House of Origin Deadline Nears … A Time When Sneaky
Things Can Happen
June 2nd is the deadline for both the Assembly and
Senate to pass bills introduced in the respective Houses this
year. A total of 2,661 bills have been introduced this year,
and approximately 1,000 of them have made it out of policy and
fiscal committees. These remaining bills must be passed by
June 2nd or they will be either defeated or turned
into what is known as “two-year” bills.
State Budget Deficit is at $31.5 Billion, Could Climb
Higher
Last Friday, the Governor released his revised State Budget, and
the results were not surprising to many. When the Governor
released his initial budget proposal in January, the budget
deficit was approximately $22 billion. That figure grew to
approximately $31.5 billion in his revised budget document, but
the Legislative Analyst’s Office expects the structural deficit
to reach $41 billion by the 2026-27 budget year if the Governor’s
May revision is adopted as proposed.
The Legislature has been very busy this year passing lots of
bills and spending lots of money, but that could all change next
week. The Governor is expected to release his revised State
Budget blueprint on Friday. Hundreds of bills await action after
being placed on the so-called Suspense File in the Assembly and
Senate Appropriations Committees.
Over the last few weeks, WMA’s legislative team worked to stop
two bills for the year, Assembly Bill 22 (Gipson, D-Los Angeles)
and Assembly Bill 919 (Kalra, D-San Jose).
When Assembly Bill 22 was introduced, the measure would have
extended Mobilehome Residency Law protections to recreational
vehicles parked in manufactured housing communities to provide
positive equity for depreciating assets.
Assembly Bill 1035 – Statewide Rent Control Dead for
Year
Assembly Bill 1035 (Muratsuchi, D – Torrance) that would have set
up statewide rent control for manufactured housing communities is
now officially dead for the year. Thank you to our members,
industry partners, and our legal team who helped defeat this
legislation for the year.
Senate Bill 567 Amended. Referred to Appropriations
Committee
And what a week it’s been. Committees are up and running,
and WMA has had several significant successes.
STATEWIDE RENT CONTROL BILL HELD IN COMMITTEE
Assembly Bill 1035 (Muratsuchi, D-Torrance), the most existential
threat to our industry in recent history that would require
statewide rent control for mobilehome parks has been held in
committee and will not be heard this year.
Legislative Committees Gearing Up – Assembly Bill
1035 Being Heard on April 19th
Back from its Spring Recess last week, the Legislature’s
committees are in full gear in advance of a May 5th
deadline to hear non fiscal bills and report them to the Floor.
The first meeting of the Assembly Housing and Community
Development Committee met yesterday, and three bills of interest
to WMA were heard and voted on. Two bills were opposed by
WMA, and one was supported. The votes for the two bills
opposed by WMA were disappointing, but not surprising.
Joint Legislative Audit Committee Meeting March
22nd
The Joint Legislative Audit Committee (JLAC) will meet on March
22nd to make a decision about an audit request
submitted by Senator Kelly Seyarto (R-Murrieta) to have the
California State Auditor report on the Mobilehome Residency Law
Protection Program (MRLPP).
Committees are starting to ramp up in the State Capitol as
legislators begin the process of vetting over 2,600 bills that
have been introduced. With a deadline of April
28th for bills that have a fiscal impact and May
5th to hear and report nonfiscal bills to the full
Assembly and Senate, committees will be very busy for the next
couple of months.
As you may know, WMA and Sandalwood Estates, LLC, filed a lawsuit
against Governor Gavin Newsom and Attorney General Rob Bonta in
their official capacities in late December for declaratory and
injunctive relief to overturn Assembly Bill 2782 that eliminated
the right of parkowners with long term leases to be exempt from
local rent control.
As expected, the Attorney General filed a motion this week to
dismiss the lawsuit that was filed in Superior Court. A hearing
on this motion will be held on May 25, 2023.
This Friday is the deadline for legislators to introduce their
bills for 2023, and there have been 1,766 bills introduced –
up from the 947 bills reported in last week’s update.
