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California Business Properties Association

ICSC - BOMA California - NAIOP California - IREM California - RILA - Nareit - CALED - ACRE - AIR CRE



Matthew Hargrove

President & CEO



Melissa Stevens

Chief Operating Officer



Rex W. Hime

VP Strategic Communications



Crystal Whitfield

Executive Assistant



Rex S. Hime

Senior Advisor

CBPA

Weekly Update

May 27, 2022

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  • MEMORIAL DAY WEEKEND REFLECTION
  • WAREHOUSE/LOGISTIC CENTER BAN PASSES FLOOR – CBPA RESPONDS
  • SUPPLY CHAIN AND ECONOMIC REINFORCEMENT - PASSES FLOOR
  • PRIORITY BILLS - FIRST HOUSE RESULTS
  • NEW WATER RESTRICTIONS IN CALIFORNIA
  • FRAN INMAN - BIZFED ADVOCATE OF THE YEAR
  • CALIFORNIA COMMERCIAL REAL ESTATE SUMMIT – AUGUST 9-10, 2022
  • CBPA 2022 CALENDAR

Memorial Day Weekend Reflection

As you enjoy the long weekend, please take the time to reflect upon the many sacrifices that American men and women have made to allow us to continue to enjoy the freedoms we have on this Memorial Day. 

 

We honor all of those who have made the ultimate sacrifice on behalf of our Country.

Warehouse/Logistic Center Ban Passes Floor -

CBPA Responds

Matthew Hargrove, President and CEO of California Business Properties Association (CBPA), issued the following statement in response to the passage of AB 2840 (Reyes) on the Assembly Floor yesterday:

 

“AB 2840 breaks a key link in the state’s supply chain,” stated Matthew Hargrove. “It is a step backwards when the current pandemic illustrated how essential an efficient goods movement system is to Californians.”

 

CBPA stood with a diverse coalition of stakeholders to oppose the measure including several Labor Unions, the CalChamber who designated the bill as a Job Killer, and CBIA who designated the bill as a Housing Killer.

 

“Modern warehouses and logistics centers are major job creators as well as being among the most energy and water efficient buildings in the nation. The trucks that take products from warehouses to the desired locations are cleaner than ever and are well on their way to becoming emissions free.

 

AB 2840 by Assemblymember Reyes seeks to ban warehouse and logistics projects over 100,000 s.f. from being built within 1,000 feet of other non-warehouse buildings.

 

Due to strong objections from her colleagues, Ms. Reyes committed to narrowing the bill to only include Riverside and San Bernardino Counties. The bill then barely passed over the objections of representatives from those counties with the minimum votes and strong bipartisan opposition.

 

Hargrove continued, “By targeting the Inland Empire, this bill increases emissions by pushing critical infrastructure further from population centers, will stop local economic development and redevelopment projects, and kill high wage union jobs for contractors and their employees where they are critically needed.”

 

To view the press release, click here.

 

Although we didn’t win this major battle, we had a very good showing, and we are set up well to continue the fight. The next major deadline is July 1, by which time the bill must be out of its Senate Policy Committee.

 

THANK YOU to all of you who have helped on this bill, and please stay tuned for more AB 2840 information in the coming weeks. 

Supply Chain and Economic Reinforcement -

Passes Floor

AB 1951 (Grayson), a bill that would expand until 2028, the existing partial sales and use tax (SUT) exemption for manufacturing and research and development (MR&D) tangible personal property (TPP) by making the expenditure a full exemption and removing the $200 million cap on qualifying purchases per individual purchaser passed the Assembly Floor.

 

The bill passed overwhelmingly with a 74-0 bipartisan vote.

 

We are part of a coalition led by CMTA supporting this legislation as it moves through the Senate.

 

AB 1951 is a key step toward addressing California’s supply chain disruptions, incentivizing businesses to scale up production and capacity with firms purchasing more from California-based suppliers.

 

This bill will also help with California’s competitiveness with other states. AB 1951 is a full sales and use tax exemption for the purchase of manufacturing equipment, putting California in line with 38 other states and stopping the pattern of “invent here, build there.”

