BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                   SB 825|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                              UNFINISHED BUSINESS


          Bill No:  SB 825
          Author:   Corbett (D)
          Amended:  8/6/12
          Vote:     21

           
           ASSEMBLY FLOOR  :  51-26, 8/9/12 - See last page for vote

          �AB 2610 VOTES:  
            SENATE JUDICIARY COMMITTEE:  5-0, 7/5/12
            SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8]


           SUBJECT  :    Residential tenancies:  foreclosures

           SOURCE :     Author


           DIGEST  :    The contents of this bill dealing with state 
          parks were deleted in the Assembly.  The contents of this 
          bill were in AB 2610 (Skinner) which is on the Senate 
          Floor.  As amended, this bill maintains existing law for 
          six years with respect to notifying tenants of rights when 
          rental property is sold in foreclosure. 

           ANALYSIS  :    Existing law, until January 1, 2013, requires 
          that any notice to quit regarding a housing unit served 
          within one year after a foreclosure sale include a separate 
          cover sheet that contains an additional notice to renters.  
          Existing law sets forth the content of this notice, which 
          provides the tenant with specified information regarding 
          tenants' rights.  Existing law provides that, under certain 
          circumstances, the cover sheet need not be served, as 
                                                           CONTINUED





                                                                SB 825
                                                                Page 
          2

          specified.

          This bill extends the operation of these provisions until 
          December 31, 2019.

           Comments
           
          According to the author, "California enacted important 
          tenant protections which seek to give tenants additional 
          time to search for a new home and move when the unit in 
          which they are living is foreclosed upon.  President Obama 
          likewise recognized the importance of additional time and 
          signed the Protecting Tenants at Foreclosure Act of 2009, 
          requiring that tenants be given 90-days' notice and that 
          fixed-term leases be honored.  Despite the establishment of 
          these important protections, many innocent tenants have 
          received notices to vacate that are unclear and contain 
          different timeframes in which the tenant must vacate the 
          property.  For example, some notices state that the tenants 
          must leave in three, 30, 60, or 90 days.  These multiple 
          and conflicting timeframes - combined with complex legalese 
          - are confusing to tenants.  In addition, some tenants have 
          received a three-day notice to quit that is addressed to 
          the homeowner, but not to the tenant. Innocent tenants do 
          not realize that they must take certain steps to protect 
          their rights.  In other cases, innocent tenants are unaware 
          of their rights under federal law and take the three-day 
          notice to quit at face value and assume that they must 
          leave within three days.  SB 825 will help to protect 
          tenants and ensure that they receive the full benefits of 
          the important protections that have been enacted over the 
          last few years by extending the sunset on important 
          protections put in place by SB 1149 (Corbett, 2010)."  

          This bill continues existing law in effect for an 
          additional six years, consistent with other 
          foreclosure-related measures. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No


           ASSEMBLY FLOOR  : 51-26, 08/09/12
          AYES: Alejo, Allen, Ammiano, Atkins, Beall, Block, 







                                                                SB 825
                                                                Page 
          3

            Blumenfield, Bonilla, Bradford, Brownley, Buchanan, 
            Butler, Campos, Carter, Cedillo, Chesbro, Davis, 
            Dickinson, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, 
            Galgiani, Gatto, Gordon, Hall, Hayashi, Hill, Huber, 
            Hueso, Huffman, Lara, Bonnie Lowenthal, Ma, Mendoza, 
            Mitchell, Monning, Pan, Perea, V. Manuel P�rez, 
            Portantino, Skinner, Solorio, Swanson, Torres, 
            Wieckowski, Williams, Yamada, John A. P�rez
          NOES: Achadjian, Bill Berryhill, Conway, Cook, Donnelly, 
            Beth Gaines, Garrick, Grove, Hagman, Halderman, Harkey, 
            Jeffries, Jones, Knight, Logue, Mansoor, Miller, Morrell, 
            Nestande, Nielsen, Norby, Olsen, Silva, Smyth, Valadao, 
            Wagner
          NO VOTE RECORDED: Charles Calderon, Gorell, Roger Hern�ndez


          RJG:m  8/10/12   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

                                ****  END  ****