CBPA's California Legislative Update 10/4/19
- LEGISLATIVE BILL WATCH
- GOVERNOR’S SIGNING MESSAGE ON AB 5
- GOVERNOR’S VETO MESSAGE ON AB 394
- GOVERNOR’S VETO MESSAGE ON SB 1
- LACTATION ROOM BILL SENT TO GOVERNOR
- RENT CAP / “JUST CAUSE” BILL SENT TO GOVENOR
- GOVERNOR WARNS “BOOM IS OVER”
- CBPA 2018/2019 CALENDAR
LEGISLATIVE BILL WATCH
The Governor has one week left to sign or veto all the bills on his desk. Below is a summary of bills that we are focused on that impact the commercial, industrial, and retail real estate sectors, during the final two weeks of the 2019 Session. The Governor has until Midnight on October 13 to sign or veto measures on his Desk.
AB 5 (Gonzalez D) Worker status: employees and independent contractors.
Summary: Addresses the Dynamex Court case on independent contractors. Amendments exempting commercial real estate brokers and brokerage firms are in the bill. Negotiating final amendments regarding business-to-business transactions and other technical issues.
Position: SUPPORT – SIGNED BY GOVERNOR (See Gov’s message below).
AB 51 (Gonzalez D) Employment discrimination: enforcement.
Summary: Prohibits arbitration agreements as a condition of employment.
Position: OPPOSE – ON GOVERNOR’S DESK AWAITING SIGNATURE/VETO
AB 170 (Gonzalez D) Employment: harassment: liability.
Summary: Increases the amount of time employers can be sued and sets new standards for liability of sexual harassment in the workplace. Will increase litigation.
Position: OPPOSE – SIGNED BY GOVERNOR
AB 394 (Obernolte R) CEQA: exemption: egress route projects: fire
Summary: Allows certain roads damaged by fires to be rebuilt faster.
Position: SUPPORT – VETOED BY GOVERNOR (See Gov’s message below)
AB 485 (Medina D) Local government: economic development subsidies.
Summary: Requires local governments to receive comprehensive information about warehouse projects prior to releasing economic development incentives.
Position: OPPOSE – ON GOVERNOR’S DESK AWAITING SIGNATURE/VETO
AB 520 (Kalra D) Public works: public subsidy.
Summary: Defines “public works” to include a project that receives a de minimis public subsidy less than $500,000 and 2% of the total project cost.
Position: OPPOSE – ON GOVERNOR’S DESK AWAITING SIGNATURE/VETO
AB 547 (Gonzalez D) Janitorial workers: sexual violence and harassment prevention training.
Summary: Requires Janitorial Companies to provide specified training on sexual violence and harassment prevention.
Position: NEUTRAL. Negotiated AMENDEMENTS. – ON GOVERNOR’S DESK AWAITING SIGNATURE/VETO
AB 684 (Levine D) Building standards: electric vehicle charging infrastructure.
Summary: requires the state to propose building standards for the installation of electric vehicle (EV) charging infrastructure for parking spaces for existing multifamily and non-residential developments.
Position: NEUTRAL. Assured bill doesn’t create a mandate or put building code in statute.
AB 729 (Chu D) Carpet recycling: carpet stewardship.
Summary: Triples the carpet recycling fee.
Position: OPPOSE – ON GOVERNOR’S DESK AWAITING SIGNATURE/VETO
Summary: Allows local governments to get into lending which would destabilize banking through introducing non-fiscal requirements for loans.
Position: OPPOSE – SIGNED BY GOVEROR
AB 1066 (Gonzalez D) Unemployment insurance: trade disputes: eligibility for benefits.
Summary: Would allow striking workers to receive unemployment checks.
Position: OPPOSE – FAILED TO PASS LEGISLATURE.
AB 1026 (Wood D) Electricity: interconnection rules.
Summary: Extends utility connectivity permits for to 18 months following the date the application for a new extension of service project is approved.
