Legislative Update 

August 2024

By Craig Benedetto & Marshall Anderson, Legislative Advocates 

STATE UPDATE

CA LEGISLATURE HOLDS KEY JANITORIAL BILLS OF CONCERN

Earlier this month, the Senate Appropriations Committee held AB 2374 (Haney; D-San Francisco) on suspense, effectively stopping the bill from moving forward. Additionally, AB 2364 (Rivas; D-Los Angeles) has been amended to become a study bill, significantly reducing its immediate impact. Both measures posed substantial challenges to the janitorial industry, and BOMA CAL, among others, lobbied heavily against them, emphasizing the financial and operational burdens these bills would have imposed. This outcome marks a significant victory for the commercial real estate community, safeguarding our industry from unrealistic mandates that could have compromised business operations.  Special mention should go to BOMA San Diego’s own Tom Magnussen for his efforts in helping educate elected officials (and us) on the nuances and challenges posed by these proposed measures.

GOVERNOR SIGNS 10 PUBLIC SAFETY, RETAIL THEFT BILLS

Governor Gavin Newsom signed a bipartisan package of 10 bills aimed at combating retail theft and other property crimes in California. These measures allow for harsher penalties against organized retail theft and promote law enforcement coordination to combat thefts across different jurisdictions. The bills also address cargo theft, close loopholes in auto theft prosecution, and require online marketplaces to collect more information from high-volume sellers. The bills would not preclude Proposition 36, a November ballot measure that would reform Proposition 47 and enable tougher sentencing in cases involving drug trafficking and theft. BOMA CAL supported this bill package when it was amended to eliminate the “poison pill” language that would have precluded passage of Prop 36.  The following bills were included in the package signed by the Governor:

• AB 1779 : If a case is brought by someone other than the Attorney General and multiple offenses are committed by the same defendant in multiple jurisdictions, the bill would allow a criminal action to be brought in any of those jurisdictions.
• AB 1802: Removes Highway Patrol sunset on organized retail theft.
• AB 1972: Requires regional property crimes task force to assist railroad police. 
• AB 2943: Creates a new crime classification targeting “serial” retail thieves with a penalty of up to three years for possession of stolen property with intent to resell. 
• AB 3209: Authorizes court to impose a restraining order for a theft offense and/or vandalism within a store or battery on an employee within a store. 
• SB 905: Makes forcibly entering a vehicle with the intent to commit theft a crime punishable by imprisonment for 1-3 years. 
• SB 982: Removes sunset clause on organized retail theft, making it a permanent crime. 
• SB 1144: Revises the definition of online marketplace and requires online marketplaces to establish and maintain a policy prohibiting the sale of stolen goods. The bill also requires online marketplaces to notify law enforcement if a third-party seller is attempting to sell stolen goods. 
• SB 1242: In the case of fires being set to a merchant’s premises, this bill would make it a factor in facilitating organized retail theft, thus increasing the punishment for the crime. 
• SB 1416: Create sentencing enhancements for selling stolen products. 

To read the Governor’s statement, please click HERE. 

Proponents of the Prop 36 ballot measure believe that while these bills help, they don’t go far enough in addressing the concerns and impacts of the retain theft crisis and will continue to fight hard to pass their measure.  BOMA CAL has taken a position to support Prop 36.

GOVERNOR ISSUES EXECUTIVE ORDER ON ADAPTIVE REUSE

Governor Gavin Newsom issued an Executive Order (EO) earlier this month on adaptive reuse/office conversion.  The EO is intended to help lower costs and encourage the production of more infill housing, including affordable housing.  The California Business Properties Association, of which BOMA CAL is a member, has been leading an adaptive reuse working group to help educate the administration and legislators on the challenges and opportunities of repurposing commercial space for housing. You can see a list of bills, including reuse legislation, CBPA is tracking HERE.  To read the Governor’s EO, please click HERE.

GOVERNOR PRESSES COUNTIES TO IMPLEMENT SB 43 CONSERVATORSHIP LAW

Governor Gavin Newsom is urging California counties, including San Diego County, to implement Senate Bill 43, a new law aimed at easing the process of appointing conservators for individuals suffering from mental illness or substance abuse. The law, which was passed in 2023, gives counties the ability to delay implementation until January 2026; however, the Governor expressed disappointment in that most counties have not yet made the necessary changes to implement the change, which expands the definition of "gravely disabled" to include those who are unable to provide for their personal safety, medical care, food, clothing, or shelter. The San Diego County Board of Supervisors are scheduled to make a decision in January 2025, while some Supervisors are pressing for immediate implementation.  BOMA has been tracking this due to the potential beneficial impact on the chronic homeless population some of whom suffer from the disabilities intended to be addressed through conservatorship.

CITY OF SAN DIEGO

SAN DIEGO PLANNING DEPARTMENT ACCEPTING 2025 LAND DEVELOPMENT CODE INPUT

The City of San Diego’s Planning Department is currently accepting requests for inclusion in the 2025 Land Development Code Update until September 15. Each year, the City of San Diego updates its Land Development Code with changes aimed at clarifying development regulations, ensuring compliance with new state laws, and corrections and reforms aimed at easing the development process. Questions and comments can be directed to developmentcode@sandiego.gov

SAN DIEGO CITY COUNCIL DECLARES A SHELTER CRISIS

The San Diego City Council voted to declare a shelter crisis in an effort to address the lack of available shelter for the growing homeless population. The move comes amid shelter closures, which are expected to result in the loss of 700 shelter beds in the next few months. The declaration of a shelter ‘crisis’ would allow for City shelters to seek exemptions from certain state or local health, planning, zoning, or safety standards in an effort to bring additional beds online more quickly. The move also comes as discussions around the Hope @ Vine warehouse, which city officials are attempting to lease and turn into a 1,000-bed homeless shelter, have deteriorated. The lease agreement is expected to return to city council in September. 

