Bill Text: CA AB1756 | 2023-2024 | Regular Session | Enrolled

California Assembly Bill 1756

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Committee on Judiciary: judiciary omnibus.

Spectrum: Committee Bill

Status: (Passed) 2023-10-08 - Chaptered by Secretary of State - Chapter 478, Statutes of 2023. [AB1756 Detail]

Download: California-2023-AB1756-Enrolled.html

Enrolled September 14, 2023

Passed IN Senate September 11, 2023

Passed IN Assembly September 12, 2023

Amended IN Senate September 06, 2023

Amended IN Senate September 01, 2023

Amended IN Senate July 10, 2023

Amended IN Senate June 23, 2023

Amended IN Assembly April 12, 2023

Amended IN Assembly March 29, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 1756

Introduced by Committee on Judiciary (Assembly Members Maienschein (Chair), Connolly, Haney, Kalra, Pacheco, Papan, Reyes, and Robert Rivas)

March 02, 2023

An act to amend Sections 6092.5, 17510.9, 17510.95, and 26070.5 of the Business and Professions Code, to amend Sections 1939.23, 2924m, 2982, and 2982.12 of the Civil Code, to amend Sections 430.41, 435.5, 439, 703.150, 704.730, 1161.3, and 1281.98 of, and to amend, repeal, and add Section 664.6 of, the Code of Civil Procedure, to amend Sections 5008.9, 6610.5, and 8610.5 of the Corporations Code, to amend Section 9303 of, and to repeal Section 562 of, the Family Code, to amend Sections 811.9, 905.2, 990.2, 7920.500, 12587, 12587.1, 12591.1, 12599, 12599.1, 12599.2, 12599.3, 12599.6, 12599.8, 12599.9, 12945.21, 26529, 27647, 53214.5, 65965, 68111, 69894.3, and 77210 of, to add Sections 73643, 73953, 74146, 74343, and 74743 of, to repeal Sections 26524 and 27648 of, and to repeal and add Section 69894.4 of, the Government Code, to amend Sections 11488.4, 11488.5, and 25299.52 of the Health and Safety Code, to amend Sections 1458, 2469, and 9765 of, and to amend and renumber Section 16106 of, to add the heading of Article 6 (commencing with Section 16110) to Chapter 1 of Part 4 of Division 9 of the Probate Code, and to amend Section 10850.4 of the Welfare and Institutions Code, relating to state government.

LEGISLATIVE COUNSEL'S DIGEST

AB 1756, Committee on Judiciary. Committee on Judiciary: judiciary omnibus.

(1) Existing law requires the Attorney General to maintain the Registry of Charitable Trusts, a register of charitable corporations, unincorporated associations, and trustees holding property for charitable purposes and fundraisers. Existing law also establishes the Registry of Charitable Trusts Fund in the State Treasury, and directs all registration fees, registration renewal fees, and late fees or other fees paid to the Department of Justice in relation to the Registry of Charitable Trusts be deposited into the fund.

This bill would change the name of the Registry of Charitable Trusts to the Registry of Charities and Fundraisers. The bill would also change the name of the Registry of Charitable Trusts Fund to the Registry of Charities and Fundraisers Fund. The bill would also make conforming changes.

(2) Existing law governs motor vehicle conditional sale contracts, as defined, and requires sellers of motor vehicles to make certain disclosures to buyers. Existing law authorizes a buyer to pay the entire indebtedness under the contract at any time before maturity without penalty, regardless of any contrary contract provision, as provided. Existing law provides for the determination of the outstanding obligation of the buyer if the indebtedness is satisfied before its maturity through surrender of the motor vehicle, repossession of the motor vehicle, redemption of the motor vehicle after repossession, or any judgment, and requires that the buyer’s outstanding obligation be computed as of the date the holder recovers the value of the motor vehicle through disposition thereof or judgment is entered or as of the date the holder takes possession of the motor vehicle, as applicable.

This bill would make a technical change to these provisions relating to the determination of a buyer’s outstanding obligation if the indebtedness is satisfied by surrender of the motor vehicle, repossession of the motor vehicle, redemption of the motor vehicle after repossession, or any judgment.

(3) Existing law governs the offer, sale, provision, or administration, in connection with a motor vehicle conditional sale contract, of a guaranteed asset protection waiver (GAP waiver), defined to mean an optional contractual obligation under which a seller agrees, for additional consideration, to cancel or waive all or part of amounts due on the buyer’s conditional sale contract subject to existing law in the event of a total loss or unrecovered theft of the motor vehicle specified in the conditional sale contract. Existing law also governs the termination of a GAP waiver, including the refund of GAP waiver costs on a termination, to be calculated as prescribed. Under existing law, if the termination occurs later than 30 days after the date the buyer purchased the GAP waiver, the buyer is entitled to a refund of the unearned GAP waiver charges, calculated on a pro rata basis according to a prescribed formula that uses figures relating to the period from the GAP waiver termination date to the original full term date of the conditional sale contract and to the original term of the conditional sale contract. A willful violation of these provisions is a crime.

