MAJOR LEGISLATIVE DEADLINE

Today marks one of the busiest legislative deadlines in the California legislative process, the First House Policy Deadline (Fiscal). All bills that have a cost impact, which is most of them, must be through their first policy committee or they are “dead.” This means that the thousands and thousands of bills that have been introduced since January are discussed and voted on publicly. The reality, however, is that this deadline is not the policy filter it once was and most bills, especially those authored by someone in the majority party, move along regardless of concerns expressed. To illustrate, here is a direct quote from the dais at a hearing yesterday; “I think this bill needs a lot of amendments and is not ‘ripe’ to move along, but I will vote for it today because I support the author’s intent.” Look for a comprehensive report next week -- we need some time for the dust to settle to catch up with all the recent action.
 

AUTHOR PULLS BILL EXAMINING ‘SPLIT ROLL’ TAX

Strong opposition from the business community stopped the author of a split roll property tax “study” bill from pursuing a committee hearing. Leaders in the California State Legislature are seriously considering reviving the thoroughly discredited notion of dumping the protections provided in Proposition 13 and attempting to impose a split-roll property tax that would choke California businesses. A large business coalition argued that an objective examination of Proposition 13 shows that property taxes in California are one of the most reliable and stable funding sources and penalizing non-residential properties by taxing them at a less predictable and higher rate would be detrimental to the state’s economy.

Although this bill was defeated, the split roll threat remains as several influential legislators continue to advocate the issue as part of the fix to California's budget mess. California Business Properties Association (CBPA) along with the CalChamber, CA Taxpayers Assn, the Small Business Action Committee, and the Howard Jarvis Taxpayers Assn have created a coalition to fight this ill-advised proposal wherever it appears.
 

ABANDONED COMMERCIAL PROPERTY BILL PASSES ASSEMBLY

AB 2025 (R-Silva; Huntington Beach) which revises the process by which abandoned property that is left behind in a commercial setting is disposed of, unanimously passed the Assembly Floor. BOMA California is the sponsor of this bill. Current law provides a process for a building owner to hold a public auction to dispose of abandoned property deemed to be worth more than $300 and treats residential personal property in the same manner as non-residential commercial property, even though the residential setting is very different from the business setting and has very different scenarios under which property is left behind. This bill would raise the threshold to trigger a public auction in the commercial setting to the monthly rent or square footage of the leased space.
 

AB 32 ELECTRICITY AND NATURAL GAS WORKSHOP

The Climate Action Team (CAT) Subgroup on Electricity and Natural Gas, in conjunction with Air Resources Board (ARB) staff, invite you to participate in a public workshop to discuss greenhouse gas (GHG) reduction measures pertaining to the electricity and natural gas sectors. The GHG reduction measures presented in this workshop are proposed for possible inclusion in the AB 32 Scoping Plan, and include energy efficiency, renewables, combined heat and power, and other forms of distributed generation. Although we will be represented at this workshop, companies and organizations from industry are encouraged to attend. Entities that have “good” ideas on how to regulate your business should show up in droves. The more people from industry that can participate to provide context and information, the better. Click here to view the formal workshop notice and get meeting logistical information.
 

SENATE REPUBLICAN LEADERSHIP ANNOUNCED

Senate Republican Leader Dave Cogdill (R-Fresno) officially took his new position this week, and announced members of the Senate Republican Caucus Leadership Team, stating that his Caucus will “benefit from the knowledge, experience, and dedication of the following Republican Senators:”

Senator George Runner (Antelope Valley) – Caucus Chair
Senator Tom Harman (Huntington Beach) – Caucus Whip
Senator Mark Wyland (Carlsbad) – Assistant Leader
Senator Jim Battin (La Quinta) – Vice Chair Rules
Senator Dave Cox (Fair Oaks) – Vice Chair Appropriations
Senator Bob Dutton (Rancho Cucamonga) – Vice Chair Budget
Senator Roy Ashburn (Bakersfield) – Vice Chair Revenue and Taxation

BOMA California congratulates Senator Cogdill for ascending to this important post and look forward to continuing to work with him and his team to advocate issues of importance to the business community and economy of California.
 

OUTGOING REPUBLICAN LEADER’S BIGGEST ACCOMPLISHMENT

Outgoing Senate Republican Leader Dave Ackerman (R- Tustin), when asked by a reporter to name his biggest accomplishment, quipped: “Trying to stop as much bad business legislation as we could.” Although the answer was meant to deflect self-aggrandizement by the typically relaxed and humble Ackerman, there is much truth to the comment, and we thank Mr. Ackerman for all the “bad business legislation” he was able to stop under very trying circumstances. Throughout Ackerman’s tenure in the Legislature he was known as a principled politician, skilled negotiator, and “old school” gentleman. We wish him the best as his term winds-down and look forward to working with him in his next endeavor.
 

GREEN STANDARDS LEGISLATIVE MANDATES

Advocates of one specific third party building standard or another continue to be active in the California Legislature trying to codify their favorite standard. We continue to argue that the State should remain “certification neutral” and not dampen competition and innovation by adopting a specific program, but instead should focus efforts on the regulatory process and assure that the statewide green building codes currently being adopted are cost-effective and feasible. AB 888 (Lieu; D-Torrance) from 2007 which was vetoed last year and AB 2393 (Hancock; D-Berkeley) from the current year both propose to supplant state building codes and bypass the public review process by mandating the state adopt standards such as LEED or Build It Green.
 

PROPOSED GREEN BUILDING STANDARDS – FEEDBACK NEEDED

In an effort to reduce green house gas emissions and promote sustainable buildings, the California Building Standards Commission (BSC) is currently conducting an annual building code adoption cycle that includes a new California Green Building Standards Code (CGBSC). The CGBSC is scheduled for adoption sometime this summer. When published, the CGBSC will contain green building standards for single family homes, schools, health facilities, and commercial buildings (commercial also includes industrial and retail real estate). Developed as a framework upon which to be built and refined further, the standards will initially be voluntary, however, it is the intent of the BSC to develop mandatory green building standards in subsequent code adoption cycles.

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

Since the intent is that these codes eventually become mandatory, it is very important that members of our industry read these regulations and identify issues that the BSC should consider. BOMA California will again 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 Tuesday, May 6.
 

BOMA CALIFORNIA 2008 CALENDAR

TUESDAY, JUNE 10 & WEDNESDAY, JUNE 11, 2008 —
BOMA California Board Meeting & CA Commercial Real Estate Summit
Sacramento (Hyatt Regency)
Times and locations TBA

OCTOBER/NOVEMBER, 2008 (DATE TBD) —
BOMA California Annual Meeting
Times and location TBD
Los Angeles