On Monday, industry Sponsored AB 1435 (Nguyen; D-Elk Grove), The Business Clean-Up Relief Act of 2025, was held in the Assembly Revenue and Taxation Committee pausing its advancement this legislative session.

The bill aimed to provide targeted tax relief to businesses and commercial property owners burdened by the high costs of unauthorized encampment cleanup. Despite recent amendments that narrowed its scope and strengthened fiscal accountability, the measure was held on the committee’s suspense file due to the state’s uncertain fiscal outlook and projected budget deficit.

AB 863 (Kalra, D-San Jose) requires 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. 

Our industry opposes AB 863 for overreaching and exposing owners to invalidated evictions over technicalities. BOMA California's Senior Director of Government Relations provided opposition testimony in Tuesday's Assembly Judiciary Committee meeting, where the bill passed. We're now urging you to contact members of the Assembly Appropriations Committee to oppose this bill.

The California Energy Commission (CEC) conducted the first of several task force meetings to develop a Building Performance Standard (BPS) Strategy Report that must be submitted to the Legislature by August 2026. With over 90 participants in attendance, the CEC contractors and staff received a wealth of recommendations from the business community, which included the following themes:

• The timing of any retrofits should coincide with the useful life of the equipment and be aligned with the capital cycle for tax purposes.
• The state needs to provide some protection from conflicting local ordinances
• The energy data provided must lead to actionable recommendations instead of vague and ambiguous ones.
• The impact of any up-front cost must be balanced against the measure's projected cost-effectiveness over time.

On a very encouraging note, there was wide consensus that the CEC should strongly consider the recommendations of experts in the commercial and multi-family real estate industry.

The commercial real estate coalition joined forces with the California Self Storage Association and other coalition partners to successfully oppose SB 709 (Menjivar; D-Van Nuys) - a bill that would have imposed price controls on the self-storage industry. Initially, the bill sought to cap rent increases at the lower of 5% plus CPI or 10% annually. Thanks to coordinated advocacy and direct engagement with Senate Judiciary Committee members the bill was amended to replace rent caps with more reasonable transparency and disclosure provisions.

While the changes mark a significant improvement, we continue to oppose any legislation that limits the ability of commercial property owners to operate under free-market conditions. The outcome of SB 709 underscores the importance of a unified business community in protecting the industry from overregulation.

SB 667 (Archuleta; D-Norwalk), would cap freight train lengths at 7,500 feet and mandate frequent safety inspections using “wayside detectors,” aiming to prevent derailments like the 2023 East Palestine, Ohio incident. The bill has advanced despite concerns about its legality, high costs, and potential delays for passenger rail service. Supporters argue shorter trains improve safety, while rail companies dispute this and warn of increased operational costs and disruptions.

The bill could raise consumer prices and slow passenger trains already struggling with reliability. Legal experts and legislative analysts also argue the bill is almost certainly preempted by federal law, which governs train regulation. Despite these issues, the bill passed its first committee, reflecting lawmakers' reluctance to publicly oppose union-backed legislation.