AB 754: Floating home marinas: rent caps: County of Marin.
- Session Year: 2025-2026
- House: Assembly
- Latest Version Date: 2025-10-10
Current Status:
Passed
(2025-10-10: Chaptered by Secretary of State - Chapter 498, Statutes of 2025.)
Introduced
In Committee
Awaiting First Chamber Vote
Passed First Chamber
In Committee
Awaiting Second Chamber Vote
Passed Second Chamber
Enacted
What does this bill do?
The bill changes rules for floating‑home marinas in Marin County by limiting annual berth rent increases to the local change in the cost‑of‑living index, with a minimum 3% and a 7.5% cap and special treatment if the index rises above 5%. It also lets a marina set a new initial rent after certain long‑lease in‑place home sales subject to caps tied to sale price or percentage (the buyer must certify the sale price under penalty of perjury), requires fees to reflect actual costs, and bans fees for enforcing marina rules.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Existing law, the Floating Home Residency Law, prescribes various terms and conditions on tenancies in floating home marinas, as defined. Existing law, until January 1, 2030, prohibits management of a floating home marina located in the Counties of Alameda, Contra Costa, or Marin from increasing the gross rental rate for a tenancy for a floating home berth in a floating home marina more than 3% plus the percentage change in the cost of living, or 5%, whichever is lower, of the lowest gross rental rate charged for a tenancy at any time during the 12 months prior to the effective date of the increase. Existing law prohibits management of a floating home marina from increasing the rent of a new homeowner that purchases a floating home in the marina if the purchase qualifies as an in-place transfer, as defined.
This bill would, until January 1, 2038, prohibit management of a floating home marina located in the County of Marin from increasing the above-described rent more than the percent change in the cost of living, as specified, over the course of any 12-month period. The bill would require management to provide notice of any rental rate increases to each homeowner, as specified. The bill would specify that its provisions apply to rent increases for a tenancy in a floating home marina occurring on or after July 1, 2025. The bill would provide that in the event that management increases the rent by more than the amount specified above between July 1, 2025, and January 1, 2026, then the applicable rent on January 1, 2026, is the rent as of July 1, 2025, plus the maximum permissible increase, and that management is not liable to the homeowner for any corresponding rent overpayment.
This bill would, until January 1, 2038, in the event that an in-place transfer of a floating home involves the sale of a floating home subject to an existing lease with a 10-year or longer term or that was offered a lease of that term between 2 years and 6 months prior to the time of the sale, except as specified, permit management of a floating home marina located in the County of Marin to establish a new initial rental rate for a prospective homeowner, subject to specified conditions, including that the final sale price of the home provided to the marina owner shall be certified and substantiated in writing to be true under penalty of perjury by the buyer. By expanding the crime of perjury, this bill would impose a state-mandated local program.
This bill would exempt specified floating home berths from the rental rate increase limitations. The bill would void any waiver of the rights provided under these provisions and would provide that its provisions do not affect specified authority of local governments.
Existing law prohibits a homeowner from being charged a fee when obtaining a rental agreement on a floating home berth for a term of 12 months or a lesser period, or for charges other than rent, utilities, and incidental charges, as specified.
This bill would, until January 1, 2038, for a floating home marina located in the County of Marin, require that fees for utilities and incidental reasonable charges reflect actual costs, and would require a marina owner to demonstrate for all fees charged to a homeowner that the service was, or is currently being, actually rendered. The bill would prohibit marina owners from charging a fee to a homeowner for enforcement of marina rules.
This bill would make conforming changes.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Marin.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, the Floating Home Residency Law, prescribes various terms and conditions on tenancies in floating home marinas, as defined. Existing law, until January 1, 2030, prohibits management of a floating home marina located in the Counties of Alameda, Contra Costa, or Marin from increasing the gross rental rate for a tenancy for a floating home berth in a floating home marina more than 3% plus the percentage change in the cost of living, or 5%, whichever is lower, of the lowest gross rental rate charged for a tenancy at any time during the 12 months prior to the effective date of the increase. Existing law prohibits management of a floating home marina from increasing the rent of a new homeowner that purchases a floating home in the marina if the purchase qualifies as an in-place transfer, as defined.
This bill would, until January 1, 2038, prohibit management of a floating home marina located in the County of Marin from increasing the above-described rent more than the percent change in the cost of living, as specified, over the course of any 12-month period. The bill would require management to provide notice of any rental rate increases to each homeowner, as specified. The bill would specify that its provisions apply to rent increases for a tenancy in a floating home marina occurring on or after July 1, 2025. The bill would provide that in the event that management increases the rent by more than the amount specified above between July 1, 2025, and January 1, 2026, then the applicable rent on January 1, 2026, is the rent as of July 1, 2025, plus the maximum permissible increase, and that management is not liable to the homeowner for any corresponding rent overpayment.
This bill would, until January 1, 2038, in the event that an in-place transfer of a floating home involves the sale of a floating home subject to an existing lease with a 10-year or longer term or that was offered a lease of that term between 2 years and 6 months prior to the time of the sale, except as specified, permit management of a floating home marina located in the County of Marin to establish a new initial rental rate for a prospective homeowner, subject to specified conditions, including that the final sale price of the home provided to the marina owner shall be certified and substantiated in writing to be true under penalty of perjury by the buyer. By expanding the crime of perjury, this bill would impose a state-mandated local program.
This bill would exempt specified floating home berths from the rental rate increase limitations. The bill would void any waiver of the rights provided under these provisions and would provide that its provisions do not affect specified authority of local governments.
Existing law prohibits a homeowner from being charged a fee when obtaining a rental agreement on a floating home berth for a term of 12 months or a lesser period, or for charges other than rent, utilities, and incidental charges, as specified.
This bill would, until January 1, 2038, for a floating home marina located in the County of Marin, require that fees for utilities and incidental reasonable charges reflect actual costs, and would require a marina owner to demonstrate for all fees charged to a homeowner that the service was, or is currently being, actually rendered. The bill would prohibit marina owners from charging a fee to a homeowner for enforcement of marina rules.
This bill would make conforming changes.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Marin.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, the Floating Home Residency Law, prescribes various terms and conditions on tenancies in floating home marinas, as defined. Existing law, until January 1, 2030, prohibits management of a floating home marina located in the Counties of Alameda, Contra Costa, or Marin from increasing the gross rental rate for a tenancy for a floating home berth in a floating home marina more than 3% plus the percentage change in the cost of living, or 5%, whichever is lower, of the lowest gross rental rate charged for a tenancy at any time during the 12 months prior to the effective date of the increase. Existing law prohibits management of a floating home marina from increasing the rent of a new homeowner that purchases a floating home in the marina if the purchase qualifies as an in-place transfer, as defined.
This bill would, until January 1, 2038, prohibit management of a floating home marina located in the County of Marin from increasing the above-described rent more than the percent change in the cost of living, as specified, over the course of any 12-month period. The bill would require management to provide notice of any rental rate increases to each homeowner, as specified. The bill would specify that its provisions apply to rent increases for a tenancy in a floating home marina occurring on or after July 1, 2025. The bill would provide that in the event that management increases the rent by more than the amount specified above between July 1, 2025, and January 1, 2026, then the applicable rent on January 1, 2026, is the rent as of July 1, 2025, plus the maximum permissible increase, and that management is not liable to the homeowner for any corresponding rent overpayment.
This bill would, until January 1, 2038, in the event that an in-place transfer of a floating home involves the sale of a floating home subject to an existing lease with a 10-year or longer term or that was offered a lease of that term between 2 years and 6 months prior to the time of the sale, except as specified, permit management of a floating home marina located in the County of Marin to establish a new initial rental rate for a prospective homeowner, subject to specified conditions, including that the final sale price of the home provided to the marina owner shall be certified and substantiated in writing to be true under penalty of perjury by the buyer. By expanding the crime of perjury, this bill would impose a state-mandated local program.
This bill would exempt specified floating home berths from the rental rate increase limitations. The bill would void any waiver of the rights provided under these provisions and would provide that its provisions do not affect specified authority of local governments.
Existing law prohibits a homeowner from being charged a fee when obtaining a rental agreement on a floating home berth for a term of 12 months or a lesser period, or for charges other than rent, utilities, and incidental charges, as specified.
This bill would, until January 1, 2038, for a floating home marina located in the County of Marin, require that fees for utilities and incidental reasonable charges reflect actual costs, and would require a marina owner to demonstrate for all fees charged to a homeowner that the service was, or is currently being, actually rendered. The bill would prohibit marina owners from charging a fee to a homeowner for enforcement of marina rules.
This bill would make conforming changes.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Marin.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The Porter-Cologne Water Quality Control Act establishes a statewide program for the control of the quality of all the waters of the state. The act authorizes the State Water Resources Control Board, a California regional water quality control board, or a publicly owned treatment works to require a discharger, as defined, to complete a pollution prevention plan if the discharger meets certain criteria.This bill would repeal certain inoperative provisions of law relating to these pollution prevention plans and would make conforming and nonsubstantive changes in the law relating to the plans.The Porter-Cologne Water Quality Control Act establishes a statewide program for the control of the quality of all the waters of the state. The act authorizes the State Water Resources Control Board, a California regional water quality control board, or a publicly owned treatment works to require a discharger, as defined, to complete a pollution prevention plan if the discharger meets certain criteria.
This bill would repeal certain inoperative provisions of law relating to these pollution prevention plans and would make conforming and nonsubstantive changes in the law relating to the plans.
Existing law establishes a stewardship program, under which a manufacturer or distributor of covered drugs or specified sharps, or other entity defined to be covered, is required to establish and operate, either on its own or as part of a group of covered entities through membership in a stewardship organization, a stewardship program for covered drugs or for specified sharps, as applicable. Existing law requires the Department of Resources Recycling and Recovery to adopt regulations for the administration of the program. Existing law defines the terms stewardship organization, stewardship plan, and stewardship program for purposes of the program. For purposes of the program, existing law establishes the Pharmaceutical and Sharps Stewardship Fund and the Pharmaceutical and Sharps Stewardship Penalty Account within the fund.This bill would delete the terms stewardship organization, stewardship plan, and stewardship program and would replace them with the terms producer responsibility organization, producer responsibility plan and producer responsibility program, respectively. The bill would, for purposes of the program, define producer responsibility organization to have the same meaning as stewardship organization, producer responsibility plan to have the same meaning as stewardship plan, and producer responsibility program to have the same meaning as stewardship program. The bill would rename the Pharmaceutical and Sharps Stewardship Fund as the Pharmaceutical and Sharps Producer Responsibility Fund and would rename the Pharmaceutical and Sharps Stewardship Penalty Account as the Pharmaceutical and Sharps Producer Responsibility Penalty Account.Existing law establishes a stewardship program, under which a manufacturer or distributor of covered drugs or specified sharps, or other entity defined to be covered, is required to establish and operate, either on its own or as part of a group of covered entities through membership in a stewardship organization, a stewardship program for covered drugs or for specified sharps, as applicable. Existing law requires the Department of Resources Recycling and Recovery to adopt regulations for the administration of the program. Existing law defines the terms stewardship organization, stewardship plan, and stewardship program for purposes of the program. For purposes of the program, existing law establishes the Pharmaceutical and Sharps Stewardship Fund and the Pharmaceutical and Sharps Stewardship Penalty Account within the fund.
This bill would delete the terms stewardship organization, stewardship plan, and stewardship program and would replace them with the terms producer responsibility organization, producer responsibility plan and producer responsibility program, respectively. The bill would, for purposes of the program, define producer responsibility organization to have the same meaning as stewardship organization, producer responsibility plan to have the same meaning as stewardship plan, and producer responsibility program to have the same meaning as stewardship program. The bill would rename the Pharmaceutical and Sharps Stewardship Fund as the Pharmaceutical and Sharps Producer Responsibility Fund and would rename the Pharmaceutical and Sharps Stewardship Penalty Account as the Pharmaceutical and Sharps Producer Responsibility Penalty Account.
Existing law, as part of the hazardous waste control laws, requires a person wishing to operate as a certified appliance recycler to apply to obtain or renew certification from the Department of Toxic Substances Control. Existing law requires the department to review the application and, if the application is complete and meets specified requirements, to issue a numbered certificate to the applicant. Existing law requires the department, upon issuance of a certificate, to transmit the application and certification to the certified unified program agency in whose jurisdiction the person is located. Existing law requires the certified unified program agency to inspect, as soon as is practicable, the certified appliance recycling facility, as specified.This bill would delete the requirement that the inspection be conducted as soon as is practicable and would require a certified unified program agency, following an inspection of a certified appliance recycling facility, to transmit the results of the inspection to the department. By imposing a new duty on certified unified program agencies, the bill would impose a state-mandated local program. The bill would authorize the department to take any authorized enforcement action based on the results of the inspection and any other pertinent information. The bill would also make nonsubstantive corrections.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Existing law, as part of the hazardous waste control laws, requires a person wishing to operate as a certified appliance recycler to apply to obtain or renew certification from the Department of Toxic Substances Control. Existing law requires the department to review the application and, if the application is complete and meets specified requirements, to issue a numbered certificate to the applicant. Existing law requires the department, upon issuance of a certificate, to transmit the application and certification to the certified unified program agency in whose jurisdiction the person is located. Existing law requires the certified unified program agency to inspect, as soon as is practicable, the certified appliance recycling facility, as specified.
This bill would delete the requirement that the inspection be conducted as soon as is practicable and would require a certified unified program agency, following an inspection of a certified appliance recycling facility, to transmit the results of the inspection to the department. By imposing a new duty on certified unified program agencies, the bill would impose a state-mandated local program. The bill would authorize the department to take any authorized enforcement action based on the results of the inspection and any other pertinent information. The bill would also make nonsubstantive corrections.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(a)(1)Subject to subdivision (b), management shall not, over the course of any 12-month period, increase the gross rental rate for a tenancy for a floating home berth in a floating home marina more than 3 percent plus the percentage change in the cost of living, or 5 percent, whichever is lower, of the lowest gross rental rate charged for a tenancy at any time during the 12 months prior to the effective date of the increase.
(2)If the same homeowner maintains a tenancy over any 12-month period, the gross rental rate for the tenancy shall not be increased in more than two increments over that 12-month period, subject to the other restrictions of this subdivision governing gross rental rate increases.
(b)(1)For a new tenancy in which no homeowner from the prior tenancy remains in lawful possession of the floating home berth, management may establish the initial rental rate not subject to subdivision (a). However, if the applicable local agency or jurisdiction has adopted an ordinance, rule, regulation, or initiative measure that limits the allowable rental rate for a new tenancy, that ordinance, rule, regulation, or initiative measure shall apply. Subdivision (a) shall be applicable to subsequent increases after the initial rental rate has been established, except as otherwise provided in this section.
(2)Notwithstanding paragraph (1), management shall not impose an increase in rent on a homeowner that purchases a floating home if the purchase qualifies as an in-place transfer, and the initial rental rate shall be set at the rental rate of the previous tenancy. Subdivision (a) shall be applicable to subsequent increases after the initial rental rate has been established.
(c)Management shall provide notice of any increase in the rental rate, pursuant to subdivision (a), to each homeowner in accordance with Section 800.40.
(d)Subdivision (a) shall not apply to a tenancy for any of the following:
(1)A floating home berth restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.
(2)A floating home berth subject to any ordinance, rule, regulation, or initiative measure that restricts annual increases in the rental rate to an amount less than that provided in subdivision (a).
(e)(1)This section shall apply to all rent increases occurring on or after January 1, 2022.
(2)In the event that management has increased the rent by more than the amount permissible under subdivision (a) between January 1, 2022, and January 1, 2023, both of the following shall apply:
(A)The applicable rent on January 1, 2023, shall be the rent as of January 1, 2022, plus the maximum permissible increase under subdivision (a).
(B)Management shall not be liable to a homeowner for any corresponding rent overpayment.
(f)Any waiver of the rights under this section shall be void as contrary to public policy.
(g)For the purposes of this section:
(1)Consumer Price Index for All Urban Consumers for All Items means the CPI-U for the San Francisco-Oakland-Hayward metropolitan area, or any successor metropolitan area index.
(2)(A)Percentage change in the cost of living means the percentage change in the applicable CPI-U, as described in paragraph (1) and computed pursuant to subparagraph (B) of this paragraph.
(B)(i)For rent increases that take effect before August 1 of any calendar year, the following shall apply:
(I)The percentage change shall be the percentage change in the amount published for April of the immediately preceding calendar year and April of the year before that.
(II)If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of the immediately preceding calendar year and March of the year before that.
(ii)For rent increases that take effect on or after August 1 of any calendar year, the following shall apply:
(I)The percentage change shall be the percentage change in the amount published for April of that calendar year and April of the immediately preceding calendar year.
(II)If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of that calendar year and March of the immediately preceding calendar year.
(iii)The percentage change shall be rounded to the nearest one-tenth of 1 percent.
(3)In place transfer means the sale of a floating home where the floating home is transferred by a homeowner to a subsequent homeowner and remains docked at the same berth.
(h)(1)Nothing in this section affects the authority of a local government to adopt or maintain an ordinance, rule, regulation, or initiative measure that establishes a maximum amount that may be charged for rent or the rental rate for a new tenancy, including any ordinance, rule, regulation, or initiative measure adopted before the effective date of this section. However, if a local ordinance, rule, regulation, or initiative measure allows for the rental rate for a new tenancy or a rental rate increase greater than that provided in subdivision (a), this section shall apply.
(2)This section is not intended to express any policy regarding the appropriate, allowable rental rate increase limitations imposed by ordinance, rule, regulation, or initiative measure regulating rent increases adopted before or after the effective date of this section.
(i)This section shall only apply to floating home marinas in the following counties:
(1)The County of Alameda.
(2)The County of Contra Costa.
(3)The County of Marin, until Section 800.40.6 becomes operative.
(j)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
SEC. 2.Section 800.40.6 is added to the Civil Code, to read:800.40.6.(a)For the purposes of this section, the following definitions apply:
(1)Consumer Price Index for All Urban Consumers for All Items or CPI-U means the Consumer Price Index for All Urban Consumers for All Items for the San Francisco-Oakland-Hayward metropolitan area, or any successor metropolitan area index.
(2)(A)Percentage change in the cost of living means the percentage change in the applicable CPI-U, as described in paragraph (1) and computed pursuant to subparagraph (B).
(B)(i)For rent increases that take effect before August 1 of any calendar year, both of the following shall apply:
(I)The percentage change shall be the percentage change in the amount published for April of the immediately preceding calendar year and April of the year before that.
(II)If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of the immediately preceding calendar year and March of the year before that.
(ii)For rent increases that take effect on or after August 1 of any calendar year, both of the following shall apply:
(I)The percentage change shall be the percentage change in the amount published for April of that calendar year and April of the immediately preceding calendar year.
(II)If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of that calendar year and March of the immediately preceding calendar year.
(iii)The percentage change shall be rounded to the nearest one-tenth of 1 percent.
(3)In place transfer means the sale of a floating home where the floating home is transferred by a homeowner to a subsequent homeowner and remains docked at the same berth.
(b)(1)Except as provided by this subdivision, management shall not, over the course of any 12-month period, increase the gross rental rate for a tenancy for a floating home berth in a floating home marina more than the percent change in the cost of living. If the gross rental rate is increased, the increase shall be a minimum of 3 percent and a maximum of 7.5 percent.
(2)If the annual percent change in the cost of living exceeds 5 percent, only one-half of the percent change in cost of living that is in excess of 5 percent may be used to increase the gross rental rate up to the maximum allowable increase of 7.5 percent.
(3)(A)This subdivision shall apply to all rent increases occurring on or after July 1, 2025.
(B)In the event that management has increased the rent by more than the amount permissible under this subdivision between July 1, 2025, and January 1, 2026, both of the following shall apply:
(i)The applicable rent on January 1, 2026, shall be the rent as of July 1, 2025, plus the maximum permissible increase under this subdivision.
(ii)Management shall not be liable to a homeowner for any corresponding rent overpayment.
(4)Management shall provide notice of any increase in the rental rate, pursuant to this subdivision, to each homeowner in accordance with Section 800.40.
(c)(1)In the event a qualifying in-place transfer of a floating home involves the sale of a floating home either subject to an existing lease with a 10-year or longer term or that was offered a lease with a 10-year or longer term between two years and six months prior to the time of the home sale, management may establish a new initial rental rate for a prospective homeowner consistent with the following requirements:
(A)Except as specified in subparagraph (B), the new initial rental rate shall not exceed the lesser of either of the following:
(i)A 25-percent increase over the rental rate prior to the sale.
(ii)Fifteen-hundredths of 1 percent of the sale price of the home.
(B)If the formula described in subparagraph (A) results in a new initial rental rate that is less than a 3-percent increase over the rental rate immediately prior to the time of the home sale, the new initial rental rate shall not exceed the rental rate immediately prior to the time of the home sale plus the most recent percent change in the cost of living, which shall be a minimum increase of 3 percent and a maximum increase of 5 percent.
(C)The final sale price of the home provided to the marina owner shall be certified and substantiated in writing by the buyer to be true under penalty of perjury, as defined in Section 2015.5 of the Code of Civil Procedure.
(D)Lease terms offered after an in-place transfer shall be at least 10 years.
(E)In the event a floating home sold pursuant to this subdivision is sold again within five years, the new total monthly initial rental rate shall not exceed the lesser of either of the following:
(i)A 15-percent increase over the rent prior to the sale.
(ii)Fifteen-hundredths of 1 percent of the sale price of the home.
(2)Notwithstanding the limitations described in paragraph (1), this subdivision shall additionally apply to all in-place transfers occurring between July 1, 2025, and July 1, 2026, regardless of whether the floating home was subject to an existing lease with a 10-year or longer term or was offered a lease with a 10-year or longer term between two years and six months prior to the time of the home sale.
(d)The requirements of subdivisions (b) and (c) shall not apply to a tenancy for any of the following:
(1)A floating home berth restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.
(2)A floating home berth subject to any ordinance, rule, regulation, or initiative measure that allows annual increases in the rental rate up to an amount less than that provided in subdivision (b) or (c).
(e)Any waiver of the rights under this section shall be void as contrary to public policy.
