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


Weekly Update

April 22, 2022


New Weekly Platform

Happy Friday!

We have switched over to a new platform in hopes to better serve you and meet your needs.

While it is our first month sending it out here, please get back to us at rhime@cbpa.com if there are problems that arise, or any feedback you may have.

Hopefully this is a smooth transition, and we can continue to provide quality information out of Sacramento in a more reliable and modern fashion.

Thank you for your patience and constant enthusiasm for our industry.

Warehouse Bill Amended -

Remains a Goods Movement Disruptor

In a confusing Assembly Local Government hearing, AB 2840 (Reyes) was amended in committee which allowed the bill to move forward on a 5-1 vote, the bare-minimum needed to pass.


The amendments do not change the impact of the bill in any significant way. In addition to creating new statewide buffers in statute, the bill continues to mandate skilled & trained workforce requirements on all warehouse projects 100K s.f. and greater. We will work with our coalition partners, who submitted a formal opposition letter, to make sure they understand the severity of the negative impacts this bill will create and continue to vigorously oppose.


AB 2840 will still 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.


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.


This bill has our full focus and attention, and we hope to work closely with local affiliate member chapters and other impacted stakeholders to stop this bill again.


We expect the bill will next be heard on Wednesday, April 27, in the Assembly Housing and Community Development Committee. 

Trauma Kit Mandate -


AB 2260 (Rodriguez), a bill that when introduced, would have required certain building managers/property owners, including State-owned/leased buildings, to purchase, install, and provide training material on how to use a tourniquet meant for tactical combat casualty care and lacked liability protections for those mandated to install the kits was passed out of Assembly Judiciary Committee after taking amendments.

We have been working very diligently with the author and his office on this legislation addressing some of your major concerns with the bill, and we are happy to report that the amendments put into the bill fix liability issues that were identified.

We continue to keep a close eye on this legislation as it moves through the process and make sure that we keep your concerns heard, understood, and properly represented.

Stay tuned for more news on this bill.

Itemizing Parking Costs in Commercial Leases -


AB 2206 (Lee), a bill that would require the lessor of a nonresidential building located within a nonattainment area to itemize parking costs in all lease agreements if the tenants of the building are provided free parking passed out of Assembly Transportation Committee this week.


This legislation is trying to address the current cash-out parking program, but we believe this would place an unnecessary burden on commercial real estate companies while doing little to resolve any of the issues the cash-out program is faced with.

 In 2009, a bill similar to this was vetoed. At that time, the Governor signed SB 728 (Lowenthal) which clarified that either the California Air Resources Board or a local air district may enforce the existing parking cash-out law. There has been very little enforcement from the agencies since that time, and resources could be allocated to help with current enforcement mechanisms.


We are working diligently with the author’s office to address fixing the Cash Out Program without getting involved in your leases.

Stay tuned for more updates on this bills journey through the legislative process.

Legislation of Interest

This is the busiest time of year for the legislative calendar. There is a whole slew of bills we are working on your behalf apart from those discussed above. For a slightly more in depth look on bills we are tracking, read more below. Please follow the link to each piece of legislation that piques your interest, and any feedback would be greatly appreciated.

AB 1001 (Garcia) – Environment: mitigation measures for air quality impacts: environmental justice. OPPOSE

Requires facilities applying for a new or modified permit to prepare a duplicative environmental impact report, as well as requires Air Districts to pass new rules that would apply to a greatly expanded list of facilities. Unfortunately, this new permitting scheme and expansion of regulatory rules just passed a few years ago will greatly impact local businesses in certain areas at the expense of others.

AB 1710 (Lee) Residential and outdoor light-emitting diodes (LED) fixtures. OPPOSE

AB 1710 states the legislator’s intent to enact legislation relating to the regulation of residential and outdoor LED fixtures that create artificial light pollution at night, which “causes harmful environmental and public health effects.”

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, schools, and commercial buildings. Goes far beyond the EV standards adopted in December 2021.

AB 1771 (Ward) The California Housing Speculation Act: income taxes: capital gains: sale or exchange of qualified asset: housing. OPPOSE

           AB 1771 would, for taxable years beginning on or after January 1, 2023, impose a 25 percent tax on that portion of a qualified taxpayer’s net capital gain from the sale or exchange of residential real property. Apartment buildings would be exempt if at least 15 percent of the units on the property are affordable.

