CSSA in conjunction with SSA and lobbying firm follow and number of pieces of legislation that make their way through the California
Self Storage Association Bill List
(Umberg D) Price gouging.
Current Text: Amended: 6/18/2020 html pdf
Last Amend: 8/10/2020
Status: 8/20/2020-From committee: Do pass. (Ayes 18. Noes 0.) (August 20).
Location: 8/18/2020-A. SECOND READING
Summary: Under current law, upon the proclamation of a state of emergency, as defined, by the President of the United States or the Governor, or upon the declaration of a local emergency, as defined, by the executive officer of any county, city, or city and county, and for 30 days following the proclamation or declaration of emergency, it is a misdemeanor for a person, contractor, business, or other entity to sell or offer to sell certain goods or services for a price 10% greater than the price charged by that person immediately prior to the proclamation or declaration of emergency. Current law makes a greater price increase lawful under these provisions if the person can prove that the increase in price was directly attributable to additional costs imposed on it by the supplier of the goods, or directly attributable to additional costs for the labor or materials used to provide the services, during the state of emergency or local emergency, and the price is no more than 10% greater than the total of the cost to the seller plus the markup customarily applied by the seller. This bill would expand that crime to also include selling or offering to sell those goods or services for a price 10% greater than the price charged immediately prior to a date set by the proclamation or declaration of emergency.
Current Text: Enrollment: 8/31/2020 html pdf
Last Amend: 6/29/2020
Status: 8/31/2020-Read third time. Passed. (Ayes 46. Noes 16.) Ordered to Senate. In Senate. Ordered to engrossing and enrolling.
Location: 8/31/2020-s. ENROLLMENT
Summary: Would revise and recast specified provisions to make it an unlawful employment practice for any employer to refuse to grant a request by an employee to take up to 12 workweeks of unpaid protected leave during any 12-month period to bond with a new child of the employee or to care for themselves or a child, parent, grandparent, grandchild, sibling, spouse, or domestic partner, as specified. The bill would require an employer who employees’ both parents of a child to grant leave to each employee.
Current Text: Amended: 6/19/2020 SUSPENSE FILE html pdf
Last Amend: 8/5/2020
Status: 8/20/2020-August 20 hearing: Held in committee and under submission.
Location: 8/18/2020-A. APPR. SUSPENSE FILE
Summary: The Tenant Protection Act of 2019 prohibits, with certain exceptions, an owner of residential real property from increasing the gross rental rate for a dwelling or unit more than 5% plus the percentage change in the cost of living, as defined, or 10%, whichever is lower, of the lowest gross rental rate charged for the immediately preceding 12 months, subject to specified conditions. This bill would authorize an owner of real property and a tenant to sign and execute a tenant-owner COVID-19 eviction relief agreement that, during a state of emergency related to the COVID-19 pandemic, and unspecified additional days, would allow the tenant to defer the tenant’s unpaid rent, and would prohibit the owner from serving a notice terminating the tenancy or filing a complaint for unlawful detainer for that unpaid rent or during the state of emergency, unless an exception applies. The agreement would require the tenant to repay the unpaid rent to the state as installments in accordance with a specified repayment schedule during taxable years beginning on or after January 1, 2024, and before January 1, 2034.
(Hill D) Taxation: school districts: parcel tax. INACTIVE FILE
Current Text: Amended: 4/22/2019 html pdf
Last Amend: 4/22/2019
Status: 5/21/2019-Ordered to inactive file on request of Senator Hill.
Location: 5/21/2019-S. INACTIVE FILE
Summary: The California Constitution generally conditions the imposition of a special tax by a city, county, or special district, including a school district, upon the approval of 2/3 of the voters of the city, county, or special district voting on that tax. This bill would condition the imposition, extension, or increase of a parcel tax, as defined, by a school district or community college district upon the approval of 55% of its voters voting on the proposition, if the proposition meets specified requirements. The measure would also make conforming changes to related provisions.
The SSA was recently contacted by a few California members regarding the application of California Senate Bill 205 (SB 205) to self storage operations. SB 205 requires industrial sectors in California under certain SIC codes, including code 4225 which some self storage operators use, to obtain required stormwater permits and present them to the local county or city official before they may renew their business license. SB 205 mostly covers industrial facilities that are likely to generate waste and/or have materials on site that would present issues if a heavy rain occurred and those materials mixed with runoff and entered local storm drains and water bodies.
While self storage is not industrial, it has been considered a subset of or synonymous with warehousing under SIC code 4225 that some operators categorize themselves as on a business license. SIC code 4225 is one of the codes covered by the stormwater permit requirements. If a self storage operator goes to renew their business license under SIC code 4225 without a stormwater permit “attached” to the application, it may be denied. We have heard from operators that applications and protocols differ between jurisdictions as they work on implementing this new requirement.
In order to resolve the issue, the SSA arranged a conference call with the California Water Resources Control Board (CWRCB), which is the regulatory authority over this issue. The CWRCB understood the problem that self storage is not industrial but that some owners may use the 4225 SIC code for their self storage business. While it did not formally adopt the position that 4226 is the most appropriate SIC code for self storage, the CWRCB felt that 4226 is more appropriately descriptive of self storage than 4225. The use of 4226 allows the owner to self-certify their status at no cost, as described below.
During the call, the SSA also proposed SIC code 6512 – Operators of Nonresidential Buildings. The CWRCB did not take a firm position on use of this code. It felt that determination was up to an individual operator. The benefit of SIC code 6512 is that there are no permitting requirements associated with that code.
The SSA also asked about a provision from SB 205 that requires that businesses report “all primary Standard Industrial Classification [SIC] codes . . .” on the business license renewal under penalty of perjury. The CWRCB confirmed that for most businesses it is appropriate and proper to include a single SIC code, not the universe of what could possibly be included. The exception would be a connected business that is clearly distinct such as a car wash at a self storage facility. In that scenario it would be necessary to include two SIC codes. Some SSA members may elect to use an additional code to cover the retail sales of tape, boxes, etc. sold at the facility, but those codes are not covered by the stormwater permit requirements.
From the SSA’s perspective, operators in California have the following options to resolve the business license issue:
(1) Use SIC code 6512 for their self storage business – Operators of Nonresidential Buildings on their business license renewal. This code does not require any further certifications or compliance requirements.
(2) Use SIC code 4226 for their self storage business – Special Warehousing and Storage, Not Elsewhere Classified. If this code is selected, members need to set up a Stormwater Multiple Application and Report Tracking System (SMARTS) account. Instructions on the process and how to set up an account can be viewed here. Once an account is set up, operators will need to submit a Notice of Non-Applicability (NONA). Once submitted, operators will receive a NONA ID number. This ID number will need to be included in the business license renewal application.
(3) Use SIC code 4225 for their self storage business – General Warehousing and Storage and obtain a required stormwater permit to present to county or city officials to obtain a business license. This will require a report from a licensed Professional Engineer and possibly some modifications to the facility or property.
(4) Use another SIC code that is appropriate for your specific business model and operations.
SSA members in California should review SB 205, all SIC codes, and their exact business model to independently determine the most appropriate code(s) to use on their business license renewals. The SSA strongly recommends consultation with your legal counsel during this process.
If you have any questions, please contact Daniel Bryant at (703) 575-8000 x.107
California Self Storage Association5325 Elkhorn Blvd., #283 Sacramento, CA 95842P: 888-CSSA-207 or 888-277-2207F: 949-861-9425
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