CBPA's California Legislative Update 5/17/19
- TWO WEEKS TO GO!
- THE SUSPENSE FILES: CALIFORNIA BILLS VANISH ALMOST WITHOUT A TRACE
- HOUSING BILL HELD ON SUSPENSE
- REDEVELOPMENT BILL DIES
- CBPA OVERWHEMINGLY OPPOSES LAUSD’S MEASURE EE
- PROP. 13 WOULD BE GUTTED BY SCA 5
- CBPA 2019 CALENDAR
TWO WEEKS TO GO!
With two weeks to go, and today being the last day for committees to meet until June, the California State Assembly and Senate are furiously dealing with bills to meet the constitutionally mandated “First House Deadline” in two weeks. Any bill not out of its house of origin by that time are dead.
Additionally, both Appropriations Committees met this week to take care of the “Suspense Files”. So, busy times for the Legislature. When they return on Monday there will be two weeks left to get all Assembly bills out of the Assembly; and all Senate Bills out of the Senate. This means lots of activity and potential for last minute shenanigans. So, on your behalf, we will be following the proceedings closely!
THE SUSPENSE FILES: CALIFORNIA BILLS VANISH ALMOST WITHOUT A TRACE
You have heard about the “Suspense File” in the past – its where bills sometimes die with no votes on the policy – and therefore no “fingerprints” on their demise. First house Suspense is where a lot of bills end their journey, and this year is no different. All in all, we saw 10 bills we oppose, and 17 bills we support, “Held Under Submission.” Here are some of the highlights:
Here are some bills we are glad got held on Suspense:
AB 345 Oil and gas: operations: location restrictions.
AB 470 California Green Business Program.
AB 724 Rental property data registry.
AB 961 Energy programs and projects: nonenergy benefits.
AB 1332 Sanctuary State Contracting and Investment Act.
SB 332 Wastewater treatment: recycled water.
SB 561 California Consumer Privacy Act of 2018: consumer remedies.
Here are a few we supported and will miss:
AB 266 Income taxes: credits: attic vent closures.
AB 312 State government: administrative regulations: review.
AB 371 Transportation: freight: statewide economic growth, prosperity, and resiliency assessment.
AB 517 Orange County Property Crime Task Force.
AB 616 Fire safety: California Forest Carbon Plan: reports.
AB 742 Place-Based Economic Strategies Act.
AB 801 Photovoltaic requirements: tariffs and programs: study.
AB 906 California Economic Development Strategic Action Plan.
AB 1262 California Sustainable Freight Action Plan.
AB 1375 Disaster relief: dead and dying tree removal: allocation to local agencies.
AB 1542 Income taxes: Worker Training Program Tax Credit.
AB 1726 Income taxes: California work opportunity tax credit.
SB 50 Planning and zoning: housing development: incentives.
SB 659 California Environmental Quality Act: attorney’s fees: infill housing.
Now on to the Floor!
HOUSING BILL HELD ON SUSPENSE
One of the most closely watched bills on housing, SB 50 by Senator Wiener from San Francisco, was held on Suspense and it has caused a bit of a kerfuffle.
Although planning and approving new housing is mainly a local responsibility, this bill sought to cut through some of the inertia enforced on that process by NIMBY groups by allowing certain types of housing to be built in urban areas.
Senator Wiener issued the following statement: “While I’m deeply disappointed that the Chair of the Appropriations Committee has decided to postpone SB 50 until 2020 - since we have a housing crisis right now - we are one hundred percent committed to moving the legislation forward. California faces a 3.5 million home shortage - equal to the combined housing shortage of the other 49 states - and the status quo isn’t working. California’s failed housing policy is pushing people into homelessness, poverty, and two-hour commutes, is pushing working families out of their communities and out of the state entirely and is undermining California’s climate goals. We need to do things differently when it comes to housing. We’re either serious about solving this crisis, or we aren’t. At some point, we will need to make the hard-political choices necessary for California to have a bright housing future.”
We were closely watching the bill and had support from our allies the Homebuilders and hope the innovative bill will cause state policymakers to look at the negative impact that some rules and regulations – from CEQA to Prevailing Wage to Land Use policy – that is preventing enough homes to be built to meet the demand.
REDEVELOPMENT BILL DIES
AB 11 by Assemblymember Chiu, which sought to bring back Redevelopment in a drastically reformed role, has stalled out in the assembly. The Legislation would have created a new version of the program that used tax increment financing to building affordable housing and local government infrastructure.
Chiu’s bill would have allowed cities and counties to designate a redevelopment zone and redirect property tax money created in the zone toward infrastructure and affordable housing. Some believe that the bill isn’t necessary because the state has moved forward with Enhance Infrastructure Financing Districts which act similar to Redevelopment but with more protection against wasteful spending.
EIFD’s are the focus of the Governor in his current budget and reforming the District so they will be easier to use has been a priority of the new administration.
Whether it is called Redevelopment or something else, we do support allowing local governments more flexibility in using financing tools to make conditions more conducive to building much needed housing.
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.
PROP. 13 WOULD BE GUTTED BY SCA 5
A bill that will gut the Proposition 13 protections property owners have in this state has moved through two policy committees on party line votes and just passed off the Senate Suspense File.
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.
CBPA 2019 CALENDAR
June 11 – 12, 2019
California Commercial Real Estate Summit
Sacramento
December 5 – 6, 2019
Strategic Issues Conference
Napa Valley
