SB 789 (Menjivar; D-Van Nuys) was amended this week to introduce a new commercial property vacancy tax. Beginning July 1, 2028, owners of commercial properties that remain vacant for 182 or more days within a calendar year will be subject to a fee of five dollars per square foot. While the stated intent of the bill is to discourage prolonged vacancies and generate funding for first-time homebuyer assistance, its implementation will have severe consequences for the commercial real estate industry, tenants, and the broader economy. Several business organizations are actively collaborating to assess the potential impacts of this measure and build a strong coalition in opposition.

Join us next Wednesday, April 2nd, in Downtown Sacramento for the second in our series of Proposition 36 retail theft reform implementation events. This roundtable will bring together legislators, law enforcement, crime victim advocates, and retail real estate leaders to discuss progress on coordination, training, and funding for drug treatment programs. 

Space is limited - if you're interested in attending, email Matthew Hargrove at mhargrove@cbpa.com.

Our partners at the California Taxpayers Association (CalTax) are sounding the alarm on a devastating new tax proposal, Senate Bill 573 (Gonzalez; D-Long Beach). SB 573 would drastically increase California’s corporate tax rate, potentially reaching 19.5% for some businesses—the highest in the nation.

The bill ties tax rates to CEO-to-worker pay ratios and reductions in U.S. workforce while increasing reliance on foreign or contracted employment. If enacted, it would exacerbate the state’s affordability crisis, drive up consumer prices, and push businesses out of California, leading to widespread job losses. At a time when California should be fostering economic growth and stability, SB 573 threatens to do the opposite—making the state a less competitive and more challenging place to do business.

Assembly Bill 802 (Williams, D-Santa Barbara), signed into law in 2015, established a statewide energy benchmarking and disclosure program for commercial and multifamily buildings. Our industry played a key role in shaping this legislation, which aims to make energy usage data more accessible for building owners. The benchmarking requirement took effect in 2018 for buildings 50,000 square feet or larger.

Please be aware that third-party companies have approached member companies, attempting to exploit this requirement. Official energy benchmarking communications will only come from the California Energy Commission (CEC), headquartered at 715 P Street, Sacramento. Any correspondence from third parties regarding benchmarking requirements should be carefully reviewed. If you receive a communication and are unsure of its legitimacy, contact the CEC at Benchmarking@energy.ca.gov or (855) 279-6460.

BOMA California partner California Commission for Disability Access (CCDA) is hosting a webinar on their Accessible Guide to Parking for Business Owners and Operators, a toolkit that promotes awareness, summarizes requirements, and offers resources to help avoid those complaints involving issues with accessible parking and accessible routes. 

The webinar will take place on April 22nd at noon and will be an educational opportunity for business owners and operators to learn more about accessibility parking compliance.

The California Problem Solvers Caucus has appointed its co-chairs for the 2025-2026 Legislative Session: Senator Suzette Valladares (R-Santa Clarita) and Assemblymembers David Alvarez (D-San Diego), Heath Flora (R-Ripon), and Anamarie Ávila Farías (D-Martinez). 

Formed in 2020, the Caucus seeks bipartisan solutions to California’s challenges, including housing affordability, economic growth, and public safety. The co-chairs have emphasized a commitment to working across party lines to address issues such as affordable housing, quality education, and small business support.

We're pleased to support the Caucus and their mission to serve the people of California through collaborative, pragmatic leadership.