Last Friday marked a key legislative deadline for the California Assembly and Senate to pass bills introduced in their respective houses.

Despite efforts to limit bill introductions, lawmakers introduced 2,739 new bills in 2025. More than 300 of these have the potential to impact commercial real estate. CBPA has taken positions on over 200 bills and, with the support of our coalition partners and members, successfully helped stop several harmful proposals—including SB 789 (Menjivar; D–Van Nuys), which sought to impose a commercial vacancy tax. While we’ve secured several important wins, many concerning bills remain active, including AB 380 (Gonzalez; D–Los Angeles), which would impose commercial rent control during emergencies.

Policy committees have now resumed hearings, with a July 18 deadline to take action before the Legislature breaks for a month-long summer recess.

Legislative leaders unveiled a budget plan that avoids Gov. Newsom’s deep cuts to health care, higher education, and social services by relying on borrowing and smaller reductions. The proposal protects Medi-Cal for undocumented residents with some limits, restores funding for UC, CSU, and the Middle Class Scholarship, and rejects cuts to reproductive health care.

The deal includes $110 million to implement Prop 36 and boosts affordable housing investments, but offers no new homelessness funding this year. Lawmakers also pushed back on Newsom’s plan to use climate funds for firefighting, limiting it to $1 billion over two years.

Proposition 36, passed by nearly 70% of California voters in 2024, strengthens penalties for repeat retail theft and restores accountability measures weakened by Prop 47. CBPA is a strong supporter of the initiative and has worked closely with partner organizations to help ensure effective implementation.



Although voters overwhelmingly supported the measure, recent budget proposals have failed to provide the funding necessary to ensure its successful implementation. We applaud lawmakers for allocating funding in a tough budget year, but remain concerned that key components—like County Behavioral Health and Probation—are still underfunded. One-time funding and the lack of support for probation services could undermine the long-term success of the measure. CBPA urges the Legislature to more fully fund Prop 36 to uphold the will of voters and protect communities and businesses across the state.

Senate Democrats have elected Sen. Monique Limón of Santa Barbara as the next leader of the California Senate, marking a historic first for a woman of color in the role. A progressive lawmaker with strong union backing, Limón is known for her work on pay transparency, consumer protections, and environmental regulation—including a 2022 law requiring buffer zones around oil and gas wells.

She will take over from current Senate President Pro Tem Mike McGuire next year following a quiet leadership challenge within the caucus. We look forward to working with Senator Limón as she assumes the new role.

Earlier this week, CBPA issued a call to action urging members to oppose Assembly Bill 380 (Gonzalez; D–Los Angeles), which proposes major changes to California’s emergency price gouging laws by extending them to commercial leases. The bill would override existing contracts, cap rent increases during declared emergencies, ban evictions even for nonpayment, and block property owners from recovering increased costs related to insurance, taxes, or repairs. It also allows local governments to extend these restrictions indefinitely—creating long-term market uncertainty. CBPA is leading a coalition of over 25 business groups in strong opposition.

Last week marked a major milestone in the legislative calendar, with both the State Assembly and Senate Appropriations Committees taking action on their respective suspense files. As we now head into the final week before the house of origin deadline, CBPA is proud to report several key developments that reflect the strength of our coalition advocacy and strategic engagement.

With next Friday's deadline quickly approaching, CBPA will remain fully engaged in floor vote advocacy—particularly on AB 380—and will continue building momentum to secure key wins for the commercial real estate industry this session.

A recent CalMatters article highlights how California’s ports are experiencing a significant downturn in cargo traffic and job availability, now surpassing COVID-era lows. Volatile trade policies and high tariffs have led to vessel cancellations and stalled imports, disrupting the supply chain and impacting workers across Long Beach, Los Angeles, and Oakland. While a temporary tariff reduction has offered limited relief, a recent court ruling has added new legal uncertainty to the situation.

CBPA continues to work closely with the Pacific Merchant Shipping Association and the Supply Chain Federation on this issue, and co-chairs the Goods Movement Alliance—working to monitor and respond to these evolving challenges.

Tomorrow is a crucial deadline in the California Legislature, as all fiscal bills must pass out of the Assembly and Senate Appropriations Committees to continue moving forward. These powerful committees act as gatekeepers, reviewing legislation with significant financial implications for the state. The fate of dozens of priority bills will be decided in these hearings.

Bills scheduled to be heard in the Appropriations Committees include the industry-sponsored EV fire safety measure, AB 588 (Patel; D–San Diego), as well as several high-priority oppose bills. These include AB 380 (Gonzalez; D–Los Angeles), which proposes commercial rent control, and SB 789 (Menjivar; D–Van Nuys), which would mandate vacancy reporting—among many others. We’ll have a full update on the outcomes next week.

