• Established in 1972 · CBPA has over four decades of service to the commercial industrial retail real estate industry
  • Archive for February, 2011

    Feb 25

    GOVERNOR BROWN TAKES ON BUDGET COMMITTEE

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    In a scene that hasn’t happened in the Capitol for as long as anyone can remember, a sitting Governor walked into a hearing room to pitch his own budget plan.  The Governor challenged lawmakers to leave their “comfort zones” and come together quickly on a spending plan.  He directed much of his remarks to Republican legislators, seemingly trying to steel them into approving a plan to put tax increases on the ballot.  Click here to read a full account and see video of the Governor’s testimony.

    Feb 25

    2,430 BILLS INTRODUCED IN STATE LEGISLATURE

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    Last week marked “Bill Introduction Deadline” in the California State Legislature.  Your 120 legislators introduced no less than 2,430 separate legislative measures, including constitutional amendments and resolutions.  The forty State Senators were responsible for introducing 969 of these measures.  The seventy-nine State Assemblymembers were responsible for introducing 1,461 bills. 

    So far 350 bills have been identified as having a direct and/or significant impact on our industry, including measures to change unlawful detainer notification, make it easier to raise property taxes, and mandate personnel decisions for building managers. 

    Your Sacramento staff and legislative committees are currently in the process of reading all the bills and analyzing their impact.  If you would like to participate in this process, we would love your help.  Volunteer by responding to this email.

    Feb 25

    ***ACTION ITEM*** ASK YOUR LEGISLATOR TO VOTE NO TO ENDING REDEVELOPMENT!

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    The commercial real estate industry is standing firm with our colleagues in local government in battling the proposal to eliminate redevelopment agencies and redirect the funding.  As part of a coalition of more than 70 local governments, elected officials, business and labor groups, environmental leaders, and affordable housing advocates, we are asking our members to contact your state legislators and ask them not to accept a budget package that includes the elimination of redevelopment. 

    To send a letter in support of redevelopment, click here.  Simply input your address and the legislators representing your area will be displayed, along with their contact information.  In addition, various materials to help with outreach to local stakeholders and legislators can be found at here.

    There has been much talk lately in the Capitol about “letting the voters decide” in reference to the Governor’s proposal to extend taxes.  The irony is that the voters have spoken loud and clear in approving Proposition 22, mandating an end to State budget raids and gimmicks using local funds. We urge legislators to do the right thing, stand with the voters, and reject this proposal to abolish redevelopment.

    Feb 18

    REDEVELOPMENT IS WORTH FIGHTING FOR!

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    Because we have heard from so many of our members about the importance of Redevelopment, we thought we’d let you know about the CRA Annual Conference and Expo, being held in San Jose, CA, on March 30 – April 1.  This year’s conference theme is “Redevelopment: Worth Fighting For!” The conference begins with a keynote entitled “Re-position RDAs: Can We Mend It Rather Than End It?” Visit www.calredevelop.org for more information on the conference topics and for hotel reservation information.

    Feb 18

    BILL INTRODUCTION DEADLINE FINALLY HERE – LEGISLATIVE HIGHLIGHTS

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    Today marks one of the major Constitutional dates on the Legislative Calendar – Bill Introduction Deadline.  In the last few days, hundreds of measures have been introduced.  Since we read every bill to identify those that will have an impact on our industry, it will take a few days to catch up.  However, below are a few measures that have already caught our attention.  Your feedback, analysis, and position recommendations are highly encouraged.

    Property Tax

    SCA 5 (Simitian – D) Taxation: educational entities: parcel tax. Would condition the imposition, extension, or increase of a parcel tax, by a school district, community college district, or county office of education upon the approval of 55% of its voters.

    Landlord/Tenant

    AB 265 (Ammiano – D) Tenancies: unlawful detainer.  Increases the time of UD notice period from 3 to 14 days.  

    AB 312 (Lowenthal, B – D) Civil rights: homeless persons. Creates protections for Homeless People on private property.

    AB 818 (Blumenfield – D)  Would require the owners of multifamily housing of five or more apartments to provide recycling services to tenants.

