In This Issue:

• CALIFORNIA UNEMPLOYMENT RISES TO 11.5% IN MAY

• CALL TO ACTION! INDEPENDENT CONTRACTOR TAX WITHHOLDING

• NEW LAW REQUIRES DISCLOSURE OF LICENSE ID NUMBER

• DRAFT LICENSE DISCLOSURE REGULATIONS

• GREEN BUILDING STANDARDS 2009 – FEEDBACK NEEDED

• CBPA 2009 CALENDAR

CALIFORNIA UNEMPLOYMENT RISES TO 11.5% IN MAY

The highest since World War II, only four states have higher unemployment rates than California. The national jobless rate is 9.4%. Gulp.
 

CALL TO ACTION! INDEPENDENT CONTRACTOR TAX WITHHOLDING

Earlier this week, the joint legislative committee on the budget (Budget Conference Committee) passed, by party-line vote, a series of tax proposals by Democrats that will be extremely harmful to employers and the economy.

Two of these proposals would impose a costly new mandate on ALL employers to withhold and remit to FTB 3% of all payments made to independent contractors (outside businesses providing goods/services). For independent contractors where there is an issue with their taxpayer identification number, an additional 7% withholding would be required (for a total of 10%).

This is a particularly bad idea because it would force struggling small businesses to loan money to the state. Withholding accelerates tax revenue to the state or collects revenue that will have to be refunded – equivalent to a low interest loan on the backs of small businesses. The proposal would also create a costly new mandate for private and public sector employers who use independent contractors and thus discourage employers from hiring small businesses.

At a time when our state unemployment rate is approaching the highest level ever, the imposition of a new cost burden on private and public sector employers who use independent contractors, and the threat to small businesses created by the proposal, runs counter to our need to encourage economic recovery and stimulate job growth.
The full legislature may vote on the independent contractor tax withholding proposals as early as this coming Monday, June 22, 2009.
All of the statewide real estate organizations are part of a coalition to oppose this bad idea. If you would like to add your company name to the letter, please send me your company name and logo, by 10:00 a.m. Monday, June 22, 2009. TAKE ACTION NOW! JOIN THE COALITION!
 

NEW LAW REQUIRES DISCLOSURE OF LICENSE ID NUMBER

*** If you are a licensed real estate agent in the State of California you must be aware of this new law:

On July 1, 2009, all real estate licensees will be required to follow newly mandated statewide disclosures. Sponsored by the California Department of Real Estate (DRE) and enacted by SB 1461 (Negrete McLeod; D-Chino), the new law requires a real estate licensee to disclose his or her DRE license number on all "solicitation materials intended to be the first point of contact with consumers" and on real property purchase agreements when acting as an agent in those transactions.

The law states that a licensee must disclose his or her license identification number on purchase contracts, business cards, stationery, advertising fliers, and other materials designed to solicit the creation of a professional relationship between the licensee and a consumer. The bill excludes advertisement in print or electronic media and “for sale” signs.

The DRE claims the disclosure is necessary due to the fact that with over 500,000 licensees in California, many with the same or similar names, it is sometimes difficult for consumers and licensees alike to verify the license status of those with whom they are dealing.
 

DRAFT LICENSE DISCLOSURE REGULATIONS

The Department of Real Estate is in the process of developing regulations to implement the law above – to clarify what materials are needed to contain a licensee’s identification number. These have not been adopted yet, so if you see any opportunity for improvement, please send comments by responding to this email:

ADOPT SECTION 2773 TO READ:

Section 2773. Disclosure of License Identification Number on Solicitation Materials – First Point of Contact with Consumers.

(a) A real estate broker or salesperson, when engaging in acts for which a license is required, shall disclose its, his or her real estate license identification number on all solicitation materials intended to be the first point of contact with consumers. If the name of more than one licensee appears in the solicitation, the license identification number of each licensee shall be disclosed.
Solicitation materials intended to be the first point of contact with consumers, and in which a licensee must disclose a license identification number, include the following:

(1) Business cards;
(2) Stationery;
(3) Websites owned, controlled, and/or maintained by the soliciting real estate licensee; and
(4) Promotional and advertising fliers, brochures, email and regular mail, leaflets, and any marketing or promotional materials designed to solicit the creation of a professional relationship between the licensee and a consumer, or which is intended to incentivize, induce or entice a consumer to contact the licensee about any service for which a license is required.
The type size of the license identification number shall be no smaller than the smallest size type used in the solicitation material.
(b) For the purposes of Business and Professions Code Section 10140.6, solicitation materials do not include the following:
(1) Advertisements in electronic media (including, without limitation, radio, cinema and television ads, and the opening section of streaming video and audio);
(2) Print advertising in any newspaper or periodical; and
(3) “For Sale” signs placed on or around a property intended to alert the public the property is available for lease, purchase or trade.
Note: Authority cited: Section 10080, Business and Professions Code. Reference: Section 10140.6, Business and Professions Code.
 

GREEN BUILDING STANDARDS 2009 – FEEDBACK NEEDED

In an effort to promote sustainable buildings, last year California became the first state in the nation to adopt a statewide Green Building Code. Known as CalGreen, it is already being updated. Your input is critical.

Your analysis and feedback is needed on the proposed changes for non-residential properties. To read the proposed changes for California Green Building Standards Code, Part 11, Title 24 -- Commercial, Industrial, and Retail Real Estate, click here.

It is very important that members of our industry read these regulations and identify issues that members of the Building Standards Commission should consider. We will compile industry comments and provide written and verbal testimony. Please send any and all comments by replying to this email or sending directly to Matthew Hargrove. Comments are due to CBPA by no later than Wednesday, July 1.
 

CBPA 2009 CALENDAR

November 5-6, 2009
CBPA Board Meeting and
Real Estate Industry Strategic Issues Conference
Napa, CA (Meritage)