BILL ANALYSIS Ó AB 1513 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1513 (Fox) As Amended August 21, 2014 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |68-3 |(May 19, 2014) |SENATE: |36-0 |(August 27, | | | | | | |2014) | ----------------------------------------------------------------- Original Committee Reference: PUB. S. SUMMARY : Establishes, until 2018, a pilot program to facilitate removal of persons unlawfully occupying residential property that, pursuant to the program, has been registered with and verified by local law enforcement to be vacant. Specifically, this bill : 1)Authorizes the owner of vacant real property, or his agent, to register vacant property with the local police agency using a specified form, signed under penalty of perjury, and attesting that the property is vacant and is not authorized to be occupied by any person. 2)Requires the registration to be accompanied by a statement providing the name, address and telephone number at which the owner can be contacted within a 24-hour period, and a statement that either the police agency or a licensed private security services company has been retained to comply with specified inspection and reporting provisions, together with a copy of any agreement or contract to perform such services. 3)Requires the owner or the owner's agent to register the vacant property no later than three days after learning that the property is vacant. 4)Authorizes the owner or his agent to execute a "Declaration of Ownership," worded as specified or in substantially similar language, and file it with the appropriate local law enforcement agency where the property is located. Further requires the owner to post the declaration on the unoccupied residential property listed in the declaration if he also files it with local law enforcement. 5)Requires the owner or owner's agent, immediately after AB 1513 Page 2 authorizing a person to occupy the vacant property, to issue a written authorization to the person authorized to occupy the property and notify the police agency where the property is registered and terminate the registration. 6)Requires a licensed private security services company or police agency retained by the owner or owner's agent pursuant to the pilot program to inspect the vacant property not less than once every three days, and immediately notify the police agency where the property is registered if any unauthorized person is found on the property. 7)Requires the police agency where the property is registered to respond to the property as soon as practicable after being notified by the licensed security business that an unauthorized person is found on the property, and requires the responding officer to take a number of actions, including ascertaining the identity of any persons found on the property, and notifying any person who does not produce written authorization or other evidence demonstrating the person's right to possession that the owner may obtain a temporary restraining order, and that he or she may be subject to arrest for trespass if the person is subsequently found on the property in violation of that court order. 8)Provides that the local city council or board of supervisors shall establish fees for registering a vacant property with the local police agency and for the conduct of inspections by the police agency pursuant to this bill, including all activities conducted by the law enforcement agency in responding to unauthorized persons on the property, as described above. 9)Limits application of these provisions to residential property consisting of one to four units, located in the Cities of Palmdale and Lancaster, in Los Angeles County. 10)Establishes a sunset date of January 1, 2018, for these provisions. The Senate amendments : 1)Require the owner or the owner's agent, immediately upon the sale of the vacant property, to notify local law enforcement that the property has been sold, and to terminate the AB 1513 Page 3 registration of property previously registered pursuant to the program. 2)Clarify that a person found on the property by responding law enforcement shall be required to produce written authorization to be on the property or other evidence demonstrating the person's right to possession. 3)Provide that a property owner who files a Declaration of Ownership under this bill that includes false information regarding the right to possess the property is liable to any person who, as a result of the Declaration, is caused to vacate the property, for reasonable attorney's fees, special damages not to exceed $2,000, and all damages resulting from the person having to vacate the property. 4)Authorize the owner to file an action for a temporary restraining order (TRO) and injunctive relief against any person found on the vacant property not less than 48 hours after that person has been notified by local law enforcement to produce written authorization to be on the property or other evidence demonstrating right to possession, or face arrest. 