NOT SO SPECIAL SESSION ENDS

At 3:26 a.m. Wednesday Morning the California State Assembly gaveled itself into recess, several hours after the Senate did the same. Thus ending the first half of the 2007-2008 Regular Legislative Session. Professional political analysts and armchair political junkies alike, thought the session ended with a whimper without accomplishing much or doing irreparable much damage to the state. The session won’t be remembered for too long after it passes, and in the short term will be known more for hosting one of the longest budget stalemates in history than for any groundbreaking policy. That’s not to say there weren’t a lot of bad ideas that were sent to the Governor for signature, there were, it’s just that these are your garden variety bad ideas, the worst of which don’t have a huge chance of survival once put through rigorous analysis in the Governor’s office.

In the last two weeks of session, over a thousand bills were “debated” and acted upon. More than a hundred had some direct impact on the commercial, industrial, retail real estate industry. Below you will find a list of the highest priority bills and what happened with them.

TWO SPECIAL SESSIONS BEGIN

Before the Legislature vamoosed for Recess, the Governor and both Houses opened two Special Legislative Sessions – one on “water” and one on “health care.” Those of you that bet on the trifecta will be disappointed to learn that a special session on “redistricting” was not called. According to the Governor, “these issues are vital to our state and the quality of life of all Californians. We made great progress on both fronts but budget negotiations took two months longer than we thought and we ran out of time. We owe it to the people of California to finish our work on these important reforms. I have met with the legislative leaders and I have no doubt that if we put in the extra time and effort – and if we have the will – we can achieve the results that the people of California expect and deserve.”

It remains to be seen if more time will help resolve issues related to health care reform. This is a Gordian knot that the only thing that more than two groups working on the issue can agree on, is that they hate whatever plan is being talked about.

On water, however, we are much more optimistic. The main goal for the special session seems to get approval for a water bond. Conveyance and storage. Storage and conveyance. Look to hear these two words a lot as the conversation moves forth. For some this might seem to be a “distant problem” that doesn’t have a lot of bearing on your day-to-day business. However, think of this, a failing levee in the Central Valley would impact businesses in Southern California by stopping the flow of water. A major levee failure could take seven months to a year to fix. If several in the conveyance system go down you have the spigot spinning shut on the LA Basin. No water = bad for business.

CBPA is in the mix on all of these conversations and participating as a leader in the business coalition that is working directly with the Governor’s office and Legislative Leaders. We will keep you posted.

For more on the Legislative Special Sessions, click here.

LEGISLATIVE WRAP-UP; SUPPORTED BILLS SENT TO GOVERNOR

The following bills that were SUPPORTED by the commercial, industrial, retail real estate industry have been sent to the Governor:

SB 23 Cogdill (R) Requires the San Joaquin Valley Unified Air Pollution Control District to develop and administer a voluntary program to remove high polluter vehicles within the district by exchanging such vehicles for donated vehicles. Requires the district to certify that the exchange of any 2 vehicles results in lower net emissions. Limits the program to 200 vehicles annually. Authorizes the use of interest generated from funds allocated to the district from the Traffic Congestion Relief Fund to administer the program. SUPPORT - TO THE GOVERNOR

AB 150 Lieu (D) Establishes the Financial Literacy Initiative for improving financial literacy by offering instructional materials for teachers and schools to provide high-quality financial literacy education for pupils in kindergarten and grades 1 to 12, inclusive. Authorizes the Superintendent of Public Instruction to provide an online library of financial literacy resources and materials and to convene a related advisory committee. Requires a related biennial report about online materials by authors and publishers. SUPPORT - TO THE GOVERNOR

AB 527 Torrico (D) Requires the Department of General Services, in partnership with the State Energy Resources Conservation and Development Commission, to develop and adopt a state plan to include energy efficient technology in public buildings. Requires the Department of General Services to begin implementation of the state plan upon its adoption. Creates the Energy Efficient Technology Pooled Investment Fund for procurement and implementation for state-owned facilities of qualifying measures in the state plan. SUPPORT - TO THE GOVERNOR

AB 566 Plescia (R) Relates to a model local water efficient landscape ordinance. Amends requirements of the model ordinance regarding climate information for irrigation scheduling based on the Irrigation Management Information System. Requires the Department of Water Resources to continue the operation of the system to allow evapotranspiration data to be generated for, transmitted to, and made available to, all regions of the state and to develop a standard data protocol for the transmission of that data. Provides for funds. SUPPORT - TO THE GOVERNOR

