BILL NUMBER: AB 1217	CHAPTERED
	BILL TEXT

	CHAPTER  766
	FILED WITH SECRETARY OF STATE  OCTOBER 11, 2003
	APPROVED BY GOVERNOR  OCTOBER 10, 2003
	PASSED THE ASSEMBLY  AUGUST 21, 2003
	PASSED THE SENATE  JULY 17, 2003
	AMENDED IN SENATE  JULY 1, 2003
	AMENDED IN ASSEMBLY  MAY 14, 2003
	AMENDED IN ASSEMBLY  APRIL 21, 2003

INTRODUCED BY   Assembly Member Leno

                        FEBRUARY 21, 2003

   An act to amend Sections 7060 and 7060.1 of the Government Code,
relating to rental property.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1217, Leno.  Rental property:  residential hotels.
   Under the Ellis Act, public entities generally are prohibited from
adopting any statute, ordinance, or regulation, or taking any
administrative action, to compel the owner of residential real
property to offer or to continue to offer accommodations in the
property for rent or lease.  The act defines accommodations subject
to the act to mean either residential rental units in any detached
physical structure containing 4 or more residential rental units or,
with respect to a detached physical structure containing 3 or fewer
residential rental units, the residential rental units in that
structure and in any other structure located on the same parcel of
land.
   This bill would exempt guestrooms or efficiency units within a
residential hotel, as defined, from the above described prohibition
if the hotel is located in a city and county, or in a city with a
population of over 1,000,000, has a permit of occupancy issued prior
to January 1, 1990, and  the hotel did not send a notice of intent to
withdraw the accommodations from rent or lease that was delivered
prior to January 1, 2004.
   The act provides that it does not diminish or enhance any power in
any public entity to mitigate any adverse impact on persons
displaced by reason of the withdrawal from rent or lease of any
accommodations in any defined residential hotel.
   This bill would, instead, provide that the act does not diminish
or enhance any power in any public entity to mitigate any adverse
impact on persons displaced by reason of the withdrawal from rent or
lease of any accommodations.


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


  SECTION 1.  Section 7060 of the Government Code is amended to read:

   7060.  (a) No public entity, as defined in Section 811.2, shall,
by statute, ordinance, or regulation, or by administrative action
implementing any statute, ordinance or regulation, compel the owner
of any residential real property to offer, or to continue to offer,
accommodations in the property for rent or lease, except for
guestrooms or efficiency units within a residential hotel, as defined
in Section 50519 of the Health and Safety Code, if the residential
hotel meets all of the following conditions:
   (1) The residential hotel is located in a city and county, or in a
city with a population of over 1,000,000.
   (2) The residential hotel has a permit of occupancy issued prior
to January 1, 1990.
   (3) The residential hotel did not send a notice of intent to
withdraw the accommodations from rent or lease pursuant to
subdivision (a) of Section 7060.4 that was delivered to the public
entity prior to January 1, 2004.
   (b) For the purposes of this chapter, the following definitions
apply:
   (1) "Accommodations" means either of the following:
   (A) The residential rental units in any detached physical
structure containing four or more residential rental units.
   (B) With respect to a detached physical structure containing three
or fewer residential rental units, the residential rental units in
that structure and in any other structure located on the same parcel
of land, including any detached physical structure specified in
subparagraph (A).
   (2) "Disabled" means a person with a disability, as defined in
Section 12955.3 of the Government Code.
  SEC. 2.  Section 7060.1 of the Government Code is amended to read:

   7060.1.  Notwithstanding Section 7060, nothing in this chapter
does any of the following:
   (a) Prevents a public entity from enforcing any contract or
agreement by which an owner of residential real property has agreed
to offer the accommodations for rent or lease in consideration for a
direct financial contribution or, with respect to written contracts
or agreements entered into prior to July 1, 1986, for any
consideration.  Any contract or agreement specified in this
subdivision is not enforceable against a person who acquires title to
the accommodations as a bona fide purchaser for value (or successors
in interest thereof), unless (1) the purchaser at the time of
acquiring title to the accommodations has actual knowledge of the
contract or agreement, or (2) a written memorandum of the contract or
agreement which specifically describes the terms thereof and the
affected real property, and which identifies the owner of the
property, has been recorded with the county recorder prior to July 1,
1986, or not less than 30 days prior to transfer of title to the
property to the purchaser.  The county recorder shall index such a
written memorandum in the grantor-grantee index.
   As used in this subdivision, "direct financial contribution"
includes contributions specified in Section 65916 and any form of
interest rate subsidy or tax abatement provided to facilitate the
acquisition or development of real property.
   (b) Diminishes or enhances, except as specifically provided in
Section 7060.2, any power which currently exists or which may
hereafter exist in any public entity to grant or deny any entitlement
to the use of real property, including, but not limited to,
planning, zoning, and subdivision map approvals.
   (c) Diminishes or enhances any power in any public entity to
mitigate any adverse impact on persons displaced by reason of the
withdrawal from rent or lease of any accommodations.
   (d) Supersedes any provision of Chapter 16 (commencing with
Section 7260) of this division, Part 2.8 (commencing with Section
12900) of Division 3 of Title 2 of this code, Chapter 5 (commencing
with Section 17200) of Part 2 of Division 7 of the Business and
Professions Code, Part 2 (commencing with Section 43) of Division 1
of the Civil Code, Title 5 (commencing with Section 1925) of Part 4
of Division 3 of the Civil Code, Chapter 4 (commencing with Section
1159) of Title 3 of Part 3 of the Code of Civil Procedure, or
Division 24 (commencing with Section 33000) of the Health and Safety
Code.
   (e) Relieves any party to a lease or rental agreement of the duty
to perform any obligation under that lease or rental agreement.