(f)(1)Nothing in this section affects the authority of a local government to adopt or maintain an ordinance, rule, regulation, or initiative measure that establishes a maximum amount that may be charged for rent or the rental rate for a new tenancy, including any ordinance, rule, regulation, or initiative measure adopted before the effective date of this section. However, if a local ordinance, rule, regulation, or initiative measure allows for the rental rate for a new tenancy or a rental rate increase greater than that provided in subdivision (b) or (c), this section shall apply.
(2)This section is not intended to express any policy regarding the appropriate, allowable rental rate increase limitations imposed by ordinance, rule, regulation, or initiative measure regulating rent increases adopted before or after the effective date of this section.
(g)This section shall apply only to floating home marinas in the County of Marin.
(h)This section shall remain in effect only until January 1, 2038, and as of that date is repealed.
SEC. 3.Section 800.41 of the Civil Code is amended to read:800.41.(a)A homeowner shall not be charged a fee for other than rent, utilities, and incidental reasonable charges for services actually rendered.
(b)A homeowner shall not be charged a fee for obtaining a rental agreement on a floating home berth for (1) a term of 12 months, or (2) a lesser period as mutually agreed upon by both the homeowner and the management. A fee may be charged for a rental agreement of more than one year if the fee is mutually agreed upon by both the homeowner and management.
(c)Notwithstanding subdivisions (a) and (b), the following shall apply to floating home marinas within the County of Marin:
(1)(A)Fees for utilities and incidental reasonable charges for services actually rendered to a homeowner shall reflect actual costs.
(B)A marina owner shall demonstrate for all fees charged to a homeowner that the service was, or is currently being, actually rendered.
(2)A marina owner shall not charge a homeowner a fee for enforcement of a marinas rules and regulations.
(d)This section shall remain in effect only until January 1, 2038, and as of that date is repealed.
SEC. 4.Section 800.41 is added to the Civil Code, to read:800.41.(a)A homeowner shall not be charged a fee for other than rent, utilities, and incidental reasonable charges for services actually rendered.
(b)A homeowner shall not be charged a fee for obtaining a rental agreement on a floating home berth for (1) a term of 12 months, or (2) a lesser period as mutually agreed upon by both the homeowner and the management. A fee may be charged for a rental agreement of more than one year if the fee is mutually agreed upon by both the homeowner and management.
(c)This section shall become operative on January 1, 2038.
SEC. 5.The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of floating home marinas in the County of Marin that have been operating with 10-year or longer leases. The design of 10-year or longer leases was to increase long-term financial security of current tenants, with the understanding that when a home is sold to a new owner management would have an opportunity to increase berth rental rates beyond existing caps to reflect market conditions. This lease structure enabled management to support needed capital improvements at a floating home marina with a minimal cost burden to current tenants. Without this exemption, marina management will not be able to adequately finance future necessary capital improvements that benefit both marina owners and floating homeowners.
SEC. 6.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)(1)Subject to subdivision (b), management shall not, over the course of any 12-month period, increase the gross rental rate for a tenancy for a floating home berth in a floating home marina more than 3 percent plus the percentage change in the cost of living, or 5 percent, whichever is lower, of the lowest gross rental rate charged for a tenancy at any time during the 12 months prior to the effective date of the increase.
(2)If the same homeowner maintains a tenancy over any 12-month period, the gross rental rate for the tenancy shall not be increased in more than two increments over that 12-month period, subject to the other restrictions of this subdivision governing gross rental rate increases.
(b)(1)For a new tenancy in which no homeowner from the prior tenancy remains in lawful possession of the floating home berth, management may establish the initial rental rate not subject to subdivision (a). However, if the applicable local agency or jurisdiction has adopted an ordinance, rule, regulation, or initiative measure that limits the allowable rental rate for a new tenancy, that ordinance, rule, regulation, or initiative measure shall apply. Subdivision (a) shall be applicable to subsequent increases after the initial rental rate has been established, except as otherwise provided in this section.
(2)Notwithstanding paragraph (1), management shall not impose an increase in rent on a homeowner that purchases a floating home if the purchase qualifies as an in-place transfer, and the initial rental rate shall be set at the rental rate of the previous tenancy. Subdivision (a) shall be applicable to subsequent increases after the initial rental rate has been established.
(c)Management shall provide notice of any increase in the rental rate, pursuant to subdivision (a), to each homeowner in accordance with Section 800.40.
(d)Subdivision (a) shall not apply to a tenancy for any of the following:
(1)A floating home berth restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.
(2)A floating home berth subject to any ordinance, rule, regulation, or initiative measure that restricts annual increases in the rental rate to an amount less than that provided in subdivision (a).
(e)(1)This section shall apply to all rent increases occurring on or after January 1, 2022.
(2)In the event that management has increased the rent by more than the amount permissible under subdivision (a) between January 1, 2022, and January 1, 2023, both of the following shall apply:
(A)The applicable rent on January 1, 2023, shall be the rent as of January 1, 2022, plus the maximum permissible increase under subdivision (a).
(B)Management shall not be liable to a homeowner for any corresponding rent overpayment.
(f)Any waiver of the rights under this section shall be void as contrary to public policy.
(g)For the purposes of this section:
(1)Consumer Price Index for All Urban Consumers for All Items means the CPI-U for the San Francisco-Oakland-Hayward metropolitan area, or any successor metropolitan area index.
(2)(A)Percentage change in the cost of living means the percentage change in the applicable CPI-U, as described in paragraph (1) and computed pursuant to subparagraph (B) of this paragraph.
(B)(i)For rent increases that take effect before August 1 of any calendar year, the following shall apply:
(I)The percentage change shall be the percentage change in the amount published for April of the immediately preceding calendar year and April of the year before that.
(II)If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of the immediately preceding calendar year and March of the year before that.
(ii)For rent increases that take effect on or after August 1 of any calendar year, the following shall apply:
(I)The percentage change shall be the percentage change in the amount published for April of that calendar year and April of the immediately preceding calendar year.
(II)If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of that calendar year and March of the immediately preceding calendar year.
(iii)The percentage change shall be rounded to the nearest one-tenth of 1 percent.
(3)In place transfer means the sale of a floating home where the floating home is transferred by a homeowner to a subsequent homeowner and remains docked at the same berth.
(h)(1)Nothing in this section affects the authority of a local government to adopt or maintain an ordinance, rule, regulation, or initiative measure that establishes a maximum amount that may be charged for rent or the rental rate for a new tenancy, including any ordinance, rule, regulation, or initiative measure adopted before the effective date of this section. However, if a local ordinance, rule, regulation, or initiative measure allows for the rental rate for a new tenancy or a rental rate increase greater than that provided in subdivision (a), this section shall apply.
(2)This section is not intended to express any policy regarding the appropriate, allowable rental rate increase limitations imposed by ordinance, rule, regulation, or initiative measure regulating rent increases adopted before or after the effective date of this section.
(i)This section shall only apply to floating home marinas in the following counties:
(1)The County of Alameda.
(2)The County of Contra Costa.
(3)The County of Marin, until Section 800.40.6 becomes operative.
(j)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
SEC. 2.Section 800.40.6 is added to the Civil Code, to read:800.40.6.(a)For the purposes of this section, the following definitions apply:
(1)Consumer Price Index for All Urban Consumers for All Items or CPI-U means the Consumer Price Index for All Urban Consumers for All Items for the San Francisco-Oakland-Hayward metropolitan area, or any successor metropolitan area index.
(2)(A)Percentage change in the cost of living means the percentage change in the applicable CPI-U, as described in paragraph (1) and computed pursuant to subparagraph (B).
(B)(i)For rent increases that take effect before August 1 of any calendar year, both of the following shall apply:
(I)The percentage change shall be the percentage change in the amount published for April of the immediately preceding calendar year and April of the year before that.
(II)If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of the immediately preceding calendar year and March of the year before that.
(ii)For rent increases that take effect on or after August 1 of any calendar year, both of the following shall apply:
(I)The percentage change shall be the percentage change in the amount published for April of that calendar year and April of the immediately preceding calendar year.
(II)If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of that calendar year and March of the immediately preceding calendar year.
(iii)The percentage change shall be rounded to the nearest one-tenth of 1 percent.
(3)In place transfer means the sale of a floating home where the floating home is transferred by a homeowner to a subsequent homeowner and remains docked at the same berth.
(b)(1)Except as provided by this subdivision, management shall not, over the course of any 12-month period, increase the gross rental rate for a tenancy for a floating home berth in a floating home marina more than the percent change in the cost of living. If the gross rental rate is increased, the increase shall be a minimum of 3 percent and a maximum of 7.5 percent.
(2)If the annual percent change in the cost of living exceeds 5 percent, only one-half of the percent change in cost of living that is in excess of 5 percent may be used to increase the gross rental rate up to the maximum allowable increase of 7.5 percent.
(3)(A)This subdivision shall apply to all rent increases occurring on or after July 1, 2025.
(B)In the event that management has increased the rent by more than the amount permissible under this subdivision between July 1, 2025, and January 1, 2026, both of the following shall apply:
(i)The applicable rent on January 1, 2026, shall be the rent as of July 1, 2025, plus the maximum permissible increase under this subdivision.
(ii)Management shall not be liable to a homeowner for any corresponding rent overpayment.
(4)Management shall provide notice of any increase in the rental rate, pursuant to this subdivision, to each homeowner in accordance with Section 800.40.
(c)(1)In the event a qualifying in-place transfer of a floating home involves the sale of a floating home either subject to an existing lease with a 10-year or longer term or that was offered a lease with a 10-year or longer term between two years and six months prior to the time of the home sale, management may establish a new initial rental rate for a prospective homeowner consistent with the following requirements:
(A)Except as specified in subparagraph (B), the new initial rental rate shall not exceed the lesser of either of the following:
(i)A 25-percent increase over the rental rate prior to the sale.
(ii)Fifteen-hundredths of 1 percent of the sale price of the home.
(B)If the formula described in subparagraph (A) results in a new initial rental rate that is less than a 3-percent increase over the rental rate immediately prior to the time of the home sale, the new initial rental rate shall not exceed the rental rate immediately prior to the time of the home sale plus the most recent percent change in the cost of living, which shall be a minimum increase of 3 percent and a maximum increase of 5 percent.
(C)The final sale price of the home provided to the marina owner shall be certified and substantiated in writing by the buyer to be true under penalty of perjury, as defined in Section 2015.5 of the Code of Civil Procedure.
(D)Lease terms offered after an in-place transfer shall be at least 10 years.
(E)In the event a floating home sold pursuant to this subdivision is sold again within five years, the new total monthly initial rental rate shall not exceed the lesser of either of the following:
(i)A 15-percent increase over the rent prior to the sale.
(ii)Fifteen-hundredths of 1 percent of the sale price of the home.
(2)Notwithstanding the limitations described in paragraph (1), this subdivision shall additionally apply to all in-place transfers occurring between July 1, 2025, and July 1, 2026, regardless of whether the floating home was subject to an existing lease with a 10-year or longer term or was offered a lease with a 10-year or longer term between two years and six months prior to the time of the home sale.
(d)The requirements of subdivisions (b) and (c) shall not apply to a tenancy for any of the following:
(1)A floating home berth restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.
(2)A floating home berth subject to any ordinance, rule, regulation, or initiative measure that allows annual increases in the rental rate up to an amount less than that provided in subdivision (b) or (c).
(e)Any waiver of the rights under this section shall be void as contrary to public policy.
(f)(1)Nothing in this section affects the authority of a local government to adopt or maintain an ordinance, rule, regulation, or initiative measure that establishes a maximum amount that may be charged for rent or the rental rate for a new tenancy, including any ordinance, rule, regulation, or initiative measure adopted before the effective date of this section. However, if a local ordinance, rule, regulation, or initiative measure allows for the rental rate for a new tenancy or a rental rate increase greater than that provided in subdivision (b) or (c), this section shall apply.
(2)This section is not intended to express any policy regarding the appropriate, allowable rental rate increase limitations imposed by ordinance, rule, regulation, or initiative measure regulating rent increases adopted before or after the effective date of this section.
(g)This section shall apply only to floating home marinas in the County of Marin.
(h)This section shall remain in effect only until January 1, 2038, and as of that date is repealed.
SEC. 3.Section 800.41 of the Civil Code is amended to read:800.41.(a)A homeowner shall not be charged a fee for other than rent, utilities, and incidental reasonable charges for services actually rendered.
(b)A homeowner shall not be charged a fee for obtaining a rental agreement on a floating home berth for (1) a term of 12 months, or (2) a lesser period as mutually agreed upon by both the homeowner and the management. A fee may be charged for a rental agreement of more than one year if the fee is mutually agreed upon by both the homeowner and management.
(c)Notwithstanding subdivisions (a) and (b), the following shall apply to floating home marinas within the County of Marin:
(1)(A)Fees for utilities and incidental reasonable charges for services actually rendered to a homeowner shall reflect actual costs.
(B)A marina owner shall demonstrate for all fees charged to a homeowner that the service was, or is currently being, actually rendered.
(2)A marina owner shall not charge a homeowner a fee for enforcement of a marinas rules and regulations.
(d)This section shall remain in effect only until January 1, 2038, and as of that date is repealed.
SEC. 4.Section 800.41 is added to the Civil Code, to read:800.41.(a)A homeowner shall not be charged a fee for other than rent, utilities, and incidental reasonable charges for services actually rendered.
(b)A homeowner shall not be charged a fee for obtaining a rental agreement on a floating home berth for (1) a term of 12 months, or (2) a lesser period as mutually agreed upon by both the homeowner and the management. A fee may be charged for a rental agreement of more than one year if the fee is mutually agreed upon by both the homeowner and management.
(c)This section shall become operative on January 1, 2038.
SEC. 5.The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of floating home marinas in the County of Marin that have been operating with 10-year or longer leases. The design of 10-year or longer leases was to increase long-term financial security of current tenants, with the understanding that when a home is sold to a new owner management would have an opportunity to increase berth rental rates beyond existing caps to reflect market conditions. This lease structure enabled management to support needed capital improvements at a floating home marina with a minimal cost burden to current tenants. Without this exemption, marina management will not be able to adequately finance future necessary capital improvements that benefit both marina owners and floating homeowners.
SEC. 6.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)(1)Subject to subdivision (b), management shall not, over the course of any 12-month period, increase the gross rental rate for a tenancy for a floating home berth in a floating home marina more than 3 percent plus the percentage change in the cost of living, or 5 percent, whichever is lower, of the lowest gross rental rate charged for a tenancy at any time during the 12 months prior to the effective date of the increase.
(2)If the same homeowner maintains a tenancy over any 12-month period, the gross rental rate for the tenancy shall not be increased in more than two increments over that 12-month period, subject to the other restrictions of this subdivision governing gross rental rate increases.
(b)(1)For a new tenancy in which no homeowner from the prior tenancy remains in lawful possession of the floating home berth, management may establish the initial rental rate not subject to subdivision (a). However, if the applicable local agency or jurisdiction has adopted an ordinance, rule, regulation, or initiative measure that limits the allowable rental rate for a new tenancy, that ordinance, rule, regulation, or initiative measure shall apply. Subdivision (a) shall be applicable to subsequent increases after the initial rental rate has been established, except as otherwise provided in this section.
(2)Notwithstanding paragraph (1), management shall not impose an increase in rent on a homeowner that purchases a floating home if the purchase qualifies as an in-place transfer, and the initial rental rate shall be set at the rental rate of the previous tenancy. Subdivision (a) shall be applicable to subsequent increases after the initial rental rate has been established.
(c)Management shall provide notice of any increase in the rental rate, pursuant to subdivision (a), to each homeowner in accordance with Section 800.40.
(d)Subdivision (a) shall not apply to a tenancy for any of the following:
(1)A floating home berth restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.
(2)A floating home berth subject to any ordinance, rule, regulation, or initiative measure that restricts annual increases in the rental rate to an amount less than that provided in subdivision (a).
(e)(1)(A)This section shall apply to all rent increases occurring on or after January 1, 2022.
(B)This section shall become operative January 1, 2023.(2)In the event that management has increased the rent by more than the amount permissible under subdivision (a) between January 1, 2022, and January 1, 2023, both of the following shall apply:
(A)The applicable rent on January 1, 2023, shall be the rent as of January 1, 2022, plus the maximum permissible increase under subdivision (a).
(B)Management shall not be liable to a homeowner for any corresponding rent overpayment.
(f)Any waiver of the rights under this section shall be void as contrary to public policy.
(g)For the purposes of this section:
(1)Consumer Price Index for All Urban Consumers for All Items means the CPI-U for the San Francisco-Oakland-Hayward metropolitan area, or any successor metropolitan area index.
(2)(A)Percentage change in the cost of living means the percentage change in the applicable CPI-U, as described in paragraph (1) and computed pursuant to subparagraph (B) of this paragraph.
(B)(i)For rent increases that take effect before August 1 of any calendar year, the following shall apply:
(I)The percentage change shall be the percentage change in the amount published for April of the immediately preceding calendar year and April of the year before that.
(II)If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of the immediately preceding calendar year and March of the year before that.
(ii)For rent increases that take effect on or after August 1 of any calendar year, the following shall apply:
(I)The percentage change shall be the percentage change in the amount published for April of that calendar year and April of the immediately preceding calendar year.
(II)If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of that calendar year and March of the immediately preceding calendar year.
(iii)The percentage change shall be rounded to the nearest one-tenth of 1 percent.
(3)In place transfer means the sale of a floating home where the floating home is transferred by a homeowner to a subsequent homeowner and remains docked at the same berth.
(h)(1)Nothing in this section affects the authority of a local government to adopt or maintain an ordinance, rule, regulation, or initiative measure that establishes a maximum amount that may be charged for rent or the rental rate for a new tenancy, including any ordinance, rule, regulation, or initiative measure adopted before the effective date of this section. However, if a local ordinance, rule, regulation, or initiative measure allows for the rental rate for a new tenancy or a rental rate increase greater than that provided in subdivision (a), this section shall apply.
(2)This section is not intended to express any policy regarding the appropriate, allowable rental rate increase limitations imposed by ordinance, rule, regulation, or initiative measure regulating rent increases adopted before or after the effective date of this section.
(i)This section shall only apply to floating home marinas in the Counties of Alameda, Contra Costa, and Marin. following counties:
(1)The County of Alameda.
(2)The County of Contra Costa.
(3)The County of Marin, until Section 800.40.6 becomes operative.
(j)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
SEC. 2.Section 800.40.6 is added to the Civil Code, to read:800.40.6.(a)For the purposes of this section, the following definitions apply:
(1)Consumer Price Index for All Urban Consumers for All Items or CPI-U means the Consumer Price Index for All Urban Consumers for All Items for the San Francisco-Oakland-Hayward metropolitan area, or any successor metropolitan area index.
(2)(A)Percentage change in the cost of living means the percentage change in the applicable CPI-U, as described in paragraph (1) and computed pursuant to subparagraph (B).
(B)(i)For rent increases that take effect before August 1 of any calendar year, both of the following shall apply:
(I)The percentage change shall be the percentage change in the amount published for April of the immediately preceding calendar year and April of the year before that.
(II)If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of the immediately preceding calendar year and March of the year before that.
(ii)For rent increases that take effect on or after August 1 of any calendar year, both of the following shall apply:
(I)The percentage change shall be the percentage change in the amount published for April of that calendar year and April of the immediately preceding calendar year.
(II)If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of that calendar year and March of the immediately preceding calendar year.
(iii)The percentage change shall be rounded to the nearest one-tenth of 1 percent.
(3)In place transfer means the sale of a floating home where the floating home is transferred by a homeowner to a subsequent homeowner and remains docked at the same berth.
(b)(1)Except as provided by this subdivision, management shall not, over the course of any 12-month period, increase the gross rental rate for a tenancy for a floating home berth in a floating home marina more than the percent change in the cost of living. If the gross rental rate is increased, the increase shall be a minimum of 3 percent and a maximum of 7.5 percent.
(2)If the annual percent change in the cost of living exceeds 5 percent, only one-half of the percent change in cost of living that is in excess of 5 percent may be used to increase the gross rental rate up to the maximum allowable increase of 7.5 percent.
(3)(A)This subdivision shall apply to all rent increases occurring on or after July 1, 2025.
(B)In the event that management has increased the rent by more than the amount permissible under this subdivision between July 1, 2025, and January 1, 2026, both of the following shall apply:
(i)The applicable rent on January 1, 2026, shall be the rent as of July 1, 2025, plus the maximum permissible increase under this subdivision.
(ii)Management shall not be liable to a homeowner for any corresponding rent overpayment.
(4)Management shall provide notice of any increase in the rental rate, pursuant to this subdivision, to each homeowner in accordance with Section 800.40.
(c)(1)In the event a qualifying in-place transfer of a floating home involves the sale of a floating home either subject to an existing lease with a 10-year or longer term or that was offered a lease with a 10-year or longer term between two years and six months prior to the time of the home sale, management may establish a new initial rental rate for a prospective homeowner consistent with the following requirements:
(A)Except as specified in subparagraph (B), the new initial rental rate shall not exceed the lesser of either of the following:
(i)A 25-percent increase over the rental rate prior to the sale.
(ii)Fifteen-hundredths of 1 percent of the sale price of the home.
(B)If the formula described in subparagraph (A) results in a new initial rental rate that is less than a 3-percent increase over the rental rate immediately prior to the time of the home sale, the new initial rental rate shall not exceed the rental rate immediately prior to the time of the home sale plus the most recent percent change in the cost of living, which shall be a minimum increase of 3 percent and a maximum increase of 5 percent.
(C)The final sale price of the home provided to the marina owner shall be certified and substantiated in writing by the buyer to be true under penalty of perjury, as defined in Section 2015.5 of the Code of Civil Procedure.
(D)Lease terms offered after an in-place transfer shall be at least 10 years.
(E)In the event a floating home sold pursuant to this subdivision is sold again within five years, the new total monthly initial rental rate shall not exceed the lesser of either of the following:
(i)A 15-percent increase over the rent prior to the sale.
(ii)Fifteen-hundredths of 1 percent of the sale price of the home.
(2)Notwithstanding the limitations described in paragraph (1), this subdivision shall additionally apply to all in-place transfers occurring between July 1, 2025, and July 1, 2026, regardless of whether the floating home was subject to an existing lease with a 10-year or longer term or was offered a lease with a 10-year or longer term between two years and six months prior to the time of the home sale.
