BILL NUMBER: SB 1439	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 1, 2014

INTRODUCED BY   Senator Leno

                        FEBRUARY 21, 2014

   An act to add Section 7060.8 to the Government Code, relating to
residential real property.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1439, as amended, Leno. Residential real property: withdrawal
of accommodations.
   Existing law, commonly known as the Ellis Act, generally prohibits
public entities from adopting any statute, ordinance, or regulation,
or taking any administrative action, to compel the owner of
residential real property to offer or to continue to offer
accommodations, as defined, in the property for rent or lease.
   This bill would authorize the  City and  County of San
Francisco to prohibit an owner of accommodations from 
withdrawing   filing a notice with a public entity of an
intent to withdraw  accommodations or prosecuting an action to
recover possession of accommodations, or threatening to do so, if not
all the owners of the accommodations have been owners of record for
5 continuous years or more or with respect to property that the owner
acquired after providing notice of an intent to withdraw
accommodations at a different property. Among other things, the bill
would also permit the  city and  county to require an owner
of accommodations notifying the  city and  county of an
intention to withdraw accommodations from rent or lease to identify
each person or entity with an ownership interest in the
accommodations and to identify all persons or entities with an
ownership interest in an entity, which information would be available
for public inspection. The bill would provide specified,
nonexclusive remedies that the  city and  county would be
authorized to provide for a violation of these provisions.
   This bill would make legislative findings and declarations as to
the necessity of a special statute for the  City and  County
of San Francisco.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 7060.8 is added to the Government Code, to
read:
   7060.8.  (a) This section shall apply only to a  county of
the sixth class as defined by Sections 28020 and 28027. 
 city that is also a county. 
   (b) Notwithstanding any other provision of this chapter, the 
city and  county by statute, ordinance, ballot measure,
executive directive, resolution, or regulation may provide that:
   (1) An owner of accommodations shall not  file a notice with a
public entity of an intent to  withdraw accommodations pursuant
to this chapter, prosecute an action to recover possession of
accommodations pursuant to this chapter, or threaten to do either of
these things, unless all the owners of the accommodations have been
owners of record for five continuous years or more. If an owner of
record is not a natural person, then all persons or entities with an
ownership interest in that entity shall have held that interest for
five continuous years.
   (2)  An owner of accommodations   If an owner
of accommodations files a notice of intent with the public 
 entity to withdraw accommodations under this chapter, and the
owner subsequently acquires a new property containing accommodations,
the owner  shall not withdraw accommodations pursuant to this
chapter, prosecute an action to recover possession of accommodations
pursuant to this chapter, or threaten to do either of these things,
with respect to  accommodations acquired after the date that
owner provided notice of an intent to withdraw accommodations at a
different property.   the later acquired property. 
For purposes of this paragraph, an owner of accommodations includes
any person or entity with an ownership interest in an entity that
owns the accommodations.
   (3) An owner  of record  of accommodations, or
any person or entity with an  equity   ownership
 interest in  the owner of record,   an
entity that owns the accommodations,  shall not act in concert
with a coowner, successor owner, prospective owner, agent, employee,
or assignee,  directly or indirectly,  to circumvent
the limitations of paragraph (1) or (2).
   (4) An owner of accommodations notifying the  city and 
county of an intention to withdraw accommodations from rent or lease
shall identify each person or entity with an ownership interest in
the accommodations, and if any entity is not a natural person,
identify all persons or entities with an ownership interest in that
entity. This information shall not be confidential and shall be
available for public inspection.
   (c) The  city and  county may provide that a person or
entity that violates the provisions described in subdivision (b) is
liable to the tenant or lessee for actual damages, special damages of
not less than two thousand dollars ($2,000) for each violation, and
reasonable attorney fees and costs in an amount fixed by the court.
The remedy provided by this section is not exclusive and shall not
preclude either the tenant or lessee from pursuing any other remedy
provided by law.
  SEC. 2.  The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of the recent significant increase in the evictions under the
Ellis Act in the City and County of San Francisco and the consequent
displacement of long-time residents and severe reduction of
availability of affordable rental housing in San Francisco.