• Established in 1972 · CBPA has over four decades of service to the commercial industrial retail real estate industry
  • HIGH PRIORITY BILLS OPPOSED BY INDUSTRY STOPPED IN THE FIRST HOUSE

    Posted: June 2, 2017 | Posted by CBPA | No Comments

    Many bills our industry opposed and were deemed as high priorities, a majority of legislators agreed with us and they have been stopped for the year.  Note, because legislative sessions span for two years, these bills are technically known as “two year bills” as there is a chance they could move next year.  However, in the day-to-day parlance of the Capitol, these bills are known as being “dead.”

    AB 5 (Gonzalez D) Mandates certain hiring requirements for businesses.

    AB 199 (Chu D) Applied prevailing wage to private construction (not, this bill is not dead but has been amended in a manner that we no longer oppose).

    AB 378 (Garcia, Cristina D) California Cap-and-Trade on Greenhouse Gases.

    AB 909 (Steinorth R) Mandates that trauma kits be installed in private buildings.

    AB 975 (Friedman D) Greatly expands wild and scenic rivers designations.

    AB 1059 (Gonzalez Fletcher D) Attempts to Bans Dual agency commercial real estate firms/transactions.

    AB 1506 (Bloom D) Residential rent control: Costa-Hawkins Rental Housing Act.

    SB 2 (Atkins D) Applies a $75 tax to all recorded real estate documents.

    SB 224 (Jackson D) Overturns recent CEQA court.

    SB 640 (Hertzberg D) Sales tax on services.

    SB 705 (Allen D) Solid waste: expanded mandate on certain packaging.

    SB 775 (Wieckowski D) California Cap-and-Trade on Greenhouse Gases.

    HIGH PRIORITY BILLS OPPOSED BY INDUSTRY THAT PASSED THE FIRST HOUSE

    Posted: June 2, 2017 | Posted by CBPA | No Comments

    The bad news is that many bills our industry opposed and were deemed as high priorities have passed the first house and are continuing to move.

    AB 73 (Chiu D) Planning and zoning: sustainability districts.

    AB 354 (Calderon D) Institutional Property Investors.

    AB 450 (Chiu D) Immigration worksite enforcement actions.

    AB 890 (Medina D) Bans local land use initiatives and takes away local control.

    AB 1127 (Calderon D) Mandates Baby diaper changing stations.

    AB 1667 (Friedman D) Adds burdensome water management planning.

    AB 1701 (Thurmond D) Original Contractor Labor-related liabilities.

    SB 49 (De León D) Tries to pre-empt certain environmental activities by the federal government.

    SB 63 (Jackson D) Expands parental leave mandates.

    SB 100 (De León D) Requires 100% renewable energy in the State.

    SB 150 (Allen D) Regional transportation plans.

    SB 231 (Hertzberg D) Adds potentially burdensome fees and charges for property infrastructure.

    SB 258 (Lara D) Cleaning Product Right to Know Act of 2017.

    SB 562 (Lara D) Single Payer Healthcare for California.

    ASSEMBLY REJECTS PLAN TO EXTEND CAP-AND-TRADE

    Posted: June 2, 2017 | Posted by CBPA | No Comments

    In a stunning vote, especially since it was on the same day that President Trump announced that the U.S. would not participate in the Paris Climate Agreement a divided Democrat Caucus failed to move forward a key Climate Change bill related to re-authorizing California’s own rules:

    Above and beyond just extending the state’s current cap-and-trade program focused on carbon emissions beyond 2020, AB 378 (Garcia D) also expanded the program to include new restriction on air pollutants and potential limits on industrial facilities. Business groups strongly opposed the expansion of the program, as did the Republican Caucus and the Moderate Democrat Caucus, who hung together to reject the bill.

    In an unusual move, the vote tally was held open for almost 45 minutes as legislative leaders tried to pry the Mods apart and get them to support the measure.  Additional votes never materialized and the bill died on a final vote of 34 ayes and 39 noes.

    The fight, however, is far from over.  The Governor and Legislative Leaders have placed a very high priority on re-authorizing cap-and-trade and its expected a late session push will happen in August and/or September.

    We are asked a lot about why the commercial real estate industry cares so much about this issue as it is seen as something that primarily impacts industrial facilities and trucking.  Its about much more than that and ultimately impacts every one of your buildings through higher energy costs (electrical, natural gas, and gasoline) and is driving the extremely strict building codes that are driving up the costs of your new construction and tenant improvements.

    This article by our friends John Gamboa and Jennifer Hernandez is one of the most enlightening articles you can read on this topic and we highly recommend it to you. Click here to read the full article.