(d)The requirements of subdivisions (b) and (c) shall not apply to a tenancy for any of the following:
(1)A floating home berth restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.
(2)A floating home berth subject to any ordinance, rule, regulation, or initiative measure that allows annual increases in the rental rate up to an amount less than that provided in subdivision (b) or (c).
(e)Any waiver of the rights under this section shall be void as contrary to public policy.
(f)(1)Nothing in this section affects the authority of a local government to adopt or maintain an ordinance, rule, regulation, or initiative measure that establishes a maximum amount that may be charged for rent or the rental rate for a new tenancy, including any ordinance, rule, regulation, or initiative measure adopted before the effective date of this section. However, if a local ordinance, rule, regulation, or initiative measure allows for the rental rate for a new tenancy or a rental rate increase greater than that provided in subdivision (b) or (c), this section shall apply.
(2)This section is not intended to express any policy regarding the appropriate, allowable rental rate increase limitations imposed by ordinance, rule, regulation, or initiative measure regulating rent increases adopted before or after the effective date of this section.
(g)This section shall apply only to floating home marinas in the County of Marin.
(h)This section shall remain in effect only until January 1, 2038, and as of that date is repealed.
SEC. 3.Section 800.41 of the Civil Code is amended to read:800.41.(a)A homeowner shall not be charged a fee for other than rent, utilities, and incidental reasonable charges for services actually rendered.
A(b)A homeowner shall not be charged a fee for obtaining a rental agreement on a floating home berth for (1) a term of 12 months, or (2) a lesser period as mutually agreed upon by both the homeowner and the management. A fee may be charged for a rental agreement of more than one year if the fee is mutually agreed upon by both the homeowner and management.
(c)Notwithstanding subdivisions (a) and (b), the following shall apply to floating home marinas within the County of Marin:
(1)(A)Fees for utilities and incidental reasonable charges for services actually rendered to a homeowner shall reflect actual costs.
(B)A marina owner shall demonstrate for all fees charged to a homeowner that the service was, or is currently being, actually rendered.
(2)A marina owner shall not charge a homeowner a fee for enforcement of a marinas rules and regulations.
(d)This section shall remain in effect only until January 1, 2038, and as of that date is repealed.
SEC. 4.Section 800.41 is added to the Civil Code, to read:800.41.(a)A homeowner shall not be charged a fee for other than rent, utilities, and incidental reasonable charges for services actually rendered.
(b)A homeowner shall not be charged a fee for obtaining a rental agreement on a floating home berth for (1) a term of 12 months, or (2) a lesser period as mutually agreed upon by both the homeowner and the management. A fee may be charged for a rental agreement of more than one year if the fee is mutually agreed upon by both the homeowner and management.
(c)This section shall become operative on January 1, 2038.
SEC. 5.The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of floating home marinas in the County of Marin that have been operating with 10-year or longer leases. The design of 10-year or longer leases was to increase long-term financial security of current tenants, with the understanding that when a home is sold to a new owner management would have an opportunity to increase berth rental rates beyond existing caps to reflect market conditions. This lease structure enabled management to support needed capital improvements at a floating home marina with a minimal cost burden to current tenants. Without this exemption, marina management will not be able to adequately finance future necessary capital improvements that benefit both marina owners and floating homeowners.
SEC. 6.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
All matter omitted in this version of the bill appears in the bill as amended in the Assembly, April 21, 2025. (JR11)(a)The Legislature finds and declares that pollution prevention should be the first step in a hierarchy for reducing pollution and managing wastes, and to achieve environmental stewardship for society. The Legislature also finds and declares that pollution prevention is necessary to support the federal goal of zero discharge of pollutants into navigable waters.
(b)(1)For the purposes of this section, pollution prevention means any action that causes a net reduction in the use or generation of a hazardous substance or other pollutant that is discharged into water and includes any of the following:
(A)Input change, which means a change in raw materials or feedstocks used in a production process or operation so as to reduce, avoid, or eliminate the generation of pollutants discharged in wastewater.
(B)Operational improvement, which means improved site management so as to reduce, avoid, or eliminate the generation of pollutants discharged in wastewater.
(C)Production process change, which means a change in a process, method, or technique that is used to produce a product or a desired result, including the return of materials or their components for reuse within the existing processes or operations, so as to reduce, avoid, or eliminate the generation of pollutants discharged in wastewater.
(D)Product reformulation, which means changes in design, composition, or specifications of end products, including product substitution, so as to reduce, avoid, or eliminate the generation of problem pollutants discharged in wastewater.
(2)For the purposes of this section, pollution prevention does not include actions that merely shift a pollutant in wastewater from one environmental medium to another environmental medium, unless clear environmental benefits of such an approach are identified to the satisfaction of the state board, the regional board, or POTW. publicly owned treatment works (POTW).
(c)For the purposes of this section, discharger means any entity required to obtain a national pollutant discharge elimination system (NPDES) permit pursuant to the federal Clean Water Act (33 U.S.C. Sec. 1251 et seq.), or any entity subject to the pretreatment program as defined in Part 403 (commencing with Section 403.1) of Subchapter N of Chapter 1 of Part 403 I of Title 40 of the Code of Federal Regulations.
(d)(1)The state board, a regional board, or a POTW may require a discharger subject to its jurisdiction to complete and implement a pollution prevention plan if any of the following apply:
(A)A discharger is determined by the state board to be a chronic violator, and the state board, a regional board, or the POTW determines that pollution prevention could assist in achieving compliance.
(B)The discharger significantly contributes, or has the potential to significantly contribute, to the creation of a toxic hot spot as defined in Section 13391.5.
(C)The state board, a regional board, or a POTW determines pollution prevention is necessary to achieve a water quality objective.
(D)The discharger is subject to a cease and desist order issued pursuant to Section 13301 or a time schedule order issued pursuant to Section 13300 or 13308.
(2)A pollution prevention plan required of a discharger other than a POTW pursuant to paragraph (1) shall include all of the following:
(A)An analysis of one or more of the pollutants, as directed by the state board, a regional board, or a POTW, that the facility discharges into water or introduces into POTWs, a description of the sources of the pollutants, and a comprehensive review of the processes used by the discharger that result in the generation and discharge of the pollutants.
(B)An analysis of the potential for pollution prevention to reduce the generation of the pollutants, including the application of innovative and alternative technologies and any adverse environmental impacts resulting from the use of those methods.
(C)A detailed description of the tasks and time schedules required to investigate and implement various elements of pollution prevention techniques.
(D)A statement of the dischargers pollution prevention goals and strategies, including priorities for short-term and long-term action.
(E)A description of the dischargers existing pollution prevention methods.
(F)A statement that the dischargers existing and planned pollution prevention strategies do not constitute cross media pollution transfers unless clear environmental benefits of such an approach are identified to the satisfaction of the state board, the regional board, or the POTW, and information that supports that statement.
(G)Proof of compliance with the Pollution Prevention and Hazardous Waste Source Reduction and Management Review Act of 1989 (Article 11.9 (commencing with Section 25244.12) of Chapter 6.5 of Division 20 of the Health and Safety Code) if the discharger is also subject to that act.
(H)An analysis, to the extent feasible, of the relative costs and benefits of the possible pollution prevention activities.
(I)A specification of, and rationale for, the technically feasible and economically practicable pollution prevention measures selected by the discharger for implementation.
(3)The state board or a regional board may require a POTW to complete and implement a pollution prevention plan that includes all of the following:
(A)An estimate of all of the sources of a pollutant contributing, or potentially contributing, to the loading of that pollutant in the treatment plant influent.
(B)An analysis of the methods that could be used to prevent the discharge of the pollutants into the POTW, including application of local limits to industrial or commercial dischargers regarding pollution prevention techniques, public education and outreach, or other innovative and alternative approaches to reduce discharges of the pollutant to the POTW. The analysis also shall identify sources, or potential sources, not within the ability or authority of the POTW to control, such as pollutants in the potable water supply, airborne pollutants, pharmaceuticals, or pesticides, and estimate the magnitude of those sources, to the extent feasible.
(C)An estimate of load reductions that may be attained through the methods identified in subparagraph (B).
(D)A plan for monitoring the results of the pollution prevention program.
(E)A description of the tasks, cost, and time required to investigate and implement various elements in the pollution prevention plan.
(F)A statement of the POTWs pollution prevention goals and strategies, including priorities for short-term and long-term action, and a description of the POTWs intended pollution prevention activities for the immediate future.
(G)A description of the POTWs existing pollution prevention programs.
(H)An analysis, to the extent feasible, of any adverse environmental impacts, including cross media impacts or substitute chemicals, that may result from the implementation of the pollution prevention program.
(I)An analysis, to the extent feasible, of the costs and benefits that may be incurred to implement the pollution prevention program.
(e)The state board, a regional board, or a POTW may require a discharger subject to this section to comply with the pollution prevention plan developed by the discharger after providing an opportunity for comment at a public proceeding with regard to that plan.
(f)The state board, regional boards, and POTWs shall make the pollution prevention plans available for public review, except to the extent that information is classified as confidential because it is a trade secret. Trade secret information shall be set forth in an appendix that is not available to the public.
(g)The state board or regional board may assess civil liability pursuant to paragraph (1) of subdivision (c) of Section 13385 against a discharger for failure to complete a pollution prevention plan required by the state board or a regional board, for submitting a plan that does not comply with the act, or for not implementing a plan, unless the POTW has assessed penalties for the same action.
(h)A POTW may assess civil penalties and civil administrative penalties pursuant to Sections 54740, 54740.5, and 54740.6 of the Government Code against a discharger for failure to complete a pollution prevention plan when required by the POTW, for submitting a plan that does not comply with the act, or for not implementing a plan, unless the state board or a regional board has assessed penalties for the same action.
(i)A discharger may change its pollution prevention plan, including withdrawing from a pollution prevention measure required by the state board, a regional board, or a POTW, if the discharger determines that the measure will have a negative impact on product quality, the safe operation of the facility, or the environmental aspects of the facilitys operation, or the discharger determines that the measure is economically impracticable or technologically infeasible. Where practicable and feasible, the discharger shall replace the withdrawn measure with a measure that will likely achieve similar pollution prevention objectives. A measure may be withdrawn pursuant to this subdivision only with the approval of the executive officer of the state board or the regional board, or the POTW.
(j)The state board shall adopt a sample format to be used by dischargers for completing the plan required by this section. The sample format shall address all of the factors the discharger is required to include in the plan. The state board may include any other factors determined by the state board to be necessary to carry out this section. The adoption of the sample format pursuant to this section is not subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(k)The state board, a regional board, or a POTW may shall not include a pollution prevention plan in any waste discharge requirements or other permit issued by that agency.
(l)This section prevails over Section 13263.3, as added to the Water Code by Assembly Bill 1104 of the 19992000 Regular Session.SECTION 1.The heading of Chapter 2 (commencing with Section 42030) of Part 3 of Division 30 of the Public Resources Code is amended to read:2.Pharmaceutical and Sharps Waste Producer Responsibility ProgramSEC. 2.Section 42030 of the Public Resources Code is amended to read:42030.For purposes of this chapter, the following terms have the following meanings:(a)Authorized collection site means a location where an authorized collector operates a secure collection receptacle for collecting covered products.(b)Authorized collector means a person or entity that has entered into an agreement with a program operator to collect covered drugs, including, but not limited to, any of the following:(1)A person or entity that is registered with the United States Drug Enforcement Administration and that qualifies under federal law to modify that registration to collect controlled substances for the purpose of destruction.(2)A law enforcement agency.(3)A retail pharmacy that offers drug take-back services in compliance with Article 9.1 (commencing with Section 1776) of Title 16 of the California Code of Regulations.(c)Controlled substance means a substance listed under Sections 11053 to 11058, inclusive, of the Health and Safety Code or Section 812 or 813 of Title 21 of the United States Code, or any successor section.(d)Cosmetic means an article, or a component of an article, intended to be rubbed, poured, sprinkled, sprayed, introduced into, or otherwise applied to the human body for cleansing, beautifying, promoting attractiveness, or altering the appearance. Cosmetic includes articles with or without expiration dates.(e)(1)Covered drug means a drug, including a brand name or generic drug, sold, offered for sale, or dispensed in the State of California in any form, including, but not limited to, any of the following:(A)Prescription and nonprescription drugs approved by the United States Food and Drug Administration pursuant to Section 505 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 355) or Section 351 of the federal Public Health Service Act (42 U.S.C. Sec. 262).(B)A drug marketed pursuant to an over-the-counter drug monograph.(C)A drug in a medical device, or a combination product containing a drug and a medical device.(2)Covered drug does not include any of the following:(A)Vitamins or supplements.(B)Herbal-based remedies and homeopathic drugs, products, or remedies.(C)Cosmetics, soap, with or without germicidal agents, laundry detergent, bleach, household cleaning products, shampoos, sunscreens, toothpaste, lip balm, antiperspirants, or any other personal care product that is regulated as both a cosmetic and a nonprescription drug under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et seq.).(D)A drug for which a pharmaceutical product stewardship or producer responsibility program or drug takeback program is provided in the state as part of a United States Food and Drug Administration managed risk evaluation and mitigation strategy under 21 U.S.C. Sec. 355-1.(E)Biological drug products, as defined by 42 U.S.C. Sec. 262(i)(1), including those products currently approved in the state under a new drug application that will be deemed to be licensed under Section 351 of the Public Health Service Act (42 U.S.C. Sec. 262) pursuant to Section 7002(e) of the federal Biologics Price Competition and Innovation Act of 2009 (Public Law 111-148).(F)A medical device, or a component part or accessory of a medical device, if it does not contain a covered drug.(G)Drugs that are used for animal medicines, including, but not limited to, parasiticide products for animals.(H)Dialysate drugs or other saline solutions required to perform kidney dialysis.(f)(1)(A)Covered entity means the manufacturer of covered products that are sold in or into the state.(B)If no entity that meets the definition in subparagraph (A) is in the state, covered entity means the distributor of covered products that are sold in or into the state that is licensed as a wholesaler, as defined in Section 4043 of the Business and Professions Code, but does not include a warehouse of a retail pharmacy chain that is licensed as a wholesaler if it engages only in intracompany transfers between any division, affiliate, subsidiary, parent, or other entity under complete common ownership and control.(C)If no entity that meets the definition in subparagraph (A) or (B) is in the state, covered entity means a repackager, as defined in Section 4044 of the Business and Professions Code, of covered products that are sold in or into the state.(D)If no entity that meets the definition in subparagraph (A), (B), or (C) is in the state, covered entity means the owner or licensee of a trademark or brand under which covered products are sold in or into the state, regardless of whether the trademark is registered.(E)If no entity that meets the definition in subparagraph (A), (B), (C), or (D) is in the state, covered entity means the importer of the covered products that are sold in or into the state.(2)The department shall adopt regulations on the process for determining what entity is a covered entity following the priority order set forth in paragraph (1).(g)Covered product means a covered drug or home-generated sharps waste.(h)Department means the Department of Resources Recycling and Recovery, and any successor agency.(i)Distributor means a wholesaler, as that term is defined in Section 4043 of the Business and Professions Code.(j)Drug means any of the following:(1)An article recognized in the official United States Pharmacopoeia, the official National Formulary, the official Homeopathic Pharmacopoeia of the United States, or any supplement of the formulary or those pharmacopoeias.(2)A substance intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in humans or other animals.(3)A substance, other than food, intended to affect the structure or any function of the body of humans or other animals.(4)A substance intended for use as a component of any substance specified in this subdivision.(k)Generic drug means a drug that is chemically identical or bioequivalent to a brand name drug in dosage form, safety, strengths, route of administration, quality, performance, characteristics, and intended use, though inactive ingredients may vary.(l)(1)Home-generated sharps waste has the same meaning as defined in Section 117671 of the Health and Safety Code.(2)Home-generated sharps waste does not include either of the following:(A)Components manufactured for use with external ambulatory insulin pump therapy systems or continuous glucose monitoring systems, including, but not limited to, insulin infusion sets, glucose sensors that are sterile goods indicated for single subcutaneous use, sterile drug delivery channels indicated for single subcutaneous use, and injection ports.(B)A biological product, as defined in Section 262(i)(1) of Title 42 of the United States Code, including a combination product, as defined in Section 3.2(e) of Title 21 of the Code of Federal Regulations.(m)Mail-back program means a method of collecting covered products from ultimate users by using prepaid, preaddressed mailing envelopes as described in Section 1776.2 of Title 16 of the California Code of Regulations.(n)Nonprescription drug means any drug that may be lawfully sold without a prescription.(o)Pharmacy has the same meaning as defined in Section 4037 of the Business and Professions Code.(p)Prescription drug means a drug, including, but not limited to, a controlled substance, that is required under federal or state law to be dispensed with a prescription, or is restricted to use by practitioners only.(q)Producer responsibility organization means an organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 (21 U.S.C. Sec. 501(c)(3)) that is established by a group of covered entities in accordance with this chapter to develop, implement, and administer a producer responsibility program established pursuant to this chapter.(r)Producer responsibility plan means the plan for collecting and properly managing covered products that is developed by a covered entity or producer responsibility organization pursuant to this chapter.(s)Producer responsibility program means a program for the collection, transportation, and disposal of covered products.(t)Program operator means a covered entity, or producer responsibility organization on behalf of a group of covered entities, that is responsible for operating a producer responsibility program in accordance with this chapter.(u)Proprietary information means information that is all of the following:(1)Submitted pursuant to this chapter.(2)A trade secret, or commercial or financial information, that is privileged or confidential, and is identified as such by the entity providing the information to the department.(3)Not required to be disclosed under any other law or any regulation affecting a covered product or covered entity.(v)Retail pharmacy means an independent pharmacy, a supermarket pharmacy, a chain pharmacy, or a mass merchandiser pharmacy possessing a license from the state board to operate a pharmacy.(w)Retail pharmacy chain means a retail pharmacy with five or more stores in the state.(x)Sharps means hypodermic needles, pen needles, intravenous needles, lancets, and other devices that are used to penetrate the skin for the delivery of medications.(y)State board means the California State Board of Pharmacy.(z)Ultimate user means a state resident or other nonbusiness entity and includes a person who has lawfully obtained, and who possesses, a covered product, including a controlled substance, for the persons own use or for the use of a member of the persons household. Ultimate user does not include a needle exchange program established under Section 121349 of the Health and Safety Code, or a medical waste generator, as defined in Section 117705 of the Health and Safety Code.SEC. 3.The heading of Article 2 (commencing with Section 42031) of Chapter 2 of Part 3 of Division 30 of the Public Resources Code is amended to read:2.Covered Entities and Producer Responsibility OrganizationsSEC. 4.Section 42031 of the Public Resources Code is amended to read:42031.(a)(1)No later than 90 days after the effective date of this section, a covered entity shall provide a list of covered products, and a list and description of any drugs or sharps that are not covered products, that it sells or offers for sale in the state to the state board.(2)A covered entity, or a producer responsibility organization on behalf of a group of covered entities, shall update the lists described in paragraph (1) and provide the updated lists to the state board on or before January 15 of each year or upon request of the department.(b)No later than 90 days after the effective date of this section, a retail pharmacy that sells a covered product under its own label shall provide written notification to the state board identifying the covered entity from which the retail pharmacy obtains a covered product that the retail pharmacy sells under its store label.(c)The state board shall verify the information received pursuant to subdivisions (a) and (b) and make it available to the department upon request.(d)The state board may issue a letter of inquiry to any entity listed in subparagraphs (A) to (E), inclusive, of paragraph (1) of subdivision (f) of Section 42030 requesting a list of all drugs and sharps it distributes in California, regardless of whether the drugs or sharps are covered under this chapter, the name of the manufacturer of those products, and any additional information necessary to carry out this chapter. An entity that is issued a letter of inquiry pursuant to this subdivision shall respond in writing no later than 60 days after receipt of the letter. Responses to those inquiries may be shared with the department, but are otherwise deemed proprietary and exempt from disclosure. If the entity does not believe it is a covered entity for purposes of this chapter, it shall submit all of the following to the state board in response to the letter of inquiry:(1)The basis for the claim that it is not a covered entity.(2)A list of any drugs and sharps it sells, distributes, repackages, or otherwise offers for sale within the state.(3)If applicable, the name and contact information of the person or entity from which it obtains a drug or sharp identified pursuant to paragraph (2).(e)The state board shall obtain and verify and, within 30 days of receipt or upon request by the department, submit to the department a list of drugs and sharps sold or offered for sale in the state excluded from the definition of covered drugs pursuant to paragraph (2) of subdivision (e) of Section 42030 or excluded from the definition of home-generated sharps waste in subdivision (l) of Section 42030.(f)Notwithstanding Section 42036.4, information submitted by the state board to the department under this chapter may include proprietary information.(g)The state board shall notify the department if any covered entity or producer responsibility organization is in violation of this section for purposes of enforcement by the department.SEC. 5.Section 42031.4 of the Public Resources Code is amended to read:42031.4.(a)Except as specified in subdivision (d) of Section 42035, a covered entity is not in compliance with this chapter and is subject to penalties pursuant to Article 6 (commencing with Section 42035) if, commencing one year from the adoption of regulations pursuant to Section 42031.2, a covered product sold or offered for sale by the covered entity is not subject to an approved producer responsibility plan, which is submitted by the covered entity or by a producer responsibility organization that includes the covered entity, that has been approved by the department pursuant to Section 42032.(b)In order to comply with the requirements of this chapter, a covered entity may establish and implement a producer responsibility program independently, or as part of a group of covered entities through membership in a producer responsibility organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 (21 U.S.C. Sec. 501(c)(3)).SEC. 6.Section 42031.6 of the Public Resources Code is amended to read:42031.6.(a)A program operator shall conduct a comprehensive education and outreach program intended to promote participation in the producer responsibility program. At a minimum, the education and outreach program shall do all of the following:(1)Promote its producer responsibility program to ultimate users by providing signage for hospitals, pharmacies, and other locations, as necessary.(2)Provide educational and outreach materials for persons authorized to prescribe drugs, pharmacies, pharmacists, ultimate users, and others, as necessary.(3)Establish an internet website that publicizes the location of authorized collectors and provides other information intended to promote the use of the producer responsibility program.(4)Prepare and provide additional outreach materials not specified in this section, as needed to promote the collection and proper management of covered drugs and home-generated sharps waste.(5)Encourage ultimate users to separate products that are not covered products from covered products, when appropriate, before submitting the covered products to an authorized collection site or mail-back program.(b)A program operator shall not, as part of the education and outreach program, promote the disposal of a covered product in a manner inconsistent with the services offered to ultimate users by the producer responsibility program.SEC. 7.The heading of Article 3 (commencing with Section 42032) of Chapter 2 of Part 3 of Division 30 of the Public Resources Code is amended to read:3.Producer Responsibility PlansSEC. 8.Section 42032 of the Public Resources Code is amended to read:42032.