SACRAMENTO—Senate Bill 939 is a COVID-19 commercial rent moratorium eviction bill sponsored by California state senator Scott Wiener. The bill is set for committee hearing tomorrow. At this hearing, testimony will be received in support of or opposition to the bill and the committee can vote on the legislation at that time. Because SB-939 is an urgency statute, it would go into immediate effect once passed by the legislature and approved by the governor.

SB 939 Section 1, section 1951.9 as added to the civil code reads: It shall be unlawful for a person, business or other entity to terminate a tenancy, serve notice to terminate a tenancy, use lockout or utility shutoff actions to terminate a tenancy or otherwise endeavor to evict a tenant of commercial real property, including a business or nonprofit organization, during the pendency of the state of emergency proclaimed by the governor on March 4, 2020, related to COVID-19, unless the tenant has been found to pose a threat to the property, other tenants or a person, business or other entity.

But, in getting into the meat of the bill, many are crying overreach. ICSC goes further, saying that if enacted, SB 939 would upend existing real estate leases throughout the state. The legislation requires all lessors in California to defer lessee rent obligations for more than one year. It would also allow a certain business type to negate the existing lease contract, removes existing legal remedies and rights from, and gives one party to a contract the right to walk away from a valid lease. In addition to jeopardizing the rule of contract law between private parties, the bill creates a number of problems, ICSC points out.