RENT CONTROL MEASURE MUST BE DEFEATED! NO ON PROP 10 AD

Posted: September 14, 2018 | Posted by Crystal Whitfield | No Comments

Proposition 10, on November’s ballot has too many flaws and must be defeated.  Here is a new ad on this bad measure that we hope you will share widely with your networks:

What Would Prop 10 Mean for California?

Prop. 10:

  • Allows Regulation of Single Family Homes
  • Places Bureaucrats in Charge of Housing with the Power to Add Additional Fees
  • Puts Taxpayers at Risk for Millions in Legal Costs
  • Adds Tens of Millions in New Costs to Local Governments
  • Drives Up the Cost of Existing Housing

Vote NO on Prop. 10.  Click here for more information.

BILL TARGETING WAREHOUSE CONSTRUCTION VETOED

Posted: September 14, 2018 | Posted by Crystal Whitfield | No Comments

AB 2853 by Assemblymember Jose Medina (D-Riverside) was vetoed by Governor Brown.  Our industry strongly opposed the bill as it unreasonably targeted one building type, warehouses, when working together with a local government on certain economic development subsidies.  Current law already requires extensive disclosure of information by all project types getting such subsidies.  Here is the Governor’s veto message.

BILLS ON GOVERNOR’S DESK – OPPOSE

Posted: September 14, 2018 | Posted by Crystal Whitfield | No Comments

Below are bills on the Governor’s desk we are hoping he vetoes:

AB 1870 (Reyes D) Employment discrimination: limitation of actions.

Extends the statute of limitations from one year to three years for all employment related discrimination, harassment and retaliation claims filed with the Department of Fair Employment and Housing (DFEH). Puts employers at significant risk of a lawsuit they cannot defend against.

AB 2853 (Medina D) Local government: economic development subsidies.

Mandates significant requirements on local governments that working with warehouse projects and offering certain economic development incentives.  This bill has been VETOED.

AB 3080 (Gonzalez Fletcher D) Employment discrimination: enforcement.

Create more litigation, significant delays in the resolution of disputes, and higher costs for employers and employees.

SB 100 (De León D) Renewables Portfolio Standard Program. 

Creates uncertainty for businesses in the state and increases the cost for energy by mandating an ambiguous zero-carbon energy planning goal.  This bill has been SIGNED INTO LAW.

SB 937 (Wiener D) Lactation accommodation.

Mandates employers provide certain accomodtions for lactating employee similar to AB 1976 (Limon). Unfortunately SB 937 contains provisions that put employers at risk of labor-oriented lawsuits. We are asking the Governor to sign AB 1976, but must ask that he veto this measure.

SB 1128 (Roth D) Common interest developments: governance.

Makes significant and unnecessary changes to the rules and processes governing homeowner association elections.

SB 1265 (Wieckowski D) Common interest developments: elections.

Similar to SB 1128, this bill makes significant and unnecessary changes to the rules and processes governing homeowner association elections.

SB 1339 (Stern D) Electricity: microgrids: tariffs.

Bans the use of diesel electrical backup systems and puts buildings using such system at risk during an emergency.

SB 1402 (Lara D) Labor contracting: customer liability.

Increases transportation costs and puts stress on the supply chain for California retailers.

BILLS SENT TO THE GOVERNOR — SUPPORT

Posted: September 14, 2018 | Posted by Crystal Whitfield | No Comments

Although we tend to focus on the bills we oppose, there are quite a number of bills that we support.  The following is a list of bills we support that have been sent to the Governor.

AB 1857 (Nazarian D) Building codes: earthquake safety: immediate occupancy standard.

Summary.

Require the state to assemble a functional recovery working group, including members of the construction and insurance industries.

AB 1976 (Limón D) Employment: lactation accommodation.

Requires employers to provide lactation accommodations in area outside of a bathroom.

AB 2132 (Levine D) Building permit fees: waiver.

Authorize building desks to waive or reduce all building permit fees for improvements to a home of a person at least 60 years of age with a qualifying disability that are made to accommodate that disability.

AB 2372 (Gloria D) Planning and zoning: density bonus: floor area ratio bonus.

Authorizes a procedure by ordinance to grant a developer of an eligible housing development a floor area ratio bonus in lieu of a density bonus awarded on the basis of dwelling units per acre.

AB 2596 (Cooley D) California Economic Development Strategic Action Plan.

Requires GO-BIZ to lead the preparation of a California Economic Development Strategic Action Plan.

AB 2782 (Friedman D) California Environmental Quality Act.

Authorize a lead agency to consider specific economic, legal, social, technological, or other benefits of, and the negative impacts of denying a project.

AB 2913 (Wood D) Building standards: building permits: expiration.

Extends the amount of time a building permit if valid.  SIGNED INTO LAW.

AB 3002 (Grayson D) Disability access requirements: information.

Require local jurisdictions issuing building permits for commercial construction or business licenses to make available a notice containing specified information regarding disability access.

AB 3232 (Friedman D) Zero-emissions buildings and sources of heat energy.

Requires the Energy Commission to include in the 2021 edition of the integrated energy policy report a report on the emissions of greenhouse gases associated with the supply of energy to residential and commercial buildings.  This bill has been SIGNED INTO LAW.

SB 1145 (Leyva D) Enhanced infrastructure financing districts: maintenance.

Authorizes an EIFD to finance the ongoing or capitalized costs to maintain public capital facilities.

SB 1246 (Gaines R) Property tax: claims for refund.

Provide for a verification of a claim by the trustee of the person who paid certain property taxes.  This bill has been SIGNED INTO LAW.

SB 1397 (Hill D) Automated external defibrillators: requirement: modifications to existing buildings.

Applies current-law AED requirements to building that undertake Tenant Improvements over $100,000.

SB 1415 (McGuire D) Housing.

To respond to illegal residences springing up in industrial buildings, this bill requires code inspection every 5 years all privately owned structures within the Storage Group S occupancy classification.  This bill was introduced to address issues related to the tragic Oakland Ghost Ship Fire.

SB 1416 (McGuire D) Local government: nuisance abatement.

Authorize a city or county to also collect fines for specified violations related to the nuisance abatement using a nuisance abatement lien or a special assessment. This bill was introduced to address issues related to the tragic Oakland Ghost Ship Fire.

 

 

CALTRANS RELEASES 2018 CALIFORNIA STATE RAIL PLAN

Posted: September 14, 2018 | Posted by Crystal Whitfield | No Comments

Earlier this week CALTRANS released the “2018 STATE RAIL PLAN.”  The plan aims to boost the economy, help reduce greenhouse gas emissions and improve safety statewide over the next 20 years.

The plan addressed both passenger rail and freight.  According to a press release by CALTRANS, the freight vision “provides a customer-focused system that will eliminate rail freight bottlenecks on transcontinental trade corridors by investing in dedicated rail freight capacity and passenger improvements that support rail freight movement.” The freight component also supports short line improvements, grade-crossing improvements at a corridor-level to address community safety needs, and integrating as much service as possible.

Caltrans worked extensively with state, regional, and local partners to develop a consensus vision that supports increased efficiencies and connectivity across the state.

Rail is an extremely important component to Goods Movement in the state and is critical infrastructure to support industrial, retail, and commercial real estate.

Click here to view the Rail Plan.

CBPA IS NOW ON BOTH FACEBOOK AND TWITTER

Posted: September 14, 2018 | Posted by Crystal Whitfield | No Comments

With how quickly politics in California moves, sometimes there are a few updates critical to the industry that we will want to release immediately. This is where you can use our Twitter and Facebook to stay up to date on propositions like Prop 10 coming up in November, and Split Roll Tax in 2020.

If you happen to exist on either of these social media platforms, this is just another way for you to be more in the know when it comes to legislation, propositions, campaigns & elections, as well as CBPA’s events!

