BOMA California Government Affairs Representative Matthew Hargrove Talks with BOMA San Francisco GAPAC Members

Matthew Hargrove, Sr. Vice President of Government Affairs for BOMA California

Matthew Hargrove and Debbie Shea, GAPAC Vice Chair.

Matthew Hargrove, Sr. Vice President of Government Affairs for BOMA California (which is federated with the California Business Properties Association) updated BOMA San Francisco Government and Public Affairs Committee members today on his efforts to protect the commercial real estate industry from egregious  public policy at the state level.  The following are the highlights from today's meeting:


BOMA California - The Voice of Commercial Real Estate in California

BOMA California preserves and promotes the interest of California commercial real estate professionals through legislative and regulatory advocacy in Sacramento.  BOMA California is a federation of all eight metropolitan BOMA local associations in California and serves as the collective membership's legislative and regulatory advocate.  

BOMA California was created in the 1980's when representatives from several metropolitan BOMA's found themselves in Sacramento at the same time, testifying on the same legislative issues affecting the commercial real estate industry. In an effort to have the industry speak with one unified voice, in a cost efficient manner and with greater authority, the leaders of several of the local associations decided to create BOMA California.

To date, BOMA California has been effective on a wide variety of issues including forced access by telecommunications companies, energy deregulation, split roll property taxes, mandatory statewide fire sprinkler retrofit requirements, toxic mold liability, enhanced disabled access requirements, and much, much more.

The View of the Industry from Sacramento

Mr. Hargrove pointed out that the elected representatives in the California State Legislature are, in aggregate, left-leaning, and view the commercial real estate industry as an easy target for overbearing legislation that doesn't take into account how the industry operates.  "To the Legislature, we are the big bad commercial real estate industry" stated Mr. Hargove.  Due to their lack of understanding of the industry, California's elected officials do not consider the subcategories of real estate industry, (i.e., commercial, industrial, etc.), but view it in only two ways: residential and non-residential.  The lack of distinction that is inherent within most legislation lends credence to the need for BOMA California, and the hard work that Mr. Hargrove does for the industry.


The Legislative Process

The legislative process at the State Capitol can give even the most seasoned advocate a serious case of heartburn.  Mr. Hargrove stated that about 2000-2500 bills are introduced every legislative session (2900 in 2009!), and each one has to be read and analyzed by BOMA California to measure its potential impact to the California commercial real estate industry.  In addition, continued Hargrove, each bill is, on average, amended 5 times as it travels through the various committees in both the Senate and the Assembly, and possibly to the Governor's desk.

In 2009, Mr. Hargove stated that he identified 500 bills that impacted the commercial real estate industry in various ways, with 150 deemed important enough for BOMA California to support or oppose; testify in committee meetings to the commend the measure's merits (or the more often lack thereof); and, to try to promote or 'kill' a bill if they were able to get to the Governor's desk for his signature.  Luckily, Mr. Hargove elaborated, zero bills were signed by Governor Schwarzenegger this year that BOMA California opposed. 

Please click here to view the BOMA California Issue Summary and Legislative Session Update for 2009.


AB 32 - The Global Warming Solutions Act & The Effects Thereof

Interestingly, Mr. Hargove elaborated, five years ago, issues that targeted the commercial real estate industry were accomplished via the legislative process.  Now, Mr. Hargrove has noticed that the powers that be are pushing commercial real estate reform in another way: through the regulatory agencies (e.g., the California Air Resources Board).  This conversion is an important one Mr. Hargrove noted, as the power for change has moved from the elected officials at the Capitol to the regulatory agency bureaucrats who are charged with implementing a new law. 

Enacted in 2006, Assembly Bill 32, The Global Warming Solutions Act (AB 32) has become the de facto reference point for any legislation that even remotely touches upon 'green' issues such as climate change, energy efficiency and the like. Prior to AB 32, environmental groups were disparate in their approach; since its passage, the legislation has assisted these 'green' groups in streamlining their efforts and, together, they are  using it as a backdrop for pushing their respective agendas through the legislature.

"It's difficult to find a consensus on industry issues with legislators and environmental advocates since the passage of AB 32" Hargrove said, "everything is connected to the polar bears and their plight!"

Split Roll

Mr. Hargrove talked about the ominous cloud of split roll taxation that may qualify for the 2010 statewide ballot.  We've posted detailed information about this issue on the blog recently.  Please click here to read what may be in store and why we need all the resources we can get to effectively quash any potential threat to the status quo!

BOMA San Francisco is a proud member of BOMA California.  We appreciate the Matthew Hargrove's tireless efforts on behalf of the commercial real estate industry in California, and we always look forward to working with him.