    CEQA/Land Use/Infrastructure

    AB 49 (Gatto – D) Permit Streamlining Act; Development: expedited permit review.  Requires Lead Agencies to provide information to developers explaining the permit approval process at the state and local levels.

    AB 208 (Fuentes – D)  Land use: subdivision maps: expiration dates.  Extend by 24 months the expiration date of any approved tentative map or vesting tentative map. 

    SB 34 (Simitian – D) Water infrastructure projects: fees. Declares the intent of the Legislature to enact legislation to develop a fee-based system to pay for costs associated with updating and modernizing water infrastructure projects in the state. 

    SB 214 (Wolk – D) Infrastructure financing districts: voter approval: Eliminates the requirement of voter approval and authorize the legislative body to create the district, adopt the plan, and issue the bonds by resolutions.

    SB 241 (Cannella – R) CEQA Litigation Protection Pilot Program of 2011. Would require the Business, Transportation and Housing Agency to select projects, exempt from judicial review. 

    SB 469 (Vargas – D) Land use: development project review: superstores: Increases required review of big box retail development.

    Online Retail Sales Tax Collection

    AB 153 (Skinner – D) Creates “Affiliate Nexus” for online retailers for purposes of State Sales Tax point of collection requirements. 

    AB 155 (Calderon, C – D) Revises definition of “retailer engaged in business in this state” for purposes of State Sales Tax point of collection requirements.

    SB 234 (Hancock – D) Creates a “Long Arm” provision in CA for purposes of State Sales Tax point of collection requirements.

    Business/General Issues

    AB 350 (Solorio – D) Displaced Janitor Opportunity Act.  Would rename the act the Displaced Property Service Employee Opportunity Act and make the provisions of the act applicable to property services, which would include licensed security, as defined, landscape, window cleaning, and food cafeteria services.

    AB 357 (Garrick – R) Equal access rights: construction-related access claims. The federal Americans with Disabilities Act of 1990 prohibits discrimination against an individual with a disability on the basis of that disability in specified situations, including employment opportunities and access to public accommodations, services, and transportation. 

    SB 202 (Hancock – D) Ballot initiatives: filing fees. Would find that the current $200 fee is inadequate to cover the costs to the state to process a proposed initiative and would increase the filing fee from $200 to $2,000.

    Building Standards/Energy/Water

     AB 19 (Fong – D) Building standards: Requires Water meters in New/Existing Multiunit and Mixed-Use Structures.

     AB 296 (Skinner – D) Global warming: urban heat island effects pavement. Regulates the reflectivity (albedo) of pavement to reduce the urban heat island effect.

     AB 317 (Calderon, C – D) Energy: master-meter customers. Provide that rebates do not include ratepayer funded incentives received by the master-meter customer as a result of investments in energy generation or efficiency. 

     SB 16 (Rubio – D) GREEN Energy: renewable energy and transmission projects: expedited permitting. 

     SB 209 (Corbett – D) Common interest developments: electric vehicle mandates ability to use charging stations in CIDs.

     SB 454 (Pavley) Gives CEC authority to enforce Energy Efficiency Regulations through fines and civil penalties.

    Feb 18

    INDUSTRY LEADERS GATHER IN SACRAMENTO

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    Over fifty leaders from the commercial, industrial, and retail real estate sectors gathered in Sacramento this week to chart the legislative and regulatory course for the coming year at the first California Business Properties Association (CBPA) meeting of 2011.  Issues ranging from the Governor’s proposal to eliminate Redevelopment Agencies and Enterprise Zones and the proposed tax extensions, to a review of legislation introduced so far were discussed. 

    After a morning of policy debate, fourteen newly elected members of the Assembly and Senate joined the group of real estate leaders for a lunchtime discussion and opportunity to learn more about our industry. 

    The CBPA Board consists of leaders from all facets of our industry.  They meet quarterly to discuss issues, provide input, and assure the strategic direction of policy positions in Sacramento reflect the priorities of member companies.

