CBPA's California Legislative Update 2/15/19
- 2020 SPLIT ROLL MEASURE MUST BE DEFEATED
- MORE REAL GROUPS SUPPORT HIME FOR SENATE
- SUPPORT FOR RENTER RELIF MEASURE
- CSLB URGED TO CLARIFY WHO CAN INSTALL BATTERY ENERGY STORAGE
- TEJON RANCH AND MAJESTIC LAND MAJOR DISTRIBUTION CENTER
- COMMERCIAL ENERGY CODE WORK BEGINS
- CBSC LAUNCHES NEW WEBSITE
- CBPA 2019 CALENDAR
2020 SPLIT ROLL MEASURE MUST BE DEFEATED
Rex S. Hime, President & CEO California Business Properties Association, has penned the following op/ed regarding the ongoing battle to protect Proposition 13. You are highly encouraged to share this article and/or run it in your own publications:
Proposition 13 has been protecting taxpayers in California since 1978. This measure created by Howard Jarvis is one of the only protections that you have against unimpeded increased in your property taxes – and now it is under serious threat.
Californians are some of the most heavily tax-burdened in the country. Now, special interests want to raise taxes by another $11 billion through this measure, despite record-high revenue, record-high per-pupil spending and $17 billion in budget reserves. A split roll property tax increase isn’t needed and will just make it more difficult to do business in California.
For years public employee unions and far-left wing advocacy groups have wanted to dismantle Proposition 13 in hopes of increasing your taxes to increase revenue for their members and pet spending projects. Those groups have gathered enough signatures to place a measure on the ballot in November 2020.
One of the ONLY protections property owners in this state has is under serious threat and for thirty years – and now -- I remain one of the primary people standing to fight back against this outrageous tax increase.
Under the 2020 proposal, Prop. 13 will be undone by mandating that all non-residential properties be reassessed to 2020 values and be reassessed every three years thereafter. Commercial property will lose certainty about future tax liabilities and one can only imagine the impact and cost to long time property owners that will see massive adjustments.
The proponents of this effort have stated that dismantling Prop 13 will result in an $11 billion tax increase on California’s property owners and employers.
Aside from the direct impact on properties, the State’s own Legislative Analyst’s office has warned that the proposal will introduce volatility into the state’s funding stream that puts everything from school funding to support and health programs for the elderly at risk.
Property taxes have been a reliably predictable revenue source for the state since prop 13 passed which allows for some predictability in budgeting and a reliable revenue stream. The greediness of those that want to transfer property tax revenue to their own pockets threatens a system that has worked for more than 40 years!
As one of the longest standing taxpayer advocates in the state, I am coordinating an effort by taxpayer advocates and business groups alike to implement a statewide strategy and defeat this measure. The campaign will be very costly and will take the efforts of many, but the costs of this tax are much greater. Split roll inflicts a mortal wound on Prop 13 protections for all property owners and must be stopped.
Rex S. Hime has been protecting CA taxpayers his entire career. He has served as the President & CEO of California Business Properties Association for 35 years.
MORE REAL GROUPS SUPPORT HIME FOR SENATE
Two more major commercial real estate groups have endorsed Rex Hime for Senate supporting the long-time advocate for the many small businesses that make up this industry.
AIR Commercial Real Estate is an innovative, member-owned platform that provides commercial real estate professionals with tools they need to be successful providing a system of market research listing services, contracts and legal resources, and ongoing education. AIR CRE has hailed Rex’s work for his years of fighting for Proposition 13, stopping split roll property tax, and being the major force beating back and effort to upend the real estate industry by banning dual agency status.
AIR CRE joins the other major statewide groups, Building Owners and Managers Association of California (BOMA California) and NAIOP California along with several NAIOP Chapters, in a strong show of support for their longtime advocate.
Rex S. Hime who has been the primary force in California advocating on behalf of California taxpayers who own commercial, industrial, and/or retail private property for over 35 years in his role as President and CEO of California Business Properties Association has answered the call of public service and filed paperwork to fill the seat of the district he has lived in for decades.
Rex has long talked about the importance of people from within the commercial real estate industry stepping-up and getting involved in elective politics. He is putting those words into action.
Former-Governor Pete Wilson, and the Founder and President of the National Tax Limitation Committee Lew Uhler, are serving as Rex’s Campaign Chairs. Rex has also quickly garnered many endorsements including two former Senators who previously held the seat, Senator Tim Leslie (ret.) and current Congressmember John Doolittle.
Senate District 1 is a massive district stretching all the way from the Eastern part of Sacramento County, to Lake Tahoe, then all the way up to the Oregon border stretching to the middle of the State and back down. The district is known as one of the most conservative areas of the state.
For more information about Rex’s run for California Senate District 1 click here REX HIME FOR SENATE
GO REX GO!
SUPPORT FOR RENTER RELIF MEASURE
We have moved quickly to support a measure that will provide some relief to our state’s 2.4 million renters. SB 248 jointly introduced by Assemblymember Lorena Gonzalez (D-San Diego) and Senator Steven Glazer (D-Orinda) would expand and reform California’s renter’s credit for the first time in 40 years.
