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  • Archive for August, 2015

    Aug 28


    Posted by CBPA | No Comments

    ***Important*** If you currently lease, or plan on leasing to grocery stores, this bill may impact you.  You are advised to understand its provisions and/or consult legal counsel to make sure know its impacts on your property.

    AB 359 (Gonzalez D) requires any successor grocery employer to retain employees of the former grocery employer for 90 days and continue to offer continued employment unless the employees’ performance during the 90-day period was unsatisfactory.  Position:  OPPOSE.  This bill has been signed into law.

    Without getting into the details, the law requires the employees of a grocery store that has vacated a space be considered for employment by any grocery store that moves into that space.  For us, I think this has obvious leasing implications… and much less obvious Labor Relations implications.

    Governor’s Signature Message: To the Members of the California State Assembly: I am signing Assembly Bill 359, which would require a successor grocery employer to retain eligible grocery workers for a 90-day transitional period and, upon completion of that period, require the successor grocery employer to consider offering continued employment to those workers. As drafted, the bill is not clear how the provisions apply if an incumbent grocery employer has ceased operations. The author and sponsors have committed to clarify that the law would not apply to a grocery store that has ceased operations for six months or more. I look forward to receiving that fix before the end of this legislative session. Sincerely, GOVERNOR EDMUND G. BROWN JR.

    That bill to “clean up” AB 359 has already been introduced.  That bill is AB 897 (Gonzales)

    Again, if you currently lease, or plan on leasing to grocery stores, this bill may impact you and you are advised to consult legal counsel to make sure you know how it impacts leasing on your property.


    Aug 28


    Posted by CBPA | No Comments

    A number of bills we have been working on passed the Legislature and were sent to the Governor for his consideration:

    AB 57 (Quirk D)   Telecommunications: wireless telecommunication facilities.

    Requires a collocation or siting application for a wireless telecommunications facility to be deemed approved, if specified conditions are met. Position:  SUPPORT

    AB 349 (Gonzalez D)   Common interest developments: property use and maintenance.

    Voids, or makes unenforceable, any provision of a common interest development (CID) governing document or architectural or landscaping guidelines or policies that prohibit the use of artificial turf or any other synthetic surface that resembles grass. Position:  SUPPORT

    SB 328 (Hueso D)   Landlords: notice of pesticide use.

    Among other things, this bill requires notification when pesticide is being applied to a dwelling unit without a licensed pest control operator to provide tenants of that unit with a specified written notice, in most cases, with 24 hours advance notice. Position:  MONITOR

    SB 658 (Hill D)   Automated external defibrillators.

    AED limited liability and training requirements reform. Position:  SUPPORT

    SCR 64 (Pan D)   Americans with Disabilities Act.

    This resolution recognizes the 25th anniversary of the Americans with Disabilities Act. Position:  SUPPORT

    Aug 28


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    Although we take every opportunity to find bills that we support, it seems that much of our time is spent pushing back and opposing bills that would make the business climate in California even more difficult.  We work closely with the California Chamber and other business groups to try to fix or defeat these measures.  Here are the bills that we are tracking that are still moving and are also on the CalChamber’s Job Killer list:

    Increased Labor Costs

    SB 3 (Leno; D-San Francisco/ Leyva; D-Chino) Automatic Minimum Wage Increase — Unfairly increases employers’ costs while ignoring the economic factors or other costs of employers by increasing the minimum wage by $3.00 over the next two and a half years with automatic increases tied to inflation. Position:  OPPOSE.  Status:  DEAD in Appropriations.

    SB 406 (Jackson; D–Santa Barbara) Significant Expansion of California Family Rights Act — Increases costs, risk of litigation and less conformity with federal law by dramatically reducing the employee threshold from 50 to at least 25 employees and expanding the family members for whom leave may be taken, which will provide a California-only, separate 12 week protected leave of absence for both small and large employers to administer. Position:  OPPOSE.  Status:  Assembly Floor.

