STATE BUDGET INCHES FORWARD

After an “all-nighter” the California State Assembly has come to agreement on a budget plan, and lobbed it over to the Senate Chambers after Assembly Democrats agreed to shift more than $1 billion from local transit agencies to other purposes and approve a series of business tax breaks, targeted toward research and development, movie and television production, and production of jet fuel, in an effort to reach a compromise with minority Republicans. Unfortunately, the deal was struck without consulting colleagues in the Senate, so insiders think this deal could easily fall apart (see below). We will keep you posted, but have our fingers crossed that this doesn’t drag-out into the dead of the Summer…

TROUBLE IN PARADISE: PRO TEM ANGRY WITH ASSEMBLY BUDGET

Senate President pro Tem Don Perata (D-Oakland) sent the following letter to Speaker Nuñez voicing opposition to the budget plan under consideration in the Assembly, which eventually passed:

Dear Mr. Speaker:

I am alarmed and dismayed by rumors that you are considering a half a billion dollars in tax breaks for special interests.

As you and I well know, Democrats have sacrificed funding for education, have postponed a meager cost-of-living increase for the state’s most vulnerable disabled residents – the aged, blind and disabled, and have barely thwarted deeper cuts to education and higher education. Even the increases we proposed to the state’s Prop 36 program – aimed at keeping non-violent drug offenders out of prison and putting them into treatment programs – has fallen victim to concerns about the state’s long-term deficit.

But most ironic, we have surrendered $185m in teacher tax credits to balance the budget!!! How could you now throw them over for Hollywood movie moguls and multi-national corporations???
Our out-year budget problem is already $5.5 billion dollars. We cannot continue to fund education, higher education and crucial human services issues, such as the in-home supportive services program, childcare, or funding for the aged, blind and disabled by providing tax giveaways.

I am deeply disappointed and saddened by your actions – and hope you will reconsider.

Sincerely,
Don Perata

GREEN BUILDING MANDATE MOVES TO BUDGET FIGHT

While the members on the Floor were arguing over tax breaks for movie moguls, someone quietly slipped language into the budget, that if passed, would mandate all state buildings built after Jan 1, 2009, meet the U.S. Green Building Council’s Leadership in Energy And Environmental Design (LEED) “silver” rating. This costly mandate is tied to standards developed by an East Coast-based private entity and does not take into consideration the unique needs of building in California (earthquake standards, hot/arid climate in the southern part of the state), while discouraging the use of wood, a renewable resource grown in our state, and circumventing a state process already underway that is drafting green building codes tailored to our state.

We appreciate the intent of this language and agree that the state should lead by example in terms of building sustainable buildings, however this language is too restrictive in that it bases the state’s standards solely on work done by a private entity, while ignoring the ongoing process related to green buildings currently happening at the California Building Standards Commission (BSC). The BSC’s Green Building Committee has already started the task of creating state standards and we support continuing that effort. The Legislature has historically relied on the administrative process at the BSC for the adoption and updating of such technical building standards and hope that you will continue to allow that process to work. For over thirty years, the BSC has overseen the creation and adoption of building standards in California, and this effort has produced some of the most progressive environmentally based requirements in the nation.

There are several other credible programs and guidelines in the marketplace that certify the “sustainability” of buildings, such as GreenGlobes, EPA’s Federal Green Construction Guide, and our state’s own “Building Better Buildings; an update on State Sustainable Building Initiatives,” – why would the state want to tie itself in statute to this particular standard? Instead customizing a sustainable building code for California through the BSC process, this policy mandates a “one-size-fits-all” approach based on a single privately written plan, which ironically does not even incorporate a full “life-cycle analysis in its process.” Under this measure the state would also begin requiring projects that use wood products to have a “credible third party sustainable forest certification,” thereby effectively precluding the use of many of the wood products produced in California on certain projects.

For these reasons, BOMA is opposed to this policy.

