BILL NUMBER: AB 781 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 26, 2005
INTRODUCED BY Assembly Member Leno
FEBRUARY 18, 2005
An act to amend Section 7060 Sections 7060
and 7060.4 of the Government Code, relating to rental
property.
LEGISLATIVE COUNSEL'S DIGEST
AB 781, as amended, Leno. Rental property.
Existing law authorizes, subject to specified provisions, any
public entity that has in effect any system of rent control to
require the owner to notify the entity of an intention to withdraw
those accommodations from rent or lease, the notice to contain
specified information, and the owner to record with the county
recorder a memorandum summarizing the provisions of the notice and a
certification that actions have been initiated as required by law to
terminate any existing tenancies. Existing law sets the date on which
the accommodations are withdrawn from rent or lease at 120 days from
the delivery in person or by first-class mail of that notice to the
public entity except if the tenant or lessee is at least 62 years of
age or disabled and has lived in his or her accommodations for at
least one year prior to the date of delivery to the public entity of
the notice of intent to withdraw, then the date of withdrawal of the
accommodations of that tenant or lessee is required to be extended to
one year after the date of delivery of that notice to the public
entity, provided that the tenant or lessee gives written notice of
his or her entitlement to an extension to the owner within 60 days of
the date of delivery to the public entity of the notice of intent to
withdraw.
This bill would change the exception for the tenant or lessee who
is at least 62 years of age or disabled and has lived in his or her
accommodations for at least one year prior to the date of delivery to
the public entity of the notice of intent to withdraw so that it
would apply instead to a tenant or lessee who is at least 62 years of
age or disabled and has lived in those accommodations for at least 5
years prior to the date of delivery to the public entity of the
notice of intent to withdraw and would extend the date of withdrawal
of the accommodations of that tenant or lessee to 5 years after the
date of delivery of that notice to the public entity provided that
the tenant or lessee gives the owner written notice of this
entitlement as required by existing law.
Under the Ellis Act, public entities generally are prohibited from
adopting any statute, ordinance, or regulation, or taking any
administrative action, to compel the owner of residential real
property to offer or to continue to offer accommodations, as defined,
in the property for rent or lease.
This bill would limit this prohibition to owners of residential
real property who have owned the property for 5 years.
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 of the Government Code is amended to read:
7060.
(a) No public entity, as defined in Section 811.2, which has
in effect any control or system of control on the price at which
accommodations are offered for rent or lease, shall, by
statute, ordinance, or regulation, or by administrative action
implementing any statute, ordinance, or regulation, compel the owner
of any residential real property who has owned the property
for five years to offer, or to continue to offer,
accommodations in the property for rent or lease, except for
guestrooms or efficiency units within a residential hotel, as defined
in Section 50519 of the Health and Safety Code, if the residential
hotel meets all of the following conditions:
(1) The residential hotel is located in a city and county, or in a
city with a population of over 1,000,000.
(2) The residential hotel has a permit of occupancy issued prior
to January 1, 1990.
(3) The residential hotel did not send a notice of intent to
withdraw the accommodations from rent or lease pursuant to
subdivision (a) of Section 7060.4 that was delivered to the public
entity prior to January 1, 2004.
(b) For the purposes of this chapter, the following definitions
apply:
(1) "Accommodations" means either of the following:
(A) The residential rental units in any detached physical
structure containing four or more residential rental units.
(B) With respect to a detached physical structure containing three
or fewer residential rental units, the residential rental units in
that structure and in any other structure located on the same parcel
of land, including any detached physical structure specified in
subparagraph (A).
(2) "Disabled" means a person with a disability, as defined in
Section 12955.3 of the Government Code.
SEC. 2. Section 7060.4 of the
Government Code is amended to read:
7060.4.
(a) Any public entity which, by a valid exercise of its police
power, has in effect any control or system of control on the price at
which accommodations are offered for rent or lease, may require by
statute or ordinance, or by regulation as specified in Section
7060.5, that the owner notify the entity of an intention to withdraw
those accommodations from rent or lease and may require that the
notice contain statements, under penalty of perjury, providing
information on the number of accommodations, the address or location
of those accommodations, the name or names of the tenants or lessees
of the accommodations, and the rent applicable to each residential
rental unit.
