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.