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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. 


Questions? Contact CBPA Senior Director of Government Relations Skyler Wonnacott at


Senate Bill 1103 (Menjivar) poses a grave threat to the vitality of commercial real estate in our community.

SB 1103 fails to grasp the intricate dynamics of commercial leasing, aiming to impose blanket regulations that could devastate both property owners and the very businesses and nonprofits it claims to protect.

Capping security deposits at one month's rent disregards crucial risk management strategies, potentially deterring landlords from leasing to new or financially unproven enterprises.

Ignoring the fundamental differences between business-to-business (B2B) and business-to-individual (B2I) transactions undermines the flexibility and mutual benefits inherent in commercial leasing agreements.

Overlooking critical elements like NNN (triple net lease) expenses could disrupt the economic balance of commercial real estate, impacting landlords and tenants alike.

We cannot afford to let SB 1103 strip away the safeguards and flexibility essential for the growth and success of small businesses and nonprofits. Act now to protect our community's economic future!

Contact your legislators TODAY and urge them to oppose SB 1103. Together, we can safeguard the vitality of our commercial real estate market and ensure a thriving environment for businesses of all sizes.

Protecting commercial real estate for over 50 years

Office: (916) 443-4676


1121 L Street, Suite 501
Sacramento, CA 95814

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