BILL NUMBER: AB 533	CHAPTERED  10/01/01

	CHAPTER  368
	FILED WITH SECRETARY OF STATE  OCTOBER 1, 2001
	APPROVED BY GOVERNOR  SEPTEMBER 28, 2001
	PASSED THE ASSEMBLY  SEPTEMBER 4, 2001
	PASSED THE SENATE  AUGUST 30, 2001
	AMENDED IN SENATE  AUGUST 28, 2001
	AMENDED IN SENATE  JUNE 25, 2001
	AMENDED IN ASSEMBLY  MARCH 26, 2001

INTRODUCED BY   Assembly Member Cedillo

                        FEBRUARY 21, 2001

   An act to add Section 1950.8 to the Civil Code, relating to
landlord-tenant.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 533, Cedillo.  Landlord-tenant:  payments.
   Existing law regulates the relationship between landlord and
tenant, as specified.
   This bill would provide, with respect to commercial leases and
nonresidential tenancies, that it is unlawful for any person (1) to
require, demand, or cause to make payable any payment of money,
including, but not limited to, "key money," however denominated, or
the lessor's attorney's fees, as a condition of initiating,
continuing, or renewing a lease or rental agreement unless the amount
of the payment is stated in the written lease or rental agreement.
Any payment in violation of this provision would be subject to a
civil penalty of 3 times the amount of actual damages proximately
suffered by the person seeking to obtain the lease of the real
property, and the person so damaged would be entitled to an award of
costs, including reasonable attorney's fees, reasonably incurred in
connection with obtaining the civil penalty.  The bill would also
contain clarifying provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1950.8 is added to the Civil Code, to read:
   1950.8.  (a) This section applies only to commercial leases and
nonresidential tenancies of real property.
   (b) It shall be unlawful for any person to require, demand, or
cause to make payable any payment of money, including, but not
limited to, "key money," however denominated, or the lessor's
attorney's fees reasonably incurred in preparing the lease or rental
agreement, as a condition of initiating, continuing, or renewing a
lease or rental agreement, unless the amount of payment is stated in
the written lease or rental agreement.
   (c) Any person who requires, demands, or causes to make payable
any payment in violation of subdivision (a), shall be subject to
civil penalty of three times the amount of actual damages proximately
suffered by the person seeking to obtain the lease or rental of real
property, and the person so damaged shall be entitled to an award of
costs, including reasonable attorney's fees, reasonable incurred in
connection with obtaining the civil penalty.
   (d) Nothing in this section shall prohibit the advance payment of
rent, if the amount and character of the payment are clearly stated
in a written lease or rental agreement.
   (e) Nothing in this section shall prohibit any person from
charging a reasonable amount for the purpose of conducting reasonable
business activity in connection with initiating, continuing, or
renewing a lease or rental agreement for nonresidential real
property, including, but not limited to, verifying creditworthiness
or qualifications of any person seeking to initiate, continue, or
renew a lease or rental agreement for any use other than residential
use, or cleaning fees, reasonably incurred in connection with the
hiring of the real property.
   (f) Nothing in this section shall prohibit a person from
increasing a tenant's rent for nonresidential real property in order
to recover building operating costs incurred on behalf of the tenant,
if the right to the rent, the method of calculating the increase,
and the period of time covered by the increase is stated in the lease
or rental agreement.