SAN DIEGO CITY COUNCIL APPROVES HILLCREST FOCUSED PLAN AMENDMENT, UNIVERSITY CITY COMMUNITY PLAN UPDATE

The San Diego City Council approved both the Hillcrest Focused Plan Amendment and University City Community Plan Update this week. The Hillcrest Focused Plan Amendment would allow for the addition of nearly 17,000 new homes, including high-rise buildings, potentially increasing the population of Uptown to 100,000 by 2050. The amendment also includes a new Normal Street Promenade and emphasizes the creation of new parks and public gathering places. The plan also proposes new bicycle lanes and a freeway lid park over the 163.

The University City Community Plan Update would allow for nearly a doubling of the neighborhood's population. The plan sets the framework for the construction of over 30,000 new housing units and 20 million additional square feet of commercial space. Additionally, the plan includes an Executive Drive promenade and the potential narrowing of Governor Drive to account for the addition of bicycle lanes. BOMA has been monitoring the plan, which is seen as well-balanced to address the many needs of the community, including jobs creators.

To view the City’s statement, click HERE. For more information about the Hillcrest Focused Plan Amendment click HERE. University City Community Plan Update information may be found HERE. 

CITY OF SAN DIEGO PROPOSAL TO REMOVE VIRTUAL PUBLIC TESTIMONY RETRACTED

Amid some public backlash, San Diego City Council President Elo-Rivera has abandoned his proposal to eliminate online virtual public comment via phone and Zoom. The proposal came about due to concerns that virtual testimony prolongs meetings and disrupts civic discourse, especially as some individuals call in to speak on every single item, even mundane items like approval of minutes and ceremonial proclamations. Opponents claimed that removing the ability to virtually comment on items is undemocratic. Elo-Rivera will abandon his proposal but stated he would explore new options to better manage and improve the process

COUNTY OF SAN DIEGO AND OTHER REGIONAL AGENCIES

CARLSBAD PASSES BAN ON SMOKING IN MULTI-UNIT RESIDENTIAL BUILDINGS

The Carlsbad City Council passed a new ordinance this week that bans all smoking, including vaping and marijuana, inside and outside (except for designated areas) multi-unit residential buildings containing three or more units. Single-family residences, mobile home parks, and lodging facilities were exempted. You can read the ordinance by clicking HERE. 

ELECTION UPDATE

BOMA CAL ISSUES STATEWIDE BALLOT POSITIONS

BOMA California has reviewed and issued the following positions on some of the measures that will be on the November 2024 statewide ballot. There are several other items on the ballot, and for those not identified below, BOMA CAL has not taken a position on them.

• Prop 2 - School Facilities Bond - SUPPORT - This $10 billion bond measure is aimed at funding repairs and upgrades for thousands of K-12 school and community college buildings across CA. This measure would encourage much needed development and enhance our state's economic competitiveness.
• Prop 5 - Vote Thresholds - OPPOSE - Currently, most local bond proposals require a two-thirds public vote for approval. If voters pass Proposition 5, this threshold will be lowered to 55% for bonds supporting low-income housing, road and transit expansions, parks, wildfire resilience, and other public infrastructure projects. This measure aims to erode taxpayer protections against government spending established with Proposition 13 and will result in higher taxes.
• Prop 32 - $18/hr Minimum Wage - OPPOSE - This measure would raise the state minimum wage from $16 to $18. The minimum wage has rapidly increased over the last several years, and higher minimum wages have been established for fast food and health care workers. Another increase would further threaten the economic competitiveness of our state and drive businesses out.
• Prop 33 - Rent Control - OPPOSE - This measure would permit local governments to enforce rent controls. It would repeal the Costa-Hawkins Rental Housing Act that generally prohibits cities and counties from imposing rent limits on properties occupied after February 1, 1995. Prop 33 would have an adverse impact on property values and the economic competitiveness of CA.
• Prop 34 - Restricts Spending by AIDS Healthcare Foundation - SUPPORT - This measure would mandate that specific healthcare providers allocate almost all funds from a federal prescription drug program towards patient care. It would forbid the AIDS Healthcare Foundation from using the organization’s coffers to advance a political agenda through the ballot, and ensure public tax dollars meant for patients are spent on patients.
• Prop 36 - Retail Theft/Prop 47 Reform - SUPPORT - Prop 36, the Homelessness, Drug Addiction, and Theft Reduction Act, would partially roll back Prop 47, increasing penalties for theft and drug trafficking. Prop 36 would address the drastic increase in retail theft and organized retail crime by reclassifying retail theft with 2+ prior convictions as a felony. Retail theft is a key issue impacting not just our industry, but the economic health of our state.

SAN DIEGO CITY COUNCIL PLACES ETHICS REFORM MEASURE ON NOVEMBER BALLOT

The San Diego City Council voted to place a proposal that would make significant changes to the city’s Ethics Commission on the November ballot. The Ethics Commission is charged with monitoring, administering, and enforcing the City’s ethics laws, including those for lobbying. The proposal, which was brought forth by City Attorney Mara Elliott, includes changes that would allow the Commission to select its own executive director without city council confirmation. The executive director would also be allowed to open investigations on their own authority vs. relying on approval from the commission. Other changes include an increase in fines, the creation of a dedicated funding stream, and allowing for the commission to retain its own attorneys.