BILL NUMBER: AB 1171 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JANUARY 4, 2010
AMENDED IN ASSEMBLY APRIL 13, 2009
INTRODUCED BY Assembly Member Ammiano
FEBRUARY 27, 2009
An act to amend Section Sections 7060 and
7060.4 of the Government Code, relating to rental property.
LEGISLATIVE COUNSEL'S DIGEST
AB 1171, as amended, Ammiano. Rental property: public
entity restriction. property.
(1) 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 in the
property for rent or lease. The act defines accommodations subject to
the act to mean either residential rental units in any detached
physical structure containing 4 or more residential rental units or,
with respect to a detached physical structure containing 3 or fewer
residential rental units, the residential rental units in that
structure and in any other structure located on the same parcel of
land.
Existing law declares that it is the intent of the Legislature in
enacting the Ellis Act to supersede any holding, or portion of the
holding, of a specified case, to the extent that the holding, or
portion of the holding, conflicts with this chapter, so as to permit
landlords to go out of business.
This bill would define, for purposes of the act, "to go out of
business" to mean to discontinue in the business or occupation of
being a landlord.
Existing
(2) 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establish the date on which the accommodations are withdrawn from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, as applicable 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: 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, shall,
by statute, ordinance, or regulation, or by administrative action
implementing any statute, ordinance or regulation, compel the owner
of any residential real property 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.
(3) "To go out of business" means to discontinue in the business
or occupation of being a landlord.
SECTION 1. 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.
(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 (b) 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 that 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
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 every tenant or lessee shall be
extended to one year after the date of delivery of that notice to the
public entity, provided that 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 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) Within 30 days of the notification by a
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 and all other tenants and lessees of
a the 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.
(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 tenants
to all tenants and lessees that the date of withdrawal has been
extended to 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).
(4)
(3) The amount of rent the owner specified in the notice
to the public entity.
(5)
(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 every 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 all tenancies 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 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.
(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.