BILL NUMBER: AB 2586 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 2, 2008
AMENDED IN ASSEMBLY MAY 27, 2008
AMENDED IN ASSEMBLY MAY 1, 2008
INTRODUCED BY Assembly Member Torrico
FEBRUARY 22, 2008
An act to amend Sections 789.3, 1950.5, and 1962 of, and to add
Sections 1942.2 and 2924.9 to, the Civil Code, to amend
Section 1161a of, and to add Section 1161b to, the Code of Civil
Procedure, and to Section 1942.2 to, the Civil Code,
and to amend Sections 777.1, 10009.1, 12822.1, and 16481.1 of,
and to repeal Sections 777, 10009, 12822, and 16481 of, the Public
Utilities Code, relating to residential tenancies.
LEGISLATIVE COUNSEL'S DIGEST
AB 2586, as amended, Torrico. Residential tenancies.
(1) Existing law prohibits a landlord from willfully causing the
interruption or termination of any utility service furnished to a
tenant, with the intent of terminating the occupancy, regardless of
whether the utility service is under the control of the landlord.
Existing law also prohibits a landlord from willfully preventing a
tenant from gaining reasonable access to the property by changing the
locks, removing doors or windows, or removing from the premises the
tenant's personal property, as specified, with the intent of
terminating the occupancy.
This bill would define a landlord and a tenant for purposes of the
provisions governing tenancies. The bill would define a landlord for
purposes of these provisions to specifically include an interest
acquired pursuant to provisions governing mortgage defaults, as
specified.
(2) Existing law governs the obligations of tenants and landlords
under a lease or tenancy. Among other things, these provisions govern
the collection and return of security deposits by the landlord or
the landlord's successor in interest, including the transfer or
return of any security remaining after termination of the tenancy.
Existing law also governs mortgages, including procedures in the
case of mortgage default.
This bill would authorize a tenant or occupant who has made a
payment to a public utility to deduct the amount of the payment from
the rent when due, as specified. The bill would revise the provisions
governing the transfer or return of any security remaining after
termination of the tenancy to specifically apply, upon termination of
the landlord's interest in the premises, in the case of a trustee
sale and to apply whether the termination of the landlord's interest
in the premises was voluntary or involuntary. The bill would define a
"successor in interest" for purposes of these provisions to apply to
an interest acquired pursuant to provisions governing mortgage
defaults, as specified.
The bill would also require a mortgagee, trustee, servicer, or
beneficiary to give notice of a possible foreclosure sale, as
specified, to the tenants or occupants of each dwelling unit on any
property that includes one to 4 dwelling units.
(3) Existing law provides for the removal of a person who holds
over and continues in possession of a manufactured home, mobilehome,
or floating home, as defined.
Existing law provides that a tenant or subtenant who is in
possession of a rental housing unit which has been sold for specified
reasons must be given notice to quit not exceeding 30 days before
the tenant or subtenant may be removed.
This bill would delete the latter provision. The bill would
instead provide that a tenant in possession of real property which
includes a dwelling unit that has been sold, as specified, may be
removed only upon 60 days' written notice. The bill would set forth a
specified termination notice and would impose penalties of up to
$1,000 for the violation of this provision, as specified. The bill
would also authorize local governments to require an alternative
notice specifically relating to foreclosed properties.
(3) Existing law requires the owner, or a party signing a rental
agreement or lease on behalf of the owner, of a residential property
that is offered to the public for rent or lease to make specified
disclosures regarding the property to a tenant, as specified. These
provisions are enforceable against any successor owner or manager,
who must comply with these provisions within 15 days of succeeding
the previous owner or manager.
This bill would define a "successor owner" for purposes of these
provisions and would create an exception to that requirement if the
owner serves a specified notice.
(4) The California Constitution establishes the Public Utilities
Commission to fix rates and establish rules governing utilities. The
California Constitution also provides that private corporations and
persons who operate specified utilities are subject to control by the
Legislature. Existing statutory law regulates public utilities.
Among other things, a public utility must furnish and maintain
adequate, efficient, just, and reasonable service as necessary to
promote public health and safety, as specified. A public utility
which violates or fails to comply with these provisions is guilty of
a misdemeanor and subject to various penalties.
Existing law provides that whenever an electrical, gas, heat, or
water corporation furnishes individually metered residential service
to residential occupants in a multiunit residential structure,
mobilehome park, or permanent residential structures in a labor camp,
as defined, where the owner, manager, or operator is listed by the
corporation as the customer of record, the corporation is required to
make every good faith effort to inform the residential occupants, by
means of a specified notice, when the account is in arrears, that
service will be terminated at least 10 days prior to termination.
Existing law also provides for a procedure by which those residential
occupants may become customers of the corporation. Similar
provisions exist for a public utility or a district that furnishes
individually metered residential light, heat, water, or power to
residential occupants in a multiunit residential structure,
mobilehome park, or permanent residential structures in a labor camp
where the owner, manager, or operator is listed by the public utility
or district as the customer of record.
This bill would delete those provisions.
(5) Existing law provides that whenever an electrical, gas, heat,
or water corporation furnishes residential service to residential
occupants through a master meter in a multiunit residential
structure, mobilehome park, or permanent residential structures in a
labor camp, as defined, where the owner, manager, or operator is
listed by the corporation as the customer of record, the corporation
is required to make every good faith effort to inform the residential
occupants, by means of a written notice posted on the door of each
residential unit at least 15 days prior to termination, when the
account is in arrears, that service will be terminated on a date
specified in the notice. Similar provisions exist for a public
utility or district that furnishes light, heat, water, or power to
residential occupants through a master meter in a multiunit
residential structure, mobilehome park, or permanent residential
structures in a labor camp, as defined, where the owner, manager, or
operator is listed by the public utility or district as the customer
of record.
This bill would require that whenever an electrical, gas, heat, or
water corporation furnishes residential service to residential
occupants in a residential structure, mobilehome park, or permanent
residential structures in a labor camp, as defined, where the owner,
manager, or operator is listed by the corporation as the customer of
record, the corporation would be required to inform the residential
occupants, by means of a written notice posted on the door of each
residential unit and a mailed notice to all affected service
addresses known to the utility or available through reasonable and
practical methods, as specified, at least 15 days prior to
termination, when the account is in arrears, that service will be
terminated on a date specified in the notice. The bill would
similarly provide that whenever a public utility or district
furnishes light, heat, water, or power to residential occupants in a
residential structure, mobilehome park, or permanent residential
structures in a labor camp, as defined, where the owner, manager, or
operator is listed by the public utility or district as the customer
of record, the public utility or district is required to inform the
residential occupants in the same method.
Because the bill would create new crimes, the bill would impose a
state-mandated local program.
(6) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 789.3 of the Civil Code is amended to read:
789.3. (a) A landlord shall not with intent to terminate the
occupancy of property used by a tenant as his residence willfully
cause, directly or indirectly, the interruption or termination of any
utility service furnished the tenant, including, but not limited to,
water, heat, light, electricity, gas, telephone, elevator, or
refrigeration, whether or not the utility service is under the
control of the landlord.
(b) In addition, a landlord shall not, with intent to terminate
the occupancy of property used by a tenant as his or her residence,
willfully do any of the following:
(1) Prevent the tenant from gaining reasonable access to the
property by changing the locks or using a bootlock or by any other
similar method or device.
(2) Remove outside doors or windows.
(3) Remove from the premises the tenant's personal property, the
furnishings, or any other items without the prior written consent of
the tenant, except when done pursuant to the procedure set forth in
Chapter 5 (commencing with Section 1980) of Title 5 of Part 4 of
Division 3.
Nothing in this subdivision shall be construed to prevent the
lawful eviction of a tenant by appropriate legal authorities, nor
shall anything in this subdivision apply to occupancies defined by
subdivision (b) of Section 1940.
(c) Any landlord who violates this section shall be liable to the
tenant in a civil action for all of the following:
(1) Actual damages of the tenant.