This bill, if the original full term of the conditional sale contract exceeded the original full term of the GAP waiver as of the date the buyer purchased the GAP waiver, would require in that case a formula that uses figures relating to the period from the GAP waiver termination date to the original full term date of the GAP waiver and to the original term of the GAP waiver. Because a willful violation of this provision would be a crime, this bill would impose a state-mandated local program.

(4) Existing law provides that, in a civil action, before filing a demurrer, motion to strike, or motion for judgment on the pleadings, a party is required to meet and confer, in person or by telephone, with the opposing party to try to resolve the objections or claims that would be raised in the filing.

This bill would permit a party who is required to meet and confer under these provisions to do so by video conference in addition to in person or by telephone.

(5) Existing law authorizes a court, upon a motion, to enter a judgment in pending litigation pursuant to the terms of a settlement if the parties to the litigation stipulate to settle the litigation orally before the court or outside of the presence of the court in a writing that is signed by the parties. Existing law considers a stipulation to settle litigation to be signed by a party if it is signed by that party, an attorney who represents a party, or, if a party is an insurer, an agent who is authorized in writing by the insurer to sign on the insurer’s behalf, except as specified.

This bill would clarify that an insurer may only sign a stipulated agreement under this provision if the insurer is defending and indemnifying a party to the action and the person signing has been authorized, in writing, to do so by the party. Commencing January 1, 2025, the bill would permit a court to enter judgment pursuant to the terms of a settlement as specified. The bill would permit a court, where it has received notice of a conditional settlement from the party seeking affirmative relief, to set an order to show cause as to why the action should not be dismissed. The bill would also authorize the court to retain jurisdiction over the matter after entering judgment based on the settlement under specified circumstances and requires the Judicial Council to make corresponding changes to its forms.

(6) Existing law provides that a specified portion of equity in a homestead, as defined, is exempt from execution to satisfy a debt. Existing law provides that the exemption is the greater of $300,000 or the countywide median sale price of a single-family home in the calendar year prior to the calendar year in which the judgment debtor claims the exemption, not to exceed $600,000. These amounts adjust annually for inflation, as specified.

This bill would delete obsolete provisions which required the Judicial Council to submit to the Legislature, and the Legislature to approve, calculated increases to the homestead exemption every 3 years. The bill would make conforming changes.

(7) Existing law prohibits a landlord, except as specified, from terminating or failing to renew a tenancy based on an act of abuse or violence, as defined, against a tenant, a tenant’s immediate family member, as defined, or a tenant’s household member, as specified. Existing law makes a landlord’s violation of those provisions an affirmative defense to a cause of action for unlawful detainer that is based upon an act of abuse or violence against a tenant, a tenant’s immediate family member, or a tenant’s household member, as specified.

This bill would clarify that provision by providing that a defendant in an unlawful detainer action arising from a landlord’s termination of a tenancy or failure to renew a tenancy based on an act of abuse or violence against a tenant, a tenant’s immediate family member, or a tenant’s household member may raise an affirmative defense, as specified.

(8) Existing law requires the Judicial Council to review its forms that may be used by a party to assert in the responsive pleading, the grounds set forth in the above described provision, as an affirmative defense to an unlawful detainer action and, by January 1, 2024, make any changes to those forms that the council deems necessary to conform them to that provision.

This bill would extend the deadline for making the changes to those forms to January 1, 2025.

(9) Existing law requires the drafting party in an employment or consumer arbitration to pay certain fees and costs during the pendency of an arbitration proceeding, as specified. The arbitration provider is required to provide an invoice for any fees and costs required for the arbitration proceeding to continue to all of the parties of the arbitration.

This bill would require the arbitration provider, once the invoice has been paid, to provide all parties a document that reflects the date on which the invoice was paid.

(10) Existing law authorizes an adult to adopt another adult and a married minor. Existing law prohibits a person from adopting more than one unrelated adult within one year of the person’s adoption of an unrelated adult, except as specified.

This bill would permit a person to adopt more than one unrelated adult within one year of the person’s adoption of an unrelated adult if the court, upon a finding of good cause, permits the adoption. The bill would require an order finding good cause to be in writing or stated on the record.