By Friday, it is anticipated that more than 2,000 bills will have
been introduced and WMA staff is currently in discussions with
several legislators who have either introduced or may introduce
legislation affecting the manufactured housing communities
industry.
Bill Introductions Increase – Deadline Approaching Next
Week
February 17th is the deadline for bills to be
introduced, and the Legislative Counsel’s office is currently
working to still draft over 1,000 legislative proposals submitted
by Senators and Assemblymembers on a wide array of
issues. WMA recently learned that more than 10,000
legislative ideas were submitted by legislators, but many of them
have fallen by the wayside.
February 17th is the deadline for bills to be
introduced, and the Legislative Counsel’s office is currently
working to draft over 2,000 legislative proposals submitted by
Senators and Assemblymembers on a wide array of issues. So
far, there have been 663 bills introduced, but this number will
significantly increase over the coming weeks. To view a
comprehensive list of bills introduced, please click on the
following link:
The Legislature is quickly gearing up to handle budget deficits,
and a lot of discussion this week has focused on a new proposal
contained in Assembly Bill 259 to create a global wealth tax.
Sponsored by Assemblymember Alex Lee (D-San Jose), his measure
would add a 1.5% tax on California residents with a global net
worth of more than $1 billion. A 1% tax would be imposed on
residents with a global net worth of more than $50 million.
To read AB 259, please click on the following link:
As California braces for another week of rain storms, the
Governor yesterday released his first draft of the 2023-24 State
Budget. California faces an immediate shortfall of at least $22
billion, but adjustments due to prior year shortfalls put the
figure closer to $41 billion.
The Legislative Analyst’s Office (LAO) suggests that the deficit
could reach $50 billion in a recession environment. To view
the LAO report, please click on the following link:
The Legislature is back in session and heading into its first
year of the two-year session that will pose many challenges to
the manufactured housing industry.
The Assembly is now comprised of 62 Democrats and 18
Republicans. There are 24 new Assemblymembers who will be
termed out of office in 2034 since they have 12 years to serve in
the Legislature. Of these, there are eight Republicans and
16 Democrats. Among the Democrats, ten of them are already
aligned with the Moderate Democrat Caucus, bringing that Caucus
up to roughly 23 members.
State lawmakers have officially adjourned marking the end of the
2021-2022 Legislative Session. Over the last two years, 4,476
bills were introduced by state legislators. This figure
does not include various resolutions or Constitutional
Amendments.
AFTER SUSPENSE FILE, THE STAGE IS SET FOR FINAL WEEKS OF
SESSION
Last week, the Assembly and Senate dispensed with their
respective “Suspense” Files, and the stage is now set for the
final weeks of the Legislative Session which will conclude by
midnight on Wednesday, August 31st.
This week is pivotal in the Legislature as both the Senate and
Assembly Appropriations Committees are set to release hundreds of
spending bills from the so-called “Suspense File” that contain
significant fiscal impacts to the State Budget.
The Legislature came back into town this week after a month of
recess, and the frenetic race to the finish line is now on as the
Senate and Assembly will adjourn for the year by midnight on
August 31st.
Over the month of July, WMA has worked on remaining bills
affecting the mobilehome park industry.
Senate Bill 869, authored by Senator Connie Leyva, will be heard
in Housing and Community Development Committee on Wednesday, June
29th. SB 869 would require at least one person per
mobilehome park to receive appropriate training of at least 16
hours during the initial year and at least 6 hours of follow-up
training each year thereafter on rules and regulations for the
park. WMA has been a strong opponent of this measure, and the
full text of the current bill can be found at:
WATER RATE CALCULATION CHANGE IN LAW ALERT, FALLOUT FROM
AB 1061 (LEE)
The recently enacted AB 1061 (2021) amended Civil Code §798.40
for those mobile home parks (MHPs) that provide water to
submetered tenants and bill for water separately from rent. All
master-metered MHP customers served by a municipality or a mutual
water company are subject to this law. (AB 1061 does not apply to
master-metered (MM) MHPs supplying water to submetered tenants
when that MM MHP purchases its supply from a CPUC-regulated water
company.)