(2) An amount not to exceed one hundred dollars ($100) for each
day or part thereof the landlord remains in violation of this
section. In determining the amount of such award, the court shall
consider proof of such matters as justice may require; however, in no
event shall less than two hundred fifty dollars ($250) be awarded
for each separate cause of action. Subsequent or repeated violations,
which are not committed contemporaneously with the initial
violation, shall be treated as separate causes of action and shall be
subject to a separate award of damages.
(d) In any action under subdivision (c) the court shall award
reasonable attorney's fees to the prevailing party. In any such
action the tenant may seek appropriate injunctive relief to prevent
continuing or further violation of the provisions of this section
during the pendency of the action. The remedy provided by this
section is not exclusive and shall not preclude the tenant from
pursuing any other remedy which the tenant may have under any other
provision of law.
(e) For purposes of this section:
(1) "Landlord" includes, but is not limited to, a fee simple owner
or owners of the property, and any successor or successors in
interest to the landlord's interest in the property, including, but
not limited to, interests acquired through the provisions of Chapter
2 (commencing with Section 2920) of Title 14 of Part 4 of Division 3.
(2) "Tenant" includes a tenant occupying the property pursuant to
a fixed-term tenancy, a periodic tenancy, a tenancy at will, and a
tenancy at sufferance, a subtenant, a lawful occupant, and any of the
above persons who lawfully occupied the property immediately prior
to the owner's acquisition of the property.
SEC. 2. Section 1942.2 is added to the Civil Code, to read:
1942.2. A tenant who has made a payment to a utility pursuant to
Section 777.1, 10009.1, 12822.1, or 16481.1 of the Public Utilities
Code may deduct the payment from the rent as provided in that
section.
SEC. 3. Section 1950.5 of the Civil Code is amended to read:
1950.5. (a) This section applies to security for a rental
agreement for residential property that is used as the dwelling of
the tenant.
(b) As used in this section, "security" means any payment, fee,
deposit or charge, including, but not limited to, any payment, fee,
deposit, or charge, except as provided in Section 1950.6, that is
imposed at the beginning of the tenancy to be used to reimburse the
landlord for costs associated with processing a new tenant or that is
imposed as an advance payment of rent, used or to be used for any
purpose, including, but not limited to, any of the following:
(1) The compensation of a landlord for a tenant's default in the
payment of rent.
(2) The repair of damages to the premises, exclusive of ordinary
wear and tear, caused by the tenant or by a guest or licensee of the
tenant.
(3) The cleaning of the premises upon termination of the tenancy
necessary to return the unit to the same level of cleanliness it was
in at the inception of the tenancy. The amendments to this paragraph
enacted by the act adding this sentence shall apply only to tenancies
for which the tenant's right to occupy begins after January 1, 2003.
(4) To remedy future defaults by the tenant in any obligation
under the rental agreement to restore, replace, or return personal
property or appurtenances, exclusive of ordinary wear and tear, if
the security deposit is authorized to be applied thereto by the
rental agreement.
(c) A landlord may not demand or receive security, however
denominated, in an amount or value in excess of an amount equal to
two months' rent, in the case of unfurnished residential property,
and an amount equal to three months' rent, in the case of furnished
residential property, in addition to any rent for the first month
paid on or before initial occupancy.
This subdivision does not prohibit an advance payment of not less
than six months' rent if the term of the lease is six months or
longer.
This subdivision does not preclude a landlord and a tenant from
entering into a mutual agreement for the landlord, at the request of
the tenant and for a specified fee or charge, to make structural,
decorative, furnishing, or other similar alterations, if the
alterations are other than cleaning or repairing for which the
landlord may charge the previous tenant as provided by subdivision
(e).
(d) Any security shall be held by the landlord for the tenant who
is party to the lease or agreement. The claim of a tenant to the
security shall be prior to the claim of any creditor of the landlord.
(e) The landlord may claim of the security only those amounts as
are reasonably necessary for the purposes specified in subdivision
(b). The landlord may not assert a claim against the tenant or the
security for damages to the premises or any defective conditions that
preexisted the tenancy, for ordinary wear and tear or the effects
thereof, whether the wear and tear preexisted the tenancy or occurred
during the tenancy, or for the cumulative effects of ordinary wear
and tear occurring during any one or more tenancies.
(f) (1) Within a reasonable time after notification of either
party's intention to terminate the tenancy, or before the end of the
lease term, the landlord shall notify the tenant in writing of his or
her option to request an initial inspection and of his or her right
to be present at the inspection. The requirements of this subdivision
do not apply when the tenancy is terminated pursuant to subdivision
(2), (3), or (4) of Section 1161 of the Code of Civil Procedure. At a
reasonable time, but no earlier than two weeks before the
termination or the end of lease date, the landlord, or an agent of
the landlord, shall, upon the request of the tenant, make an initial
inspection of the premises prior to any final inspection the landlord
makes after the tenant has vacated the premises. The purpose of the
initial inspection shall be to allow the tenant an opportunity to
remedy identified deficiencies, in a manner consistent with the
rights and obligations of the parties under the rental agreement, in
order to avoid deductions from the security. If a tenant chooses not
to request an initial inspection, the duties of the landlord under
this subdivision are discharged. If an inspection is requested, the
parties shall attempt to schedule the inspection at a mutually
acceptable date and time. The landlord shall give at least 48 hours'
prior written notice of the date and time of the inspection if either
a mutual time is agreed upon, or if a mutually agreed time cannot be
scheduled but the tenant still wishes an inspection. The tenant and
landlord may agree to forgo the 48-hour prior written notice by both
signing a written waiver. The landlord shall proceed with the
inspection whether the tenant is present or not, unless the tenant
previously withdrew his or her request for the inspection.
(2) Based on the inspection, the landlord shall give the tenant an
itemized statement specifying repairs or cleaning that are proposed
to be the basis of any deductions from the security the landlord
intends to make pursuant to paragraphs (1) to (4), inclusive of
subdivision (b). This statement shall also include the texts of
paragraphs (1) to (4), inclusive, of subdivision (b). The statement
shall be given to the tenant, if the tenant is present for the
inspection, or shall be left inside the premises.
(3) The tenant shall have the opportunity during the period
following the initial inspection until termination of the tenancy to
remedy identified deficiencies, in a manner consistent with the
rights and obligations of the parties under the rental agreement, in
order to avoid deductions from the security.
(4) Nothing in this subdivision shall prevent a landlord from
using the security for deductions itemized in the statement provided
for in paragraph (2) that were not cured by the tenant so long as the
deductions are for damages authorized by this section.
(5) Nothing in this subdivision shall prevent a landlord from
using the security for any purpose specified in paragraphs (1) to
(4), inclusive, of subdivision (b) that occurs between completion of
the initial inspection and termination of the tenancy or was not
identified during the initial inspection due to the presence of a
tenant's possessions.
(g) (1) No later than 21 calendar days after the tenant has
vacated the premises, but not earlier than the time that either the
landlord or the tenant provides a notice to terminate the tenancy
under Section 1946 or 1946.1, Section 1161 of the Code of Civil
Procedure, or not earlier than 60 calendar days prior to the
expiration of a fixed-term lease, the landlord shall furnish the
tenant, by personal delivery or by first-class mail, postage prepaid,
a copy of an itemized statement indicating the basis for, and the
amount of, any security received and the disposition of the security
and shall return any remaining portion of the security to the tenant.
(2) Along with the itemized statement, the landlord shall also
include copies of documents showing charges incurred and deducted by
the landlord to repair or clean the premises, as follows:
(A) If the landlord or landlord's employee did the work, the
itemized statement shall reasonably describe the work performed. The
itemized statement shall include the time spent and the reasonable
hourly rate charged.
(B) If the landlord or landlord's employee did not do the work,
the landlord shall provide the tenant a copy of the bill, invoice, or
receipt supplied by the person or entity performing the work. The
itemized statement shall provide the tenant with the name, address,
and telephone number of the person or entity, if the bill, invoice,
or receipt does not include that information.