    Increased Fuel Costs

    SB 350 (de León; D-Los Angeles) Costly and Burdensome Regulations — Potentially increases costs and burdens on all Californians by mandating an arbitrary and unrealistic reduction of petroleum use by 50%, increasing the current Renewable Portfolio Standard to 50% and increasing energy efficiency in existing buildings by 50% — all by 2030 without regard to the impact on individuals, jobs and the economy. Position:  OPPOSE.  Status:  Assembly Floor.

    Tax Increases

    ACA 4 (Frazier; D-Oakley) Lowers Vote Requirement for Tax Increases — Adds complexity and uncertainty to the current tax structure and pressure to increase taxes on commercial, industrial and residential property owners by giving local governments new authority to enact special taxes, including parcel taxes, by lowering the vote threshold from two-thirds to 55%. Assembly Appropriations; no hearing date set. Status: DEAD FOR YEAR

    SB 684 (Hancock; D-Berkeley) Increased Tax Rate — Threatens to significantly increase the corporate tax rate on publicly held corporations and financial institutions up to 15% according to the wages paid to employees in the United States, and threatens to increase that rate by 50% thereafter, if the corporation or institution reduces its workforce in the United States and simultaneously increases its contractors. Position: OPPOSE.  Status:  DEAD.

    SCA 5 (Hancock; D-Berkeley)/(Mitchell; D-Los Angeles) Split Roll Property Tax — Undermines the protections of Proposition 13 by unfairly targeting commercial property owners and increasing their property taxes by assessing their property based upon current fair market value instead of acquired value. Such costs will ultimately be passed on to consumers and tenants through higher prices and will result in job loss as businesses struggle to absorb such a dramatic tax increase. Position: OPPOSE.  Status:  in Senate Governance and Finance Committee; no hearing date set.

    Increased Burdensome Environmental Regulation

    SB 32 (Pavley; D-Agoura Hills) Slows Economic Growth — Increases costs for California businesses, makes them less competitive and discourages economic growth by adopting further greenhouse gas emission reductions for 2030 and 2050 without regard to the impact on individuals, jobs and the economy. Position: OPPOSE.  Status:  On Assembly Floor.

    SB 654 (de León; D-Los Angeles) Creates Unworkable Hazardous Waste Permitting Process — Discourages investment in upgrading and improving hazardous waste facilities by shutting down hazardous waste facilities if the Department of Toxic Substances Control fails to take final action on the permit renewal application within a specified timeframe, even if the permit applicant acted diligently and in good faith throughout the permit application process. Position: OPPOSE.  Status:  On Assembly Floor.

    Increased Unnecessary Litigation Costs

    AB 465 (Hernández; D-West Covina) Increased Litigation —  Significantly drives up litigation costs for all California employers as well as increases pressure on the already-overburdened judicial system by precluding mandatory employment arbitration agreements, which is likely pre-empted by the Federal Arbitration Act. Senate Floor. Position: OPPOSE.  Status: GOVERNOR’S DESK.

    Aug 28


    Posted by CBPA | No Comments

    SB 251 (Roth; D-Riverside) Civil Rights; Disability Access, a bill that we strenuously SUPPORT continues to move.  Among other reforms, this bill enacts a tax credit for businesses that make accessibility improvements.  The bill unanimously passed the Assembly Revenue and Taxation Committee and has also been passed by Assembly Appropriations.  The bill is currently awaiting action on the Assembly Floor.

    Senator Roth has faced a lot of adversity as he has worked on this bill and has faced some unfair criticism from critics of reform.  We thank him for his resolve to address this issue in a bipartisan and level-headed manner.

    Click here for press coverage of SB 251.

    Aug 28


    Posted by CBPA | No Comments

    Here is an update on where we stand with two bills relating to on Automatic External Defibrillator (AED) policy.  Early in the session two bills were introduced, one of which we immediately supported SB 658 (Hill; D-San Mateo) and one which caused some concern SB 287 (Hueso; D-San Diego).

    Because of the life-saving potential of AEDs and their proven efficacy, our industry has been working to increase accessibility of these devices in public places where cardiac arrest may be a significant risk.  Many of our members currently have them installed in their buildings and many more members have asked for reform of the statute that is now close at hand.

