A Message to our Members . . . from the road . . .
Dear Colleagues,
As your voice, we are actively continuing our shared legislative and outreach efforts through components in our “Advocacy on the Road.”
We were pleased to participate with AIA-CA and AIA-SF and our fellow components and chapters in the caucuses and voting at the Conference on Architecture. One major takeaway was the resounding floor resolution and vote on climate action. Following that, the AIA-California Committee on the Environment (COTE) has met and will be moving forward with additional visionary and far-reaching proposals for assertive climate action: in potential legislation; in outreach and in actions on the ground.
We all deeply appreciate Mark Christian’s exceptional energy, knowledge and talent reflecting AIA-California leadership and members’ voices on the many active legislative issues which affect our profession including housing; environmental issues; and practice. His important work continues with the Legislature on active and potential bills and in outreach and communications with the Executive Branch.
Over the past month, I have had the benefit of an introductory meeting with the California State Architect to reaffirm our shared mission and priorities and look forward to upcoming meetings with architects who are executives and leaders in federal, state and local government. Many items were shared, such as lessons learned, best government practices, and how we can inspire support for our AIA-California issues and actions.
Thanks to the ongoing commitment of my talented and passionate predecessor Mary Follenweider, AIA, we are actively engaged in the outreach and advocacy effort with meetings among the chapters. Mary is continuing with her meetings with chapters in Southern California through the summer and early fall. I am in the process of scheduling personal or video meetings with 4 other chapters in Northern California and the Central Valley. We look forward to reconvening soon with our Advocacy Advisory Liaisons.
I very much look forward to attending the AIA State Government Network conference in Providence, RI next month. This should provide a great deal of substantive information for our reference within the advocacy and legislative work.
It has been great to hear from some of you this past month! Please continue to contact me with ideas and sources of inspiration for our work as your Government Relations team.
Now on to the report!
Sales Tax on Services
The good news remains for this year: the legislation to enact a sales tax on services was not brought up for a vote this year. However, it could become a real issue next year. Governor Gavin Newsom recently told the San Francisco Chronicle that tax reform is needed to address tax revenue volatility, looking at a sales tax on services has the biggest area of agreement, except from those providing services, we may have to start taxing business-to-business services, but it will be difficult to enact because tax reform requires political will (starts around 7:40 mark of this SF Chronicle podcast).
As we mentioned in last month’s Advocacy Update, AIA CA is a member of a coalition of professional service providers opposing the effort to impose the sales tax on services, including architectural services. One of the first efforts of that coalition was the release of a study challenging the alleged benefits of a sales tax on professional services. You can read that study here.
Conflict of Interest Legislation
The legislation AIA California is sponsoring with ACEC California to change California’s conflict of interest laws has been put on hold. AB 626 would have amended state law to allow design professionals to enter into follow-on contracts with public clients without violating the conflict of interest law. Several contractor groups and their labor allies opposed our bill and, unfortunately, agreement of amendments could not be reached in time to keep AB 626 moving this year. Additionally, some media became critical of AB 626, including the Bay Area News Group, which ran an editorial urging its defeat.
AIA California and ACEC California are looking at options on continuing this effort in 2020.
Historic Preservation Tax Credit
SB 451, which AIA California is jointly sponsoring with the California Preservation Foundation to create a California historic preservation tax credit, passed the State Senate on a 36-0 vote in late May, and will have its first hearing in the State Assembly next week. Technical aspects of the bill are still being worked on, but we anticipate SB 451 to receive favorable votes in the State Assembly.