By Michael J. Arnold & Michael Belote, Esq.
Legislative Advocates

Crazy times in Sacramento. This is definitely the most unusual legislative session we have seen In the history of our work here in the state capital. The COVID-19 impact on the legislative session has been felt in many ways. As we write this article, we have just learned that the Legislature is extending the summer recess until July 27. Even if they had returned on July 13th, as originally planned, time would have been very short to accomplish their business. This decision was made due to the fact that several staff members and at least two legislators (Assembly Members Burke and Lackey) have been diagnosed as positive for COVID-19. One huge problem presented by these developments is that the legislature will have only five weeks to consider the 700 bills awaiting action. These measures have all passed the House of origin and are awaiting action in the second house. It will be a virtual sprint to the August 31st adjournment date. Our concern is that a thorough discussion of these measures may not be possible in light of the compressed timeline.

Success in stopping AB 2501(Lemon) and SB 939(Wiener). We are pleased to report that two very bad bills for the CMA membership have been defeated. AB 2501 was stopped on the floor of the assembly and SB 939 was held in the Senate Appropriations Committee. AB 2501 would have imposed a blanket one-year foreclosure moratorium and required forbearances on residential mortgages based upon a self-attestation from borrowers. SB 939 would have prohibited evictions on commercial properties where the tenant was impacted by the pandemic.

Your CMA lobbyists worked closely with other groups in opposition to these measures. A huge thank you to the CMA members who contacted their Legislators to request opposition to these bill – your efforts produced results!

Other bad bills still remain. We continue to work against the following bills which are still under consideration in Sacramento:

  • AB 828 (Ting) Would enact a temporary moratorium on foreclosures and unlawful detainer actions during COVID-19.
  • AB 1079 (Skinner) Would alter the foreclosure sale process for residential foreclosures by requiring the trustee to consider offers from “owner-occupants of the home and from a public entity that is utilizing public funds to purchase the property.”
  • AB 1436 (Chiu) Would create a new definition of “covered tenant” as a tenant who provides the landlord with a written statement that the tenant “is unable to satisfy rent accrued during the “effective time period” (defined as the time from the declaration of a state of emergency and 4/1/2021 or 90 days from the termination of the state of emergency) due to a loss of income or increased expenses resulting from COVID-19.” The bill would exempt the tenant from an unlawful detainer during the “effective time period” and includes other problematic provisions.

Amendments still coming! In addition to the above, many bills are being amended on a daily basis. We read every amendment to determine if the revised bill will have an impact on the CMA membership. Many Legislators feel they must do something to “help” those in need during these difficult times. Unfortunately, many of the proposals intended to help will actually harm the exact people they are trying to help.

Contact your Senator. Continued contact with Legislators by CMA members is essential if we are to defeat the remaining bad bills noted above. Please contact your state senator and request opposition to AB 828, AB 1079 and AB 1436.

Governor’s Executive Order N-71-20, June 30, extends the authorization for local governments to halt evictions for renters impacted by COVID-19, through September 30. The order also extends provisions in earlier orders. In addition, the order extends timeframes related to the payment of real estate license application and renewal fees and continuing education requirements for licensees.