Rent caps, Dynamex bill advance in State Assembly

Fri, May 31, 2019 10:54 AM | Anonymous member (Administrator)

Caps on rent increases, Dynamex independent contractor bills passed by State Assembly, SGV Housing Trust Fund passes State Senate

Irwindale - In a whirlwind of activity, each chamber of the State Legislature went through a full slate of bills these past two weeks as the deadline for legislation to clear their original house arrived today, May 31st. Major bills on the environment, energy, taxation, labor issues, regulations and housing came before lawmakers in Sacramento. While many passed to the opposite chamber, some bills stall and died on the floor. 

Among the key bills the Partnership was watching was AB 5 (Gonzalez), a key bill that addresses the incredibly important Dynamex decision, which upended established state employment law and would require virtually all independent contractors to be reclassified as full employees. AB 5 has been substantially amended to carve out exemptions for particular occupations and industries but remains deeply flawed. Our thanks to Assemblymembers Blanca Rubio, Jim Frazier, Brian Dahle, Jim Cooper, Jay Obernolte, Susan Eggman, Bill Quirk, and Sydney Kamlager-Dove who spoke on the Assembly floor and called for additional amendments to address the deeply problematic elements of AB 5. 

A significant housing bill that places caps on rent increases passed the Assembly on Wednesday. AB 1482 (Chiu) passed the Assembly 43-31 with 6 members not voting. The bill was amended to appease realtor groups, with the rent cap was raised to 7% a year plus inflation (which is typically 2.5% in California) until 2023, when the caps expire. The bill also does not apply to owners with less than ten single-family homes. AB 1481, a companion bill to AB 1482, would have made it illegal for landlords to evict tenants without just cause. AB 1481 did not come up for a floor vote in the Assembly - it is now dead for the year.

The Partnership opposed AB 1482. While spikes in rent are deeply troubling for the state's housing crisis, and additional protections for tenants are needed, placing caps on rent increases - even at a higher rate of percentage - may end up hurting more tenants statewide than it protects. By capping rent increases, this now incentivizes landlords across the state to raise rents each year until the sunset date.

How our SGV Assemblymembers voted on AB 1482:

Yes - Calderon, Chau, Friedman, Holden, Rodriguez

No - Chen, Rubio

Not Voting - C. Garcia

Another significant bill opposed by the Partnership was AB 764 (Bonta), which would have prohibited retailers from offering coupons for sugary beverages. This would have a detrimental effect on small businesses who would be competing with online retailers who would not be prohibited from offering coupons or discounts on sugary beverage purchases. Although this bill was expected to be voted on, it did not come up for a floor vote and is done for the year.

For additional information about these and other bills, contact Brad Jensen, Director of Public Policy or (626_ 856-3400.


San Gabriel Valley Economic Partnership

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