(C) If a deduction is made for materials or supplies, the landlord
shall provide a copy of the bill, invoice, or receipt. If a
particular material or supply item is purchased by the landlord on an
ongoing basis, the landlord may document the cost of the item by
providing a copy of a bill, invoice, receipt, vendor price list, or
other vendor document that reasonably documents the cost of the item
used in the repair or cleaning of the unit.
(3) If a repair to be done by the landlord or the landlord's
employee cannot reasonably be completed within 21 calendar days after
the tenant has vacated the premises, or if the documents from a
person or entity providing services, materials, or supplies are not
in the landlord's possession within 21 calendar days after the tenant
has vacated the premises, the landlord may deduct the amount of a
good faith estimate of the charges that will be incurred and provide
that estimate with the itemized statement. If the reason for the
estimate is because the documents from a person or entity providing
services, materials, or supplies are not in the landlord's
possession, the itemized statement shall include the name, address,
and telephone number of the person or entity. Within 14 calendar days
of completing the repair or receiving the documentation, the
landlord shall complete the requirements in paragraphs (1) and (2) in
the manner specified.
(4) The landlord need not comply with paragraph (2) or (3) if
either of the following apply:
(A) The deductions for repairs and cleaning together do not exceed
one hundred twenty-five dollars ($125).
(B) The tenant waived the rights specified in paragraphs (2) and
(3). The waiver shall only be effective if it is signed by the tenant
at the same time or after a notice to terminate a tenancy under
Section 1946 or 1946.1 has been given, a notice under Section 1161 of
the Code of Civil Procedure has been given, or no earlier than 60
calendar days prior to the expiration of a fixed-term lease. The
waiver shall substantially include the text of paragraph (2).
(5) Notwithstanding paragraph (4), the landlord shall comply with
paragraphs (2) and (3) when a tenant makes a request for
documentation within 14 calendar days after receiving the itemized
statement specified in paragraph (1). The landlord shall comply
within 14 calendar days after receiving the request from the tenant.
(6) Any mailings to the tenant pursuant to this subdivision shall
be sent to the address provided by the tenant. If the tenant does not
provide an address, mailings pursuant to this subdivision shall be
sent to the unit that has been vacated.
(h) Upon termination of the landlord's interest in the premises,
whether voluntary or involuntary by sale, trustee sale, assignment,
death, appointment of receiver or otherwise, the landlord or the
landlord's agent shall, within a reasonable time, do one of the
following acts, either of which shall relieve the landlord of further
liability with respect to the security held:
(1) Transfer the portion of the security remaining after any
lawful deductions made under subdivision (e) to the landlord's
successor in interest. The landlord shall thereafter notify the
tenant by personal delivery or by first-class mail, postage prepaid,
of the transfer, of any claims made against the security, of the
amount of the security deposited, and of the names of the successor
in interest, their address, and their telephone number. If the notice
to the tenant is made by personal delivery, the tenant shall
acknowledge receipt of the notice and sign his or her name on the
landlord's copy of the notice.
(2) Return the portion of the security remaining after any lawful
deductions made under subdivision (e) to the tenant, together with an
accounting as provided in subdivision (g).
(i) Prior to the voluntary transfer of a landlord's interest in
the premises, the landlord shall deliver to the landlord's successor
in interest a written statement indicating the following:
(1) The security remaining after any lawful deductions are made.
(2) An itemization of any lawful deductions from any security
received.
(3) His or her election under paragraph (1) or (2) of subdivision
(h).
This subdivision does not affect the validity of title to the real
property transferred in violation of this subdivision.
(j) In the event of noncompliance with subdivision (h), the
landlord's successor in interest shall be jointly and severally
liable with the landlord for repayment of the security, or that
portion thereof to which the tenant is entitled, when and as provided
in subdivisions (e) and (g). A successor in interest of a landlord
may not require the tenant to post any security to replace that
amount not transferred to the tenant or successor in interest as
provided in subdivision (h), unless and until the successor in
interest first makes restitution of the initial security as provided
in paragraph (2) of subdivision (h) or provides the tenant with an
accounting as provided in subdivision (g).
This subdivision does not preclude a successor in interest from
recovering from the tenant compensatory damages that are in excess of
the security received from the landlord previously paid by the
tenant to the landlord.
Notwithstanding this subdivision, if, upon inquiry and reasonable
investigation, a landlord's successor in interest has a good faith
belief that the lawfully remaining security deposit is transferred to
him or her or returned to the tenant pursuant to subdivision (h), he
or she is not liable for damages as provided in subdivision (l), or
any security not transferred pursuant to subdivision (h).
(k) Upon receipt of any portion of the security under paragraph
(1) of subdivision (h), the landlord's successor in interest shall
have all of the rights and obligations of a landlord holding the
security with respect to the security.
(l) The bad faith claim or retention by a landlord or the landlord'
s successor in interest of the security or any portion thereof in
violation of this section, or the bad faith demand of replacement
security in violation of subdivision (j), may subject the landlord or
the landlord's successor in interest to statutory damages of up to
twice the amount of the security, in addition to actual damages. The
court may award damages for bad faith whenever the facts warrant that
award, regardless of whether the injured party has specifically
requested relief. In any action under this section, the landlord or
the landlord's successor in interest shall have the burden of proof
as to the reasonableness of the amounts claimed or the authority
pursuant to this section to demand additional security deposits.
(m) No lease or rental agreement may contain any provision
characterizing any security as "nonrefundable."
(n) Any action under this section may be maintained in small
claims court if the damages claimed, whether actual or statutory or
both, are within the jurisdictional amount allowed by Section 116.220
or 116.221 of the Code of Civil Procedure.
(o) Proof of the existence of and the amount of a security deposit
may be established by any credible evidence, including, but not
limited to, a canceled check, a receipt, a lease indicating the
requirement of a deposit as well as the amount, prior consistent
statements or actions of the landlord or tenant, or a statement under
penalty of perjury that satisfies the credibility requirements set
forth in Section 780 of the Evidence Code.
(p) For purposes of this section, "successor in interest" includes
all successors in interest, and includes, but is not limited to, a
fee simple owner or owners of the property, and any successor or
successors in interest to the landlord's interest in the property,
including, but not limited to, interests acquired through the
provisions of Chapter 2 (commencing with Section 2920) of Title 14.
(q) The amendments to this section made during the 1985 portion of
the 1985-86 Regular Session of the Legislature that are set forth in
subdivision (e) are declaratory of existing law.
(r) The amendments to this section made during the 2003 portion of
the 2003-04 Regular Session of the Legislature that are set forth in
paragraph (1) of subdivision (f) are declaratory of existing law.
SEC. 4. Section 1962 of the Civil Code is amended to read:
1962. (a) Any owner of a dwelling structure specified in Section
1961 or a party signing a rental agreement or lease on behalf of the
owner shall do all of the following:
(1) Disclose therein the name, telephone number, and usual street
address at which personal service may be effected of each person who
is:
(A) Authorized to manage the premises.
(B) An owner of the premises or a person who is authorized to act
for and on behalf of the owner for the purpose of service of process
and for the purpose of receiving and receipting for all notices and
demands.
(2) Disclose therein the name, telephone number, and address of
the person or entity to whom rent payments shall be made.
(A) If rent payments may be made personally, the usual days and
hours that the person will be available to receive the payments shall
also be disclosed.
(B) At the owner's option, the rental agreement or lease shall
instead disclose the number of either:
(i) The account in a financial institution into which rent
payments may be made, and the name and street address of the
institution; provided that the institution is located within five
miles of the rental property.
(ii) The information necessary to establish an electronic funds
transfer procedure for paying the rent.
(3) Disclose therein the form or forms in which rent payments are
to be made.
