Annual Recap

LEGISLATIVE COMMITTEE

Committee Purpose:  Emphasize political awareness and member participation in governmental affairs.  Keep the membership aware of legislative and regulatory threats to the industry and keep them informed about law changes. Do membership “Calls to Action” as needed.

2018 GOALS:

  • Continue to send at least one committee member to Sacramento to attend the CBPA meetings.  

  • Continue the lobbying contract with CBPA.

  • Continue budgeting attendance at the CBPA and IREM National regional conference meetings for the committee.

  • Increase attendance and participation by legislative committee members, as the budget allows, at the CBPA and IREM National regional meetings.

  • Continue with calls to action as needed in 2018.

Committee Chair:   Jeff Hickox, CPM®

Committee Members: Stan Johnson, Dawn Baker, Molly Kirkland, Glenn Martin and Lynn Dover.


2018 MID-YEAR COMMTTEE REPORT 

The following legislative update is courtesy of our industry advocate: California Business

Properties Association ( CBPA) based in Sacramento.

San Diego IREM Legislative Committee Chair Jeff Hickox, CPM

WATER RESTRICTIONS ADOPTED DURING DROUGHT MADE PERMANENT

The Governor has signed a pair of bills that essentially codify much of the emergency water savings regulations adopted during the drought (while also providing a little more flexibility for local agencies) and will kick of a broad scoped regulatory process to further advance water savings in the state. 

AB 1668 (Friedman; D-Glendale) and SB 606 (Hertzberg; D-Los Angeles) were signed into law and continue the state down the path of less water usage. 

Our industry has been generally supportive of the state’s efforts and will remain involved in the process. We need to make sure that rules and regulation not only save water but recognize the efforts that many companies have already invested in water efficiency and we want to assure that future regs can be complied with in an economic manner.

HALFWAY THERE!

The 2018 Legislative hits a major milestone today – “First House Deadline.” That means we are halfway through this year’s Legislative Session. We still have to get through the Budget negotiations, second House policy committees, and lots of last minute amendments on the Floor late in the Summer, but for the moment its nice to know we have made a lot of progress.

BILLS WE OPPOSE THAT ARE NO LONGER WITH US

We don’t like to dwell on bills that fall by the wayside and die during the process. However, now is a good time to report out on some of the bills we have been working on that are dead for the year. Here are some significant bills we have opposed that are not moving forward:

AB 1745 (Ting D) Vehicles: Clean Cars 2040 Act.  

Summary:  Would, commencing January 1, 2040, prohibit the Department of Motor Vehicles from accepting an application for original registration of a motor vehicle unless the vehicle is a zero emissions vehicle, as defined. The bill would exempt from that prohibition, a commercial vehicle with a gross vehicle weight rating of 10,001 pounds or more, and a vehicle brought into the state from outside of the state for original registration, as specified.

Position:  OPPOSE - STATUS: DEAD

AB 1902 (Levine D) Eligible employers: personal services contracts.  

Summary:  Would require the Department of Industrial Relations to, by January 1, 2020, and annually thereafter, develop a list of eligible employers that the department determines are valued at least $1,000,000,000. The bill would require an eligible employer that enters into a personal services contract, as defined, on or after January 1, 2020, to include a provision in that contract that requires the employees that will perform the services in that contract to be paid a wage that is equal to an unspecified amount. By expanding the scope of an existing crime, this bill would impose a state-mandated local program. This bill contains other related provisions and other existing laws.

Position:  OPPOSE - STATUS: DEAD

AB 2069 (Bonta D) Medicinal cannabis: employment discrimination.  

Summary:  Would provide that, when used to treat a known physical or mental disability or known medical condition, the medical use of cannabis by a qualified patient or person with an identification card is subject to reasonable accommodation. The bill would provide that it does not prohibit an employer from refusing to hire an individual or discharging an employee who is a qualified or person with an identification card, if hiring or failing to discharge an employee would cause the employer to lose a monetary or licensing-related benefit under federal law. The bill would also provide that it does not prohibit an employer from terminating the employment of, or taking corrective action against, an employee who is impaired on the property or premises of the place of employment or during the hours of employment because of the use of cannabis.

Position:  OPPOSE - STATUS: DEAD

AB 2074 (Bonta D) Damages: lead-based paint.  

Summary:  Would allow the injured party, in any action to recover damages for injury to person or property caused by lead-based paint, to establish a prima facie case that a particular lead paint pigment manufacturer is the cause of the injury if the injured party proves by a preponderance of the evidence that the lead paint pigment manufacturer sold, distributed, or promoted in California either the type of lead paint pigment that caused the injury or a product containing the type of lead paint pigment that caused the injury, and would shift the burden of proof to the lead paint pigment manufacturer to prove by a preponderance of the evidence that it did not sell, distribute, or promote the lead paint pigment that caused the injury or a product containing the type of lead paint pigment that caused the injury during the relevant time period or in the geographical market in which the injury occurred.

Position:  OPPOSE - STATUS: DEAD

AB 2110 (Eggman D) Electronics: Right to Repair Act.  