    Feb 11

    RESPONSE TO REPORT CRITIQUING REDEVELOPMENT

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    On February 9, the Legislative Analyst’s Office (LAO) released a report critical of findings of an independent study commissioned by the California Redevelopment Association, which found that eliminating redevelopment could jeopardize more than 304,000 jobs annually. Unfortunately, the LAO’s critique is based on a fundamental misunderstanding of the report’s methodology. Click here to view the response from the authors of the original report, Dr. David Gallo, Professor of Economics, Chico State University, and Dr. Gus Koehler, Principal Time Structures, Inc. Their response clarifies these inaccuracies in the LAO’s report.

    Feb 11

    RDA/ENTERPRISE ZONE ELIMINATION BATTLE RAGES ON

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    As part of a coalition of more than 60 local governments, elected officials, business groups, and labor groups, environmental leaders, and affordable housing advocates, we have been working hard to stop the proposal to eliminate Redevelopment Agencies in California.  This week, hundreds of stakeholders descended on the Capitol to attend three different hearings exploring both issues.  We reaffirmed the value of redevelopment by communicating testimonies and success stories from various locations throughout the state, and provided examples of how such monies are used to provide jobs and stimulate local economies.

    The battle continues next week with a joint hearing of the Senate Transportation and Housing and the Assembly Housing and Community Development Committees. They will be discussing “Redevelopment and Affordable Housing Finance.”

    Feb 11

    REGULATORY REFORM HEARINGS

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    Business groups have complained for years that the California regulatory system is cumbersome, inefficient, and dampening the economic recovery.  Last year, several bills were introduced meant to relieve some of the pressure, only to die in early policy committees.  However, with California falling deeper, harder, and longer into recession than some other parts of the country, Legislators and non-business policy groups are taking a second look at what can be done. 

    To that end, this week the E3 (Environment, Education, and Energy) Roundtable of the Republican Caucus, held a hearing and invited the Little Hoover Commission, and business representatives to discuss the issues and provide a variety of suggestions on how the existing regulatory development process could be improved. One point that seemed to resonate with lawmakers was the fact that many state agencies have an inherent conflict of interest when producing an economic impact analysis of their own regulations. The homebuilders stressed the need to have access to a “neutral” third-party within state government who could, on an as-needed basis, critique the regulatory impact analysis produced by a state agency. 

    We are expecting more than a dozen bills on regulatory reform this year, and will do everything we can do identify those ideas that make the most sense, and help push them to the Governor’s desk.

    Feb 11

    GOV’S WATER CHIEF WANTS DELTA WATER DIVERSION

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    “The Brown administration’s top official on Delta matters said this week he is confident a new aqueduct can be built to divert water from the Delta for water users in Southern California.”  Jerry Meral, who was also with the first Brown Administration as the deputy director of the state Department of Water Resources from 1975 to 1983, then also supported the controversial Peripheral Canal that would have skirted the Delta to move Sacramento River water to the south.  Meral is currently Brown’s deputy secretary for the Bay Delta Conservation Plan, and also has very strong environmental credentials.  This is stirring up the imagination of the many constituency groups that want to fix California’s water supply and conveyance system.  Read more about it here.

    Feb 11

    GOV DROPS STATE BUILDING SALE

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    The Governor has decided to drop the sale of 11 office properties that the previous administration had pursued in order to raise $1.2 billion in immediate cash for the state budget.  “Selling state buildings is the ultimate in kicking the can down the road,” he said.  The deal would have had the state sell several office buildings to private investors and then lease them back over a 20 year period.  The Legislative Analyst’s Office criticized the plan estimating that it would prove “costly” for the state in the long run and was the equivalent to borrowing at 10.2% interest over the next 35 years.  Aside from the LAO criticism, a group of former building authority members had filed suit to block the deal.  Click here for more information.

    Feb 11

    BILL INTRODUCTION DEADLINE ALMOST HERE

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    So far this year your California State Legislature has introduced just over 700 separate pieces of legislation.  However, next week is a major Constitutional marker in the process, known as “Bill Introduction Deadline.”  Basically, all bills need to be introduced by then to be considered this year.  Since procrastination is king in the Capitol, over the next seven days we expect that the number of bills introduced will more than triple.  This means a lot of reading for your staff in Sacramento.  Please help us out by paying attention to your local papers, at Chamber lunches, or when you bump into your Assemblymember at the store, and let us know if you hear about any proposals that might have an impact on our industry.