SACRAMENTO – A broad coalition of supporters and small business advocates from across California are celebrating the signing of Senate Bill 1103 – Commercial Tenant Protection Act of 2024.
Sponsored by State Senator Caroline Menjivar (D- San Fernando Valley), the bill aims to provide protections for small businesses and nonprofits experiencing excessive or unexpected rent increases, hidden fees, and nontransparent lease terms.
“The common sense measures in SB 1103 will ensure these businesses can continue to serve their neighborhoods and create more stable tenancies that benefit both landlords and tenants. It is an added protection for entrepreneurs who put their passion, sweat, and tears into bringing their American dream to reality,” stated Senator Menjivar.
Going into effect for nonresidential commercial leases signed after January 1st, 2025, the new legislation will apply to microenterprises (5 or less employees), restaurants (10 or less employees), and nonprofits (20 or less employees) – adding three key protections for tenants.
- If a lease is negotiated in one of the five top languages spoken in California other than English – Spanish, Chinese, Vietnamese, Tagalog and Korean – then the tenant must be provided a copy of the lease in that language as well.
- Landlords are required to provide at least 60 days notice before an increase in rent or eviction of a small-business tenant.
- Property owners must provide supporting documentation to justify raising common area maintenance (CAM) fees. Those fees will be limited to maintenance that has occurred in the last 18 months or expected within the next 12 months, and can not include expenses for which the landlord is already being reimbursed.
“We’re fighting for the small business owners struggling to keep their doors open – and for the families and communities that rely on those businesses”, said Doug Smith, Senior Director of Policy and Legal Strategy at Inclusive Action.
“SB1103 is a necessary step to ensure a prosperous future for California’s economy”, he added.
Cosponsors of SB 1103 include Bet Tzedek Legal Services, Inclusive Action for the City, Lawyers’ Committee for Civil Rights of the San Francisco Bay Area, Public Counsel, CAMEO, and Small Business Majority.