(a)(1)Within six months of the adoption date of regulations by the department pursuant to Section 42031.2, a program operator shall submit to the department for approval a complete producer responsibility plan that meets the requirements of Section 42032.2 for the establishment and implementation of a producer responsibility program, in a format determined by the department.(2)The department shall approve a proposed producer responsibility program if the program operator submits a completed plan that meets the requirements of this section.(b)(1)Before submitting a producer responsibility plan to the department pursuant to this section, a program operator shall submit its proposed producer responsibility plan to the state board for review, and to any other applicable state agencies with areas of authority relative to the producer responsibility plan. The duration of time that the state board takes to review a producer responsibility plan pursuant to this paragraph shall not count toward the time limit specified in paragraph (1) of subdivision (a).(2)An agency that receives a producer responsibility plan shall review the producer responsibility plan for compliance with state and federal laws and regulations related to the agencys respective authority. The agency shall determine compliance or noncompliance with those laws and regulations, and provide to the program operator that determination and an explanation for any finding of noncompliance, within 90 days of receipt of the producer responsibility plan.(3)A program operator may submit an updated proposed producer responsibility plan to an agency that issued a determination of noncompliance to attempt to obtain a determination of compliance. A program operator shall submit any determination received from an agency when it submits its producer responsibility plan to the department.(4)If, 90 days after submitting a producer responsibility plan to an applicable agency, a program operator has not received a response from the applicable agency, the program operator may submit a certification to the department that the producer responsibility plan is consistent with all other applicable laws and regulations.(c)(1)The department shall determine if a producer responsibility plan is complete, including the determinations required pursuant to subdivision (b), and notify the submitting program operator within 30 days of receipt.(2)If the department finds that the producer responsibility plan is complete, the departments 90-day review period for consideration of approval of the producer responsibility plan set forth in subdivision (d) shall commence upon the original date of receipt.(3)If the department determines the producer responsibility plan is incomplete, the department shall identify for the program operator the required additional information, and the program operator shall resubmit the producer responsibility plan within 30 days.(4)If the department determines upon resubmission that the producer responsibility plan is complete, the departments 90-day review period for consideration of approval of the producer responsibility plan shall commence upon the date of receipt of the resubmitted producer responsibility plan.(d)(1)The department shall review a complete submitted producer responsibility plan and shall approve, disapprove, or conditionally approve the producer responsibility plan within 90 days of receipt of the complete producer responsibility plan.(2)The department may consult with, or submit a producer responsibility plan for review to, the state board or another state agency it determines is necessary to determine the completeness of the producer responsibility plan or for making a determination on the approval of the producer responsibility plan or an amendment to the producer responsibility plan. The duration of time that the department takes to review a producer responsibility plan pursuant to this paragraph shall not count toward the 90-day time limit specified in paragraph (1).(e)A program operator shall submit any significant changes to a producer responsibility plan in writing for approval by the department, and shall not implement the changes prior to that approval.(f)(1)If the department disapproves a submitted producer responsibility plan pursuant to subdivision (d), the department shall explain, in writing within 30 days, how the producer responsibility plan does not comply with this chapter, and the program operator shall resubmit a revised producer responsibility plan to the department.(2)If the department finds that the revised producer responsibility plan submitted by the program operator does not comply with the requirements of this chapter and disapproves the plan, the covered entity operating its own producer responsibility program, or the producer responsibility organization and the covered entities that are members of the producer responsibility organization, are not in compliance with this chapter until the program operator submits a producer responsibility plan that the department approves.(g)A program operator shall fully implement operation of an approved producer responsibility program no later than 270 days after approval by the department of the producer responsibility plan that establishes the producer responsibility program.(h)If a producer responsibility plan is revoked pursuant to subdivision (a) of Section 42035.4 or terminated by the program operator that submitted the producer responsibility plan, a covered entity no longer subject to that producer responsibility plan may, without being subject to penalties pursuant to Article 6 (commencing with Section 42035), sell or offer for sale covered products in the state for a period of up to one year after the producer responsibility plan terminated or was revoked if the covered entity continues to operate under the most recent approved producer responsibility plan to which the covered entity was subject.(i)The department shall make all producer responsibility plans submitted pursuant to this section available to the public, except proprietary information in the plans protected pursuant to Section 42036.4.SEC. 9.Section 42032.2 of the Public Resources Code is amended to read:42032.2.(a)(1)To be complete, a producer responsibility plan for covered drugs shall do all of the following:(A)Identify and provide contact information for the producer responsibility organization, if applicable, and each participating covered entity, and identify each covered drug sold or offered for sale by each participating covered entity.(B)Identify and provide contact information for the authorized collectors for the producer responsibility program, as well as the reasons for excluding any potential authorized collectors from participation in the program.(C)Include any determinations provided by a state agency pursuant to subdivision (b) of Section 42032. Any determination of noncompliance shall be accompanied by a superseding determination of compliance.(D)Demonstrate adequate funding for all administrative and operational costs of the producer responsibility program, to be borne by participating covered entities.(E)Provide for a handling, transport, and disposal system that complies with applicable state and federal laws, including, but not limited to, regulations adopted by the United States Drug Enforcement Administration.(F)Provide for a collection system that complies with the requirements of this chapter and meets all of the following requirements for authorized collection sites in each county in which the producer responsibility plan will be implemented:(i)Provides for a minimum of five authorized collection sites or one authorized collection site per 50,000 people, whichever is greater.(ii)Provides for a reasonable geographic spread of authorized collection sites and an explanation for the geographic spread.(iii)Provides for a mail-back program covering any counties where there is not an authorized retail pharmacy operating as an authorized collection site.(G)Require a program operator to do all of the following:(i)Permit an ultimate user who is a homeless, homebound, or disabled individual to request prepaid, preaddressed mailing envelopes, or an alternative form of a collection and disposal system, as described in paragraph (2) of subdivision (c), that would render the covered drug inert. A program operator shall accept that request through an internet website and toll-free telephone number that it shall maintain to comply with the requests.(ii)Provide alternative methods of collection from ultimate users for any covered drugs, other than controlled substances, that cannot be accepted or commingled with other covered drugs in secure collection receptacles or through a mail-back program, to the extent technically feasible and permissible under applicable state and federal law, including, but not limited to, United States Drug Enforcement Administration regulations.(iii)(I)Provide a service schedule that meets the needs of each authorized collection site to ensure that each secure collection receptacle is serviced as often as necessary to avoid reaching capacity and that collected covered drugs are transported to final disposal in a timely manner. Additionally, a receipt or collection manifest shall be left with the authorized collection site to support verification of the service. The authorized collection site shall maintain and make available to the department this documentation.(II)An authorized collector shall comply with applicable federal and state laws regarding collection and transportation standards, and the handling of covered drugs, including United States Drug Enforcement Administration regulations.(H)Provide the policies and procedures for the safe and secure collection, transporting, and disposing of the covered drug, describe how and where records will be maintained and how, at a minimum, instances of security problems that occur will be addressed, and explain the processes that will be taken to change the policies, procedures, and tracking mechanisms to alleviate the problems and to improve safety and security.(2)Paragraph (1) shall apply only with regard to covered drugs.(b)(1)At least 120 days before submitting a producer responsibility plan to the department, the operator of a producer responsibility program for covered drugs shall notify potential authorized collectors in the county or counties in which it operates of the opportunity to serve as an authorized collector for the proposed producer responsibility program. If a potential authorized collector expresses interest in participating in a producer responsibility program, the program operator shall commence good faith negotiations with the potential authorized collector within 30 days.(2)A retail pharmacy shall make a reasonable effort to serve as an authorized collector as part of a producer responsibility program in the county in which it is located. If the minimum threshold described in clause (i) of subparagraph (F) of paragraph (1) of subdivision (a) is not met in each county in which a retail pharmacy chain has store locations, the retail pharmacy chain shall have at least one location or 15 percent of its store locations, whichever is greater, in that county serve as authorized collectors in a producer responsibility program.(3)A program operator shall include as an authorized collector under its producer responsibility program any entity listed in subdivision (b) of Section 42030 that offers to participate in the producer responsibility program, in writing and without compensation, even if the minimum convenience standards set in clause (i) of subparagraph (F) of paragraph (1) of subdivision (a) have been achieved. The program operator shall include the offering entity as an authorized collector in the program within 90 days of receiving the written offer to participate. A program operator shall not be required to respond to offers pursuant to this paragraph until the program operators producer responsibility plan has been approved by the department.(c)After a producer responsibility plan for covered drugs has been approved, the program operator may supplement service, if approved by the department, for a county in which it operates that does not have the minimum number of authorized collection sites due to circumstances beyond the program operators control, by establishing one or both of the following:(1)A mail-back program. The mail-back program may include providing information on where and how to receive mail-back materials or providing the locations at which it distributes prepaid, preaddressed mailing envelopes. The program operator shall propose the locations of those envelope distribution locations as part of the producer responsibility plan. Prepaid mailing envelopes may be mailed to an ultimate user upon request.(2)An alternative form of collection and disposal of covered drugs that complies with applicable state and federal law, including, but not limited to, United States Drug Enforcement Administration regulations.(d)(1)To be complete, a producer responsibility plan for home-generated sharps waste shall do all of the following:(A)Identify and provide contact information for the producer responsibility organization, if applicable, and each participating covered entity, and identify each covered product sold or offered for sale by each participating covered entity.(B)Include any determinations provided by a state agency pursuant to subdivision (b) of Section 42032. Any determination of noncompliance shall be accompanied by a superseding determination of compliance.(C)Demonstrate adequate funding for all administrative and operational costs of the producer responsibility program, to be borne by participating covered entities.(D)Provide for a handling, transport, and disposal system, at no cost to the ultimate user, that complies with applicable state and federal laws.(E)Maintain an internet website and toll-free telephone number for purposes of providing information on the program, including disposal options, and to receive requests for sharps waste containers from ultimate users.(F)Provide that a producer responsibility program for home-generated sharps waste shall be a mail-back program for home-generated sharps waste that complies with this chapter and that meets all the following requirements:(i)The program provides or initiates distribution of a sharps waste container and mail-back materials at the point of sale, to the extent allowable by law. Containers and mail-back materials shall be provided at no cost to the ultimate user. The program operator shall select and distribute a container and mail-back materials sufficient to accommodate the volume of sharps purchased by an ultimate user over a selected time period.(I)For any sharps, the packaging, an insert or instructions, or separate information provided to the ultimate user shall include information on proper sharps waste disposal.(II)All sharps waste containers shall include on a label affixed to the container or packaging, or on a separate insert included in the container or packaging, the program operators internet website and toll-free telephone number.(III)All sharps waste containers shall include prepaid postage affixed to the container or to the mail-back packaging.(ii)Upon request, the program provides for reimbursement to local agencies for disposal costs related to home-generated sharps waste, unless the program operator provides for the removal of the home-generated sharps waste from the local household hazardous waste facility.(I)A local agency shall not knowingly request reimbursement for disposal expenses pursuant to this subparagraph for disposal costs resulting from a municipal needle exchange program or a medical waste generator.(II)Reimbursement costs shall be limited to the actual costs of transportation from the household hazardous waste facility and for the actual costs of disposal.(III)A request for reimbursement pursuant to this clause shall be submitted with a declaration under penalty of perjury that the local agency has not knowingly requested reimbursement for expenses prohibited by this section.(IV)A cost is eligible for reimbursement pursuant to this clause if the cost is incurred 270 days or more after the approval of a producer responsibility plan for home-generated sharps waste.(2)Paragraph (1) shall apply only with regard to home-generated sharps waste.(e)A producer responsibility plan shall include provisions to expand into jurisdictions not included in the producer responsibility plan pursuant to Section 42036.2, in the event a jurisdiction repeals its local stewardship or producer responsibility program ordinance.(f)A producer responsibility plan shall include educational and outreach provisions to meet the requirements of Section 42031.6.SEC. 10.Section 42033 of the Public Resources Code is amended to read:42033.With the submission of a producer responsibility plan, a program operator shall submit to the department an initial producer responsibility program budget for the first five calendar years of operation of its producer responsibility program that includes both of the following:(a)Total anticipated revenues and costs of implementing the producer responsibility program.(b)A total recommended funding level sufficient to cover the producer responsibility plans budgeted costs and to operate the producer responsibility program over a multiyear period.SEC. 11.Section 42033.2 of the Public Resources Code is amended to read:42033.2.(a)On or before March 31 of each year, a program operator shall prepare and submit to the department both of the following:(1)A written report describing the producer responsibility program activities during the previous reporting period of one year.(2)A written program budget for producer responsibility program implementation for the upcoming calendar year.(b)An annual report submitted pursuant to paragraph (1) of subdivision (a) shall include, at a minimum, all of the following for the prior year:(1)A list of covered entities participating in the producer responsibility organization.(2)The updated and reverified list provided pursuant to paragraph (2) of subdivision (a) of Section 42031 of covered products that each covered entity subject to the producer responsibility plan sells or offers for sale.(3)The amount, by weight, of covered products collected from ultimate users at each authorized collection site that is part of the producer responsibility program.(4)For a producer responsibility plan for covered drugs, the name and location of authorized collection sites at which covered drugs were collected.(5)For a producer responsibility plan for home-generated sharps waste, information on the mail-back program.(6)Whether policies and procedures for collecting, transporting, and disposing of covered products, as established in the producer responsibility plan, were followed during the reporting period and a description of each instance of noncompliance, if any occurred.(7)Whether any safety or security problems occurred during collection, transportation, or disposal of collected covered products during the reporting period and, if so, what changes have been or will be made to policies, procedures, or tracking mechanisms to alleviate the problem and to improve safety and security.(8)How the program operator complied with all elements in its producer responsibility plan.(9)Any other information the department reasonably requires.(c)An annual program budget submitted pursuant to paragraph (2) of subdivision (a) shall include, at a minimum, both of the following for the upcoming calendar year:(1)An independent financial audit of the producer responsibility program, as required by subdivision (b) of Section 42033.4, funded by the producer responsibility organization from the charge paid from its member covered entities pursuant to Section 42034 or by a covered entity if it operates its own producer responsibility program.(2)Anticipated costs and the recommended funding level necessary to implement the producer responsibility program, including, but not limited to, costs to cover the producer responsibility plans budgeted costs and to operate the producer responsibility program over a multiyear period in a prudent and responsible manner.(d)(1)The department shall determine if a submitted annual report and program budget are complete and notify the submitting producer responsibility organization or covered entity within 30 days.(2)If the department finds that an annual report and program budget are complete, the departments 90-day review period for consideration of approval of the annual report and program budget, set forth in subdivision (e), shall commence upon the original date of receipt.(3)If the department determines either an annual report or a program budget is incomplete, the department shall identify for the program operator within 30 days the required additional information, and the program operator shall submit a revised annual report or program budget, as applicable, within 30 days.(4)If the department determines upon resubmission that the annual report or program budget is complete, the departments 90-day review period for consideration of approval of the annual report or program budget shall commence upon the date of receipt of the resubmitted report or program budget.(e)(1)The department shall review the annual report and program budget required pursuant to this section and within 90 days of receipt shall approve, disapprove, or conditionally approve the annual report and program budget.(2)(A)If the department conditionally approves an annual report or program budget, the department shall identify the deficiencies in the annual report or program budget and the program operator shall comply with the conditions of the conditional approval within 60 days of the notice date, unless the Director of Resources Recycling and Recovery determines that additional time is needed.(B)If the department conditionally approves an annual report or program budget and the conditions are not met within 60 days of the notice date, unless additional time is granted pursuant to subparagraph (A), the department shall disapprove the annual report or program budget.(3)If the department disapproves an annual report or program budget, the department shall identify the deficiencies in the annual report or program budget and the program operator shall submit a revised annual report or program budget and provide any supplemental information requested within 60 days of the notice date.SEC. 12.Section 42033.4 of the Public Resources Code is amended to read:42033.4.(a)A program operator shall keep minutes, books, and records that clearly reflect the activities and transactions of the program operators producer responsibility program.(b)(1)The minutes, books, and records of a program operator shall be audited at the program operators expense by an independent certified public accountant retained by the program operator at least once each calendar year.(2)A program operator shall arrange for the independent certified public accountant audit to be delivered to the department, along with the annual report and program budget submitted pursuant to subdivision (a) of Section 42033.2.(3)The department may conduct its own audit of a program operator. The department shall review the independent certified public accountant audit for compliance with this chapter and consistency with the program operators producer responsibility plan, annual report, and program budget submitted pursuant to this chapter. The department shall notify the program operator of any conduct or practice that does not comply with this chapter or of any inconsistencies identified in the departments audit. The program operator may obtain copies of the departments audit, including proprietary information contained in the departments audit, upon request. The department shall not disclose any confidential proprietary information protected pursuant to Section 42036.4 that is included in the departments audit.SEC. 13.Section 42033.6 of the Public Resources Code is amended to read:42033.6.As part of the administration of this chapter, within 12 months of a program operators submission of three consecutive complete annual reports submitted pursuant to Section 42033.2, the department shall develop, and post on its internet website, a report analyzing whether the program operators producer responsibility program provides adequate access to safe disposal of home-generated sharps waste or covered drugs, as applicable, to the ultimate user.SEC. 14.Section 42034 of the Public Resources Code is amended to read:42034.In order to further the objective that covered entities establish and implement producer responsibility programs that comply with the requirements of this chapter, each covered entity, either individually or through a producer responsibility organization, shall pay all administrative and operational costs associated with establishing and implementing the producer responsibility program in which it participates, including the cost of collecting, transporting, and disposing of covered products.SEC. 15.Section 42034.2 of the Public Resources Code is amended to read:42034.2.(a)(1)On March 1 and September 1 of each year, a program operator shall pay to the department an administrative fee. The department shall set the fee at an amount that, when paid by every covered entity, is adequate to cover the departments and any other state agencys projected full costs of administering and enforcing this chapter, including any incurred costs that have not been reimbursed. Before March 1 and September 1 of each year, the department shall compare the total amount of fees collected for the operative billing cycle to the total actual and reasonable costs of administering and enforcing this chapter over the same period so that the total amount of fees collected is adequate and does not exceed the states full actual and reasonable regulatory costs to implement and enforce this chapter. These costs may include the actual and reasonable costs associated with regulatory activities pursuant to this chapter before submission of producer responsibility plans pursuant to Section 42032.(2)For a producer responsibility organization, the administrative fee paid pursuant to paragraph (1) shall be funded by the covered entities that make up the producer responsibility organization. This administrative fee shall be in addition to the charge paid pursuant to Section 42034. A producer responsibility organization may require its participating covered entities to pay the administrative fee and the charge paid pursuant to Section 42034 at the same time.(b)The department shall deposit administrative fees paid by a program operator pursuant to subdivision (a) into the Pharmaceutical and Sharps Producer Responsibility Fund. Upon appropriation by the Legislature, moneys in the fund may be expended by the department, the state board, and any other agency that assists in the regulatory activities of administering and enforcing this chapter. Upon appropriation by the Legislature, moneys in the fund may be used for those regulatory activities and to reimburse any outstanding loans made from other funds used to finance the startup costs of the departments activities pursuant to this chapter. Moneys in the fund shall not be expended for any purpose not enumerated in this chapter.(c)The Pharmaceutical and Sharps Stewardship Fund, established by Section 1 of Chapter 1004 of the Statutes of 2018 (Senate Bill No. 212), is hereby renamed and continued in existence as the Pharmaceutical and Sharps Producer Responsibility Fund.SEC. 16.Section 42034.4 of the Public Resources Code is amended to read:42034.4.(a)(1)A producer responsibility organization may conduct an audit of covered entities that are required to remit a charge or administrative fee to the producer responsibility organization pursuant to Sections 42034 and 42034.2 to verify that the administrative fees and charges paid are proper and accurate. In addition, a producer responsibility organization may conduct an audit of authorized collectors to verify the charges submitted are proper and accurate.(2)The purpose of the audits described in paragraph (1) is to ensure parties required by this chapter to pay or collect an administrative fee or charge are paying or collecting the proper amount to implement the program.(b)If a producer responsibility organization conducts an audit pursuant to subdivision (a), it shall do all of the following:(1)Conduct the audit in accordance with generally accepted auditing practices.(2)Limit the scope of the audit of covered entities to confirming whether a charge or administrative fee has been properly paid by the covered entities.(3)Hire an independent third-party auditor to conduct the audit.(4)Provide a copy of the audit to the department.SEC. 17.Section 42035 of the Public Resources Code is amended to read:42035.(a)(1)On or before June 30th of each year, the department shall post on its internet website a list of producer responsibility organizations, including entities with an approved producer responsibility plan, and covered entities, authorized collection sites, retail pharmacies, and retail pharmacy chains provided in the producer responsibility plans that are in compliance with this chapter.(2)The state board shall coordinate with the department to verify that the list posted pursuant to paragraph (1) is consistent with the information submitted to each agency pursuant to Section 42031.(b)A covered entity or producer responsibility organization that is not listed on the departments internet website pursuant to subdivision (a), but demonstrates compliance with this chapter before the department is required to post the following years list pursuant to subdivision (a), may request a certification letter from the department stating that the covered entity or producer responsibility organization is in compliance with this chapter. A covered entity or producer responsibility organization that receives a certification letter shall be deemed to be in compliance with this chapter.