Information respecting the name or names of the tenants, the rent
applicable to any residential rental unit, or the total number of
accommodations, is confidential information and for purposes of this
chapter shall be treated as confidential information by any public
entity for purposes of the Information Practices Act of 1977 (Chapter
1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division
3 of the Civil Code). A public entity shall, to the extent required
by the preceding sentence, be considered an "agency," as defined by
subdivision (d) of Section 1798.3 of the Civil Code.
(b) The statute, ordinance, or regulation of the public entity may
require that the owner record with the county recorder a memorandum
summarizing the provisions, other than the confidential provisions,
of the notice in a form which shall be prescribed by the statute,
ordinance, or regulation, and require a certification with that
notice that actions have been initiated as required by law to
terminate any existing tenancies. In that situation, the date on
which the accommodations are withdrawn from rent or lease for
purposes of this chapter is 120 days from the delivery in person or
by first-class mail of that notice to the public entity. However, if
the tenant or lessee is at least 62 years of age or disabled
, and has lived in his or her accommodations for at least
one year five years prior to the date
of delivery to the public entity of the notice of intent to withdraw
pursuant to subdivision (a), then the date of
withdrawal of the accommodations of that tenant or lessee shall be
extended to one year five years after
the date of delivery of that notice to the public entity, provided
that the tenant or lessee gives written notice of his or her
entitlement to an extension to the owner within 60 days of the date
of delivery to the public entity of the notice of intent to withdraw.
In that situation, the following provisions shall apply:
(1) The tenancy shall be continued on the same terms and
conditions as existed on the date of delivery to the public entity of
the notice of intent to withdraw, subject to any adjustments
otherwise available under the system of control.
(2) No party shall be relieved of the duty to perform any
obligation under the lease or rental agreement.
(3) The owner may elect to extend the date of withdrawal on any
other accommodations up to one year five
years after date of delivery to the public entity of the notice
of intent to withdraw, subject to paragraphs (1) and (2).
(4) Within 30 days of the notification by the tenant or lessee to
the owner of his or her entitlement to an extension, the owner shall
give written notice to the public entity of the claim that the tenant
or lessee is entitled to stay in their accommodations for
one year five years after date of delivery to the
public entity of the notice of intent to withdraw.
(5) Within 90 days of date of delivery to the public entity of the
notice of intent to withdraw, the owner shall give written notice to
the public entity and the affected tenant or lessee of the owner's
election to extend the date of withdrawal and the new date of
withdrawal under paragraph (3).
(c) The statute, ordinance, or regulation of the public entity
adopted pursuant to subdivision (a) may also require the owner to
notify any tenant or lessee displaced pursuant to this chapter of the
following:
(1) That the public entity has been notified pursuant to
subdivision (a).
(2) That the notice to the public entity specified the name and
the amount of rent paid by the tenant or lessee as an occupant of the
accommodations.
(3) The amount of rent the owner specified in the notice to the
public entity.
(4) Notice to the tenant or lessee of his or her rights under
paragraph (3) of subdivision (b) of Section 7060.2.
(5) Notice to the tenant or lessee of the following:
(A) If the tenant or lessee is at least 62 years of age or
disabled , and has lived in his or her
accommodations for at least one year five
years prior to the date of delivery to the public entity of the
notice of intent to withdraw, then tenancy shall
be extended to one year five years
after date of delivery to the public entity of the notice of intent
to withdraw, provided that the tenant or lessee gives written notice
of his or her entitlement to the owner within 60 days of date of
delivery to the public entity of the notice of intent to withdraw.
(B) The extended tenancy shall be continued on the same terms and
conditions as existed on date of delivery to the public entity of the
notice of intent to withdraw, subject to any adjustments otherwise
available under the system of control.
(C) No party shall be relieved of the duty to perform any
obligation under the lease or rental agreement during the extended
tenancy.
(d) The statute, ordinance, or regulation of the public entity
adopted pursuant to subdivision (a) may also require the owner to
notify the public entity in writing of an intention to again offer
the accommodations for rent or lease.