(11) Existing law requires that the Judicial Council provide representation or defense of specified individuals and the court through county counsel, the Attorney General, or other counsel in certain proceedings. Existing law authorizes, but does not require, the county counsel and the Attorney General to provide representation or defense for the Judicial Council. Existing law also authorizes county counsel and the district attorney to represent judges, as specified.

This bill would specify that the representation or defense provided by the county counsel and the Attorney General would apply to a trial court, judge, subordinate judicial officer, court executive officer, or trial court employee if the Judicial Council requests that assistance. This bill would also clarify the circumstances in which county counsel may represent a superior court or judge thereof if requested by the Judicial Counsel.

(12) Existing law, the Government Claims Act, sets forth the general procedure for claims and actions against public entities and public employees. Existing law requires the payment of a $25 filing fee for filing a claim against the state with the Department of General Services, unless the claimant, among other things, has a monthly income of 125% or less of the current monthly poverty line established by the Secretary of California Health and Human Services, as specified, or is an inmate or resident, as provided, with a balance of $100 or less credited to their trust account within 90 days prior to the date the claim is filed.

This bill would authorize a person whose monthly income is less than $100 above the income of a person whose monthly income is 125% of the current monthly poverty line, as specified, to pay 25% of the difference between their income and 125% of the current monthly poverty line, or an inmate or resident, as provided, with a balance between $100 to $200 credited to their trust account within 90 days prior to the date the claim is filed to pay 25% of the difference between the inmate’s or resident’s balance and $100, instead of the $25 filing fee.The bill would require the poverty line for these purposes to be based on poverty guidelines established by the United States Department of Health and Human Services.

(13) Existing law provides that employees of the superior court in each county having a population of over 2,000,000 shall be entitled to step advancement, vacation, sick leave, holiday benefits and other leaves of absence and other benefits as may directed by rules of the court.

This bill would establish that the benefits, as specified, apply to counties of the first class that contain a population of 4,000,000 and over.

(14) Existing law authorizes expense allowances for actual traveling and necessary expenses incurred by employees and judges, as specified. Existing law authorizes the board of supervisors to assign an automobile in lieu of allowing travel expenses.

This bill would repeal that section and instead only authorize the court to assign an automobile, as specified.

(15) Existing law authorizes the Attorney General or district attorney to file a petition of forfeiture, as specified. Existing law provides that any person claiming an interest in property seized, as specified, may file a claim, as specified.

This bill would specify that these petitions and claims are unlimited civil cases.

(16) Existing law prescribes the salaries and compensation for judges and establishes the Trial Court Employment Protection and Governance Act, which, among other things, governs the authority to regulate court employee classification and compensation, labor relations, employment protection, and retirement. Existing law provides county-specific requirements with respect to the benefits and compensation of municipal court judges and organization of certain municipal courts, and requires parity of benefits between municipal court judges and superior court judges.

Proposition 220, approved by voters at the June 2, 1998, statewide primary election, consolidated the superior and municipal courts, as specified.

This bill would, effective January 1, 2074, repeal those provisions relating to judicial compensation and benefits for specified municipal courts.

(17) Existing law requires the Judicial Council to report to the Legislature the findings of a study measuring court effectiveness in conservatorship cases, as specified, on or before January 1, 2024. Existing law repeals that provision on January 1, 2026.

This bill would instead require the Judicial Council to make that report to the Legislature on or before January 1, 2027, and it would repeal that provision on January 1, 2028.

(18) Existing law establishes procedures for the creation, modification, and termination of a trust, and regulates the administration of trusts by trustees on behalf of beneficiaries. Existing law requires a trustee holding assets subject to a charitable trust to give written notice to the Attorney General at least 20 days before the trustee sells, leases, conveys, exchanges, transfers, or otherwise disposes of all or substantially all of the charitable assets.

This bill would make technical, nonsubstantive changes by renumbering that provision and placing it in a new article.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

This bill would incorporate additional changes to Section 2924m of the Civil Code proposed by AB 1043 to be operative only if this bill and AB 1043 are enacted and this bill is enacted last.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES

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

SECTION 1.

Section 6092.5 of the Business and Professions Code is amended to read:

6092.5.

In addition to any other duties specified by law, the State Bar shall do all of the following:

(a) Promptly notify the complainant of the disposition of each matter.

(b) Notify all of the following of a lawyer’s involuntary enrollment as an inactive licensee and termination of that enrollment, or any suspension or disbarment, and the reinstatement to active license of a suspended or disbarred attorney:

(1) The presiding judge of the superior court in the county where the attorney most recently maintained an office for the practice of law, with a request that the judge notify the judges in the county.

