Building Owners and Managers Association

Improving the Performance of the Commercial Real Estate Industry
Priority Bills Make It Through Legislative Process to Governor's Desk
Sign/Veto Watch List
Tuesday, September 29, 2015
by: Matthew Hargrove, BOMA California

Section: Association Business

The 2015 California Legislative Session is over. Throughout the past year, your Sacramento staff tracked over 400 bills on a broad array of topics including Greenhouse Gas Issues, CEQA, ADA, Mandatory Benchmarking, Taxes, AED, and a host of issues that would impact your business from sick leave policy to water conservation.

Here is a list of the top-priority bills that made it through the Legislative Process and to the Governor’s Desk for action, along with a summary, our position, and a link to read the bill:

ADA Bills

AB 1230 (Gomez D)
California Americans with Disabilities Small Business Capital Access Loan Program. Provides up to $50K in low interest loans for eligible ADA projects.

  • Establishes the California Americans with Disabilities Act Small Business Capital Access Loan Program within the Capital Access Loan Program,
  • Self-sustaining program to provide loans to assist small businesses in financing the costs of projects that alter or retrofit existing small business facilities,
  • "small business" defined as i) Fifteen or fewer full-time equivalent employees; ii) Less than $1 million in total gross annual income
  • "Eligible project" means the physical alterations or retrofits to an existing small business facility of less than 10,000 square feet necessary to ensure that facility is in compliance with the ADA.
Status: On Governor’s Desk
Position: SUPPORT

AB 1521 (Committee on Judiciary)
Construction-related accessibility claims.
  • Provides information and legal resources to small business owners to minimize their liability for ADA violations and/or respond to a lawsuit filed against them.
  • Limits high-volume lawsuits motivated by quick settlement with business owners, rather than correction of ADA violations.
  • New demand letter requirements.
  • Defines a "high-frequency litigant" (HFL); filed 10 or more complaints alleging violations of construction-related accessibility standards in the past 12 months; or an attorney who has represented 10 or more such plaintiffs in the past year.
  • HFLs who file new claims have a) A higher filing fee; b) Special pleading requirements; and c) Certification by the attorney that, among other things, the complaint is not being presented primarily for an improper purpose.
  • Requires attorney notification to CCDA about how their claims are resolved.
Status: On Governor’s Desk
Position: SUPPORT

SB 251 (Roth D)
Disability access: civil rights: income tax credit.

This bill, seeks promote ADA compliance among small businesses by allowing a business owner 90 days from the date of a CASp inspection to fix violations before being subject to liability.
  • protects small businesses from liability for certain violations if the business corrected the violation within 15 days of receiving notice of the potential violation.
  • creates tax incentives for businesses to correct violations
  • requires the State Architect and the California Commission on Disability Compliance to post specified information to their respective websites for the purpose of
Status: On Governor’s Desk
Position: SUPPORT

AB 1342 (Steinorth R)
Enacts measures intended to promote disability access compliance.

Facilitate more property owners to seek a CASp certification in order to assure their properties are in compliance with the law. This certification will also lessen the number of unnecessary lawsuits while increasing access.
  • Makes it easier for business owners to find a Certified Access Specialist (CASp) by requiring the State Architect and CCDA to post information on how to find one locally.
  • Revises requirement for commercial property owners to state on lease agreements information about the condition of the leased property.
  • Extends the $1 business license to fund the Disability Access and Education Revolving Fund.
Status: On Governor’s Desk
Position: SUPPORT

AB 662 (Bonilla D)
ADA Mandate; Adult Changing Tables.

Would require a person, private firm, organization, or corporation that owns or manages a commercial place of public amusement, as defined, constructed on or after January 1, 2020, or renovated on or after January 1, 2025, to install and maintain at least one adult changing station, as defined, for a person with a physical disability, as specified. The bill would require a facility to ensure that the entrance to each adult changing station has conspicuous signage indicating its location, and, if the facility has a central directory, ensure that the central directory indicates the location of the adult changing station.