Position: SUPPORT – SIGNED BY GOVERNOR
AB 1080 (Gonzalez D) California Circular Economy and Plastic Pollution Reduction Act.
Summary: Would enact the California Circular Economy and Plastic Pollution Reduction Act, increasing fees and responsibilities of property owners to recycle and compost.
Position: OPPOSE – FAILED TO PASS LEGISLATURE.
AB 1100 (Kamlager-Dove D) Electric vehicles: parking requirements.
Summary: Allows EV parking space to be counted as at least one standard automobile parking space for the purpose of complying with any local minimum parking requirements.
Position: SUPPORT – ON GOVERNOR’S DESK AWAITING SIGNATURE/VETO
AB 1188 (Gabriel D) Dwelling units: persons at risk of homelessness.
Summary: Puts requirements on residential landlords to allow tenant to allow people not on the lease to stay in dwelling.
Position: OPPOSE – SIGNED BY GOVERNOR
AB 1281 (Chau D) Privacy: facial recognition technology: disclosure.
Summary: Requires a business in California that uses facial recognition technology to disclose that usage in a physical sign that is clear and conspicuous at the entrance of every location.
Position: OPPOSE – FAILED TO PASS LEGISLATURE.
AB 1478 (Carrillo D) Employment discrimination.
Summary: Creates a private cause of action against an employer for disputes regarding the right under the law to time off or reasonable accommodations to deal with issues such as jury service or related to being a victim of domestic violence, sexual assault, or stalking.
Position: OPPOSE – ON GOVERNOR’S DESK AWAITING SIGNATURE/VETO
AB 1482 (Chiu D) Tenancy: rent caps.
Summary: Imposes a 5% plus inflation residential rent cap and codifies “just cause” eviction requirements.
Position: OPPOSE UNLESS AMENDED – ON GOVERNOR’S DESK AWAITING SIGNATURE/VETO
ACA 1 (Aguiar-Curry D) Local government financing: affordable housing and public infrastructure: voter approval.
Summary: Lowers the vote threshold for raising local taxes to 55%.
Position: OPPOSE – FAILED ON THE FLOOR
SB 1 (Atkins D) California Environmental, Public Health, and Workers Defense Act of 2019.
Summary: Require agencies to take prescribed actions regarding certain federal requirements and standards pertaining to air, water, and protected species.
Position: OPPOSE. – VETOED BY GOVERNOR (See Gov’s message below).
SB 5 (Beall D) Affordable Housing and Community Development Investment Program.
Summary: Makes changes to the Enhanced Infrastructure Finance District (EIFD) law and Redevelopment 2.0. Makes it easier for local district to set up Tax Increment Financing for infrastructure.
Position: NEUTRAL. Worked to protect against unnecessary tax increases. – ON GOVERNOR’S DESK AWAITING SIGNATURE/VETO
SB 44 (Skinner D) Medium- and heavy-duty vehicles: comprehensive strategy.
Summary: Requires the Air Resources Board (ARB) to update its 2016 mobile source strategy to include a comprehensive strategy for the deployment of medium- and heavy-duty vehicles in the state.
Position: SUPPORT – ON GOVERNOR’S DESK AWAITING SIGNATURE/VETO
SB 54 (Allen D) California Circular Economy and Plastic Pollution Reduction Act.
Summary: Enacts the law to achieve a 75% reduction in single-use packaging and priority single-use plastic products by 2030. Puts onerous requirements on property owners and businesses.
Position: OPPOSE – FAILED TO PASS LEGISLATURE.
SB 127 (Wiener D) Transportation funding: active transportation: complete streets.
Summary: Requires CalTrans to design bicycle and pedestrian facilities on all projects the state undertakes. Estimated cost is in the billions to the state.
Position: OPPOSE – ON GOVERNOR’S DESK AWAITING SIGNATURE/VETO
SB 142 (Wiener D) Employees: lactation accommodation.
