CBPA's California Legislative Update 02/07/2020
- SAVE PROP 13!
- CA PROPOSES RECORD SPENDING ON SCHOOLS
- NEW YEAR – NEW JOB KILLERS
- LLC – BROKER BILL PASSES ASSEMBLY
- COMMUNITY AIR PROTECTION PROGRAM INPUT SOUGHT
- CBPA 2020 CALENDAR
SAVE PROP 13!
The campaign to save Proposition 13 against being dismantled by the split roll property tax measure on the November 2020 ballot is gaining momentum and is signing-up more people and companies every day!
Are you doing what you can to protect yourself from an $11 BILLION yearly tax increase?
Click here to check out the new website, now known as "Save Prop 13," and join the effort.
The website is where you will find information about the benefits of Prop. 13 and how removing protections from commercial properties will have a massively negative impact on the state’s economy.
CA PROPOSES RECORD SPENDING ON SCHOOLS
In his budget proposal for the 2020-21 fiscal year, Governor Gavin Newsom proposes record-high spending of $77.1 billion on K-12 schools and higher education, a 75 percent increase from the $43.9 billion spent in 2011-12.
The Governor noted that per-pupil spending has increased more than $7,200 since 2011-12, with the state planning to spend $17,964 per student in 2020-21 with revenue from existing taxes.
California’s K-12 education and higher education would account for 50.4 percent of the state’s general fund budget under Newsom’s proposal.
According to the Governor’s website, this is the “Largest K-12 education per-pupil expenditure in history.”
With spending at record levels, our industry argues there is no reason to undo Proposition 13 with a split roll.
NEW YEAR – NEW JOB KILLERS
As proud members of the California Chamber of Commerce, we work closely with the organization on bills that impact our members. Each year we provide input on both the Job Killer and Job Creator lists.
Job Killers represent the worst-of-the-worse ideas that will harm the state’s economy and shrink employment. Already in 2020 two bills have been tagged as Job Killers, and one bill is left over from last year:
SB 850 (Leyva; D-Chino) Work Hours: Scheduling – The bill requires an employer, which includes a grocery store establishment, restaurant, or retail store establishment, to provide its employees with a 21-day work schedule at least 7 calendar days in advance. Among other provisions, the bill would require an employer, except as specified, to pay its employees modification pay for each previously scheduled shift that the employer cancels or moves to another date or time, for any previously unscheduled shift that the employer requires an employee to work, or for each on-call shift for which an employee is required to be available but is not called in to work that shift.
SB 850 is a job killer because it will eliminate flexibility in the workplace for both employers and employees, deny employees the opportunity to work additional hours if desired, limit employers’ ability to accommodate customer demands, and subject employers to unnecessary layers of penalties, investigative actions and costly litigation.
SB 873 (Jackson; D-Santa Barbara) Gender Discrimination: Pricing – The bill prohibits price differences for two substantially similar products that are intended for or marketed to different genders.
CalChamber has identified SB 873 as a job killer because it includes a private right of action with a minimum of $4,000 in damages per alleged violation, which will expose small and large businesses to a flurry of costly litigation for claims that two products are substantially similar, even though they may be different, and that any price differential is based on gender, when it is actually based upon legitimate non-gender related reasons.
AB 345 (Muratsuchi; D-Torrance) Oil and Gas Development Ban — Threatens to eliminate thousands of high paying California jobs, result in California importing even more foreign oil, and raise oil and gas prices by requiring the California Geologic Energy Management Division to adopt regulations with predisposed setback requirements for new and existing oil and gas wells. By pre-determining arbitrary setback requirements before the agency analyzes safety requirements during formal rule making, the bill politicizes and undermines the state agency responsible for managing oil and gas operations that would likely lead to significant and unnecessary increases in costs for all Californians.
LLC – BROKER BILL PASSES ASSEMBLY
On a bipartisan 56-0 vote, AB 687 (Daly; D-Anaheim) passed the California State Assembly. This bill will allow real estate brokers to incorporate as a limited liability company (LLC), in addition to a C or S corporation.
This is a measure that our industry has been pursuing for years, and the Department of Real Estate notes there is pent-up demand for this change in law, estimating more than 30,000 brokers would seek to incorporate as an LLC, which has become commonplace since first being introduced.
AB 687 updates the statute to reflect that evolution in the industry and allow brokers to operate as an LLC. Enabling brokerage firms to form as an LLC will allow greater flexibility in management and operations which will be particularly helpful for smaller firms.
AB 687 also will enable a savings of both time and costs for these firms as operating as an LLC means more streamlined entity reporting and filing requirements than a corporation.
Finally, AB 687 will simplify taxation at the entity level as gains and losses are passed through and taxation occurs at the individual owner level. Although Subchapter S corporations do offer the same income tax pass-through feature, limitations on number and types of owners and other restrictions make the Subchapter S vehicle less readily available.
The realtors have expressed concerns with several portions of the measure, and we hope to work with them to craft language that will allow the policy to move forward.
We thank Assemblymember Tom Daly from Anaheim for being our champion on this important policy change. The bill will next be heard in the Assembly Appropriations Committee next week.
COMMUNITY AIR PROTECTION PROGRAM INPUT SOUGHT
Assembly Bill 617 signed into law in 2017, directs the California Air Resources Board to establish the Community Air Protection Program. The program a community-focused action to reduce air pollution and improve public health in communities that experience disproportionate burdens from exposure to air pollutants.
On September 27, 2018, the Board selected ten communities for the first year of this program to implement community emissions reduction programs, community air monitoring, or both. At the same meeting, the Board also approved the “Community Air Protection Blueprint” (Blueprint), which contains detailed requirements for community emissions reduction programs, community air monitoring plans, and other elements of the Program.
CARB will conduct a public meeting in Fresno to consider the South Central Fresno Community Emissions Reduction Program. Businesses located in Fresno are sought to review the program, policies, and provide input to the board. Click here for more information.
CBPA 2020 CALENDAR
Wednesday, February 26
CBPA Winter Board Meeting
Cal Chamber, Sacramento
Thursday, April 2
CBPA Industrywide Legislative Meeting
Southern California
Tuesday-Wednesday, June 9-10
California Commercial Real Estate Summit
Cal Chamber, Sacramento
Thursday, November 5
CBPA Board Meeting & Industry Awards Dinner
The Renaissance Hotel, Newport Beach
