SACRAMENTO REPORT
By Greg McConnell, Legislative Advocate

2004 LEGISLATION YEAR END SUMMARY
We had a great 2003 - 2004 Legislative Session! We killed every bill we opposed. The only bills that passed were neutralized through careful negotiations. At this point, we are awaiting final action from the Governor on several bills. We anticipate that he will sign the remaining legislation and that most of the bills that we negotiated will be chaptered into law and take effect on January 1, 2005.

We continue to build a very strong reputation in the Capitol on housing policy. When major policy initiatives are considered, we are amongst the first to be called by Members of the Legislature, the Administration, committee consultants, legislative staffers, and our supporters and opponents. This is direct evidence that we are considered extremely strong on housing policy formation and very effective in communicating our positions on issues of importance.

Here is the year-end roundup as of September 20, 2004. For more information and direct links to each bill please visit www.themcconnellgroup.com and click on 2004 Legislation:
AB 1426 (Steinberg) Affordable Housing: Greater Sacramento Passed
AB 1850 (Cohn) Property Taxation: business records retention Dead
AB 2088 (Dutra) Residential real property: Costa Hawkins Inactive
AB 2348 (Mullin) Housing element: regional housing needs Passed
AB 2148 (Lowenthal) Housing Elements Passed
AB 2175 (Canciamilla) Conversion of Rental Housing Dead
AB 2194 (Cogdill) Prevailing wages: determinations: task force Dead
AB 2400 (Keene) Controlled Substances Meth Laboratories Dead
AB 2523 (Frommer) Controlled Substances - Unlawful Detainer Passed
AB 2582 (Lieber) Tenancy: environmental hazards Dead
AB 2583 (Lieber) Tenancy: personal information Dead
AB 2980 (Salinas) Housing element: self-certification Dead
SB 115 (Torlakson) Landlord Tenants - Payments Chaptered
SB 17 (Escutia) Property Taxation - Change Of Ownership Dead
SB 1145 (Burton) Tenancy Chaptered
SB 1404 (Soto) Multifamily improvement districts Passed
SB 1508 (Ducheny) Loans: restrictions: code violations Passed
SB 1609 (Dunn) Housing development projects: local agencies Dead
SB 1634 (Alarcon) Substandard conditions Dead
SB 1722 (Ducheny) Proposition 65: enforcement: judgments Dead

Next month, we will know every new law that will take effect. We will provide analysis in November and December articles on what changes need to be made in operations to ensure compliance with new laws.

TURNING OUR ATTENTION TO 2005-2006 LEGISLATIVE SESSION
It is now time to start considering our 2005 - 06 agenda. The good news is that I have had numerous discussions with Administration officials including Sunne McPeak, Secretary of Business, Transportation and Housing, and have been assured that the Governor will have a forceful housing production and pro-business agenda. We are very well positioned to be at the center of those efforts.

In addition, we have a new President of the Senate, Don Perata from Oakland. While he represents Oakland, which has rent control, Senator Perata is considered much more business friendly than his predecessor, John Burton, and his district is not nearly as anti-owner as San Francisco. We think we have a good shot at persuading Mr. Perata to moderate the overly pro-tenant approach used by Mr. Burton.

To be sure, we will have challenges next year. I have been informed that the tenant lobby will reintroduce legislation to require a 60-day notice of termination of tenancies and a host of other regulatory provisions. As well, an unrelenting core group of legislators will continue their constant legislative assaults that promote "social justice" at the expense of property owners. We will work with all members of the legislature to advance housing in California, but we will also make it clear that we will fight attempts to take away our members' rights.

As we get ready for next year, I have asked each association to convene its legislative committee to look into some of the most pressing problems and consider what a proactive agenda might look like. The only caveat is that while we are very strong on defense, we continue to face hostile "progressive" committees that will try to thwart major offensive reform.

I have also been considering new approaches that we may use to communicate more effectively next session. In addition to regular updates, Sacramento Reports, red alerts, and my website, I plan to hold monthly conference calls for McConnell Group Clients. This will give me a greater opportunity to get input and guidance on issues in a timely manner and ensure that all of the associations that I represent are in sync on strategies and tactics.

I encourage readers of this column to consider active involvement in your association if you have issues that you would like us to address. I also would like feedback from you on ways that I may provide better service to you. Please send me your thoughts.

ADDRESSING THE REPLACEMENT ROOMMATE ISSUE

I will be hosting meetings in October with owner and Realtor( groups in San Francisco, Los Angeles and other groups around the state to consider ways to address the replacement roommate issue that was the focus of AB 2088. I will update you on those efforts. For the time being, new lease provisions to use to protect your right to increase the rent when all original tenants no longer occupy the property are under review. Please contact your association for details.

In closing, it continues to be my privilege and honor to represent you in Sacramento. I hope to continue as your advocate for many years to come. We have enjoyed much success, but we can never become complacent. Let us continue to look for better ways to advance and protect the vital interests of housing providers in California.

Greg McConnell heads The McConnell Group, a California Advocacy and Consulting firm. The McConnell Group represents and advises apartment associations, property management companies, and individual owners throughout California.
For more information please visit www.themcconnellgroup.com.
( This article is copyrighted and cannot be republished without the consent of the author.)
1 (California Association of Realtors puts that number at 75% of the population)