Tomorrow is a crucial deadline in the California Legislature, as all fiscal bills must pass out of the Assembly and Senate Appropriations Committees to continue moving forward. These powerful committees act as gatekeepers, reviewing legislation with significant financial implications for the state. The fate of dozens of priority bills will be decided in these hearings.

Bills scheduled to be heard in the Appropriations Committees include the industry-sponsored EV fire safety measure, AB 588 (Patel; D–San Diego), as well as several high-priority oppose bills. These include AB 380 (Gonzalez; D–Los Angeles), which proposes commercial rent control, and SB 789 (Menjivar; D–Van Nuys), which would mandate vacancy reporting—among many others. We’ll have a full update on the outcomes next week.

Tuesday night at the ballpark was a win for our industry—despite the hometown loss on the field! Our PAC @ the Ballpark event, co-hosted with the California Retailers Association, brought together public officials and industry leaders for a memorable evening in West Sacramento as the A’s took on the Angels. Huge thanks to our sponsors and attendees—your support made it all possible!

This morning, the U.S. House passed the budget reconciliation bill marking a significant victory for the commercial real estate industry. Despite narrow margins, the bill moved forward without several harmful tax changes, thanks to strong advocacy by our national partners at ICSC, NAIOP, and BOMA. Key protections include preserving the business SALT deduction, maintaining capital gains treatment for carried interest, and leaving Section 1031 exchanges untouched.

The bill also includes several pro-growth provisions: 100% bonus depreciation extended through 2029, a permanent 23% pass-through deduction, adjusted interest expense limitations, and an extension of Opportunity Zones through 2033 with a rural focus. Additional wins include a 12.5% increase in the low-income housing tax credit and an estate tax exemption raised to $15 million per individual. A SALT cap compromise raises the limit to $40,000 for certain income levels. While the adaptive reuse tax credit was not included, our industry continues to prioritize its advancement as the bill heads to the Senate.

CBPA along with numerous California business and consumer groups are strongly supporting Insurance Commissioner Ricardo Lara’s approval of an interim rate increase for State Farm, a critical step toward stabilizing the state’s homeowners and commercial insurance markets.

The decision enables a $400 million capital infusion and halts planned nonrenewals, helping ensure continued coverage for over 20% of California homes. The move protects consumers, prevents further market deterioration, and lays the groundwork for long-term affordability and access to insurance across sectors.