Summary:  Would enact the Right to Repair Act. The bill would, except as provided, require the original equipment manufacturer of electronic equipment or parts sold and used in the state to, among other things, provide to independent repair providers and owners of the equipment certain parts, tools, and information, including diagnostic and repair information, as specified, for the purpose of providing a fair marketplace for the repair of that equipment. The bill would require compliance with these provisions for equipment or parts that are no longer manufactured for 5 years after the date the original equipment manufacturer ceases to manufacture the equipment or parts.

Position:  OPPOSE - STATUS: DEAD

AB 2364 (Bloom D) Rental control: withdraw from accommodation.  

Summary:  Current law, commonly known as the Ellis Act, generally prohibits public entities from adopting any statute, ordinance, or regulation, or taking any administrative action, to compel the owner of residential real property to offer or to continue to offer accommodations, as defined, in the property for rent or lease. This bill would revise the circumstances under which an owner may be required to offer accommodations to displaced tenants and lessees to eliminate the requirement that the request be made in writing within 30 days of notification, as described above, and would instead make the offer contingent on the tenant or lessee advising the owner of a desire to consider an offer.

Position:  OPPOSE – STATUS: DEAD

AB 2379 (Bloom D) Waste management: plastic microfiber.  

Summary:  Would require that new clothing made from fabric that is composed of more than 50% synthetic material bear a conspicuous label that is visible to the consumer at the point of sale, in the form of a sticker, hang tag, or any other label type, with specified information, including a statement that the garment sheds plastic microfibers when washed. The bill would require new clothing with that material composition, if a care label is required pursuant to federal law, to include additional information on the care label, including that same statement.

Position:  OPPOSE - STATUS: DEAD

AB 2529 (Chu D) Income taxation: like kind exchanges: withholding.  

Summary:  Current law requires the transferee of a California real property interest, in specified circumstances, to withhold for income tax purposes 31/3% of the sales price of the property when the property is acquired from an individual, or a partnership or corporation without a permanent place of business, as specified. Existing law allows a credit against the tax to the recipient of the income for the taxable year in which that amount was withheld under these provisions. Current law exempts from the withholding requirements real property that is exchanged, or will be exchanged, for property of like kind, as defined, and that qualifies for nonrecognition treatment under California income or franchise tax purposes. This bill would require income tax withholding, as provided, for like kind transfers for out-of-state properties that occur on or afterJanuary 1, 2019.

Position:  OPPOSE - STATUS: DEAD

AB 2613 (Reyes D) Failure to pay wages: penalties.  

Summary:  Current law provides for a civil penalty, in addition to, and entirely independent and apart from other penalties, on every person who fails to pay the wages of each employee, as specified, and requires the Labor Commissioner to recover that penalty. Current law requires that a specified percentage of the penalty recovered under that provision be paid into a fund within the Labor and Workforce Development Agency dedicated to educating employers about state labor laws and that the remainder be paid into the State Treasury to the credit of the General Fund. This bill would repeal those provisions and instead make an employer or other person acting on behalf of an employer, as described, who fails to pay specified wages of each employee subject to a penalty of $200, payable to each affected employee, per pay period where the wages due are not paid on time, as specified. The bill would provide that the additional penalty does not apply to the failure to pay the final wages of an employee who is discharged or quits.

Position:  OPPOSE - STATUS: DEAD

AB 2618 (Bonta D) Hiring of real property: Department of Consumer Affairs: landlords and property managers: training.  

Summary:  Would, commencing on January 1, 2020, require the Department of Consumer Affairs to administer a certification program for landlords and property managers, as defined, to provide education to landlords and property managers on fair housing practices, obligations of landlords, and tenant rights. The bill would make this certification effective for a period of 2 years and would provide for renewal if certain requirements are met.

Position:  OPPOSE - STATUS: DEAD

AB 2648 (Friedman D) Civil actions: limitations: real property.  

Summary:  Current law prohibits an action from being brought to recover damages from any person, or the person’s surety, who develops real property or performs or furnishes the design, specifications, surveying, planning, supervision, testing, or observation of construction or construction of an improvement to real property more than 10 years after the substantial completion of the development or improvement, as specified. Current law provides that the 10-year statute of limitation does not apply to actions based on willful misconduct or fraudulent concealment. This bill would similarly provide that an action for personal injury resulting from water contamination must be commenced no later than 10 years after the plaintiff discovered the injury, and would make technical, nonsubstantive changes to the provisions.

Position:  OPPOSE - STATUS: DEAD

AB 2708 (Reyes D) Contracts: translation.  

Summary:  Would also require a person engaged in a trade or business, or a supervised financial organization, to provide a translation of a contract or agreement to a consumer who primarily speaks one of specified foreign languages if the transaction is negotiated in English by a minor on behalf of the consumer.

Position:  OPPOSE - STATUS: DEAD

AB 2779 (Stone, Mark D) Recycling: single-use plastic beverage container caps.  

Summary:  Would prohibit a retailer from selling or offering for sale a single-use plastic beverage container with a cap that is not tethered to or contiguously affixed to the beverage container on and after January 1, 2022, for beverage containers containing water. The bill would provide that these prohibitions do not apply for beverage containers manufactured by small bottlers, which the bill would define as a bottler with less than unspecified amounts of sales and employees. The bill would define terms for purposes of these provisions.

