BOMA California Outlines State Legislative Priorities for CRE

Though businesses are well into a full post-COVID economy, commercial, industrial, and retail real estate organizations are all still facing a number of state legislative challenges this season. From development to other increased costs of operation, a number of policies can make a significant impact on our state's recovering and fragile economy.

In addition to the business community's concerted position on the state budget, coalitions are coming together to outline their legislative priorities for the following year.

Most notably, the California Business Properties Association, the largest commercial real estate consortium for the state, has done diligent work on mobilizing its resources in preparation for this year's legislative session.

Though CPBA has more than over 350 bills that it is currently monitoring, below are just a few pieces of legislation that we believe should be highlighted. To be sure, they would create sizable effects to the local industry and are top priorities.

Development

AB 2840 - Warehouse Ban Near Certain Other Uses (OPPOSE)

Bans the building of any facility 100,000 s.f. or more within 1,000 ft of a “sensitive receptor,” which has a broad definition including almost any non-industrial/commercial use. Additionally, all projects that are not banned due to proximity to a sensitive receptor must be approved by local agencies, increasing bureaucracy.

This would stall crucial economic development and impede the growth of skilled jobs, risking further economic losses for the region.

SB 1292 - Land Use: Development Restriction: Fire Hazard Severity Zones (OPPOSE)

The proposed bill would allow local municipalities to prohibit the development of housing in areas of moderate and high severity zones. This would be a broad application of the law and will stop the building of any type in 80% of the state.

The bill would allow these restrictions if local governments can build double what could not be built due to restrictions. However, with existing levels of bureaucracy, increasing restrictions does not seem sensible at this time.

Sustainability

SB 1393 - Energy: Appliances: Local Requirements (SUPPORT)

This bill would require local governments to consider important costs and technological feasibility before requiring residential and commercial property owners to switch out their gas appliances with electric appliances.

Commercial real estate professionals have been long committed to sustainable energy uses. However, recent measures have aimed to completely overwrite energy sources without regard for cost or existing technologies. This bill would fix this issue and support our industries in that transition.

AB 1738 - Building Standards: Installation of Electric Vehicle Charging Stations: Existing Buildings (OPPOSE)

This bill would mandate that fully functioning EV charging stations be installed in existing apartments, hotels and motels, schools, and commercial buildings.

This goes far beyond the EV standards adopted by the legislature in December 2021. This is just another example of overreaching measures without assessing the individual capabilities, resources, or existing accessibility of EV infrastructure.

Grants and Small Business Resources

AB 2164 - Disability Access: Funding (SUPPORT)

This would extend the $4 fee on business licenses that goes to the Certified Access Specialist (CASp) program which benefits both small businesses and customers by providing financial assistance to ensure facilities are accessible and will protect them from frivolous ADA litigation.

AB 2829 - Certified Access Specialist Inspection Grant Program (SUPPORT)

This bill provides grants to tenants to have space inspected and certified by a Certified Access Specialist. Particularly, small businesses would benefit through thousands of dollars in support, aiding them following a rising trend in ADA litigations.

Learn More About BOMA/GLA's Legislative Priorities

In addition to the issues listed above, BOMA Greater Los Angeles is committed to acting on a variety of issues impacting the commercial real estate industry this year.

For a broad assessment of our priorities, click here. They include homelessness, rent and lease payments, and building electrification.

For more relevant state bills, click here.