Below is our social media information:

Twitter: @CBPAtweets

Facebook: California Business Properties Association

LEGISLATIVE SUMMER RECESS BEGINS

Posted: July 6, 2018 | Posted by Crystal Whitfield | No Comments

Back in “the Good Ol’ Days,” reaching the legislative policy deadline marking the start of “Summer Recess” didn’t necessarily mean that the Legislators got to go back to their districts, but usually marked the start of a long hot budget stalemate that sometimes lasted months and even resulted in state workers getting paid in IOU’s.

Then in 2010 you and your fellow Californian voters passed Proposition 25 which removed the two-thirds vote requirement for a budget to pass.

Since then budgets gets passed on a majority vote, controversial “trailer” bills get dealt with later, and the Legislature shuts down for a month to avoid Sacramento’s 110 degree days.

WEEKLY ON HIATUS UNTIL AUGUST 10

Posted: July 6, 2018 | Posted by Crystal Whitfield | No Comments

Because of the lull in legislative activity, the eWeekly will also take a little siesta until Friday, August 10, the week they come back.

But don’t worry, we will be here keeping an eye on the place and preparing for the final push of Session.  And we will definitely alert you of any major breaking news.

CA MANDATORY BENCHMARKING LAW – AB 802

Posted: July 6, 2018 | Posted by Crystal Whitfield | No Comments

California’s mandatory commercial building benchmarking law is one of the topics we are contacted about the most and since the law finally went into place on June 1, of this year, the amount of questions we have received have spiked dramatically.

Because of the increase in interest (and the fact that many of your buildings must comply with the law) we thought now might be a good time to re-present information on this topic to help our members understand the process and how to comply.

It all started in the year 2007 with AB 1103, a bill that passed the Legislature and was signed into law by then Governor Schwarzenegger, over our industry’s strenuous objections.  We weren’t opposed to benchmarking, per se, but believed the way the bill was going to be difficult to implement in that it required every non-residential building in the State of California to be benchmarked.  Period.  No flexibility.

Our warnings that such a sweeping mandate would be an overwhelming regulation to implement came to fruition and after several years the complicated process was abandoned, and stakeholders were brought together to start over and write a statute – that retained the “mandate” but did so in a manner that could actually work in the Real World.

The result was that in 2015 the original statute placed on the books by AB 1103 was repealed and new, more flexible statutory language was signed into law by Governor Brown in the form of AB 802.  That bill re-calibrated the regulatory process and addressed a number of complaints our industry has had with the original law:

-AB 1103 mandated ALL buildings must be benchmarked regardless of size or use; AB 802 states that buildings 50K s.f. and above must be benchmarked and allows the Energy Commission some discretion to exempt certain building types and situations (i.e. the CEC could decide that long-term empty buildings or buildings scheduled for razing need not be benchmarked).

-AB 1103 was a transaction based program – benchmarking was triggered by a sale/lease of whole building/refinance.  The transaction based approach had many unintended consequences such as requiring actively managed buildings to be benchmarked more often than buildings that are not; put an unnecessary technical process in the middle of a real estate transaction; and required benchmarking be provided to parties that were not making management decisions (i.e. lenders);  AB 802 allows the CEC to determine the best trigger for benchmarking – that could be transaction based or time certain (i.e. once every two years).

– Under AB 1103 many building owners were unable to get tenant energy information from local utilities; AB 802 clarifies that utilities are required to provide information; in an aggregated format if there are privacy concerns in multi-tenant buildings.  Although some building owners are currently having trouble accessing this information from some utilities the law is clear that owners do not need to get permission from tenants and/or utilities for these purposes.

– AB 1103 treated income producing properties separately by only focusing on commercial; AB 802 – with the support of the Apartment industry – includes certain multi-family housing properties.

Our industry was also given two years to prepare for implementation as reporting did not begin until June 1, 2018.

Now that the implementation phase is underway the rule of thumb is that, with some exceptions, if you have a building that is 50K s.f. or more you must benchmark it annually using Energy Star and report the numbers.  See below for more info.

CA MANDATORY BENCHMARKING LAW – RESOURCES

Posted: July 6, 2018 | Posted by Crystal Whitfield | No Comments

With a few exceptions, if you have a building that is 50K s.f. or more you need to benchmark it annually using Energy Star and report numbers to the Energy Commission.  Our industry has worked with policymakers and regulators all along the process to provide input that will hopefully make compliance for a vast majority of our members relatively simple.

However, we know some situations may not go smoothly or may present unique questions that require more information.  Below are links that we hope will help.

— Detailed information about the Building Energy Benchmarking Program including fact sheets and frequently asked questions are on the CEC’s benchmarking website.

— Several webinars for different stakeholders have been held.  Here are links to recordings of each webinar:

CEC AB 802 Building Owner & Representative Stakeholder Webinar

CEC AB 802 Public Agency Stakeholder Webinar

CEC AB 802 Utility Stakeholder Webinar

CEC AB 802 Energy Consultant Stakeholder Webinar 

— More webinars are on their way.  If you don’t want to watch a recorded webinar you can participate in one of the following live events:

 

Energy Consultants July 11, 2018 10-11 am Sign up
Utility Companies July 16, 2018 11 am-12 pm Sign up
Public Agencies July 23, 2018 1-2 pm Sign up
Building Owners July 25, 2018 10-11 am Sign up

— The Energy Commission is also hosting a Q&A Session on July 13, which are available for sector-specific support related to compliance and disclosure.  

Simply Join the webinar at time slot of choosing: Sign up 

Warehouse/Storage Q&A:  July 13, 2018 — 11-11:30 am

Retail Q&A: July 13, 2018 — 11:30 am- 12 pm

Offices Q&A: July 13, 2018 — 12-12:30 pm

Education Q&A: July 13, 2018 — 12:30-1 pm

We hope that one or all of these resources can help those companies that are having trouble implementing the law.  For additional information or questions, please contact the Benchmarking Hotline at (855)279-6460 or Benchmarking@energy.ca.gov.

CALIFORNIA COMMERCIAL REAL ESTATE SUMMIT; SUCCESS!

Posted: June 22, 2018 | Posted by Crystal Whitfield | No Comments

This week the annual California Commercial Real Estate Summit (CCRES) was held in Sacramento and attended by over 80 real estate leaders who converged on California’s Capitol to advocate on behalf of the commercial, retail, and industrial real estate industry.  “Teams” of advocates, made up of leaders from all over the state, met with almost half of the state Legislature.

Prior to meeting with legislators, industry leaders got to spend some time with Diana Dooley, then newly appointed advisor to Governor Jerry Brown.  Ms. Dooley is the de facto chief of staff to the Governor and an extremely important contact for our industry to communicate with on how different policy initiatives will impact commercial real estate.

First, advocates raised awareness for the need for the state to continue to address and reform ADA laws to minimize unnecessary lawsuits and expand actual access.  We also encouraged state lawmakers to ask the U.S. Senate to take up H.R. 620 which has passed the House of Representatives but has yet to find traction in the upper house.  That measure will go a long way to stymie the trend of avoiding California’s laws by filing lawsuits in federal course.

Your colleagues also made sure that legislators understood the negative impacts that Split Roll property tax would have on the economy of California and individual businesses.  As signatures are being gathered for a November 2020 ballot measure to eviscerate Proposition 13 protections, it is important that we continue to press facts and figures with policymakers while raising funds to support the expensive battle to come.

CCRES is the one time of year that industry leaders from all sectors of the commercial, industrial, and retail real estate industry converge on California’s Capitol to meet with policymakers. The summit gives you an opportunity to meet other industry leaders from across the nation, high-level staff from Governor Brown’s Administration, and California State Legislators.

Please help us thank all the members who trekked to Sacramento to advocate on our industry’s behalf!

