HAZARDOUS MATERIALS ENVIRONMENTAL FEE COMING YOUR WAY

If you are one of those types that think taxes are too low and not enough of you money goes to the government, then this story will make you happy. If not, brace yourself. Regulations recently promulgated by the Department of Toxic Substances Control (DTSC) expands a little know fee call the “Hazardous Materials Environmental Fee,” to every company in California with more than 50 employees, regardless of the company’s activity or actual exposure to hazardous materials.

The law which authorizes collection of the fee quite clearly restricts application to organizations that “use, generate, store, or conduct activities in this state related to hazardous materials….,” and a reasonable interpretation of this section would dictate the fee apply only to those companies that directly handle hazardous materials. That, however, is not the case.

BOMA California has learned that the statute has been so “broadly” interpreted that DTSC has decided that any company with 50 or more employees will now be subject to the fee because they must somehow have exposure to hazardous materials. When directly asked for examples of why such companies would be subject to this fee, “fluorescent lights and copy machine toner,” was the response. Never mind the fact that you already pay a recycling fee for those materials.

In an “only in Sacramento,” twist this fee, which ranges from $262 to more than $12,500 depending on the size of company, will now be applied to a company with fifty white-collar office types but would not be applied to a manufacturer producing and storing hazardous waste with only 49 employees.

We believe that the hazardous materials environmental fee in question contains little, if any nexus between the fee payor and regulatory activity necessitated by the fee payor’s actions, and accordingly, imposes a tax, and are fighting its imposition on California businesses that have no exposure to hazardous materials.

A broad-based coalition including CBPA, BOMA California, the California Chamber of Commerce, Cal-Tax, and several other groups are seeking remedy to this fee. We are hopeful this issue can be resolved administratively but are also prepared to argue, in several different venues, that this is an overly broad interpretation of statute, that the regulations promulgated by DTSC are overreaching, and application of this fee to companies based on size is an unfair taxation that will hurt the economy of this state.

We understand more than 7,000 letters are going to companies in January. Please let us know if you receive one. And if you believe your company should not be subject to such a fee, appeal it.

Read more about the fee.

 

A GREAT YEAR IF YOU LIKE SPECIAL SESSIONS

2008 is shaping up to be a great year for those of us who love Special Legislative Sessions. Joining the highly productive [tongue planted firmly in cheek!] Special Session on Water and Special Session on Health Care, the Governor and Legislature have opened another Special Session to address the state’s budget deficit, which has grown to more than $14.5 Billion.

SPECIAL SESSION ON FISCAL EMERGENCY

The special session for a fiscal emergency is governed by Proposition 58, the 2004 ballot measure, which reads: "If the Legislature fails to pass and send to the Governor a bill or bills to address the fiscal emergency by the 45th day following the issuance of the proclamation, the Legislature may not act on any other bill, nor may the Legislature adjourn for a joint recess, until that bill or those bills have been passed and sent to the Governor." The 45 day period ends on February 24th, but no one seems to be certain what happens at that time.

Those who watch every move of the Governor and Legislature think there is already back room deals happening on the budget that may include health care and term limits. The incredibly measured response by majority party leaders to the Governor’s across-the-board reductions in his January budget was, uh, out of character. And now with the Governor doing a one-eighty on the Prop 93 the Term Limits Measure, the wild speculation by political pundits is that it is in everyone’s “best interest” to resolve the budget crisis as efficiently as possible.

EMINENT DOMAIN BATTLE IMMINENT

The first and more far-reaching of two competing ballot measures restricting the use of eminent domain by local governments has qualified for the June ballot. The "California Property Owners and Farmland Protection Act" has been approved by the Secretary of State’s Office after counties checked a random sample of petition signatures.

This measure would ban almost all uses of eminent domain to take property for private uses such as shopping centers. It is sponsored by a coalition including the California Farm Bureau and the Howard Jarvis Taxpayers Association. A competing measure, supported mainly by the California League of Cities, would bar seizure of owner-occupied residences for private purposes, is very close to qualifying for the ballot. Watch for lots fireworks.

GREEN CALIFORNIA SUMMIT AND EXPOSITION

Builders, property managers, developers, facilities managers and others involved in real estate should not miss the Green California Summit (April 7-9, Sacramento Convention Center). The event, guided by an Advisory Board that includes senior state officials and leaders from the real estate community, combines an exposition featuring hundreds of green products and services with seminars and training. Discover green tools that can save you money, preserve the environment and give you a competitive edge - and find out about regulations and policy that are changing the industry. For more information click here.

HELP GRAD STUDENT WITH ADA RESEARCH PROJECT

A grad student at the University of San Francisco has asked our Association for help with a project she is doing as part of an independent research project regarding title III of the American's with Disabilities Act and how it affects business owners and managers in California. She has designed a simple survey and hopes that you might take some time to provide information to assure her results are as robust as possible. If you are willing to help out a young researcher, you can find the survey here.

BOMA CALIFORNIA CALENDAR 2008

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