5)Specify all of the following: a) the method of service of the summons and complaint for an action seeking a TRO; b) the authority of the court to order a hearing on the TRO and require its enforcement in not less than 48 hours; and c) the disposition of personal property on the premises belonging to a person subject to the TRO. 6)Authorize the City of Ukiah in Mendocino County to participate in the pilot program. FISCAL EFFECT : According to the Senate Appropriations Committee: 1)Non-reimbursable local enforcement costs, offset to a degree by fine revenue for misdemeanor violations of the provisions of this bill. 2)Ongoing non-reimbursable local law enforcement agency costs to process registrations, conduct inspections, and perform other duties upon notification of trespassing on a property, to be offset by the authority to establish fees for all activities. AB 1513 Page 4 3)Likely minor one-time state-reimbursable costs (General Fund) for pilot project cities to set up the program and registration system. COMMENTS : This bill, sponsored by the California Association of Realtors, seeks to provide property owners with an additional tool to enforce criminal trespass laws in cities where the so-called practice of "squatting" by unauthorized occupants in residential property poses a problem to the community at large. According to the author, "Unlawful detainer laws are not specifically designed to provide law enforcement officials the tools they need to assist owners of residential real property in their efforts to remove, or prevent occupancy by squatters on vacant properties. It is clear that under California law it can take a minimum of 30-60 days to evict a sophisticated squatter. This bill will provide a definitive remedy for owners of residences in California that have been taken over by squatters." The bill outlines a pilot project to allow property owners to declare property to be vacant, register it with local law enforcement, and obtain a TRO against any person not authorized to be on the property. The pilot program established by this bill applies to residential property of one to four units, with the Cities of Palmdale, Lancaster, and Ukiah named as the initial cities to participate in the program. According to the intent language of the bill, the program is intended to provide a means to prevent squatting in vacant residential property and to provide a timely and orderly procedure for squatters to vacate the premises in lieu of arrest, and is not intended to be an abridgment of other statutes relating to trespass or civil eviction proceedings. It is believed that the threat of arrest for trespassing on a property registered under this program (and so noticed on the property itself) will serve as a deterrent to those persons who the author and sponsor believe to be sophisticated squatters targeting vacant properties. The property owner registering the property under this program must provide a phone number he can be reached at within a 24-hour period, which is intended to enable law enforcement to quickly contact the owner should unauthorized occupants ever be discovered on the property during one of the regular inspections required under the program. In addition, the owner must retain AB 1513 Page 5 either law enforcement or a private security service to regularly inspect the vacant property, and provide a copy of the contract or agreement to perform those services at the time of registration. The security company or law enforcement agent must then inspect the vacant property at least every three days to ensure it is vacant. According to the author, this key requirement is intended to ensure that the properties registered with this program truly are vacant properties from the first day of registration, and are not occupied by holdover tenants or any other persons with legitimate claim to possess the property. It is thought that the regular inspection of the property at least once every three days will reveal quickly whether the property is a foreclosure property with a holdover tenant, or a vacant property as declared to be by the owner under penalty of perjury. If the property is established to be vacant as a condition of registration, then subsequent discovery of an occupant on the property would indicate that the person indeed fits the description of a "squatter," and is not a holdover tenant who had been living openly in the property, never having any idea that the owner had sworn the property to be vacant despite the occupant's presence. Under the program, law enforcement is required to respond soon after being notified that an unauthorized person has been found on the property. The bill provides that law enforcement responding to a first call shall not arrest the person for trespass, but instead advise the person that he or she must produce written authorization from the owner to be on the property or other evidence demonstrating right to possession, or the owner may seek to obtain a TRO and the person is subject to arrest for trespass if subsequently found on the property in violation of that order. According to the sponsor, this provides a second chance for any unauthorized occupant to vacate the premises in lieu of arrest, and demonstrates the author's commitment to avoid arrest of people who might otherwise be persuaded to move along after a single visit from law enforcement. The bill allows an owner of vacant real property to file an action for a temporary restraining order and injunctive relief against any person who is found on the property not less than 48 hours after that person has been notified by local law enforcement to produce written authorization from the owner to AB 1513 Page 6 be on the property or other evidence demonstrating right to possession. Without either being produced, that person subsequently may face arrest for trespass, pursuant to Penal Code Section 602.5, for failing to vacate the property pursuant to the TRO. Penal Code Section 602.5 currently provides for a criminal penalty of imprisonment in the county jail for up to one year and a fine of up to $1,000, or both. Analysis Prepared by : Anthony Lew / JUD. / (916) 319-2334 FN: 0005369