CBPA's California Legislative Update 3/11/2022
- CA BUSINESS COMMUNITY’S BUDGET AND POLICY PRIORITIES
- COMPREHENSIVE CEQA REFORM – NOT JUST EXEMPTIONS
- $190B PROPOSED IN HIGHER TAXES AND FEES
- TAXING HOUSING INVESTORS
- REDUCING NATURAL GAS LEADS TO BLACKOUTS
- INDUSTRY AWARDS DINNER & CBPA’S 50TH – 2 WEEKS AWAY!
- CBPA 2022 CALENDAR
CA BUSINESS COMMUNITY’S BUDGET AND POLICY PRIORITIES
A new group of California statewide, regional, and local business groups have come together to announce budget and statewide priorities for the Governor and State Legislature.
CBPA is a founding member of the group that is comprised of CEOs from each of the member organizations, along with California Business Roundtable, CBIA, CalChamber, California Retailers Association and regional groups such as the Southern California Leadership Council, Los Angeles BizFed, L.A. Chamber, Orange County Business Council, and more.
Although we support several issues being addressed in the proposed budget already, such as tax credits to businesses working to recover, helping those industries hit the hardest during the pandemic, and investments in addressing organized retail crime along with the goods movement crisis, we hope the Governor and Legislature will go further as the state has an unprecedented surplus, and address these critical issues:
- Unemployment Insurance Fund debt eclipses any proposed relief for business community
- Business support for ongoing COVID-19 mitigation lacking
- Addressing School Facility Funding
- Working together to transition to an Endemic Economy
These issues can be tackled due to a surplus that is significantly higher than estimated. While the State may be fiscally healthy, that does not reflect the economic prosperity of families and small businesses in California needing assistance.
We look forward to collaborating with the Governor and Legislature to craft a budget that helps the business community build the world leading economy in California promoting opportunity for all in this State.
To read the full letter, CLICK HERE.
COMPREHENSIVE CEQA REFORM – NOT JUST EXEMPTIONS
With more housing desperately needed in California, many believe CEQA reform is a key part of the solution. Politico published a Q&A with Senator Wiener on a battle stemmed from a UC Berkeley enrollment issue and more housing for students.
In the piece, Senator Wiener who authored a bill to exempt most student and faculty housing from CEQA review stated,
“CEQA is an incredibly important law in terms of environmental protection and making sure that we’re analyzing projects that may actually harm the environment, such as building a new dam or expanding a highway. Unfortunately, CEQA, through court interpretation and otherwise, has exponentially grown since it was adopted 50 years ago and at this point, CEQA is the law that swallowed California.”
Senator Wiener continued,
“It applies to everything that gives obstructionists and NIMBYs (short for “not in my backyard”) opportunities to delay, obstruct or kill projects that are environmentally friendly. We see CEQA being used to stop bike lanes, to delay or stop public transportation projects, to delay or stop infill housing being built in job centers and near transit. And here we see it being used to stop the education of students, to stop the building of campus student housing, which is inherently climate friendly.”
CEQA reform is necessary to keep up with the housing needs of California, and reform – not just exemptions for specific projects.
To read the full article, CLICK HERE.
$190B PROPOSED IN HIGHER TAXES AND FEES
The California Tax Foundation released a Tax and Fee Report, identifying the appetite for higher taxes from the Legislature despite this year’s budget surplus.
During the first two months of 2022, state lawmakers considered raising annual taxes and fees by more than $190 billion, the California Tax Foundation reported. The report identifies 39 proposals that higher taxes and fees for Californian’s and makes it evident that the Legislature’s appetite for spending is only growing.
One of the largest tax hikes is AB 2802 (Muratsuchi) to impose a carbon tax on entities that emit greenhouse gases in California. The Commission on the 21st Century Economy analyzed the potential impact of a carbon tax in 2009, projecting that a carbon tax in California could cost taxpayers $5 billion to $10 billion annually.
Continuing to tax Californians at this rate is unsustainable coming out of the pandemic. We are following these measures closely while working with the Governor and Legislature to utilize the Budget instead of imposing more taxes.
To read the full report, CLICK HERE.
TAXING HOUSING INVESTORS
AB 1771 (Ward) was introduced and would tax those improving old housing stock for 25% of their profit.
The 25% tax rate would apply to those reselling a home within 3 years of the purchase. That tax percentage would decline to 20% after 3 years until eliminated after 7 years.
Taxing people that take risks to buy up dilapidated housing supply to fix them up for repurpose doesn’t limit housing but makes the supply more appealing.
This is yet another tax that does nothing to increase housing supply, which is the real crisis in California. With housing production numbers continuing to fall short of goals, and the cost of building still climbing, this is a bill will not help Californian’s who need housing and is undermining property rights of owners.