(c)A distributor or wholesaler of covered products, and a pharmacy or other retailer that sells or offers for sale a covered product, shall monitor the departments internet website to determine which covered entities and producer responsibility organizations are in compliance with this chapter. The distributor or wholesaler and the pharmacy or other retailer shall notify the department if it determines that a covered product that it sells or offers for sale is from a covered entity that is not listed on the departments internet website.(d)The sale, distribution, or offering for sale of any inventory that was in stock before the commencement of a producer responsibility program is exempt from this chapter and not required to be subject to a producer responsibility plan.(e)If the department determines a covered entity or producer responsibility organization is not in compliance with this chapter, the department shall remove the entity from the list maintained on the departments internet website pursuant to subdivision (a).SEC. 18.Section 42035.2 of the Public Resources Code is amended to read:42035.2.(a)(1)The department may impose an administrative penalty on any covered entity, program operator, producer responsibility organization, or authorized collector that sells, offers for sale, or provides a covered product in violation of this chapter.(2)The amount of the administrative penalty imposed pursuant to this subdivision shall not exceed ten thousand dollars ($10,000) per day unless the violation is intentional, knowing, or reckless, in which case the administrative penalty shall not exceed fifty thousand dollars ($50,000) per day.(b)The department shall not impose a penalty on a program operator pursuant to this section for failure to comply with this chapter if the program operator demonstrates it received false or misleading information that contributed to its failure to comply, including, for a producer responsibility organization, from a participating covered entity.(c)The department shall deposit all penalties collected pursuant to this section in the Pharmaceutical and Sharps Producer Responsibility Penalty Account, in the Pharmaceutical and Sharps Producer Responsibility Fund. Upon appropriation by the Legislature, moneys in the Pharmaceutical and Sharps Producer Responsibility Penalty Account may be expended by the department on activities including, but not limited to, the promotion of safe handling and disposal of covered products, grants for related purposes, and the administration and enforcement of this chapter.(d)The Pharmaceutical and Sharps Stewardship Penalty Account, established by Section 1 of Chapter 1004 of the Statutes of 2018 (Senate Bill No. 212), is hereby renamed and continued in existence as the Pharmaceutical and Sharps Producer Responsibility Penalty Account.SEC. 19.Section 42035.4 of the Public Resources Code is amended to read:42035.4.Upon a written finding that a covered entity, program operator, producer responsibility organization, or authorized collector has not met a material requirement of this chapter, in addition to any other penalties authorized under this chapter, the department may take one or both of the following actions to ensure compliance with the requirements of this chapter, after affording the covered entity, producer responsibility organization, or authorized collector a reasonable opportunity to respond to, or rebut, the finding:(a)Revoke the program operators producer responsibility plan approval or require the program operator to resubmit the producer responsibility plan.(b)Require additional reporting relating to compliance with the material requirement of this chapter that was not met.SEC. 20.Section 42035.6 of the Public Resources Code is amended to read:42035.6.(a)A covered entity, producer responsibility organization, program operator, retail pharmacy, or retail pharmacy chain shall do both of the following:(1)Upon request, provide the department with reasonable and timely access, as determined by the department, to its facilities and operations, as necessary to determine compliance with this chapter.(2)Upon request, provide the department with relevant records necessary to determine compliance with this chapter.(b)A covered entity, producer responsibility organization, program operator, retail pharmacy, or retail pharmacy chain shall maintain and keep accessible all records required to be kept or submitted pursuant to this chapter for a minimum of three years.(c)All reports and records provided to the department pursuant to this chapter shall be provided under penalty of perjury.(d)The department may take disciplinary action against a covered entity, producer responsibility organization, program operator, pharmacy, retail pharmacy, or retail pharmacy chain that fails to provide the department with the access to information required pursuant to this section, including one or both of the following:(1)Imposing an administrative penalty pursuant to Section 42035.2.(2)Posting a notice on the departments internet website, in association with the list that the department maintains pursuant to paragraph (1) of subdivision (a) of Section 42035, that the covered entity, producer responsibility organization, program operator, pharmacy, retail pharmacy, or retail pharmacy chain is no longer in compliance with this chapter.(e)The department shall not prohibit as a disciplinary action a covered entity, producer responsibility organization, program operator, pharmacy, retail pharmacy, or retail pharmacy chain from selling a covered product.SEC. 21.Section 42035.8 of the Public Resources Code is amended to read:42035.8.All handling, transport, and disposal undertaken as part of a producer responsibility program under this chapter shall comply with applicable state and federal laws, including, but not limited to, regulations adopted by the United States Drug Enforcement Administration.SEC. 22.Section 42036 of the Public Resources Code is amended to read:42036.(a)Except as provided in subdivision (c), an action specified in subdivision (b) that is taken by a producer responsibility organization or a covered entity pursuant to this chapter is not a violation of the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code), or the Unfair Competition Law (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code).(b)Subdivision (a) shall apply to all of the following actions taken by a producer responsibility organization or covered entity:(1)The creation, implementation, or management of a producer responsibility plan approved by the department pursuant to Article 3 (commencing with Section 42032) and the determination of the types or quantities of covered products collected or otherwise managed pursuant to a producer responsibility plan.(2)The determination of the cost and structure of an approved producer responsibility plan.(3)The establishment, administration, collection, or disbursement of the charge or administrative fee imposed pursuant to Section 42034 or 42034.2, respectively.(c)Subdivision (a) shall not apply to an agreement that does any of the following:(1)Fixes a price of or for covered products, except for an agreement related to costs, charges, or administrative fees associated with participation in a producer responsibility plan approved by the department and otherwise in accordance with this chapter.(2)Fixes the output of production of covered products.(3)Restricts the geographic area in which, or customers to whom, covered products are sold.SEC. 23.Section 42036.2 of the Public Resources Code is amended to read:42036.2.(a)This chapter does not apply to a drug or sharp within a jurisdiction that is subject to a local stewardship or producer responsibility program pursuant to an ordinance that took effect before April 18, 2018. If that ordinance is repealed in the jurisdiction or, if more than one ordinance is applicable, those ordinances are repealed in the jurisdiction, the drug or sharp shall be subject to this chapter in that jurisdiction within 270 days after the date on which the ordinance is, or ordinances are, repealed.(b)This chapter shall preempt a local stewardship or producer responsibility program for drugs or sharps enacted by an ordinance or ordinances with an effective date on or after April 18, 2018.(c)A local stewardship or producer responsibility program for covered products enacted by an ordinance that has an effective date before April 18, 2018, may continue in operation, but the program and its participants shall not receive or benefit from moneys from the Pharmaceutical and Sharps Producer Responsibility Fund or the Pharmaceutical and Sharps Producer Responsibility Penalty Account, including, but not limited to, for administrative or enforcement costs. Participants of a local stewardship or producer responsibility program for covered products enacted by an ordinance that has an effective date before April 18, 2018, shall be eligible to participate in a producer responsibility program under this chapter and thereby become eligible to receive funds from the Pharmaceutical and Sharps Producer Responsibility Fund or the Pharmaceutical and Sharps Producer Responsibility Penalty Account only if the local stewardship or producer responsibility program is dissolved.SEC. 24.Section 42036.4 of the Public Resources Code is amended to read:42036.4.Proprietary information submitted to the department under this chapter shall be protected by all parties as confidential and shall be exempt from public disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code). The department and other parties may only disclose proprietary information in an aggregated form that does not directly or indirectly identify financial, production, or sales data of an individual covered entity or producer responsibility organization. Proprietary information may be disclosed to the party that submitted the proprietary information.For purposes of this chapter, the following terms have the following meanings:
(a)Authorized collection site means a location where an authorized collector operates a secure collection receptacle for collecting covered products.
(b)Authorized collector means a person or entity that has entered into an agreement with a program operator to collect covered drugs, including, but not limited to, any of the following:
(1)A person or entity that is registered with the United States Drug Enforcement Administration and that qualifies under federal law to modify that registration to collect controlled substances for the purpose of destruction.
(2)A law enforcement agency.
(3)A retail pharmacy that offers drug take-back services in compliance with Article 9.1 (commencing with Section 1776) of Title 16 of the California Code of Regulations.
(c)Controlled substance means a substance listed under Sections 11053 to 11058, inclusive, of the Health and Safety Code or Section 812 or 813 of Title 21 of the United States Code, or any successor section.
(d)Cosmetic means an article, or a component of an article, intended to be rubbed, poured, sprinkled, sprayed, introduced into, or otherwise applied to the human body for cleansing, beautifying, promoting attractiveness, or altering the appearance. Cosmetic includes articles with or without expiration dates.
(e)(1)Covered drug means a drug, including a brand name or generic drug, sold, offered for sale, or dispensed in the State of California in any form, including, but not limited to, any of the following:
(A)Prescription and nonprescription drugs approved by the United States Food and Drug Administration pursuant to Section 505 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 355) or Section 351 of the federal Public Health Service Act (42 U.S.C. Sec. 262).
(B)A drug marketed pursuant to an over-the-counter drug monograph.
(C)A drug in a medical device, or a combination product containing a drug and a medical device.
(2)Covered drug does not include any of the following:
(A)Vitamins or supplements.
(B)Herbal-based remedies and homeopathic drugs, products, or remedies.
(C)Cosmetics, soap, with or without germicidal agents, laundry detergent, bleach, household cleaning products, shampoos, sunscreens, toothpaste, lip balm, antiperspirants, or any other personal care product that is regulated as both a cosmetic and a nonprescription drug under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et seq.).
(D)A drug for which a pharmaceutical product stewardship or producer responsibility program or drug takeback program is provided in the state as part of a United States Food and Drug Administration managed risk evaluation and mitigation strategy under 21 U.S.C. Sec. 355-1.
(E)Biological drug products, as defined by 42 U.S.C. Sec. 262(i)(1), including those products currently approved in the state under a new drug application that will be deemed to be licensed under Section 351 of the Public Health Service Act (42 U.S.C. Sec. 262) pursuant to Section 7002(e) of the federal Biologics Price Competition and Innovation Act of 2009 (Public Law 111-148).
(F)A medical device, or a component part or accessory of a medical device, if it does not contain a covered drug.
(G)Drugs that are used for animal medicines, including, but not limited to, parasiticide products for animals.
(H)Dialysate drugs or other saline solutions required to perform kidney dialysis.
(f)(1)(A)Covered entity means the manufacturer of covered products that are sold in or into the state.
(B)If no entity that meets the definition in subparagraph (A) is in the state, covered entity means the distributor of covered products that are sold in or into the state that is licensed as a wholesaler, as defined in Section 4043 of the Business and Professions Code, but does not include a warehouse of a retail pharmacy chain that is licensed as a wholesaler if it engages only in intracompany transfers between any division, affiliate, subsidiary, parent, or other entity under complete common ownership and control.
(C)If no entity that meets the definition in subparagraph (A) or (B) is in the state, covered entity means a repackager, as defined in Section 4044 of the Business and Professions Code, of covered products that are sold in or into the state.
(D)If no entity that meets the definition in subparagraph (A), (B), or (C) is in the state, covered entity means the owner or licensee of a trademark or brand under which covered products are sold in or into the state, regardless of whether the trademark is registered.
(E)If no entity that meets the definition in subparagraph (A), (B), (C), or (D) is in the state, covered entity means the importer of the covered products that are sold in or into the state.
(2)The department shall adopt regulations on the process for determining what entity is a covered entity following the priority order set forth in paragraph (1).
(g)Covered product means a covered drug or home-generated sharps waste.
(h)Department means the Department of Resources Recycling and Recovery, and any successor agency.
(i)Distributor means a wholesaler, as that term is defined in Section 4043 of the Business and Professions Code.
(j)Drug means any of the following:
(1)An article recognized in the official United States Pharmacopoeia, the official National Formulary, the official Homeopathic Pharmacopoeia of the United States, or any supplement of the formulary or those pharmacopoeias.
(2)A substance intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in humans or other animals.
(3)A substance, other than food, intended to affect the structure or any function of the body of humans or other animals.
(4)A substance intended for use as a component of any substance specified in this subdivision.
(k)Generic drug means a drug that is chemically identical or bioequivalent to a brand name drug in dosage form, safety, strengths, route of administration, quality, performance, characteristics, and intended use, though inactive ingredients may vary.
(l)(1)Home-generated sharps waste has the same meaning as defined in Section 117671 of the Health and Safety Code.
(2)Home-generated sharps waste does not include either of the following:
(A)Components manufactured for use with external ambulatory insulin pump therapy systems or continuous glucose monitoring systems, including, but not limited to, insulin infusion sets, glucose sensors that are sterile goods indicated for single subcutaneous use, sterile drug delivery channels indicated for single subcutaneous use, and injection ports.
(B)A biological product, as defined in Section 262(i)(1) of Title 42 of the United States Code, including a combination product, as defined in Section 3.2(e) of Title 21 of the Code of Federal Regulations.
(m)Mail-back program means a method of collecting covered products from ultimate users by using prepaid, preaddressed mailing envelopes as described in Section 1776.2 of Article 9.1 of Division 17 of Title 16 of the California Code of Regulations.
(n)Nonprescription drug means any drug that may be lawfully sold without a prescription.
(o)Pharmacy has the same meaning as defined in Section 4037 of the Business and Professions Code.
(p)Prescription drug means a drug, including, but not limited to, a controlled substance, that is required under federal or state law to be dispensed with a prescription, or is restricted to use by practitioners only.
(q)Producer responsibility organization means an organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 (21 U.S.C. Sec. 501(c)(3)) that is established by a group of covered entities in accordance with this chapter to develop, implement, and administer a producer responsibility program established pursuant to this chapter.
(r)Producer responsibility plan means the plan for collecting and properly managing covered products that is developed by a covered entity or producer responsibility organization pursuant to this chapter.
(s)Producer responsibility program means a program for the collection, transportation, and disposal of covered products.
(q)(t)Program operator means a covered entity, or stewardship producer responsibility organization on behalf of a group of covered entities, that is responsible for operating a stewardship producer responsibility program in accordance with this chapter.
(r)(u)Proprietary information means information that is all of the following:
(1)Submitted pursuant to this chapter.
(2)A trade secret, or commercial or financial information, that is privileged or confidential, and is identified as such by the entity providing the information to the department.
(3)Not required to be disclosed under any other law or any regulation affecting a covered product or covered entity.
(s)(v)Retail pharmacy means an independent pharmacy, a supermarket pharmacy, a chain pharmacy, or a mass merchandiser pharmacy possessing a license from the state board to operate a pharmacy.
(t)(w)Retail pharmacy chain means a retail pharmacy with five or more stores in the state.
(u)(x)Sharps means hypodermic needles, pen needles, intravenous needles, lancets, and other devices that are used to penetrate the skin for the delivery of medications.
(v)(y)State board means the California State Board of Pharmacy.
(w)Stewardship organization means an organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 (21 U.S.C. Sec. 501(c)(3)) that is established by a group of covered entities in accordance with this chapter to develop, implement, and administer a stewardship program established pursuant to this chapter.(x)Stewardship plan, or plan means the plan for collecting and properly managing covered products that is developed by a covered entity or stewardship organization pursuant to this chapter.(y)Stewardship program means a stewardship program for the collection, transportation, and disposal of covered products.(z)Ultimate user means a state resident or other nonbusiness entity and includes a person who has lawfully obtained, and who possesses, a covered product, including a controlled substance, for the persons own use or for the use of a member of the persons household. Ultimate user does not include a needle exchange program established under Section 121349 of the Health and Safety Code, or a medical waste generator, as defined in Section 117705 of the Health and Safety Code.
SEC. 3.The heading of Article 2 (commencing with Section 42031) of Chapter 2 of Part 3 of Division 30 of the Public Resources Code is amended to read:2.Covered Entities and Stewardship Producer Responsibility OrganizationsSEC. 4.Section 42031 of the Public Resources Code is amended to read:42031.(a)(1)No later than 90 days after the effective date of this section, a covered entity shall provide a list of covered products, and a list and description of any drugs or sharps that are not covered products, that it sells or offers for sale in the state to the state board.
(2)A covered entity, or a stewardship producer responsibility organization on behalf of a group of covered entities, shall update the lists described in paragraph (1) and provide the updated lists to the state board on or before January 15 of each year or upon request of the department.
(b)No later than 90 days after the effective date of this section, a retail pharmacy that sells a covered product under its own label shall provide written notification to the state board identifying the covered entity from which the retail pharmacy obtains a covered product that the retail pharmacy sells under its store label.
(c)The state board shall verify the information received pursuant to subdivisions (a) and (b) and make it available to the department upon request.
(d)The state board may issue a letter of inquiry to any entity listed in subparagraphs (A) to (E), inclusive, of paragraph (1) of subdivision (f) of Section 42030 requesting a list of all drugs and sharps it distributes in California, regardless of whether the drugs or sharps are covered under this chapter, the name of the manufacturer of such those products, and any additional information necessary to carry out this chapter. An entity that is issued a letter of inquiry pursuant to this subdivision shall respond in writing no later than 60 days after receipt of the letter. Responses to those inquiries may be shared with the department, but are otherwise deemed proprietary and exempt from disclosure. If the entity does not believe it is a covered entity for purposes of this chapter, it shall submit all of the following to the state board in response to the letter of inquiry:
(1)The basis for the claim that it is not a covered entity.
(2)A list of any drugs and sharps it sells, distributes, repackages, or otherwise offers for sale within the state.
(3)If applicable, the name and contact information of the person or entity from which it obtains a drug or sharp identified pursuant to paragraph (2).
(e)The state board shall obtain and verify and, within 30 days of receipt or upon request by the department, submit to the department a list of drugs and sharps sold or offered for sale in the state excluded from the definition of covered drugs pursuant to paragraph (2) of subdivision (e) of Section 42030 or excluded from the definition of home-generated sharps waste in subdivision (l) of Section 42030.
(f)Notwithstanding Section 42036.4, information submitted by the state board to the department under this chapter may include proprietary information.
(g)The state board shall notify the department if any covered entity or stewardship producer responsibility organization is in violation of this section for purposes of enforcement by the department.
SEC. 5.Section 42031.4 of the Public Resources Code is amended to read:42031.4.(a)Except as specified in subdivision (d) of Section 42035, a covered entity is not in compliance with this chapter and is subject to penalties pursuant to Article 6 (commencing with Section 42035) if, commencing one year from the adoption of regulations pursuant to Section 42031.2, a covered product sold or offered for sale by the covered entity is not subject to an approved stewardship producer responsibility plan, which is submitted by the covered entity or by a stewardship producer responsibility organization that includes the covered entity, that has been approved by the department pursuant to Section 42032.
(b)In order to comply with the requirements of this chapter, a covered entity may establish and implement a stewardship producer responsibility program independently, or as part of a group of covered entities through membership in a stewardship producer responsibility organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 (21 U.S.C. Sec. 501(c)(3)).
SEC. 6.Section 42031.6 of the Public Resources Code is amended to read:42031.6.(a)A program operator shall conduct a comprehensive education and outreach program intended to promote participation in the stewardship producer responsibility program. At a minimum, the education and outreach program shall do all of the following:
(1)Promote its stewardship producer responsibility program to ultimate users by providing signage for hospitals, pharmacies, and other locations, as necessary.
(2)Provide educational and outreach materials for persons authorized to prescribe drugs, pharmacies, pharmacists, ultimate users, and others, as necessary.
(3)Establish an Internet Web site internet website that publicizes the location of authorized collectors and provides other information intended to promote the use of the stewardship producer responsibility program.
(4)Prepare and provide additional outreach materials not specified in this section, as needed to promote the collection and proper management of covered drugs and home-generated sharps waste.
(5)Encourage ultimate users to separate products that are not covered products from covered products, when appropriate, before submitting the covered products to an authorized collection site or mail-back program.
(b)A program operator shall not, as part of the education and outreach program, promote the disposal of a covered product in a manner inconsistent with the services offered to ultimate users by the stewardship producer responsibility program.
SEC. 7.The heading of Article 3 (commencing with Section 42032) of Chapter 2 of Part 3 of Division 30 of the Public Resources Code is amended to read:3.Stewardship Producer Responsibility PlansSEC. 8.Section 42032 of the Public Resources Code is amended to read:42032.(a)(1)Within six months of the adoption date of regulations by the department pursuant to Section 42031.2, a program operator shall submit to the department for approval a complete stewardship producer responsibility plan that meets the requirements of Section 42032.2 for the establishment and implementation of a stewardship producer responsibility program, in a format determined by the department.
(2)The department shall approve a proposed stewardship producer responsibility program if the program operator submits a completed plan that meets the requirements of this section.
(b)(1)Before submitting a stewardship producer responsibility plan to the department pursuant to this section, a program operator shall submit its proposed stewardship producer responsibility plan to the state board for review, and to any other applicable state agencies with areas of authority relative to the stewardship producer responsibility plan. The duration of time that the state board takes to review a stewardship producer responsibility plan pursuant to this paragraph shall not count toward the time limit specified in paragraph (1) of subdivision (a).
(2)An agency that receives a producer responsibility plan shall review the producer responsibility plan for compliance with state and federal laws and regulations related to the agencys respective authority. The agency shall determine compliance or noncompliance with those laws and regulations, and provide to the program operator that determination and an explanation for any finding of noncompliance, within 90 days of receipt of the producer responsibility plan.
(3)A program operator may submit an updated proposed producer responsibility plan to an agency that issued a determination of noncompliance to attempt to obtain a determination of compliance. A program operator shall submit any determination received from an agency when it submits its stewardship producer responsibility plan to the department.
(4)If, 90 days after submitting a producer responsibility plan to an applicable agency, a program operator has not received a response from the applicable agency, the program operator may submit a certification to the department that the stewardship producer responsibility plan is consistent with all other applicable laws and regulations.
(c)(1)The department shall determine if a stewardship producer responsibility plan is complete, including the determinations required pursuant to subdivision (b), and notify the submitting program operator within 30 days of receipt.
(2)If the department finds that the stewardship producer responsibility plan is complete, the departments 90-day review period for consideration of approval of the producer responsibility plan set forth in subdivision (d) shall commence upon the original date of receipt.
(3)If the department determines the stewardship producer responsibility plan is incomplete, the department shall identify for the program operator the required additional information, and the program operator shall resubmit the producer responsibility plan within 30 days.
(4)If the department determines upon resubmission that the stewardship producer responsibility plan is complete, the departments 90-day review period for consideration of approval of the producer responsibility plan shall commence upon the date of receipt of the resubmitted producer responsibility plan.
(d)(1)The department shall review a complete submitted stewardship producer responsibility plan and shall approve, disapprove, or conditionally approve the producer responsibility plan within 90 days of receipt of the complete producer responsibility plan.
