Dear NAIOP SoCal Members, Advocates and Friends:

A new state legislative bill, which is a vehicle for commercial rent control, will be heard before the CA State Senate Judiciary Committee on Tuesday, April 30. The bill, SB 1103 (Menjivar), will upend commercial tenant-landlord relationships, limit security deposits, and add complex and ambiguous regulations to the business-to-business relationship. SB 1103 will have detrimental consequences not only on commercial landlords but also on small businesses and not-for-profit organizations that the bill is trying to protect.

NAIOP SoCal is calling on the commercial real estate industry to voice our strong opposition on SB 1103 to Members of the Senate Judiciary Committee. It only takes a minute of your time to respond to NAIOP SoCal’s Action Alert by emailing (Note: Submit a pre-written email) and/or calling State Senate Judiciary Committee Members (Note: See list of Members below to call) if you are a constituent or own assets in the Members’ respective Senate Districts.

SB 1103 is harmful to commercial property owners and tenants alike because it:

• Fails to recognize the fundamental uniqueness of business-to-business relationships in lease contracts and negotiations.
• Makes it more difficult for undercapitalized businesses to secure leases and will hinder the growth of start-up businesses.
• Jeopardizes the potential for flexibility and mutual benefits when a commercial landlord and tenant negotiate a lease or contract.
• Prohibits commercial property owners from receiving payment of the first month’s rent either “on or before initial occupancy,” and cap security deposits at one month's rent. Restrictions on timely lease payments as well as security deposits disregard their essential role in risk management and post-tenancy restoration – particularly for financially insecure or newly established small businesses – potentially dissuading landlords from leasing to such enterprises.
• Imposes complex and ambiguous regulations, which would disproportionately burden small to mid-sized commercial property owners. The bill specifically poses a challenge to property owners in their efforts to cover essential maintenance and legal compliance costs.
• Requires commercial landlords to detail operational costs up-front. This contradicts with traditional management practices, potentially causing unnecessary financial stress upon property owners and tenants.If you are a constituent or own an asset in the following CA Senators’ Districts, please call the Senator’s Sacramento Office and articulate the following suggested phone script

My name is ________________. I am a constituent residing in _______________ // or // I own a property in ________________. I urge the Senator to vote NO on SB 1103 (Menjivar) during the Tuesday, April 30th hearing on this bill before the Senate Judiciary Committee.

 

Members of the CA State Senate Judiciary Committee:

(Chair) Senator Thomas J. Umberg (D-34)
Key Cities in District: Anaheim, Santa Ana, Fullerton, Buena Park, La Habra
Phone: (916) 651-4034

(Vice Chair) Senator Scott Wilk (R-21)
Key Cities in District: Lancaster, Palmdale, Hesperia, Victorville, part of Santa Clarita.
Phone: (916) 651-4021

Senator Benjamin Allen (D-24)
Key Cities in District: Santa Monica, Torrance, Manhattan Beach, Beverly Hills, El Segundo, West Hollywood
Phone: (916) 651-4024

Senator Angelique Ashby (D-8)
Key Cities in District: Sacramento, Elk Grove
Phone: (916) 651-4008

Senator Anna M. Caballero (D-14)
Key Cities in District: Fresno, Merced, Madera
Phone: (916) 651-4014

Senator María Elena Durazo (D-26)
Key Cities & Unincorporated Areas in District: Los Angeles, City of Vernon, East Los Angeles
Phone: (916) 651-4026

Senator John Laird (D-17)
Key Cities in District: Monterey, Pacific Grove, Santa Cruz, San Luis Obispo, Paso Robles, Gilroy
Phone: (916) 651-4017

Senator Dave Min (D-37)
Key Cities & Unincorporated Areas in District: Irvine, Newport Beach, Costa Mesa, Lake Forest, Laguna Beach, Laguna Woods, Tustin, North Tustin, parts of Huntington Beach and Orange.
Phone: (916) 651-4037

Senator Roger Niello (R-6)
Key Cities in District: Roseville, Rancho Cordova, Carmichael, Folsom, Lincoln, Rocklin, Yuba City
Phone: (916) 651-4006

Senator Henry Stern (D-27)
Key Cities in District: Agoura Hills, Calabasas, Hidden Hills, Malibu, Moorpark, Simi Valley, Thousand Oaks, Westlake Village, part of Santa Clarita, and the City of Los Angeles communities of Canoga Park, Chatsworth, Encino, Lake Balboa, Porter Ranch, Reseda, Tarzana, West Hills, Winnetka and Woodland Hills.
Phone: (916) 651-4027

Senator Aisha Wahab (D-10)
Key Cities in District: Fremont, Hayward, Santa Clara, Sunnyvale, Milpitas, part of San Jose.
Phone: (916) 651-4410

Please share this Action Alert with colleagues and friends and urge them to take action before 1:00 PM (Pacific Time) on Tuesday, April 30, 2024.