(2) The local bar association, if there is one, in the county or area where the attorney most recently maintained an office for the practice of law.

(3) The appropriate disciplinary authority in any other jurisdiction where the attorney is admitted to practice.

(c) Upon receipt of the certified copy of the record of conviction of a lawyer, as provided by subdivision (c) of Section 6101, promptly forward a certified copy of the judgment of conviction to the disciplinary agency in each jurisdiction in which the lawyer is admitted.

(d) Maintain permanent records of discipline and other matters within its jurisdiction, and compile statistics to aid in the administration of the system, including, but not limited to, a single log of all complaints received, investigative files, statistical summaries of docket processing and case dispositions, transcripts of all proceedings which have been transcribed, and other records as the State Bar or court require to be maintained.

(e) Expunge records of the State Bar as directed by the California Supreme Court.

(f) Pursuant to directions from the California Supreme Court, undertake whatever investigations are assigned to it.

(g) Provide information to prospective complainants regarding the nature and procedures of the disciplinary system, the criteria for prosecution of disciplinary complaints, the client security fund, and fee arbitration procedures.

(h) Inform the public, local bar associations and other organizations, and any other interested parties about the work of the State Bar and the right of all persons to make a complaint.

(i) Make agreements with respondents in lieu of disciplinary proceedings, regarding conditions of practice, further legal education, or other matters. These agreements may be used by the State Bar in any subsequent proceeding involving the lawyer.

SEC. 2.

Section 17510.9 of the Business and Professions Code is amended to read:

17510.9.

(a) A charity engaged in any solicitation or sales solicitation for charitable purposes, that collected more than 50 percent of its annual income and more than one million dollars ($1,000,000) in charitable contributions from donors in this state during the previous calendar year, and that spent more than 25 percent of its annual income on “nonprogram activities,” which is defined as the sum of the expenditures specified in subparagraphs (A), (B), (C), and (D) of paragraph (2) of subdivision (b), shall annually prepare and provide to the Attorney General’s Registry of Charities and Fundraisers three copies of a one-page document that provides the information required by subdivision (b). If the charity is subject to Article 7 (commencing with Section 12580) of Chapter 6 of Part 2 of Division 3 of Title 2 of the Government Code, the document shall be submitted together with the charity’s report required by Section 12586 of the Government Code, and shall provide information consistent with that provided to the registry pursuant to Article 7 (commencing with Section 12580) of Chapter 6 of Part 2 of Division 3 of Title 2 of the Government Code.

(b) The contents of the document required pursuant to subdivision (a) shall be established by the Attorney General in a manner consistent with the procedures set forth in this subdivision and in subdivisions (a) and (b) of Section 12586 of the Government Code, and shall include, at a minimum, all of the following:

(1) Total revenue and contributions received of the charity.

(2) The dollar amount and the percentage of total revenue and charitable contributions allocated to funding each of the following administrative functions:

(A) Total salaries of all persons employed by the charity.

(B) Fundraising.

(D) Overhead and other expenses related to managing and administering the charity.

(E) The salaries of the five highest compensated persons employed by the charity.

(3) The dollar amount and percentage of total revenue and charitable contributions allocated to programs.

(c) Each charity subject to this section shall make available for distribution the document required pursuant to subdivision (a) following a request made in person, by telephone, or by mail. Each request shall be accompanied by a stamped, self-addressed envelope provided by the requester.

(d) The Attorney General shall make available for public review at the Registry of Charities and Fundraisers in Sacramento and in the San Francisco and Los Angeles offices of the Attorney General, the documents provided by charities pursuant to subdivision (a), and shall maintain these documents separately from other documents provided by charities pursuant to Article 7 (commencing with Section 12580) of Chapter 6 of Part 2 of Division 3 of Title 2 of the Government Code.

SEC. 3.

Section 17510.95 of the Business and Professions Code is amended to read:

17510.95.

The Attorney General shall annually publish a report that includes information provided to the Registry of Charities and Fundraisers pursuant to Section 17510.9 for all charities reporting under that section. The report shall be made available to public main libraries in the state at no cost and to any person upon request and the payment of a reasonable fee to cover the costs of publication and distribution.

SEC. 4.

Section 26070.5 of the Business and Professions Code is amended to read:

26070.5.

(a) The Bureau of Cannabis Control shall, by January 1, 2020, investigate the feasibility of creating one or more classifications of nonprofit licenses under this section. The feasibility determination shall be made in consultation with the relevant licensing agencies and representatives of local jurisdictions which issue temporary licenses pursuant to subdivision (b). The Bureau of Cannabis Control shall consider factors, including, but not limited to, the following:

(1) Should nonprofit licensees be exempted from any or all state taxes, licensing fees, and regulatory provisions applicable to other licenses in this division?

