FOR IMMEDIATE RELEASE

Date: September 3, 2024

Media Contact: Raya Steier, 530-723-2426, rsteier@lccrsf.org

***PRESS RELEASE***

Sacramento, Calif. – This week, the Commercial Tenant Protection Act (SB 1103) was passed by the State Legislature and will advance to Governor Gavin Newsom’s desk for signature to become California law.

The bill, authored by Senator Caroline Menjivar (D – San Fernando Valley) and sponsored by a coalition of small business advocates and economic justice leaders, offers the nation’s first commercial tenant protections aimed at safeguarding the smallest businesses and nonprofits in California from displacement.

“Micro-enterprises and small nonprofits exist because of the passion, sweat equity, and determination of individuals who bring their dreams to reality,” said Senator Menjivar. “When they finally get that shot at a brick and mortar, SB 1103 will ensure the most common-sense protections for these vulnerable qualified tenants; expanded translation of leases when not negotiated in English, longer notice periods for rent increases and evictions, and transparency of building operating costs. I respectfully urge Governor Newsom to sign SB 1103, so landlords and tenants can both experience more stable tenancies and better financial planning.”

The coalition of sponsors for the bill included Bet Tzedek Legal Services, CAMEO Network, Inclusive Action for the City, the Lawyers’ Committee for Civil Rights of the San Francisco Bay Area, Public Counsel, and Small Business Majority.

When it becomes state law, the Commercial Tenant Protection Act will: 

Expand language access by requiring commercial leases be provided to tenants in the languages in which they are negotiated; 

Create transparency and standards with respect to building operating costs;

Give small businesses and small nonprofits more time to prepare for rent increases or termination of their tenancies so they can stay in their neighborhoods.

Now, advocates reflect on this victory and call on Governor Newsom to sign the legislation into law:

“Californians believe in an economy where everyone has the opportunity to build a small business or nonprofit – and contribute to our communities. That’s why we are proud to advocate for commercial tenant protections that expand opportunities for marginalized small business owners and entrepreneurs. Now, we call on Governor Newsom to sign SB 1103 into law.” – Doug Smith, Senior Director of Policy and Legal Strategy, Inclusive Action for the City

“In recent years, we have assisted countless small businesses and nonprofits that, without warning, experienced massive rent hikes and termination of their tenancies. Small nonprofits provide critical health, housing, and social services to marginalized communities but are often at risk of being displaced. SB 1103 ensures small businesses and small nonprofits will continue to have the infrastructure and capacity to provide goods and services to those in need. We look forward to Governor Newsom signing SB 1103 into law.” – Ritu Mahajan Estes, Directing Attorney, Public Counsel

“We are glad to see SB 1103 moving forward because many small businesses are struggling with the ever-growing cost of renting a commercial space. Smaller firms are particularly vulnerable to unexpected or unreasonable rent increases, which can lead to a greater risk of displacement in their local communities. SB 1103 is also important because it will level the playing field for those landlords already doing the right thing by their tenants. We’re heartened that California lawmakers are stepping in to provide necessary guardrails when it comes to commercial leasing.” – Bianca Blomquist, California Director, Small Business Majority

“We are excited to see SB 1103 moving forward! As attorneys, we can only work with the resources provided by the law. Up until now, when the law is not on our side, unfortunately, we cannot help small business owners who signed leases they did not understand because of the language barrier or who agreed to pay fees without knowing it. This bill gives small business owners the possibility to have a solid start, with leases in their languages and transparency on what they are agreeing to pay. At Bet Tzedek, we fight for equitable access to justice for all, and this is a step in the right direction.” – Nadia Segura, Director of Small Business Development Project, Bet Tzedek

“Today, we’re celebrating the passage of legislation that will protect small businesses from being forced out of their communities by surprise rent hikes, hidden fees, and deliberately obtuse lease terms. SB 1103 is a commonsense victory for all entrepreneurs – but particularly for those who too often carry the burden of displacement, including immigrant entrepreneurs, entrepreneurs of color, and entrepreneurs in low- and moderate-income communities. We look forward to seeing Gov. Newsom sign this bill into law.” – Carolina Martinez, Chief Executive Officer, CAMEO Network

“We are thrilled to celebrate the passage of SB 1103, a crucial piece of legislation designed to safeguard micro businesses and small nonprofits from unexpected rent increases and hidden costs that can force them out of their communities. This common-sense measure will protect small businesses run by immigrants and people of color who are disproportionately affected by displacement. We eagerly anticipate Governor Newsom signing this bill into law, solidifying these essential protections.” – Jassmin Poyaoan, Program Director of the Economic Justice Practice, Lawyers’ Committee for Civil Rights of the San Francisco Bay Area

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