BOMA CALIFORNIA Weekly Update 👋

LOCAL ASSOCIATIONS

Greater Los Angeles

Inland Empire

BOMA California

Weekly Update

June 10, 2022

UNEMPLOYMENT INSURANCE DEBT - REQUEST FOR MORE FUNDS
WAREHOUSE/LOGISTIC CENTER BAN- AMENDMENTS
WAREHOUSE/LOGISTIC CENTER BAN - SENATE GOV AND FINANCE
CALIFORNIA COMMERCIAL REAL ESTATE SUMMIT – AUGUST 9-10, 2022
BOMA CALIFORNIA CALENDAR 2022

Unemployment Insurance Debt -

Request for More Funds

We are part of a large CalChamber led coalition requesting $10 billion for Unemployment Insurance Fund (“UI Fund”) relief be included in the 2023 budget. We are asking for both short-term and long-term relief, as it is imperative to staving off the consequences of the UI Fund’s debt.

Specifically, we are asking for $1B to reimburse employers for the 2023/20024 tax increases. This would cover the payroll tax increases caused by the UI Fund’s Debt. Additionally, we are requesting $9B to reduce the outstanding debt and address future tax increases in 2025 and beyond.

Now is the time to protect California’s fledgling recovery by taking action on California’s UI Fund. California’s businesses are trying to re-hire and rebuild – and increasing per-employee taxes will only slow that recovery. Moreover, such spending is a win-win because it will simultaneously avoid Gann limit concerns and will help reduce the state’s future budget obligation.

Reach out to your local legislators and let them know this is important to your business. They need to hear from you!

To see the entire coalition and read our budget request letter, click here.

Warehouse/Logistic Center Ban -

Amendments

AB 2840 (Reyes) the bill that would create a de facto ban on most new warehouse and passed the Assembly Floor with the minimum votes and we are helping to lead a large coalition of businesses to stop this bill. In order to get it out of her own House, the author severely narrowed the bill and it limped out.

In the plainest language, AB 2840 attempts to stop the building of any facility 100,000 s.f. or more within 1,000 ft of a “sensitive receptor,” which has a broad definition but is basically most non-industrial uses in Riverside County, San Bernardino County, and all cities therein. Additionally, all projects that are not banned due to proximity to a sensitive receptor must have a skilled and trained workforce agreement to be approved.

This language does nothing to fix the negative impact this bill would have on our industry and the State as a whole, if you break one link the supply chain the reverberations will be felt in every county throughout the State.

Even if your company doesn’t build/own these types of facilities, the precedent set by this bill will have a huge impact on all commercial real estate projects in the future.

The bill was also assigned to a committee yesterday, read below for more information!

Warehouse/Logistic Center Ban -

Senate Gov and Finance

AB 2840 has been assigned to the Senate Governance and Finance Committee and will be set for a hearing in the next couple weeks.

CBPA was actively urging the Senate Governance and Finance Committee to review the bill over concerns that it upends local planning authority for cities and counties, as well as undermines the nation’s strictest environmental law, CEQA.

Our focus is now on the 5 Senators sitting on this committee, including the Chair, Senator Caballero, along with Neilson, Durazo, Wiener, and Hertzberg. If you have contacts with these legislators now is the time to reach out.

We are working around the clock with all our coalition members, including CalChamber, CBPA, NAIOP, CBIA and many more to kill this bill. We are now contacting Senate offices to clarify the negative impact this bill would have on their constituents locally and the state, even if they don’t reside in the affected counties and cities.

Stay tuned for information on when this bill gets set for a hearing. We are in a 3 week sprint to defeat this bill!

THANK YOU to all of you who have helped on this bill, and please stay tuned for more AB 2840 information in the coming weeks.

California Commercial Real Estate Summit -

August 9-10, 2022

The California Commercial Real Estate Summit (CCRES) previously schedule for early June, is now scheduled for August 9-10, 2022.

We apologize for the postponing, lingering impacts of COVID restrictions made space availability an issue and the proximity with the primary election and a change in the legislative schedule was not conducive to securing meetings with legislators.

We respect your time, and we did not want to ask you to travel to Sacramento unless it would be worth the effort and expense. We believe August is a better time this year.

Thank you for your flexibility and understanding that postponing CCRES is the prudent thing to do, we apologize for any inconvenience this causes.

CCRES is the one time of year that industry leaders from all sectors of the commercial, industrial, and retail real estate industry join come together from across the nation and hear from top policymakers and California State Legislators.

In the very near future, more information on hotels, meeting space, and agenda items for the event will be provided as we prepare for a great CCRES!

We look forward to seeing you there!

BOMA California Calendar 2022

August 9, 2022

BOMA California Board Meeting, Sacramento

August 9-10, 2022

California Commercial Real Estate Summit, Sacramento

June 25-28, 2022

2022 BOMA International Conference & Expo, Nashville, TN

November 15, 2022

CBPA Board Meeting & Post-Election Wrap Up, TBD

November 15, 2022

BOMA California Board Meeting, TBD