January 9, 2026

Legislature Reconvenes for Second Year of the Legislative Cycle

California legislators returned to Sacramento this week to begin the second year of the 2025–2026 legislative cycle. Lawmakers immediately resumed work on major policy priorities, the state budget, and a significant number of two-year bills that must be heard by January 25 to remain active. Committees began hearings on day one, underscoring the compressed schedule and the volume of measures still in play.



Governor Gavin Newsom delivered his State of the State Address on January 8. On Friday, January 9, he will release his 2026–27 state budget, formally launching the negotiation process that will shape legislative work over the next several months.


CBPA Advocacy Highlights: Week One

CBPA entered the session engaged on multiple high-impact issues for the commercial real estate and logistics sectors. This week, Skyler Wonnacott, Vice President of Government Relations, provided primary testimony on SB 677, raising concerns about the unintended interaction between SB 79 and AB 98. His testimony emphasized that housing development on commercial or mixed-use parcels near transit could trigger AB 98 buffer requirements, complicating modernization and redevelopment of logistics facilities. These concerns reflect those outlined in CBPA California’s SB 79 letter of concern submitted to the Governor.

Key Bills in Motion

AB 1157 (Kalra) – Residential Rent Control (Oppose)

AB 1157 imposes permanent statewide rent caps on all rental housing, including single-family homes, ADUs, and individually owned condominiums. The measure undermines the AB 1482 compromise and would reduce housing supply while discouraging needed investment.

Hearing: Senate Judiciary – January 13

Click here to read our opposition letter


AB 1439 (R. Garcia) – Pension Investments and Labor Standards (Oppose)

AB 1439 restricts pension fund investments in development projects unless they meet specific labor standards, creating legal conflicts with existing agreements and reducing overall housing investment. The bill increases project costs and further strains statewide affordability.

Hearing: Assembly PERS – January 14

Click here to read our opposition letter


AB 914 (Garcia) – Indirect Source Rule Fee Authority (Oppose)

AB 914 grants CARB broad authority to impose regional fees and duplicative regulations on businesses already subject to stringent air rules, increasing costs and creating regulatory inconsistencies across the state. The bill threatens supply-chain operations and burdens multiple sectors.

Hearing: Expected within the next two weeks

Click here to read our opposition letter


CBPA Congratulates Senator Monique Limón on Becoming California's First Latina Senate President pro Tempore

On Monday, January 5, Senator Monique Limón was sworn in as California’s 41st Senate President pro Tempore, becoming the first Latina to serve in this leadership role. Senator Limón represents Senate District 21, which includes portions of Santa Barbara and Ventura Counties, and she has released her full leadership team and committee assignments for the 2026 session. CBPA congratulates Senator Limón on this historic milestone and looks forward to working with her in the year ahead.


In Case You Missed It: 2025 Annual Report

CBPA'S Annual Report offers a comprehensive review of 2025. It highlights our key achievements, the challenges we faced in the Capitol, the events and meetings we hosted and participated in, and the dedicated work undertaken to support our industry and members.

Will Hixson Concludes his Role as Communications Director

After nearly three years with the CBPA and BOMA California, William Hixson, CAE has concluded his time as Director of Communications and Marketing.


"During his time at CBPA, Will was an integral part of the association’s success, leading a comprehensive transformation of CBPA’s communications, including the website, visual identity, and overall branding," says CBPA CEO Matthew Hargrove. "Will also played a key role in working with CBPA’s members and partners across the state, with a rare ability to distill complex subject matter into clear, concise, and effective messaging. His contributions have left CBPA a stronger and more cohesive organization. CBPA is grateful for Will’s dedication and service, and we wish him continued success in his next chapter."


Mark Your Calendars - CBPA's Signature Events

February 25, 2026

Legislative Luncheon

Sacramento, CA


May 15, July 1, August 11

PAC at the Ball Park
West Sacramento, CA

View event flyer

August 11-12, 2026

CA Commercial Real Estate Summit

Sacramento, CA


November 5, 2026

Industry Awards Dinner

Orange County, CA


Fact Sheets On New Laws Impacting CRE Now Available

With the 2025 legislative session now behind us, CBPA is providing key resources on new laws that will affect the commercial real estate industry. From our sponsored measure ensuring timely hearings for commercial unlawful detainer cases, to important updates addressing last year’s warehouse restriction bill AB 98, and much more. These changes will shape the way our industry operates.


Don’t be caught off guard — stay informed on the legislation impacting commercial real estate in 2025 and beyond.

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