RENT CONTROL BILL FAILS DEADLINE, SHELVED FOR THE
YEAR
We are pleased to report that AB 2240 by Assemblymember Al
Muratsuchi (Democrat, Torrance) failed to meet the May
6th deadline to pass nonfiscal bills to their
respective floors and is dead for the year. AB 2240 contained
intent language affecting rent control protections. WMA formally
opposed and engaged in policy discussions on the bill. This is a
welcome, positive development for the industry.
UPDATE ON MANAGEMENT MEETING BILL, MEASURE TO REMOVE RENT
CONTROL EXEMPTION
WMA continues to actively engage in discussions with key
legislators to address remaining concerns regarding AB 2031
(Lee), the park management meeting requirement bill as well as SB
940 (Laird), which removes the rent control exemption for the new
construction of spaces in local rent control ordinances.
Both bills are poised to be brought up on the Assembly and Senate
floors, respectively.
NEWLY SIGNED LEGISLATION EXTENDS EVICTION MORATORIUM
THROUGH JUNE 30, 2022
The Legislature passed and the Lieutenant Governor signed a
COVID-19 eviction moratorium through June 30, 2022, but only for
tenants whose applications for rental assistance have been
submitted on or before March 31, 2022.
BILL TO EXTEND EVICTION MORATORIUM FAST-MOVING THROUGH
LEGISLATURE
As members are aware, the eviction moratorium is currently set to
expire this Thursday, March 31, 2022. However, newly amended
legislation would extend this rent relief protection by an
additional three months.
The City of Chula Vista has begun the process to create a Tenant
Protection Ordinance. These tenant protection ordinances, which
impact all landlords, have become popular in local jurisdictions
as local eviction moratoriums begin to phase out.
In the case of Chula Vista, the proposed ordinance provides just
cause protections, Ellis Act restrictions, enhanced relocation
benefits, and, the most harmful to mobilehome park owners, it
creates a cause of action for claims of harassment of tenants.
The draft language is overly vague, one-sided, and
punitive.
DON’T WAIT! HELP WMA DEFEAT HARMFUL MANAGER TRAINING
BILL
WMA needs your help! SB 869 (Leyva), the state-led, manager
training and certification bill, will be heard in the Senate
Housing Committee tomorrow. As currently drafted, SB 869 would
require on-site park managers to complete 18 hours of mandatory
training per year. It is not too late to make your voice heard
and let your state senator know that this bill is a solution in
search of a problem and is NOT NECESSARY.
WMA LEGISLATIVE COMMITTEE ADOPTS FORMAL BILL POSITIONS ON
NOTABLE LEGISLATION
The WMA Legislative Committee reviewed all notable legislation
that directly affects the industry and recommended adopting
formal positions on those key bills that have been introduced for
2022. The corresponding legislative bill chart shows the
formal positions that WMA has taken on those critical measures.
Beginning in April, this chart will be featured monthly in the
WMA Reporter.
WMA SPONSORS LEGISLATION ADDRESSING RESIDENT VIOLATIONS,
PERMITS TO OPERATE (PTO)
Assemblymember Carlos Villapudua (Democrat, Stockton) recently
introduced AB 2002 on behalf of WMA. This bill addresses the
procedure by which the Housing and Community Development
Department (HCD) or responsible Local Enforcement Agency (LEA)
issue citations that may cause a park to lose its Permit to
Operate (PTO) when resident violations go uncorrected.
UNIVERSAL HEALTH CARE BILL, OTHERS FAIL TO PASS STATE
LEGISLATURE
Numerous controversial, two-year bills failed to pass the
legislature by January 31 and are dead for the legislative
session, including AB 1400 by Assemblymember Ash Kalra, a San
Jose Democrat. The “Guaranteed Health Care For All” bill would
have established universal health care in California. Democrats
lacked the votes needed to pass the measure. The bill drew
opposition from business groups citing the estimated costs – and
potential tax increases on businesses – needed to fund the
system.