COMMERCIAL REAL ESTATE LEGISLATORS OF THE YEAR; GLAZER AND BAKER

Posted: June 22, 2018 | Posted by Crystal Whitfield | No Comments

We were also pleased to present our 2018 Legislators of the Year award to Senator Steven Glazer (D-Orinda) and Assemblymember Catharine Baker (R-Dublin).  At a packed dinner in Old Sacramento on Tuesday night, we heard how the two legislators with overlapping districts have evolved from rivals running against each other, to a bi-partisan “dynamic duo” that work together on legislation and have done more than a dozen town halls together.

Our industry has worked closely with both legislators on a number of issues ranging from online sales taxes to CEQA and presented both with a plaque recognizing their leadership.  In turn, the Senator and Assemblymember presented Rex S. Hime, President and CEO of CBPA with a mock “concert tour” t-shirt, noting all the cities visited by Glazer and Baker.

The goal of the California Commercial Real Estate Summit is to increase public policy and political awareness of state issues impacting commercial, industrial, and retail real estate, and to foster collaborative efforts among business leaders from all sectors of California and their representatives in the State Legislature.  Recognizing legislators that take the time to listen to concerns of our industry is an important part of the event.

We would like to thank all our members who took the time to attend the CCRES!

SUPREME COURT GIVES HUGE WIN TO BRICK-AND-MORTAR!

Posted: June 22, 2018 | Posted by Crystal Whitfield | No Comments

The United State Supreme Court handed down a decision in a case we have been closely following and, in California, have helped drive much of the discussion. The South Dakota v. Wayfair decision overturns the outdated Quill decision from 1992 and clears the way for states to collect sales taxes from retailers that do not have a physical presence in their state.

This is a massive win for companies that own buildings that provide shopping services to the public and corrects a decades-long loophole that allowed online retailers to avoid charging sales tax just like physical retailers, which created a perverse incentive to not build in certain states.

At the national level we congratulate both International Council of Shopping Centers and the Retail Industry Leaders Association (RILA) for their years of dogged work on this issue.

Tom McGee, President & CEO, ICSC, stated, “Today was an historic and important day for our industry. The United States Supreme Court ruled in favor of overturning the outdated standard set in of the 1992 Quill decision that prevented states from collecting sales tax for online purchases. The decision in South Dakota v. Wayfair was 5-4, and signaled that the justices recognized the need to bring the law into the 21st century.

“This is a critical step in leveling the playing field between brick-and-mortar retailers and online-only sellers. ICSC has been actively engaged in this issue for more than a decade, aggressively advocating for sales tax fairness on our members’ behalf. More recently, we led the real estate amicus brief in support of the tax law passed by the State of South Dakota.

“The victory means that state’s rights have been restored and they will now be allowed to implement sensible laws to collect the sales tax they depend on. The next step is for state and federal lawmakers to create formal tax policy that supports fairness and ICSC will continue to be actively involved on this front.

“We are pleased with the court’s ruling and knowing that the free market principles that are central to America’s economic system can once again be applied fairly to retailers across the country.”

LACTATION ACCOMODATIONS BILLS

Posted: June 22, 2018 | Posted by Crystal Whitfield | No Comments

Two bills are making their way through the California State Legislature that would expand requirements for lactation accommodations at the workplace.  We believe that one, if not both, of these bills will make it to the Governor and have a good chance at being signed.  With that in mind our industry is moving to support AB 1976 (Limón-D; Santa Barbara) which is based on current federal/state law while explaining while opposing SB 937 (Wiener; D-San Francisco) as we do not believe it is the best route to go because it would trigger millions of dollars unnecessary construction expenses.

AB 1976 requires employers’ already-required “reasonable efforts” to provide a room or location for lactation consists of providing something other than a toilet stall or bathroom. (by deleting “toilet stall” and inserting “bathroom” in the statute).

Our industry has indicated we would SUPPORT this measure if it would simply include a “hardship exemption” for those workplaces that do not have the ability to provide separate space.

An example of a workplace that might need such an exemption would be a multi-tenant industrial building where workspaces have no offices.  Such space is typically occupied by the following type of businesses:  Small manufacturers; distributors; auto repair; landscape service companies; plumbers; HVAC repair companies, etc.

There is no way that these tenants or property owners could comply thus they will need a hardship exemption.

In Southern California alone, about 1.2 billion SF of industrial space of this type.  Most of it was built before the year 2000 and we would estimate about half of the base is small tenant spaces ranging from 500 SF to 50,000 SF.

Ironically, *If* there was a lactating mother working in such an environment, the bill would make it illegal for them to not use the safest place in the work area, the bathroom.

The other bill, SB 937 would more substantively change existing lactation accommodation requirements, by requiring a lactation room to be safe, clean, and free of toxic or hazardous materials, contain a surface to place a breast pump and personal items, contain a place to sit, and have access to electricity and water.  The bill would exempt employers with fewer than 50 employees that can show that the requirement would impose an undue hardship.

Cost estimates to comply range from $30K to $105K for an existing building that must create new space.  We think this is not the right approach to the issue and hope the legislature will stop this measure.

We will keep you posted on both measures.

INDOOR HEAT ILLNESS RULE

Posted: June 22, 2018 | Posted by Crystal Whitfield | No Comments

In 2017, Cal/OSHA convened two stakeholder advisory committees to tackle the challenge of reaching consensus among interested parties from industry, labor, management and academia on how to regulate the prevention of heat illness for indoor workers.  To date, Cal/OSHA has provided draft rules for discussion only—no formal rulemaking has begun. These draft rules propose to regulate all indoor workplaces for these purposes.

Believe it or not, defining an indoor workplace, as opposed to an outdoor workplace, has proven to be challenging, including determining when vehicles and equipment are indoor or outdoor. Many employers have both outdoor and indoor workplaces, with some or all employees transitioning between both.

These questions of scope require industry input to provide Cal/OSHA the most rational and complete understanding of operations and risks, as well as rational, feasible policies to address those identified risks.

We are partnered with the CalChamber and have submitted a fourth set of comments on a fourth draft of the Cal/OSHA proposed draft indoor heat illness rule as it will ultimately have an impact on you.

Click here for more information on the Indoor Heat Illness Rule.

JUNE 5TH STATEWIDE BALLOT PROPOSITIONS

Posted: May 25, 2018 | Posted by Crystal Whitfield | No Comments

The Primary Election on June 5th holds a lot of intrigue for political junkies and many of us waiting to see how many same-party-on-party battles we will see in the General Election.

However, there are several propositions on the ballot too.  The State Legislature changed the way ballot proposition work a few years ago and only those approved by the legislature can be on the June ballot.  That is why you will have to wait until November to vote on most of the controversial items.

As a standard practice, BOMA California only takes positions on propositions that have a unique or disproportionate impact on the commercial real estate industry.  However, we also hold several seats on the California Business Properties Association board of directors which has taken a position on all the measures.

CBPA has taken the following positions on these measures and recommends you support all the propositions:

 

Proposition 68 — Issues $4 billion in bonds for water infrastructure, parks, and environmental protection.

CBPA POSITION: SUPPORT

 

Proposition 68 — Issues $4 billion in bonds for water infrastructure, parks, and environmental protection.

CBPA POSITION: SUPPORT

 

Proposition 69 — Requires certain tax and fee revenue related to transportation be used for transportation purposes.

CBPA POSITION:  SUPPORT

 

Proposition 70 — Requires a one-time two-thirds vote to use revenue from the cap-and-trade program.
CBPA POSITION:  SUPPORT

 

Proposition 71 — Changes the date for when voter-approved ballot measures take effect.

CBPA POSITION: SUPPORT

 

Proposition 72 — Excludes rainwater capture systems from property tax assessments.

CBPA POSITION: SUPPORT

MANDATORY BENCHMARKING WEBINAR NEXT WEEK

Posted: May 25, 2018 | Posted by Crystal Whitfield | No Comments

The Energy Commission is hosting a webinar aimed at companies who own/manage buildings to help with AB 802 Benchmarking and Reporting Requirements.

