Senate Bill 1103 - Detrimental Commercial Lease Mandates |
CBPA is advocating against Senate Bill 1103 (Menjivar; D – Van Nuys), which would disrupt the commercial leasing landscape by imposing requirements detrimental to both property owners and the small businesses and nonprofits this bill aims to protect. The bill proposes to cap security deposits at one month's rent, disregarding the role of deposits in risk management and post-tenancy restoration efforts. Such restrictions could deter property owners from leasing to emerging businesses, contradicting the bill's intent to support them. A crucial oversight of SB 1103 is failure to differentiate between the dynamics of business-to-business and business-to-individual transactions, which are drastically different. CBPA staff along with Board Member Sarahann Shapiro have met with the bill author, sponsors, and Senate Judiciary Committee to inform them of the negative consequences of this bill. |
Current Status: This bill has been referred to the Senate Judiciary Committee and is awaiting a hearing.
RESOURCES
Questions? Contact CBPA Senior Director of Government Relations Skyler Wonnacott at swonnacott@cbpa.com. |
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CALL TO ACTION Contact Members of the Senate Judiciary Committee to Urge Them to Oppose SB 1103 |
You may also contact representatives for the districts you live and own assets in who are not on the committee.
Find your representatives here.
Senator Thomas J. Umberg (Chair) Senator Scott Wilk (Vice Chair) Senator Benjamin Allen Senator Anna M. Caballero | Senator María Elena Durazo Senator John Laird Senator Dave Min Senator Henry Stern |
SAMPLE MESSAGE TO SENATE JUDICIARY COMMITTEE MEMBERS
Dear Senator __________________,
I write to express my strong opposition to Senate Bill 1103 (Menjivar). This bill will hurt small tenants and property owners alike as it does not recognize the fundamental differences between commercial (business-to-business) and residential (business-to-individual) real estate transactions.
If enacted into law, this bill will jeopardize the flexibility and mutual benefits of negotiating a commercial lease/contract between two willing businesses. Capping security deposits at one month's rent disregards their essential role in risk management and post-tenancy restoration, particularly for new or financially unproven businesses, potentially dissuading landlords from leasing to these enterprises. The recent amendments to SB 1103 make the bill worse and impose complex and ambiguous regulations that disproportionately burden small to mid-sized property owners. These changes introduce costly compliance challenges and prevent owners from covering essential maintenance and legal compliance costs. Further, requiring property owners to detail all operational costs upfront contradicts traditional management practices, potentially causing financial strain for both owners and tenants.
I urge you to oppose Senate Bill 1103. Thank you for your attention to the critical matter.
Sincerely,
Insert your name/organization
Protecting commercial real estate for over 50 years | Office: (916) 443-4676 | Address: 1121 L Street, Suite 501 |