Summary: Expands current lactation accommodation mandates for employers and requires the Building Standards Commission to design a guidance document. We negotiated significant amendments to this bill, including removing the mandatory building code provisions, however the employer requirements are onerous and expensive and increases potential for lawsuits.
Position: OPPOSE – ON GOVERNOR’S DESK AWAITING SIGNATURE/VETO
SB 190 (Dodd D) Fire safety: building standards: defensible space program.
Summary: Requires the Office of the State Fire Marshal to develop, in consultation with our industry, a model defensible space program to reduce threat of wildfire.
Position: SUPPORT – SIGNED BY GOVERNOR
SB 330 (Skinner D) Housing Crisis Act of 2019. Temporarily bans cities from imposing a moratorium on new housing construction, prohibits changing zoning law to prevent denser housing like apartment buildings, and prevents cities from raising fees during the development approval process.
Position: SUPPORT – ON GOVERNOR’S DESK AWAITING SIGNATURE/VETO
SB 451 (Atkins D) Rehabilitation of certified historic structures.
Summary: Creates a tax credit for the rehabilitation of certain certified historic structures.
Position: SUPPORT – ON GOVERNOR’S DESK AWAITING SIGNATURE/VETO
SB 531 (Glazer D) Local agencies: retailers.
Summary: Prohibits local agencies from entering into certain economic development agreements with companies for locating in the local jurisdiction.
Position: OPPOSE – ON GOVERNOR’S DESK AWAITING SIGNATURE/VETO
SB 638 (Allen D) Leases: electric vehicle charging stations: insurance coverage.
Summary: Enables installation of EV chargers by removing the requirement to obtain a general liability insurance policy and instead require personal liability coverage
Position: NEUTRAL. Assured bill stayed focused on past agreements. – ON GOVERNOR’S DESK AWAITING SIGNATURE/VETO
SCA 5 (Hill D) Taxation: school districts: parcel tax.
Summary: Lowers voter threshold to 55% on certain local taxes.
Position: OPPOSE – FAILED TO PASS LEGISLATURE.
GOVERNOR’S SIGNING MESSAGE ON AB 5
“To Members of the California Assembly: Assembly Bill 5 is landmark legislation for workers and our economy. It will help reduce worker misclassification-workers being wrongly classified as ‘independent contractors,’ rather than employees, which erodes basic worker protections like the minimum wage, paid sick days and health insurance benefits. The hollowing out of our middle-class has been 40 years in the making, and the need to create lasting economic security for our workforce demands action.
“Assembly Bill 5 is an important step. A next step is creating pathways for more workers to form a union, collectively bargain to earn more, and have a stronger voice at work -- all while preserving flexibility and innovation. In this spirit, I will convene leaders from the Legislature, the labor movement and the business community to support innovation and a more inclusive economy by stepping in where the federal government has fallen short and granting workers excluded from the National Labor Relations Act the right to organize and collectively bargain.
“Sincerely, GOVERNOR GAVIN NEWSOM”
GOVERNOR’S VETO MESSAGE ON AB 394
"To the Members of the California State Assembly: I am returning Assembly Bill 394 without my signature. This bill exempts from the California Environmental Quality Act (CEQA), until January 1, 2025, egress route projects or activities undertaken by a public agency. The affected projects include those that are specifically recommended by the State Board of Forestry and Fire Protection to improve the fire safety of an existing subdivision when certain conditions are met.
"California's devastating wildfires of 2017 and 2018 amplified the urgent imperative to mitigate risk and build robust community emergency plans, especially for our most vulnerable in the Wildland-Urban Interface (MI). However, the CEQA exemption provided in this bill is premature and may result in unintended consequences. Without better information on the number, location and potential impacts of future fire safety road construction projects, it is not clear whether statutory changes are needed. Furthermore, it is important that we build solutions around the unique and targeted needs of each community.