(2)The department may consult with, or submit a stewardship producer responsibility plan for review to, the state board or another state agency it determines is necessary to determine the completeness of the stewardship producer responsibility plan or for making a determination on the approval of the stewardship producer responsibility plan or an amendment to the stewardship producer responsibility plan. The duration of time that the department takes to review a stewardship producer responsibility plan pursuant to this paragraph shall not count toward the 90-day time limit specified in paragraph (1).
(e)A program operator shall submit any significant changes to a stewardship producer responsibility plan in writing for approval by the department, and shall not implement the changes prior to that approval.
(f)(1)If the department disapproves a submitted stewardship producer responsibility plan pursuant to subdivision (d), the department shall explain, in writing within 30 days, how the producer responsibility plan does not comply with this chapter, and the program operator shall resubmit a revised producer responsibility plan to the department.
(2)If the department finds that the revised stewardship producer responsibility plan submitted by the program operator does not comply with the requirements of this chapter and disapproves the plan, the covered entity operating its own stewardship producer responsibility program, or the stewardship producer responsibility organization and the covered entities that are members of the stewardship producer responsibility organization, are not in compliance with this chapter until the program operator submits a producer responsibility plan that the department approves.
(g)A program operator shall fully implement operation of an approved stewardship producer responsibility program no later than 270 days after approval by the department of the stewardship producer responsibility plan that establishes the stewardship producer responsibility program.
(h)If a stewardship producer responsibility plan is revoked pursuant to subdivision (a) of Section 42035.4 or terminated by the program operator that submitted the producer responsibility plan, a covered entity no longer subject to that producer responsibility plan may, without being subject to penalties pursuant to Article 6 (commencing with Section 42035), sell or offer for sale covered products in the state for a period of up to one year after the producer responsibility plan terminated or was revoked if the covered entity continues to operate under the most recent approved stewardship producer responsibility plan to which the covered entity was subject.
(i)The department shall make all stewardship producer responsibility plans submitted pursuant to this section available to the public, except proprietary information in the plans protected pursuant to Section 42036.4.
SEC. 9.Section 42032.2 of the Public Resources Code is amended to read:42032.2.(a)(1)To be complete, a stewardship producer responsibility plan for covered drugs shall do all of the following:
(A)Identify and provide contact information for the stewardship producer responsibility organization, if applicable, and each participating covered entity, and identify each covered drug sold or offered for sale by each participating covered entity.
(B)Identify and provide contact information for the authorized collectors for the stewardship producer responsibility program, as well as the reasons for excluding any potential authorized collectors from participation in the program.
(C)Include any determinations provided by a state agency pursuant to subdivision (b) of Section 42032. Any determination of noncompliance shall be accompanied by a superseding determination of compliance.
(D)Demonstrate adequate funding for all administrative and operational costs of the stewardship producer responsibility program, to be borne by participating covered entities.
(E)Provide for a handling, transport, and disposal system that complies with applicable state and federal laws, including, but not limited to, regulations adopted by the United States Drug Enforcement Administration.
(F)Provide for a collection system that complies with the requirements of this chapter and meets all of the following requirements for authorized collection sites in each county in which the producer responsibility plan will be implemented:
(i)Provides for a minimum of five authorized collection sites or one authorized collection site per 50,000 people, whichever is greater.
(ii)Provides for a reasonable geographic spread of authorized collection sites and an explanation for the geographic spread.
(iii)Provides for a mail-back program covering any counties where there is not an authorized retail pharmacy operating as an authorized collection site.
(G)Require a program operator to do all of the following:
(i)Permit an ultimate user who is a homeless, homebound, or disabled individual to request prepaid, preaddressed mailing envelopes, or an alternative form of a collection and disposal system, as described in paragraph (2) of subdivision (c), that would render the covered drug inert. A program operator shall accept that request through an Internet Web site internet website and toll-free telephone number that it shall maintain to comply with the requests.
(ii)Provide alternative methods of collection from ultimate users for any covered drugs, other than controlled substances, that cannot be accepted or commingled with other covered drugs in secure collection receptacles or through a mail-back program, to the extent technically feasible and permissible under applicable state and federal law, including, but not limited to, United States Drug Enforcement Administration regulations.
(iii)(I)Provide a service schedule that meets the needs of each authorized collection site to ensure that each secure collection receptacle is serviced as often as necessary to avoid reaching capacity and that collected covered drugs are transported to final disposal in a timely manner. Additionally, a receipt or collection manifest shall be left with the authorized collection site to support verification of the service. The authorized collection site shall maintain and make available to the department this documentation.
(II)An authorized collector shall comply with applicable federal and state laws regarding collection and transportation standards, and the handling of covered drugs, including United States Drug Enforcement Administration regulations.
(H)Provide the policies and procedures for the safe and secure collection, transporting, and disposing of the covered drug, describe how and where records will be maintained and how, at a minimum, instances of security problems that occur will be addressed, and explain the processes that will be taken to change the policies, procedures, and tracking mechanisms to alleviate the problems and to improve safety and security.
(2)Paragraph (1) shall apply only with regard to covered drugs.
(b)(1)At least 120 days before submitting a stewardship producer responsibility plan to the department, the operator of a stewardship producer responsibility program for covered drugs shall notify potential authorized collectors in the county or counties in which it operates of the opportunity to serve as an authorized collector for the proposed stewardship producer responsibility program. If a potential authorized collector expresses interest in participating in a stewardship producer responsibility program, the program operator shall commence good faith negotiations with the potential authorized collector within 30 days.
(2)A retail pharmacy shall make a reasonable effort to serve as an authorized collector as part of a stewardship producer responsibility program in the county in which it is located. If the minimum threshold described in clause (i) of subparagraph (F) of paragraph (1) of subdivision (a) is not met in each county in which a retail pharmacy chain has store locations, the retail pharmacy chain shall have at least one location or 15 percent of its store locations, whichever is greater, in that county serve as authorized collectors in a stewardship producer responsibility program.
(3)A program operator shall include as an authorized collector under its stewardship producer responsibility program any entity listed in subdivision (b) of Section 42030 that offers to participate in the stewardship producer responsibility program, in writing and without compensation, even if the minimum convenience standards set in clause (i) of subparagraph (F) of paragraph (1) of subdivision (a) have been achieved. The program operator shall include the offering entity as an authorized collector in the program within 90 days of receiving the written offer to participate. A program operator shall not be required to respond to offers pursuant to this paragraph until the program operators stewardship producer responsibility plan has been approved by the department.
(c)After a stewardship producer responsibility plan for covered drugs has been approved, the program operator may supplement service, if approved by the department, for a county in which it operates that does not have the minimum number of authorized collection sites due to circumstances beyond the program operators control, by establishing one or both of the following:
(1)A mail-back program. The mail-back program may include providing information on where and how to receive mail-back materials or providing the locations at which it distributes prepaid, preaddressed mailing envelopes. The program operator shall propose the locations of those envelope distribution locations as part of the stewardship producer responsibility plan. Prepaid mailing envelopes may be mailed to an ultimate user upon request.
(2)An alternative form of collection and disposal of covered drugs that complies with applicable state and federal law, including, but not limited to, United States Drug Enforcement Administration regulations.
(d)(1)To be complete, a stewardship producer responsibility plan for home-generated sharps waste shall do all of the following:
(A)Identify and provide contact information for the stewardship producer responsibility organization, if applicable, and each participating covered entity, and identify each covered product sold or offered for sale by each participating covered entity.
(B)Include any determinations provided by a state agency pursuant to subdivision (b) of Section 42032. Any determination of noncompliance shall be accompanied by a superseding determination of compliance.
(C)Demonstrate adequate funding for all administrative and operational costs of the stewardship producer responsibility program, to be borne by participating covered entities.
(D)Provide for a handling, transport, and disposal system, at no cost to the ultimate user, that complies with applicable state and federal laws.
(E)Maintain an Internet Web site internet website and toll-free telephone number for purposes of providing information on the program, including disposal options, and to receive requests for sharps waste containers from ultimate users.
(F)Provide that a stewardship producer responsibility program for home-generated sharps waste shall be a mail-back program for home-generated sharps waste that complies with this chapter and that meets all the following requirements:
(i)The program provides or initiates distribution of a sharps waste container and mail-back materials at the point of sale, to the extent allowable by law. Containers and mail-back materials shall be provided at no cost to the ultimate user. The program operator shall select and distribute a container and mail-back materials sufficient to accommodate the volume of sharps purchased by an ultimate user over a selected time period.
(I)For any sharps, the packaging, an insert or instructions, or separate information provided to the ultimate user shall include information on proper sharps waste disposal.
(II)All sharps waste containers shall include on a label affixed to the container or packaging, or on a separate insert included in the container or packaging, the program operators Internet Web site internet website and toll-free telephone number.
(III)All sharps waste containers shall include prepaid postage affixed to the container or to the mail-back packaging.
(ii)Upon request, the program provides for reimbursement to local agencies for disposal costs related to home-generated sharps waste, unless the program operator provides for the removal of the home-generated sharps waste from the local household hazardous waste facility.
(I)A local agency shall not knowingly request reimbursement for disposal expenses pursuant to this subparagraph for disposal costs resulting from a municipal needle exchange program or a medical waste generator.
(II)Reimbursement costs shall be limited to the actual costs of transportation from the household hazardous waste facility and for the actual costs of disposal.
(III)A request for reimbursement pursuant to this clause shall be submitted with a declaration under penalty of perjury that the local agency has not knowingly requested reimbursement for expenses prohibited by this section.
(IV)A cost is eligible for reimbursement pursuant to this clause if the cost is incurred 270 days or more after the approval of a stewardship producer responsibility plan for home-generated sharps waste.
(2)Paragraph (1) shall apply only with regard to home-generated sharps waste.
(e)A stewardship producer responsibility plan shall include provisions to expand into jurisdictions not included in the stewardship producer responsibility plan pursuant to Section 42036.2, in the event a jurisdiction repeals its local stewardship or producer responsibility program ordinance.
(f)A stewardship producer responsibility plan shall include educational and outreach provisions to meet the requirements of Section 42031.6.
SEC. 10.Section 42033 of the Public Resources Code is amended to read:42033.With the submission of a stewardship producer responsibility plan, a program operator shall submit to the department an initial stewardship producer responsibility program budget for the first five calendar years of operation of its stewardship producer responsibility program that includes both of the following:
(a)Total anticipated revenues and costs of implementing the stewardship producer responsibility program.
(b)A total recommended funding level sufficient to cover the producer responsibility plans budgeted costs and to operate the stewardship producer responsibility program over a multiyear period.
SEC. 11.Section 42033.2 of the Public Resources Code is amended to read:42033.2.(a)On or before March 31, 2022, and each year thereafter, 31 of each year, a program operator shall prepare and submit to the department both of the following:
(1)A written report describing the stewardship producer responsibility program activities during the previous reporting period of one year.
(2)A written program budget for stewardship producer responsibility program implementation for the upcoming calendar year.
(b)An annual report submitted pursuant to paragraph (1) of subdivision (a) shall include, at a minimum, all of the following for the prior year:
(1)A list of covered entities participating in the stewardship producer responsibility organization.
(2)The updated and reverified list provided pursuant to paragraph (2) of subdivision (a) of Section 42031 of covered products that each covered entity subject to the stewardship producer responsibility plan sells or offers for sale.
(3)The amount, by weight, of covered products collected from ultimate users at each authorized collection site that is part of the stewardship producer responsibility program.
(4)For a stewardship producer responsibility plan for covered drugs, the name and location of authorized collection sites at which covered drugs were collected.
(5)For a stewardship producer responsibility plan for home-generated sharps waste, information on the mail-back program.
(6)Whether policies and procedures for collecting, transporting, and disposing of covered products, as established in the stewardship producer responsibility plan, were followed during the reporting period and a description of each instance of noncompliance, if any occurred.
(7)Whether any safety or security problems occurred during collection, transportation, or disposal of collected covered products during the reporting period and, if so, what changes have been or will be made to policies, procedures, or tracking mechanisms to alleviate the problem and to improve safety and security.
(8)How the program operator complied with all elements in its stewardship producer responsibility plan.
(9)Any other information the department reasonably requires.
(c)An annual program budget submitted pursuant to paragraph (2) of subdivision (a) shall include, at a minimum, both of the following for the upcoming calendar year:
(1)An independent financial audit of the stewardship producer responsibility program, as required by subdivision (b) of Section 42033.4, funded by the stewardship producer responsibility organization from the charge paid from its member covered entities pursuant to Section 42034 or by a covered entity if it operates its own stewardship producer responsibility program.
(2)Anticipated costs and the recommended funding level necessary to implement the stewardship producer responsibility program, including, but not limited to, costs to cover the stewardship producer responsibility plans budgeted costs and to operate the stewardship producer responsibility program over a multiyear period in a prudent and responsible manner.
(d)(1)The department shall determine if a submitted annual report and program budget are complete and notify the submitting stewardship producer responsibility organization or covered entity within 30 days.
(2)If the department finds that an annual report and program budget are complete, the departments 90-day review period for consideration of approval of the annual report and program budget, set forth in subdivision (e), shall commence upon the original date of receipt.
(3)If the department determines either an annual report or a program budget is incomplete, the department shall identify for the program operator within 30 days the required additional information, and the program operator shall submit a revised annual report or program budget, as applicable, within 30 days.
(4)If the department determines upon resubmission that the annual report or program budget is complete, the departments 90-day review period for consideration of approval of the annual report or program budget shall commence upon the date of receipt of the resubmitted report or program budget.
(e)(1)The department shall review the annual report and program budget required pursuant to this section and within 90 days of receipt shall approve, disapprove, or conditionally approve the annual report and program budget.
(2)(A)If the department conditionally approves an annual report or program budget, the department shall identify the deficiencies in the annual report or program budget and the program operator shall comply with the conditions of the conditional approval within 60 days of the notice date, unless the Director of Resources Recycling and Recovery determines that additional time is needed.
(B)If the department conditionally approves an annual report or program budget and the conditions are not met within 60 days of the notice date, unless additional time is granted pursuant to subparagraph (A), the department shall disapprove the annual report or program budget.
(3)If the department disapproves an annual report or program budget, the department shall identify the deficiencies in the annual report or program budget and the program operator shall submit a revised annual report or program budget and provide any supplemental information requested within 60 days of the notice date.
SEC. 12.Section 42033.4 of the Public Resources Code is amended to read:42033.4.(a)A program operator shall keep minutes, books, and records that clearly reflect the activities and transactions of the program operators stewardship producer responsibility program.
(b)(1)The minutes, books, and records of a program operator shall be audited at the program operators expense by an independent certified public accountant retained by the program operator at least once each calendar year.
(2)A program operator shall arrange for the independent certified public accountant audit to be delivered to the department, along with the annual report and program budget submitted pursuant to subdivision (a) of Section 42033.2.
(3)The department may conduct its own audit of a program operator. The department shall review the independent certified public accountant audit for compliance with this chapter and consistency with the program operators stewardship producer responsibility plan, annual report, and program budget submitted pursuant to this chapter. The department shall notify the program operator of any conduct or practice that does not comply with this chapter or of any inconsistencies identified in the departments audit. The program operator may obtain copies of the departments audit, including proprietary information contained in the departments audit, upon request. The department shall not disclose any confidential proprietary information protected pursuant to Section 42036.4 that is included in the departments audit.
SEC. 13.Section 42033.6 of the Public Resources Code is amended to read:42033.6.As part of the administration of this chapter, within 12 months of a program operators submission of three consecutive complete annual reports submitted pursuant to Section 42033.2, the department shall develop, and post on its Internet Web site, internet website, a report analyzing whether the program operators stewardship producer responsibility program provides adequate access to safe disposal of home-generated sharps waste or covered drugs, as applicable, to the ultimate user.
SEC. 14.Section 42034 of the Public Resources Code is amended to read:42034.In order to further the objective that covered entities establish and implement stewardship producer responsibility programs that comply with the requirements of this chapter, each covered entity, either individually or through a stewardship producer responsibility organization, shall pay all administrative and operational costs associated with establishing and implementing the stewardship producer responsibility program in which it participates, including the cost of collecting, transporting, and disposing of covered products.
SEC. 15.Section 42034.2 of the Public Resources Code is amended to read:42034.2.(a)(1)On or before the end of the 202223 fiscal year, and on March 1 and September 1 of each year thereafter, year, a program operator shall pay to the department an administrative fee. The department shall set the fee at an amount that, when paid by every covered entity, is adequate to cover the departments and any other state agencys projected full costs of administering and enforcing this chapter, including any incurred costs that have not been reimbursed. Before March 1 and September 1 of each year, the department shall compare the total amount of fees collected for the operative billing cycle to the total actual and reasonable costs of administering and enforcing this chapter over the same period so that the total amount of fees collected is adequate and does not exceed the states full actual and reasonable regulatory costs to implement and enforce this chapter. These costs may include the actual and reasonable costs associated with regulatory activities pursuant to this chapter before submission of stewardship producer responsibility plans pursuant to Section 42032.
(2)For a stewardship producer responsibility organization, the administrative fee paid pursuant to paragraph (1) shall be funded by the covered entities that make up the stewardship producer responsibility organization. This administrative fee shall be in addition to the charge paid pursuant to Section 42034. A stewardship producer responsibility organization may require its participating covered entities to pay the administrative fee and the charge paid pursuant to Section 42034 at the same time.
(b)The department shall deposit administrative fees paid by a program operator pursuant to subdivision (a) into the Pharmaceutical and Sharps Stewardship Fund, which is hereby established. Producer Responsibility Fund. Upon appropriation by the Legislature, moneys in the fund may be expended by the department, the state board, and any other agency that assists in the regulatory activities of administering and enforcing this chapter. Upon appropriation by the Legislature, moneys in the fund may be used for those regulatory activities and to reimburse any outstanding loans made from other funds used to finance the startup costs of the departments activities pursuant to this chapter. Moneys in the fund shall not be expended for any purpose not enumerated in this chapter.
(c)The Pharmaceutical and Sharps Stewardship Fund, established by Section 1 of Chapter 1004 of the Statutes of 2018 (Senate Bill No. 212), is hereby renamed and continued in existence as the Pharmaceutical and Sharps Producer Responsibility Fund.
SEC. 16.Section 42034.4 of the Public Resources Code is amended to read:42034.4.(a)(1)A stewardship producer responsibility organization may conduct an audit of covered entities that are required to remit a charge or administrative fee to the stewardship producer responsibility organization pursuant to Sections 42034 and 42034.2 to verify that the administrative fees and charges paid are proper and accurate. In addition, a stewardship producer responsibility organization may conduct an audit of authorized collectors to verify the charges submitted are proper and accurate.
(2)The purpose of the audits described in paragraph (1) is to ensure parties required by this chapter to pay or collect an administrative fee or charge are paying or collecting the proper amount to implement the program.
(b)If a stewardship producer responsibility organization conducts an audit pursuant to subdivision (a), it shall do all of the following:
(1)Conduct the audit in accordance with generally accepted auditing practices.
(2)Limit the scope of the audit of covered entities to confirming whether a charge or administrative fee has been properly paid by the covered entities.
(3)Hire an independent third-party auditor to conduct the audit.
(4)Provide a copy of the audit to the department.
SEC. 17.Section 42035 of the Public Resources Code is amended to read:42035.(a)(1)On or before June 30, 2022, and at least annually thereafter, 30th of each year, the department shall post on its Internet Web site internet website a list of stewardship producer responsibility organizations, including entities with an approved stewardship producer responsibility plan, and covered entities, authorized collection sites, retail pharmacies, and retail pharmacy chains provided in the stewardship producer responsibility plans that are in compliance with this chapter.
(2)The state board shall coordinate with the department to verify that the list posted pursuant to paragraph (1) is consistent with the information submitted to each agency pursuant to Section 42031.
(b)A covered entity or stewardship producer responsibility organization that is not listed on the departments Internet Web site internet website pursuant to subdivision (a), but demonstrates compliance with this chapter before the department is required to post the following years list pursuant to subdivision (a), may request a certification letter from the department stating that the covered entity or stewardship producer responsibility organization is in compliance with this chapter. A covered entity or stewardship producer responsibility organization that receives a certification letter shall be deemed to be in compliance with this chapter.
(c)A distributor or wholesaler of covered products, and a pharmacy or other retailer that sells or offers for sale a covered product, shall monitor the departments Internet Web site internet website to determine which covered entities and stewardship producer responsibility organizations are in compliance with this chapter. The distributor or wholesaler and the pharmacy or other retailer shall notify the department if it determines that a covered product that it sells or offers for sale is from a covered entity that is not listed on the departments Internet Web site. internet website.
(d)The sale, distribution, or offering for sale of any inventory that was in stock before the commencement of a stewardship producer responsibility program is exempt from this chapter and not required to be subject to a stewardship producer responsibility plan.
(e)If the department determines a covered entity or stewardship producer responsibility organization is not in compliance with this chapter, the department shall remove the entity from the list maintained on the departments Internet Web site internet website pursuant to subdivision (a).
SEC. 18.Section 42035.2 of the Public Resources Code is amended to read:42035.2.(a)(1)The department may impose an administrative penalty on any covered entity, program operator, stewardship producer responsibility organization, or authorized collector that sells, offers for sale, or provides a covered product in violation of this chapter.
(2)The amount of the administrative penalty imposed pursuant to this subdivision shall not exceed ten thousand dollars ($10,000) per day unless the violation is intentional, knowing, or reckless, in which case the administrative penalty shall not exceed fifty thousand dollars ($50,000) per day.
(b)The department shall not impose a penalty on a program operator pursuant to this section for failure to comply with this chapter if the program operator demonstrates it received false or misleading information that contributed to its failure to comply, including, for a stewardship producer responsibility organization, from a participating covered entity.
(c)The department shall deposit all penalties collected pursuant to this section in the Pharmaceutical and Sharps Stewardship Penalty Account, which is hereby created Producer Responsibility Penalty Account, in the Pharmaceutical and Sharps Stewardship Fund established in Section 42034.2. Producer Responsibility Fund. Upon appropriation by the Legislature, moneys in the Pharmaceutical and Sharps Stewardship Producer Responsibility Penalty Account may be expended by the department on activities including, but not limited to, the promotion of safe handling and disposal of covered products, grants for related purposes, and the administration and enforcement of this chapter.
(d)The Pharmaceutical and Sharps Stewardship Penalty Account, established by Section 1 of Chapter 1004 of the Statutes of 2018 (Senate Bill No. 212), is hereby renamed and continued in existence as the Pharmaceutical and Sharps Producer Responsibility Penalty Account.