(4) Provide a copy of the rental agreement or lease to the tenant
within 15 days of its execution by the tenant. Once each calendar
year thereafter, upon request by the tenant, the owner or owner's
agent shall provide an additional copy to the tenant within 15 days.
If the owner or owner's agent does not possess the rental agreement
or lease or a copy of it, the owner or owner's agent shall instead
furnish the tenant with a written statement stating that fact and
containing the information required by paragraphs (1), (2), and (3)
of subdivision (a).
(b) In the case of an oral rental agreement, the owner, or a
person acting on behalf of the owner for the receipt of rent or
otherwise, shall furnish the tenant, within 15 days of the agreement,
with a written statement containing the information required by
paragraphs (1), (2), and (3) of subdivision (a). Once each calendar
year thereafter, upon request by the tenant, the owner or owner's
agent shall provide an additional copy of the statement to the tenant
within 15 days.
(c) The information required by this section shall be kept current
and this section shall extend to and be enforceable against any
successor owner or manager, who shall comply with this section within
15 days of succeeding the previous owner or manager.
(d) A party who enters into a rental agreement on behalf of the
owner who fails to comply with this section is deemed an agent of
each person who is an owner:
(1) For the purpose of service of process and receiving and
receipting for notices and demands.
(2) For the purpose of performing the obligations of the owner
under law and under the rental agreement.
(3) For the purpose of receiving rental payments, which may be
made in cash, by check, by money order, or in any form previously
accepted by the owner or owner's agent, unless the form of payment
has been specified in the oral or written agreement, or the tenant
has been notified by the owner in writing that a particular form of
payment is unacceptable.
(e) Nothing in this section limits or excludes the liability of
any undisclosed owner.
(f) If the address provided by the owner does not allow for
personal delivery, then it shall be conclusively presumed that upon
the mailing of any rent or notice to the owner by the tenant to the
name and address provided, the notice or rent is deemed receivable by
the owner on the date posted, if the tenant can show proof of
mailing to the name and address provided by the owner.
(g) For purposes of this section, "successor owner" includes all
successor owners, and includes, but is not limited to, a fee simple
owner or owners of the property, and a successor owner whose interest
was acquired through the provisions of Chapter 2 (commencing with
Section 2920) of Title 14. However, a successor owner whose interest
was acquired under that chapter need not comply with this section if
the owner serves a notice pursuant to Section 1161b of the Code of
Civil Procedure within 15 days after acquiring the property.
SEC. 4.5. Section 1962 of the Civil
Code is amended to read:
1962. (a) Any owner of a dwelling structure specified in Section
1961 or a party signing a rental agreement or lease on behalf of the
owner shall do all of the following:
(1) Disclose therein the name, telephone number, and usual street
address at which personal service may be effected of each person who
is:
(A) Authorized to manage the premises.
(B) An owner of the premises or a person who is authorized to act
for and on behalf of the owner for the purpose of service of process
and for the purpose of receiving and receipting for all notices and
demands.
(2) Disclose therein the name, telephone number, and address of
the person or entity to whom rent payments shall be made.
(A) If rent payments may be made personally, the usual days and
hours that the person will be available to receive the payments shall
also be disclosed.
(B) At the owner's option, the rental agreement or lease shall
instead disclose the number of either:
(i) The account in a financial institution into which rent
payments may be made, and the name and street address of the
institution; provided that the institution is located within five
miles of the rental property.
(ii) The information necessary to establish an electronic funds
transfer procedure for paying the rent.
(3) Disclose therein the form or forms in which rent payments are
to be made.
(4) Provide a copy of the rental agreement or lease to the tenant
within 15 days of its execution by the tenant. Once each calendar
year thereafter, upon request by the tenant, the owner or owner's
agent shall provide an additional copy to the tenant within 15 days.
If the owner or owner's agent does not possess the rental agreement
or lease or a copy of it, the owner or owner's agent shall instead
furnish the tenant with a written statement stating that fact and
containing the information required by paragraphs (1), (2), and (3)
of subdivision (a).
(b) In the case of an oral rental agreement, the owner, or a
person acting on behalf of the owner for the receipt of rent or
otherwise, shall furnish the tenant, within 15 days of the agreement,
with a written statement containing the information required by
paragraphs (1), (2), and (3) of subdivision (a). Once each calendar
year thereafter, upon request by the tenant, the owner or owner's
agent shall provide an additional copy of the statement to the tenant
within 15 days.
(c) The information required by this section shall be kept current
and this section shall extend to and be enforceable against any
successor owner or manager, who shall comply with this section within
15 days of succeeding the
previous owner or manager.
(d) A party who enters into a rental agreement on behalf of the
owner who fails to comply with this section is deemed an agent of
each person who is an owner:
(1) For the purpose of service of process and receiving and
receipting for notices and demands.
(2) For the purpose of performing the obligations of the owner
under law and under the rental agreement.
(3) For the purpose of receiving rental payments, which may be
made in cash, by check, by money order, or in any form previously
accepted by the owner or owner's agent, unless the form of payment
has been specified in the oral or written agreement, or the tenant
has been notified by the owner in writing that a particular form of
payment is unacceptable.
(e) Nothing in this section limits or excludes the liability of
any undisclosed owner.
(f) If the address provided by the owner does not allow for
personal delivery, then it shall be conclusively presumed that upon
the mailing of any rent or notice to the owner by the tenant to the
name and address provided, the notice or rent is deemed receivable by
the owner on the date posted, if the tenant can show proof of
mailing to the name and address provided by the owner.
(g) For purposes of this section, "successor owner" includes all
successor owners, and includes, but is not limited to, a fee simple
owner or owners of the property, and a successor owner whose interest
was acquired through the provisions of Chapter 2 (commencing with
Section 2920) of Title 14. However, a successor owner whose interest
was acquired under that chapter need not comply with this section if
the owner serves a notice pursuant to Section 1161a of the Code of
Civil Procedure within 15 days after acquiring the property.
SEC. 5. Section 2924.9 is added to the Civil
Code, to read:
2924.9. (a) In addition to the other notices required by this
chapter, a mortgagee, trustee, servicer, or beneficiary shall also
give notice of the sale, as provided in this section, to the tenants
or occupants of each dwelling unit on any property that includes one
to four dwelling units.
(b) The notice shall be:
(1) Given whenever a notice of sale is required under Section
2924f. It shall be given at least 20 days prior to the sale and shall
include the date of the sale.
(2) Given in at least 12-point type and in English and the
languages listed in Section 1632, except as provided in subdivision
(d).
(3) Mailed postage prepaid by first-class mail and by either
registered or certified mail. The outside front of the envelope shall
include this notice: "If you are renting this property, you may have
to move soon," in the manner prescribed in paragraph (2).
(4) Posted on a door of each dwelling unit. If not possible or
restricted, then the notice shall be posted in a conspicuous place on
the property, however, if access is denied because a common entrance
to the property is restricted by a guard gate or similar impediment,
the notice may be posted at that guard gate or similar impediment to
any development community. A copy of the notice of sale shall also
be posted in a conspicuous place on the property, where possible and
where not restricted for any reason.
(5) Addressed to the tenant of the dwelling unit, if known;
otherwise to "Tenant(s) or Resident(s) of Property Located at:"
followed by the address of the dwelling, including the unit number,
if any.
(c) The notice shall be in substantially the following form:
NOTICE TO ANY RENTERS OF POSSIBLE FORECLOSURE SALE
To: (as specified in subdivision (b), paragraph (5))
From: (Name, address, and capacity of person giving notice)
The property where you live is scheduled to be sold by foreclosure on
(date). However, it is possible that the sale may be delayed, or the
property might not be sold at all.
If you are renting, you and your landlord have the same rights and
responsibilities as you have always had, until the sale.
If the foreclosure sale happens, in most cases the buyer can force
you to move, but some exceptions apply. If the buyer wants you to
move, the buyer must give you at least 60 days' written notice. You
will no longer be required to pay rent after a foreclosure sale.