If you own and/or are responsible for any commercial building over 50,000 s.f. this regulation applies to you and the deadline for completion is technically June 1, 2018.  If you are uncertain how to comply, this webinar is for you.  We have worked extensively with the CEC over the last few years to raise potential implementation issues and expect this webinar will address many questions you will have.

Click here to register and for more information on the AB 802 BENCHMARKING WEBINAR.

For more information and resources, including the adopted regulatory language, please point your browser to the CBPA AB 802 Benchmarking Resources Page.

We have worked on this regulation for more than 8 years in conjunction with the California Energy Commission.  Although we believe it is written as well as can be expected, we know that issues will come up during implementation, and highly recommend you participate in the webinar to assure issues and concerns are brought forward.

COASTAL COMMISSIONERS ARE HIT WITH EX PARTE COMMUNICATION FINES

Posted: May 25, 2018 | Posted by Crystal Whitfield | No Comments

For those of you that work in the Coastal Zone this is an interesting article in that it quotes a portion of the ruling where the court questions the whole premise of the Coastal Commission hearing process and invites the legislature to amend the process.  Click here to read the article.

ECONOMIC GROWTH, REGULATORY RELIEF, AND CONSUMER PROTECTION ACT SIGNED BY PRESIDENT

Posted: May 25, 2018 | Posted by Crystal Whitfield | No Comments

In a bit of good news for our industry, President Trump has signed the Economic Growth, Regulatory Relief, and Consumer Protection Act into law.

This reform legislation was supported by our industry as it includes language to ensure there is adequate capital availability for commercial construction financing.

The bill requires banking regulators to revise elements of the current High Volatility Commercial Real Estate (HVCRE) designation that unfairly targeted commercial construction lending, including.

For more information on this issue here is an article from March that goes into details about the impact of the provisions of the bill.

CALIFORNIA COMMERCIAL REAL ESTATE SUMMIT JUNE 19-20, 2018

Posted: May 25, 2018 | Posted by Crystal Whitfield | No Comments

The California Commercial Real Estate Summit (CCRES) will be held at the California Chamber of Commerce Headquarters in Sacramento on June 19-20, 2018.  This event is the one time of year that industry leaders from all sectors of the commercial, industrial, and retail real estate industry converge on California’s Capitol to meet with policymakers. The summit gives you an opportunity to meet other industry leaders from across the nation, high-level staff from Governor Brown’s Administration, and California State Legislators.

Click here to register!

CBPA has reserved a block of rooms at The Hyatt Regency Sacramento.  Please contact the Hyatt Regency directly at 916-443-1234. Ask for the CBPA rate.

We encourage you to consider one of the sponsorship opportunities and to be a part of this exciting industry event.  Click here for more information on becoming a sponsor!

We look forward to seeing you in June!

CALL TO ACTION – HELP DEFEAT ONEROUS TAX MEASURE IN SF

Posted: May 18, 2018 | Posted by Crystal Whitfield | No Comments

There are two onerous tax measures on the San Francisco ballot in June that could decimate the commercial real estate industry in that city. We are looking to all members of the business community to contribute to help defeat them.

Our local team at BOMA San Francisco is fighting hard against the measure and has done recent polling that shows they do have the opportunity to push back the threats, and they are working with a professional team and a broad range of business allies.

They are asking for your immediate help – these taxes are exportable, and your city may be next! BOMA San Francisco’s PAC, BOMA International, BOMA Greater Los Angeles, NAIOP SF, and many other investors and owners of commercial real estate have contributed to this effort.

Please find a remit here and more information about the campaign via the links below.  They need to raise $1.5 million+ – and with commitments have raised $1 million+ to date – to defeat the two measures that would massively impact building value and tenants directly.

The campaign is going strong – here are the links to the campaign website, Facebook page and videos that are airing strategically on cable. There are also mail pieces/window signs and a social media/internet strategy component.

 

For direct information as to how you can help, please contact John Bozeman, BOMA San Francisco’s Director of Government and Industry Affairs at johnb@boma.com.

PROP 13 REFORM REJECTED BY LEGISLATURE AND SPLIT ROLL PROPONENTS

Posted: May 18, 2018 | Posted by Crystal Whitfield | No Comments

“The defeat of SB 1237 is another sad example of politics over policy – a roadblock to providing local government with resources to meet their many needs,” stated Res Hime, President and CEO of California Business Properties Association when the bill that would have “fixed” an issue  pointed to by proponents of split roll property tax as the reason the Prop. 13 needs to be repealed.

According to the author Senate Republican Leader Patricia Bates (R-Laguna Niguel), SB 1237 would revise the definition of “change of ownership” in the Revenue and Tax Code for purposes of determining the property tax base value of commercial property. The bill is designed to prevent a repeat like the 2006 purchase of a hotel in Santa Monica where the purchaser realized he could structure the transaction without any one entity owning a 50 percent majority share in the property as defined currently under “change of ownership.”

Even though 100 percent of the original ownership of the hotel changed hands, the property was not reassessed, resulting in a tax loss to Los Angeles County of over a million dollars annually.

Senator Bates authored a nearly identical bill in 2016, which won bipartisan support from the Senate Governance and Finance Committee, only to be killed quietly by the Democrat-controlled Senate Appropriations Committee.

A similar bill authored by former Assembly Members Tom Ammiano (D-San Francisco) and Raul Bocanegra (D-Pacoima) earned bipartisan support in 2014 and cleared the Assembly, only to die in the Senate.

Click here for a story from our friends at Fox & Hounds.

Below is more information on the bill.

THERE IS NO LOOPHOLE IN PROPOSITION 13

Posted: May 18, 2018 | Posted by Crystal Whitfield | No Comments

Patricia Bates, the California Senate’s Republican leader and Jon Coupal, president of the Howard Jarvis Taxpayers Association, explain why there is no so-called “loophole” in the Prop. 13.

There is an ambiguity that could be clarified – and CBPA sponsored a measure in the past to do just that.  Senator Bates is attempting that fix again.  Last time it was attempted the author of the measure – a Democrat – found the rug pulled-out from under him as advocates for eliminating Prop. 13 killed the bill so as not to take away an effective cudgel for their effort.

The bill, SB 1237 will be heard next week in the Senate Governance and Finance Committee.

Click here to read the article.

SALES TAX ON SERVICES SB 993 STALLS – FOR NOW

Posted: May 18, 2018 | Posted by Crystal Whitfield | No Comments

Purportedly to help “provide tax relief to middle-income and low-income Californians,” SB 993 (Hertzberg; D-Van Nuys), would impose a 3-percent tax on services purchased by businesses.  This policy would have a major impact on commercial real estate as everything from accounting to landscaping could see a cost increase under the measure.

A press release from Hertzberg’s office, notes that the services targeted for the tax include “high-end business services, such as those provided by lawyers, consultants, and accountants for corporations and other high-income businesses.”

But the bill would also tax day-to-day operational needs like janitorial services.  While some of our largest companies can avoid paying the taxes by bringing some of those functions in house, smaller businesses won’t have that luxury.

We joined a large coalition of allies and worked hard to defeat the bill.  It was heard in committee this week “without a vote,” meaning they listened to testimony but didn’t actually vote on the measure.  That is a good sign.  Because the bill is a tax increase, it requires a 2/3 vote majority and while normal legislative deadlines technically apply to the bill, if it “has the votes” can move by waiving the rules.

We will continue to follow this issue closely and keep pressure on the Legislature to abandon this ill-conceived tax increase.

CALIFORNIA WATERFIX FORMS JOINT POWERS AUTHORITY

Posted: May 18, 2018 | Posted by Crystal Whitfield | No Comments

The old adage goes that “in California whiskey is for drinking and water is for fighting.”

