CBPA's California Legislative Update 4/17/2020
- WILLIE BROWN OPPOSES SPLIT ROLL - HURTS MINORITY OWNED BUSINESSES
- ECONOMIC TASK FORCE
- ECONOMIC POLICY ASSISTANCE OFFERED BY BUSINESS ASSOCIATION
- JUDICIAL COUNCIL EMERGENCY RULES WILL CAUSE UNNECESSARY DELAYS
- WA GOVERNOR DECREES STATEWIDE RENT CONTROL
- REGULATORY DELAY REQUESTED
- AMENDED BILL WOULD REQUIRE 25% STATEWIDE RENT REDUCTION
- AB 2843 “HEAD TAX” BILL – DEFEATED
- CBPA 2020 CALENDAR
WILLIE BROWN OPPOSES SPLIT ROLL - HURTS MINORITY OWNED BUSINESSES
This week, former Assembly Speaker and San Francisco Mayor Willie L. Brown, Jr. penned an opinion piece in CALmatters explaining how the $12.5 billion-a-year property tax hike measure will hurt minority-owned small businesses.
Brown argues the flawed measure will negatively impact small businesses due to rent increases from skyrocketing property taxes. Small businesses are particularly hurt by the COVID-19 pandemic and the resulting economic shutdown.
We agree wholeheartedly with Speaker/Mayor Brown! Click here to read his op/ed opposing split roll.
Additionally, coalition of African American civil rights, faith and community leaders announced their opposition today to the $12.5 billion-a-year property tax increase measure headed to the November ballot. Click here to read all about it.
ECONOMIC TASK FORCE
At his daily press briefing today, Governor Newsom announced the formation of an economic task force to help the state pivot to recovery once the COVID-19 health emergency has passed.
Chaired by billionaire climate activist and recent presidential candidate Tom Steyer, along with the governor’s Chief of Staff Ann O’Leary the task for has 80 people, including a who’s who of industry heads ranging from Apple CEA Tim Cook to Disney Chair Bob Iger. The task force also includes four former Governors.
Click here for a full list of the task force.
Click here for the Governor’s Press Release.
Click here for an L.A. Times story about the task force.
ECONOMIC POLICY ASSISTANCE OFFERED BY BUSINESS ASSOCIATION
Seventeen business groups in Sacramento, representing tens of thousands of companies, employing millions of Californian’s, have pledged a willingness to assist the Governor in getting our State’s economy back on track.
Click here to read the letter signed by Rex S. Hime representing the commercial real estate industry.
JUDICIAL COUNCIL EMERGENCY RULES WILL CAUSE UNNECESSARY DELAYS
At its meeting two weeks ago, the Judicial Council approved 11 temporary emergency rules, including setting bail statewide at $0 for misdemeanors and lower-level felonies to “safely reduce jail populations” and staying eviction and foreclosure proceedings to protect Californians from losing their homes during the COVID-19 pandemic.
This was the second emergency council meeting of court and branch leaders from around the state to consider further measures to ensure California courts—which remain open as "essential services" under Gov. Newsom's stay-home executive order—can meet stringent health directives while also providing due process and access to justice.
Unfortunately the order has a number of unintended and uncontemplated impact that will severely hamper the recover. CBPA, as well as several other groups, have asked the Judicial Council to revise these rules as soon as possible. For real estate there are a number of impacts, including extending the time in which unlawful detainer actions can begin.
However, of utmost urgency, is revising Emergency Rule No. 9 extends all statutes of limitations for all civil actions until 90 days after the Governor declares that the state of emergency related to COVID-19 is lifted. This rule has the potential of stopping project as part of the CEQA process.
Click here to read CBPA’s letter asking the Judicial Counsel to revise emergency Rule No. 9.
WA GOVERNOR DECREES STATEWIDE RENT CONTROL
On April 16, 2020, State of Washington Governor Jay Inslee released a proclamation requiring statewide residential and commercial rent control:
"Landlords, property owners, and property managers are prohibited from increasing, or threatening to increase, the rate of rent or the amount of any deposit for any dwelling or parcel of land occupied as a dwelling. This prohibition also applies to commercial rental property if the commercial tenant has been materially impacted by the COVID-19, whether personally impacted and is unable to work or whether the business itself was not deemed essential pursuant to Proclamation 20-25 or otherwise lost staff or customers due to the COVID-19 outbreak.”
Click here to read the full proclamation.
REGULATORY DELAY REQUESTED
A group of employer groups has asked the Governor to stall a number of regulatory processes due to the COVID-19 pandemic. Public engagement is very difficult right now; and many of the policies could slow the economic recovery.
The regulatory items requested to be stalled range from recycling measures to indoor heat illness regs. Click here to read the full letter.
AMENDED BILL WOULD REQUIRE 25% STATEWIDE RENT REDUCTION
AB 828 (Ting; D-San Francisco) has been amended to, among other things, require a 25% statewide rent reduction for residential properties. This bill would devastate the rental market in California, and we have joined a coalition opposing the bill.
Click here to read the opposition letter to AB 828.
AB 2843 “HEAD TAX” BILL – DEFEATED
Assemblymember Kansen Chu (D-San Jose) introduced AB 2843 which would have required an annual tax of up to $150 per employee on all applicants for a local business license for any business with 51 or more employees. The funds of this “head tax” were to be directed to an affordable housing assistance fund.
A coalition of employer groups argued that “even during the best of times levying a “head tax” on California businesses would not solve the state’s housing and homeless crisis. During these extraordinary times, such a tax would be a punishing blow on employers struggling to keep their doors open, and an insult to employers attempting to reopen and hire or rehire workers.”
The author has chosen to suspend pursuing the bill for this year.Click here to read the opposition letter that you can use as a resource if your local city or county governments decide to pursue a similar policy.
CBPA 2020 CALENDAR
Tuesday-Wednesday, June 9-10
California Commercial Real Estate Summit
Cal Chamber, Sacramento
DUE TO SHELTER IN PLACE ORDERS THIS EVENT IS PENDING
Thursday, November 5
CBPA Board Meeting & Industry Awards Dinner
The Renaissance Hotel, Newport Beach
