Do I qualify under California SB 1103?

Commercial Tenant Protection Act · Informational eligibility check · California

California's SB 1103 — the Commercial Tenant Protection Act, effective January 1, 2025 — gives qualified commercial tenants the right to request documented, proportional allocations of CAM and building operating costs. Answer three quick questions below for an informational read on whether the law may apply to your business. This is a guide, not legal advice or a determination of eligibility — confirm your specific situation with an attorney.

How SB 1103 eligibility works

SB 1103 protections are not automatic for every commercial tenant. To be a qualified commercial tenant, your business generally must be one of three things: a microenterprise (5 or fewer employees, including the owner), a restaurant with fewer than 10 employees, or a nonprofit with fewer than 20 employees. You must also notify the landlord in writing — with a self-attestation — that you meet the definition. If you fit one of those categories and you lease commercial space in California, the act's operating-cost and CAM documentation rules may apply to you.

What the law lets a qualified tenant request

On a written request, the landlord must provide the supporting documentation behind the building operating costs allocated to you, with a signed attestation, generally within 30 days. Those costs are supposed to be allocated proportionally, and the landlord cannot change the allocation method to your detriment without notice. In plain terms: your share of building costs should be proportional, documented, and stable — not an unexplained line item.

What if you don't qualify (or you're outside California)?

SB 1103 is California-only, and it covers a defined slice of small tenants. But CAM overcharges are not limited to qualified tenants or to California — material errors in CAM reconciliations are common across all commercial leases. Whether or not SB 1103 applies to you, you can cross-check whether the pro-rata share you're billed actually reconciles with your lease and reconciliation statement, and against public data such as REIT filings and BOMA cost ranges.

For a fuller walkthrough, see California SB-1103 for small business tenants and recam.app/california-tenants.

Informational only; not legal advice and not an audit or attest service. ReCAM is not a CPA firm and these services are not regulated by any state board of accountancy. © ReCAM Technologies LLC.