However, the buyer may ask you if you wish to continue renting. If
you agree to continue renting, a new lease or rental agreement would
begin at that time, and you must pay rent at that time.
These rules are complicated. You may want to discuss your rights with
a lawyer, your local free legal aid program, or a local rent
stabilization board. To find a legal aid program, go to:
www.lawhelpcalifornia.org/CA/index.cfm. You should also contact your
landlord or manager if you have questions.
(d) The person giving the notice required in subdivision (c) shall
include in the notice either:
(1) A translation of the notice into the languages listed in
Section 1632.
(2) A translation of a summary of the notice into the languages
listed in Section 1632, including notification of the possible sale,
that any tenant's right to continue to live there may be affected,
and that a tenant may wish to discuss his or her rights with a
lawyer, a local free legal aid program, or a local rent stabilization
board.
SEC. 6. Section 1161a of the Code of Civil
Procedure is amended to read:
1161a. (a) As used in this section:
(1) "Manufactured home" has the same meaning as provided in
Section 18007 of the Health and Safety Code.
(2) "Mobilehome" has the same meaning as provided in Section 18008
of the Health and Safety Code.
(3) "Floating home" has the same meaning as provided in
subdivision (d) of Section 18075.55 of the Health and Safety Code.
(b) Except as provided in Section 1161b, in any of the following
cases, a person who holds over and continues in possession of a
manufactured home, mobilehome, floating home, or real property after
a three-day written notice to quit the property has been served upon
the person, or if there is a subtenant in actual occupation of the
premises, also upon the subtenant, as prescribed in Section 1162, may
be removed therefrom as prescribed in this chapter:
(1) Where the property has been sold pursuant to a writ of
execution against the person, or a person under whom the person
claims, and the title under the sale has been duly perfected.
(2) Where the property has been sold pursuant to a writ of sale,
upon the foreclosure by proceedings taken as prescribed in this code
of a mortgage, or under an express power of sale contained therein,
executed by the person, or a person under whom the person claims, and
the title under the foreclosure has been duly perfected.
(3) Where the property has been sold in accordance with Section
2924 of the Civil Code, under a power of sale contained in a deed of
trust executed by the person, or a person under whom the person
claims, and the title under the sale has been duly perfected.
(4) Where the property has been sold by the person, or a person
under whom the person claims, and the title under the sale has been
duly perfected.
(5) Where the property has been sold in accordance with Section
18037.5 of the Health and Safety Code under the default provisions of
a conditional sale contract or security agreement executed by the
person, or a person under whom the person claims, and the title under
the sale has been duly perfected.
SEC. 7. Section 1161b is added to the Code of
Civil Procedure, to read:
1161b. (a) As used in this section:
(1) "Manufactured home" has the same meaning as provided in
Section 18007 of the Health and Safety Code.
(2) "Mobilehome" has the same meaning as provided in Section 18008
of the Health and Safety Code.
(3) "Floating home" has the same meaning as provided in
subdivision (d) of Section 18075.55 of the Health and Safety Code.
(b) Notwithstanding Section 1161a, a tenant in possession of real
property that includes a dwelling unit that has been sold or
otherwise transferred by reason of any of the causes enumerated in
paragraph 2, 3, or 5 of subdivision (b) of Section 1161a may only be
removed from the property under the provisions of this section.
(c) The tenant shall be given 60 days' written notice to quit
before the tenant may be removed from the property, as prescribed in
the procedures of this chapter. The notice shall be served as
provided in Section 1162.
(d) For any dwelling units on the property, the notice shall be in
substantially the following form, in English and the languages
described in Section 1632 of the Civil Code, in at least 12-point
type:
TERMINATION NOTICE
The property you live at, (street address including unit number if
any), has been sold due to a foreclosure.
You must move on or before (specify date at least 60 days after
service). You may move out at any time before (date specified above).
You may wish to contact a lawyer or your local free legal services
program to discuss any other rights you may have, including your
possible right to stay. If you are going to challenge this eviction,
you should generally continue to pay rent to the person listed below.
If you decide you are going to move, you are not required to pay any
more rent.
You will be responsible for any damages to the property, under the
same terms as you had with your former landlord.
If you paid a security deposit, your former landlord and the new
owner are both responsible for returning the original amount to you,
less any lawful deductions.
The new owner is (name). (If applicable:) The agent of the new owner
is (name and address of agent). You may contact them at: (address).
(e) The notice shall be signed by the owner or the owner's agent.
If an owner's agent signs, the notice shall so specify.
(f) A city, county, or city and county may require an alternative
notice specifically relating to foreclosed properties.
(g) Any person who knowingly or recklessly serves a notice to a
tenant specified in subdivision (a) to terminate possession, which
does not comply with this section and any local law that regulates
the basis for eviction, shall be subject to civil fines and penalties
of up to one thousand dollars ($1,000).
(h) For purposes of this section:
(1) "Owner" includes all successor owners, and includes, but is
not limited to, a fee simple owner or owners of the property, and a
successor owner whose interest was acquired through the provisions of
Chapter 2 (commencing with Section 2920) of Title 14 of Part 4 of
Division 3.
(2) "Tenant" includes a tenant occupying property pursuant to a
fixed term tenancy, a periodic tenancy, a tenancy at will, and a
tenancy at sufferance, a subtenant, a lawful occupant, and any of the
above persons who lawfully occupied the property immediately prior
to the owner's acquisition of the property.
SEC. 8. SEC. 5. Section 777 of the
Public Utilities Code is repealed.
SEC. 9. SEC. 6. Section 777.1 of the
Public Utilities Code is amended to read:
777.1. (a) Whenever an electrical, gas, heat, or water
corporation furnishes residential service to residential occupants in
a residential structure, mobilehome park, or permanent residential
structures in a labor camp, as defined in Section 17008 of the Health
and Safety Code, where the owner, manager, or operator is listed by
the corporation as the customer of record, the corporation shall
inform the residential occupants, by means of a written notice posted
on the door of each residential unit and a mailed notice to all
affected service addresses known to the utility or available through
reasonable and practical methods at least 15 days prior to
termination, when the account is in arrears, that service will be
terminated on a date specified in the notice. If it is not reasonable
or practicable to post the notice on the door of each residential
unit, the corporation shall post two copies of the notice in each
accessible common area and at each point of access to the structure
or structures. The mailed notice shall be addressed to "Any Person
Renting Property At:" followed by the address of the dwelling unit.
The outside of the envelope shall state, in English and in the
languages listed in Section 1632 of the Civil Code, in at least
12-point type: "Utility service to this address may be cut off soon."
The notice shall further inform the residential occupants that they
have the right to become customers, to whom the service will then be
billed, without being required to pay any amount which may be due on
the delinquent account. The notice also shall specify, in plain
language, what the residential occupants are required to do in order
to prevent the termination or reestablish service; the estimated
monthly cost of service; the title, address, and telephone number of
a representative of the corporation who can assist the residential
occupants in continuing service; and the address and telephone number
of a legal services project, as defined in Section 6213 of the
Business and Professions Code, which has been recommended by the
local county bar association. The notice shall be in English and in
the languages listed in Section 1632 of the Civil Code.
(b) The corporation is not required to make service available to
the residential occupants unless a residential occupant or a
representative of the residential occupants agrees to the terms and
conditions of service and meets the requirements of law and the
corporation's rules and tariffs. However, if one or more of the
residential occupants or the representative of the residential
occupants are willing and able to assume responsibility for
subsequent charges to the account to the satisfaction of the
corporation, or if there is a physical means, legally available to
the corporation, of selectively terminating service to those
residential occupants who have not met the requirements of the
corporation's rules and tariffs or for whom the representative of the
residential occupants is not responsible, the corporation shall make
service available to those residential occupants who have met those
requirements or on whose behalf those requirements have been met.