Uniting Southern and Northern California in a collaborative water supply reliability vision, the Metropolitan Water District of Southern California (MWD), Santa Clara Valley Water District (SCVWD) and Zone 7 Water Agency today announced their partnership and formation of the Delta Conveyance Design and Construction Joint Powers Authority (DCA) — the public agency that will be charged with the design and construction of California WaterFix.

On a parallel path, the California Department of Water Resources (DWR) has now created the Delta Conveyance Office (DCO), which will oversee the work of the DCA. More information is available here.

This is an encouraging sign that some of the fighting has waned… a tiny bit.

CALIFORNIA BENCHMARKING WEBINAR AND RESOURCES

Posted: May 18, 2018 | Posted by Crystal Whitfield | No Comments

NEW:  Benchmarking Compliance Webinar Just Announced.  May 29, 2018. Click here for more details and to sign up.

Several weeks ago, the State of California finalized the AB 1103/AB 802 Energy Benchmarking Regulations. This has been a long process and we have been involved every step of the way. The bottom line is that as of June 1, 2018, all buildings over 50,000 square feet – with some exemptions – need to be benchmarked and data shared with the Energy Commission.

However, the rollout of the regulation is still unfolding. The CEC is working on materials and communications to help with compliance, and we are helping them work through the issues and work out the bugs.

We have set up a resource page where you can find a FAQ, the adopted regulations, and a link to the CEC page with more information.

Click here for the CBPA CA Mandatory Benchmarking Resource Page.

Compliance deadline is June 1st so if you have not enrolled in Energy Star yet, you may want to begin the process.

STATE MANDATES SOLAR ON NEW HOMES

Posted: May 18, 2018 | Posted by Crystal Whitfield | No Comments

Our good friend Bob Raymer, California Building Industry Association’s State Technical Director made an appearance on national news this week to talk about the new state solar mandate. This is definitely worth the two minutes to watch!

Click here to watch the video.

Here is more information about the mandate:

The State of California, through the state’s Energy Commission, adopted a first in the nation policy that requires solar energy systems for all new homes.  Starting in 2020, the building energy efficiency standards, are meant to reduce greenhouse gas emissions by an amount equivalent to taking 115,000 fossil fuel cars off the road

The commission believes the regulation will increase the cost of a home by a minimum of $9,500 but will save $19,000 in reduced utility bills over a 30-year period.

“With this adoption, the California Energy Commission has struck a fair balance between reducing greenhouse gas emissions while simultaneously limiting increased construction costs,” said California Building Industry Association CEO and President Dan Dunmoyer. “We thank the Commissioners and their staff for working with the building industry during the past 18 months and adopting a set of cost-effective standards that ensures homebuyers will recoup their money over the life of the dwelling.”

The Commission has indicated that the next round of energy regulations will focus primarily on the non-residential sector.  So, your building is next!

CALIFORNIA COMMERCIAL REAL ESTATE SUMMIT JUNE 19-20, 2018

Posted: May 18, 2018 | Posted by Crystal Whitfield | No Comments

The California Commercial Real Estate Summit (CCRES) will be held at the California Chamber of Commerce Headquarters in Sacramento on June 19-20, 2018.  This event is the one time of year that industry leaders from all sectors of the commercial, industrial, and retail real estate industry converge on California’s Capitol to meet with policymakers. The summit gives you an opportunity to meet other industry leaders from across the nation, high-level staff from Governor Brown’s Administration, and California State Legislators.

Click here to register!

CBPA has reserved a block of rooms at The Hyatt Regency Sacramento.  Please contact the Hyatt Regency directly at 916-443-1234. Ask for the CBPA rate.

We encourage you to consider one of the sponsorship opportunities and to be a part of this exciting industry event.  Click here for more information on becoming a sponsor!

We look forward to seeing you in June!

MAJOR LEGISLATIVE DEADLINE APPROACHES

Posted: April 27, 2018 | Posted by Crystal Whitfield | No Comments

Today is a major legislative deadline that requires all policy committees to pass any bill with a fiscal cost to the State, on to Appropriations Committee, or they are “dead” for the year.  This means basically in the past two weeks, we have dealt with hundreds of bills in legislative hearing, negotiating amendments, and making our case as to why they are good or bad for your company.

PRIORITY BILLS IN THE LEGISLATURE

Posted: April 27, 2018 | Posted by Crystal Whitfield | No Comments

We are currently following more than 500 pieces of legislation that has a potential impact on your business.  Below is long list of bills that we are working on and our position on the measures.  To read the statutory language and see analysis, you can click on the bill number.  Any feedback and/or analysis that you may have is welcome!

Last week we shared a long list of Assembly bills.  This week is a list of the bills that were introduced in the Senate:

SB 100 (De León D) California Renewables Portfolio Standard Program: emissions of greenhouse gases.

Summary:  The Legislature has found and declared that its intent in implementing the California Renewables Portfolio Standard Program requires the PUC is to attain, among other targets for sale of eligible renewable resources, the target of 50% of total retail sales of electricity by December 31, 2030. This bill would revise the above-described legislative findings and declarations to state that the goal of the program is to achieve that 50% renewable resources target by December 31, 2026, and to achieve a 60% target by December 31, 2030.

Position:  OPPOSE

SB 827 (Wiener D) Planning and zoning: transit-rich housing bonus.

Summary:  Would require a local government to, if requested, grant a development proponent of a transit-rich housing project a transit-rich housing bonus if that development at the time of submittal meets specified planning standards, including complying with demolition permit requirements, complying with any local inclusionary housing ordinance or, if the local government has not adopted an inclusionary housing ordinance, agreeing to provide a specified percentage of awarded units as onsite affordable housing, preparing a relocation benefits and assistance plan, complying with any locally adopted objective zoning standards, complying with any locally adopted minimum unit mix requirements, and if the development includes specified types of parcels, agreeing to replace those units and to offer units at one of 2 specified affordable rates.

Position:  SUPPORT – DEAD IN ITS FIRST HEARING

SB 831 (Wieckowski D) Land use: accessory dwelling units.

Summary:  Would instead authorize a local agency to provide by ordinance for the creation of accessory dwelling units in areas where a single-family or multifamily dwelling is authorized, and would require the ordinance to designate areas where accessory dwelling units may be excluded for fire and life safety purposes, as specified. The bill would revise the standards for the local ordinance to, among other things, include a prohibition on considering the square footage of a proposed accessory dwelling unit when calculating an allowable floor-to-area ratio for the lot.

Position:  SUPPORT

SB 937 (Wiener D) Lactation accommodation.

Summary:  Would require a lactation room or location to include prescribed features and would require an employer to provide access to a sink and refrigerator in close proximity to the employee’s work space. The bill would establish a procedure for an employer with fewer than 5 employees to apply to the Division of Labor Standards Enforcement for an undue hardship exemption from the lactation room or location requirement. The bill would require an employer to develop and implement a policy regarding lactation accommodation and make it available to employees, as specified.

Position:  REQUESTING AMENDMENTS

SB 993 (Hertzberg D) Sales tax: services.

Summary:  Would, on and after January 1, 2019, expand the Sales and Use Tax Law to impose a tax on the purchase of services by businesses in California at a specified percentage of the sales price of the service. The bill would require the tax to be collected and remitted by the seller of the purchased services. The bill would exempt certain types of services, including health care services, from the tax and would exempt from the tax a business with gross receipts of less than $100,000 in the previous 4 quarters.

Position:  OPPOSE

SB 1145 (Leyva D) Enhanced infrastructure financing districts: maintenance.

Summary:  Current law authorizes the legislative body of a city or a county to establish an enhanced infrastructure financing district to finance public capital facilities or other specified projects of community significance. Current law prohibits a district from financing routine maintenance and repair work. Existing law authorizes the issuance of bonds for the funding of these purposes if approved by 55% of the voters voting on a proposal to issue the bonds. This bill, instead, would authorize a district to finance the ongoing or capitalized costs to maintain public capital facilities financed in whole or in part by the district, but would prohibit the use of proceeds of bonds issued to finance maintenance of any kind.

