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SB-395 Leases: notice of termination or rent increase: statewide database.(2023-2024)



Current Version: 04/10/23 - Amended Senate

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SB395:v97#DOCUMENT

Amended  IN  Senate  April 10, 2023
Amended  IN  Senate  March 20, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 395

Introduced by Senator Wahab

February 09, 2023

An act to add Section 1946.9 to the Civil Code, relating to tenancy.


LEGISLATIVE COUNSEL'S DIGEST


SB 395, as amended, Wahab. Leases: notice of termination or rent increase: statewide database.

Existing law establishes the Department of Housing and Community Development, and sets forth its powers and duties as the principal state department responsible for coordinating federal-state relationships in housing and community development and for implementing the California Statewide Housing Plan.

The California Constitution designates the Secretary of State as one of the constitutional officers of the State of California. Under existing law, the Secretary of State performs extensive duties, including, among others, receiving and filing various documents.
Existing law specifies various terms and conditions that apply to all persons who hire dwelling units located within this state, including tenants, lessees, boarders, lodgers, and others. Existing law regulates evictions and provides that a tenant who remains in possession of a property after the term of the tenant’s lease expires, or who fails to pay rent, is guilty of unlawful detainer.
This bill would, beginning January 1, 2025, require a landlord to file with the department office of the Secretary of State a copy of any notice of termination or notice of rent increase within 10 days of serving the notice on the tenant, subject to specified requirements. The bill would make failure to file the notice an affirmative defense to a cause of action for unlawful detainer.
This bill would, by January 1, 2025, require the department office to create and maintain a publicly available, searchable database called the Statewide Rental Reporting Database to, among other things, compile all those notices received from landlords and to adopt regulations for those purposes, as specified. The bill would authorize cities, counties, or city and counties to receive these filings from landlords locally, as the state-designated recipient, and to share the data with the department. office.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 This law may be cited as the “Transparency in Rental Reporting Act.”

SEC. 2.

 Section 1946.9 is added to the Civil Code, to read:

1946.9.
 (a) (1) Beginning January 1, 2025, a landlord shall file with the department office a copy of any notice of termination or notice of rent increase within 10 days of serving the notice on the tenant. A notice shall be sent for each dwelling unit to which the termination of tenancy or the rent increase applies. applies, and may be submitted in person, via an electronic platform, or by mail with a postmark within 10 days of the original notice date.
(2) For the purposes of this section “department” section, “office” means the Department of Housing and Community Development. office of the Secretary of State.
(b) A notice of termination filed with the department office shall include all of the following information:
(1) The address of the rental unit, including any applicable unit number, to which the notice applies.
(2) The name of the property owner of the rental unit and the type of property owner, including whether the property owner is an individual, corporate, nonprofit, or other entity. unit.

(3)The type and length of the term of the tenancy.

(4)

(3) Any alleged reason for the termination of the tenancy, as permitted under Section 1946.2, as that section read on January 1, 2023.
(c) A notice of rental increase filed with the department office shall include all the following information:
(1) The address of the rental unit, including any applicable unit number, to which the notice applies.
(2) The name of the property owner of the rental unit and the type of property owner, including whether the property owner is an individual, corporate, nonprofit, or other entity. unit.

(3)The type and length of the term of the tenancy.

(4)

(3) The rental amount currently agreed to for the rental unit.

(5)

(4) The rental amount sought by the rental increase, and the percent increase from the current rental amount to the rental amount sought by the rental increase.

(6)

(5) A statement that the rent increase complies with applicable state and local laws, including Section 1947.12, as that section read on January 1, 2023.
(d) Failure to file a notice under subdivision (a) by the landlord shall be an affirmative defense to a cause of action for unlawful detainer.
(e) By January 1, 2025, the department office shall create and maintain a publicly available, searchable database, to be known as the Statewide Rental Reporting Database, that shall do all of the following:
(1) Compile all notices received according to subdivisions (a) and (g).

(2)If available, identify the specific rental properties for which notices were issued and the types of property owner, including, but not limited to, individual, corporate, or nonprofit property owners.

(3)

(2) Keep the notices submitted to the database for at least two years.

(4)Anonymize information related to terminations of tenancy to prevent the identification of any particular tenant.

(3) Make publicly available and searchable the volume of termination of tenancy notices by ZIP Code and rates of rental increases searchable by address and applicable unit number.
(f) By January 1, 2025, the department office shall adopt regulations, in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), regulations for both of the following purposes:
(1) Processing the termination notices and rental increase notices, including the creation of an internet webpage or online portal that is easily accessible to the public and through which reports may be received and processed.
(2) The creation of a notice that local governments may use to inform landlords about the requirements of this section and the methods through which landlords may file any termination or rental increase notices in person, via mail, or via internet website or online portal pursuant to subdivision (g).
(g) Any city, county, or city and county may serve as a state-designated recipient of the notices described in this section. A landlord may opt to file the notices with their local jurisdiction, if available, which shall satisfy the reporting requirements under this section if the notice is filed within 10 days of the landlord serving the notice on the tenant. A local jurisdiction that accepts notices shall upload and share that data with the department. office.

(h)This section shall not be construed to supersede any ordinance, resolution, or other law passed by a city, county, or city and county that does not conflict with this section.

(h) To the extent there is a conflict between this section and any ordinance, resolution, or other law passed by a city, county, or city and county, the provisions of this section shall apply, unless the law of the city, county, or city and county provides greater tenant protection.