We are writing to provide a quick update on one of our priority OPPOSE bills in California. AB 1777 (Garcia), the bill that gives the CA Air Resources Board unfettered authority to impose a statewide Indirect Source Rule, was heard today in the Assembly Appropriations Committee and has been placed on the suspense file.

Our NAIOP SoCal delegation has been in Sacramento for the past two days lobbying against AB 1777.  We are still in Sacramento and will be meeting with the Chair of the Appropriations Committee, Assemblymember Buffy Wicks, in one hour.  

What This Means

In the California legislature, bills with a fiscal impact above a certain threshold ($150,000) are placed on "suspense." This essentially puts the bill in a holding pattern while the Committee evaluates the state budget and decides which bills will move forward.

The Next Step: Suspense Day

The next critical milestone is Suspense Day, which occurs in late May. On this day, the Committee will announce which bills will be "held" (effectively killing them for the year) and which will "pass" to the Assembly Floor for a full vote of the Assembly.

Our Strategy

While moving to the suspense file is a helpful development in slowing the bill’s progress, our legislative affairs team, led by Adam Regele in Sacramento, will remain vigilant. Last year, the previous statewide ISR proposal, AB 914 (Garcia), was also placed on the suspense file but unexpectedly advanced; fortunately, it did not have the votes to pass the Assembly floor thanks to our good work mobilizing in opposition. 

We are working closely with all of our partners to stop the bill and protect the commercial real estate sector as the legislative calendar progresses.

Stay tuned for further updates.