Position:  OPPOSE - STATUS: DEAD

AB 2925 (Bonta D) Tenancy: eviction: for cause.  

Summary:  Current law requires that an owner of a residential dwelling generally give at least 60 days’ notice prior to termination or, in the case of a tenant or resident that has resided in the dwelling for less than one year or if certain other conditions apply, 30 days’ notice prior to termination. Current law provides that a tenant of real property is guilty of unlawful detainer in certain circumstances, including that the tenant continues in possession of the property after the expiration of the term for which it is let to him or her, as provided.This bill would prohibit a landlord from terminating a tenancy, or seeking to recover possession from a tenant who continues in possession of property after the expiration of the term for which it is let, as described above, except for cause, as set forth with particularity in the notice.

Position:  OPPOSE - STATUS: DEAD

AB 2946 (Kalra D) Division of Labor Standards Enforcement: complaint.  

Summary:  Current law authorizes a person who believes he or she has been discharged or otherwise discriminated against in violation of any law under the jurisdiction of the Labor Commissioner to file a complaint with the Division of Labor Standards Enforcement within 6 months after the occurrence of the violation.This bill would extend the period to file a complaint to within 3 yearsafter the occurrence of the violation.

Position:  OPPOSE - STATUS: DEAD

AB 2841 (Gonzalez Fletcher D) Sick leave: accrual and use.  

Summary:  Would change the requirements of the employer’s alternate sick leave accrual method to require no less than 40 hours of accrued sick leave or paid time off by the 200th calendar day of employment, as specified. The bill would also provide an employer is under no obligation to allow an employee’s total accrual of paid of sick leave to exceed 80 hours or 10 days, as specified. The bill would raise the limitation on sick leave carried over to the following year of employment to 40 hours or 5 days.

Position:  OPPOSE - STATUS: DEAD

AB 3001 (Bonta D) Zero-emissions buildings and sources of heat energy.  

Summary:  Would require the Energy Commission to provide compliance incentive credit for measures that result in reduced emissions of greenhouse gases beyond those the commission has determined to be cost effective. The bill would require the Energy Commission, for the year 2022 and thereafter, to require new residential and nonresidential buildings to be electric-ready buildings, as defined, and to develop standards pursuant to which emissions of greenhouse gases associated with new residential and nonresidential buildings could be reduced in a cost-effective manner.

Position:  OPPOSE - STATUS: DEAD

AB 3155 (Cooper D) Public works: definition.  

Summary:  Current law defines the term “public works” for purposes of requirements regarding the payment of prevailing wages to include construction, alteration, demolition, installation, or repair work done under contract and paid for using public funds, except as specified. Current law makes a willful violation of laws relating to the payment of prevailing wages on public works a misdemeanor. This bill would expand the meaning of the term “public works” to include warranty work, and would include warranty work within the definition of “construction” as it is used to define “public works.”

Position:  OPPOSE - STATUS: DEAD

SB 1174 (Stone R) Commercial real estate: disclosures.  

Summary:  Would provide for a voluntary certified commercial real property disclosure to be provided by the transferor of commercial real property, as defined, to a prospective transferee. The bill would require any transferor that elects to provide that disclosure to include within the contract for the transfer of the property a provision allowing the transferee to have a specified period of time to terminate his or her offer following receipt of the disclosure.

Position:  OPPOSE - STATUS: DEAD

SB 1326 (Hueso D) Construction contracts: indemnity.  

Summary:  Current law, with specified exceptions, provides that provisions, clauses, covenants, or agreements contained in, collateral to, or affecting any construction contract entered into on or after January 1, 2013, with the owner of privately owned real property to be improved and as to which the owner is not acting as a contractor or supplier of materials or equipment to the work, that purport to impose on any contractor, subcontractor, or supplier of goods or services, or relieve the owner from, liability are unenforceable to the extent of the active negligence of the owner, including that of its employees. This bill would clarify that the contractual provisions described above are unenforceable if the liability purported to be imposed is caused, in whole or in part, by the active negligence of the owner or its employees.

Position:  OPPOSE - STATUS: DEAD

BILLS WE SUPPORT THAT ARE NO LONGER WITH US

Here are some significant bills we have supported that are not moving forward:

AB 2016 (Fong R) Labor Code Private Attorneys General Act of 2004: civil actions.  

Summary:  The Labor Code Private Attorneys General Act of 2004 authorizes an aggrieved employee who complies with specified notice and filing requirements to bring a civil action to recover specified civil penalties that would otherwise be assessed and collected by the Labor and Workforce Development Agency. The act requires that the aggrieved employee or representative give written notice, as provided, to the agency and the employer of the specific provisions of the Labor Code alleged to have been violated, including the facts and theories to SUPPORT - STATUS: DEAD the alleged violation. This bill would instead require the notice to include a statement setting forth the relevant facts, legal contentions, and authorities SUPPORT - STATUS: DEADing each alleged violation and an estimate of the number of current and former employees against whom the alleged violation or violations were committed and on whose behalf relief is sought.