“Sincerely, GOVERNOR GAVIN NEWSOM”
GOVERNOR’S VETO MESSAGE ON SB 1
“To the Members of the California State Senate: I am returning Senate Bill 1 without my signature. This bill would enact the California Environmental, Public Health, and Workers Defense Act of 2019 with the intent of ensuring that protections afforded under federal environmental and labor laws and regulations as of January 2017, could remain in place in the event of federal regulatory changes. California is a leader in the fight for resource, environmental, and worker protections. Since 2017, the federal government has repeatedly tried to override and invalidate those protections, and each time, the state has aggressively countered - taking immediate legal action and deploying every tool at the state's disposal to safeguard our natural resources, environmental protections and workers. No other state has fought harder to defeat Trump's environmental policies, and that will continue to be the case. While I disagree about the efficacy and necessity of Senate Bill 1, I look forward to working with the Legislature in our shared fight against the weakening of California's environmental and worker protections.”
“Sincerely, GOVERNOR GAVIN NEWSOM”
The veto of this bill has surprised some. Click here to read about it.
LACTATION ROOM BILL SENT TO GOVERNOR
On A 57-13 vote in the Assembly, and then a 28-11 vote in the Senate, the amended bill dealing with lactation rooms in workplaces has been sent to Governor Gavin Newsom.
SB 142 (Weiner; D-San Francisco) initially sought to require lactation rooms in all buildings, was amended twice in the last two weeks to take the building code provisions out of the bill. While this is an improvement to the bill, we have remained opposed to the bill in light of the fact that that AB 1976 (Limon; D-Santa Barbara) was just signed last year and was substantially similar; we have specifically objected to the fact that this bill seeks additional employer mandates that create potential for PAGA lawsuits, labor issues regarding meal and rest breaks, and has no “safe harbor” provisions for workplaces that cannot accommodate a lactation space due to size or safety issues.
An interesting note is that the Governor’s Department of Finance, agreed with us about cost estimates on the bill and released an analysis stating it would cost the state millions of dollars to comply with construction costs in state buildings. DOF estimates a cost of $149,000 in each impacted state building and it seems the argument prevailed; while it estimated $50,000 in private buildings.
The Governor has until October 13 to sign or veto the measure.
RENT CAP / “JUST CAUSE” BILL SENT TO GOVENOR
A bill that seeks to bring residential rent caps to California, AB 1482 (Chiu; D-San Francisco), passed the Senate 25-10, and then passed the Assembly 48-25. A “grand deal” between the Governor and supporters of the bill came together several weeks ago which all but guaranteed passage of the controversial measure.
This bill has been a top priority for us to defeat. However, the deal points with the Governor has pushed many of our allied opposing groups accept the compromise language. The new bill did make several adjustments to the Just Cause Eviction issue we had been asking for which made the bill tolerable for many of our members. However we, do not support the idea of rent control nor making it harder to evict problem tenants.
The Governor has until October 13 to sign the bill, which he has stated he will do.
GOVERNOR WARNS “BOOM IS OVER”
Governor Gavin Newsom has warned that his administration sees signs that the longest-ever period of economic growth in the history of California is winding down. The Governor and his staff are preparing the 2020-21 State Budget, due for release in January. Click here to read more about where his Department of Finance thinks our economy will be.
CBPA 2019/2020 CALENDAR
2019
Thursday-Friday, December 5-6
Strategic Issues Conference
Embassy Suites Napa Valley
2020
Wednesday, February 26
CBPA Winter Board Meeting
CalChamber, Sacramento
Thursday, April 2
CBPA’s Industry-Wide Legislative Committee Meeting
Southern California
Tuesday-Wednesday, June 9-10
California Commercial Real Estate Summit
& Annual Meeting
CalChamber, Sacramento
Thursday, October 22
Industry Awards Dinner
The Renaissance Hotel, Newport Beach
