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UPDATE ON ASSEMBLY BILL 98 - NEW WAREHOUSE RESTRICTION LAW

OCTOBER 31, 2024 - CBPA has hosted several webinars and partnered with allied to groups to share legal analysis of the newly passed AB 98 statute that sets statewide standards for warehouse/logistic center/manufacturing warehousing. Interest and demand for information on this topic has been heavy – we have now briefed collectively over 500 industry leaders on this measure.  A summary of the new law can be found here.

Our next steps are to start sharing this information with our external partners such as other industry groups to make sure we are in phase, and then to coordinate directly with local government to find common ground on potential clarifications moving forward.

A full legal redline is available to CBPA members, however these are the major areas that our members have identified that need to be fixed/cleaned-up:

  1. Effective Dates: Clarify effective dates. What current and future projects are governed by the law.
  2. Redevelopment and Infill: Address issues related to infill/urban/redevelopment impacts on existing warehouses.
  3. Expansion Threshold: Clarify language related to existing building expansion – 20% threshold applicability.
  4. Truck Routes: Address Truck Route Issues including significant burden on local government, timeline, rural routes, and enforcement requirement misplaced on warehouse properties.
  5. Manufacturing/Ag Exemptions: Seek manufacturing and agricultural exemptions and/or clarifications.
  6. Buffers and Setbacks: Clarification on buffers, building orientation, landscape and screening requirements, drive aisles, loading bay and cross dock issues, etc.
  7. Housing Replacement: Clarify housing replacement requirements, affordable vs. market rate, who builds and where.
  8. Enforcement: Clarify enforcement of law in an attempt to reduce unnecessary lawsuits.
  9. Clean Up and Definitions: Define the many unclear terms, clarify applicability to multiple buildings on one project, fix consistency issues with dates and terms throughout the statute.

An initial draft the analysis has been vetted internally and is going through legal peer-review now and being shared with other business and local government stakeholders.  

Our goal is not to change the policy of the bill or try to move goal posts, but to identify the essential pragmatic/technical fixes, prioritize them, and then share with other interested parties to build consensus and fix what we can.  As well we want to collect a comprehensive set of suggested amends that reflect the best thinking of our collective legal and development experts that can be used to build agreement and inform the discussion.  

For more information and/or to get engaged, contact CBPA and click here for more background.

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Sacramento, CA 95814

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