(2) Should funding incentives be created to encourage others licensed under this division to provide professional services at reduced or no cost to nonprofit licensees?

(3) Should nonprofit licenses be limited to, or prioritize those, entities previously operating on a not-for-profit basis primarily providing whole-plant cannabis and cannabis products and a diversity of cannabis strains and seed stock to low-income persons?

(b) Any local jurisdiction may issue temporary local licenses to nonprofit entities primarily providing whole-plant cannabis and cannabis products and a diversity of cannabis strains and seed stock to low-income persons so long as the local jurisdiction does all of the following:

(1) Confirms the license applicant’s status as a nonprofit entity registered with the California Attorney General’s Registry of Charities and Fundraisers and that the applicant is in good standing with all state requirements governing nonprofit entities.

(2) Licenses and regulates any such entity to protect public health and safety, and so as to require compliance with all environmental requirements in this division.

(3) Provides notice to the department of any such local licenses issued, including the name and location of any such licensed entity and all local regulations governing the licensed entity’s operation.

(4) Certifies to the department that any such licensed entity will not generate annual gross revenues in excess of two million dollars ($2,000,000).

(c) Temporary local licenses authorized under subdivision (b) shall expire after 12 months unless renewed by the local jurisdiction.

(d) The department may impose reasonable additional requirements on the local licenses authorized under subdivision (b).

(e) (1) New temporary local licenses shall not be issued pursuant to this section after the date the Bureau of Cannabis Control determines that creation of nonprofit licenses under this division is not feasible, or if the Bureau of Cannabis Control determines that creation of nonprofit licenses under this division is feasible, after the date a licensing agency commences issuing state nonprofit licenses.

(2) If the Bureau of Cannabis Control determines that creation of nonprofit licenses under this division is feasible, no temporary license issued under subdivision (b) shall be renewed or extended after the date on which a licensing agency commences issuing state nonprofit licenses.

(3) If the Bureau of Cannabis Control determines that creation of nonprofit licenses under this division is not feasible, the Bureau of Cannabis Control shall provide notice of this determination to all local jurisdictions that have issued temporary licenses under subdivision (b). The department may, in its discretion, permit any such local jurisdiction to renew or extend on an annual basis any temporary license previously issued under subdivision (b).

SEC. 5.

Section 1939.23 of the Civil Code is amended to read:

1939.23.

(a) A rental company shall not use, access, or obtain any information relating to the renter’s use of the rental vehicle that was obtained using electronic surveillance technology, except in the following circumstances:

(1) (A) When the equipment is used by the rental company only for the purpose of locating a stolen, abandoned, or missing rental vehicle after one of the following:

(i) The renter or law enforcement has informed the rental company that the vehicle is missing or has been stolen or abandoned.

(ii) Until January 1, 2028, and for purposes of this clause, if the rental vehicle has not been returned following 72 hours after the contracted return date or by 72 hours following the end of an extension of that return date, the rental company may activate electronic surveillance technology. The rental company shall provide notice of activation of the electronic surveillance technology 24 hours prior to activation, by telephone and electronically pursuant to Section 1939.22, unless the renter has not provided a telephone number or the renter has not agreed to electronic communication pursuant to Section 1939.22. The rental or lease agreement shall advise the renter that electronic surveillance technology may be activated if the rental vehicle has not been returned within 72 hours after the contracted return date or extension of the return date. The renter shall acknowledge this advisement in the rental or lease agreement by initials. The advisement shall also be made orally to the renter at the time of executing the rental or lease agreement. The advisements are not required to be made to members of the rental company’s membership program executing a rental or lease agreement; however, a renter shall be given those advisements upon enrolling in the rental company’s membership program.

(iii) Notwithstanding clause (ii), if the rental vehicle has not been returned following one week after the contracted return date or by one week following the end of an extension of that return date.

(iv) The rental company discovers the rental vehicle has been stolen or abandoned, and, if stolen, the rental company shall report the vehicle stolen to law enforcement by filing a stolen vehicle report, unless law enforcement has already informed the rental company that the vehicle is missing or has been stolen or abandoned.

(v) The rental vehicle is the subject of an AMBER Alert issued pursuant to Section 8594 of the Government Code. If the rental company uses the equipment in connection with this provision relating to an AMBER Alert, the rental company shall notify law enforcement that one of the rental company’s vehicles is the subject of an AMBER Alert upon becoming aware of the situation, unless law enforcement has already informed the rental company that the vehicle was the subject of an AMBER Alert.