SEC. 19.Section 42035.4 of the Public Resources Code is amended to read:42035.4.Upon a written finding that a covered entity, program operator, stewardship producer responsibility organization, or authorized collector has not met a material requirement of this chapter, in addition to any other penalties authorized under this chapter, the department may take one or both of the following actions to ensure compliance with the requirements of this chapter, after affording the covered entity, stewardship producer responsibility organization, or authorized collector a reasonable opportunity to respond to, or rebut, the finding:
(a)Revoke the program operators stewardship producer responsibility plan approval or require the program operator to resubmit the producer responsibility plan.
(b)Require additional reporting relating to compliance with the material requirement of this chapter that was not met.
SEC. 20.Section 42035.6 of the Public Resources Code is amended to read:42035.6.(a)A covered entity, stewardship producer responsibility organization, program operator, retail pharmacy, or retail pharmacy chain shall do both of the following:
(1)Upon request, provide the department with reasonable and timely access, as determined by the department, to its facilities and operations, as necessary to determine compliance with this chapter.
(2)Upon request, provide the department with relevant records necessary to determine compliance with this chapter.
(b)A covered entity, stewardship producer responsibility organization, program operator, retail pharmacy, or retail pharmacy chain shall maintain and keep accessible all records required to be kept or submitted pursuant to this chapter for a minimum of three years.
(c)All reports and records provided to the department pursuant to this chapter shall be provided under penalty of perjury.
(d)The department may take disciplinary action against a covered entity, stewardship producer responsibility organization, program operator, pharmacy, retail pharmacy, or retail pharmacy chain that fails to provide the department with the access to information required pursuant to this section, including one or both of the following:
(1)Imposing an administrative penalty pursuant to Section 42035.2.
(2)Posting a notice on the departments Internet Web site, internet website, in association with the list that the department maintains pursuant to paragraph (1) of subdivision (a) of Section 42035, that the covered entity, stewardship producer responsibility organization, program operator, pharmacy, retail pharmacy, or retail pharmacy chain is no longer in compliance with this chapter.
(e)The department shall not prohibit as a disciplinary action a covered entity, stewardship producer responsibility organization, program operator, pharmacy, retail pharmacy, or retail pharmacy chain from selling a covered product.
SEC. 21.Section 42035.8 of the Public Resources Code is amended to read:42035.8.All handling, transport, and disposal undertaken as part of a stewardship producer responsibility program under this chapter shall comply with applicable state and federal laws, including, but not limited to, regulations adopted by the United States Drug Enforcement Administration.
SEC. 22.Section 42036 of the Public Resources Code is amended to read:42036.(a)Except as provided in subdivision (c), an action specified in subdivision (b) that is taken by a stewardship producer responsibility organization or a covered entity pursuant to this chapter is not a violation of the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code), or the Unfair Competition Law (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code).
(b)Subdivision (a) shall apply to all of the following actions taken by a stewardship producer responsibility organization or covered entity:
(1)The creation, implementation, or management of a stewardship producer responsibility plan approved by the department pursuant to Article 3 (commencing with Section 42032) and the determination of the types or quantities of covered products collected or otherwise managed pursuant to a stewardship producer responsibility plan.
(2)The determination of the cost and structure of an approved stewardship producer responsibility plan.
(3)The establishment, administration, collection, or disbursement of the charge or administrative fee imposed pursuant to Section 42034 or 42034.2, respectively.
(c)Subdivision (a) shall not apply to an agreement that does any of the following:
(1)Fixes a price of or for covered products, except for an agreement related to costs, charges, or administrative fees associated with participation in a stewardship producer responsibility plan approved by the department and otherwise in accordance with this chapter.
(2)Fixes the output of production of covered products.
(3)Restricts the geographic area in which, or customers to whom, covered products are sold.
SEC. 23.Section 42036.2 of the Public Resources Code is amended to read:42036.2.(a)This chapter does not apply to a drug or sharp within a jurisdiction that is subject to a local stewardship or producer responsibility program pursuant to an ordinance that took effect before April 18, 2018. If that ordinance is repealed in the jurisdiction or, if more than one ordinance is applicable, those ordinances are repealed in the jurisdiction, the drug or sharp shall be subject to this chapter in that jurisdiction within 270 days after the date on which the ordinance is, or ordinances are, repealed.
(b)This chapter shall preempt a local stewardship or producer responsibility program for drugs or sharps enacted by an ordinance or ordinances with an effective date on or after April 18, 2018.
(c)A local stewardship or producer responsibility program for covered products enacted by an ordinance that has an effective date before April 18, 2018, may continue in operation, but the program and its participants shall not receive or benefit from moneys from the Pharmaceutical and Sharps Stewardship Producer Responsibility Fund or the Pharmaceutical and Sharps Stewardship Producer Responsibility Penalty Account, including, but not limited to, for administrative or enforcement costs. Participants of a local stewardship or producer responsibility program for covered products enacted by an ordinance that has an effective date before April 18, 2018, shall be eligible to participate in a stewardship producer responsibility program under this chapter and thereby become eligible to receive funds from the Pharmaceutical and Sharps Stewardship Producer Responsibility Fund or the Pharmaceutical and Sharps Stewardship Producer Responsibility Penalty Account only if the local stewardship or producer responsibility program is dissolved.
SEC. 24.Section 42036.4 of the Public Resources Code is amended to read:42036.4.Proprietary information submitted to the department under this chapter shall be protected by all parties as confidential and shall be exempt from public disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code). The department and other parties may only disclose proprietary information in an aggregated form that does not directly or indirectly identify financial, production, or sales data of an individual covered entity or stewardship producer responsibility organization. Proprietary information may be disclosed to the party that submitted the proprietary information.
SECTION 1.Section 25211.4 of the Health and Safety Code is amended to read:25211.4.(a)A person wishing to operate as a certified appliance recycler shall submit an initial or a renewal application to the department and obtain or renew certification from the department pursuant to this section. The department shall make available on its internet website an application for certification as a certified appliance recycler that requires all of the following:(1)The business name under which the appliance recycler operates, the telephone number, the physical address and mailing address, if different, and the business owners name, address, and telephone number.(2)A hazardous waste generator identification number issued by the department pursuant to this chapter.(3)A statement indicating that the applicant has either filed an application for a stormwater permit or is not required to obtain a stormwater permit.(4)A statement indicating that the applicant has either filed a hazardous materials business plan or is not required to file the plan.(5)The tax identification number assigned by the Franchise Tax Board.(6)A copy of a business license and any conditional use permits issued by the appropriate city or county.(7)A description of the ability of the applicant to properly remove and manage all materials that require special handling, including, but not limited to, a technical description of how each material requiring special handling will be removed and a description of how each material requiring special handling will be managed by the applicant consistent with applicable laws.(8)Any other information that the department may determine to be necessary to carry out this article.(b)A person wishing to operate as a certified appliance recycler shall submit to the department, under penalty of perjury, the information required pursuant to subdivision (a). The department shall review the application for completeness and, upon determining that the application is complete and meets the requirements of this section, shall issue a numbered certificate to the applicant. The department shall notify an applicant whose application fails to meet the requirements for certification of the reason why the department denied the certification. The department may revoke or suspend a certification issued pursuant to this section, in accordance with the procedures specified in Sections 25186.1 and 25186.2, for any of the grounds specified in Section 25186.(c)The certificate issued by the department shall include the issuance date and the expiration date, which shall be three years after the issuance date. A person whose certification has expired, and who has not applied for and obtained a new current certification, is no longer a certified appliance recycler and may no longer operate as a certified appliance recycler.(d)Upon issuance of a certificate, the department shall transmit the application and certification of the certified appliance recycler to the certified unified program agency in whose jurisdiction the person is located. The certified unified program agency shall inspect the certified appliance recycling facility to determine whether the recycler is capable of properly removing and managing materials that require special handling from major appliances. In making the determination, the certified unified program agency shall consider various factors, including, but not limited to, the working condition of equipment used to remove the materials, the technical ability of employees of the business to operate the equipment proficiently, and the facilitys compliance with existing applicable laws. Following the inspection, the certified unified program agency shall transmit the results of the inspection to the department. The department may take any enforcement action authorized pursuant to this chapter based on the results of the inspection and any other pertinent information.SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.(a)On and after January 1, 2008, a A person wishing to operate as a certified appliance recycler, except a person having a certification issued before January 1, 2008, until that certification expires, recycler shall submit an initial or a renewal application to the department and obtain or renew certification from the department pursuant to this section. The department shall make available on its Internet Web site internet website an application for certification as a certified appliance recycler that requires all of the following:
(1)The business name under which the appliance recycler operates, the telephone number, the physical address and mailing address, if different, and the business owners name, address, and telephone number.
(2)A hazardous waste generator identification number issued by the department pursuant to this chapter.
(3)A statement indicating that the applicant has either filed an application for a stormwater permit or is not required to obtain a stormwater permit.
(4)A statement indicating that the applicant has either filed a hazardous materials business plan or is not required to file the plan.
(5)The tax identification number assigned by the Franchise Tax Board.
(6)A copy of a business license and any conditional use permits issued by the appropriate city or county.
(7)A description of the ability of the applicant to properly remove and manage all materials that require special handling, including, but not limited to, a technical description of how each material requiring special handling will be removed and a description of how each material requiring special handling will be managed by the applicant consistent with applicable laws.
(8)Any other information that the department may determine to be necessary to carry out this article.
(b)A person wishing to operate as a certified appliance recycler shall submit to the department, under penalty of perjury, the information required pursuant to subdivision (a). The department shall review the application for completeness and, upon determining that the application is complete and meets the requirements of this section, shall issue a numbered certificate to the applicant. The department shall notify an applicant whose application fails to meet the requirements for certification of the reason why the department denied the certification. The department may revoke or suspend a certification issued pursuant to this section, in accordance with the procedures specified in Sections 25186.1 and 25186.2, for any of the grounds specified in Section 25186.
(c)The certificate issued by the department shall include the issuance date and the expiration date, which shall be three years after the issuance date. A person whose certification has expired, and who has not applied for and obtained a new current certification, is no longer a certified appliance recycler and may no longer operate as a certified appliance recycler.
(d)Upon issuance of a certificate, the department shall transmit the application and certification of the certified appliance recycler to the certified uniform unified program agency in whose jurisdiction the person is located, which shall, as soon as is practicable, located. The certified unified program agency shall inspect the certified appliance recycling facility to determine whether the recycler is capable of properly removing and managing materials that require special handling from major appliances. In making the determination, the certified uniform unified program agency shall consider various factors, including, but not limited to, the working condition of equipment used to remove the materials, the technical ability of employees of the business to operate the equipment proficiently, and the facilitys compliance with existing applicable laws. Following the inspection, the certified unified program agency shall transmit the results of the inspection to the department. The department may take any enforcement action authorized pursuant to this chapter based on the results of the inspection and any other pertinent information.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
|
Date
|
Status
|
|---|---|
| Oct 10, 2025 | Chaptered by Secretary of State - Chapter 498, Statutes of 2025. |
| Oct 10, 2025 | Approved by the Governor. |
| Sep 16, 2025 | Enrolled and presented to the Governor at 2 p.m. |
| Sep 9, 2025 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 66. Noes 0. Page 3097.). |
| Sep 8, 2025 | From committee: That the Senate amendments be concurred in. (Ayes 7. Noes 0.) (September 8). |
| Sep 4, 2025 | Re-referred to Com. on H. & C.D. pursuant to Assembly Rule 77.2. |
| Sep 4, 2025 | In Assembly. Concurrence in Senate amendments pending. |
| Sep 3, 2025 | Read third time. Passed. Ordered to the Assembly. (Ayes 38. Noes 0. Page 2468.). |
| Aug 20, 2025 | Read second time. Ordered to third reading. |
| Aug 19, 2025 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8. |
| Jul 16, 2025 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (July 15). Re-referred to Com. on APPR. |
| Jun 25, 2025 | Re-referred to Com. on JUD. |
| Jun 13, 2025 | Re-referred to Com. on RLS. |
| Jun 13, 2025 | Withdrawn from committee. |
| Jun 12, 2025 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on E.Q. |
| May 21, 2025 | Referred to Com. on E.Q. |
| May 8, 2025 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 8, 2025 | Read third time. Passed. Ordered to the Senate. (Ayes 69. Noes 0. Page 1485.) |
| May 1, 2025 | Read second time. Ordered to Consent Calendar. |
| Apr 30, 2025 | From committee: Do pass. To Consent Calendar. (Ayes 7. Noes 0.) (April 29). |
| Apr 22, 2025 | Re-referred to Com. on E.S & T.M. |
| Apr 21, 2025 | From committee chair, with author's amendments: Amend, and re-refer to Com. on E.S & T.M. Read second time and amended. |
| Mar 13, 2025 | Re-referred to Com. on E.S & T.M. |
| Mar 12, 2025 | From committee chair, with author's amendments: Amend, and re-refer to Com. on E.S & T.M. Read second time and amended. |
| Mar 3, 2025 | Referred to Com. on E.S & T.M. |
| Feb 19, 2025 | From printer. May be heard in committee March 21. |
| Feb 18, 2025 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 9, 2025 | AB 754 Connolly Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Sep 8, 2025 | With recommendation: That Senate amendments be concurred in. | Assembly Standing Committee on Housing and Community Development |
Passed |
|
| Sep 3, 2025 | Assembly 3rd Reading AB754 Connolly By Umberg | Senate Floor |
Passed |
|
| Jul 15, 2025 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Judiciary |
Passed |
|
| May 8, 2025 | AB 754 Connolly Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| Apr 29, 2025 | Do pass. To Consent Calendar. | Assembly Standing Committee on Environmental Safety and Toxic Materials |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Chris Tellis, Harbormaster, Yellow Ferry Harbor | ** Support | |
| Commodore Marina & Seaplane Investment | ** Support | |
| County of Marin | ** Support | |
| Floating Homes Association | ** Support | |
| Kappas Marina | ** Support | |
| Waldo Point Harbor | ** Support |
CONCURRENCE IN SENATE AMENDMENTS
CSA2 Bill Id:AB 754
Author:(Connolly)
As Amended Ver:June 12, 2025
Majority vote
SUMMARY
Original Committee of Reference: E.S. & T.M.
Modifies an existing state floating home rent cap and certain fee provisions for floating homes in marinas in the County of Marin, until January 1, 2038.
Senate Amendments
Current Committee Recommendation: Concur
Delete the Assembly version of the bill and instead:
- Prohibit management of a floating home marina in the County of Marin from increasing, over any 12-month period, the gross rental rate for a tenancy for a floating home berth more than the percent change in the cost of living, and provides that if the rent is increased, the increase must be a minimum of 3% up to a maximum of 7.5%.
- Provide that if the annual percent change in the cost of living exceeds 5%, only one-half of the percent change in cost of living that is in excess of 5% may be used to increase the rent up to the maximum allowable increase of 7.5%.
- Apply the modified rent cap in 1) and 2) above to all rent increases occurring on or after July 1, 2025.
- Provide that, in the event management has increased the rent by more than the amount permissible under this bill between July 1, 2025 and January 1, 2026, both of the following apply:
- The applicable rent on January 1, 2026 shall be the rent as of July 1, 2025, plus the maximum permissible increase under 1) above; and
- Management shall not be liable to a homeowner for any corresponding rent overpayment.
- Require management to provide notice of any increase in the rental rate under this bill to each homeowner in accordance with specified law.
- Allow management, in the event a qualifying in-place transfer of a floating home involves the sale of a floating home either subject to an existing lease with a 10-year or longer term or that was offered a lease with a 10-year or longer term between two years and six months prior to the time of the home sale, to establish a new initial rental rate for a prospective homeowner consistent with the following:
- Prohibits the new initial rental rate from exceeding the lesser of either of the following:
- A 25% increase over the rental rate prior to the sale; or
- 0.15% of the sale price of the home;
- If the formula in 6) a) above results in a new initial rental rate that is less than a 3% increase over the rental rate immediately prior to the time of the home sale, the new initial rental rate shall not exceed the rental rate immediately prior to the time of the home sale plus the most recent percent change in the cost of living, with a minimum increase of 3% and a maximum increase of 5%;
- Requires the final sale price of the home provided to the marina owner to be certified and substantiated in writing by the buyer to be true under penalty of perjury, as specified;
- Requires lease terms offered after an in-place transfer to be at least 10 years;
- Provides that, in the event a floating home sold pursuant to 6) a) above is sold again within five years, the new total monthly initial rental rate shall not exceed the lesser of either of the following:
- A 15% increase over the rent prior to the sale; or
- 0.15% of the sale price of the home; and
- Applies the provisions of 6) above to all in-place transfers occurring between July 1, 2025 and July 1, 2026, regardless of whether the floating home was subject to an existing lease with a 10-year or longer term or was offered a lease with a 10-year or longer term between two years and six months prior to the time of the home sale.
- Prohibits the new initial rental rate from exceeding the lesser of either of the following:
- Exempt from 1) to 6) above a tenancy for any of the following:
- A floating home berth restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined; and
- A floating home berth subject to any ordinance, rule, regulation, or initiative measure that allows annual increases in the rental rate up to an amount less than that provided in this bill.
- Declare any waiver of the rights under this bill as void and contrary to public policy.
- Provide that nothing in the modified rent cap provisions above affects the authority of a local government to adopt or maintain an ordinance, rule, regulation, or initiative measure that establishes a maximum amount that may be charged for rent or the rental rate for a new tenancy, including any ordinance, rule, regulation, or initiative measure adopted before the effective date of this bill. However, if a local ordinance, rule, regulation, or initiative measure allows for the rental rate for a new tenancy or a rental rate increase greater than that provided this bill, the modified rent cap shall apply.
- Provide that this bill is not intended to express any policy regarding the appropriate, allowable rental rate increase limitations imposed by ordinance, rule, regulation, or initiative measure regulating rent increases adopted before or after the effective date of this bill.
- Define, for purposes of the bill, the following terms:
- "Consumer Price Index for All Urban Consumers for All Items" or "CPI-U" to mean the Consumer Price Index for All Urban Consumers for All Items for the San Francisco-Oakland-Hayward metropolitan area, or any successor metropolitan area index;
- "Percentage change in the cost of living" to mean the percentage change in the applicable CPI-U, and computed as specified; and
- "In place transfer" to mean the sale of a floating home where the floating home is transferred by a homeowner to a subsequent homeowner and remains docked at the same berth.
- Apply 1) to 11) above only to floating home marinas in the County of Marin, and sunsets and repeals these provisions on January 1, 2038.
- Apply the following fee provisions to floating home marinas in the County of Marin, and sunsets and repeals these provisions on January 1, 2038:
- Requires fees for utilities and incidental reasonable charges for services actually rendered to a homeowner to reflect actual costs;
- Requires a marina owner to demonstrate for all fees charged to a homeowner that the service was or is currently being actually rendered; and
- Prohibits a marina owner from charging a homeowner a fee for enforcement of a marina''s rules and regulations.
Find and declare that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of floating home marinas in the County of Marin that have been operating with 10-year or longer leases, as specified.
COMMENTS
Background on Floating Home Marinas: Floating homes are stationary waterborne residential dwellings that do not have an independent power source and require continuous utility and sewer connections to onshore sources. Floating homes are governed by the Floating Home Residency Law (FHRL) which specifies various aspects of the relationship between floating home owners and marinas (Civil Code Section 800 et seq.). The FHRL includes terms of leases, termination of a floating home tenancy, and procedures for the sale and transfer of floating homes. Under the FHRL, a floating home marina is defined as any area with at least five floating home berths that rents out more than 10% of the berths.
There are an estimated 500 floating homes in the San Francisco Bay Area with marinas located in the cities of Sausalito, Alameda, and Richmond. The first floating homes in Sausalito appeared in the early 20th century, though the number of floating homes on the city''s waterfront increased dramatically during World War II to accommodate the influx of workers who came to fill jobs in the area''s shipyards. Like mobilehome owners who own the unit but not the land underneath, owners of floating homes own the vessel but pay rent to the marina for use of the berth. Another parallel between mobilehomes and floating homes is that both tend to be cost prohibitive or impossible to move from their current location.
Even when a unit can be moved, there are a very limited number of berths available in floating home marinas. Rent increases on floating homes, again similarly to mobilehomes, can also negatively impact a homeowner''s equity and the potential resale value of their home since future owners will be required to bear the cost of increased monthly rents.
Floating Home Rent Cap: In 2022, in response to rent increases at floating home marinas, AB 252 (Bonta), Chapter 633, limited allowable berth rent increases in marinas in the counties of Alameda, Contra Costa, and Marin to no more than 3% plus the change in the cost of living (CPI) up to a maximum increase of 5% per year. As with the limits on rent increases for certain renters under the Tenant Protection Act of 2019 [AB 1482 (Chiu), Chapter 59] and certain mobilehome owners under AB 978 (Quirk-Silva), Chapter 125, Statutes of 2021, the rent cap in AB 252 (Bonta) will sunset on January 1, 2030.
Under AB 252 (Bonta), marina management can issue up to two rent increases per 12 month period as long as the same tenant continues to rent the berth from the marina during that time period. The law also prohibits the management of a floating home from increasing the rent on a homeowner who purchases a floating home through an in-place transfer. An in-place transfer means the home continues to be docked at the berth and is not towed to a new location. However, if a floating home is towed to a new location and the berth becomes vacant, then the marina owner could increase rent as much as they desire unless there is a local city or county policy in place that limits increases between tenancies. This contrasts with state laws governing rent control in apartments and homes under the Costa-Hawkins Rental Housing Act (Civil Code Section 1954.50 et seq.), which preempts any local effort to regulate the amount of rent that can be charged between tenancies ("vacancy control").
AB 252 and Impacts to Marin County: While intended to prevent sudden rent hikes, the framework in AB 252 (Bonta) did not account for Marin County''s longstanding use of multi-decade CPI-based leases (10-30 years) and its reliance on modest vacancy adjustments at the time of sale to fund critical infrastructure investments in marinas. As a result, AB 252 led to unintended consequences in Marin, including higher year-over-year rent increases (5% vs. historic CPI averages of 2-3%), fiscal strain on marina operators, the erosion of long-term leases, and introduction of ancillary fees. These impacts threatened both affordability for residents and the financial viability of marinas, which need to invest in sea level rise adaptation and dock infrastructure.