LEGISLATIVE ***ACTION ITEMS***

Although arguing over the budget provides a tiny rest from rest from the drudgery of the legislative machine, many many many bad bills are continuing to move and we need your help to stop them. In coalition with the CalChamber, CBPA is opposing the following measures and encourages you to weigh-in by clicking the links below to send a message to your elected officials:

Health Care Mandate
OPPOSE AB 8 (Núñez; D-Los Angeles) JOB KILLER: Health Care Tax on Employers — Imposes a tax on small employers who can’t afford to provide health care coverage, to fund health care coverage for those who don’t currently purchase it. Senate Appropriations. No hearing date set.
Send a Letter

Housing Development Restrictions
OPPOSE AB 70 (Jones; D-Sacramento) JOB KILLER: Housing Development Restrictions — Impedes new development by imposing joint liability to the extent that local government increases the state's exposure for property damage due to floods by approving development in previously undeveloped areas. Senate Floor.
Send a Letter

Legal Protection and Reform
OPPOSE AB 437 (Jones; D-Sacramento) Expanded Lawsuits and Damages for Employers — Greatly expands employers liability exposure and hampers their ability to defend themselves by effectively removing any statute of limitations for lawsuits challenging any employer decision that effects pay or benefits. Senate Floor.
Send a Letter

Privacy and Confidentiality
OPPOSE AB 779 (Jones; D-Sacramento) Personal Information: State Agencies and Businesses — Imposes onerous and unneeded data management requirements on businesses and creates new financial liabilities for small and medium sized businesses accepting credit card and debit card payments. Senate Appropriations Committee hearing July 23.
Send a Letter

GOVERNOR HIGHLIGHTS CRITICAL NEED FOR COMPREHENSIVE WATER PLAN

The Governor toured the San Luis Reservoir in Merced County to illustrate California's mounting water crisis and call on the Legislature to pass a comprehensive water plan. The reservoir is filled to just 25 percent of capacity resulting from California's drought conditions and a nine day shut down of the state water project pumps in the Delta. This summer, drought conditions are causing water districts to call for people to voluntarily cut their usage by ten percent. Two districts in Sonoma and Santa Cruz Counties have implemented mandatory rationing. Last month, the Governor proclaimed a State of Emergency in Kings County due to the drought.

Building on his Strategic Growth Plan from last year, the Governor introduced a $5.9 billion comprehensive water plan in January. The Governor's plan invests $4.5 billion to develop additional surface and groundwater storage, so we can protect communities against flooding and capture water from storms and snowmelt run-off to supply cities, farmers and business with water during drought conditions. The plan also includes $1 billion toward restoration of the Delta, including development of a new conveyance system, $250 million to support restoration projects on the Klamath, San Joaquin and Sacramento rivers and the Salton Sea project and $200 million for grants to California communities to help conserve water for about 400,000 families. Click here to read more about this plan.

PERATA PUSHES $5 BILLION WATER BOND

Not to be outdone, the Senate pro tem is pitching his own $5 billion water bond on Monday that could pay for new a system that transfers water around the Sacramento-San Joaquin Delta. The Senate Democratic plan does not specify funds for dams, a major GOP priority, but would provide $2 billion in competitive grants that local water agencies could spend on new dams or alternatives such as groundwater storage. The bond includes $1 billion for a new water management system such as a canal that moves water around the Delta, an idea that has been controversial since voters rejected a similar "peripheral canal" in 1982. In order to keep the conversation civil, Schwarzenegger press secretary Aaron McLear called Perata's plan a "step in the right direction." Click here for the full story

TUCK APPOINTED UNDERSECRETARY OF CAL-EPA

Cindy Tuck, of Sacramento, has been appointed undersecretary of the California Environmental Protection Agency. She has more than 20 years of air quality, water quality and hazardous materials management experience in California. Since 2005, Tuck has served as assistant secretary for policy for the California Environmental Protection Agency. Before her current post, she briefly served as chair for the California Air Resources Board in 2005. Tuck is a member of the State Bar of California and is registered as a professional engineer in California. CBPA has a longstanding working relationship with Undersecretary Tuck and we look forward to working with her in this new capacity.