(B) If electronic surveillance technology is activated pursuant to subparagraph (A), a rental company shall maintain a record, in either electronic or written form, of information relevant to the activation of that technology. That information shall include the rental agreement, including the return date, and the date and time the electronic surveillance technology was activated. The record shall also include, if relevant, a record of written or other communication with the renter, including communications regarding extensions of the rental, police reports, or other written communication with law enforcement officials. The record shall be maintained for a period of at least 12 months from the time the record is created and shall be made available upon the renter’s request. The rental company shall maintain and furnish explanatory codes necessary to read the record. A rental company shall not be required to maintain a record if electronic surveillance technology is activated to recover a rental vehicle that is stolen or missing at a time other than during a rental period.

(2) In response to a specific request from law enforcement pursuant to a subpoena or search warrant.

(b) Subdivision (a) does not prohibit a rental company from equipping rental vehicles with any of the following:

(1) GPS-based technology that provides navigation assistance to the occupants of the rental vehicle, if the rental company does not use, access, or obtain information relating to the renter’s use of the rental vehicle that was obtained using that technology, except for the purposes of discovering or repairing a defect in the technology and the information may then be used only for that purpose.

(2) Electronic surveillance technology that allows for the remote locking or unlocking of the vehicle at the request of the renter, if the rental company does not use, access, or obtain information relating to the renter’s use of the rental vehicle that was obtained using that technology, except as necessary to lock or unlock the vehicle.

(3) Electronic surveillance technology that allows the company to provide roadside assistance, such as towing, flat tire, or fuel services, at the request of the renter, if the rental company does not use, access, or obtain information relating to the renter’s use of the rental vehicle that was obtained using that technology except as necessary to provide the requested roadside assistance.

(c) Subdivision (a) does not prohibit a rental company from obtaining, accessing, or using information from electronic surveillance technology for the sole purpose of determining the date and time the vehicle departs from and is returned to the rental company, and the total mileage driven and the vehicle fuel level of the returned vehicle. The information obtained or accessed from this electronic surveillance technology shall only be used for the purpose described in this subdivision.

(d) A rental company shall not use electronic surveillance technology to track a renter in order to impose fines or surcharges relating to the renter’s use of the rental vehicle.

SEC. 6.

Section 2924m of the Civil Code is amended to read:

2924m.

(a) For purposes of this section:

(1) “Prospective owner-occupant” means a natural person who presents to the trustee an affidavit or declaration, pursuant to Section 2015.5 of the Code of Civil Procedure, that:

(A) They will occupy the property as their primary residence within 60 days of the trustee’s deed being recorded.

(B) They will maintain their occupancy for at least one year.

(i) The mortgagor or trustor.

(ii) The child, spouse, or parent of the mortgagor or trustor.

(iii) The grantor of a living trust that was named in the title to the property when the notice of default was recorded.

(iv) An employee, officer, or member of the mortgagor or trustor.

(v) A person with an ownership interest in the mortgagor, unless the mortgagor is a publicly traded company.

(D) They are not acting as the agent of any other person or entity in purchasing the real property.

(2) “Eligible tenant buyer” means a natural person who at the time of the trustee’s sale:

(A) Is occupying the real property as their primary residence.

(B) Is occupying the real property under a rental or lease agreement entered into as the result of an arm’s-length transaction with the mortgagor or trustor, or with the mortgagor or trustor’s predecessor in interest, on a date prior to the recording of the notice of default against the property, and who attaches evidence demonstrating the existence of the tenancy to the affidavit or declaration required pursuant to subparagraph (B) of paragraph (2) of subdivision (c).

(D) Is not acting as the agent of any other person or entity in purchasing the real property. Submission of a bid pursuant to paragraph (3) of subdivision (c) does not violate this subparagraph.

(E) Has not filed a petition under Chapter 7, 11, 12, or 13 of Title 11 of the United States Code at any time during the period from the date of the trustee’s sale of the property to the 45th day after the trustee’s sale, or the next business day following the 45th day if the 45th day is a weekend or holiday.

(3) “Eligible bidder” means any of the following:

(A) An eligible tenant buyer.

(B) A prospective owner-occupant.

(C) A nonprofit association, nonprofit corporation, or cooperative corporation in which an eligible tenant buyer is a voting member or director.

(D) An eligible nonprofit corporation with all of the following attributes:

(i) It has a determination letter from the Internal Revenue Service affirming its tax-exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code and is not a private foundation as that term is defined in Section 509 of the Internal Revenue Code.

(ii) It has its principal place of business in California.

(iii) The primary residences of all board members are located in California.

(iv) One of its primary activities is the development and preservation of affordable rental or homeownership housing in California.

