Tuesday, June 22, 2010

California Legislature - Priority Bills

BOMA San Francisco Members:

Your BOMA Advocacy Team and fellow BOMA San Francisco members will be in Sacramento this week for the 2010 California Commercial Real Estate Summit to talk to our elected Bay Area leaders in the California State Legislature on the following priority measures (click on the links below to review the bills):


AB 1693 by Assemblymember Fiona Ma  (D-San Francisco)

Measure will modify the code adoption cycle and extend it to an 18 months process, adding 3 month to the interim update process. This will allow more time to write consider new code impacts before adoption, and provide additional time for education and training.

SB 476 by Senator Lou Correa (D - Santa Ana)

Measure will help move forward construction and redevelopment projects by updating and clarifying procedures in the environmental permit process. Protects a previously occupied retail structure and associated parking lot when an alteration or reuse will improve the energy efficiency or reduce the greenhouse gas emissions of the existing structure and associated parking lot, provided the alterations will not result in a material increase of the footprint or floor area ratio of the existing retail structure and associated parking lot.


AB 737 by Assemblymember Wes Chesbro (D - Eureka) 

Mandatory Commercial Recycling. Although our industry supports commercial recycling, this measure in redundant and unnecessary in that the new CalRecycle department is finalizing regulations that will enact such a requirement. Furthermore, this measure will require the department , to ensure that 75% of all solid waste generated is source reduced, recycled, or composted. This high rate of mandated diversion is a concern. 

AB 2492 by Assemblymember Tom Ammiano (D - San Francisco) 

Split Roll Property Tax. Measure will instead specify that when 100% of the ownership interests in a legal entity, as defined, are sold or transferred in a single transaction, as specified, the real property owned by that legal entity has changed ownership, whether or not anyone legal entity 01' person that is a patty to the transaction acquires more than 50% of the ownership interests. The bill would require the State Board of Equalization to notify assessors when a change ill ownership as so described occurs. This bill is at best redundant of current law - at worst, it is a fundamental change in commercial protections afforded under Proposition 13.

SB 1316 by Senator Gloria Romero (D - Los Angeles)

This measure takes California out of conformity with federal law for 1031 Like-Kind Exchanges. Measure will exclude any exchange of out-of-state real property that is purchased in exchange for real property located in California. Measure provides a disincentive for new investment ill California property, puts current property owners at a disadvantage for using a common tax practice, would generate retaliation from other states, and most likely violates the Commerce Clause of the U.S. Constitution.

Thank your to our partners at BOMA California for their continued hard work in Sacramento.  If you have any questions on these measures, please contact Matthew Hargrove at mhargrove@cbpa.com.  

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