(c) Where prior service for a period of time or other
demonstration of credit worthiness is a condition for establishing
credit with the corporation, residence and proof of prompt payment of
rent or other credit obligation during that period of time
acceptable to the corporation is a satisfactory equivalent.
(d) Any residential occupant who becomes a customer of the
corporation pursuant to this section whose periodic payments, such as
rental payments, include charges for residential electrical, gas,
heat, or water service, where those charges are not separately
stated, may deduct from the periodic payment each payment period all
reasonable charges paid to the corporation for those services during
the preceding payment period.
(e) Whenever a corporation furnishes residential service subject
to subdivision (a), the corporation may not terminate that service in
any of the following situations:
(1) During the pendency of an investigation by the corporation of
a customer dispute or complaint.
(2) When the customer has been granted an extension of the period
for payment of a bill.
(3) For an indebtedness owed by the customer to any other person
or corporation or when the obligation represented by the delinquent
account or other indebtedness was incurred with a person or
corporation other than the electrical, gas, heat, or water
corporation demanding payment therefor.
(4) When a delinquent account relates to another property owned,
managed, or operated by the customer.
(5) When a public health or building officer certifies that
termination would result in a significant threat to the health or
safety of the residential occupants or the public.
(f) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, manager, or
operator, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit receiving
that service is occupied, the residential occupant or the
representative of the residential occupants may commence an action
for the recovery of all of the following:
(1) Reasonable costs and expenses incurred by the residential
occupant or the representative of the residential occupants related
to restoration of service.
(2) Actual damages related to the termination of service.
(3) Reasonable attorney's fees of the residential occupants, the
representative of the residential occupants, or each of them,
incurred in the enforcement of this section, including, but not
limited to, enforcement of a lien.
(g) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, manager, or
operator, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit receiving
that service is occupied, the corporation may commence an action for
the recovery of all of the following:
(1) Delinquent charges accruing prior to the expiration of the
notice prescribed by subdivision (a).
(2) Reasonable costs incurred by the corporation related to the
restoration of service.
(3) Reasonable attorney's fees of the corporation incurred in the
enforcement of this section or in the collection of delinquent
charges, including, but not limited to, enforcement of a lien.
If the court finds that the owner, manager, or operator has paid
the amount in arrears prior to termination, the court shall allow no
recovery of any charges, costs, damages, expenses, or fees under this
subdivision from the owner, manager, or operator.
An abstract of any money judgment entered pursuant to subdivision
(f) or (g) shall be recorded pursuant to Section 697.310 of the Code
of Civil Procedure.
(h) No termination of service subject to this section may be
effected without compliance with this section, and any service
wrongfully terminated shall be restored without charge to the
residential occupants or customer for the restoration of the service.
In the event of a wrongful termination by the corporation, the
corporation shall, in addition, be liable to the residential
occupants or customer for actual damages resulting from the
termination and for the costs of enforcement of this section,
including, but not limited to, reasonable attorney's fees, if the
residential occupants or the representative of the residential
occupants made a good faith effort to have the service continued
without interruption.
(i) The commission shall adopt rules and orders necessary to
implement this section and shall liberally construe this section to
accomplish its purpose of ensuring that service to residential
occupants is not terminated due to nonpayment by the customer unless
the corporation has made every reasonable effort to continue service
to the residential occupants. The rules and orders shall include, but
are not limited to, reasonable penalties for a violation of this
section, guidelines for assistance to residents in the enforcement of
this section, and requirements for the notice prescribed by
subdivision (a), including, but not limited to, clear wording, large
and boldface type, and comprehensive instructions to ensure full
notice to the resident.
(j) Nothing in this section broadens or restricts any authority of
a local agency that existed prior to January 1, 1989, to adopt an
ordinance protecting a residential occupant from the involuntary
termination of residential public utility service.
(k) This section preempts any statute or ordinance permitting
punitive damages against any owner, manager, or operator on account
of an involuntary termination of residential public utility service
or permitting the recovery of costs associated with the formation,
maintenance, and termination of a tenant's association.
SEC. 10. SEC. 7. Section 10009 of
the Public Utilities Code is repealed.
SEC. 11. SEC. 8. Section 10009.1 of
the Public Utilities Code is amended to read:
10009.1. (a) Whenever a public utility furnishes light, heat,
water, or power to residential occupants in a residential structure,
mobilehome park, or permanent residential structures in a labor camp,
as defined in Section 17008 of the Health and Safety Code, where the
owner, manager, or operator is listed by the public utility as the
customer of record, the public utility shall inform the residential
occupants, by means of a written notice posted on the door of each
residential unit and a mailed notice to all affected service
addresses known to the utility or available through reasonable and
practical methods at least 15 days prior to termination, when the
account is in arrears, that service will be terminated on a date
specified in the notice. If it is not reasonable or practicable to
post the notice on the door of each residential unit, the public
utility shall post two copies of the notice in each accessible common
area and at each point of access to the structure or structures. The
mailed notice shall be addressed to "Any Person Renting Property At:"
followed by the address of the dwelling unit. The outside of the
envelope shall state, in English and in the languages listed in
Section 1632 of the Civil Code, in at least 12-point type: "Utility
service to this address may be cut off soon." The notice shall
further inform the residential occupants that they have the right to
become utility customers, to whom the service will then be billed,
without being required to pay the amount due on the delinquent
account. The notice also shall specify, in plain language, what the
residential occupants are required to do in order to prevent the
termination or reestablish service; the estimated monthly cost of
service; the title, address, and telephone number of a representative
of the public utility who can assist the residential occupants in
continuing service; and the address and telephone number of a legal
services project, as defined in Section 6213 of the Business and
Professions Code, which has been recommended by the local county bar
association. The notice shall be in English and in the languages
listed in Section 1632 of the Civil Code.
(b) The public utility is not required to make service available
to the residential occupants unless a residential occupant or a
representative of the residential occupants agrees to the terms and
conditions of service, and meets the requirements of law and the
public utility's rules. However, if one or more of the residential
occupants or the representative of the residential occupants are
willing and able to assume responsibility for subsequent charges to
the account to the satisfaction of the public utility, or if there is
a physical means, legally available to the public utility, of
selectively terminating service to those residential occupants who
have not met the requirements of the public utility's rules or for
whom the representative of the residential occupants is not
responsible, the public utility shall make service available to the
residential occupants who have met those requirements or on whose
behalf those requirements have been met.
(c) Where prior service for a period of time or other
demonstration of credit worthiness is a condition for establishing
credit with the public utility, residence and proof of prompt payment
of rent or other credit obligation during that period of time
acceptable to the public utility is a satisfactory equivalent.
(d) Any residential occupant who becomes a customer of the public
utility pursuant to this section whose periodic payments, such as
rental payments, include charges for residential light, heat, water,
or power, where these charges are not separately stated, may deduct
from the periodic payment each payment period all reasonable charges
paid to the public utility for those services during the preceding
payment period.
(e) Whenever a public utility furnishes residential service
subject to subdivision (a), the public utility may not terminate that
service in any of the following situations:
(1) During the pendency of an investigation by the public utility
of a customer dispute or complaint.
(2) When the customer has been granted an extension of the period
for payment of a bill.
(3) For an indebtedness owed by the customer to any other public
agency or when the obligation represented by the delinquent account
or other indebtedness was incurred with any public agency other than
the public utility.
(4) When a delinquent account relates to another property owned,
managed, or operated by the customer.
(5) When a public health or building officer certifies that
termination would result in a significant threat to the health or
safety of the residential occupants or the public.
(f) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, manager, or
operator, by any act or omission, directs, permits, or fails to
prevent a termination of service while any
residential unit is occupied, the residential
occupant or the representative of the residential occupants may
commence an action for the recovery of all of the following:
(1) Reasonable costs and expenses incurred by the residential
occupant or the representative of the residential occupants related
to restoration of service.
(2) Actual damages related to the termination of service.
(3) Reasonable attorney's fees of the residential occupants, the
representative of the residential occupants, or each of them,
incurred in the enforcement of this section, including, but not
limited to, enforcement of a lien.