  • We OPPOSE this bill because it specifically circumvents the building code process and puts building code in statute.
  • We have requested a veto and asked the Governor to ask for a bill that directs the appropriate state agencies to work on this through the normal building code process.
  • As written, we are concerned this bill will expose impacted properties to unnecessary ADA lawsuits.
Status: On Governor’s Desk
Position: OPPOSE

Energy & Building Code Issues

AB 802 (Williams D)
Energy efficiency.

Current law requires the Energy Commission to prepare an integrated energy policy report every 2 years and requires the report to include an assessment and forecast of system reliability and the need for resource additions, efficiency, and conservation that considers certain criteria. This bill would require the Energy Commission, in consultation with the Public Utilities Commission, to make all reasonable adjustments to its energy demand forecasts conducted pursuant to the above-described provisions to account for its findings of market conditions and existing baselines, and in making those adjustments, would authorize the commission to consider the results from specified programs.

Status: On Governor’s Desk
Position: SUPPORT

AB 1236 (Chiu D)
Local Ordinances: electric vehicle charging stations.

Would require a city, county, or city and county to approve an application for the installation of electric vehicle charging stations, as defined, through the issuance of specified permits unless the city or county makes specified written findings based upon substantial evidence in the record that the proposed installation would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.

Status: On Governor’s Desk
Position: OPPOSE

SB 119 (Hill D)
Protection of subsurface installations.

Current law defines a subsurface installation as any underground pipeline, conduit, duct, wire, or other structure. Current law requires an operator of a subsurface installation, who receives notification of proposed excavation work, within 2 working days of that notification, excluding weekends and holidays, to mark the approximate location and number of subsurface installations that may be affected by the excavation or to advise that no subsurface installations operated by him or her would be affected. This bill, the Dig Safe Act of 2015, would declare the need to clarify and revise these provisions. The bill would define and redefine various terms relating to a regional notification center.

Status: On Governor’s Desk
Position: SUPPORT

SB 350 (De León D)
Clean Energy and Pollution Reduction Act of 2015.

Would require that the amount of electricity generated and sold to retail customers per year from eligible renewable energy resources be increased to 50% by December 31, 2030, as provided. The bill would make other revisions to the RPS Program and to certain other requirements on public utilities and publicly owned electric utilities. This bill contains other related provisions and other existing laws.

Status: On Governor’s Desk

Redevelopment, Local Government Financing & Infrastructure

AB 2 (Alejo D)
Community revitalization authority

Would authorize certain local agencies to form a community revitalization authority (authority) within a community revitalization and investment area, as defined, to carry out provisions of the Community Redevelopment Law in that area for purposes related to, among other things, infrastructure, affordable housing, and economic revitalization.

Position: SUPPORT

AB 313 (Atkins D)
Enhanced infrastructure financing districts.

Would require, after the adoption of a resolution of intention to establish the proposed district, the legislative body to send a copy of the resolution to the public financing authority. This bill would revise the duties of the public financing authority after the resolution of intention to establish the proposed district has been adopted, so that the public financing authority, instead of the legislative body, will perform the specified duties related to the preparation, proposal, and adoption of the infrastructure financing plan and the adoption of the formation of the district.

Position: SUPPORT

SB 107 (Budget Committee)
Redevelopment agencies and community development agencies.

As of February 1, 2012, and provides for the designation of successor agencies to wind down the affairs of the dissolved redevelopment agencies and to, among other things, make payments due for enforceable obligations and to perform obligations required pursuant to any enforceable obligation. This bill would provide that any action by the Department of Finance, that occurred on or after June 28, 2011, carrying out the department's obligations under the provisions described above constitutes a department action for the preparation, development, or administration of the state budget and is exempt from the Administrative Procedures Act.

Position: MONITOR

More information on these bills.

“Governor Signs Local Infrastructure Financing Bill”

Automated External Defibrillators

SB 287 (Hueso D)
Automated external defibrillators (AEDs).

