón. “Requiring corporations to pay their fair share will help ease the burden the state faces due to federal healthcare cuts. I am grateful we are taking steps today to develop a plan to implement this future policy."

“Trump handed massive corporations billions in tax breaks, yet they still aren’t paying their fair share for employees who depend on Medi-Cal,” said Speaker of the Assembly Robert Rivas. “If Congress won’t reverse Trump’s draconian health cuts, California will need to find new ways forward — and this legislation advances that effort, looking for a balance that protects workers, taxpayers and California’s economy.”

“Californians are losing healthcare coverage because of federal cuts that bankroll tax breaks for the wealthiest residents of this nation and the largest corporations in the country,” said Assemblymember Mia Bonta (D-Oakland). “All while pushing employees onto public benefits becomes a business strategy for some of those same corporations. While executives profit, my constituents are getting sick and delaying the care they need because they can't afford it. This bill is a victory for advocates within and outside the Legislature, securing a common-sense step toward ensuring corporations actually pay their fair share.”