NAIOP San Francisco Bay Area Chapter: Latest News

CBPA's California Legislative Update 11/8/19

November 8, 2019 Filed under: Legislative News: California

CA BATTLES TRUMP ADMINISTRATION OVER LIGHT BULBS
EMPLOYER LAWS PASSED IN 2019 YOU MUST LEARN MORE ABOUT
AG’S BIASED TITLE AND SUMMARY FOR SPLIT ROLL SPARKS OUTRAGE
SPLIT ROLL PROPONENTS DECEIVING VOTERS FROM THE START
SF HOMELESS TAX DRIVES OUT MORE EMPLOYERS
CBPA MOURNS THE LOSS OF DENNIS MULLINS
LAST CHANCE! REGISTER NOW FOR THE STRATEGIC ISSUES CONFERENCE
CBPA 2019/2020 CALENDAR

CA BATTLES TRUMP ADMINISTRATION OVER LIGHT BULBS

“You look better with incandescent lights,” President Trump recently declared: “I always look orange. And so do you. The light is the worst,” he stated to underscore the point that strict light bulb regulations are costly and unnecessary.

If you manage a building in California, you have been complying with some of the strictest energy efficiency standards in the nation. Everything from light switches to window treatments are governed by State standards to eeek-out every bit of energy savings possible. These regulations have increased the cost of new building and tenant improvement, but in general we have accepted the march of progress because we as an industry are always looking for ways to decrease our number one building expense; and, its California, whaddaya gonna do?

The current administration is looking to relax some of the federal rules put in place by the outgoing Obama Administration. That order lengthened the list of lighting sources that must meet energy efficiency standards.

That rollback of standards is welcome by some in our industry while others believe the investments they have made into become as “green” as possible may be undercut the move. But, ultimately, we just need to know what the standards are, and be assured there is product available at a reasonable cost for our industry to meet them.

So, we are watching the latest battle between Attorney General Becerra and the Trump EPA very closely. Click here for a recent story about the lawsuit that 13 states have filed against the federal loosening of lightbulb regs

EMPLOYER LAWS PASSED IN 2019 YOU MUST LEARN MORE ABOUT

Our friend’s at Dentons have put together a list of laws that will come online in 2020 that you must understand if you are an employer:

“The 2019 California Legislative year has officially come to a close. Not surprisingly, there are dozens of new employment laws hitting the books on January 1, 2020. Below we highlight 10 new laws, and provide key takeaways for covered employers as we inch closer to the new year.”

The article reviews 10 employment laws that will impact your business whether you have one employee or 10,000, and provides the following “key takeaways for employers:”

Takeaway #1 - Audit your independent contractor relationships now

AB 5 applies retroactively to certain claims. It’s critical for employers to audit existing independent contractor arrangements to determine whether any exception may also be applied retroactively. Misclassification carries significant penalties and consequences.

Takeaway #2 - Prepare job applicant / employee / independent contractor notices

If covered under the CCPA, employers will need to ensure they have adequate notices provided to job applicants, employees, and independent contractors. This may include notices on job posting websites (e.g., LinkedIn, Indeed), within employee databases (e.g., Dayforce) or within independent contractor agreements.

Takeaway #3 - Audit severance / employment agreements

Employers should ensure their standard severance agreements do not include a “no rehire” provision, and should ensure employment agreements do not include a FEHA / Labor Code arbitration provision.

Takeaway #4 - Audit harassment training

Employers should ensure they are providing the legally mandated anti-harassment / discrimination training by the new deadline. Employers should also ensure their training is expanded to include the new hairstyle protections and lactation accommodations.

Takeaway #5 - Audit pay practices

With the minimum wage increasing, and AB 5 making many former independent contractors employees, now is a good time to audit pay practices to ensure classifications are up-to-date, meal and rest periods are being paid properly, wage statements are accurate and include all requirement substantive elements, and that exempt employees will be paid the salary minimum in the applicable jurisdiction effective 2020.

Click here to read the full article and see all the bills and recommendations.

AG’S BIASED TITLE AND SUMMARY FOR SPLIT ROLL SPARKS OUTRAGE

The San Diego Union-Tribune published a scathing editorial opposing California Attorney General Xavier Becerra's biased title and summary for the split-roll measure.

According to leadership at Californian’s to Stop Higher Property Taxes, the biased wording gives the proponents an unfair advantage at passing their $12.5 billion-a-year property tax increase.

The measure received its title and summary last week, sparking outrage across the state for the blatant misrepresentation in what is supposed to be a nonpartisan, impartial analysis for voters.

Proponents of the split-roll property tax hike are now collecting signatures to qualify the measure for the November 3, 2020, ballot. The editorial states:

The union-led Schools & Communities First coalition has moved to scrap its original planned 2020 initiative that would require commercial and industrial properties to be taxed at their present value, ending the Proposition 13 protection that their property taxes can go up no more than 2% each year. Now the coalition has launched a revised version that’s friendlier to small businesses but still creates a “split roll” allowing the collection of as much as $12 billion in new annual tax revenue from commercial and industrial properties.