    SB 658 has gone through all committees in both Houses, passed the Assembly Floor 75-0, and is now awaiting action on the Governor’s Desk. The bill reforms some of the statutory requirements that companies need to fulfill in order to receive limited liability protections for installing AED’s.

    SB 658 (Hill) AED Limited Liability Statutory Reform

    SB 287 is the AED bill that initially gave us pause as it was a broad mandate to install AEDs.  This bill was the focus of lengthy discussions at board meetings and legislative gatherings.  As initially written, the bill had some flaws that would have made compliance very difficult.  And although we did not relish being pushed into a position of having to oppose an AED bill, we had to in order to get changes to the measure that we had requested, but were not adopted.

    We also could not even start the conversation on any type of mandate without assuring that we got some type of reform of the current statute as represented in SB 658, so timing was key, and working to assure SB 658 moved forward was a priority.

    Through many discussions with the author on SB 287 and support from several other like-minded business groups, we were able to negotiate amendments that addressed many of our operational issues and opposition to the bill has evaporated with the business coalition and CBPA on behalf of commercial real estate has taken a position in support. The bill is  awaiting Concurrence and we expect it to go to the Governor next week.

    SB 287 (Hueso) AED Mandate on Certain New Construction

    The bill, if signed into law, will require installation of AED’s in certain commercial buildings with max occupancies of 200 or more that are constructed and occupied on or after January 1, 2017.  This will ensure that more employees, tenants, and guests will have access to these devices when needed.

    Thank you to everyone that has provided help and assistance working on these bills.  We think this represents the best possible outcome we could have hoped for this year.

    Aug 28


    Posted by CBPA | No Comments

    As part of late breaking discussion on a bill relating to energy efficiency, we are currently working on a potential deal that would re-write the AB 1103 Mandatory Benchmarking Law.  Many in the commercial real estate industry have found the benchmarking law to be cumbersome and expensive to undertake on multi-tenanted buildings.  The law also forces properties to benchmark event when a building has been vacant and a benchmark would not produce particularly helpful information.   Under the framework of language, benchmarking would still be mandatory in California, however, time-of-sale/lease triggers would be removed and the Energy Commission would have more flexibility to promulgate regulations across the different building types that make more sense than a mandate on “all buildings.”  Keep your fingers crossed.

    Aug 28


    Posted by CBPA | No Comments

    Our friends at ICSC have provided the following update on the extremely important Waters of the US (WOTUS).  We want to note up front, however, that this only applies to the 13 states that participated in the lawsuit and California was not one of them:

    Yesterday a federal judge in North Dakota granted a preliminary injunction on the WOTUS case.  The timing is important to note because the effective date for WOTUS is today (August 28).

    The EPA stated after the ruling that it would not implement the new rules in those 13 states listed in the District of North Dakota ruling — Alaska, Arizona, Arkansas, Colorado, Idaho, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, South Dakota and Wyoming.

    Click here for a press release from Gov. Mead of Wyoming, who along with a few other WGA Governors was instrumental in pushing for the injunction.

    Click here for a New York Times article that provides a nice overview of the ruling and the WOTUS process to date.

    Aug 28


    Posted by CBPA | No Comments

    As of January 1, 2014, SB 407 (Padilla; Chapter 587, 2009) requires “non-compliant” plumbing fixtures to be replaced with water conserving plumbing fixtures when a property is undergoing additions, alterations or improvements. Applicants seeking to obtain permits for any of these types of work will be required to replace non-compliant fixtures prior to final permit approval or issuance of a certificate of occupancy by the local building department.

    This law applies only to properties built on or before January 1, 1994, and by January 1, 2019, ALL of those pre-1994 buildings must comply with these requirements, regardless of whether or not you are planning to renovate the space.

    The California Association of Local Building Officials (CALBO) has worked with some of its local building official members to clarify the requirement.  Here is an info sheet from the City of Santa Clara that will help you determine if your building is in compliance or not (but the general rule of thumb is that if it was built after 1994, or has been renovated since then, you will most likely be in compliance)

    Plumbing Fixtures Replacement (SB407) for Existing Single/Multi-Family Residential and Commercial Buildings.