    TITLE 24 RE-WRITE BEGINS – INDUSTRY HELP NEEDED

    Posted: June 2, 2017 | Posted by CBPA | No Comments

    Some of you may remember that one of the biggest blow ups our industry has seen recently was the over-reach of the last set of lighting regulations.  Some buildings were seeing their tenant improvement costs more than triple because of the onerous rules that were put into place.  Although we were able to get the regulations corrected, the fact that they were adopted in the first place is due, partially, because our industry didn’t spend the time and effort to fully analyze the proposals before they were applied to your projects.

    We hope to avoid that situation moving forward and in addition to some technical consulting help we have brought on for this cycle, we hope that you will also help by participating in the process and asking technical experts that you work with to review proposals and get us feedback on anything that appears to be onerous, unimplementable, or not cost effective.

    With that below are two upcoming workshops that are important.

    ENERGY REGS: NONRESIDENTIAL LIGHTING STANDARDS

    Posted: June 2, 2017 | Posted by CBPA | No Comments

    Nonresidential Lighting Measures for the 2019 Standards California Energy Commission staff will conduct a workshop to gather stakeholder input on the development of the 2019 Building Energy Efficiency Standards (Standards). The workshop will be held on: Thursday, June 22, 2017 9:00 a.m. at the California Energy Commission.

    This is the fifth 2017 pre-rule making staff workshop for the 2019 Standards update and will focus specifically on nonresidential lighting measures. Multiple lighting measures will be presented and discussed, including measures for indoor lighting sources, indoor lighting controls, lighting alterations, advanced daylighting design, outdoor light sources, and outdoor lighting controls.  Click here for more information, including how to participate via the web.

    INDOOR AIR QUALITY (HVAC) ENERGY EFFICIENCY WORKSHOP

    Posted: June 2, 2017 | Posted by CBPA | No Comments

    California Energy Commission staff will conduct a workshop to gather stakeholder input on residential and nonresidential indoor air quality and heating, ventilation and air conditioning (HVAC) measures for the 2019 Standards California Energy Commission.  If your building has air conditioning or heating, these regs have the potential of impacting your tenant improvement costs and input from industry experts is needed.

    This staff workshop is for 2019 Building Energy Efficiency Standards. The workshop will be held on: Tuesday, June 6, 2017 9:00 a.m. at the energy commission and online participation is available (see link below). Staff will accept oral comments during the workshop – if we get feedback from members on these measures we will be there in person to provide comments.  Please let us know. Click here for all the information.

    STATE ARCHITECT BEGINS WORK ON ADULT CHANGING FACILITIES

    Posted: June 2, 2017 | Posted by CBPA | No Comments

    In response to legislation passed in 2015, the Division of the State Architect (DSA) has put together a working group to craft building standards for adult changing facilities in “commercial places of public entertainment”.  Specifically, AB 662 (Bonilla) requires a commercial place of public amusement with a daily occupancy greater than 2,500 people to have at least one adult changing table located in an enclosed bathroom.  The statute defines “commercial place of public amusement” as an auditorium, convention center, cultural complex, exhibition hall, permanent amusement park, sports arena, or theatre or movie house having a maximum occupancy greater than 2,500 people.   Earlier this week, DSA conducted the second of six planned working group meetings that will focus on various issues which must be addressed prior to DSA proceeding with the adoption of building standards that must take effect on January 1, 2020.  CBPA and BOMA have representatives on this working group.

    “MAY REVISE” HOLDS THE LINE ON SPENDING

    Posted: May 19, 2017 | Posted by CBPA | No Comments

    The Governor has release an updated version of his proposed budget originally submitted to the Legislature in December.  Known as the “May Revise,” the budget plan for 2017–18 exhibits restraint on new spending with a warning from the Governor that the economic recovery won’t last and uncertainty in Washington adds to unpredictability in California’s budget outlook.

    According to the Governor’s news release, the state’s Rainy Day Fund will end the 2017–18 fiscal year with a balance of $8.5 billion, 66% of the constitutional target of 10% of tax revenues

    By the time the budget is enacted in June, the release points out, the California economy will have completed its eighth year of expansion, two years less than the longest recovery since World War II.

    Here are some of the Budget Highlights:

     

    • More Funding for Schools:Due to the slightly improved fiscal outlook, the May budget increases funding for K–12 schools by about $4,058 per student over 2011–12 levels.

     

    • Reducing Pension Liabilities:The Governor proposes a $6 billion supplemental payment to the California Public Employees Retirement System (CalPERS) with funds borrowed from the Surplus Money Investment Fund, part of the state’s short-term savings account. The payment is estimated to save the state $11 billion over the next two decades while continuing to reduce unfunded liabilities and stabilizing state contribution rates.

     

    • Transportation System Funding:The May revise reflects the first $2.8 billion in new funding from the $54 billion transportation package adopted earlier this spring, plus enhanced oversight of the California Department of Transportation.

