Article PDF On April 17, 2019, the Treasury Department released a second round of proposed regulations (the "4/19 Regulations") providing additional guidance on the implementation of the Opportunity Zone (“OZ”) tax incentive included in the Tax Cuts and Jobs Act. The 4/19 Regulations are taxpayer-friendly and expand upon (but in some cases modify) the guidance provided in the initial proposed regulations released on October 19, 2018 (the "10/18 Regulations") ...
Article PDF On April 17, 2019, the Treasury Department released a second round of proposed regulations (the "4/19 Regulations") providing additional guidance on the implementation of the Opportunity Zone (“OZ”) tax incentive included in the Tax Cuts and Jobs Act. The 4/19 Regulations are taxpayer-friendly and expand upon (but in some cases modify) the guidance provided in the initial proposed regulations released on October 19, 2018 (the "10/18 Regulations") ...
Article PDF On April 17, 2019, the Treasury Department released a second round of proposed regulations (the "4/19 Regulations") providing additional guidance on the implementation of the Opportunity Zone (“OZ”) tax incentive included in the Tax Cuts and Jobs Act. The 4/19 Regulations are taxpayer-friendly and expand upon (but in some cases modify) the guidance provided in the initial proposed regulations released on October 19, 2018 (the "10/18 Regulations") ...
The Mitigation Fee Act, Government Code section 66000 et seq., authorizes local agencies to impose fees on development projects in order to cover the cost of public facilities needed to serve the developments. However, the local agencies' power to impose mitigation fees is not unlimited: the fees must be reasonably related to the increased burden on public facilities caused by the new development. (Gov. Code § 66000(b); 66001 ...
The IRS recently issued a new version of its Employee Plans Compliance Resolution System ("EPCRS") that gives sponsors of tax-qualified retirement plans additional options for self-correcting plan failures. The new EPCRS allows plan sponsors to use the Self-Correction Program ("SCP") in several circumstances, rather than requiring a Voluntary Compliance Program (VCP) filing with the IRS and payment of the applicable user fee ...
On April 16, 2019, the San Francisco Board of Supervisors unanimously approved the Community Opportunity to Purchase Act (COPA). The Mayor signed the legislation on May 3, 2019. COPA grants certain qualified nonprofit organizations the right of first offer and right of first refusal on sales of privately-owned buildings with three or more residential units and privately-owned property on which three or more residential units could be built ...
Effective April 22, 2019, new legislation expands the obligation of property owners to register vacant commercial storefront spaces with the City. The Board of Supervisors may also place a "vacancy tax" on November's ballot, which would tax owners for vacant storefronts after six months of vacancy. The newly effective measure amounts to an update of a previous ordinance that was passed in 2014. Both were introduced by District 1 Supervisor Sandra Lee Fewer ...
In a recent case involving a health care facility, the NLRB issued a 3-1 decision that significantly changed a successor employer's bargaining obligations before imposing the initial terms and conditions of employment on a unionized workforce. While seemingly favorable to employers, the decision also serves as a reminder to companies that they should act cautiously and consult with counsel before they take over a business with a unionized workforce ...
In a recent case involving a health care facility, the NLRB issued a 3-1 decision that significantly changed a successor employer's bargaining obligations before imposing the initial terms and conditions of employment on a unionized workforce. While seemingly favorable to employers, the decision also serves as a reminder to companies that they should act cautiously and consult with counsel before they take over a business with a unionized workforce ...
California Business and Professions Code Section 10083.2 requires the California Department of Real Estate (DRE) to provide information regarding the status of every DRE licensee on its website, including information regarding any disciplinary actions taken by the DRE against a licensee. The purpose of these disclosures is to ensure full transparency concerning information the DRE deems to present a "credible risk" to members of the public. The issue with Section 10083 ...
On March 13, the Ninth Circuit issued its highly anticipated opinion in HomeAway.com v. City of Santa Monica, upholding the City's ordinance restricting short-term home rentals on popular websites like Airbnb.com. Background In light of the severe housing crisis currently afflicting California, concerns have arisen over the impact of short-term home rentals on the supply of long-term housing ...
On March 4, 2019, the California Supreme Court ruled in Cal Fire Local 2881 et. al. v. California Public Employees' Retirement System that public retirement system members do not have a vested right to purchase "airtime" – nonqualified service credit unrelated to public service ...