SB 161 Margett (R) Authorizes public entities to receive supporting materials submitted pursuant to a public works contract over the Internet. Requires public entities that receive bids and supporting materials over the Internet to provide an electronic receipt to the contractor either by immediate transmission or by providing access to the contractor to an electronic file that contains the receipt. Provides for specified forms of bidder's security. Relates to California State University Contract Law. SUPPORT - TO THE GOVERNOR

SB 223 Machado (D) Prohibits a licensed appraiser from engaging in any appraisal activity in connection with the purchase, sale, transfer, financing or development of real property, if his or her compensation is dependent on or affected by the value conclusion generated by the appraisal. Prohibits anyone with an interest in a real estate transaction involving an appraisal from improperly influencing the reporting, result, or review of a real estate appraisal sought in connection with a mortgage loan. SUPPORT - TO THE GOVERNOR

SB 341 Lowenthal (D) Relates to the Enterprise Zone Act which requires a related environmental impact study. Requires the submission of a notice of preparation and a draft environmental impact report if an environmental impact report is to be prepared. Requires the submission by an applicant lead agency chosen as a final applicant of a draft environmental impact report, negative declaration or mitigated negative declaration. Deletes the exceptions to the requirement for further impact reports. SUPPORT - TO THE GOVERNOR

SB 416 Ashburn (R) Authorizes any county, with the approval of the board of supervisors, to enter into design-build contracts in accordance with specified provisions. SUPPORT - TO THE GOVERNOR

LEGISLATIVE WRAP-UP; OPPOSED BILLS THAT DIED

The following bills that were OPPOSED by the commercial, industrial, retail real estate industry have been defeated and are dead for the year.

SB 240 Florez (D) Authorizes the San Joaquin Valley Air Pollution Control District to increase its motor vehicle fee for incentive-based programs to achieve surplus emissions reductions. Requires the Bureau of State Audits to audit the assessment of fees and expenditure of funds. Authorizes the San Joaquin Valley district to adopt rules and regulations to reduce vehicle trips in order to reduce air pollution from vehicular sources. Requires the district to submit a specified proposal relating to vehicle fees. OPPOSE - DEAD FOR THE YEAR

SB 375 Steinberg (D) Relates to guidelines for travel demand guidelines used in regional transportation plans, the requirement a regional transportation plan include a sustainable community strategy designed to achieve goals for the reduction of greenhouse gas emissions, an environmental document under the Environmental Quality Act that examines specific impacts of a transportation project located in a local jurisdiction that has amended its general plan and the legislative body finds the project meets specified criteria. OPPOSE - DEAD FOR THE YEAR

AB 437 Jones (D) Specifies that when a cause of action for unlawful discrimination or unlawful employment practice with respect to compensation accrues for determining whether a complaint was filed within statutory guidelines. OPPOSE - DEAD FOR THE YEAR

SB 732 Steinberg (D) Implements the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act. Requires departments that are to implement the initiative to develop and adopt guidelines and regulations. Provides for funds for nature education and research facilities and for parks, reports regarding grant recipients, investor-owned utilities, and the funding of integrated regional water management plan projects or programs. Creates the Sustainable Communities Council and Fund. OPPOSE - DEAD FOR THE YEAR

SB 974 Lowenthal (D) Requires the Ports of Los Angeles and Long Beach to transmit a portion of the funds derived from imposition of a container cargo user fee to the San Pedro Bay Ports Congestion Relief Trust Fund and San Pedro Bay Ports Mitigation Relief Trust Funds. Requires the Port of Oakland to transmit a portion of the funds derived from imposition of the fee to the Port of Oakland Congestion Relief Trust Fund and a portion to the Port of Oakland Mitigation Relief Trust Fund. Authorizes related financing agreements. OPPOSE - DEAD FOR THE YEAR

AB 1066 Laird (D) Relates to requiring the guidelines of the Office of Planning and Research on city and county general plan preparation to include advice that cities and counties may use to address the effects of climate change and sea level rise on the coast and bays. Authorizes the San Francisco Bay Conservation and Development Commission to develop strategies relating to these same effects on San Francisco Bay, and requiring the Ocean Protection Council to provide the best available related information. OPPOSE - DEAD FOR THE YEAR