Position:  SUPPORT

SB 1234 (Vidak R) Employee wages: payment.

Summary:  Current law, with certain exceptions, requires that employers pay wages to their employees twice per calendar month on days designated in advance as regular paydays. A violation of that requirement is a crime. Current law exempts the payment of wages of employees directly employed by the State of California from that requirement. This bill would repeal that exemption as of January 1, 2020, thereby subjecting the payment of wages of employees directly employed by the State of California to the twice-per-month requirement. By changing the definition of a crime, this bill would impose a state-mandated local program.

Position:  SUPPORT

SB 1341 (Glazer D) California Environmental Quality Act: judicial challenge: identification of contributors.

Summary:  Would require a plaintiff or petitioner, in an action brought pursuant to the California Environmental Quality Act, to disclose the identity of a person or entity that contributes in excess of $1,000, as specified, toward the plaintiff’s or petitioner’s costs of the action. The bill also would require the plaintiff or petitioner to identify any pecuniary or business interest related to the project of any person or entity that contributes in excess of $1,000 to the costs of the action, as specified. The bill would provide that a failure to comply with these requirements may be grounds for dismissal of the action by the court.

Position:  SUPPORT

SB 1397 (Hill D) Automated external defibrillators: requirement: modifications to existing buildings.

Summary:  Current law requires certain occupied structures that are not owned or operated by any local government entity and are constructed on or after January 1, 2017, to have an automated external defibrillator (AED) on the premises. This bill would apply the AED requirements to certain structures that are constructed prior to January 1, 2017, and subject to subsequent modifications, renovations, or tenant improvements, as specified.

Position:  ASKING FOR AMENDMENTS

SB 1398 (Skinner D) Corporation taxes: tax rates: publicly held corporations: credits.

Summary:  The Corporation Tax Law imposes taxes according to or measured by net income at a rate of 8.84%, or for financial institutions, at a rate of 10.84%, as specified. This bill would, for taxable years beginning on and after January 1, 2019, revise that rate for taxpayers that are publicly held corporations, as defined, and instead impose a tax rate from 8.84% to 13%, or for financial institutions, from 10.84% to 15%, based on the compensation ratio, as defined, of the corporation.

Position:  OPPOSE

SB 1415 (McGuire D) Housing.
Summary:  Would require each entity responsible for enforcing building standards and other regulations of the State Fire Marshal, as specified, to inspect, every 5 years, all structures within the entity’s responsibility that are in the Factory Industrial Group F, High-Hazard Group H, and Storage Group S occupancy classifications, as described, for compliance with those standards and regulations, or, if applicable, more stringent or restrictive local regulations. The bill would authorize an entity that inspects a structure pursuant to these provisions to charge and collect a fee from the owner of the structure to recover the costs of the inspection or related fire and life safety activities.
Position:  SUPPORT

SB 1416 (McGuire D) Local government: nuisance abatement.

Summary:  Current law authorizes the legislative body of a city or county to establish a procedure to use a nuisance abatement lien or a special assessment to collect abatement costs and related administrative costs. This bill would authorize, until January 1, 2024, the legislative body of a city or county to also collect fines related to the nuisance abatement using a nuisance abatement lien or a special assessment.

Position:  SUPPORT

HOUSING COALITION STUDY SHOWS GAS KEEPS HOMES AFFORDABLE

Posted: April 27, 2018 | Posted by Crystal Whitfield | No Comments

The California Building Industry Association, affordable housing advocates, and community and business organizations representing millions of Californians today announced the results of two new studies that reveal the high cost of electrifying California homes and a strong preference among voters for more affordable natural gas appliances.

The analysis, conducted by Navigant Consulting found that in homes with natural gas appliances, swapping those appliances for all electric alternatives would cost the average household in Southern California more than $7,200 to upgrade wiring and electrical panels and purchase new appliances. This, along with higher electricity bills, could increase energy costs up to $877 per household each year. Across Southern California’s 7 million single-family homes, the total cost increase is $4.3 to $6.1 billion per year.

 A separate, recent poll conducted by the California Building Industry Association (CBIA) found that when purchasing a home, only one-in-ten would choose solely electrical appliances and fully two-thirds of voters oppose eliminating the use of natural gas in California. Moreover, recent and proposed updates to residential energy efficiency standards, mandated by the California Energy Commission (CEC), could increase the cost of housing by as much as $20,000 – further impacting affordability for already struggling Californians.

Click here for the full press release.

SPLIT ROLL BATTLE IS ON AND SCHEDULED FOR NOVEMBER 2020!

Posted: April 27, 2018 | Posted by Crystal Whitfield | No Comments

Proponents of the Split Roll Property Tax measure that is currently circulating believe they will reach the required number of signatures.  They have also decided to move the measure for the November 2020 ballot measure.  They believe that more time to message and fundraise coupled with an expected higher Democrat-base voter turnout in the Presidential election will give them a higher chance of winning.

By the same token, this also allow opponents more time to educate voters on why an $11B tax increase is a bad idea.

In boxing terms – we now know when the Title Bout is scheduled and we need to start training if we hope to win!

Click here for a story from the L.A. Times with more detail about politics of split roll and why you are in the crosshairs.

CALIFORNIA BENCHMARKING REGULATION RESOURCES

Posted: April 27, 2018 | Posted by Crystal Whitfield | No Comments

Several weeks ago, the State of California finalized the AB 1103/AB 802 Energy Benchmarking Regulations. This has been a long process and we have been involved every step of the way. The bottom line is that as of June 1, 2018, all buildings over 50,000 square feet – with some exemptions – need to be benchmarked and data shared with the Energy Commission.

However, the rollout of the regulation is still unfolding. The CEC is working on materials and communications to help with compliance, and we are helping them work through the issues and work out the bugs.

We have set up a resource page where you can find a FAQ, the adopted regulations, and a link to the CEC page with more information.

Click here for the CBPA CA Mandatory Benchmarking Resource Page.

Stay tuned for more information and webinars to help you comply by the June 1st deadline.

CALIFORNIA COMMERCIAL REAL ESTATE SUMMIT JUNE 19-20, 2018

Posted: April 27, 2018 | Posted by Crystal Whitfield | No Comments

The California Commercial Real Estate Summit (CCRES) will be held at the California Chamber of Commerce Headquarters in Sacramento on June 19-20, 2018.  This event is the one time of year that industry leaders from all sectors of the commercial, industrial, and retail real estate industry converge on California’s Capitol to meet with policymakers. The summit gives you an opportunity to meet other industry leaders from across the nation, high-level staff from Governor Brown’s Administration, and California State Legislators.

 Click here to register!

CBPA has reserved a block of rooms at The Hyatt Regency Sacramento.  Please contact the Hyatt Regency directly at 916-443-1234. Ask for the CBPA rate.

We encourage you to consider one of the sponsorship opportunities and to be a part of this exciting industry event.  Click here for more information on becoming a sponsor!

 We look forward to seeing you in June!

MAJOR LEGISLATIVE DEADLINE APPROACHES

Posted: April 20, 2018 | Posted by Crystal Whitfield | No Comments

Next Friday is a major legislative deadline that requires all policy committees to pass any bill with a fiscal cost to the State, on to Appropriations Committee, or they are “dead” for the year.  This basically means that in the next week, hundreds of bills we care about will have a hearing in the Capitol and is one of the busiest times of year.

PRIORITY BILLS IN THE LEGISLATURE

Posted: April 20, 2018 | Posted by Crystal Whitfield | No Comments

We are currently following more than 500 pieces of legislation that has a potential impact on your business.  Below is long list of bills that we are working on and our position on the measures.  To read the statutory language and see analysis, you can click on the bill number.  Any feedback and/or analysis that you may have is welcome!

