California Business
Properties Association (CBPA)
Founded in 1972, CBPA serves as the California legislative and regulatory advocate for individual companies as well as the International Council of Shopping Centers (ICSC), the California Chapters of the Commercial Real Estate Development Association (NAIOP), the Building Owners and Managers Association (BOMA) California, the Institute of Real Estate Management (IREM), the California Downtown Association (CDA), the Retail Industry Leaders Association (RILA), and ACRE of Southern California, making CBPA the recognized voice of the commercial, industrial, and retail real estate industries in California representing over 12,000 companies.
LATEST NEWS/INFORMATION
SB 469 VETOED! Huge wins for commercial real estate
Over the weekend Governor Jerry Brown acted on over 500 bills. He vetoed approximately 14% of the bills on his desk, which is much less than the previous incumbents veto rate (which was about a quarter), but is just slightly higher than the overall average.
One bill of significance to our industry that was vetoed is SB 469 by Senator Juan Vargas from San Diego. This is the bill that used the statewide CEQA process to force additional economic impact reports on local government for certain types of development. The bill was sponsored by a union and was aimed at Wal-Mart, but the bill would have had a very negative impact on all types of development.
Governor Brown stated in his veto message, “While I recognize that the merits of large-scale projects need to be carefully considered plenty of laws are already on the books that enable, and in some cases require, cities and counties to carefully assess whether these projects are in a community’s best interest. This bill would add yet another layer of review to an already cumbersome process.” This was the crux of our argument.
Coupled with the defeat of SEIU’s attempt to organize using our building, killing bills on split roll and rent control, defeating a measure to change the 3-day notice law, as well as a bill that would have allowed libel lawsuits during unlawful detainer actions, and helping to negotiate the sales tax collection deal with Amazon, this is ANOTHER huge win for our industry!
For a full reading of the Governors SB 469 message, click here.
For the text of the press release by CBPA praising the governor on this action, click here.
2010 CBPA Successes – Year-End Wrap-Up
CBPA had a very successful year. Below are some of the highlights from 2010:
LEGISLATION – CBPA engaged on more than 500 pieces of legislation in the California State Capitol. Of the forty-nine (49) bills deemed “High Priority,” we opposed thirty one (31), 15 of which were killed in the Legislature and sixteen (16) were vetoed by the Governor. Eight (8) bills we supported were signed by the Governor. Most importantly zero (0) bills opposed by CBPA were signed into law.
STATEWIDE PROPOSITIONS – CBPA weighed in on four statewide propositions on the November ballot. Three of the four propositions (Props 22, 24, 26) went our way, while only one (Prop 25) did not.
SPLIT-ROLL PROPERTY TAX – In the past year, CBPA has helped stop two serious efforts to eliminate protections of Proposition 13 for commercial real estate. The first, pushed by several public employee unions, proposed an initiative to enact an immediate 55% increase in all private non-residential state property taxes. The second was a legislative bill that would have automatically reassessed all corporate commercial properties every three years. We know more proposals will be back in the New Year.
ROOFTOP SOLAR STUDY – CBPA helped fund the efficacy of rooftop solar in commercial application. This study will assist the regulatory agencies developing the state’s Zero Net Energy policy by providing realistic modeling on how much on-site energy is needed to offset envelop and plug-load energy needs.
LIKE-KIND EXCHANGES – CBPA led an effort to stop two separate bills that would have taken away the ability of California companies to use 1031 Like-Kind Exchanges. Bills such as this that take California out of conformity with federal law as a way to raise additional revenue for the state are extremely harmful to any company that owns properties in multiple states.
MANDATORY COMMERCIAL BUILDING BENCHMARKING – CBPA members have led a statewide effort and helped put together a commercial real estate workgroup to assist the CA Energy Commission to write the rules implementing the state’s mandatory building benchmarking law. Because of this effort, issues related to multi-tenanted building and shopping centers have been highlighted and given priority to resolve.
REPEAL OF BUSINESS TAX INCENTIVES – Defeated an effort to require the state to automatically repeal any new tax incentives after seven years. This bill would have applied performance metrics to private companies receiving tax funds, which the state was unwilling to apply to state agencies, taxes, or regulations.
STOPPED INCREASED WATER FEES – Defeated a measure which would have allowed stormwater and urban runoff management fees or charges to be exempt from 2/3’s voter approval requirements.
GREEN BUILDING CODES – After successfully fending-off several attempts to mandate LEED standards statewide for all commercial buildings, CBPA has helped direct efforts more appropriately to the state’s Building Standards Committee. CBPA led an industrywide effort to engage our experts in the public process and helped shape the nation’s first statewide “green building code” (known as CALGreen). These codes balance environmental issues with economic feasibility and technological achievability to provide industry with a standard it can successfully meet.
CODE ADOPTION – CBPA sponsored legislation, AB 1693 (Ma; D – San Francisco), which modifies the interim code adoption cycle and extends it to an 18 month process. This will give industry and local governments additional time to understand and adopt energy and building code changes that impact both new construction and tenant improvements.
CEQA and AB 32 – We worked very hard to pass legislation that streamlines the California Environmental Quality Act (CEQA) approval process for certain projects by allowing industries subject to compliance with greenhouse gas regulations under AB 32 to go through an expedited environmental review using a focused environmental impact report.
FINANCING FOR ENERGY EFFICIENCY – Worked to pass a new law makes it more attractive for local governments to offer Property Assessed Clean Energy (PACE) programs and lower the interest rate of loans to business owners for energy and water efficiency improvements to existing buildings.
CALGREEN Review in Senate Trans Committee
California is the first state in the nation to adopt a mandatory statewide green building code, dubbed CALGREEN. The Senate Transportation and Housing Committee held a hearing to provide oversight and assess next steps. The hearing was marked by a high level of agreement – by business, labor, and environmental groups – that the code writing process was managed well by the state, and the final mandatory product was an environmentally sound minimum code while being technologically feasible and economically viable.
Several groups remarked the code was not perfect, especially with regard to the voluntary sections, but noted issues could be addressed through the established regulatory process. There was much agreement that education and training are important next steps. Read the Committee White Paper, and testimony by CBPA, CBIA, NRDC, USGBC, and CALBO.
Climate Change Policies – AB 32
Climate Change policies, led by implementation of the nation’s first statewide Greenhouse Gas Reduction law, AB 32, has a significant impact on our industry. CBPA is engaged full time on these issues. Click here for some key climate change updates and documents.
Green Building Policies
Click here for some key documents and updates on Green Building and Energy issues.
Split-Roll Property Tax Study
A study that examines the potential economic impact of a split-roll property tax, taking into account how a split roll would affect the behavior of individuals and businesses who own commercial property, has been completed and distributed to policymakers in California. Click here to read the study entitled The Economic Effects of California Adopting a Split Roll Property Tax
CBPA serves on the executive committee for Californians Against Higher Property Taxes, a recently formed coalition of business and taxpayer groups with a mission to educate the public and policymakers about the devastating impacts of higher property taxes. Although higher property taxes are very unpopular and voters have rejected them time and again, some policymakers and advocacy groups often push the issue as a way to raise additional tax revenue.
The study shows that such proposals for property tax increases will only hurt California consumers, seniors and taxpayers, and further damage our state’s struggling economy.
