CBPA is advocating against Senate Bill 1103 (Menjivar; D – Van Nuys), which would disrupt the commercial leasing landscape by imposing requirements detrimental to both property owners and the small businesses and nonprofits this bill aims to protect.
The bill proposes to cap security deposits at one month's rent, disregarding the role of deposits in risk management and post-tenancy restoration efforts. Such restrictions could deter property owners from leasing to emerging businesses, contradicting the bill's intent to support them. A crucial oversight of SB 1103 is failure to differentiate between the dynamics of business-to-business and business-to-individual transactions, which are drastically different.
This bill has been referred to the Senate Judiciary Committee. CBPA staff along with Board Member Sarahann Shapiro have met with the bill author, sponsors, and Senate Judiciary Committee to inform them of the negative consequences of this bill.
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