(v) It is registered and in good standing with the Attorney General’s Registry of Charities and Fundraisers, pursuant to the Supervision of Trustees and Fundraisers for Charitable Purposes Act (Article 7 (commencing with Section 12580) of Chapter 6 of Part 2 of Division 3 of Title 2 of the Government Code).

(E) A limited liability company wholly owned by one or more eligible nonprofit corporations as described in subparagraph (C) or (D).

(F) A community land trust, as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code.

(G) A limited-equity housing cooperative as defined in Section 817.

(H) The state, the Regents of the University of California, a county, city, district, public authority, or public agency, and any other political subdivision or public corporation in the state.

(4) “Evidence demonstrating the existence of the tenancy” means a copy of the dated and signed rental or lease agreement or, if a copy of the dated and signed rental or lease agreement is not available, then one of the following:

(A) Evidence of rent payments made for the property by the person asserting that they are an eligible tenant buyer for the six months prior to the recording of the notice of default.

(B) Copies of utility bills for the property payable by the person asserting that they are an eligible tenant buyer for the six months prior to the recording of the notice of default.

(b) This section does not prevent an eligible tenant buyer who meets the conditions set forth in paragraph (1) of subdivision (a) from being deemed a prospective owner-occupant.

(c) A trustee’s sale of property under a power of sale contained in a deed of trust or mortgage on real property containing one to four residential units pursuant to Section 2924g shall not be deemed final until the earliest of the following:

(1) If a prospective owner-occupant is the last and highest bidder at the trustee’s sale, the date upon which the conditions set forth in Section 2924h for the sale to become final are met. The prospective owner-occupant shall submit to the trustee the affidavit or declaration described in paragraph (1) of subdivision (a) at the trustee’s sale or to the trustee by 5 p.m. on the next business day following the trustee’s sale.

(2) Fifteen days after the trustee’s sale unless at least one eligible tenant buyer or eligible bidder submits to the trustee either a bid pursuant to paragraph (3) or (4) or a nonbinding written notice of intent to place such a bid. The bid or written notice of intent to place a bid shall:

(A) Be sent to the trustee by certified mail, overnight delivery, or other method that allows for confirmation of the delivery date.

(B) Be accompanied by an affidavit or declaration, pursuant to Section 2015.5 of the Code of Civil Procedure, identifying the category set forth in paragraph (3) of subdivision (a) to which the person or entity submitting the bid or nonbinding written notice of intent belongs and stating that the person meets the criteria for that category. If the winning bid is placed by an eligible bidder described in subparagraphs (C) to (G), inclusive, of paragraph (3) of subdivision (a), the affidavit or declaration shall affirm the bidder’s duty to comply with subdivision (a) of Section 2924o for the benefit of tenants occupying the property.

(C) Be received by the trustee no later than 5 p.m. on the 15th day after the trustee’s sale, or the next business day following the 15th day if the 15th day is a weekend or holiday.

(D) Contain a current telephone number and return mailing address for the person submitting the bid or nonbinding written notice of intent.

(3) (A) The date upon which a representative of all of the eligible tenant buyers submits to the trustee a bid in an amount equal to the full amount of the last and highest bid at the trustee’s sale, in the form of cash, a cashier’s check drawn on a state or national bank, a cashier’s check drawn by a state or federal credit union, or a cashier’s check drawn by a state or federal savings and loan association, savings association, or savings bank specified in Section 5102 of the Financial Code and authorized to do business in this state. This bid shall:

(i) Be sent to the trustee by certified mail, overnight delivery, or other method that allows for confirmation of the delivery date and shall

(ii) Be accompanied by an affidavit or declaration, pursuant to Section 2015.5 of the Code of Civil Procedure, stating that the persons represented meet the criteria set forth in paragraph (2) of subdivision (a), and that the persons represented are all of the eligible tenant buyers.

(iii) Meet either of the following criteria:

(I) Be received by the trustee no later than 5 p.m. on the 15th day after the trustee’s sale, the next business day following the 15th day if the 15th day is a weekend or holiday.

(II) Be received by the trustee no later than 5 p.m. on the 45th day after the trustee’s sale, or the next business day following the 45th day if the 45th day is a weekend or holiday, if at least one of the eligible tenant buyers submitted a nonbinding written notice of intent to place a bid pursuant to paragraph (2).

(iv) Contain a current telephone number and return mailing address for the person submitting the bid.

(v) Be limited to a single bid amount and not contain instructions for successive bid amounts.

(B) If the conditions in this paragraph are satisfied, the eligible tenant buyers shall be deemed the last and highest bidder pursuant to the power of sale.