Would require certain occupied structures that are not owned or operated by any local government entity and are constructed on or after January 1, 2017, to have an AED on the premises. The bill would require a person or entity that supplies an AED to comply with specified existing law regarding AEDs, and would exempt a person or entity that acquires an AED for emergency care from liability for civil damages resulting from any acts or omissions in the rendering of emergency care if certain requirements have been met. The bill would make these provisions operative on January 1, 2017.

Status: On Governor’s Desk
Position: SUPPORT

SB 658 (Hill D)
Automated external defibrillators.

Would provide an exemption from civil liability for a physician and surgeon or other health care professional that is involved in the selection, placement, or installation of an AED. The bill would require a person or entity, other than a health facility as defined, that acquires an AED to, among other things, comply with specified regulations for the placement of the device and ensure that the AED is maintained and tested as specified.

Status: Signed by Governor; Chapter 264
Position: SUPPORT

Affordable Housing

AB 35 (Chiu D)
Income taxes: credits: low-income housing: allocation increase.

Would, for calendar years 2016 through 2021, inclusive, would increase the aggregate housing credit dollar amount that may be allocated among low-income housing projects by $100,000,000, as specified. The bill, under the insurance taxation law, the Personal Income Tax Law, and the Corporation Tax Law, would modify the definition of applicable percentage relating to qualified low-income buildings that meet specified criteria.

Status: On Governor’s Desk
Position: SUPPORT

Cost Of Construction

AB 219 (Daly D)
Public works: concrete delivery.

Current law defines "public works," for purposes of requirements regarding the payment of prevailing wages for public works projects, to include, among other things, the hauling of refuse from a public works site to an outside disposal location with respect to contracts involving any state agency. This bill would expand the definition of "public works" for these purposes to include the hauling and delivery of ready-mixed concrete, as defined, to carry out a public works contract, with respect to contracts involving any state agency or any political subdivision of the state.

Status: On Governor’s Desk
Position: OPPOSE

AB 251 (Levine D)
Public works: public subsidies.

Would provide that a public subsidy is de minimis if it is both less than $250,000 and less than 2% of the total project cost. The bill would specify that those provisions do not apply to a project that was advertised for bid, or a contract that was awarded, before July 1, 2016.

Status: VETOED –
Position: OPPOSE

AB 428 (Nazarian D)
Income taxes: credit: seismic retrofits.

Would allow, for taxable years beginning on or after January 1, 2017, and before January 1, 2022, a tax credit under both the Personal Income Tax Law and the Corporation Tax Law in an amount equal to 30% of the qualified costs paid or incurred by a qualified taxpayer for any seismic retrofit construction on a qualified building, as provided. The bill would require a taxpayer, in order to be eligible for the credit, to obtain 2 certifications from the appropriate jurisdiction with authority for building code enforcement of the area in which the building is located.

Status: On Governor’s Desk
Position: SUPPORT

AB 744 (Chau D)
Planning and zoning: density bonuses.

Current law prohibits a city, county, or city and county from requiring a vehicular parking ratio for a housing development that meets specified criteria in excess of specified ratios. This bill would, notwithstanding the above-described provisions, additionally prohibit, at the request of the developer, a city, county, or city and county from imposing a vehicular parking ratio, inclusive of handicapped and guest parking, in excess of 0.5 spaces per bedroom on a development that includes the maximum percentage of low- or very low income units, as specified, and is located within 1/2 mile of a major transit stop, as defined, and there is unobstructed access to the transit stop from the development.

Status: On Governor’s Desk
Position: OPPOSE

Employer Issues

AB 465 (Hernández, Roger D)
Contracts against public policy.

Would prohibit any person from requiring another person, as a condition of employment, to agree to the waiver of any legal right, penalty, forum, or procedure for any employment law violations. The bill would prohibit a person from threatening, retaliating against, or discriminating against another person based on a refusal to agree to such waiver, and would provide that any such waiver required from an employee or potential employee as a condition of employment or continued employment is unconscionable, against public policy, and unenforceable.

Status: On Governor’s Desk
Position: OPPOSE

AB 1506 (Hernández, Roger D)
Labor Code Private Attorneys General Act of 2004.