(g) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, manager, or
operator, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit receiving
that service is occupied, the corporation may commence an action for
the recovery of all of the following:
(1) Delinquent charges accruing prior to the expiration of the
notice prescribed by subdivision (a).
(2) Reasonable costs incurred by the corporation related to the
restoration of service.
(3) Reasonable attorney's fees of the corporation incurred in the
enforcement of this section or in the collection of delinquent
charges, including, but not limited to, enforcement of a lien.
If the court finds that the owner, manager, or operator has paid
the amount in arrears prior to termination, the court shall allow no
recovery of any charges, costs, damages, expenses, or fees under this
subdivision from the owner, manager, or operator.
An abstract of any money judgment entered pursuant to subdivision
(f) or (g) shall be recorded pursuant to Section 697.310 of the Code
of Civil Procedure.
(h) No termination of service subject to this section may be
effected without compliance with this section, and any service
wrongfully terminated shall be restored without charge to the
residential occupants or customer for the restoration of the service.
In the event of a wrongful termination by the public utility, the
public utility shall, in addition, be liable to the residential
occupants or customer for actual damages resulting from the
termination and for the costs of enforcement of this section,
including, but not limited to, reasonable attorney's fees, if the
residential occupants or the representative of the residential
occupants make a good faith effort to have the service continued
without interruption.
(i) The public utility shall adopt rules and regulations necessary
to implement this section and shall liberally construe this section
to accomplish its purpose of ensuring that service to residential
occupants is not terminated due to nonpayment by the customer unless
the public utility has made every reasonable effort to continue
service to the residential occupants. The rules and regulations shall
include, but are not limited to, guidelines for assistance to actual
users in the enforcement of this section and requirements for the
notice prescribed by subdivision (a), including, but not limited to,
clear wording, large and boldface type, and comprehensive
instructions to ensure full notice to the actual user.
(j) Nothing in this section broadens or restricts any authority of
a local agency that existed prior to January 1, 1989, to adopt an
ordinance protecting a residential occupant from the involuntary
termination of residential public utility service.
(k) This section preempts any statute or ordinance permitting
punitive damages against any owner, manager, or operator on account
of an involuntary termination of residential public utility service
or permitting the recovery of costs associated with the formation,
maintenance, and termination of a tenant's association.
SEC. 12. SEC. 9. Section 12822 of
the Public Utilities Code is repealed.
SEC. 13. SEC. 10. Section 12822.1 of
the Public Utilities Code is amended to read:
12822.1. (a) Whenever a district furnishes residential light,
heat, water, or power to residential occupants in a residential
structure, mobilehome park, or permanent residential structures in a
labor camp, as defined in Section 17008 of the Health and Safety
Code, where the owner, manager, or operator is listed by the district
as the customer of record of the service, the district shall inform
the residential occupants, by means of a written notice posted on the
door of each residential unit and a mailed notice to all affected
service addresses known to the utility or available through
reasonable and practical methods at least 15 days prior to
termination, when the account is in arrears, that service will be
terminated on a date specified in the notice. If it is not reasonable
or practicable to post the notice on the door of each residential
unit, the district shall post two copies of the notice in each
accessible common area and at each point of access to the structure
or structures. The mailed notice shall be addressed to "Any Person
Renting Property At:" followed by the address of the dwelling unit.
The outside of the envelope shall state, in English and in the
languages listed in Section 1632 of the Civil Code, in at least
12-point type: "Utility service to this address may be cut off soon."
The notice shall further inform the residential occupants that they
have the right to become customers, to whom the service will then be
billed, of the district without being required to pay the amount due
on the delinquent account. The notice also shall specify, in plain
language, what the residential occupants are required to do in order
to prevent the termination or reestablish service; the estimated
monthly cost of service; the title, address, and telephone number of
a representative of the district who can assist the residential
occupants in continuing service; and the address and telephone number
of a legal services project, as defined in Section 6213 of the
Business and Professions Code, which has been recommended by the
local county bar association. The notice shall be in English and in
the languages listed in Section 1632 of the Civil Code.
(b) The district is not required to make service available to the
residential occupants unless a residential occupant or a
representative of the residential occupants agrees to the terms and
conditions of service, and meets the requirement of law and the
district's rules. However, if one or more of the residential
occupants or the representative of the residential occupants are
willing and able to assume responsibility for subsequent charges to
the account to the satisfaction of the district, or if there is a
physical means, legally available to the district, of selectively
terminating service to those residential occupants who have not met
the requirements of the district's rules or for whom the
representative of the residential occupants is not responsible, the
district shall make service available to the residential occupants
who have met those requirements or on whose behalf those requirements
have been met.
(c) Where prior service for a period of time, or other
demonstration of credit worthiness is a condition for establishing
credit with the district, residence and proof of prompt payment of
rent or other credit obligation during that period of time acceptable
to the district is a satisfactory equivalent.
(d) Any residential occupant who becomes a customer of the
district pursuant to this section whose periodic payments, such as
rental payments, include charges for residential light, heat, water,
or power, where these charges are not separately stated, may deduct
from the periodic payment each payment period all reasonable charges
paid to the district for those services during the preceding payment
period.
(e) Whenever a district furnishes residential service subject to
subdivision (a), the district may not terminate that service in any
of the following situations:
(1) During the pendency of an investigation by the district of a
customer dispute or complaint.
(2) When the customer has been granted an extension of the period
for payment of a bill.
(3) For an indebtedness owed by the customer to any other public
agency or when the obligation represented by the delinquent account
or other indebtedness was incurred with any public agency other than
the district.
(4) When a delinquent account relates to another property owned,
managed, or operated by the customer.
(5) When a public health or building officer certifies that
termination would result in a significant threat to the health or
safety of the residential occupants or the public.
(f) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, operator, or
manager, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit is
occupied, the residential occupant or the representative of the
residential occupants may commence an action for the recovery of all
of the following:
(1) Reasonable costs and expenses incurred by the residential
occupant or the representative of the residential occupants related
to restoration of service.
(2) Actual damages related to the termination of service.
(3) Reasonable attorney's fees of the residential occupants, the
representative of the residential occupants, or each of them,
incurred in the enforcement of this section, including, but not
limited to, enforcement of a lien.
(g) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, manager, or
operator, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit receiving
that service is occupied, the corporation may commence an action for
the recovery of all of the following:
(1) Delinquent charges accruing prior to the expiration of the
notice prescribed by subdivision (a).
(2) Reasonable costs incurred by the corporation related to the
restoration of service.
(3) Reasonable attorney's fees of the corporation incurred in the
enforcement of this section or in the collection of delinquent
charges, including, but not limited to, enforcement of a lien.
If the court finds that the owner, manager, or operator has paid
the amount in arrears prior to termination, the court shall allow no
recovery of any charges, costs, damages, expenses, or fees under this
subdivision from the owner, manager, or operator.
An abstract of any money judgment entered pursuant to subdivision
(f) or (g) shall be recorded pursuant to Section 697.310 of the Code
of Civil Procedure.
(h) No termination of service subject to this section may be
effected without compliance with this section, and any service
wrongfully terminated shall be restored without charge to the
residential occupants or customer for the restoration of the service.
In the event of a wrongful termination by the district, the district
shall, in addition, be liable to the residential occupants or
customer for actual damages resulting from the termination and for
the costs of enforcement of this section, including, but not limited
to, reasonable attorney's fees, if the residential occupants or the
representative of the residential occupants make a good faith effort
to have the service continued without interruption.
(i) The district shall adopt rules and regulations necessary to
implement this section and shall liberally construe this section to
accomplish its purpose of ensuring that service to the residential
occupants is not terminated due to nonpayment by the customer unless
the district has made every reasonable effort to continue service to
the residential occupants. The rules and regulations shall include,
but are not limited to, guidelines for assistance to actual users in
the enforcement of this section and requirements for the notice
prescribed by subdivision (a), including, but not limited to, clear
wording, large and boldface type, and comprehensive instructions to
ensure full notice to the actual user.