Position:  SUPPORT - STATUS: DEAD

AB 2728 (Chen R) Replacement of corroded or lead-containing plumbing or service lines: loans.  

Summary:  Would, to the extent funding is made available, authorize the State Water Resources Control Board to establish a grant program to provide funding to a county or qualified nonprofit organization, as specified, to provide low-interest loans to defined property owners for the replacement of corroded or lead-containing plumbing and service lines that adversely impact drinking water standards or for the installation of a point-of-use or point-of-entry water treatment system, as specified.

Position:  SUPPORT - STATUS: DEAD

AB 2814 (Gray D) California Renewables Portfolio Standard Program: hydroelectric generation facilities.  

Summary:  Would revise the definition of an eligible renewable energy resource for the purposes of the California Renewables Portfolio Standard Program to include hydroelectric generation facilities of greater than 30 megawatts, as specified. The bill would also make conforming changes.

Position:  SUPPORT - STATUS: DEAD

AB 2856 (Melendez R) California Environmental Quality Act: housing development projects.  

Summary:  CEQA requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA establishes a procedure by which a person may seek judicial review of the decision of the lead agency made pursuant to CEQA. This bill would, except as provided, prohibit the court, in an action or proceeding brought alleging a violation of CEQA, from staying or enjoining the siting, construction, or operation of housing development projects, as defined.

Position:  SUPPORT - STATUS: DEAD

AB 3020 (Flora R) California Environmental Quality Act: exemption.  

Summary:  Would expressly exempt from CEQA projects undertaken, carried out, or approved by a public agency to maintain, repair, restore, demolish, or replace properties or facilities damaged or destroyed as a result of fire or flood in a disaster-stricken area and would eliminate the requirement that a state of emergency has been declared for that area. The bill would exempt from CEQA specific actions necessary to reduce the threat or intensity of a wildfire. Because a lead agency would be required to determine whether a project falls within these exemptions, this bill would impose a state-mandated local program.

Position:  SUPPORT - STATUS: DEAD

AB 3027 (Chávez R) California Environmental Quality Act: attorney’s fees.  

Summary:  CEQA establishes procedures by which certain parties may file an action or proceeding challenging the lead agency’s action on the ground of noncompliance with CEQA. Current law authorizes the court, upon the motion of a party, to award attorney’s fees to a prevailing party in an action that has resulted in the enforcement of an important right affecting the public interest if 3 specified conditions are met. This bill would, for a prevailing party that is a plaintiff or petitioner in an action or proceeding under CEQA, limit the awarding of attorney’s fees to certain persons or entities.

Position:  SUPPORT - STATUS: DEAD

AB 3147 (Caballero D) Fee mitigation act: housing developments.  

Summary:  The Mitigation Fee Act requires a local agency that establishes, increases, or imposes a fee as a condition of approval of a development project to, among other things, determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed. This bill would require, at the time that an application for a housing development project is deemed complete, a city, county, and city and county to provide a good faith statement disclosing the amount of impact and development fees applicable to the housing development. The bill would also prohibit these disclosed impact and development fees from being increased for 2 years following issuance of the good faith statement.

Position:  SUPPORT - STATUS: DEAD

SB 1091 (Stone R) Property taxation: transfer of base year value: disaster relief.  

Summary:  Current property tax law, pursuant to a requirement of the California Constitution, authorizes the base year value of property that is substantially damaged or destroyed by a disaster, as declared by the Governor, to be transferred to a comparable property located within the same county that is acquired or newly constructed as a replacement for the substantially damaged or destroyed property. This bill would prohibit the limitation requiring the transfer of base year value within the same county from applying to the transfer of base year value of property that is substantially damaged or destroyed by a disaster, as declared by the Governor, occurring on or after January 1, 2017, to July 1, 2018, inclusive, to comparable property located within a different county that is acquired or newly constructed as a replacement for the substantially damaged or destroyed property.

Position:  SUPPORT - STATUS: DEAD

SB 1417 (Cannella R) Minimum franchise tax.  

Summary:  Current law imposes an annual minimum franchise tax of $800, except as provided, on every corporation incorporated in this state, qualified to transact intrastate business in this state, or doing business in this state, and an annual tax in an amount equal to the minimum franchise tax on every limited partnership, limited liability partnership, and limited liability company doing business in this state, as specified. This bill, for taxable years beginning on or after January 1, 2019, would reduce the minimum franchise tax, as provided, based on the gross receipts of the corporation, but would continue to impose the current amount of the annual tax on every limited partnership, limited liability partnership, and limited liability company doing business in this state.

Position:  SUPPORT - STATUS: DEAD

SB 827 (Wiener D) Planning and zoning: transit-rich housing bonus.  

Summary:  Would require a local government to, if requested, grant a development proponent of a transit-rich housing project a transit-rich housing bonus if that development at the time of submittal meets specified planning standards, including complying with demolition permit requirements, complying with any local inclusionary housing ordinance or, if the local government has not adopted an inclusionary housing ordinance, agreeing to provide a specified percentage of awarded units as onsite affordable housing, preparing a relocation benefits and assistance plan, complying with any locally adopted objective zoning standards, complying with any locally adopted minimum unit mix requirements, and if the development includes specified types of parcels, agreeing to replace those units and to offer units at one of 2 specified affordable rates.