“The housing crisis in California must be addressed and this is just one of many reforms we should enact to help our fellow citizens. We must also look at other solutions to increase our housing supply which is the only way to truly bring down costs in the long term,” state Rex Hime, president and CEO of the California Business Properties Association.
Currently, eligible renters can qualify for $60 for single filers or $120 for married filers to offset their tax liabilities. There are 1.7 million renters who file for this tax credit now; under this legislation, 2.4 million renters would benefit.
CSLB URGED TO CLARIFY WHO CAN INSTALL BATTERY ENERGY STORAGE
Battery energy storage systems are rapidly expanding and being installed in schools, hospitals, businesses and homes throughout the state. Battery storage is a key technology to help California meet our clean energy and emissions reduction goals and expand the adoption of solar, wind, and other clean energy sources.
The Contractors State License Board’s (CSLB) primary mission is to protect consumers and the public. If not installed correctly by highly-qualified and licensed electrical contractors, battery energy storage systems pose unique fire, electrical, and public safety risks to installers, consumers, utility workers, and emergency personnel.
Ambiguity in the regulations has allowed C-46 solar contractor licensees to install battery energy storage systems when paired with a solar photovoltaic (PV) system, even though these battery energy storage systems are separate electrical systems and the C-46 solar contractors do not have the electrical training or expertise required.
The CSLB is currently working to clarify who can install these systems and our industry is urging that only licensed C-10 Electrical Contractors qualify for this work. Safe installation of battery energy storage systems by qualified electrical contractors and electricians is key to protecting public safety and we are concerned the CSLB get this right to protect our tenants and our buildings from a contractor taking on work that they are not fully qualified to do.
Click here to take action!
TEJON RANCH AND MAJESTIC LAND MAJOR DISTRIBUTION CENTER
Tejon Ranch announced that it has agreed to terms on a lease with a company that will relocate its western US distribution operations from the Los Angeles area to the Tejon Ranch Commerce Center (TRCC) in the fourth quarter of this year. The company, which wishes to remain anonymous for the time being due to competitive reasons, will occupy approximately 390,000 square feet of space in a new 580,000-square-foot building TRC is developing in partnership with Majestic Realty Co.
The new building represents the third partnership between TRC and Majestic Realty. Construction has commenced, and the building will be ready for occupancy in approximately eight months.
"This decision to move its western distribution warehouse from the Los Angeles area to TRCC underscores Tejon Ranch's value as a proven and opportune place for companies wanting to locate and/or expand in California," said Joseph N. Rentfro, executive vice president of real estate at Tejon Ranch Co. "Coming on the heels of L'Oréal USA's decision last fall to move its professional salon distribution subsidiary, SalonCentric, from its Valencia facility to Tejon, it reinforces our location as a place where companies find great value in our compelling logistics model, our outstanding labor force, and where they have opportunity to grow and expand."
"Majestic Realty is extremely pleased the partnership has been able to pre-lease a large portion of the new building we're developing in partnership with Tejon Ranch Co.," said Brett Tremaine, senior vice president at Majestic Realty Co.
"Working in Tejon Ranch, the time required to deliver a building ready for occupancy is as efficient and expeditious a process as you'll find anywhere in the state, and perhaps the country. And with L'Oréal, and now a second company moving up from Los Angeles, we believe many more companies currently located in the Los Angeles basin will want to avail themselves of the Tejon Ranch Commerce Center's strategic
COMMERCIAL ENERGY CODE WORK BEGINS
The California Energy Commission will begin work on the 2023 Standards next week, kicking off with a meeting of representatives from Industry and other stakeholders. 2023 is not a misprint.
The California Energy Commission has already kicked off the development of the next set of energy efficiency building standards and if they stay on track, this set of regulations will take effect on 1/1/23.
On Monday, CEC staff will meet with CBPA, BOMA, NAIOP, ICSC, IREM and CBIA staff to summarize the issues that will be addressed in the forthcoming rulemaking.
In spring of last year, the CEC adopted the nation’s first solar mandate for low-rise residential construction and that will take effect in January of 2020. For the 2023 standards, the CEC has already indicated their primary attention will focus on high-rise residential, commercial buildings and the existing building stock. Related topics will be covered at CEC workshops scheduled to take place from June 2019 – March of 2020.
This will have a huge impact on your new construction and tenant improvements. We are asking our members to identify experts – and funding for technical work – to help with this work. Updates will be provided as proposed changes begin to take shape.
CBSC LAUNCHES NEW WEBSITE
The California Building Standards Commission (CBSC) launched a new website to a more modern and intuitive format and is also being updated to better serve you.
The new CBSC website address is https://www.dgs.ca.gov/bsc.
The content from their current website has been migrated and integrated with all the new information. California’s building codes are some of the most complex in the nation and being able to quickly understand what is required when you build, and plan tenant improvements is essential to managing your properties.
CBPA 2019 CALENDAR
February 27, 2019
CBPA Winter Board Meeting & New Legislators Luncheon
CalChamber, Sacramento
March 28, 2019
CBPA Industrywide Leg Meeting
June 11 – 12, 2019
California Commercial Real Estate Summit
Sacramento
December 5 – 6, 2019
Strategic Issues Conference
Napa Valley