     

    • Restored Child Care Funding:Instead of the one-year delay in providing rate increases to child care providers as proposed in January, the May revise proposes restoring the funding and maintaining the $500 million child care package from the 2016 budget.

    The nonpartisan Legislative Analyst’s Office (LAO) reported its estimates of state General Fund revenues and transfers are just slightly above the administration’s – close to $900 million over three fiscal years.

    The difference, the LAO said, is due to its higher estimates of personal income tax and sales-and-use tax revenues, offset by lower estimates of corporation tax revenue.

    The LAO said the Governor’s proposal for the additional CalPERS payment is a “very new idea” that “has promise,” but suggested the Legislature wait to finalize the plan until later in the legislative session to allow time to make sure the plan works and fully maximizes its potential benefit for the state

    The changes are currently being reviewed by the Legislative Budget Committees.  Click here for full information on the Proposal.

    INLAND EMPIRE BILL PROVIDES FAIRNESS AND RELIEF

    Posted: May 19, 2017 | Posted by CBPA | No Comments

    The Governor has signed SB 130 (Committee on the Budget) which expands the existing Vehicle License Fee Adjustment to the cities of Eastvale, Jurupa Valley, Menifee and Wildomar, allowing them to receive millions of dollars in additional property tax revenue.  This is an idea that has been championed by Senator Richard Roth (D-Riverside) for the last few years.

    “With this bill, millions of tax dollars will flow to benefit the people of Eastvale, Jurupa Valley, Menifee and Wildomar,” said Governor Brown. “Senator Roth and Assemblymember Cervantes pushed hard to ensure these communities weren’t left behind.”

    Based on Department of Finance estimates, these cities are expected to collectively receive up to $19 million in additional funding annually. This revenue will help these cities fund critical needs.

    This is an issue that many of our members in Riverside County have been working on and advocating on behalf of for several years.  On their behalf, we thank Senator Roth for his tenacity in pursuing this change and the Governor for signing the bill.

    EIR RELEASED FOR CENTENNIAL AT TEJON RANCH

    Posted: May 19, 2017 | Posted by CBPA | No Comments

    In a process that has taken well over a decade, Los Angeles County has released the Draft EIR for Tejon Ranch’s master-planned community, Centennial, on the south side of the Ranch.  Centennial is a master-planned community of 19,333 homes of all types, and 10.2 million square feet of retail/commercial/Industrial development, with 6,700 acres developed and 5,600 acres preserved as open space in the Antelope Valley.

    The project complies with the Los Angeles County Antelope Valley Area Plan (AVAP), and furthers the implementation of the Tejon Ranch Conservation and Land Use Agreement of 2008, where the Ranch will set aside 240,000 acres in conservation easements, while developing roughly 10-percent of our total 270,000-acre landholding.

    This is a great example of a modern and well thought out project that will provide housing and 30,000 permanent jobs and a $31 million surplus to LA County.  CONGRATULATIONS!

    Click Here to read the full press release.

    TAX ON FAMILY OWNED BUSINESS MOVES FORWARD

    Posted: May 19, 2017 | Posted by CBPA | No Comments

    A bill with multiple tax hikes on businesses and identified as a “Job Killer” by the Cal Chamber, passed a major hurdle this week on a party line vote in the Senate Governance and Finance Committee.

    SB 567 (Lara; D-Bell Gardens) significantly increases taxes on California businesses, who already have one of the highest tax burdens in the country.  The bill targets family-owned businesses that transfer the business upon death to other family members. Under SB 567, the family members who inherit the business/property, would be forced to pay capital gains on the property that has appreciated in value, if the family member(s) have an adjusted gross income of $1 million or more.

    This change would take California out of conformity with federal law, and place another layer of taxes on a small group of Californians paying the highest personal income tax, at 13.3% and will have an overall negative impact on the state’s economy, jobs, and set a terrible precedent.

    We will continue to oppose the bill as it moves forward.

    GHOST SHIP FIRE WORKSHOP

    Posted: May 19, 2017 | Posted by CBPA | No Comments

    Today representatives from commercial and residential real estate groups came together with experts from local government and arts groups to discuss how to create more and safer live-work artist spaces in California urban areas.  Unfortunately, this discussion has been spurred by the tragedy in Oakland known as the “Ghost Ship Fire,” but hopefully good policy will come out of the discussion.

    Staff from the Senate’s Governance and Finance Committee are working with a broad range of stakeholders to identify ways the state can help local governments, building owners, and artists create safe and affordable spaces.  Ideas ranging from changes in CA complicated code structure to providing local governments with “model codes” have been discussed.  We will keep you posted and would welcome ideas.