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SACRAMENTO, CA - Governor Gavin Newsom has signed Assembly Bill 2418 (González), a measure sponsored by the California Business Properties Association (CBPA) and co-sponsored by BOMA Greater Los Angeles and CREDA SoCal, with critical support from CREDA California, to address prolonged commercial plan-checking delays and help businesses open, expand and put vacant commercial space to use.
“Accountability and predictability when opening a business are essential, and the current delays in routine inspections and permitting are ridiculous," said Assemblymember Mark González (D-Los Angeles). “AB 2418 will speed up that process and cut down on excessive delays and gives businesses additional flexibility for when these reviews stall. Thank you to our commercial real estate partners for working with me to help our businesses in Downtown Los Angeles and across the state."
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.
“Assemblymember Mark González reached out early this year to ask how he could help revitalize downtown Los Angeles. He listened to our members and took on the permitting delays standing in the way of business openings and investment,” said Michele Ware, President and CEO of BOMA Greater Los Angeles. “We sincerely thank our Assemblymember for authoring AB 2418 and delivering this reform. He stays in touch, understands our concerns and follows through. Downtown needs that kind of leadership.”
The new law builds on residential permitting reforms signed into law last year under AB 253 (Ward) and AB 1308 (Hoover), bringing similar efficiencies to qualifying commercial projects. Routine interior improvements can take months to receive approvals, disrupting lease timelines and postponing business openings. AB 2418 provides an additional review option for projects facing prolonged delays.
“Commercial permitting delays affect entire communities. They keep commercial spaces vacant, prevent businesses from opening and delay new jobs,” said Tim Jemal, CEO of CREDA SoCal. “AB 2418 gives qualifying projects another option when local plan reviews get backed up. We thank Assemblymember González and Governor Newsom for helping businesses open their doors and put these spaces to work.”
“AB 2418 and our sponsored bill, AB 1693, will help businesses complete tenant improvements and open their doors sooner, bringing new jobs and activity to California communities,” said Rachel Michelin, President and CEO of the California Retailers Association. “We thank Assemblymembers Mark González and Rick Chavez Zbur for taking on the permitting delays businesses face, and Governor Newsom for signing both measures into law.”
Governor Newsom featured AB 2418 in today’s announcement of new laws to support small businesses, cut red tape and expand opportunities for entrepreneurs.
“We applaud Governor Newsom for recognizing that commercial permitting is needed keep small businesses thriving in California,” said Matthew Hargrove, President and CEO of CBPA. “We are excited to see AB 2418 and AB 1693 which focuses on expediting permits for retailers, signed into law and sincerely thank Assemblymember González and his staff for their tireless work on this effort and the close partnership we’ve forged along the process.”
CBPA was proud to sponsor AB 2418 alongside BOMA Greater Los Angeles and CREDA SoCal. We thank both co-sponsors and the broader coalition of 25 business organizations for helping get the legislation passed and signed by the Governor.
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