California: Governor Newsom Enacts Bill to Cut Permitting Delays

California Governor Gavin Newsom (D) recently signed AB 2418, legislation aimed at reducing lengthy commercial plan-checking delays and accelerating the opening, expansion and reuse of commercial properties. The measure was supported by ICSC, the California Business Properties Association (CBPA), BOMA Greater Los Angeles and CREDA California.

AB 2418 allows applicants for qualifying tenant improvements in existing Group B (Business Occupancy) buildings to hire a qualified third-party plan checker, at their own expense, after an extended review delay. Local agencies retain authority over reviewer qualifications, project eligibility and final permitting decisions.

For commercial property owners and tenants, the new law addresses a longstanding challenge: routine interior tenant improvements often face lengthy plan-check timelines that can disrupt lease commitments, postpone store openings and leave commercial space vacant longer than necessary. By providing an alternative review option when local approval processes stall, AB 2418 seeks to help businesses open, expand and fill vacant commercial properties more quickly.

AB 2418 builds on the framework established by AB 253, the California Residential Private Permitting Review Act, and AB 1308, which established timelines for certain residential building inspections. Together, these measures are intended to improve permitting efficiency and reduce bottlenecks that can delay construction and occupancy.