BREAKING: SB 939 Fails To Advance

On May 13, 2020, a bill numbered SB 939 became a lighting-rod in California.  It proposed that certain Covid-impacted tenants could terminate their leases.

Authored by Senator Wiener, SB 939 gained momentum when it passed the Judiciary Committee by a vote of 5-1 in favor of the bill.  It then moved to the Appropriations Committee of the Senate.

During the June 18, 2020 Appropriations Committee hearing, SB 939 failed to advance.

Amendments Not Enough: According to Senator Wiener’s office, before the June 18 hearing, Senator Wiener proposed amendments to SB 939, but it was not enough to generate the required support.  Based on prior comments by Senator Wiener, the amendments may have included replacing the lease termination right with something “softer.”

Strong Opposition By Real Estate Industry: Senator Wiener is disappointed by the outcome. According to Senator Wiener’s Communications Director, Catie Stewart, the bill died, in part, because of the “strong opposition of the commercial real estate industry.”  This opposition was led by AIR CRE, the California Business Properties Association, and others.

Prospects of Similar Bill By Senator Wiener: Ms. Stewart says that Senator Wiener “will continue to fight to make sure the legislature does something to support small businesses and nonprofits.  It is a tough time for everyone and he wants to do more.”

I asked Ms. Stewart if Senator Wiener might propose a similar bill that may be able to achieve necessary support in the California legislature.  She stated it was “very unlikely” he would do so at this point.

By | 2020-06-18T21:28:51+00:00 June 18th, 2020|Landlord-Tenant, Leasing|8 Comments

8 Comments

  1. Tai June 19, 2020 at 9:06 pm - Reply

    As a restaurant property owner and a commercial broker (and AIR forms user for over 25 years), I appreciate the updates you provide, especially your SB 939 updates.

    Keep up the great work!

    • Usman Mohammed June 19, 2020 at 9:15 pm - Reply

      Thank you Tai, I appreciate it.

  2. Anonymous June 19, 2020 at 9:06 pm - Reply

    Thank you. The best news I’ve read in a very long time !

  3. Anonymous June 19, 2020 at 9:11 pm - Reply

    SB 939: I’m very happy this did not pass, although I do feel very bad for a lot of the small businesses that are suffering through this.

    • Usman Mohammed June 19, 2020 at 9:14 pm - Reply

      Thank you for the comment, it is definitely a tough time.

  4. Sid June 19, 2020 at 9:11 pm - Reply

    Yes!

  5. Patrick June 19, 2020 at 9:12 pm - Reply

    Thanks for the timely email. That is great news. Nice work on following this bill.

    • Usman Mohammed June 19, 2020 at 9:13 pm - Reply

      Thank you Patrick.

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