CA: ICSC and Industry Groups Continue to Oppose SB 1103

ICSC  continues to oppose California Senate Bill 1103. The bill, introduced by Senator Carolina Menjivar (D – Van Nuys), would impose requirements that could be detrimental to property owners, as well as the small businesses and nonprofits it aims to protect.

SB 1103 was recently amended to include commercial rent control provisions for certain retail properties/tenants, including restaurants with up to 25 employees, non-profit organizations with up to 50 employees and corporations qualifying as microenterprises. The bill would also provide tenants with an affirmative defense in eviction or possession actions, which could potentially tie-up retail space for months and subject property owners to new penalties and fines, including:

• Costs for emergency repairs & major capital improvements
• Insurance premium increases
• Property tax increases
• Costs incurred to comply with new regulations
• Inflation-related increases
• Enhances to security measures in response to increased crime or threats

The measure passed California Senate with a vote of 22-10. The bill is expected to be voted on by the Assembly in early August.  

ICSC, the California Business Properties Association (CPBA) and other industry groups have submitted a coalition letter opposing SB 1103.

If you would like more information on this measure as it moves through the legislative process, contact us at gpp@icsc.com.