 

AB 166 (Salas D) Building Homes and Jobs Act: recording fee: hardship refund.

Summary:  SB 2 passed signed into law last year mandates a fee on recorded document of up to $250 per transaction.  This bill would authorize a property owner to request a refund based on hardship of a fee, proposed to be imposed by SB 2.

Position:  SUPPORT

 

AB 238 (Steinorth R) Emergency response: trauma kits.

Summary:  Would define “trauma kit” to mean a first aid response kit that contains specified items, including, among other things, at least 2 tourniquets. The bill would require a person or entity that supplies a trauma kit to provide the person or entity that acquires the trauma kit with all information governing the use, installation, operation, training, and maintenance of the trauma kit. The bill would apply the provisions governing civil liability as specified to a lay rescuer or person who renders emergency care or treatment by using a trauma kit and to a person or entity that provides training in the use of a trauma kit to provide emergency medical treatment, or certifies certain persons in the use of a trauma kit.

Position:  NEUTRAL – STATE BUILDINGS ONLY

 

AB 1565 (Thurmond D) Labor-related liabilities: original contractor.

Summary: This bill would repeal specified provisions that state that the obligations and remedies are in addition to existing obligations and remedies provided by law, except that the provisions are not to be construed to impose liability on a direct contractor for anything other than unpaid wages and fringe or other benefit payments or contributions including interest owed.

Position:  SUPPORT

 

AB 1857 (Nazarian D) Building codes: earthquake safety: immediate occupancy standard.

Summary:  Would require the California Building Standards Commission to assemble a functional recovery working group comprised of certain state entities and members of the construction and insurance industries, as specified. The bill would require the group, by July 1, 2020, to investigate and determine criteria for a “functional recovery” standard following a seismic event, for all or some building occupancy classifications and to direct the commission to propose the appropriate building standards, as specified. The bill would require the commission to produce a document providing guidance to, among others, building owners and local jurisdictions regarding function recovery after a seismic event, in the event that new building standards are not in place by January 1, 2023, as specified.

Position:  NEUTRAL – NEGOTIATED MAJOR AMENDMENTS

 

AB 1870 (Reyes D) Employment discrimination: unlawful employment practices.

Summary:  Current law authorizes a person claiming to be aggrieved by an alleged unlawful practice to file a complaint with the Department of Fair Employment and Housing within one year from the date upon which the unlawful practice occurred, unless otherwise specified. This bill would extend the period to 3 years for which complaints alleging unlawful employment or housing practices may be filed with the department, as specified.

Position:  OPPOSE

 

AB 1976 (Limón D) Employment: lactation accommodation.

Summary:  Current law requires every employer to provide a reasonable amount of break time to accommodate an employee desiring to express breast milk for the employee’s infant child and requires an employer to make reasonable efforts to provide the employee with the use of a room or other location, other than a toilet stall, in close proximity to the employee’s work area for the employee to express milk in private. This bill would instead require an employer to make reasonable efforts to provide an employee with use of a room or other location, other than a bathroom, for these purposes.

Position:  ASKING FOR AMENDMENTS

 

AB 2016 (Fong R) Labor Code Private Attorneys General Act of 2004: civil actions.

Summary:  The Labor Code Private Attorneys General Act of 2004 authorizes an aggrieved employee who complies with specified notice and filing requirements to bring a civil action to recover specified civil penalties that would otherwise be assessed and collected by the Labor and Workforce Development Agency. The act requires that the aggrieved employee or representative give written notice, as provided, to the agency and the employer of the specific provisions of the Labor Code alleged to have been violated, including the facts and theories to support the alleged violation. This bill would instead require the notice to include a statement setting forth the relevant facts, legal contentions, and authorities supporting each alleged violation and an estimate of the number of current and former employees against whom the alleged violation or violations were committed and on whose behalf relief is sought.

Position:  SUPPORT

 

AB 2173 (Santiago D) Commercial real property: termination of tenancy: disposition of personal property.

Summary:  Would change the calculation of the total resale value of the personal property, for purposes of these provisions, to either $2,500 or an amount equal to one month’s rent for the premises the tenant occupied, whichever is greater.

Position:  SUPPORT

 

AB 2353 (Frazier D) Construction defects: actions: statute of limitations.

Summary:  Current law specifies the requirements for actions for construction defects. Current law includes a statute of limitations that, except as specified, prohibits an action from being brought to recover under these provisions more than 10 years after substantial completion of the improvement but no later than the date the notice of completion is recorded.This bill would shorten the 10-year period to 5 years.

Position:  SUPPORT

 

AB 2447 (Reyes D) California Environmental Quality Act: land use: environmental justice.

Summary:  CEQA requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA prohibits a lead agency from approving or carrying out a project for which a certified EIR identifies one or more significant effects on the environmental unless the lead agency makes certain findings. This bill would require the Office of Environmental Health Hazard Assessment, by June 30, 2019, to publish a list of subject land uses, as specified, and a map that identifies disadvantaged communities and areas within 1/2 mile radius of the disadvantaged communities.

Position:  OPPOSE

 

AB 2485 (Chau D) Code enforcement: financially interested parties.

Summary:  Would prohibit a local official, as defined, who inspects a commercial property or business for compliance with a state statute or regulation or local ordinance from being accompanied during the inspection by a person with a potential financial interest in the outcome of the inspection, as defined, unless the person is the owner of the property or business, is the agent or representative of the owner, or has an existing contract, as specified.

Position:  OPPOSE

 

AB 2529 (Chu D) Income taxation: like kind exchanges: withholding.

Summary:  Current law requires the transferee of a California real property interest, in specified circumstances, to withhold for income tax purposes 31/3% of the sales price of the property when the property is acquired from an individual, or a partnership or corporation without a permanent place of business, as specified. Existing law allows a credit against the tax to the recipient of the income for the taxable year in which that amount was withheld under these provisions. Current law exempts from the withholding requirements real property that is exchanged, or will be exchanged, for property of like kind, as defined, and that qualifies for nonrecognition treatment under California income or franchise tax purposes. This bill would require income tax withholding, as provided, for like kind transfers for out-of-state properties that occur on or after January 1, 2019.

Position:  OPPOSE

 

AB 2577 (Gray D) Personal income taxes: deductions: labor organization dues.

Summary:  Would, for each taxable year beginning on or after January 1, 2018, and before January 1, 2023, allow as a deduction from gross income an amount equal to the amount paid or incurred for member dues paid by a taxpayer during the taxable year to specified labor organizations. This bill contains other related provisions.

Position:  OPPOSE

 

AB 2618 (Bonta D) Hiring of real property: Department of Consumer Affairs: landlords and property managers: training.

Summary:  Would, commencing on January 1, 2020, require the Department of Consumer Affairs to administer a certification program for landlords and property managers, as defined, to provide education to landlords and property managers on fair housing practices, obligations of landlords, and tenant rights. The bill would make this certification effective for a period of 2 years and would provide for renewal if certain requirements are met.

Position:  ASKING FOR AMENDMENTS

 

AB 2681 (Nazarian D) Seismic safety: potentially vulnerable buildings.

Summary:  Current law establishes a program within all cities and all counties and portions thereof located within seismic zone 4, as defined, to identify all potentially hazardous buildings and to establish a mitigation program for these buildings. This bill would, upon the identification of funding by the Office of Emergency Services, require each building department of a city or county to create an inventory of potentially vulnerable buildings, as defined, within its jurisdiction, based on age and other publicly available information, and submit that inventory to the office, as specified. By increasing the duties of local officials, this bill would create a state-mandated local program.

Position:  NEUTRAL – NEGOTIATED MAJOR AMENDMENTS

 

AB 2731 (Gipson D) Income taxes: investment management services interest.

