CAL LEG Commercial Property Tenancy


On Sep. 11, CAL LEG passed bill on commercial real property tenancy.


  • CAL LEG passed SB 1103 re tenancy agreements of commercial real properties.
  • Amends CAL LEG 2-2-3-1-1-827, CAL LEG 3-2-2-1632, and CAL LEG 3-4-5-2-1946.1.
  • Adds new section CAL LEG 3-4-5-2-1950.9 re fee to recover building operating costs.
  • Sets provisions for landlords of commercial real property leased by commercial tenant.
  • Bill Provisions
  • Requires a landlord of a commercial real property leased by a qualified commercial tenant to give notice to the tenant a certain number of days before rent increase.
  • Specifies that a rent increase would not be effective until notice period has expired.
  • A violation of this would not entitle a qualified commercial tenant to civil penalties.
  • The bill requires landlord to include information on these provisions in the notice.
  • Applies the translation requirement, but not the interpreter exemption, to a tenancy agreement covering nonresidential-zoned commercial space on or after Jan. 1, 2025.
  • Requires translation of the agreement in the language in which it was negotiated for persons who negotiate primarily in Spanish, Chinese, Tagalog, Vietnamese, or Korean.
  • Authorizes only tenant to rescind the agreement for noncompliance with translation.
  • Provisions to a hiring of commercial real property is deemed to be renewed at the end of the term unless one of the parties gives written notice of intent to terminate.
  • Prohibits a landlord of a commercial real property from charging a qualified commercial tenant a fee to recover building operating costs, unless specified conditions are met.
  • Incorporates additional provisions of AB 3281 and SB 611 to be operative only if this bill and AB 3281 and/or SB 611 are enacted and this bill is enacted last, see #225215.
  • Legislative History
  • On Feb. 13, 2024, bill introduced in Senate; on May 21, 2024, bill passed Assembly.
  • On May 22, 2024, bill introduced in Assembly; on Aug. 30, 2024, bill passed Senate.
  • On Aug. 31, 2024, bill amendments concurred; on Sep. 11, bill delivered to governor.
  • Effectiveness
  • No effective date specified; generally effective Jan. 1 after enactment, on Jan. 1, 2025.
  • Sep. 30, 2024 CAL LEG Governor Approved Bill
  • On Sep. 30, 2024, CAL LEG reported SB 1103 signed by governor, assigned Ch. 1015.

Regulators CAL LEG
Entity Types Corp; MG Orig
Reference Ch 1015, 9/30/2024; Bill, SB1103, 9/11/2024; Citation: *CAL LEG* 2-2-3-1-1-827, 3-2-2-1632, 3-4-5-2-1946.1, 3-4-5-2;
Functions Compliance; Legal; Operations; Reporting
Countries United States of America
Category
State
Products Corporate
Regions Am
Rule Type Final
Rule Date 9/30/2024
Effective Date 1/1/2025
Rule Id 226185
Linked to N/A
Reg. Last Update 9/30/2024
Report Section US Consumer

Last substantive update on 10/02/2024