Governors play ace cards in recent legislative showdowns 

Back in the Wild West, the poker stakes would sometimes go to the gambler with an ace up the sleeve, a card that reversed an almost certain result. Today, a small group of elected officials have a similar advantage where no cheating is required. State governors can use the pen, veto stamp or — in some cases — a pocket veto, where a bill fails to become law due to gubernatorial inaction. Legislatures rarely override a veto.

Often, bills reaching a governor’s desk are as sure as holding a royal flush. In the recent past, we have seen benefit-related exceptions to this rule, primarily on paid leave:

• California. Last year, the state was on the verge of major Pharmacy Benefit Manager reform. PBM practices like spread pricing, mandatory mail and rebate use were about to change. SB 966 received just two “no” votes. Governor Gavin Newsom vetoed the bill, commenting that “the public and the Legislature need a clearer understanding of how much PBM practices are driving up prescription drug costs.” A similar drama may unfold with SB 41.
• Nevada. Last month, Governor Joe Lombardo vetoed a Paid Family and Medical Leave mandate that would have required employers with 50 or more employees in the state to fund 100% of leave benefits. He cited concerns that the bill “would severely disrupt the economic stability of businesses.”
• Virginia. For the second year in a row, Governor Glenn Youngkin vetoed a PFML mandate, expressing unease with employers’ and employees’ increased tax burden. He also vetoed a paid sick and safe leave mandate for several reasons, including the need for employer flexibility.

We have also seen examples of a governor leading efforts to revise or repeal a law approved by voters through a ballot initiative or referendum. Of the 21 states allowing voter approval of statutes, 11 have no restrictions on legislative alteration, eight require a supermajority and two (Arizona and California) require voter approval of the alteration. Here are some recent highlights:

• Michigan. This state’s well-documented veto drama — dating back to 2018 — was not resolved until this February. Back then, a paid sick and safe leave ballot initiative was removed from the election rolls because the legislature and Governor Rick Snyder adopted it and thereafter amended it to be more employer-friendly. Last year, the state supreme court invalidated this “adopt-and-amend” approach, putting the original, more employee-friendly ballot measure into effect on Feb. 21. However, on that very day, Governor Gretchen Whitmer signed a bill establishing a middle ground between the two versions. For details, see our GRIST: Roundup of selected state health developments, first-quarter 2025.
• Missouri. Last November, voters approved Proposition A, a paid sick and safe leave mandate effective May 1. The state supreme court upheld the law in a legal challenge. But an ace card was yet to be played. This month, Governor Mike Kehoe signed off on a repeal (effective Aug. 28), describing the requirement as “onerous” and “burdensome.”
• Nebraska. Voters also approved a paid safe and sick leave ballot initiative in November. In June, Governor Jim Pellen and the unicameral legislature modified the law, which will take effect Oct. 1. Of note, the mandate no longer applies to employers with 10 or fewer employees.

No bill is certain until a governor shows his or her hand. As Kenny Rogers aptly put it in the song The Gambler: “You never count your money when you’re sittin’ at the table. There’ll be time enough for countin’ when the dealin’s done.”