Position:  SUPPORT - STATUS: DEAD

SB 948 (Allen D) California Environmental Quality Act community plans.  

Summary:  The The Jobs and Economic Improvement Through Environmental Leadership Act of 2011 authorizes the Governor to certify a project as an environmental leadership development project if the project meets certain conditions, including, among other things, that the project will result in a minimum investment of $100,000,000 in California upon completion of construction and the project will not result in any net additional emissions of greenhouse gases. The act requires a lead agency to prepare the record of proceedings for a certified project concurrent with the preparation of certain environmental documents. This bill would authorize the Governor to certify updates to a community plan and the accompanying ordinances meeting specified requirements as being eligible for the CEQA streamlining benefits provided by the Jobs and Economic Improvement Through Environmental Leadership Act of 2011.

Position:  SUPPORT - STATUS: DEAD

SB 1049 (Moorlach R) Public contracts: local public entities: project labor agreements.  

Summary:  Current law sets forth the requirements for the solicitation and evaluation of bids and the awarding of contracts by public entities and requires a project labor agreement for a construction project used or entered into by a public entity, or required of contractors by the public entity, to include specified provisions.This bill would delete all of the specified prohibitions. This bill contains other current laws.

Position:  SUPPORT - STATUS: DEAD

SB 1052 (Bates R) California Environmental Quality Act: judicial challenge: identification of parties and contributors.  

Summary:  Would require a plaintiff or petitioner, in an action brought pursuant to CEQA, to disclose specified information regarding the plaintiff or petitioner in the complaint or petition, as specified. The bill would require disclosure of the identity of a person or entity that contributes in excess of $100 dollars, as specified, toward the plaintiff’s or petitioner’s costs of an action. The bill would provide that a failure to provide this disclosure shall be grounds for dismissal of the action by the court or, if the failure occurs during a postjudgment proceeding, the denial of attorneys’ fees for a successful plaintiff or petitioner.

Position:  SUPPORT - STATUS: DEAD

SB 1296 (Glazer D) Department of Housing and Community Development: database of local fees.  

Summary:  Would, by December 31, 2019, additionally require the Department of Housing and Community Development to collect information from cities, counties, and special districts on the fees imposed for new developments and to publish and make available a database of the fees charged by those public agencies to new developments by jurisdiction. The bill would also require the department to periodically update this database. The bill would require each special district to annually report to the department the fees that the special district charges to new developments.

Position:  SUPPORT - STATUS: DEAD

SB 1340 (Glazer D) California Environmental Quality Act: housing projects.  

Summary:  Would require the Judicial Council, by July 1, 2019, to adopt a rule of court establishing procedures applicable to actions or proceedings seeking judicial review pursuant to CEQA of a lead agency’s action, as specified, for a housing project. The bill would prohibit the court, in an action or proceeding brought alleging a violation of CEQA, from staying or enjoining the siting, construction, or operation of a housing project, except as provided.

Position:  SUPPORT - STATUS: DEAD

SB 1341 (Glazer D) California Environmental Quality Act: judicial challenge: identification of contributors.  

Summary:  Would require a plaintiff or petitioner, in an action brought pursuant to the California Environmental Quality Act, to disclose the identity of a person or entity that contributes in excess of $1,000, as specified, toward the plaintiff’s or petitioner’s costs of the action. The bill also would require the plaintiff or petitioner to identify any pecuniary or business interest related to the project of any person or entity that contributes in excess of $1,000 to the costs of the action, as specified. The bill would provide that a failure to comply with these requirements may be grounds for dismissal of the action by the court.

Position:  SUPPORT - STATUS: DEAD

SB 1399 (Wiener D) Renewable energy: shared renewable energy tariffs.  

Summary:  Would require the Public Utilities Commission to require each large electrical corporation to establish a tariff or tariffs that provide for bill credits for electricity generated by eligible renewable generating facilities and exported to the electrical grid to be credited to electrical accounts of nonresidential customers of the corporations. The bill would require the commission to ensure that the credits reflect the full value of the electricity from the eligible renewable generating facilities and the credits are established using the same methodology that is used to determine credits under the standard contract or tariff for eligible customer-generators.

Position:  SUPPORT - STATUS: DEAD

Accomplishments this year:

Stan and Jeff represented the chapter at the annual CBPA conference in Sacramento in June. Both lead groups to visit legislators and lobby pro-industry positions.

Stan and Jeff met up with William Sheridan, at this meeting,  who is the co-chair with Jeff of the California Chapters of IREM legislative committee to discuss strategies to benefit IREM.

Bill was able to convince IREM National to allow our California Chapters to take advocacy positions without having to discuss and get approval from National on each issue as it comes up. This will allow us to be on-board with other trade groups and have our name on letters of position giving IREM more standing in the industry in California.

Rex Hime of CBPA conducted monthly conference calls with Jeff and Bill taking the lead as statewide contacts for all CA IREM chapters. There was more participation this year from other chapters compared to last year, which is a positive development.

