BILL NUMBER: SB 464	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Kuehl

                        FEBRUARY 21, 2007

   An act to amend Sections 7060 and 7060.4 of the Government Code,
relating to rental property.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 464, as introduced, Kuehl. Rental property: public entity
restrictions.
   Existing law 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 specify that this prohibition against local action
only applies with respect to owners of residential real property who
have owned the property for 5 years.
   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. This authorization provides
that the rent control system may establish the date on which the
accommodations are withdrawn from rent or lease 120 days from the
delivery in person or by first-class mail of that notice to the
public entity, unless 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, in which case 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. Existing law specifies that this one-year
extension occurs only if 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 instead specify that the rent control system of a
public entity may require that the one-year extension applies to all
tenancies in the applicable accommodations if a tenant or lessee who
is at least 62 years of age or disabled has lived in the
accommodations for at least one year prior to the delivery of notice
to a public entity and gives the required 60-day notice to the owner.
This bill would require an owner in these circumstances to notify
all tenants of the one year extension. This bill would make
conforming changes to related provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
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   A  public entity, as
defined in Section 811.2, shall  not  , 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)  (1)    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 
    (2)     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   any  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 pursuant to subdivision
(a), then the date of withdrawal of the accommodations  of
that tenant or lessee  shall be extended to one year after
the date of delivery of that notice to the public entity, provided
that  the   a  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   tenancies  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 after date of delivery to the
public entity of the notice of intent to withdraw, subject to
paragraphs (1) and (2).  
   (4) 
    (3)  Within 30 days of the notification by  the
  a  tenant or lessee to the owner of his or her
entitlement to an extension, the owner shall give written notice to
the public entity  and all other tenants  of  the
  a  claim that the tenant or lessee is entitled to
stay in their accommodations for one year after date of delivery to
the public entity of the notice of intent to withdraw. 
   (5) 
    (4)  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)  
tenants that the date of withdrawal has been extended for one year
 .
   (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  to be  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 date of withdrawal has been extended to one year pursuant
to subdivision (b).  
   (3) 
    (4)  The amount of rent the owner specified in the
notice to the public entity. 
   (4) 
    (5)  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 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 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.