AB 1858 (Quirk-Silva) Substandard Buildings. OPPOSE

           AB 1858 extends existing inspections and code enforcement to any buildings used for human habitation, regardless of zoning, and creates tenant protections when buildings are deemed unsafe - asking for an amendment to make clear this only applies to buildings where an owner has a written agreement for a tenant to live in the building (exempting properties with unauthorized tenant use).

AB 1951 (Grayson) Sales and use tax: exemptions: manufacturing.

           Provides a state and local sales tax exemption for the purchase of manufacturing equipment. This exemption would transform the current, narrowly applied exemption, which has failed to effectively impact manufacturing investments and growth. Redeveloping the current exemption will encourage long-term capital investments and a push for new production which will fuel the manufacturing industry and mitigate substantial operating expenses.

AB 2065 (Rubio) Income taxes: net operating losses: businesses. SUPPORT

           Restores the net operating loss (NOL) for taxable years beginning on or after January 1, 2023. This bill would allow a business to apply their NOLs retroactively to 2020 and/or 2021 and recoup taxes paid in those years.

AB 2164 (Lee) Disability access: funding. SUPPORT

           Extends the $4 fee on business licenses that goes to the Certified Access Specialist (CASp) program which benefits both small businesses and customers by providing financial assistance to ensure facilities are accessible and will protect from frivolous ADA litigation.

AB 2438 (Friedman) Transportation funding: alignment with state plans and greenhouse gas emissions reduction standards. OPPOSE

Based on the premise that California must do more to get people out of their personal vehicles and into alternative modes of transportation, this bill attempts to leverage existing and already insufficient funding that is primarily intended to maintain, rehabilitate, and make safer our state highways, local streets and roads, bridges, and bicycle and pedestrian facilities for climate purposes.

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

To allow Neighborhood Electric Vehicle Signs in Westside Planned Communities.

AB 2811 (Bennett) California Building Standards Commission: recycled water: nonpotable water systems. OPPOSE

           This bill should be amended to direct the BSC to revisit the AB 2282 mandate and consider whether or not interior dual plumbing should be required in those areas already served by municipal recycled water or will be in the next ten years. Additionally, the bill needs to provide BSC with a CEQA exemption for this development and possible adoption process, otherwise the BSC will have to spend upwards of $750K to do an unnecessary analysis.

SB 1044 (Durazo) Employers: state of emergency or emergency condition: retaliation. OPPOSE

           Allows employees to leave work or refuse to show up to work if the employee subjectively feels unsafe regardless of existing health and safety standards or whether the employer has provided health and safety protections and subjects employers to costly Private Attorneys General Act (PAGA) lawsuits if they dispute the employee’s decision or need to have another employee take over any job duties. SB 1044 gives such broad discretion to employees that if they walk away from a completely safe workplace, the employer could do little in response without risking litigation.

SB 1292 (Stern) Land use: development restriction: fire hazard severity zones. OPPOSE

           Fire zone law that will stop building of any type in 80% of the state.

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.

California Commercial Real Estate Summit -

Mark Your Calendar

The California Commercial Real Estate Summit (CCRES) is coming up June 7 and 8 in Sacramento, California, so please mark your calendars!

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.

CCRES Agenda

Friday, June 3 and Monday, June 6

Zoom Legislative Briefing, 12:00pm

Tuesday, June 7

CBPA Board Meeting (Location TBD), 2:30 – 4:30pm

Reception at Prelude, 5:00 – 7:00pm

We are suggesting people plan dinners after on their own and will be sending out a list of a few recommendations for good eats.

Wednesday, June 8

Breakfast (Location TBD), 8:00am

Legislative Meetings, 9:00am – 12:00pm

Wrap Up Reception (Location TBD), 12:00pm

Information on hotel room blocks, registration and more details coming soon!

Stormwater Runoff Coalition

We are part of a large coalition voicing our significant concerns with the Statewide Construction Stormwater General Permit Proposal. There is a better way to protect water quality without putting a halt to projects throughout the State.

The current permit proposal would put thousands of projects in the State at risk for completion, including your development projects, utility infrastructure, transportation, housing, school construction and more.  

To read the current coalition letter voicing our concerns and see all involved parties, click here.

For more information on next steps in the process, click here.

CBPA Calendar 2022

Tuesday, June 7 – Wednesday, June 8

California Commercial Real Estate Summit and CBPA Annual Board Meeting



Tuesday, November 15

CBPA Board Meeting 



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

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

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