Last Friday marked a key legislative deadline for the California Assembly and Senate to pass bills introduced in their respective houses.

Despite efforts to limit bill introductions, lawmakers introduced 2,739 new bills in 2025. More than 300 of these have the potential to impact commercial real estate. CBPA has taken positions on over 200 bills and, with the support of our coalition partners and members, successfully helped stop several harmful proposals—including SB 789 (Menjivar; D–Van Nuys), which sought to impose a commercial vacancy tax. While we’ve secured several important wins, many concerning bills remain active, including AB 380 (Gonzalez; D–Los Angeles), which would impose commercial rent control during emergencies.

Policy committees have now resumed hearings, with a July 18 deadline to take action before the Legislature breaks for a month-long summer recess.

Legislative leaders unveiled a budget plan that avoids Gov. Newsom’s deep cuts to health care, higher education, and social services by relying on borrowing and smaller reductions. The proposal protects Medi-Cal for undocumented residents with some limits, restores funding for UC, CSU, and the Middle Class Scholarship, and rejects cuts to reproductive health care.

The deal includes $110 million to implement Prop 36 and boosts affordable housing investments, but offers no new homelessness funding this year. Lawmakers also pushed back on Newsom’s plan to use climate funds for firefighting, limiting it to $1 billion over two years.

Proposition 36, passed by nearly 70% of California voters in 2024, strengthens penalties for repeat retail theft and restores accountability measures weakened by Prop 47. CBPA is a strong supporter of the initiative and has worked closely with partner organizations to help ensure effective implementation.



Although voters overwhelmingly supported the measure, recent budget proposals have failed to provide the funding necessary to ensure its successful implementation. We applaud lawmakers for allocating funding in a tough budget year, but remain concerned that key components—like County Behavioral Health and Probation—are still underfunded. One-time funding and the lack of support for probation services could undermine the long-term success of the measure. CBPA urges the Legislature to more fully fund Prop 36 to uphold the will of voters and protect communities and businesses across the state.

Senate Democrats have elected Sen. Monique Limón of Santa Barbara as the next leader of the California Senate, marking a historic first for a woman of color in the role. A progressive lawmaker with strong union backing, Limón is known for her work on pay transparency, consumer protections, and environmental regulation—including a 2022 law requiring buffer zones around oil and gas wells.

She will take over from current Senate President Pro Tem Mike McGuire next year following a quiet leadership challenge within the caucus. We look forward to working with Senator Limón as she assumes the new role.