 

As one of our main priorities this year is the supply chain and goods movement sector, this is a bill we strongly support.

 

Below, find more updates on priority legislation after floor sessions in both houses.

Priority Bills -

First House Results

The Senate and Assembly wrapped up their business for legislation’s first house floor votes today. The Assembly introduced a total of 1,383 bills and sent 886 bills to the floor. The Senate introduced 672 bills in total and sent 591 to the floor.

 

Below, you will find a summary of some priority bills that passed out of their house of origin and our position:

 

AB 1738 (Boerner Horvath) Building standards: installation of electric vehicle charging stations: existing buildings. (OPPOSE)

 

Mandates fully functioning EV charging stations be installed in existing apartments, hotels and motels and commercial buildings. Goes far beyond the EV standards adopted in December 2021.

 

AB 1778 (Garcia, C) State transportation funding: freeway projects: poverty and pollution: Department of Transportation. (OPPOSE)

 

Prohibits state funds from being used to fund or permit freeway projects in areas that fall within the zero to 50th percentile on the housing and environmental variables analyzed through the Index. Would deprive communities of badly needed state highway dollars that could be used to alleviate the congestion and freight corridor issues that contribute to the poor air quality experienced in these communities.

 

AB 2026 (Friedman) Recycling: plastic packaging. (OPPOSE)

Bans critically important ecommerce packaging without adequate substitutes that will lead to more broken products, more greenhouse gas emissions and worse supply chain constraints.

 

AB 2075 (Ting) Energy: electric vehicle charging standards (NEUTRAL)

 

Would have transferred the authority to propose and adopt electric vehicle charging building standards from the Department of Housing & Community Development (HCD) and the Building Standards Commission (BSC) to the California Energy Commission (CEC). Fixed to allow the CEC to provide input and advice to BSC and HCD, not adopt standards themselves.

 

AB 2260 (Rodriguez) Emergency response: trauma kits. (NEUTRAL)

 

This bill requires certain buildings/property owners, including State-owned/leased buildings, to purchase and install trauma kits including tourniquets meant for tactical combat casualty care. The requirements for training were removed therefor fixing liability concerns in the bill.

 

AB 2462 (Valladares) Neighborhood electric vehicles: County of Los Angeles: Westside Planned Communities (SUPPORT)

 

FivePoint Sponsored bill to allow Neighborhood Electric Vehicle Signs in their Valencia Project.

 

AB 2798 (Fong) Freight: development projects. (SUPPORT)

 

This bill, until January 1, 2024, would prohibit a local agency from denying a permit for a short-term freight transportation use, as defined, that is submitted by a developer on a parcel if the proposed use is in conformity with applicable plans, programs, and ordinances, among other things, that apply to the land, solely because the developer has a pending development application, or is concurrently submitting a development application, for a freight transportation project on that land.

 

AB 2836 (Garcia, E) Carl Moyer Memorial Air Quality Standards Attainment Program: vehicle registration fees: California tire fee. (SUPPORT)

 

This bill would extend the current authorization for the Carl Moyer Program to fund a broader range of projects that reduce emissions from covered sources until January 1, 2034. 

 

SB 1104 (Gonzalez) Governor’s Office of Business and Economic Development: Office of Freight. (SUPPORT)

 

Would establish the Office of Freight within GO-Biz. The bill would require the office to serve as the coordinating entity to steer the growth, competitiveness, and sustainability for freight and ports across the state and to promote and assess the continued economic vitality and sustainability of the freight sector. The bill would require the office to submit the assessment to the Legislature on or before December 31, 2024, and an updated assessment at least once every 5 years thereafter. The bill would require the Transportation Agency to incorporate the findings of the assessment into the state freight plan.

 

SB 1335 (Eggman) Discrimination: housing: credit history of persons receiving housing subsidies. (OPPOSE)

 

Would prohibit the use of a person’s credit history as part of the application process for a rental housing accommodation when government subsidy is provided.

 

SB 1338 (Umberg) Community Assistance, Recovery, and Empowerment (CARE) Court Program. (SUPPORT)

 

Authorizes specified persons to petition a civil court to create a voluntary CARE agreement or a court-ordered CARE plan and implement services to provide behavioral health care, including stabilization medication, housing, and other services to adults who are suffering from psychotic disorders and other conditions.

