BILL ANALYSIS UNFINISHED BUSINESS SB 2088 Mello (D) 8/9/94 21 p. 5537, 6/23/94 74-0, 8/18/94 SUBJECT: Landlord and Tenant Law SOURCE: California Hotel and Motel Association ____________________________________________________________________________ DIGEST: This bill provides that a "tenancy" at a hotel or motel, a šstatus which does not allow the termination of the person's occupancy šwithout due process and court order, be defined to exclude: 1. Any person who has not made valid payment for all room and other š related charges then owing on the 30th day of his or her occupancy when the person seeks to establish a tenancy by reason of occupying the premises for more than 30 consecutive days. 2. For purposes of enforcing the trespass laws, any occupancy at a hotel š or motel for a continuous period of 30 days or less, in the absence of a written agreement to the contrary or other written evidence of a periodic tenancy of indefinite duration. Assembly amendments added technical clarifying language. ANALYSIS: Existing law contains various provisions regulating the šhiring of real property. Civil Code Section 1940, subdivision (b), šprovides that "persons who hire" real property (a "tenant") does not šinclude a person who, either, (1) maintains a transient occupancy at a šhotel or motel when that occupancy is subject to a room tax, or (2) šmaintains an occupancy at an "exempt" hotel or motel where the innkeeper š retains a right of access to and control of the dwelling unit and the šhotel or motel provides central dining, maid, mail, room, and recreational šservices. This bill would revise that subdivision. It would: (a) Preclude a person from acquiring "tenancy" or "persons who hire" š status based on more than 30 consecutive days of occupancy in a hotel or motel where that person who has not made valid payment for all room and other related charges then owing on the 30th day of his or her occupancy. (b) Instead require an "exempt" hotel or motel to provide "food service" as defined, and "maid, mail and room services", in order to preclude occupancy at that establishment from being deemed a "tenancy". Existing law, Penal Code Section 602, makes certain trespasses punishable as a misdemeanor. Section 602(r) makes punishable as a criminal trespass the refusal or failure to leave a hotel or motel where the person has obtained accommodations and has refused to pay for those accommodations, and the occupancy is not a tenancy under Civil Code Section 1940. This bill would provide, for purposes of enforcing the trespass laws, that šan occupancy at a hotel or motel for a continuous period of 30 days or less šshall not be deemed to be a tenancy in the absence of a written agreement što the contrary or other written evidence of a periodic tenancy of šindefinite duration. The purpose of this bill is to clarify the legal distinctions between a šhotel "guest" and a hotel "tenant". Clarification of Civil Code provisions This bill makes two clarifying amendments to Section 1940. First, it would change the requirements for certain hotels and motels to be šexempt from Section 1940; i.e., their guests can never acquire tenant šstatus. Under current laws, these hotels and motels must provide, among šother amenities, "central dining, maid, mail, room, and recreational šservices." SB 2088 would repeal the requirement to provide "recreational šservices" and require the provision of "food service", as defined, rather šthan "central dining". According to the sponsor, recent development trends have led to the šbuilding of some "four-star" facilities which do not provide "recreational šservices", but for all intents and purposes are like other four-star šfacilities. These facilities, like "Embassy Suites", should not be denied šthe protections offered to other similar establishments simply because of šthe failure to provide recreational services. Similarly, many of these šnewer establishments may offer dining in an affiliated food establishment šlocated on or adjacent to the hotel or motel, but is not "central dining". šThe changes proposed to Section 1940 thus updates the code to reflect šdevelopment trends. Second, it would clarify the conditions under which a guest staying at an šnon-exempt hotel or motel (does not provide required services) would š CONTINUED SB 2088 Page 3 acquire tenant status. Under existing law, that status may be acquired by a šcontinuous occupancy for more than 30 consecutive days. Proponents assert šthat some hotel and motel guests are using creative ruses to claim "tenant" šstatus even though they have not paid for 30 consecutive days of occupancy što establish a legal tenancy. This bill would provide that a tenancy is šnot established at these hotels and motels by reason of a continuous šoccupancy of more than 30 days unless the person has made valid payment for šall room and other related charges owing as of the 30th day - the last day šthe occupancy is subject to a room tax. This clarification and the šclarification of the trespass law, asserts the proponents, would greatly šassist hotel and motel owners to enforce their rights against non-paying šguests. According to the sponsor, law enforcement agencies (Los Angeles County šparticularly) rarely enforce the trespass law to evict non-paying hotel and šmotel guests because of the fear of liability for an unlawful arrest and ševiction. This bill would clarify Section 602 to provide guidance to law šenforcement agencies. Using the new provision, an law enforcement officer šcan better and more easily determine whether the accused violator is a non- špaying guest or tenant and act accordingly. FISCAL EFFECT: Appropriation: No Fiscal Committee: No Local: No SUPPORT: (Verified 8/18/94) California Hotel and Motel Association ARGUMENTS IN SUPPORT: According to the California Hotel and Motel šAssociation, their members are facing increasing incidences of hotel š"guests" suddenly claiming that they are "tenants" and, therefore, cannot šbe evicted without an unlawful detainer action. Under Civil Code Section 1940, an occupancy at certain types of hotels or šmotels (which do not provide food or maid service, etc.) for more than 30 šcontinuous days may create a "tenancy". As a tenant, the person cannot be ševicted without due process and the right to a jury trial. As a guest, šhowever, the person may be evicted without court process or order and even šarrested for trespass upon the non-payment of rental charges. This bill would provide clarifying distinctions between a hotel or motel š"guest" and "tenant" to better enable a hotel or motel to enforce its šrights against non-paying guests. RJG:sl 8/18/94 Senate Floor Analyses CONTINUED