Monday was the deadline to pass all two-year or bills carried
over from last year. Those remaining bills – 214 in total -
that failed to meet Monday’s deadline are now dead for the
legislative session. February 18 is the bill introduction
deadline. WMA staff has begun identifying newly introduced
measures of interest and the WMA Legislative Committee will
subsequently adopt formal positions on all key, statewide
legislation.
Bill introduction remains steady as we approach January 31, the
legislative deadline for all two-year or holdover bills to pass,
or they are considered dead for the
session.
SPECIAL PRIMARY ELECTIONS SCHEDULED TO FILL FOUR ASSEMBLY
VACANCIES
Last Friday signaled the end of another tumultuous legislative
session amidst the backdrop of the ongoing COVID-19 pandemic and
wildfires that have ravaged the state. Before adjourning, members
engaged in rigorous debate before advancing legislation on
various issues ranging from police reform to wildfire mitigation.
Assembly Bill 861 (Bennett), the subleasing bill, remains poised
to be soon brought up on the Senate floor.
Recent amendments to AB 861 (Bennett) exempt mobilehome parks
owned by non-profit entities from the bill’s provisions. WMA
remains opposed and maintains that this is an issue in search of
a problem since the proponents have at no time provided concrete
examples justifying the need for statewide legislation.
SUBLEASING BILL STILL AWAITING ACTION ON SENATE
FLOOR
Assembly Bill 861 (Bennett) continues to await action on the
Senate Floor. WMA opposes this measure that would prevent
parkowners from leasing out homes they own in their parks unless
they allow other tenants to sublease their homes.
Amendments to this legislation are expected to exempt certain
parks operating as non-profit entities; however, the bill has not
yet been amended.
EMOTIONAL SUPPORT ANIMAL BILL MOVES BACK TO STATE
ASSEMBLY
LEGISLATURE RETURNS FOLLOWING MONTH-LONG SUMMER
RECESS
Both legislative houses resumed business on Monday following a
month-long summer recess. August 27 is the deadline to pass all
fiscal bills to the Assembly and Senate floors. September 10 is
the deadline to pass ALL bills to the Governor and marks
the end of the legislative session.
AB 889 (GIPSON) REPORTING REQUIREMENT BILL FAILS PASSAGE,
HELD IN POLICY COMMITTEE
AB 889 (Gipson) failed to gather the votes needed to pass the
Senate Judiciary Committee late yesterday. While the bill was
granted reconsideration, the Senate Judiciary Committee will not
meet again this year. Therefore, AB 889 is effectively dead for
the 2021 legislative session.
As amended, AB 889 requires corporate landlords to report owners
to the Secretary of State.
SUBLEASING BILL RESCHEDULED FOR JUNE 15 COMMITTEE HEARING
The Senate Judiciary Committee was set to hear AB 861 (Bennett),
the harmful subleasing bill, yesterday; however, due to mounting
concerns raised by both WMA and the California Mobilehome
Parkowners Alliance (CMPA), the bill has since been rescheduled
and will be heard on Tuesday, June 15.
RENT CONTROL, WATER SUBMETER BILLS REFERRED TO SENATE
JUDICIARY COMMITTEE
Article Provided Courtesy of the California Apartment
Association (CAA) – Gov. Newsom today announced his intent
to pay rental housing providers 100% of rent that’s gone unpaid
because of COVID-19.
SENATOR CONNIE LEYVA’S RESTRICTIVE RENT RELIEF BILL SENT
TO APPROPRIATIONS SUSPENSE FILE
WMA is pleased to announce that Senator Connie Leyva’s SB 64 was
placed on the Senate Appropriations Committee suspense file
yesterday. Those bills identified as having significant cost to
the state are sent to the suspense file.
The bill was recently amended to remove rental repayment
provisions addressed with prior legislation and narrowed to
prevent the ability of parkowners to issue 7-day notice
violations.
