Partnership Oppose Commercial Rent Relief Bill, 3 Key Telecommunications Bills
IRWINDALE - This week, the San Gabriel Valley Economic Partnership waded into pending legislation in Sacramento, opposing an ill-conceived major commercial rent relief bill while also opposing three significant telecommunication regulation bills. With the State Legislature back in session, expect to see a large amount of legislation move as lawmakers try to address of a budget deficit, provide substantive assistance to drowning small businesses, weigh several tax increase proposals, and consider a package of housing bills.
The Partnership strongly opposes SB 939 (Weiner), a bill with good intentions to aid small businesses, but ends up harming commercial real estate businesses. SB 939 allows commercial lessees wide latitude in postponing rent payments, even up to a year, but it denies commercial lessors critical income which will push many into foreclosure, staff layoffs, and will set a bad precedent that undermines contracts in the state. The bill also removes existing legal remedies and lessor rights for an extended period of time, giving only one party to a contract the right to walk away from a legal obligation with no responsibilities or penalties.
"SB 939 may come with the best of intentions to help struggling small businesses across the state but it does so at the cost of many other small businesses," said Partnership President and CEO Bill Manis. "By giving businesses a year off of paying rent and the option to walkout on a long-term lease contract, SB 939 violates basic constitutional law and imperils many businesses that operate on the basis of receiving rental income."
The Partnership also opposed three key telecommunications regulatory bills. SB 1058 (Hueso) adds redundant and unnecessary regulatory requirements for Internet service providers to report to the California Public Utilities Commission. Similarly, SB 1069 (Jackson) adds additional reporting requirements for Internet service providers during natural disasters or emergencies, including rules to disclose location and information about facilities and infrastructure. Finally, the Partnership opposes unless amended SB 1130 (Jackson), a bill that adds new requirements to the California Advanced Services Fund program that will result in an overbuild out and costly new broadband requirements to provide Internet to un-served areas of the state.
For more information on these political actions, contact Brad Jensen, Director of Public Policy, email@example.com.