AB 952 Mullin (D) Prohibits the board of directors of a common interest development from imposing any assessment that exceeds specified limits unless the assessment is approved by owner-occupants of affordable units, constituting a quorum, casting a majority of the votes of these owner-occupants at the same meeting or election. Requires that, with respect to the assessments subject to and approved by a vote, an association establish a payment plan for the owner-occupants of affordable units who request such a plan. OPPOSE - DEAD FOR THE YEAR

AB 558 Feuer (D) Requires the Department of Toxic Substance Control to incorporate techniques into its hazardous waste source reduction program that evaluate and seek to reduce the use of hazardous materials and to request from generators materials accounting for hazardous materials used in the manufacturing and production processes. Requires placement on the department's Internet Web site of materials use information. Relates to the hazardous materials annual inventory form. OPPOSE - DEAD FOR THE YEAR

LEGISLATIVE WRAP-UP; SUPPORTED BILLS THAT DIED

The following bills that were SUPPORTED by the commercial, industrial, retail real estate industry were defeated and are dead for the year:

SCA 4 Ashburn (R) Relates to valorem taxes. Excludes from the definition of newly constructed the portion of an existing structure that consists of the construction or reconstruction of seismic retrofitting components. Excludes certain seismic retrofitting improvements or improvements utilizing earthquake hazard mitigation technologies. SUPPORT - DEAD FOR THE YEAR

SB 111 Ashburn (R) Relates to valorem taxes on real property. Specifies that those that qualified for a 15-year exclusion relating to structures constructed of unreinforced masonry also qualify for the general exclusion for seismic retrofitting components. SUPPORT - DEAD FOR THE YEAR

SB 544 Cox (R) Prohibits marketing, distributing, offering for sale, or selling a fire alarm system or device unless it has been tested in accordance with standards adopted by the State Fire Marshal and is listed as nationally recognized testing laboratory that is approved by the State Fire Marshal. Prohibits the State Fire Marshal from creating additional requirements for these systems and devices. Deletes provisions relating to a working group convened by the State Fire Marshal. SUPPORT - DEAD FOR THE YEAR

ACA 8 De La Torre (D) Proposes an amendment to the Constitution to prohibit state and local governments from acquiring by eminent domain an owner-occupied residence, real property on which a small business is operated, real property that is used exclusively by the owner for religious worship and is exempt from taxes, or agricultural land for the purpose of conveying the property to a private person. Provides the previous owner may reacquire property not used for a public purpose and, assessment and reacquisition procedures. SUPPORT - DEAD FOR THE YEAR

SB 312 Kehoe (D) Relates to requiring the Public Utility Commission to make all ratesetting proceedings available on its Web site, and the definition of solar energy systems under the state Solar Initiative. SUPPORT - DEAD FOR THE YEAR

AB 887 De La Torre (D) Requires a redevelopment agency to comply with certain notification requirements prior to adopting a resolution of necessity for the purposes of acquiring property by eminent domain, and with a specified time prior to taking certain action relating to redevelopment. Requires the agency to provide certain relocation assistance to small businesses that are displaced by redevelopment and do not participate in the redevelopment project. SUPPORT - DEAD FOR THE YEAR

LEGISLATIVE WRAP-UP; OPPOSED BILLS SENT TO GOVERNOR

The following bills that were OPPOSED by the commercial, industrial, retail real estate industry have been sent to the Governor. We will be requesting the Governor VETO these bills:

AB 5 Wolk (D) Renames the Reclamation Board and requires the new board to work independently of the Department of Water Resources. Requires the department to prepare, and the board to adopt a schedule for mapping areas at risk of flooding in the Sacramento River and San Joaquin River drainage and a flood control system report for the State Plan of Flood Control. Requires a local agency responsible for project levees to submit a specified report to the department. Relates to flood control project enhancements. OPPOSE - TO THE GOVERNOR

AB 8 Nunez (D) Creates the Cooperative Health Insurance Purchasing Program as a statewide purchasing pool for health care coverage by employers. Requires employers to make health care expenditures equivalent to 7.5% at a minimum of the employer's total social security wages or, to elect to pay an employer fee of that equivalent amount. Expands the program to children eligible for Healthy Families and persons eligible for Medi-Cal. Requires guaranteed issue of individual health insurance and small employer coverage. OPPOSE - TO THE GOVERNOR

AB 35 Ruskin (D) Enacts the Sustainable Building Act of 2007. Requires a state agency that commences construction of a state building, or renovation of a state building, to design, construct, and operate the building to meet, at a minimum, applicable certification standards described in the U.S. Green Building Council's Leadership in Energy and Environmental Design for a gold rating. Authorizes the agency to consider existing relevant information and guidelines and to provide for credits for the use of specified products. OPPOSE - TO THE GOVERNOR