(j) Nothing in this section broadens or restricts any authority of
a local agency that existed prior to January 1, 1989, to adopt an
ordinance protecting a residential occupant from the involuntary
termination of residential public utility service.
(k) This section preempts any statute or ordinance permitting
punitive damages against any owner, manager, or operator on account
of an involuntary termination of residential public utility service
or permitting the recovery of costs associated with the formation,
maintenance, and termination of a tenant's association.
SEC. 14. SEC. 11. Section 16481 of
the Public Utilities Code is repealed.
SEC. 15. SEC. 12. Section 16481.1 of
the Public Utilities Code is amended to read:
16481.1. (a) Whenever a district furnishes residential light,
heat, water, or power to residential occupants in a residential
structure, mobilehome park, or permanent residential structures in a
labor camp, as defined in Section 17008 of the Health and Safety
Code, where the owner, manager, or operator is listed by the district
as the customer of record, the district shall inform the residential
occupants, by means of a written notice posted on the door of each
residential unit and a mailed notice to all affected service
addresses known to the utility or available through reasonable and
practical methods at least 15 days prior to termination, when the
account is in arrears, that service will be terminated on a date
specified in the notice. If it is not reasonable or practicable to
post the notice on the door of each residential unit, the district
shall post two copies of the notice in each common area and at each
point of access to the structure or structures. The mailed notice
shall be addressed to "Any Person Renting Property At:" followed by
the address of the dwelling unit. The outside of the envelope shall
state, in English and in the languages listed in Section 1632 of the
Civil Code, in at least 12-point type: "Utility service to this
address may be cut off soon." The notice shall further inform the
residential occupants that they have the right to become customers,
to whom the service will be billed, of the district without being
required to pay the amount due on the delinquent account. The notice
also shall specify, in plain language, what the residential occupants
are required to do in order to prevent the termination or
reestablish service; the estimated monthly cost of service; the
title, address, and telephone number of a representative of the
district who can assist the residential occupants in continuing
service; and the address and telephone number of a legal services
project, as defined in Section 6213 of the Business and Professions
Code, which has been recommended by the local county bar association.
The notice shall be in English and in the languages listed in
Section 1632 of the Civil Code.
(b) The district is not required to make service available to the
residential occupants unless a residential occupant or a
representative of the residential occupants agrees to the terms and
conditions of service, and meets the requirements of law and the
district's rules. However, if one or more of the residential
occupants or the representative of the residential occupants are
willing and able to assume responsibility for subsequent charges to
the account to the satisfaction of the district, or if there is a
physical means, legally available to the district, of selectively
terminating service to those residential occupants who have not met
the requirements of the district's rules or for whom the
representative of the residential occupants is not responsible, the
district shall make service available to the residential occupants
who have met those requirements or on whose behalf those requirements
have been met.
(c) Where prior service for a period of time or other
demonstration of credit worthiness is a condition for establishing
credit with the district, residence and proof of prompt payment of
rent or other credit obligation during that period of time acceptable
to the district is a satisfactory equivalent.
(d) Any residential occupant who becomes a customer of the
district pursuant to this section whose periodic payments, such as
rental payments, include charges for residential light, heat, water,
or power, where these charges are not separately stated, may deduct
from the periodic payment each payment period all reasonable charges
paid to the district for those services during the preceding payment
period.
(e) Whenever a district furnishes residential service subject to
subdivision (a), the district may not terminate that service in any
of the following situations:
(1) During the pendency of an investigation by the district of a
customer dispute or complaint.
(2) When the customer has been granted an extension of the period
for payment of a bill.
(3) For an indebtedness owed by the customer to any other public
agency or when the obligation represented by the delinquent account
or other indebtedness was incurred with any public agency other than
the district.
(4) When a delinquent account relates to another property owned,
managed, or operated by the customer.
(5) When a public health or building officer certifies that
termination would result in a significant threat to the health or
safety of the residential occupants or the public.
(f) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, operator, or
manager, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit is
occupied, the residential occupant or the representative of the
residential occupants may commence an action for the recovery of all
of the following:
(1) Reasonable costs and expenses incurred by the residential
occupant or the representative of the residential occupants related
to restoration of service.
(2) Actual damages related to the termination of service.
(3) Reasonable attorney's fees of the residential occupants, the
representative of the residential occupants, or each of them,
incurred in the enforcement of this section, including, but not
limited to, enforcement of a lien.
(g) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, manager, or
operator, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit receiving
that service is occupied, the corporation may commence an action for
the recovery of all of the following:
(1) Delinquent charges accruing prior to the expiration of the
notice prescribed by subdivision (a).
(2) Reasonable costs incurred by the corporation related to the
restoration of service.
(3) Reasonable attorney's fees of the corporation incurred in the
enforcement of this section or in the collection of delinquent
charges, including, but not limited to, enforcement of a lien.
If the court finds that the owner, manager, or operator has paid
the amount in arrears prior to termination, the court shall allow no
recovery of any charges, costs, damages, expenses, or fees under this
subdivision from the owner, manager, or operator.
An abstract of any money judgment entered pursuant to subdivision
(f) or (g) shall be recorded pursuant to Section 697.310 of the Code
of Civil Procedure.
(h) No termination of service subject to this section may be
effected without compliance with this section, and any service
wrongfully terminated shall be restored without charge to the
residential occupants or customer for the restoration of the service.
In the event of a wrongful termination by the district, the district
shall, in addition, be liable to the residential occupants or
customer for actual damages resulting from the termination and for
the costs of enforcement of this section, including, but not limited
to, reasonable attorney's fees, if the residential occupants or the
representative of the residential occupants make a good faith effort
to have the service continued without interruption.
(i) The district shall adopt rules and regulations necessary to
implement this section and shall liberally construe this section to
accomplish its purpose of ensuring that service to the residential
occupants is not terminated due to nonpayment by the customer unless
the district has made every reasonable effort to continue service to
the residential occupants. The rules and regulations shall include,
but are not limited to, guidelines for assistance to actual users in
the enforcement of this section and requirements for the notice
prescribed by subdivision (a), including, but not limited to, clear
wording, large and boldface type, and comprehensive instructions to
ensure full notice to the actual users.
(j) Nothing in this section broadens or restricts any authority of
a local agency that existed prior to January 1, 1989, to adopt an
ordinance protecting a residential occupant from the involuntary
termination of residential public utility service.
(k) This section preempts any statute or ordinance permitting
punitive damages against any owner, manager, or operator on account
of an involuntary termination of public utility service or permitting
the recovery of costs associated with the formation, maintenance,
and termination of a tenant's association.
SEC. 16. (a) This act does not, and shall not
be construed to, affect the authority of a public entity that
otherwise exists to regulate or monitor the basis for eviction.
(b) It is the intent of the Legislature to clarify that a person
who acquires property under the circumstances described in paragraphs
(1) and (4) of Section 1161a of the Code of Civil Procedure does so
subject to any existing lease, of fixed term, periodic, or otherwise,
for the property.
SEC. 17. SEC. 13. No reimbursement
is required by this act pursuant to Section 6 of Article XIII B of
the California Constitution because the only costs that may be
incurred by a local agency or school district will be incurred
because this act creates a new crime or infraction, eliminates a
crime or infraction, or changes the penalty for a crime or
infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIII B of the California Constitution.
SEC. 14. Section 4 of this act shall only take
effect if Senate Bill 1137 of the 2007-08 Regular Session is enacted
and adds Section 1161b to the Code of Civil Procedure, in which case
Section 4.5 of this act shall not take effect. Section 4.5 of this
act shall only take effect if Senate Bill 1137 of the 2007-08 Regular
Session is not enacted or does not add Section 1161b to the Code of
Civil Procedure, in which case Section 4 of this act shall not take
effect.