Building Owners and Managers Association

Improving the Performance of the Commercial Real Estate Industry
Job Killers Still Alive
Monday, July 20, 2015
by: Robin Jochims

Section: Association Business

Although we take every opportunity to find bills that we support, it seems that much of our time is spent pushing back and opposing bills that would make the business climate in California even more difficult. We work closely with the California Chamber and other business groups to try to fix or defeat these measures. Here are the bills that we are tracking that are still moving and are also on the CalChamber’s Job Killer list:

Increased Labor Costs
SB 3
(Leno; D-San Francisco/ Leyva; D-Chino)
Automatic Minimum Wage Increase
— Unfairly increases employers' costs while ignoring the economic factors or other costs of employers by increasing the minimum wage by $3.00 over the next two and a half years with automatic increases tied to inflation. Assembly Appropriations Committee; no hearing date set.

SB 406 (Jackson; D–Santa Barbara)
Significant Expansion of California Family Rights Ac
t — Increases costs, risk of litigation and less conformity with federal law by dramatically reducing the employee threshold from 50 to at least 25 employees and expanding the family members for whom leave may be taken, which will provide a California-only, separate 12 week protected leave of absence for both small and large employers to administer. Assembly Appropriations; no hearing date set.

Increased Fuel Costs
SB 350
(de León; D-Los Angeles)
Costly and Burdensome Regulations
— Potentially increases costs and burdens on all Californians by mandating an arbitrary and unrealistic reduction of petroleum use by 50%, increasing the current Renewable Portfolio Standard to 50% and increasing energy efficiency in existing buildings by 50% — all by 2030 without regard to the impact on individuals, jobs and the economy. Assembly Appropriations; no hearing date set.

Tax Increases
(Frazier; D-Oakley)
Lowers Vote Requirement for Tax Increases
— Adds complexity and uncertainty to the current tax structure and pressure to increase taxes on commercial, industrial and residential property owners by giving local governments new authority to enact special taxes, including parcel taxes, by lowering the vote threshold from two-thirds to 55%. Assembly Appropriations; no hearing date set.

SB 684 (Hancock; D-Berkeley)
Increased Tax Rate
— Threatens to significantly increase the corporate tax rate on publicly held corporations and financial institutions up to 15% according to the wages paid to employees in the United States, and threatens to increase that rate by 50% thereafter, if the corporation or institution reduces its workforce in the United States and simultaneously increases its contractors. Senate Governance and Finance Committee; no hearing date set.

SCA 5 (Hancock; D-Berkeley)/(Mitchell; D-Los Angeles)
Split Roll Property Tax
— Undermines the protections of Proposition 13 by unfairly targeting commercial property owners and increasing their property taxes by assessing their property based upon current fair market value instead of acquired value. Such costs will ultimately be passed on to consumers and tenants through higher prices and will result in job loss as businesses struggle to absorb such a dramatic tax increase. (Amended 06/09/15). Senate Governance and Finance Committee; no hearing date set.

Increased Burdensome Environmental Regulation
SB 32
(Pavley; D-Agoura Hills)
Slows Economic Growth
— Increases costs for California businesses, makes them less competitive and discourages economic growth by adopting further greenhouse gas emission reductions for 2030 and 2050 without regard to the impact on individuals, jobs and the economy. Assembly Appropriations; no hearing date set.

SB 654 (de León; D-Los Angeles)
Creates Unworkable Hazardous Waste Permitting Process
— Discourages investment in upgrading and improving hazardous waste facilities by shutting down hazardous waste facilities if the Department of Toxic Substances Control fails to take final action on the permit renewal application within a specified timeframe, even if the permit applicant acted diligently and in good faith throughout the permit application process. Assembly Appropriations; no hearing date set.

Increased Unnecessary Litigation Costs
AB 465
(Hernández; D-West Covina)
Increased Litigation
— Significantly drives up litigation costs for all California employers as well as increases pressure on the already-overburdened judicial system by precluding mandatory employment arbitration agreements, which is likely pre-empted by the Federal Arbitration Act. Senate Floor.
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