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Government Relations & Public Policy

CA: Key Legislation Update

May 14, 2025

May 9 marked the deadline for California Senate and Assembly policy committees to hear and report non-fiscal bills introduced in their respective chambers. While advocacy efforts continue against several harmful proposals, there have been some early victories regarding vacancy tax and rent control.

SB 789: Statewide Vacancy Tax on Commercial Real Estate
This bill initially proposed a $5 per square foot tax on properties deemed "vacant." After significant pushback, the bill was substantially amended to remove the proposed vacancy tax and now requires owners of non-residential property to annually report vacancy details.
Status: Significantly amended to a study bill.  

AB 1157: Rent Control
This proposal would have capped annual rent increases at a maximum of 2 to 3% or the consumer price index, whichever is lower. It also would have eliminated the exemption for single-family homes and removed the sunset provision from the existing rent control law, AB 1482, making those regulations permanent.
Status: Turned into a two-year bill and blocked for the remainder of this session.

Many bills remain in play that ICSC and CBPA continue to advocate against.

SB 522: Mixed-Use Investment Deterrent
Would amend the Costa-Hawkins Rental Housing Act, with a focus on maintaining rent control for properties rebuilt after being destroyed by disasters such as wildfires or earthquakes. CBPA CEO Matthew Hargrove testified in opposition to SB 522 in early April in the Senate Judiciary Committee, joining the California Apartment Association in raising concerns. Hargrove emphasized that while the bill targets residential units, its impacts will ripple through mixed-use developments, discouraging much-needed reinvestment in properties that combine housing and commercial space. Hargrove warned that removing critical exemptions will undermine recovery efforts in fire-impacted communities, jeopardizing both housing and job restoration.
Status: Referred to Senate Committee on Local Government.

AB 246:  LA Rent Control Bill 
The bill seeks to impose a 3% rent cap through March 1, 2026, on residential units in Los Angeles County occupied before January 7, 2025, severely limiting property owners' ability to respond to rising costs and market conditions. ICSC and CBPA have advocated against this bill since its introduction.
Status: Referred to Assembly Appropriations Committee.

AB 380 would amend the Penal Code to impose stricter price controls leading to commercial rent control in emergencies.

AB 863 would require 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.

AB 405 would require retailers to report emissions and set supply chain reduction targets, because it imposes costly, duplicative mandates that overlap with existing laws. It risks raising consumer prices, straining small businesses, and diverting state resources—all without delivering meaningful environmental benefits.

ICSC and CBPA will continue to address these and other important legislative issues ahead of the September 12 session deadline.