The ballot summary that Attorney General Xavier Becerra approved for the original measure starts off by citing how it would affect such properties, then explores how the increased revenue would be used. The far vaguer new summary focuses on the benefits to public schools, community colleges and local governments from “changing” property taxes.

Read the full editorial by clicking here and share with all your friends and colleagues!

Learn more about how to fight the attempt to raise your property taxes at Californian’s to Stop Higher Property Taxes. You can help by donating to your defense by clicking here.

SPLIT ROLL PROPONENTS DECEIVING VOTERS FROM THE START

Proponents of the flawed $12.5 billion a year split-roll property tax measure have begun gathering signatures for their second, equally flawed split-roll property tax measure, which, if passed, will be the LARGEST TAX INCREASE IN CALIFORNIA HISTORY.

The campaign, desperate for support, is deceiving voters as signature gathers are telling them that the measure “will protect Prop 13” – the exact opposite of the measure’s intended purpose.

This comes after a September poll by the Public Policy Institute of California (PPIC) found that only 47 percent of likely voters support a split-roll property tax, but 64 percent of likely voters support Prop 13.

“This $12.5 billion a year property tax increase will hurt the pocketbooks of seniors living on fixed-incomes, hardworking families, and all Californians. Ultimately, the split-roll property tax will drive up the cost of living in one of the most expensive states in the country and make life even more difficult for those already struggling to get by,” said Deborah Howard, Board Member of the California Senior Advocates League. “California already has the highest percentage of population living in poverty. Destroying Prop 13 will put more families in jeopardy.”

Don’t be fooled by the deceiving nature of this campaign. The purpose of this measure is to break up Proposition 13 benefits by going after commercial properties first. Residential properties are next.

Learn more about how to fight the attempt to raise your property taxes at Californian’s to Stop Higher Property Taxes. You can help by donating to your defense by clicking here.

SF HOMELESS TAX DRIVES OUT MORE EMPLOYERS

San Francisco businesses were recently hit with another massive tax, this one to benefit homeless programs. This after anther tax on commercial property barely passed and is caught up in lawsuits. The high taxation and questionable policies that are potentially exacerbating the problems of the beautiful City by the Bay, may finally be driving economic decisions of major employers.

Earlier this year S.F. lost pharmaceutical giant McKesson Corp. - one of its biggest grossing companies - to Texas. Now, Stripe, a financial software company has announced its moving to neighboring South San Francisco – they still get the beautiful weather and location, but will have far fewer taxes. Both companies cited Measure C, the “Homeless Tax” as part of the decision to move.

As we have seen recently in the statewide discussion on dismantling Prop. 13, major employers will make decisions that impact jobs on the economy, and will pick up and move, when the tax burden becomes too much to bear.

Click here for a story on the S.F. exodus and what is driving it.

CBPA MOURNS THE LOSS OF DENNIS MULLINS

“Business is the cornerstone of California’s greatness,” said Dennis Mullins, in 2002 when he was serving as Chairman of the Board of CBPA. “Recognizing its importance in the relationship between state government, local government, the environment and California’s future is one thing, actively pursuing issues that will bring these factors together is another.”

Today CBPA members, mourn his passing at the young age of 67.

Dennis was a Kern County attorney known as someone with a generous heart and as a determined advocate for his clients and issues he cared about.

Rex Hime, President and CEO of CBPA, stated, “Dennis was a great leader of our association. He focused our attention on extremely important issues impacting California – such as stewarding groundwater supplies much better – in a manner that brought resource conservation into the growth discussion from a business leader’s point of view. He had credibility on issues and helped lead the commercial real estate industry forward in a time of great transition.”

Several CBPA members have reached out with touching remembrances of Dennis, and we present this story from his hometown newspaper to honor and remember him. Click here to read the article.

LAST CHANCE! REGISTER NOW FOR THE STRATEGIC ISSUES CONFERENCE

The 2019 Strategic Issues Conference is just around the corner! This year’s conference is being held at the recently renovated Embassy Suites in Napa, California on December 5-6.

The goal of the Strategic Issues Conference is to increase public policy and political awareness of state and national issues, and to foster collaborative efforts among business leaders from all sectors of the California economy.

Ten major business groups have come together to host an event you don’t want to miss! California Business Properties Association (CBPA), American Council for Engineering Companies (ACEC), Building Owners and Managers of California (BOMA CAL), California Alliance for Jobs (CAJ), California Building Industry Association (CBIA), California Business Roundtable (CBRT), California Manufacturers & Technology Association (CMTA), California Retailers Association (CRA), NAIOP, Commercial Real Estate Development Association (NAIOP), National Federation of Independent Business (NFIB) and Retail Industry Leaders Association (RILA).

CLICK HERE to register now. For more information on this exciting event CLICK HERE.

For hotel accommodations, please contact the Embassy Suite, Napa Valley directly at 707-253-9540.

We hope to see you in December!

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