BILL ANALYSIS                                                                                                                                                                                                    



                                                                 AB 1263
                                                                 Page  1


         ASSEMBLY THIRD READING
         AB 1263 (Audra Strickland)
         As Amended January 13, 2010
         Majority vote

          JUDICIARY           9-0                                          
          
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         |Ayes:|Feuer, Tran, Brownley,    |     |                          |
         |     |Evans, Hagman, Jones,     |     |                          |
         |     |Knight, Lieu, Monning     |     |                          |
         |-----+--------------------------+-----+--------------------------|
         |     |                          |     |                          |
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          SUMMARY  :  Provides that in order to effect removal of a  
          commercial  tenant from property under the unlawful detainer (UD)  
         statute, notice that the commercial tenant is in violation of  
         lease terms must be served as follows: 

         1)By delivering a copy of the notice to the tenant personally.

         2)If the tenant is absent from the subject property, by leaving a  
           copy with a person of suitable age and discretion at the  
           property and mailing a copy to the tenant at the rental  
           property address.

         3)If service cannot be achieved by a) or b) above, then by  
           affixing a copy in a conspicuous place at the rental property  
           and mailing a copy addressed to the tenant at the rental  
           property address. 

          EXISTING LAW  :

         1)Provides that a tenant of real property, for a term less than  
           life, or the executor or administrator of his or her estate is  
           guilty of UD under any of the following circumstances:

            a)   When the tenant continues in possession after the lease  
              term expires;

            b)   When the tenant continues in possession without the  
              landlord's permission after defaulting on rent payment;

            c)   When the tenant continues in possession after failure to  
              perform other lease requirements;







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            d)   When the tenant is assigning, subletting, or committing  
              waste on the premises in violation of the lease agreement,  
              or using the premises for an unlawful purpose; or,

            e)   When the tenant agrees to surrender the property on a  
              certain date and fails to do so.  

         2)Provides that, before a landlord can seek repossession of  
           rental property through a UD action, based on one the  
           circumstances above, the tenant must be served notice to quit  
           the property or cure the default of other lease violation.   
           Specifies that the required notice must be served as follows:

            a)   By personally delivering it to the tenant; or, 
            b)   If the tenant is absent from his or her place of  
              residence or business, by leaving a copy with a person of  
              suitable age and discretion at either place and sending a  
              copy through the mail to the tenant at his or her residence;  
              or,

            c)   If the tenant's place of residence and business cannot be  
              determined, or if a person of suitable age and discretion  
              cannot be found, then by doing all of the following:

              i)     Affixing the notice in a conspicuous place at the  
                property from which the tenant is to be removed;

              ii)    Delivering a copy to the person there residing, if  
                such person can be found; and,

              iii)   Mailing a copy to the tenant at the property address.  
                 
          
         FISCAL EFFECT  :  None
          
         COMMENTS  :  Under existing law, before a landlord can initiate a  
         UD action to regain possession of the rented property, the  
         landlord must serve notice upon the tenant that he or she has  
         violated a term of the lease, thereby giving the tenant an  
         opportunity to either correct the violation or leave the  
         premises.  The procedure serving notice upon the tenant is set  
         out in the statute in some detail.  Existing law creates a strong  
         preference for serving the tenant in person before employing  
         alternative forms of notice.  Specifically, existing law requires  







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         that personal service be attempted at the tenant's residence  and   
         the place of business, if known.  If the tenant is absent from  
         the residence and place of business, then service may be  
         accomplished by leaving the notice with another person of  
         suitable age and discretion at either the residence or place of  
         business, and then mailing a copy of notice to the tenant at his  
         or her place of residence (i.e., "substitute service").  If the  
         place of residence and place of business cannot be ascertained,  
         and there is no suitable person with whom to leave the notice at  
         either place, then service may be achieved by posting a copy of  
         the notice in a conspicuous place at the rental property and then  
         mailing a copy of the notice addressed to the tenant at the place  
         where the rental property is situated (i.e., "post-and-mail"  
         service). 

         This bill seeks to address a problem that arises when the  
         existing statutory scheme is applied to a commercial tenant.   
         According to the author, in residential evictions, the existing  
         law does not present a problem, since the landlord obviously  
         knows the tenant's place of residence.  However in the commercial  
         context, the author contends, the landlord typically has no  
         reason to know the personal residence of the commercial tenant -  
         unlike the residential context, when the rental property and the  
         place of residence are one and the same.  The author seeks to  
         correct this problem by eliminating from the existing statute all  
         references to attempting personal service or mailing notices to  
         "the residence" or "place of business" and instead requiring that  
         personal service be attempted at, or any required mailings be  
         sent to, the rented "property." 

           The author states that the bill is necessary to provide landlords  
         with a reasonable method of serving notice on commercial tenants,  
         whose residential addresses are often unknown to the landlord. 


          Analysis Prepared by  :    Thomas Clark / JUD / (916) 319-2334
                                                               FN:  0003560