AB 48 Saldana (D) Relates to the Electronic Waste Recycling Act of 2003. Revises the definition of electronic equipment for purposes of being sold or offered for sale to mean a device that is dependent on electric currents or electromagnetic fields to work properly or that is a device for the generation, transfer, or measurement of electronic current or fields that meets specified requirements. Exempts specified equipment from these provisions. Requires regulations relating to the manufacturers of such devices. OPPOSE - TO THE GOVERNOR

AB 70 Jones (D) Provides that a city or county may be required to contribute its fair and reasonable share of the property damage caused by a flood to the extent that it has increased the state's exposure to liability for property damage by unreasonably approving new development in a previously undeveloped area that is protected by a state flood control project, unless the city or county meets specified requirements. OPPOSE - TO THE GOVERNOR

AB 343 Solorio (D) Requires the State Department of Health Care Services and the Managed Risk Medical Insurance Board to collaborate to transmit to the Legislature a report identifying all employers who employ 25 or more persons who are, or support, beneficiaries of Medi-Cal, Healthy Families, or Access for Infants and Mothers programs. OPPOSE - TO THE GOVERNOR

AB 349 Salas (D) Provides that a translation in English of an instrument executed or certified in whole or in part in any language other than English may be presented to the county clerk for verification that the translation was performed by a certified or registered court interpreter or by an accredited translator. Authorizes the clerk to charge a specified fee for verification and certification of each document, or a greater amount if necessary to cover related costs. Requires a specified notarized declaration. OPPOSE - TO THE GOVERNOR

AB 504 Swanson (D) Requires employers, other than the state and its political subdivisions, that are convicted of a crime involving fraud, misrepresentation, or misconduct related to a lockout to make restitution to employees for lost wages and benefits. OPPOSE - TO THE GOVERNOR

AB 546 Brownley (D) Relates to the Electronic Waste Recycling Act of 2003 that requires each manufacturer of a covered electronic device to make information available to consumers. Requires a retailer to provide a customer with specified information regarding such device, including the Integrated Waste Management Board's Web site and to provide this information with the sales receipt. Requires the manufacturer to provide such information and other information in the instruction manual, and in the final product packaging. OPPOSE - TO THE GOVERNOR

AB 665 DeSaulnier (D) Requires the University of California Transportation Center produce a report on the best practices of transportation-land use planning and growth management, that includes specified criteria. Requires the Department of Housing and Community Development to produce a Growth Management Information Report using key indicators of growth by region as guide, and to also provide the report to the transportation and housing committees of the Legislature. OPPOSE - TO THE GOVERNOR

AB 715 Laird (D) Requires unnecessary water pipes be run when installing a waterless urinal. OPPOSE - TO THE GOVERNOR

AB 763 Saldana (D) Recasts the specified prohibitions and makes other technical changes to the Subdivision Map Act, which prohibits a legislative body from approving a final map for a subdivision to be created from the conversion of residential real property into a condominium project, a community apartment project, or a stock cooperative project, unless there has been compliance with certain tenant notice requirements. OPPOSE - TO THE GOVERNOR

AB 779 Jones (D) Amends existing law which imposes certain duties upon persons or businesses to destroy customer records, maintain security, disclose a breach of security and provide information to a customer regarding disclosure of information to 3rd parties. Prohibits a person, business or public agency that sells goods or services to any state resident and accepts a credit card, debit card, or other payment device, from storing, retaining, sending or failing to limit access to related information. Requires notification. OPPOSE - TO THE GOVERNOR

AB 888 Lieu (D) Mandates that all commercial building above 50K s.f. be built to LEED Gold standards.. OPPOSE - TO THE GOVERNOR

AB 1058 Laird (D) Requires the Department of Housing and Community Development to develop green building standards for residential occupancies and submit them for review, adoption, approval and publication. Requires the standards to include measures regarding energy, water, materials, resources efficiency, indoor environmental quality, innovation and design processes, nonmotorized transportation, and a method to determine lifecycle cost. Authorizes related local entity education and assistance. OPPOSE - TO THE GOVERNOR