    The law does have the following exceptions; per Civil Code Section 1101.7, this article shall not apply to any of the following:  a) Registered historical sites; b) Real property for which a licensed plumber certifies that, due to the age or configuration of the property or its plumbing, installation of water-conserving plumbing fixtures is not technically feasible; c) A building for which water service is permanently disconnected; d) Building was built and available for use on or after January 1. 1994

    The original bill gave our industry 10 years to comply with this measure, at our request (the bill originally only gave five years to comply).  We still believe that is a reasonable time horizon set by the state and continue to encourage our members to make sure you have completed this work within the allotted time frame.

    Aug 28


    Posted by CBPA | No Comments

    November 5 – 6, 2015

    Strategic Issues Conference

    Thunder Valley Resort and Casino, Lincoln, CA



    February 17, 2016

    CBPA Winter Board Meeting

    CalChamber, Sacramento


    March 17, 2016 (t)

    CBPA’s Industry-Wide Legislative Committee Meeting

    Southern California


    June 7 – 8, 2016

    California Commercial Real Estate Summit

    & Annual Meeting

    CalChamber, Sacramento


    October 20, 2016

    CBPA Industry Awards Dinner

    Fairmont Hotel Newport Beach


    For more information on any of our events, please contact Melissa Stevens at 916-443-4676 or mstevens@cbpa.com

    Aug 21


    Posted by CBPA | No Comments


    The Legislature is back from its Summer Recess and for the next three weeks every bill still alive under the Gilded Dome will be acted upon. Many, many issues will have a direct impact on your business. Bills related to ADA reform, EV charging stations, energy costs, water efficiency, CEQA, and taxes, and affordable housing – among others – will be voted on. Your staff in Sacramento is working hard to make sure the commercial real estate interests are represented in these negotiations!

    Aug 21


    Posted by CBPA | No Comments


    As the Session careens to a close, bills start to pile up on the Governor’s Desk.  Here are some actions he has taken in the past few weeks on bills we are following.

    He has vetoed two bills we care about:

    AB 251 (Levine D)   Public works: Prevailing Wage – public subsidies.

    Governor’s Veto Message: To the Members of the California State Assembly: I am returning Assembly Bill 251 without my signature. This measure seeks to codify a definition of the term ‘de minimis’ to determine what level of public subsidy triggers prevailing wage requirements on an otherwise private project. Longstanding practice has been to view the subsidy in context of the project and use 2% as a general threshold for determinations. There has been no showing that the current practice is unreasonable. While I remain a staunch supporter of prevailing wages I am concerned that this measure is too restrictive and may have unintended consequences. Two years ago, I cited the same concerns when I returned a similar bill without my signature. This measure does not adequately address those concerns. Sincerely, GOVERNOR EDMUND G. BROWN JR.

    AB 464 (Mullin D)   Transactions and use taxes: maximum combined rate.

    Governor’s Message: To the Members of the California State Assembly: I am returning Assembly Bill 464 without my signature. This bill would raise, on a blanket basis, the limit on local transactions and use tax for all counties and cities from two percent to three percent. Although I have approved raising the limit for individual counties, I am reluctant to approve this measure in view of all the taxes being discussed and proposed for the 2016 ballot. Sincerely, GOVERNOR EDMUND G. BROWN JR.

    Aug 21


    Posted by CBPA | No Comments


    AB 149 (Chávez R)   Urban water management plans.

    AB 279 (Dodd D)   Tax administration: disclosure of information: Franchise Tax Board and cities and counties.

    AB 327 (Gordon D)   Public works: volunteers.

    AB 432 (Chang R)   Civil procedure: electronic signatures.

    AB 451 (Bonilla D)   Private parking facilities.

    AB 596 (Daly D)   Common interest developments: annual budget report.

    AB 1537 (Committee on Jobs, Economic Development, and the Economy)   Small Business Financial Assistance Act of 2013: reports.

    ACR 23 (Salas D)   AED Awareness Week.

    AJR 6 (Cooley D)   California Earthquake Authority: postearthquake financing.

    SB 241 (Bates R)   Neighborhood electric vehicles.

    SB 335 (Roth D)   Earthquake insurance.