Tuesday night at the ballpark was a win for our industry—despite the hometown loss on the field! Our PAC @ the Ballpark event, co-hosted with the California Retailers Association, brought together public officials and industry leaders for a memorable evening in West Sacramento as the A’s took on the Angels. Huge thanks to our sponsors and attendees—your support made it all possible!

This morning, the U.S. House passed the budget reconciliation bill marking a significant victory for the commercial real estate industry. Despite narrow margins, the bill moved forward without several harmful tax changes, thanks to strong advocacy by our national partners at ICSC, NAIOP, and BOMA. Key protections include preserving the business SALT deduction, maintaining capital gains treatment for carried interest, and leaving Section 1031 exchanges untouched.

The bill also includes several pro-growth provisions: 100% bonus depreciation extended through 2029, a permanent 23% pass-through deduction, adjusted interest expense limitations, and an extension of Opportunity Zones through 2033 with a rural focus. Additional wins include a 12.5% increase in the low-income housing tax credit and an estate tax exemption raised to $15 million per individual. A SALT cap compromise raises the limit to $40,000 for certain income levels. While the adaptive reuse tax credit was not included, our industry continues to prioritize its advancement as the bill heads to the Senate.

CBPA along with numerous California business and consumer groups are strongly supporting Insurance Commissioner Ricardo Lara’s approval of an interim rate increase for State Farm, a critical step toward stabilizing the state’s homeowners and commercial insurance markets.

The decision enables a $400 million capital infusion and halts planned nonrenewals, helping ensure continued coverage for over 20% of California homes. The move protects consumers, prevents further market deterioration, and lays the groundwork for long-term affordability and access to insurance across sectors.

Governor Newsom has endorsed two major housing bills aimed at easing California’s housing crisis by scaling back environmental review requirements. AB 609 (Wicks; D-Oakland) would exempt most infill housing projects from review under the California Environmental Quality Act (CEQA), while SB 607 (Wiener; D-San Francisco) includes broader reforms to streamline project approvals and relax zoning rules for infill development. Newsom has tied both bills to his state budget proposal, signaling strong executive support for regulatory reform.

CBPA supports both AB 609 and SB 607, viewing them as critical steps toward accelerating housing production. These bills cut red tape and promote affordability, marking one of the most significant recent efforts to reform CEQA. While they represent a strong start, we encourage the Governor and Legislature to pursue broader reforms that impact a wider range of housing projects and more effectively address the state’s housing crisis.

CBPA joins the California Retailers Association and other allied organizations in opposing AB 405 (Addis; D-San Luis Obispo). While the bill aims to reduce the fashion industry's environmental impact through emissions reporting and supply chain requirements, its broad scope applies to all retailers selling apparel or textiles—not just fast fashion. These mandates would significantly raise compliance costs and consumer prices, worsening California’s affordability crisis.

AB 405 also duplicates existing laws creating regulatory confusion and straining state resources already stretched by other climate and affordability priorities. We urge the Legislature to hold AB 405 and focus instead on strengthening implementation of current sustainability laws.

Join us for an exclusive industry fundraiser to support the CalRETAILERS Political Action Committee and the California Business Properties Association PAC in a private suite at the new home of the Athletics!

Enjoy premium hospitality as we watch the A’s take on the Los Angeles Angels at Sutter Health Park in West Sacramento. Special guests to include Orange County Area Legislators. Limited space remains - secure your spot today!

The 2025 legislative session has proven to be one of the most challenging in recent memory for the commercial real estate industry, with numerous bills taking direct aim at our sector.

Last Friday marked the deadline for Senate and Assembly policy committees to hear and report non-fiscal bills introduced in their respective chambers. While our advocacy efforts continue against several harmful proposals, we’re pleased to report key early victories—several problematic bills we have opposed have been significantly amended or blocked.

On Monday, CBPA Sponsored AB 1435 (Nguyen; D-Elk Grove), The Business Clean-Up Relief Act of 2025, was held in the Assembly Revenue and Taxation Committee pausing its advancement this legislative session.

The bill aimed to provide targeted tax relief to businesses and commercial property owners burdened by the high costs of unauthorized encampment cleanup. Despite recent amendments that narrowed its scope and strengthened fiscal accountability, the measure was held on the committee’s suspense file due to the state’s uncertain fiscal outlook and projected budget deficit.

AB 863 (Kalra, D-San Jose) requires property owners to serve eviction and lease termination notices in a tenant’s primary language if it was used in negotiations or is reasonably known. Though intended for residential protections, the bill also applies to commercial property, creating legal risks, vague compliance standards, and added administrative burdens.

Our industry opposes AB 863 for overreaching and exposing owners to invalidated evictions over technicalities. CBPA's Senior Director of Government Relations Skyler Wonnacott provided opposition testimony in Tuesday's Assembly Judiciary Committee meeting, where the bill passed and now proceeds to the Assembly Appropriations Committee. We are now urging you to contact committee members to oppose the bill.

