Bill Text: CA AB646 | 2017-2018 | Regular Session | Amended

California Assembly Bill 646 (Prior Session Legislation)

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

Bill Title: Rental property: disclosures: flood hazard areas: areas of potential flooding.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Passed) 2017-10-05 - Chaptered by Secretary of State - Chapter 502, Statutes of 2017. [AB646 Detail]

Download: California-2017-AB646-Amended.html

Amended IN Assembly April 25, 2017

Amended IN Assembly March 23, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill

No. 646

Introduced by Assembly Member Kalra

February 14, 2017

An act to ~~add Section 69509.7 to the Education Code, relating to postsecondary education.~~ amend Sections 8589.3 and 8589.4 of the Government Code, relating to rental property disclosures.

LEGISLATIVE COUNSEL'S DIGEST

AB 646, as amended, Kalra. ~~Higher education costs: report.~~ Rental property: disclosures: flood hazard areas: areas of potential flooding.

Existing law requires a person who is acting as an agent for a transferor of real property that is located within either a special flood hazard or an area of potential flooding, determined as provided, or the transferor if he or she is acting without an agent, to disclose to any prospective transferee the fact that the property located in a special flood hazard or an area of potential flooding if certain criteria are met.
This bill would additionally require a person who offers for rental a residential dwelling unit that is located within either a special flood hazard or an area of potential flooding to provide written notice of that fact. The bill would make findings and declarations in this regard.
~~Existing law establishes various student financial aid programs to help cover the costs of postsecondary education.~~
This bill would require the Chancellor of the California State University and the Chancellor of the California Community Colleges, and would request the President of the University of California and the President of the Association of Independent California Colleges and Universities, to collaboratively develop and provide recommendations to the Legislature, on or before June 1, 2018, on additional efforts the state can make to reduce the impact that rising higher education costs have on low-income students.

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

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

SECTION 1.

The Legislature finds and declares the following:

(a) In February 2017, several neighborhoods within the City of San Jose experienced severe flooding that forced the evacuation of thousands of residents and businesses and caused significant damage to public and private property throughout the city. A number of communities and mobilehome parks along Coyote Creek were submerged when Anderson Reservoir reached its capacity and began spilling into the creek.
(b) The flood had significant impact on the communities along Coyote Creek in the City of San Jose, and people living within the neighborhoods impacted were not notified that their property was located within a special flood hazard area or an area of potential flooding.
(c) Sections 8589.3 and 8589.4 of the Government Code require a person acting as an agent for a transferor of real property, or the transferor if he or she is acting without an agent, who has actual knowledge that the property is located within a special flood hazard area or an area of potential flooding to disclose that fact to a prospective transferee.
(d) The disclosures required by this act are warranted solely by (1) the fact that residential rental properties located within an inundation area or an area of potential flooding is known by landlords and (2) the ability of a landlord to disclose this information for the safety of tenants.

SEC. 2.

Section 8589.3 of the Government Code is amended to read:

8589.3.

(a) (1) A person who is acting as an agent for a transferor of real property that is located within a special flood hazard area (any type Zone “A” or “V”) designated by the Federal Emergency Management Agency, or the transferor if he or she is acting without an agent, shall disclose to any prospective transferee the fact that the property is located within a special flood hazard area.

(2) A person who offers for rental a residential dwelling unit that is located within a special flood hazard area (any type Zone “A” or “V”) designated by the Federal Emergency Management Agency shall provide written notice to a prospective tenant of the fact that the property is located within a special flood hazard area prior to execution of a rental agreement.

(b) Disclosure is required pursuant to this section only when one of the following conditions is met:

(1) The transferor, or the transferor’s agent, or the person offering for rental a residential dwelling unit, has actual knowledge that the property is within a special flood hazard area.

(2) The local jurisdiction has compiled a list, by parcel, of properties that are within the special flood hazard area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.

(c) In all transactions that are subject to Section 1103 of the Civil Code, the disclosure required by subdivision (a) of this section shall be provided by either of the following means:

(1) The Local Option Real Estate Disclosure Statement as provided in Section 1102.6a of the Civil Code.

(2) The Natural Hazard Disclosure Statement as provided in Section 1103.2 of the Civil Code.

(d) For purposes of the disclosure required by this section, the following persons shall not be deemed agents of the transferor:

(1) Persons specified in Section 1103.11 of the Civil Code.

(2) Persons acting under a power of sale regulated by Section 2924 of the Civil Code.

(e) Section 1103.13 of the Civil Code shall apply to this section.

(f) The specification of items for disclosure in this section does not limit or abridge any obligation for disclosure created by any other provision of law or that may exist in order to avoid fraud, misrepresentation, or deceit in the transfer ~~transaction.~~ transaction or the rental agreement.

(g) A notice shall be posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the special flood hazard area map, any relevant Letters of Map Revision from the Federal Emergency Management Agency, and any parcel list compiled by the local jurisdiction.

SEC. 3.

Section 8589.4 of the Government Code is amended to read:

8589.4.

(a) (1) A person who is acting as an agent for a transferor of real property that is located within an area of potential flooding shown on an inundation map designated pursuant to Section 8589.5, or the transferor if he or she is acting without an agent, shall disclose to any prospective transferee the fact that the property is located within an area of potential flooding.

(2) A person who offers for rental a residential dwelling unit that is located within an area of potential flooding shown on an inundation map designated pursuant to Section 8589.5 shall provide written notice to a prospective tenant of the fact that the property is located within an area of potential flooding prior to execution of a rental agreement.

(b) Disclosure is required pursuant to this section only when one of the following conditions is met:

(1) The transferor, or the transferor’s agent, or the person offering for rental a residential dwelling unit, has actual knowledge that the property is within an inundation area.

(2) The local jurisdiction has compiled a list, by parcel, of properties that are within the inundation area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.

(c) In all transactions that are subject to Section 1103 of the Civil Code, the disclosure required by subdivision (a) of this section shall be provided by either of the following means:

(1) The Local Option Real Estate Disclosure Statement as provided in Section 1102.6a of the Civil Code.

(2) The Natural Hazard Disclosure Statement as provided in Section 1103.2 of the Civil Code.

(d) For purposes of the disclosure required by this section, the following persons shall not be deemed agents of the transferor:

(1) Persons specified in Section 1103.11 of the Civil Code.

(2) Persons acting under a power of sale regulated by Section 2924 of the Civil Code.

(e) Section 1103.13 of the Civil Code shall apply to this section.

SECTION 1.
~~The Legislature finds and declares all of the following:~~
~~(a)The higher education debt load carried by college and university graduates is alarming and continues to grow.~~
~~(b)College and university costs are becoming the single greatest factor of debt facing many low-income students.~~
(c)For many low-income students at California’s colleges and universities, the struggle to pay for higher education costs exceed available student financial aid, including grants and loans, which requires many students to seek full-time work in addition to their full-time academic course schedules.
~~(d)Exacerbating these challenges are recent statistics indicating that one out of every five college students face food insecurity and rely on community food banks to eat.~~
~~(e)Further steps are needed to ensure that California is doing all that it can to provide necessary financial and services support for its students.~~
SEC. 2.Section 69509.7 is added to the Education Code, to read:
69509.7.
The Chancellor of the California State University and the Chancellor of the California Community Colleges shall, and the President of the University of California and the President of the Association of Independent California Colleges and Universities are requested to, collaboratively develop and produce recommendations to the Legislature, on or before June 1, 2018, on additional efforts the state can make to reduce the impact that rising higher education costs have on low-income students.