Stay tuned for more on this legislation in the coming weeks.
To read an article by the San Diego Tribune on this issue, CLICK HERE.
REDUCING NATURAL GAS LEADS TO BLACKOUTS
As the state and local governments continue to push for reduction in natural gas underlying issues with alternative forms of energy and the State’s grid are increasing blackouts.
Requiring all buildings be electric, even down to gas stoves has been a theme for California’s Legislature and cities. This push is happening even though many in the state are aware that relying on renewables to power California leaves many gaps in supply.
While the grid would be stressed with all residential and commercial buildings switching to just electric, this is also at a time where electric vehicles and charging stations are being pushed all throughout the state.
Our industry is supportive of going green and being environmentally friendly as it makes sense for the business climate in the State but relying on only one source to power in California is not the answer.
In a Special to CalMatters, Lance Christensen went into detail on the issue. To read the full Special, CLICK HERE.
INDUSTRY AWARDS DINNER & CBPA’S 50TH - 2 WEEKS AWAY!
California Business Properties Association Industry Awards Dinner & 50th Anniversary Celebration is scheduled for March 24, 2022, at The Renaissance Hotel in Newport Beach starting at 6:00pm. This bi-annual event is a chance to recognize the unwavering leadership of individuals and companies dedicated to the office, industrial, and retail real estate industry.
This year we will be pairing the Awards Dinner with a 50 Year Celebration, acknowledging the history and key role California Business Properties Association has played in advocating for and defending our vital industry. CBPA would not be successful without our leadership, membership, and those in our industry who go above and beyond in the legislative process.
With Rex Hime’s retirement announcement, and his 37 years of service to our industry, this event will also be an opportunity to honor and thank him and those who helped establish CBPA to become “The Voice of Commercial Real Estate,” in California.
The following peer-nominated awards represent the highest recognition given to industry leaders in the State of California:
The Ernest W. Hahn Memorial Award honors our founder’s many contributions to the real estate industry. The award is given to an individual and/or organization that go above and beyond the call of duty to impact legislative, regulatory, or public policy issues on behalf of our industry.
NewMark Merrill along with Sandy Sigal went above and beyond writing a check to defeat Prop 15 defending our industry from Split Roll Tax in 2020. From pushing for more signage at their properties, advocacy, and press – NewMark Merrill undoubtedly impacted our successes on the ballot in 2020.
Honoree: NewMark Merril, Sandy Sigal
The John Caldecott Memorial Award honors the unfaltering lifelong community service provided by John Caldecott through his service in the Salvation Army. The award recognizes an individual and/or organization that advances our industry through community service to others.
Kilroy Realty Corporation (KRC) is committed to being a real estate leader in innovation and sustainability. Part of that commitment is investing in our communities and future leaders. KRC seeks to address issues and needs aligned with our goals and objectives through financial support of education and community enrichment programs. KRC provides financial assistance to accredited schools and 501(c)(3) nonprofit organizations that work to produce programs and projects centered around community enrichment.
The Ray Magnussen Memorial Award honors Ray Magnussen who, as a provider to our industry, lead a statewide effort of advocacy to help fight issues facing all of us. The award is given to an individual service provider and/or organization that goes above and beyond the call of duty to impact the commercial real estate industry.
Sarahann spent countless hours providing legal guidance to our industry while navigating through the eviction moratoriums that took us by storm because of the pandemic. We were able to defeat legislation threatening our industry like SB 939, thanks to Sarahann Shapiro.
Honoree: Sarahann Shapiro, Pahl & McCay
Champion of the Industry Awards are presented to individuals and/or companies who have dedicated themselves to the improvement of the commercial, industrial, and/or retail real estate industry in California through the development of projects that stand-out for their innovation, attraction, and versatility.
Mr. Horne is passionate about collaboration and actively promotes the integration of multiple disciplines to ensure well-conceived, strategic solutions for complex client assignments. This passion led him to becoming an early adopter and champion for workplace transformation, including Workplace Strategy, Experience Consulting, Change Management and Occupancy Management.
Click the links below for Registration, Sponsorship, and hotel accommodations:
We look forward to seeing you in March and celebrating our industry together!
CBPA 2022 CALENDAR
Thursday, March 24
Industry Awards Dinner and CBPA Board Meeting
The Renaissance Hotel, Newport Beach
Thursday, April 7
CBPA Industrywide Legislative Meeting
Southern California
Tuesday, June 7 – Wednesday, June 8
California Commercial Real Estate Summit
and CBPA Annual Board Meeting
Sacramento
Tuesday, November 15
CBPA Board Meeting
Sacramento
For more information on any of our events, please contact Melissa Stevens at 916-443-4676 or mstevens@cbpa.com.