IN-DISTRICT MEETINGS

In lieu of the annual Capital Conference in Washington D.C. IREM National requested in-district meetings at our local congressional representatives district offices. Our committee participated in this visiting the representative or a staffer. This included Darrel Issa, Susan Davis, Scott Peters and Juan Vargas. Duncan Hunter schedule was completely full during the allotted time period. All meetings were successful with the rep. or staffer learning about IREM and our issues.

RECAP

Our SD chapter meetings were at lunch time at the chapter office on the 3rd Thursdays of each month.

Stan will attended the winter strategic conference on behalf of the chapter in early December in Napa at chapter expense.

The 2017 Holiday lunch was again held at the Edgewater Grill at Seaport Village on Dec. 14th this year. Rex will flown in from Sacramento.

Recommendations for next year:

Continue to cooperate with IREM National to attend the regional conference for the California chapters in 2018 and attend all of the CBPA meetings as possible.

Be prepared to fight attacks against Prop. 13 and/or split roll taxes and rent control.

NO ACTION REQUESTS ARE NEEDED AT THE PRESENT TIME.

2016 ANNUAL COMMITTEE REPORT

CBPA CALIFORNIA 2016 YEAR-END WRAP UP

During the 2016 legislative session, CBPA had great successes on a number of key issues. They include implementation of major reforms to the state’s ADA law, stopping efforts to advance split roll property tax, reforming the way building codes are written, and helping shape state water efficiency standards. Below are just some of the highlights from 2016. Click here to view the 2015/2016 CBPA High Priority Measures.

LEGISLATIVE/POLITICAL EVENTS – CBPA leadership participated in several high-level events which gave them access to peers and policymakers. Starting in January CBPA hosted a Candidates Luncheon in Sacramento which was attended by several candidates seeking election in competitive seats. In April, we hosted a Legislative Meeting at which CBPA members were able to weigh in on industry positions on over 400 bills. In June, we hosted the “California Commercial Real Estate Summit,” in which real estate leaders met with Gubernatorial staff and over 1/3 of the Legislature. In November, we hosted the “Industry Awards Dinner” at which over 200 of the top real estate leaders gathered to honor high achievers in our industry. Additionally, CBPA staff from Sacramento have presented at a wide variety of industry events to thousands of members of the real estate industry to brief about issues in Sacramento.

LEGISLATION – On behalf of the commercial, industrial, and retail real estate industry, CBPA engaged on 446 pieces of legislation in the CA State Capitol. A full listing of bills, positions, and outcomes have been provided under separate cover.

REGULATIONS – On behalf of the commercial real estate industry, CBPA engaged regulatory agencies ranging from the Department of Water Resources, California Energy Commission, Public Utilities Commission, Air Resources Board, Building Standards Commission, State Architect and Department of Finance on a range of policies, such as energy efficiency, greenhouse gas regulation, land-use and recycling. This year a lot of time was spent on Energy Issues.

SPLIT ROLL BILL DEFEATED – SCA 5 (Hancock; D-Berkeley)/(Mitchell; D-Los Angeles) sought to remove the protections of Proposition 13 by targeting commercial property owners to increase property taxes by triggering a “current fair market valuation” instead of the current acquired value.

SPLIT ROLL TAX BALLOT MEASURE – CBPA is an Executive Committee member of the political effort to push back against the myriad of groups attempting to put a split roll measure on the ballot. After more than two years of rebutting arguments with editorial boards, at school board meetings, and a statewide education campaign, and defeat of SCA 5, leaders of the “Make It Fair” campaign have officially abandoned efforts to push a ballot measure in 2016. This action will save industry members from a multi-million dollar budget battle on the 2016 ballot.

ADA REFORM – TIME TO FIX NON-ACCESS VIOLATIONS – California has 40% of the nation’s ADA lawsuits but only 12% of the country’s disabled population. Therefore we have played a key role in sponsoring and supporting a package bills that reform ADA in California which made it to the Governor’s Desk. SB 269 (Roth) was a significant reform in California, which, among other things, gives businesses a chance to address and fix certain violations before a lawsuit can proceed.

ADA REFORM - CASp LEASE LANGUAGE AB 2093 (Steinorth ) fixed ADA lease language that has prevented many from utilizing the CASp program because the former statutes sweeping requirements for disclosure. The revised statute will facilitate more property owners to seek a CASp certification in order to assure their properties are in compliance with the law increasing access and lessening the number of unnecessary lawsuits while eliminating onerous and unnecessary disclosure requirements.

CALIFORNIA COMMISSION ON DISABILITY ACCESS VP – Through previous legislation we helped establish the California Commission on Disabled Accessibility that promotes and facilitates disability access compliance. CBPA works directly with the Governor’s Office to name our industry representative to this board, which is currently CBPA Boardmember Doug Wiele. Doug was elevated to Vice President of the Commission this year for a second time.

ENERGY CODE: LIGHTING CONTROL REFORMS -- Energy Commission, Docket No. 15-BSTD-01 was adopted to address issues related to the 2016 Building Energy Efficiency Standards Lighting Retrofit Code. As California’s energy code has lead the way in the nation making sure that our buildings are the most efficient in the country, from time-to-time regulations may not work out in the real world as they do on paper. These lighting retrofit requirements in question turned out to be more complicated, burdensome, and expensive to implement than expected when the Commission adopted thepackage.

