BILL ANALYSIS SB 2088 Date of Hearing: July 6, 1994 ASSEMBLY COMMITTEE ON JUDICIARY Phillip Isenberg, Chair SB 2088 (Mello) - As Amended: June 13, 1994 PRIOR ACTION Sen. Com. on JUD. 11-0 Sen. Floor 37-0 PURPOSE: This bill clarifies situations in which a hotel or motel may šhave a person removed from the premises without the necessity of using the šlegal eviction processes that is required when a person is considered a š"tenant." KEY ISSUE: SHOULD A "TENANCY" AT A HOTEL OR MOTEL (A STATUS THAT DOES NOT ALLOW šTERMINATION OF THE PERSON'S OCCUPANCY WITHOUT LEGAL EVICTION PROCESS AND šCOURT ORDER) BE DEFINED TO EXCLUDE ANY PERSON WHO HAS NOT MADE VALID šPAYMENT FOR ALL ROOM AND OTHER RELATED CHARGES OWING ON THE 30TH DAY OF HIS šOR HER OCCUPANCY? SHOULD THE REQUIREMENTS FOR "EXEMPT" HOTELS AND MOTELS (I.E., HOTELS AND šMOTELS IN WHICH "GUEST" ARE NOT GIVEN "TENANT" STATUS) BE MODIFIED TO šDELETE THE REQUIREMENTS THAT THEY PROVIDE "CENTRAL DINING" AND š"RECREATIONAL SERVICES"? SHOULD THE CRIMINAL TRESPASS LAW BE CLARIFIED TO PROVIDE THAT ANY OCCUPANCY šIN A HOTEL OR MOTEL FOR A CONTINUOUS PERIOD OF 30 DAYS OR LESS, ABSENT A šWRITTEN AGREEMENT TO THE CONTRARY, NOT BE CONSIDERED A TENANCY? DIGEST Existing law provides various provisions regarding the hiring of real šproperty. Generally, the law requires termination of the right of špossession and eviction of a "tenant" only takes place through the judicial šprocess. Existing law: 1) Provides that "persons who hire" real property (a "tenant") does not include a person who maintains transient occupancy at a hotel or motel when that occupancy is subject to a room tax. (Generally, occupancy of less than 30 consecutive days is considered transient.) - continued - SB 2088 Page 1 SB 2088 This bill: 1) Clarifies that tenant status is not acquired based on occupancy of more than 30 consecutive days where the person has not made valid payment for all room and other related charges on the 30th day of occupancy. 2) Provides that a "tenant" does not include persons who maintain occupancy at an "exempt" hotel or motel where the innkeeper retains a right of access to and control of the dwelling unit and the hotel or motel provides "central dining," maid, mail room and recreational services. 2) Deletes the requirement that "exempt" hotels and motels provide: (a) "central dining" service (and instead specifies "food service" such hotels and motels must provide) and (b) recreational services. 3) Makes punishable, as a misdemeanor criminal trespass, the refusal or failure to leave a hotel or motel where a person has refused to pay for accommodations and the occupancy is not a "tenancy" under Civil Code Section 1940. - continued - SB 2088 Page 2 SB 2088 3) Provides that an occupancy at a hotel or motel for a period of 30 consecutive days or less shall not be deemed to be a tenancy in the absence of a written agreement to the contrary or other written evidence of a periodic tenancy of an indefinite duration. FISCAL EFFECT No significant fiscal impact on state or local entities is anticipated. šThis bill will not be referred to the Assembly Committee on Ways and šMeans. COMMENTS 1) Sponsor's Statement. The California Hotel and Motel Association, the sponsor, states that this bill "is the result of a carefully crafted compromise reached between the hotel/motel industry, the Western Center on Law and Poverty, and various legal aid organizations to better define the specific circumstances under which a hotel/motel 'guest' will become a 'tenant'." The sponsor argues that because of the "significant legal and practical differences between these two classes of occupants," this issue is extremely important. According to the sponsor, its members are facing increasing incidences of hotel "guests" suddenly claiming that they are "tenants" and, therefore, cannot be evicted without an unlawful detainer action. Under Civil Code (CC) Section 1940, an occupancy of certain types of hotels or motels (which do not provide food or maid service, etc.) for more than 30 consecutive days may create a "tenancy." As a tenant, the person cannot be evicted without due process and the right to a jury trial. As a guest, however, the person may be evicted without court process or order and even arrested for trespass upon the non- payment of rental charges. This bill, the sponsor argues, clarifies distinctions between a hotel or motel "guest" and "tenant" to better enable a hotel or motel to enforce its rights against non-paying guests. 2) Clarification of trespass laws. According to the sponsor, law enforcement agencies rarely enforce the trespass law to evict non- paying hotel and motel guests because of the fear of liability for an unlawful arrest and eviction. This bill, proponents argue, will clarify the law to provide guidance to law enforcement agencies. The proponents contend that under this bill a law enforcement officer can better and more easily determine whether the accused violator is a non- paying guest or tenant and act accordingly. 3) Requirements for "exempt" hotels and motels. This bill changes - continued - SB 2088 Page 3 SB 2088 the requirements for certain hotels and motels to be exempt from CC Section 1940 (i.e., their g uests can never acquire tenant status). Under current laws, these hotels and motels must provide, among other amenities, "central dining, maid, mail, room, and recreational services." This bill repeals the requirement to provide "recreational services" and require the provision of "food service," as defined, rather than "central dining." According to the sponsor, recent development trends have led to the building of some "four-star" facilities that do not provide "recreational services," but for all intents and purposes are like other four-star facilities. Proponents argue that these facilities, like "Embassy Suites," should not be denied the protections offered to other similar establishments simply because of the failure to provide recreational services. Similarly, many of these newer establishments may offer dining in an affiliated food establishment that is located on or adjacent to the hotel or motel, but is not "central dining." The changes proposed in this bill, proponents contend, update the law to reflect development trends. 4) Technical amendment. Committee staff is advised that the author will offer the following technical amendment: On page 2, line 15, after the word "and" insert: other On page 7, line 14, following the word "agreement", strike "of," and insert: to the contrary On page 7, line 15, following the words evidence of, strike the comma SUPPORT OPPOSITION California Hotel and Motel Association Unknown (sponsor) California Lodging Industry Association - continued - SB 2088 Page 4