(4) (A) Forty-five days after the trustee’s sale, except that during the 45-day period, an eligible bidder may submit to the trustee a bid in an amount that exceeds the last and highest bid at the trustee’s sale, in the form of cash, a cashier’s check drawn on a state or national bank, a cashier’s check drawn by a state or federal credit union, or a cashier’s check drawn by a state or federal savings and loan association, savings association, or savings bank specified in Section 5102 of the Financial Code and authorized to do business in this state. The bid shall:

(i) Be sent to the trustee by certified mail, overnight delivery, or other method that allows for confirmation of the delivery date.

(ii) Be accompanied by an affidavit or declaration, pursuant to Section 2015.5 of the Code of Civil Procedure, identifying the category set forth in paragraph (3) of subdivision (a) to which the eligible bidder belongs and stating that the eligible bidder meets the criteria for that category.

(iii) Be received by the trustee no later than 5 p.m. on the 45th day after the trustee’s sale, or the next business day following the 45th day if the 45th day is a weekend or holiday, if the eligible bidder submitted a nonbinding written notice of intent to bid pursuant to paragraph (2). Notwithstanding clause (i), on the last day that bids are eligible to be received by the trustee under this clause, the trustee shall not receive any bid that is not sent by certified mail or overnight mail.

(iv) Contain a current telephone number and return mailing address for the person submitting the bid.

(B) As of 5 p.m. on the 45th day after the trustee’s sale, if one or more eligible bidders has submitted a bid that meets the conditions in this paragraph, the eligible bidder that submitted the highest bid shall be deemed the last and highest bidder pursuant to the power of sale. The trustee shall return any losing bid to the eligible bidder that submitted it.

(e) If the conditions set forth in paragraph (1) of subdivision (c) for a sale to be deemed final are not met, then:

(1) Not later than 48 hours after the trustee’s sale of property under Section 2924g, the trustee or an authorized agent shall post on the internet website set forth on the notice of sale, as required under paragraph (8) of subdivision (b) of Section 2924f, the following information:

(A) The date on which the trustee’s sale took place.

(B) The amount of the last and highest bid at the trustee’s sale.

(C) An address at which the trustee can receive documents sent by United States mail and by a method of delivery providing for overnight delivery.

(2) The information required to be posted on the internet website under paragraph (1) shall also be made available not later than 48 hours after the trustee’s sale of property under Section 2924g by calling the telephone number set forth on the notice of sale as required under paragraph (8) of subdivision (b) of Section 2924f.

(3) The information required to be provided under paragraphs (1) and (2) shall be made available using the file number assigned to the case that is set forth on the notice of sale as required under paragraph (8) of subdivision (b) of Section 2924f.

(4) The information required to be provided under paragraphs (1) and (2) shall be made available for a period of not less than 45 days after the sale of property under Section 2924g.

(5) A disruption of any of these methods of providing the information required under paragraphs (1) and (2) to allow for reasonable maintenance or due to a service outage shall not be deemed to be a violation of this subdivision.

(6) The information to be provided by the trustee to eligible bidders or to persons considering whether to submit a bid or notice of intent to bid pursuant to this section is limited to the information set forth in paragraph (1).

(f) Title to the property shall remain with the mortgagor or trustor until the property sale is deemed final as provided in this section.

(g) A prospective owner-occupant shall not be in violation of this section if a legal owner’s compliance with the requirements of Section 2924n renders them unable to occupy the property as their primary residence within 60 days of the trustee’s deed being recorded.

(h) This section shall prevail over any conflicting provision of Section 2924h.

(i) For trustee’s sales where the winning bidder is an eligible bidder under this section, the trustee or an authorized agent shall electronically send the following information to the office of the Attorney General within 15 days of the sale being deemed final:

(1) The dates when the trustee’s sale took place and when it was deemed final.

(2) The name of the winning bidder.

(3) The street address and assessor’s parcel number of the subject property.

(4) A copy of the trustee’s deed, as recorded, including the attached affidavit or declaration of the winning bidder.

(5) The category set forth in paragraph (3) of subdivision (a) to which the eligible bidder belongs.

(j) The Attorney General, a county counsel, a city attorney, or a district attorney may bring an action for specific performance or any other remedy at equity or at law to enforce this section.

(k) The Department of Justice shall include a summary of information contained in the reports received pursuant to subdivision (i) in a searchable repository on its official internet website.

(l) The pendency of a determination of finality under subdivision (c) shall not cause termination of any hazard insurance coverage in effect at the time of the trustee’s sale.

(m) This section shall remain in effect only until January 1, 2031, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2031, deletes or extends that date.

SEC. 6.5.