BENCHMARKING REGULATIONS – As a primary proponent of AB 802, we helped repeal the flawed AB 1103 regulations and put more flexible regulations in place. The new law keeps the benchmarking requirements but removes the statutory requirement benchmarking be completed during escrow, limits it to buildings over 50K s.f., allows the commission to exempt certain buildings, and delays the requirement until2017.

SINGLE USE BATHROOM BILL – CBPA worked closely with the author to assure workable language was inserted into the bill, but remained neutral because we don’t like to see building code set in statute. The bill requires all single-user toilet facilities in any building to be designated as an all-gender toilet facility. Signed into law, using language our industry believes can be implemented without inducing lawsuits or incurring unreasonable expenses.

ANTI-DEVELOPMENT BILLS DEFEATED – We helped defeat two bills that would have fundamentally changed the way our industry petitioned the Coastal Commission and were meant to further tip the scales in favor of anti-development activists. SB 1190 (Jackson D) would have made it much more difficult for land owners in the Coastal Zone to petition their government and navigate the permit process; while AB 2002 (Stone D) sought to require a California Coastal Commission member to fully disclose in writing 24 hours before a commission hearing any ex parte communication conducted within 7 days of the commission hearing.

HOMELESS CAMPING BILL DEFEATED – AB 718 (Chu D) a bill that sought to undermine local agencies from enforcing ordinances that prohibit people from sleeping or resting in a parked motor vehicle (including in your parking lots) overnight was defeated late in the session. The commercial real estate industry worked closely with partners from local government and law enforcement to make the case this bill is not a viable policy for reducing homeless issues and would probably exacerbate the problem.

AIR RESOURCES “STACKING” BILL DEFEATED – One of the most closely followed and hotly contested bills was SB 1387 (de Leon D) a bill in which our industry, along with a broad array of other business and local government entities vociferously oppose died in the final hours of session. The bill would have substantially and adversely modified the use of market-based incentive programs, and; SB 1387 would have added state-level appointed positions to the South Coast Air Quality Management District Board (SCAQMD), effectively shifting local control over critical regional air quality planning to state law-makers inSacramento.

CLRRA REAUTHORIZATION – SB 820 (Hertzberg D) a bill we supported was signed into law extending the California Land Reuse and Revitalization Act to 2027.   CLRRA is an important tool in cleaning up urban sites for new development.

WATER “SHAMING” BILL DEFEATED – AB 1520 (Stone, Mark D) Water shaming bill. This bill requires the release of private information on water use within certain buildings in an effort that will lead to “public shaming” of those buildings and companies therein.

TOILET REPLACEMENT BILL DEFEATED – We led the effort to defeat AB 2555 (Levine D) a bill that was pushed by a toilet manufacturing company and would have required the upgrade and replacement of all toilets manufactured after 2010 under the guise of “waterefficiency.”

ELEVATOR VARIANCE BILL VETOED – A bill opposed by the commercial real estate industry, AB 1050 (Low D) dealing with occupational safety and health statute regarding permanent variances, was vetoed by Governor Brown.

PARCEL TAX NOTIFICATION BILL – A bill supported by CBPA, AB 2476 (Daly D) was signed into law that now requires public agencies seeking voter approval of parcel taxes to send specified information to nonresident landowners within 30 days of enacting the ordinance.

AFFORDABLE HOUSING/DEVELOPMENT BONUS BILLS – A bill strongly supported by CBPA, AB 1934 (Santiago

D) was signed into law which will create a “development bonus” for commercial property owners that partner with an affordable housing project to construct a mixed-use development was signed into law by the Governor. This bill will create more affordable housing and more compact developments which has been a driving factor to many of the policies signed into law over the past few years. This bill will create an incentive and provide a small tool to help attain those goals by specifying that the development bonus granted to the commercial property owner working with the affordable housing project will produce significant cost reductions over the maximum allowable intensity in the generalplan.

2015 ANNUAL COMMITTEE REPORT

LEGISLATIVE COMMITTEE

Committee Purpose:  Emphasize political awareness and member participation in governmental affairs.  Keep the membership aware of legislative and regulatory threats to the industry and keep them informed about law changes. Do membership “Calls to Action” as needed.

2015 Goals:

  • Continue to send at least one committee member to Sacramento to attend the CBPA meetings. 

  • Send at least one committee member to Washington D.C. to attend the annual IREM National Legislative Event in the spring of 2015.

  • Continue the lobbying contract with CBPA.

  • Continue budgeting attendance at the CBPA and IREM National conference meetings for the committee.

  • Increase attendance and participation by legislative committee members at the CBPA and IREM National meetings.

  • Continue with calls to action as needed in 2015.

  • Continue asking for PAC donations to CBPA within the annual CPM dues billing

Committee Chair:   Jeff Hickox, CPM®

Committee Members: Stan Johnson,  Doreen Reagle, Ron Zapelli, Dawn Baker, Gail Scott,  Molly Kirkland, Shelly Weld and Peter Gaeta.

