On Monday, CBPA, Sacramento Mayor Kevin McCarty, and Assemblymember Stephanie Nguyen formally announced our industry sponsored bill, AB 1435 - The Business Clean-Up Relief Act of 2025, which provides tax relief to businesses burdened with cleanup costs from encampments on private property. The announcement has garnered media attention with coverage from The Sacramento Bee, FOX40, and KFBK Radio.

This legislation is a strong first step toward addressing a critical issue affecting our members and businesses statewide, and we will continue to keep you updated as AB 1435 moves through the legislative process.

After significant pushback from stakeholders, including many of our members, SB 789 (Menjivar; D-Van Nuys) has been substantially amended to remove the proposed $5-per-square-foot vacancy tax. While this change marks important progress, we remain opposed to the bill.

As amended, SB 789 now requires owners of non-residential property to annually report vacancy details—including the number of vacant days, reasons for vacancy, and any ongoing renovations—to the California Department of Tax and Fee Administration. Property owners who fail to report would face state-imposed penalties.

Our industry will continue to argue that this unnecessary and expensive data collection mandate will cost the state millions and deliver little value. We will keep working with our coalition partners to oppose this burdensome proposal and advocate for more effective, practical solutions.

As Los Angeles faces a significant budget deficit, SB 709 (Menjivar; D-Van Nuys) would further strain local finances by imposing price caps on self-storage units—reducing property values and slashing over $140 million in local tax revenue each year. This includes more than $61 million in lost funding for public schools, which would need to be backfilled by the state.

With cities, counties, and school districts already under fiscal pressure, this bill threatens critical public services and should be opposed. We are actively working with our coalition partners to oppose SB 709 and will continue to keep you informed as it moves through the Legislature.

A recent Spectrum News 1 article offers an update on Proposition 36, California’s new law aimed at curbing repeat drug and theft offenses. Early data suggests it’s effectively targeting habitual offenders—90% of those recently arrested for retail theft had prior convictions.

However, officials warn that the law’s impact is being undercut by a lack of funding for court-ordered treatment, a key part of its design. Supporters are now urging the state to allocate hundreds of millions in funding to expand treatment programs.

CBPA was an early advocate for Prop 36 and has remained actively engaged in its rollout, participating in key implementation meetings in Los Angeles last December and in Sacramento earlier this month.