FIRE MARSHAL TO REDUCE DELAY FOR WILDLAND FIRE SAFETY REGS

State Fire Marshal (SFM) Kate Dargan plans to seek a 6-month delay for the new Wildland Fire Safety Building Standards presently set to take effect on 1/1/08. Moving the effective date to 7/1/08 will give local authorities and industry more time to review and comment on the State’s revised “fire hazard zone maps” for Local Responsibility Areas (LRA’s). The recent Angora Firestorm in South Lake Tahoe prompted the SFM to reduce by six months the delay that had been under consideration. The Department of Forestry and Fire Protection will be forwarding the new draft maps to local jurisdictions for review and comment starting in mid-August. However, this public process won’t be fully completed until late-November for many areas and the SFM felt there needed to be more time for industry and code enforcement to get up to speed with the requirements, including the specific areas of local application. A decision on the SFM’s request for the 6-month delay will be made by the Building Standards Commission at their September 20th Business Meeting.

WANTED: GLOBAL WARMING STAFF TO SAVE THE EARTH

The City of Santa Cruz’ Global Warming city staffer can’t save the earth alone, so luckily San Francisco and Berkeley are also adding an environmental expert to their staffs dedicated to reducing greenhouse gases in the atmosphere. Santa Cruz's global warming coordinator position was developed through the general plan update under way by community and city leaders during the past year. The new general plan - a state-mandated blueprint for how Santa Cruz will look in the next 20 years - places global warming prevention as a top priority. Click here to read the full story

INDUSTRY CONFERNCE TO FOCUS ON GLOBAL WARMING POLICY ISSUES

Four major industry groups are combining forces to sponsor a high level discussion regarding the impacts of “global warming” policy and their impact on our industry. From AB 32 greenhouse gas regulations to the legislative focus on “green building” mandates, this conference promises to deliver the most up to date thinking about the politics driving these policies and will offer strategic discussion to set the course on how we can proactively be at the table and positively influence policy.

Joint sponsors for this event include: California Business Properties Association (CBPA), California Building Industry Association (CBIA), Building Owners and Managers Association of California (BOMA California), and Retail Industry Leaders Association (RILA),

The event will be held November 1-2, 2007, at the Meritage Resort in Napa Valley. A stellar line-up of policy and decision-makers from Industry, the Schwarzenegger Administration and Legislature, as well as a respected member of the political press corps, is coalescing for the conference. Until we can announce confirmed names of speakers, here is the framework agenda:

THURSDAY, NOVEMBER 1, 2007
4:30 p.m. – 6:00 p.m. Kick-off Reception in the Wine Caves
6:00 p.m. – 8:30 p.m. Dinner with Speaker TBA

FRIDAY, NOVEMBER 2, 2007
8:00 a.m. – 9:00 a.m. Breakfast with Speaker TBA
9:00 a.m. – 11:30 a.m. Panel Presentations (2 panels TBA)
11:30 a.m. – 1:00 p.m. Luncheon with Speaker TBA

For early-bird registration information and special room rates, please contact Tracy Fujii at CBPA, 916-443-4676, or tfujii@cbpa.com.

Don’t just react – be a leader – participate in this conference and shape important issues that will affect your businesses.

BOMA CAL-ENDAR 2007/2008

November 1 & 2 – BOMA Cal/CBIA/CBPA Fall Joint Legislative Conference
BOMA Cal Annual Meeting
Napa Valley (Meritage Resort)

January 15 – BOMA Cal Board Meeting
Los Angeles
In conjunction with IREM/BOMA GLA Forecast Breakfast

March/April (date TBD) – BOMA Cal Board Meeting
Location TBD

June 10-11 – CA Commercial Real Estate Summit – BOMA Cal Board Meeting
Sacramento (Hyatt Regency)

October/November (date TBD) - BOMA Cal Annual Meeting/20th Anniversary Event
Location TBD