AB 1673 Feuer (D) Requires a retail seller that sells goods to the public in this state and indicates the availability of a rebate for an item of merchandise by displaying or advertising the net price of the item after redemption of the rebate to discount, at the time of sale, the sale price of the item by the amount of the rebate in exchange for the consumer transferring the right to the rebate to the seller. Provides an exemption for vehicle dealers. OPPOSE - TO THE GOVERNOR

SB 622 Padilla (D) Prohibits willful misclassification of employees as independent contractors to avoid existing law which relates to minimum wages, overtime compensation and standards for working conditions for the protection of employees applicable to an employment relationship. Authorizes the Labor and Workforce Development Agency to assess specified civil penalties from persons or employers for violations. OPPOSE - TO THE GOVERNOR

SB 719 Machado (D) Increases the membership of the San Joaquin Unified Air Pollution Control District Board. Requires each member of the to be appointed in accordance with certain requirement. Prohibits a member from designating an alternative for any purpose or otherwise being represented by another person in his or her capacity as a member of the district board. OPPOSE - TO THE GOVERNOR

SB 803 Lowenthal (D) Requires transportation planning agencies, county transportation commissions or authorities, and congestion management agencies to give priority in the selection of transportation enhancement projects to the sponsors of eligible projects that partner with a community conservation corps or the state Conservation Corps, areas not served by a community or conservation corps, to construct or undertake the project. OPPOSE - TO THE GOVERNOR

SB 862 Kuehl (D) Requires the Department of Water Resources to prepare and deliver to all State Water Project contractors, all city and county planning departments, and all regional and metropolitan planning departments a report that accurately sets forth the delivery capability of project facilities. Relates to diversions of water for small domestic or livestock stockpond uses. Adds requirements for the State Water Plan for a specified year. Adds utilities to the list of entities for coordination on local water plans. OPPOSE - TO THE GOVERNOR

SB 936 Perata (D) Relates to existing law that creates the Workers' Compensation System and requires the payment of disability benefits to eligible individuals for injuries sustained in the course of employment that cause permanent disability, and specifies that the amount of those payments be computed in accordance with a prescribed formula. Revises the formula for computing those payments for injuries causing permanent disability, which occur on or after a specified date. OPPOSE - TO THE GOVERNOR

SB 1001 Perata (D) Relates to regional water boards and their responsibilities under the federal Clean Water Act and Porter-Cologne. Requires the State Water Resources Control Board, with the Department of Finance, to prepare a detailed report on the financial basis and programmatic effectiveness of its water quality programs. Requires the Legislative Analyst's office to prepare a report on the financial basis and programmatic effectiveness of the board's fee-based water quality programs. Requires related regulations. OPPOSE - TO THE GOVERNOR

AB 843 Eng (D) Provides that the penalty under the Property Tax Law for failing to file a change of ownership statement applies if the transferee fails to file the statement within a specified number of days of a request by the assessor. Requires the State Board of Equalization to consult with interested parties before prescribing the contents of a change in ownership statement. Provides a penalty caps for nonwillful failure to file. Requires the Board of Equalization to prescribe the contents of the ownership report. OPPOSE - TO THE GOVERNOR

SB 180 Migden (D) Permits agricultural employees, as an alternative procedure, to select their labor representatives by submitting a petition to the Labor Board accompanied by representation cards signed by a majority of the bargaining unit. Requires the board to conduct an immediate investigation to determine whether to certify the organization as the exclusive representative. Extends the existing prohibitions and penalties to employers who engage in unfair labor practices with regard to a majority sign up election. OPPOSE - TO THE GOVERNOR

STRATEGIC ISSUES CONFERENCE: GLOBAL WARMING AND THE BUSINESS OF REAL ESTATE

Four major industry groups are combining forces to sponsor a high level discussion regarding the impacts of “global warming” policy 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.

Click here to see the Strategic Issues Conference Website.

Joint sponsors for this event include: Building Owners and Managers Association of California (BOMA California), California Business Properties Association (CBPA), California Building Industry Association (CBIA), 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 Special Guest Speaker

FRIDAY, NOVEMBER 2, 2007
8:00 a.m. – 9:00 a.m. Breakfast with Special Guest Speaker
9:00 a.m. – 11:30 a.m. Panel Presentations
* Building Green/Green Building Policies
* CEQA / AB 32
11:30 a.m. – 1:00 p.m. Luncheon with Special Guest Speaker

For early-bird registration information and special room rates, please contact Tracy Fujii at CBPA, 916-443-4676, or tfujii@cbpa.com. Hotel reservations need to be made by October 1, 2007.

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