Summary:  The Personal Income Tax Law imposes taxes based upon taxable income of individuals, estates, and trusts at specified rates from 1% to 9.3%, as provided. This bill would impose a tax of 17% on that portion of an individual’s taxable income derived from an investment management services interest, as defined

Position:  OPPOSE

 

AB 2847 (Rubio D) Commercial real property: tenancy: abandonment.

Summary:  Would provide that if a lessee of commercial real property remains in possession after the expiration of the hiring, the lessor’s acceptance of rent from the lessee does not renew the hiring, but instead only mitigates any damage.

Position:  SUPPORT

 

AB 2913 (Wood D) Building standards: building permits: expiration.

Summary:  A provision of the California Building Standards Law specifies that a local ordinance adding or modifying building standards for residential occupancies, published in the California Building Standards Code, applies only to an application for a building permit submitted after the effective date of the ordinance and to plans and specifications for, and the construction performed under, that permit, unless, the permit is subsequently deemed expired because the building or work authorized by the permit is not commenced within 180 days from the date of the permit, or the permittee has suspended or abandoned the work authorized by the permit at any time after the work is commenced. This bill would provide that a permit would remain valid if the work on the site authorized by that permit is commenced within 3 years after its issuance under specified circumstances.

Position:  SUPPORT

 

AB 3001 (Bonta D) Zero-emissions buildings and sources of heat energy.

Summary:  Would require the Energy Commission to provide compliance incentive credit for measures that result in reduced emissions of greenhouse gases beyond those the commission has determined to be cost effective. The bill would require the Energy Commission, for the year 2022 and thereafter, to require new residential and nonresidential buildings to be electric-ready buildings, as defined, and to develop standards pursuant to which emissions of greenhouse gases associated with new residential and nonresidential buildings could be reduced in a cost-effective manner.

Position:  OPPOSE

 

AB 3030 (Caballero D) California Environmental Quality Act: exemption: qualified opportunity zones.

Summary:  Current federal law provides certain federal tax incentives to a taxpayer who invests in a qualified opportunity fund, which is an investment vehicle organized for the purpose of investing in qualified opportunity zone property, as prescribed. This bill would exempt a project that is financed by a qualified opportunity fund and that meets certain requirements from CEQA. The bill would require a lead agency, before making a determination that the project is exempt from CEQA, to hold a noticed public hearing on the project, as specified. The bill would require the lead agency, if it determines that a project is exempt from CEQA under the above exemption and determines to approve or carry out the project, to file a specified notice with the Office of Planning and Research.

Position:  SUPPORT

 

AB 3147 (Caballero D) Fee mitigation act: housing developments.

Summary:  The Mitigation Fee Act requires a local agency that establishes, increases, or imposes a fee as a condition of approval of a development project to, among other things, determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed. This bill would prohibit a housing development project, as defined, from being subject to a fee, charge, dedication, reservation, or other exaction that is more than that in effect at the time that the application for the housing development project is determined to be complete.

Position:  SUPPORT

 

AB 3194 (Daly D) Housing Accountability Act: project approval.

Summary:  Would prohibit a housing development project from being found inconsistent, not in compliance, or not in conformity, with the applicable zoning ordinance, and would prohibit a local government from requiring a rezoning of the project site, if the existing zoning ordinance does not allow the maximum residential use, density, and intensity allocable on the site by the land use or housing element of the general plan.

Position:  SUPPORT

 

AB 3232 (Friedman D) Zero-emissions buildings and sources of heat energy.

Summary:  Would require the State Energy Resources Conservation and Development Commission, by January 1, 2020, to develop a plan to achieve the goal that the emissions of greenhouse gases from the state’s residential and commercial building stock shall be reduced by at least 40% below 1990 levels by January 1, 2030. The bill would require this plan to include cost-effective strategies to reduce emissions from both new and existing residential and commercial buildings, as specified.

Position:  OPPOSE

 

ACA 22 (McCarty D) Middle Class Fiscal Relief Act.

Summary:  This measure, tries to revoke the recent tax cuts at the federal level by imposing a surcharge of 10% on the net income of all corporations that is over $1,000,000. The measure would authorize the Legislature to increase or decrease the surcharge by a 2/3 vote of each house, as provided. The measure would require the deposit of those revenues, less refunds, into the Middle Class Fiscal Relief Fund, which would be created by the measure.

Position:  OPPOSE

SPLIT ROLL BATTLE IS ON AND SCHEDULED FOR NOVEMBER 2020!

Posted: April 20, 2018 | Posted by Crystal Whitfield | No Comments

Proponents of the Split Roll Property Tax measure that is currently circulating believe they will reach the required number of signatures.  They have also decided to move the measure for the November 2020 ballot measure.  They believe that more time to message and fundraise coupled with an expected higher Democrat-base voter turnout in the Presidential election will give them a higher chance of winning.

By the same token, this also allows opponents more time to educate voters on why an $11B tax increase is a bad idea.

In boxing terms – we now know when the Title Bout is scheduled and we need to start training if we hope to win!

Click here for a story from the L.A. Times with more detail about politics of split roll and why you are in the crosshairs.

CALIFORNIA BENCHMARKING REGULATION RESOURCES

Posted: April 20, 2018 | Posted by Crystal Whitfield | No Comments

Several weeks ago, the State of California finalized the AB 1103/AB 802 Energy Benchmarking Regulations. This has been a long process and we have been involved every step of the way. The bottom line is that as of June 1, 2018, all buildings over 50,000 square feet – with some exemptions – need to be benchmarked and data shared with the Energy Commission.

However, the rollout of the regulation is still unfolding. The CEC is working on materials and communications to help with compliance, and we are helping them work through the issues and work out the bugs.

We have set up a resource page where you can find a FAQ, the adopted regulations, and a link to the CEC page with more information.

Click here for the CBPA CA Mandatory Benchmarking Resource Page.

Stay tuned for more information and webinars to help you comply by the June 1st deadline.

CALIFORNIA COMMERCIAL REAL ESTATE SUMMIT JUNE 19-20, 2018

Posted: April 20, 2018 | Posted by Crystal Whitfield | No Comments

The California Commercial Real Estate Summit (CCRES) will be held at the California Chamber of Commerce Headquarters in Sacramento on June 19-20, 2018.  This event is the one time of year that industry leaders from all sectors of the commercial, industrial, and retail real estate industry converge on California’s Capitol to meet with policymakers. The summit gives you an opportunity to meet other industry leaders from across the nation, high-level staff from Governor Brown’s Administration, and California State Legislators.

 Click here to register!

CBPA has reserved a block of rooms at The Hyatt Regency Sacramento.  Please contact the Hyatt Regency directly at 916-443-1234. Ask for the CBPA rate.

We encourage you to consider one of the sponsorship opportunities and to be a part of this exciting industry event.  Click here for more information on becoming a sponsor!

 We look forward to seeing you in June!

TAX ON RECORDING FEES IMPLEMENTATION ISSUES

Posted: March 12, 2018 | Posted by Crystal Whitfield | No Comments

The newly minted $75 tax tacked onto recording fees is causing confusion and implementation issues – just as we and many other groups concerned with the bill noted during the legislative process.  Unfortunately, those concerns went unheeded and unaddressed, now many Californians are caught in the middle.  Our friends at Howard Jarvis have detailed some of the issues in a newly published column:

“For example, SB2’s language makes it difficult for California’s 58 County Recorders to determine if they should charge the additional $75 for tax liens and lien releases presented by government agencies.”

“These tax liens can originate from small local business activities like selling Avon, from failure to pay your annual income taxes, from a missed tax payment on your jet ski, for child-support collection and more. You don’t even need to own a house to have one of these liens recorded against you, and worse yet, you may not even know that the lien exists until it shows up on your credit report.”

A few bills have been introduced to try to address some of the issues, but it remains to be seen what if anything will happen.

Click here to read the full article.

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