CBPA joined forces with the California Self Storage Association and several coalition partners to successfully oppose SB 709 (Menjivar; D-Van Nuys) - a bill that would have imposed price controls on the self-storage industry. Initially, the bill sought to cap rent increases at the lower of 5% plus CPI or 10% annually. Thanks to coordinated advocacy and direct engagement with Senate Judiciary Committee members the bill was amended to replace rent caps with more reasonable transparency and disclosure provisions.

While the changes mark a significant improvement, CBPA continues to oppose any legislation that limits the ability of commercial property owners to operate under free-market conditions. The outcome of SB 709 underscores the importance of a unified business community in protecting the industry from overregulation.

CBPA was featured in a recent Sacramento Business Journal article discussing SB 789 (Menjivar, D-Van Nuys) which would enact a requirement for commercial owners to submit an annual report to the state on any vacancies in their properties.

SB 789 originally proposed a $5/sq ft statewide vacancy tax on commercial properties but has since been amended to remove the tax. Despite this change, we remain opposed, as the bill still requires non-residential property owners to report detailed vacancy data annually to the state. We continue working with partners to oppose this burdensome mandate and advocate for more practical alternatives.

The California Energy Commission (CEC) conducted the first of several task force meetings to develop a Building Performance Standard (BPS) Strategy Report that must be submitted to the Legislature by August 2026. With over 90 participants in attendance, the CEC contractors and staff received a wealth of recommendations from the business community, which included the following themes:

• The timing of any retrofits should coincide with the useful life of the equipment and be aligned with the capital cycle for tax purposes.
• The state needs to provide some protection from conflicting local ordinances.
• The energy data provided must lead to actionable recommendations instead of vague and ambiguous ones.
• The impact of any up-front cost must be balanced against the measure's projected cost-effectiveness over time.

On a very encouraging note, there was wide consensus that the CEC should strongly consider the recommendations of experts in the commercial and multi-family real estate industry.

SB 667 (Archuleta; D-Norwalk), would cap freight train lengths at 7,500 feet and mandate frequent safety inspections using “wayside detectors,” aiming to prevent derailments like the 2023 East Palestine, Ohio incident. The bill has advanced despite concerns about its legality, high costs, and potential delays for passenger rail service. Supporters argue shorter trains improve safety, while rail companies dispute this and warn of increased operational costs and disruptions.

The bill could raise consumer prices and slow passenger trains already struggling with reliability. Legal experts and legislative analysts also argue the bill is almost certainly preempted by federal law, which governs train regulation. Despite these issues, the bill passed its first committee, reflecting lawmakers' reluctance to publicly oppose union-backed legislation.

CBPA sponsored AB 1435 (Nguyen; D-Elk Grove), the Business Clean-Up Relief Act of 2025, has been updated with key amendments to sharpen its focus and enhance fiscal accountability. The bill offers targeted tax relief for property owners and small businesses facing the rising costs of unauthorized encampment cleanup. The bill was heard in the Assembly Revenue and Taxation Committee last week and is scheduled for a final committee vote on Monday.

Amendments to AB 1435 include a $20,000 annual cap per taxpayer and limit eligibility to specific, verifiable cleanup expenses such as waste removal, sanitization, minor repairs, and passive deterrents. The measure continues to gain support from business groups, city leaders, and community advocates seeking relief for property owners impacted by these ongoing challenges.

Both SB 415 (Reyes; D-San Bernardino) and AB 735 (Carrillo; D-Palmdale), key cleanup bills related to the new warehouse development law AB 98, successfully passed their first policy committee hearings yesterday. CBPA testified on behalf of the coalition, maintaining a neutral position - acknowledging the positive amendments made while emphasizing that key issues still needed to be resolved.

AB 98, passed in 2024, severely restricted warehouse development, and CBPA has been leading efforts to amend and fix the bill. While the amendments so far reflect coalition input, further work is required on four priority areas: redevelopment of existing assets, implementation triggers, buffer area clarification, and internal site circulation. CBPA and its partners will continue to engage with legislators and staff to address these concerns.

In a unanimous bipartisan vote, the Assembly Committee on Emergency Management approved CBPA sponsored AB 588 (Patel; D-San Diego). The bill establishes a working group within the Office of the State Fire Marshal to create safety standards for lithium-ion battery systems and EV charging infrastructure—key components of California’s clean energy future.

As battery and EV infrastructure expands rapidly, clear safety guidance has lagged behind. AB 588 brings together experts from the fire service, building industry, and commercial real estate to develop best practices and training materials. This bill is a proactive step to protect people and property while supporting California’s environmental goals. The measure now heads to the Assembly Appropriations Committee.