 

SB 1393 (Archuleta) Energy: appliances: local requirements. (SUPPORT)

 

Requires local governments to consider important cost and technological feasibility before requiring residential and commercial property owners to switch out their gas appliances with electric appliances.

 

SB 1410 (Caballero) California Environmental Quality Act: transportation impacts. (SUPPORT)

 

Modifies the Vehicle Miles Travelled (VMT) regulation to be applied only in Urbanized Transit Priority Areas to help the state meet its ambitious climate goals while not penalizing much needed new housing and job centers.

 

SB 1482 (Allen) Building Standards: electric vehicle charging infrastructure. (OPPOSE)

 

This bill would require the mandatory building standards for the installation of electric vehicle charging infrastructure for parking spaces in multifamily dwellings to require that each dwelling unit with access to a parking space have access to a 208/240 volt branch circuit of at least 20 amperes terminating in a receptacle for use by an electric vehicle driver to charge their plug-in electric vehicle, specified signage for those electric vehicle parking spaces, and electrical wiring design options.

New Water Restrictions in California

This week, California water regulators increased the drought rules, as Governor Newsom ordered the State Water Resources Control Board (SWRBC) to adopt emergency regulations that will be punishable with fines. The drought California is faced with is one of the most severe yet and now on year three.


Although these restrictions don’t apply to yards at individual residential homes, parks and field where people gather, and those who irrigate with recycled wastewater – this could have an impact on some of your properties.


The new regulations ban the use of potable water to irrigate “non-functional” grass at commercial and industrial properties.


This also applies to “non-functional” grass in common areas of subdivisions and homeowner associations – which could impact any master plan community projects.


While this may make sense for the drought, it comes at a high cost, and with fire season now year-round, this is raising concerns for other groups as well.


Governor Newsom has warned that if improvements to our conservation efforts aren’t improved in the next couple of months, his administration will be forced to take more statewide action imposing restrictions.


To read the SWRCB Emergency Regulations, click here.

Fran Inman -

BizFed Advocate of the Year

Congratulations to one of our very own, Fran Inman CBPA’s Vice Chair on the Board of Directors, who has been announced BizFed’s “Advocate of the Year”!


Fran led sustained efforts to bolster supply chain integrity during the coronavirus pandemic, connecting the neediest business community members and local residents with essential supplies.


As Chair of the California Transportation Commission, she fought for state policies and funding – with special focus on LA-area needs – that kept people and goods moving.


Her advocacy work involves service to numerous BizFed association members: LA Area Chamber, LAEDC, SGVEP, CBPA, and FuturePorts. Fran is Founding President of the Majestic Realty Foundation.


Congratulations, Fran!

California Commercial Real Estate Summit -

August 9-10, 2022

The California Commercial Real Estate Summit (CCRES) previously schedule for early June, is now scheduled for August 9-10, 2022.


We apologize for the postponing, lingering impacts of COVID restrictions made space availability an issue and the proximity with the primary election and a change in the legislative schedule was not conducive to securing meetings with legislators.


We respects your time, and we did not want to ask you to travel to Sacramento unless it would be worth the effort and expense. We believe August is a better time this year.


Thank you for your flexibility and understanding that postponing CCRES is the prudent thing to do, we apologize for any inconvenience this causes.


CCRES is the one time of year that industry leaders from all sectors of the commercial, industrial, and retail real estate industry join come together from across the nation and hear from top policymakers and California State Legislators.


In the very near future, more information on hotels, meeting space, and agenda items for the event will be provided as we prepare for a great CCRES!


We look forward to seeing you there!

CBPA Calendar 2022

Tuesday, June 7

CBPA Annual Board Meeting

Zoom


Tuesday/Wednesday, August 9-10

California Commercial Real Estate Summit

Sacramento

 

Tuesday, November 15

CBPA Board Meeting 

Sacramento

 

For more information on any of our events, please contact Melissa Stevens at

916-443-4676 or mstevens@cbpa.com.

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