Accomplishments this year:

We met per our schedule and did bill assignments and follow up on Prop. 13 protection was a hot topic all session long with limited special interest parcel tax increases in play the entire session.  Stan Johnson and Dawn Baker represented the chapter legislative committee in Washington DC and Dawn coordinated the leave behinds and made the meeting arrangements with the Representatives and Senators. We had 2 committee members attending the Annual CBPA legislative Summit on June 10 & 11th, Stan and myself.  Last year we sent 4. Many of the committee members had commitments that they could not break. Interacted with SDCAA and SDAR on industry related issues.

We continued to respond to and give input to CBPA about legislation affecting our industry. We had a call to action to the membership that Nicole sent out this September regarding SB 655 Mold. Unfortunately, the governor signed the bill. The legislature is now out of session .

Rex Hime of CBPA conducted monthly conference calls with all CA IREM chapters with Rex and RVP Lori Graul taking the lead and Jeff Hickox as their back up and moderator during the calls. The attendance in the calls varied but they are a help in informing and unifying the diverse chapter interests throughout the state.

Our meetings were at lunchtime the 3rd  Thursday of each month. The Holiday Lunch location will be at the Edgewater Grill at Seaport Village on Dec. 10th at noon. Rex has confirmed.

Stan will be attending the CBPA board meeting/Industry Awards Nov.5th and 6th  in Lincoln, CA ( Near Sacto).  

Recommendations for next year:

Continue with our affiliation with CBPA and continue to use their contacts and influence to leverage and multiply our legislative committee efforts and in conjunction with the other IREM California chapters. The split roll advocates have put their efforts on hold to change prop. 13 through a ballot measure in 2016. A minor victory. However, we must be vigilant as this coalition will stop at nothing to remove this protection as they feel the State needs the 9 billion dollars annually that adjusting the property tax to market for income producing properties will bring to the State ( and ultimately to their constituents pocketbooks).

2014 ANNUAL COMMTTEE REPORT

LEGISLATIVE COMMITTEE

Committee Purpose:  Emphasize political awareness and member participation in governmental affairs.  Keep the membership aware of legislative and regulatory threats to the industry and keep them informed about law changes. Do membership “Calls to Action” as needed.

2014 Goals:

  • Continue to send at least one committee member to Sacramento to attend the CBPA meetings. 

 

  • Send at least one committee member to Washington D.C. to attend the annual IREM National Legislative Event in the spring of 2014.

 

  • Continue the lobbying contract with CBPA.

 

  • Continue budgeting attendance at the CBPA and IREM National conference meetings for the committee.

 

  • Increase attendance and participation by legislative committee members at the CBPA and IREM National meetings.

 

  • Continue with calls to action as needed in 2014.

 

  • Continue asking for PAC donations to CBPA within the annual CPM dues billing

 

Committee Chair:  Jeff Hickox, CPM®

Committee Members: Stan Johnson, Kathy Belville, Doreen Reagle, Ron Zapelli, Dawn Baker, Gail Scott,  Molly Kirkland, Shelly Weld and Peter Gaeta.

Accomplishments this year:

We met per our schedule and did bill assignments and follow up. Prop. 13 and Tax parcels bills were a hot topic all sessions long with special interest parcel tax increases in play the entire session.  Stan Johnson represented the chapter legislative committee and the leave behinds were assembled by Jeff Hickox and Scott Cook helped make the meeting arrangements with the Representatives and Senators. We had 4 committee members attending the Annual CBPA legislative Summit on June 10 & 11th.(Stan, Dawn, Peter and myself).  Last year we sent 6. Many of the committee members had commitments that they could not break. Interacted with SDCAA and SDAR on industry related issues.

We continued to respond to and give input to CBPA about legislation affecting our industry. We had a call to action that Nicole sent out. The legislature is now out of session and we have made some progress but many parcel tax bills have become 2nd year bills and so we will see them again next year. No other calls to action were needed and the industry, with a lot of help from CBPA, had obtained a veto from the governor, negotiated favorable amendments, was able to kill the bill or get it changed to a 2nd year bill due to lack of a majority. However, not all bills we opposed were disposed of this way. A few were signed into law by the governor and some we supported were vetoed by governor.

Rex Hime of CBPA conducted monthly conference calls with all CA IREM chapters with Rex and Renee taking the lead with Jeff Hickox as their back up and moderator during the calls. The attendance in the calls varied but they are a help in informing and unifying the diverse chapter interests throughout the state.

Our meetings were at lunchtime the 2nd Thursday of each month. The Holiday Lunch location will be inside the Eli Lilly building Green Acres restaurant in the PDR room noon on Dec. 12th.  at the end of Campus Point Drive in the UTC area north.

Stan will be attending the CBPA board meeting/Industry Awards Nov.13th in Newport Beach.

Recommendations for next year:

Continue with our affiliation with CBPA and continue to use their contacts and influence to leverage and multiply our legislative committee efforts and in conjunction with the other IREM California chapters. Next year we expect even more of a concerted effort to eliminate the protections of Prop. 13 and so we will need to be not only vigilant but active in opposing all such