On Monday, CBPA, Sacramento Mayor Kevin McCarty, and Assemblymember Stephanie Nguyen formally announced our industry sponsored bill, AB 1435 - The Business Clean-Up Relief Act of 2025, which provides tax relief to businesses burdened with cleanup costs from encampments on private property. The announcement has garnered media attention with coverage from The Sacramento Bee, FOX40, and KFBK Radio.

This legislation is a strong first step toward addressing a critical issue affecting our members and businesses statewide, and we will continue to keep you updated as AB 1435 moves through the legislative process.

After significant pushback from stakeholders, including many of our members, SB 789 (Menjivar; D-Van Nuys) has been substantially amended to remove the proposed $5-per-square-foot vacancy tax. While this change marks important progress, we remain opposed to the bill.

As amended, SB 789 now requires owners of non-residential property to annually report vacancy details—including the number of vacant days, reasons for vacancy, and any ongoing renovations—to the California Department of Tax and Fee Administration. Property owners who fail to report would face state-imposed penalties.

Our industry will continue to argue that this unnecessary and expensive data collection mandate will cost the state millions and deliver little value. We will keep working with our coalition partners to oppose this burdensome proposal and advocate for more effective, practical solutions.

As Los Angeles faces a significant budget deficit, SB 709 (Menjivar; D-Van Nuys) would further strain local finances by imposing price caps on self-storage units—reducing property values and slashing over $140 million in local tax revenue each year. This includes more than $61 million in lost funding for public schools, which would need to be backfilled by the state.

With cities, counties, and school districts already under fiscal pressure, this bill threatens critical public services and should be opposed. We are actively working with our coalition partners to oppose SB 709 and will continue to keep you informed as it moves through the Legislature.

A recent Spectrum News 1 article offers an update on Proposition 36, California’s new law aimed at curbing repeat drug and theft offenses. Early data suggests it’s effectively targeting habitual offenders—90% of those recently arrested for retail theft had prior convictions.

However, officials warn that the law’s impact is being undercut by a lack of funding for court-ordered treatment, a key part of its design. Supporters are now urging the state to allocate hundreds of millions in funding to expand treatment programs.

CBPA was an early advocate for Prop 36 and has remained actively engaged in its rollout, participating in key implementation meetings in Los Angeles last December and in Sacramento earlier this month.

In case you missed it: CBPA and California Taxpayers Association (CalTax) are leading a fast-growing statewide coalition in strong opposition to Senate Bill 789 (Menjivar; D-Van Nuys), a just-unveiled proposal that would impose a $5-per-square-foot annual tax on vacant commercial properties. The bill, slated to take effect in 2028, also threatens a steep 75% penalty for reporting errors related to the tax.

The Senate Revenue and Taxation Committee is set to hear SB 789 on Wednesday, April 23. We urge you to contact state senate representatives ASAP to push back against this bill.

On Monday, April 21, Assemblymember Stephanie Nguyen (D-Elk Grove) will join CBPA and local business leaders to announce AB 1435, the Business Clean-Up Relief Act of 2025. The bill offers a five-year tax credit to cover costs from encampment-related cleanup, vandalism, and security on private property.

Sponsored by CBPA, AB 1435 aims to help small businesses recover, promote safe neighborhoods, and address growing challenges in commercial areas. A press conference will be held ahead of the bill’s hearing in the Assembly Revenue and Taxation Committee.

This CBPA-sponsored bill is part of our ongoing work to not only oppose harmful legislation, but also advance real solutions to the challenges facing our industry.

CBPA President & CEO Matthew Hargrove joined a panel of industry leaders at the Fresno County Economic Development Corporation’s 20th Annual Real Estate Forecast on April 10.

Speaking to an audience of real estate professionals, Hargrove emphasized the growing burden commercial property owners face from an overwhelming volume of state legislation. The newly proposed bills highlighted would have wide-ranging impacts, especially in regions still recovering from years of economic slowdown. 

Special thanks to Fresno County EDC for inviting CBPA to participate!

Get ready, LA! CBPA and our affiliate BOMA California are thrilled to partner with BOMA Pacific Southwest to present their first conference in three decades—and it's all going down next Thursday in Los Angeles!

This long-anticipated event promises to bring together the best and brightest minds in commercial real estate for a day packed with high-impact education, inspiring speakers, and powerful networking opportunities. Whether you're looking to stay ahead of industry trends, gain fresh insights, or build lasting connections, this is the place to be.

CBPA partner California Commission for Disability Access (CCDA) is hosting a webinar on their Accessible Guide to Parking for Business Owners and Operators, a toolkit that promotes awareness, summarizes requirements, and offers resources to help avoid those complaints involving issues with accessible parking and accessible routes. 

The webinar will take place on April 22nd at noon and will be an educational opportunity for business owners and operators to learn more about accessibility parking compliance.