As of January 20th, 2019, San Francisco no longer requires a minimum number of parking spaces in new structures or new uses. This new law applies Citywide to all zoning districts. Previously, the City eliminated the parking requirement in many zoning districts in order to reduce traffic congestion, encourage alternative forms of transportation, and lower the cost to build housing ...
San Francisco Supervisors Aaron Peskin and Rafael Mandelman introduced the "Housing Preservation and Expansion Reform Act" in December 2018, a proposed law which hopes to limit major renovations and demolitions plus limit the size of newly built or newly altered residential structures. The two sponsors believe the current process results in too many larger units and demolitions, and that there is a connection between the two ...
On February 13, 2019, Assembly Member Ash Kalra, District 27 (San Jose), introduced AB-506. If passed, AB-506 would amend California Health and Safety Code Sections 1423, 1424, and 1424.5 to grant the Department of Public Health the authority to issue more citations and higher penalty amounts ...
Employers in industries with fluctuating daily labor needs, such as retail services, often require employees to call in ahead of a scheduled shift to find out whether they are needed to work. According to a recently-published California Court of Appeal decision, employees who are required to use such a call-in procedure may be entitled to "reporting time pay" if they are told not to come to work that day—even if the employees do not physically report to work ...
On January 28, 2019, the California Department of Social Services issued a letter informing all licensed Residential Care Facilities for the Elderly that Title 22, Section 87224 of the California Code of Regulations has been revised. Section 87224 previously provided for a 30-day eviction notice to residents upon the change of use of a facility. This notice period was inconsistent with the applicable statute, Health and Safety Code Section 1569.682(a)(2) ...
The IRS recently issued proposed regulations to implement changes to the rules for hardship distributions from 401(k) plans made by the Bipartisan Budget Act of 2018 (“BBA”) that will take effect on January 1, 2019. The proposed changes will make hardship distributions more widely available and will ease administration of hardship distributions for plan sponsors ...
Capturing lightning in a bottle: As fast-growing San Francisco concludes its largest rezoning in 10 years, will its novel new urban-planning guidelines for South of Market represent what the city's downtown needs in a fast-moving business, cultural and economic environment? In early December 2018, the San Francisco Board of Supervisors gave final approval of the "Central SOMA Plan," (the Plan) resulting in the largest rezoning of the commercial heart of the city since the renowned Downt
"What are the 'waters of the United States'? As it turns out, defining that statutory phrase—a central component of the Clean Water Act—is a contentious and difficult task." This observation, recently made by Justice Sonia Sotomayor, understates the difficulty in answering what should otherwise be an anodyne question: Does my project require a Clean Water Act permit? At this moment, answers to this question may be far from certain ...
Last week, State Senator Scott Weiner (D-San Francisco) announced new legislation intended to immediately encourage more residential construction in areas near public transit and job centers. Entitled the More Housing, Opportunity, Mobility, Equity and Stability (More HOMES) Act, SB 50 is essentially version 2.0 of SB 827, a similar housing bill proposed by Senator Weiner that failed in committee earlier this year ...
Under the Affordable Care Act (“ACA”), large employers (generally those with 50 or more full-time employees or full-time equivalents) must report annually to the IRS information about the health coverage offered to their full-time employees during the prior year using IRS Form 1095-C. The IRS uses the forms to assess whether an employer "shared responsibility" penalty applies. Employers also must provide copies of the forms to their full-time employees ...
On November 20, 2018, the IRS Criminal Investigation (CI) unit issued a memorandum to IRS Division Commissioners on voluntary disclosure practice following the end of the Offshore Voluntary Disclosure Program (OVDP). How Did We Get Here? For the last 7 years, the IRS maintained a consistent, robust program for taxpayers with exposure to potential criminal liability or substantial civil penalties due to a willful failure to report foreign financial assets ...
New State Minimum Wage Effective January 1, 2019, the State minimum wage increases to $12.00 per hour for employers with 26 or more employees, and $11.50 per hour for employers with 25 or fewer employees. New Local Minimum Wages Additionally, several California cities and counties have passed their own minimum wage ordinances with a more aggressive schedule of minimum wage increases ...
As Fast-Growing San Francisco Concludes Its Largest Rezoning in Ten Years, Will Its Novel New Urban Planning Guidelines for South of Market Represent What the City’s Downtown Needs in A Fast-Moving Business, Cultural and Economic Environment? On November 13, 2018, the Board of Supervisors voted to approve the Central SOMA Plan at its first reading. Its final reading and approval, and the Mayor’s signature, is expected in December ...
