Latest News

• GOVERNOR RELEASES NEW BUDGET– NOW WITH MORE FUNDING!
• CBPA OVERWHEMINGLY OPPOSES LAUSD’S MEASURE EE
• MEASURE EE UPDATE: LEGAL CHALLENGE TO LANGUAGE CHANGES
• PROP. 13 WOULD BE GUTTED BY SCA 5
• DYNAMEX COURT DECISION: ECONOMIC INSTABILITY AND UPHEAVAL
• CALENDAR

 

 

GOVERNOR RELEASES NEW BUDGET– NOW WITH MORE FUNDING!

 

Riding an unprecedented wave of gushing state revenues, Governor Gavin Newsom released his revised budget (known as the “May Revise”) which increases his original spending plan by $4 billion to an unprecedented $213 billion total budget. That is a large chunk of change!

 

Public schools, homeless issues, housing, and increasing health coverage are all the big winners in the budget. 

 

However, the Governor also echoed his predecessor in terms of being “the adult in the room,” and sounding a note for fiscal stability, stating “We have a record amount of rainy-day reserves and a record amount of resiliency. We have well over $30 billion-plus to weather a major storm and I would argue we have much more than that. We are preparing for a very different climate and we’ve never been more prepared as a state.”

 

Click here for synopsis on the new spending plan and links to drill down to much more detail: https://www.gov.ca.gov/2019/05/09/governor-newsom-releases-revised-california-for-all-state-budget/

 

 

 

CBPA OVERWHEMINGLY OPPOSES LAUSD’S MEASURE EE

 

California Business Properties Association leadership has overwhelmingly voted to oppose Measure EE, a $500 million property tax on all homes, apartments and business properties within the boundaries of the Los Angeles Unified School District (LAUSD) that will appear on the June 4, 2019 special election ballot.

 

Rex Hime, President and CEO stated, “We have been sounding the alarm on the use of parcel taxes like Measure EE to raise property tax revenue in a way that circumvents Proposition 13.  Measure EE is particularly nefarious and a de facto split roll as it is a per square foot parcel tax, not just a flat rate per parcel as is the standard.  This means that business properties and multi-family housing will pay by far the lion’s share of the tax.” 

 

In 2018 alone, there were 100 parcel taxes on California ballots and Measure EE is the second property tax increase in just two years for LAUSD.

 

Hime continued, “Measure EE won’t be the end of the assault on property taxes. It is simply another step to dismantle Prop. 13 protections.” 

 

The split roll property tax initiative on the November 2020 ballot played a key role in the LAUSD teachers’ strike as the new contract calls for Mayor Garcetti to endorse the measure and work with both the union and the LAUSD in advocating for its passage.

 

Additionally, this new property tax is coming on the heels of last November’s stormwater parcel tax (Measure W).

 

Additionally, CBPA leadership stands in unison with other business groups in calling Measure EE an ill-conceived tax calling out the following issues:

 

• Measure EE does not require any fundamental reform that will address the school district’s financial woes.
• Measure EE has no oversight to guarantee this money will be spent on students or in classrooms.
• Measure EE mainly funds long-term healthcare and pension benefits for LAUSD employees and does not go into improving classroom instruction.

 

Although CBPA does not normally get involved with local elections, our leadership believes Measure EE is part of a statewide assault on the fundamental protections provided by Proposition 13 and have authorized the organization to fight this measure through communication, funding, and member action.

 

 

MEASURE EE UPDATE: LEGAL CHALLENGE TO LANGUAGE CHANGES

 

In a bizarre turn of events, Measure EE is now facing a legal challenge over the fact that some questions about how the language changed during the process of putting it on the ballot. Those changes, in some cases, could double the already outrageous tax this measure will place on commercial properties.

 

LA County BizFed is leading the charge locally to oppose this ill-conceived, and potentially illegal measure. Click here to read more and find out how to get involved! https://bizfedlacounty.org/blog/2019/05/09/news-alert-measure-ee-election-goes-forward-but-legal-challenge-continues/

 

 

 

PROP. 13 WOULD BE GUTTED BY SCA 5

 

A bill that will gut the Proposition 13 protections property owners have in this state was scheduled for hearing in the Senate Elections and Constitutional Amendments Committee on Tuesday but has been postponed to next week.

 

We strongly Oppose SCA 5, a bill which would allow school districts to increase property taxes with a 55 percent approval of the voters participating in the election – instead of a two-thirds vote of the district’s electorate as currently required under the State Constitution – if the proposition is approved by the school governing board and includes certain requirements, as specified. The measure also would facilitate various local tax increases by lowering the minimum voter approval to a percentage of the voters participating in the election instead of the district’s qualified voting electorate. 

 

This bill would gut Prop 13 by removing the longstanding protections of that landmark measure that requires a 2/3 vote to increase property taxes for certain activities. Coupled with local measures like EE in Los Angeles and statewide measures like the Split Roll ballot measure on next November’s ballot, we are seeing one of the most brazen and coordinated attempts to raise your property taxes that we have ever seen.

 

Don’t let this happen. Contact us now to find out how you can help push back all these threats.

 

 

 

DYNAMEX COURT DECISION: ECONOMIC INSTABILITY AND UPHEAVAL

 

Since 1989, California courts and regulators applied a set of rules called the Borello test for deciding whether a worker was an independent contractor. This approach weighed nine different factors to account for the variety of California industries and professions that would be regulated.

 

Despite this test being used for over three decades, the California Supreme Court made a surprising and unprecedented departure in April 2018 by replacing these nine factors with a one-size-fits-all approach consisting of just three factors which are also far more restrictive.

 

This new test, called “ABC,” has never existed in any form of California law, either in statute or by regulation. The ABC test is the first time in U.S. history that such a test has been imposed by a court, without legislative approval, with three independently dispositive factors.

 

We are working a bill in the legislature that could clarify and codify the Dynamex decision, AB 5 (Gonzalez; D-San Diego). 

 

AB 5 currently exempts doctors, insurance agents, and securities brokers/advisers from what would become the new standard. And while we agree that these professionals should be exempted from the application of Dynamex, we think so should many others. Including, most importantly, commercial brokers and real estate agents; but also architects, engineers, lawyers, therapists, accountants, speech interpreters and translators, court reporters, barbers, hair stylists, and many other individuals who have advanced degrees or are licensed by the State, perform work as independent contractors and want to maintain that status.

 

This is an odd an complicated bill but we are hoping to be able to support AB 5 once it is in a shape to deal with the professional and licensed classifications in a way that maintains their true independence. Click here for more information http://www.capradio.org/articles/2019/04/01/california-business-groups-willing-to-back-dynamex-bill-in-exchange-for-carve-outs/

 

 

CALENDARS

 

June 11 – 12, 2019

California Commercial Real Estate Summit

Sacramento

 

December 5 – 6, 2019

Strategic Issues Conference

Napa Valley