Client Alert
June 23, 2020
through Senate Appropriations Committee

On June 12 th , we sent out an Urgent Client Alert letting all of you know about Senate Bill 939 and its potential disastrous impact on commercial real estate. Many of you heeded the warning and we were impressed by the number of clients who reached out and wrote letters to senators.
On June 18 th , the bill failed to get enough support to move on. It is now being held in “suspense status” for the foreseeable future. Please see the statement received from the California Business Properties Association (CBPA) celebrating the victory.
We do not, however, believe this battle is over. Senator Weiner has made it very clear that he still intends to try and provide more substantial relief to commercial tenants. CBPA will continue to monitor all new bills to make sure SB 939 doesn’t find itself included in or piggybacked with some other bill.

Here is a statement released to the press on behalf of the coalition that coalesced to oppose this measure:
SB 939 (Weiner) fails to pass Senate Appropriations
Economic ramifications of this bill far too serious to play politics

Sacramento --  Opponents  of SB 939 (Wiener), including minority business groups like California Black Chamber of Commerce, California Asian Pacific Chamber of Commerce, Hispanic 100, and TELACU today were relieved that the bill was held on the suspense file and failed to make it out of the Senate Appropriations Committee.
Below is a statement from Rex S. Hime, President and CEO, California Business Properties Association (CBPA) about SB 939:

“Thankfully, legislators made the right choice to keep this bill on suspense. SB 939 is a bad bill. It is far too broad and would have done serious damage to California’s economy. We applaud those who believe policy is more important than politics in addressing the impacts of the COVID-19 pandemic.

“The negative impacts of SB 939 would have been particularly bad for affordable housing projects that rely on the commercial portion to secure funding, and currently underserved communities where investment capital is already difficult to attract. 

“Even though this bill is stalled out for now, we’ll be keeping watch to make sure the language doesn’t find its way back into another bill at some point.” 

Click here  to see a list of groups that joined together to push back against this ill-conceived policy measure.
Click here  to read the news story.

“Thank you to everyone that supported the Effort.” 

Reprinted with permission from CBPA.

Any information contained herein is intended for informational purposes
only and should not be construed as legal advice. Seek competent counsel
for advice on any legal matter.

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