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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 6, 2022

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  • WAREHOUSE/LOGISTIC CENTER BAN – CONTACT YOUR ASSEMBLYMEMBERS
  • CALIFORNIA COMMERCIAL REAL ESTATE SUMMIT – POSTPONED
  • JOB KILLER UPDATES - STOPPED & STALLED
  • FIXING VEHICLE MILES TRAVELED - PASSED HOUSING
  • CALIFORNIA BUDGET - PUSH FOR REJECTION OF SPENDING INCREASES
  • CBPA 2022 CALENDAR

Warehouse/Logistic Center Ban -

Contact Your Assemblymembers

AB 2840 (Reyes) the bill that would create a de facto ban on most new warehouse projects is scheduled for the Assembly Appropriations Committee next Wednesday. The committee’s main consideration is cost to the State’s General Fund, but we will provide information to the committee showing the massive indirect costs to California in terms of putting a crimp in the Supply Chain, increasing GHG and cost to consumers by making goods movement less efficient, and the massive loss of good jobs in the construction trades and warehouse sector. 

 

In the plainest language, AB 2840 attempts to stop the building of any facility 100,000 s.f. or more within 1,000 ft of a “sensitive receptor,” which has a broad definition but is basically most non-industrial uses. Additionally, all projects that are not banned due to proximity to a sensitive receptor must have a skilled and trained workforce agreement to be approved.

 

Even if your company doesn’t build/own these types of facilities, the precedent set by this bill will have a huge impact on all commercial real estate projects in the future.

 

Please contact your local Assemblymembers to talk to them about our concerns with AB 2840. To find your local representative, click here.

 

In addition to creating new statewide construction buffers in statute, the bill continues to mandate skilled & trained workforce requirements on all warehouse projects 100K s.f. and greater, circumvents local land uses processes, and ignores the nation’s strongest environmental laws. 

 

We will continue to work with our coalition partners, as seen on this formal opposition letter, to make sure the severity of the negative impacts this bill is communicated directly to legislators.

 

AB 2840 will disrupt California’s ability to move goods effectively and efficiently; will stop local economic development and redevelopment projects; and will kill high wage jobs in areas where they are needed most.

 

Contact your local Assemblymember and ask them to OPPOSE AB 2840!

California Commercial Real Estate Summit -

Postponed

The California Commercial Real Estate Summit (CCRES) previously schedule for early June, is postponed because the lingering impacts of COVID restrictions made space availability an issue and the proximity with the primary election and a change in the legislative schedule is currently not conducive to securing meetings with legislators. 


As soon as venues are secured, and the exact date is settled more details will be sent about CCRES. We are aiming for the week of August 8.

 

CBPA respects your time and we do not want to ask you to travel to Sacramento unless it will 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. 

Job Killer Updates -

Stopped & Stalled

We have been working in concert with the CalChamber and allied business groups to tackle Job Killer bills in the Legislature once again this year. Below, you can find a quick update on bills that have been stopped for the year as well as another that has been stalled.

 

The following job killer bills missed the April 29 deadline for legislative policy committees to send bills along for consideration by fiscal committees and will not advance this year:


  • AB 1651 (Kalra; D-San Jose) Workplace Technology. Imposes overbroad, unworkable mandates on employers of all sizes, including public entities and tribal communities, that would reduce worker privacy, chill the development of new technologies, and wipe out small businesses for even a good faith mistake due to its excessively punitive enforcement mechanisms.
  • AB 2932 (Low; D-Campbell) Increased Overtime Requirement. Significantly increases labor costs by imposing an overtime pay requirement after 32 hours and other requirements that are impossible to comply with, exposing employers to litigation under the Private Attorneys General Act (PAGA).

 

The following job killer bill has been stalled:

 

  • AB 1771 (Ward; D-San Diego) does not currently have a policy hearing date scheduled and does not appear to be moving this year, although it may be brought up at any time as tax increases are not subject to the normal legislative deadlines. The proposal seeks to impose a tax—in addition to the capital gains tax—of 25% on the profits from a home resold within three years after it is purchased. The tax rate is reduced on a sliding scale for seven years thereafter. This will worsen housing unaffordability and constrain the already-limited housing supply.


The following job killer has been fixed:


  • SB 1301 (Becker; D-Menlo Park) has been amended to remove all of its contents and replaced with new provisions to provide tax credits for clean energy. Before it was amended, SB 1301 would have arbitrarily raised taxes on companies that invest in fossil fuel businesses based upon the financing amount. This would have added another layer of expenses onto the fossil fuel industry that would have significantly increased the cost of doing business, thereby increasing prices paid by consumers for goods and services in California.


Stay tuned for more updates on our work with the business community to stop the CalChamber’s job killers.

Fixing Vehicle Miles Traveled - 

Passed Housing

SB 1410 (Caballero), the bill to address the Vehicle Miles Traveled (VMT) issue created by the Office of Planning and Research regulatory overreach, was heard last week, and passed out of the Senate Housing Committee.


The author and sponsors (CBIA) put up a very deft fight again a chair that was unfriendly towards the bill and large coalition of opposition from environmental groups. The decision was made to accept all the committee amendments, which turns the measure into a de facto “study bill,” in order to keep the vehicle and issue at the forefront and “alive to fight another day.”


Fixing how VMTs are implemented and applied in California is a priority for the business community and will help solve some of the constraints currently on the goods movement and supply chain in the State. 

California Budget - 

Push for Rejection of Spending Increases

Despite the historic state surplus and record revenues, the Legislative Analyst urges the rejection of spending increases going forward.

 

Gabriel Petek warned that the Budget will likely be facing a problem in the coming years, despite the position California now finds itself in. He elaborated by stating,

 

“In 95 percent of our simulations, the state encountered a budget problem by 2025-26. Notably, the likelihood of a budget problem largely is impervious to the future trajectory of state tax revenues. That is, whether revenues trend upward or downward from here, the state likely faces budget deficits. The central implication of our findings is stark and suggests that in the interest of fiscal resilience, the Legislature should consider rejecting a substantial portion of the Governor’s January spending proposals”

 

Senate President Pro Tem Toni Atkins and Senate Budget and Fiscal Committee Chair Nancy Skinner released an updated budget proposal April 28 that projects $65 billion in combined current-year and budget-year revenue above the amount forecasted in Governor Gavin Newsom’s most recent proposal.

The Governor is scheduled to unveil an updated plan by mid-May to account for recent spending and revenue changes.

 

Stay tuned for more important Budget updates and plays as this process moves forward.

CBPA Calendar 2022

Tuesday, June 7

CBPA Annual Board Meeting

Zoom


Postponed

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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