Would provide an employer with the right to cure a violation of the requirement that an employer provide its employees with the inclusive dates of the pay period and the name and address of the legal entity that is the employer before an employee may bring a civil action under the Labor Code Private Attorneys General Act of 2004. The bill would provide that a violation of that requirement shall only be considered cured upon a showing that the employer has provided a fully compliant, itemized wage statement to each aggrieved employee, as specified.

Status: On Governor’s Desk
Position: SUPPORT

Mandatory Benchmarking; Bill On Governor Desk

Because there has been so much focus, time, and attention paid to California’s Mandatory Benchmarking Law (AB 1103), we want to provide a bit more context about a bill that is currently on the Governor’s Desk that will completely re-write the law.

AB 802 (Williams; D-Santa Barbara) does two things. Firstly, it allows for “below code energy efficiency grants” to help existing building become more energy efficient through public programs, even if they are not brought up to the tough standards to current code. The bill also re-writes the Mandatory Benchmarking Law (commonly referred to as the AB 1103 program).

As many of you know the benchmarking law as written over six years ago is can be cumbersome and expensive to undertake, especially in multi-tenant buildings where access to utility information may not be available to the building owner. The current program also uses the real estate transaction (sale/lease/finance) as the trigger for benchmarking, which causes lots of unanticipated problems and headaches for our industry, and is ultimately not a good trigger because some building may transact multiple times in a year while other may not transact for years at a time.

If AB 802 is signed into law, benchmarking would still be mandatory in California, however, the statute would be rewritten in a way that removes the statutory time-of-sale/lease triggers, sets a lower limit of 50K s.f. for buildings included in the mandate, and would give the Energy Commission more flexibility to come up with regulations across the different building types that make sense. This bill will also make it easier for you to work with your tenant and local utility to get the information needed in a timely manner.

If the bill is signed, we, as an industry, must engage in the regulatory process to assure that the regs are written in a way that make sense, otherwise many of the issues we have with the current law could re-surface. However, the base statute would make a lot more sense under AB 802 and we urge the Governor to sign the measure.

AB 1103 Mandatory Benchmarking Regulations Put On Hold

Due to the passage of the legislation above that would significantly alter the AB 1103 program if enacted by the Governor, the comment period for the Nonresidential Building Energy Use Disclosure Program (AB 1103) proposed regulations presented at the August 25, 2015 workshop has been extended to January 1, 2016. Essentially, the CEC has put the process “on hold” until the governor signs or vetoes AB 802.

Commercial Organics Recycling Law

With the passage of AB 1826, new organics recycling requirements will be phased in over several years and will help the state meet its goal of recycling 75 percent of its waste by 2020.

AB 1826 (Chesbro, Chapter 727, Statutes of 2014), which was signed in October 2014, requires businesses to recycle their organic waste on and after April 1, 2016, depending on the amount of waste they generate per week.

Businesses, including public entities, are required to recycle their organic waste on and after April 1, 2016, depending on the amount of waste they generate per week. Organics recycling services often accept a wide variety of organic waste. The law requires that businesses arrange for recycling services for the following types of organic waste:
  • food waste
  • green waste
  • landscape and pruning waste
  • nonhazardous wood waste
  • food-soiled paper
Multifamily complexes of five units or more must arrange for recycling services for the same material with the exception of food waste and food-soiled paper.

Who Must Comply?
The new law states that businesses and multifamily complexes must start recycling organic waste by the following dates:
  • Generators of 8 or more cubic yards of organic waste per week – April 1, 2016
  • Generators of 4 or more cubic yards of organic waste per week – January 1, 2017
  • Generators of 4 or more cubic yards of solid waste per week – January 1, 2019
  • Generators of 2 or more cubic yards of solid waste per week, if statewide disposal of organic waste is not decreased by half – January 1, 2020
By January 1, 2016, all jurisdictions must have organic recycling options in place for businesses and multifamily complexes, and they must conduct outreach and education to those businesses about their organics recycling options. The jurisdictions must subsequently monitor implementation.

Please see
CalRecycle’s Mandatory Commercial Organics Recycling, including examples of businesses that are recycling organics.
Post a Comment