Over the past two years, the County of Marin convened marina owners, the Floating Homes Association (FHA), and residents in a series of facilitated negotiations, dockside meetings, and surveys to address these unintended consequences. According to the author and sponsor, this collaborative process included more than a dozen in-person dock meetings, outreach to all 425 floating homes in Marin, and formal input from the FHA Legislative Action Committee. A countywide survey conducted in spring 2025 achieved a two-thirds response rate, with 93% of residents supporting the final negotiated framework.
The resulting bill, AB 754 (Connolly), reflects this consensus. AB 754 proposes to revise the Floating Home Residency Law for Marin County in the following ways:
- Replaces the current 3-5% rent increase cap with a CPI-based formula, with a 3% floor and 7.5% ceiling, halving any CPI increase above 5%;
- Allows a limited rent adjustment at the time of sale, but only when 10+ year leases are in place or offered, and with formula-based rent increase caps of the lesser of 25% above prior rent or 0.15% of sale price, with a lower 15% cap on resales within five years;
- Prohibits arbitrary or unrelated marina fees, requiring all charges to reflect actual costs;
- Provides a transition period through January 2026 to ensure fairness for transactions underway; and
Extends the sunset date for Marin County''s floating home rent framework to January 1, 2038 from its original sunset date of January 1, 2030.
According to the Author
According to the author, "AB 754 is a community-driven solution to protect Marin''s floating home residents while ensuring the long-term viability of our marinas. In 2022, the Legislature acted with AB 252 to establish rent stabilization protections for floating homes in Alameda, Contra Costa, and Marin counties after sudden rent hikes in Alameda County. Those provisions created unintended consequences in Marin, where residents have historically relied on long-term CPI-based leases and marina owners have depended on modest turnover adjustments to finance infrastructure. The result was higher annual increases for many homeowners, fewer long-term leases, and growing financial uncertainty for marina operators tasked with maintaining critical utilities and adapting to sea level rise. Over the last two years, Marin''s marina owners, the Floating Homes Association, and the County of Marin worked together in an unprecedented collaborative process to design a better framework. AB 754 preserves strong protections for residents – guaranteeing annual CPI-based rent caps, restoring long-term 10+ year leases, and extending these safeguards through 2038—while also providing marinas the financial tools to reinvest in docks, pilings, utilities, and shoreline resiliency. With support from 93% of the more than two-thirds of residents surveyed – in addition to all of Marin''s floating home marina owners, this bill represents a consensus approach that balances affordability, stability, and sustainability for one of California''s most unique housing communities."
Arguments in Support
According to the Floating Homes Association, "The agreement, now formalized in AB 754, will make a number of changes to the AB 252 framework that will be of benefit to our residents including a shift to annual rent increases based on CPI, with a floor and a ceiling, and elimination of additional fees not clearly linked to actual expenses. It will also allow marina owners to raise rents upon sale, although there are constraints on the potential increase linked both to the sales price and the current rent. Importantly, this agreement will extend the framework to 2038, providing stability and economic security for many years to come."
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Assembly Committee on Appropriations: No state costs. This bill creates a state mandate only because it expands the crime of perjury and, therefore, is not reimbursable by the state.
VOTES
ASM ENVIRONMENTAL SAFETY AND TOXIC MATERIALS: 7-0-0
YES: Connolly, Ellis, Bauer-Kahan, Castillo, Lee, McKinnor, Papan
ASSEMBLY FLOOR: 69-0-10
YES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Bonta, Bryan, Calderon, Caloza, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Fong, Gabriel, Garcia, Gipson, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Ward, Wicks, Wilson, Zbur, Rivas
ABS, ABST OR NV: Arambula, Boerner, Carrillo, Flora, Gallagher, Jeff Gonzalez, Irwin, Celeste Rodriguez, Sanchez, Wallis
SENATE FLOOR: 38-0-2
YES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Cortese, Dahle, Durazo, Gonzalez, Grayson, Grove, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Reyes, Richardson, Rubio, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener
ABS, ABST OR NV: Choi, Seyarto
ASM HOUSING AND COMMUNITY DEVELOPMENT: 7-0-5
YES: Haney, Caloza, Garcia, Kalra, Quirk-Silva, Wicks, Wilson
ABS, ABST OR NV: Patterson, Ávila Farías, Lee, Ta, Tangipa
UPDATED
VERSION: June 12, 2025
CONSULTANT: Nicole Restmeyer / H. & C.D. / (916) 319-2085 FN: 0001843
Date of Hearing: September 8, 2025
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Matt Haney, Chair
ABPCA Bill Id:AB 754 (
Author:Connolly) – As Amended Ver:June 12, 2025
SUBJECT: Floating home marinas: rent caps: County of Marin
SUMMARY: Modifies an existing state floating home rent cap and certain fee provisions for floating homes in marinas in the County of Marin, until January 1, 2038. Specifically, this bill:
- Prohibits management of a floating home marina in the County of Marin from increasing, over any 12-month period, the gross rental rate for a tenancy for a floating home berth in a floating home marina more than the percent change in the cost of living, and provides that if the rent is increased, the increase must be a minimum of 3% up to a maximum of 7.5%.
- Provides that if the annual percent change in the cost of living exceeds 5%, only one-half of the percent change in cost of living that is in excess of 5% may be used to increase the rent up to the maximum allowable increase of 7.5%.
- Applies the modified rent cap in 1) and 2) above to all rent increases occurring on or after July 1, 2025.
- Provides that, in the event management has increased the rent by more than the amount permissible under this bill between July 1, 2025 and January 1, 2026, both of the following apply:
- The applicable rent on January 1, 2026 shall be the rent as of July 1, 2025, plus the maximum permissible increase under 1) above; and
- Management shall not be liable to a homeowner for any corresponding rent overpayment.
- Requires management to provide notice of any increase in the rental rate under this bill to each homeowner in accordance with specified law.
- Allows management, in the event a qualifying in-place transfer of a floating home involves the sale of a floating home either subject to an existing lease with a 10-year or longer term or that was offered a lease with a 10-year or longer term between two years and six months prior to the time of the home sale, to establish a new initial rental rate for a prospective homeowner consistent with the following:
- Prohibits the new initial rental rate from exceeding the lesser of either of the following:
- A 25% increase over the rental rate prior to the sale; or
- 0.15% of the sale price of the home;
- If the formula in 6) a) above results in a new initial rental rate that is less than a 3% increase over the rental rate immediately prior to the time of the home sale, the new initial rental rate shall not exceed the rental rate immediately prior to the time of the home sale plus the most recent percent change in the cost of living, with a minimum increase of 3% and a maximum increase of 5%;
- Requires the final sale price of the home provided to the marina owner to be certified and substantiated in writing by the buyer to be true under penalty of perjury, as specified;
- Requires lease terms offered after an in-place transfer to be at least 10 years;
- Provides that, in the event a floating home sold pursuant to 6) a) above is sold again within five years, the new total monthly initial rental rate shall not exceed the lesser of either of the following:
- A 15% increase over the rent prior to the sale; or
- 0.15% of the sale price of the home; and
- Applies the provisions of 6) above to all in-place transfers occurring between July 1, 2025 and July 1, 2026, regardless of whether the floating home was subject to an existing lease with a 10-year or longer term or was offered a lease with a 10-year or longer term between two years and six months prior to the time of the home sale.
- Prohibits the new initial rental rate from exceeding the lesser of either of the following:
- Exempts from 1) to 6) above a tenancy for any of the following:
- A floating home berth restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as specified, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined; and
- A floating home berth subject to any ordinance, rule, regulation, or initiative measure that allows annual increases in the rental rate up to an amount less than that provided in 1) to 6) above.
- Declares any waiver of the rights under this bill as void and contrary to public policy.
- Provides that nothing in the modified rent cap provisions above affects the authority of a local government to adopt or maintain an ordinance, rule, regulation, or initiative measure that establishes a maximum amount that may be charged for rent or the rental rate for a new tenancy, including any ordinance, rule, regulation, or initiative measure adopted before the effective date of this bill. However, if a local ordinance, rule, regulation, or initiative measure allows for the rental rate for a new tenancy or a rental rate increase greater than that provided in 1) to 6) above, the modified rent cap shall apply.
- Provides that this bill is not intended to express any policy regarding the appropriate, allowable rental rate increase limitations imposed by ordinance, rule, regulation, or initiative measure regulating rent increases adopted before or after the effective date of this bill.
- Defines, for purposes of the bill, the following terms:
- “Consumer Price Index for All Urban Consumers for All Items” or “CPI-U” to mean the Consumer Price Index for All Urban Consumers for All Items for the San Francisco-Oakland-Hayward metropolitan area, or any successor metropolitan area index;
- “Percentage change in the cost of living” to mean the percentage change in the applicable CPI-U, and computed as specified; and
- “In place transfer” to mean the sale of a floating home where the floating home is transferred by a homeowner to a subsequent homeowner and remains docked at the same berth.
- Applies 1) to 11) above only to floating home marinas in the County of Marin, and sunsets and repeals these provisions on January 1, 2038.
- Applies the following fee provisions to floating home marinas in the County of Marin, and sunsets and repeals these provisions on January 1, 2038:
- Requires fees for utilities and incidental reasonable charges for services actually rendered to a homeowner to reflect actual costs;
- Requires a marina owner to demonstrate for all fees charged to a homeowner that the service was or is currently being actually rendered; and
- Prohibits a marina owner from charging a homeowner a fee for enforcement of a marina’s rules and regulations.
- Finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of floating home marinas in the County of Marin that have been operating with 10-year or longer leases, as specified.
EXISTING LAW:
- Prohibits management of a floating home marina from increasing, over any 12-month period, the gross rental rate for a tenancy for a floating home berth in a floating home marina by more than 3% plus the percentage change in the cost of living, or 5%, whichever is lower, of the lowest gross rental rate changed for a tenancy at any time during the 12 months prior to the effective date of the increase. Prohibits the gross rental rate for a homeowner who maintains a tenancy over any 12-month period from being increased in more than two increments over the 12-month period. (Civil Code (CIV) 800.40.5)
- Allows management, for a new tenancy in a floating home marina berth in which no homeowner from the prior tenancy remains in lawful possession of the floating home berth, to establish the initial rental rate, unless the applicable local agency or jurisdiction has adopted an ordinance, rule, regulation, or initiative measure that limits the allowable rental rate for a new tenancy. Specifies that the rent cap in 1) above applies to subsequent increases after the initial rental rate has been established. (CIV 800.40.5(b)(1))
- Prohibits management from imposing an increase in rent on a homeowner that purchases a floating home if the purchase qualifies as an in-place transfer, and requires the initial rent rate to be set at the rental rate of the previous tenancy. Specifies that the rent cap in 1) above applies to subsequent increases after the initial rental rate has been established. (CIV 800.40.5(b)(2))
- Requires management of a floating home marina to provide a notice of any rental rate increase to each homeowner in the marina, as specified. (CIV 800.40)
- Exempts from 1) above a tenancy for any of the following:
- A floating home berth restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for person and families of very low, low, or moderate income, as defined, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined; and
- A floating home berth subject to any ordinance, rule, regulation, or initiative measure that restricts annual increases in the rental rate to an amount less than that provided in 1) above. (CIV 800.40.1(d))
- Provides that nothing in these provisions affects the authority of a local government to adopt or maintain an ordinance, rule, regulation, or initiative measure that establishes a maximum amount that may be charged for rent or the rental rate for a new tenancy, including any ordinance, rule, regulation, or initiative measure adopted before the effective date of these provisions. Specifies that, if a local ordinance, rule, regulation, or initiative measure allows for the rental rate for a new tenancy or a rental rate increase greater than that provided by 1) above, the rent cap in 1) above shall apply. (CIV 800.40.5(h))
- Defines, for the purposes of specified provisions, the following terms:
- “Percentage change in the cost of living” to mean the percentage change in the applicable CPI-U, and computed as specified;
- “Consumer Price Index for All Urban Consumers for All Items” to mean the CPI-U for the San Francisco-Oakland-Hayward metropolitan area, or any successor metropolitan area index; and
- “In place transfer” to mean the sale of a floating home where the floating home is transferred by a homeowner to a subsequent homeowner and remains docked at the same berth. (CIV 800.40.5(g))
- Specifies that 1) to 7) above only apply to floating home marinas located in Alameda, Contra Costa, and Marin Counties, and sunsets and repeals these provisions on January 1, 2030. (CIV 800.40.5(i)-(j))
- Requires management of a floating home marina to give a floating home owner written notice of any increase in their rent at least 30 days before the date of the increase, and to include in this notice the reason for the increase, including the basis for any calculation used to determine the amount of the increase. (CIV 800.40)
- Prohibits a floating home owner from being charged a fee for other than rent, utilities, and incidental reasonable charges for services actually rendered by a floating home marina, and prohibits a floating home owner from being charged a fee for obtaining a rental agreement on a floating home berth for either a term of 12 months or a lesser period as mutually agreed upon by both the homeowner and marina management. Allows a fee to be charged for a rental agreement of more than one year if the fee is mutually agreed upon by both the homeowner and management. (CIV 800.41)
FISCAL EFFECT: Unknown.
COMMENTS:
Author’s Statement: According to the author, “AB 754 is a community-driven solution to protect Marin’s floating home residents while ensuring the long-term viability of our marinas. In 2022, the Legislature acted with AB 252 to establish rent stabilization protections for floating homes in Alameda, Contra Costa, and Marin counties after sudden rent hikes in Alameda County. Those provisions created unintended consequences in Marin, where residents have historically relied on long-term CPI-based leases and marina owners have depended on modest turnover adjustments to finance infrastructure. The result was higher annual increases for many homeowners, fewer long-term leases, and growing financial uncertainty for marina operators tasked with maintaining critical utilities and adapting to sea level rise. Over the last two years, Marin’s marina owners, the Floating Homes Association, and the County of Marin worked together in an unprecedented collaborative process to design a better framework. AB 754 preserves strong protections for residents – guaranteeing annual CPI-based rent caps, restoring long-term 10+ year leases, and extending these safeguards through 2038—while also providing marinas the financial tools to reinvest in docks, pilings, utilities, and shoreline resiliency. With support from 93% of the more than two-thirds of residents surveyed – in addition to all of Marin’s floating home marina owners, this bill represents a consensus approach that balances affordability, stability, and sustainability for one of California’s most unique housing communities.”
Background on Floating Home Marinas: Floating homes are stationary waterborne residential dwellings that do not have an independent power source and require continuous utility and sewer connections to onshore sources. Floating homes are governed by the Floating Home Residency Law (FHRL) which specifies various aspects of the relationship between floating home owners and marinas (Civil Code Section 800 et seq.). The FHRL includes terms of leases, termination of a floating home tenancy, and procedures for the sale and transfer of floating homes. Under the FHRL, a floating home marina is defined as any area with at least five floating home berths that rents out more than 10% of the berths.
There are an estimated 500 floating homes in the San Francisco Bay Area with marinas located in the cities of Sausalito, Alameda, and Richmond. The first floating homes in Sausalito appeared in the early 20th century, though the number of floating homes on the city's waterfront increased dramatically during World War II to accommodate the influx of workers who came to fill jobs in the area’s shipyards. Like mobilehome owners who own the unit but not the land underneath, owners of floating homes own the vessel but pay rent to the marina for use of the berth. Another parallel between mobilehomes and floating homes is that both tend to be cost prohibitive or impossible to move from their current location.
Even when a unit can be moved, there are a very limited number of berths available in floating home marinas. Rent increases on floating homes, again similarly to mobilehomes, can also negatively impact a homeowner's equity and the potential resale value of their home since future owners will be required to bear the cost of increased monthly rents.
Floating Home Rent Cap: In 2022, in response to rent increases at floating home marinas, AB 252 (Bonta), Chapter 633, limited allowable berth rent increases in marinas in the counties of Alameda, Contra Costa, and Marin to no more than 3% plus the change in the cost of living (CPI) up to a maximum increase of 5% per year. As with the limits on rent increases for certain renters under the Tenant Protection Act of 2019 [AB 1482 (Chiu), Chapter 59] and certain mobilehome owners under AB 978 (Quirk-Silva), Chapter 125, Statutes of 2021, the rent cap in AB 252 (Bonta) will sunset on January 1, 2030.
Under AB 252 (Bonta), marina management can issue up to two rent increases per 12 month period as long as the same tenant continues to rent the berth from the marina during that time period. The law also prohibits the management of a floating home from increasing the rent on a homeowner who purchases a floating home through an in-place transfer. An in-place transfer means the home continues to be docked at the berth and is not towed to a new location. However, if a floating home is towed to a new location and the berth becomes vacant, then the marina owner could increase rent as much as they desire unless there is a local city or county policy in place that limits increases between tenancies. This contrasts with state laws governing rent control in apartments and homes under the Costa-Hawkins Rental Housing Act (Civil Code Section 1954.50 et seq.), which preempts any local effort to regulate the amount of rent that can be charged between tenancies (“vacancy control”).
AB 252 and Impacts to Marin County: While intended to prevent sudden rent hikes, the framework in AB 252 (Bonta) did not account for Marin County’s longstanding use of multi-decade CPI-based leases (10-30 years) and its reliance on modest vacancy adjustments at the time of sale to fund critical infrastructure investments in marinas. As a result, AB 252 led to unintended consequences in Marin, including higher year-over-year rent increases (5% vs. historic CPI averages of 2-3%), fiscal strain on marina operators, the erosion of long-term leases, and introduction of ancillary fees. These impacts threatened both affordability for residents and the financial viability of marinas, which need to invest in sea level rise adaptation and dock infrastructure.
Over the past two years, the County of Marin convened marina owners, the Floating Homes Association (FHA), and residents in a series of facilitated negotiations, dockside meetings, and surveys to address these unintended consequences. According to the author and sponsor, this collaborative process included more than a dozen in-person dock meetings, outreach to all 425 floating homes in Marin, and formal input from the FHA Legislative Action Committee. A countywide survey conducted in spring 2025 achieved a two-thirds response rate, with 93% of residents supporting the final negotiated framework.
The resulting bill, AB 754 (Connolly), reflects this consensus. AB 754 proposes to revise the Floating Home Residency Law for Marin County in the following ways:
- Replaces the current 3-5% rent increase cap with a CPI-based formula, with a 3% floor and 7.5% ceiling, halving any CPI increase above 5%;
- Allows a limited rent adjustment at the time of sale, but only when 10+ year leases are in place or offered, and with formula-based rent increase caps of the lesser of 25% above prior rent or 0.15% of sale price, with a lower 15% cap on resales within five years;
- Prohibits arbitrary or unrelated marina fees, requiring all charges to reflect actual costs;
- Provides a transition period through January 2026 to ensure fairness for transactions underway; and
- Extends the sunset date for Marin County’s floating home rent framework to January 1, 2038 from its original sunset date of January 1, 2030.
Arguments in Support: According to the Floating Homes Association, “The agreement, now formalized in AB 754, will make a number of changes to the AB 252 framework that will be of benefit to our residents including a shift to annual rent increases based on CPI, with a floor and a ceiling, and elimination of additional fees not clearly linked to actual expenses. It will also allow marina owners to raise rents upon sale, although there are constraints on the potential increase linked both to the sales price and the current rent. Importantly, this agreement will extend the framework to 2038, providing stability and economic security for many years to come.”
Arguments in Opposition: None on file.
Related Legislation:
AB 252 (Bonta), Chapter 633, Statutes of 2022: Prohibits a floating home marina from increasing rent on a floating home berth by more than three percent plus inflation up to a maximum cap of five percent per year.
REGISTERED SUPPORT / OPPOSITION:
Support
Floating Homes Association (Sponsor)
Chris Tellis, Harbormaster, Yellow Ferry Harbor
Commodore Marina & Seaplane Investment
County of Marin
Kappas Marina
Waldo Point Harbor
Opposition
None on file.
Analysis Prepared by: Nicole Restmeyer / H. & C.D. / (916) 319-2085
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 754 |
THIRD READING
Bill No: AB 754
Author: Connolly (D)
Amended: 6/12/25 in Senate
Vote: 21
SENATE JUDICIARY COMMITTEE: 13-0, 7/15/25
AYES: Umberg, Niello, Allen, Arreguín, Ashby, Caballero, Durazo, Laird, Stern, Valladares, Wahab, Weber Pierson, Wiener
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 69-0, 5/8/25 (Consent) - See last page for vote
SUBJECT: Floating home marinas: rent caps: County of Marin
SOURCE: Marin County Board of Supervisors
DIGEST:
This bill limits increases, for floating home marinas in Marin county, in the gross rental rate for floating home berths within the marina to the percent change in the cost of living, not to exceed 7.5%, as specified, and permits a floating home owner to set an initial rental rate on a floating home berth upon the in-place transfer of the floating home, as specified.
ANALYSIS:
Existing law:
- Prohibits management of a floating home marina from increasing, over any 12-month period, the gross rental rate for a tenancy for a floating home berth in a floating home marina by more than three percent plus the percentage change in the cost of living, or five percent, whichever is lower, of the lowest gross rental rate changed for a tenancy at any time during the 12 months prior to the effective date of the increase. Prohibits the gross rental rate for a homeowner who maintains a tenancy over any 12-month period from being increased in more than two increments over the 12-month period. (Civil (Civ.) Code § 800.40.5.)
- Specifies that, for a new tenancy in a floating home marina berth in which no homeowner from the prior tenancy remains in lawful possession of the floating home berth, management may establish the initial rental rate, but that, if the applicable local agency or jurisdiction has adopted an ordinance, rule, regulation, or initiative measure that limits the allowable rental rate for a new tenancy, the ordinance, rule, regulation, or initiative measure shall apply. Specifies that the rent cap described in (1) applies to subsequent increases after the initial rental rate has been established. (Civ. Code § 800.40.5(b).)
- Requires management of a floating home marina to provide a notice of any rental rate increase to each homeowner in the marina, as specified. (Civ. Code § 800.40.)
- Specifies that the above provisions apply to all rent increases occurring on or after January 1, 2022, with the bill becoming operative January 1, 2023. Specifies that, if management has increased the rent by more than the amount permissible under (1) between January 1, 2022 and January 1, 2023, the rent on January 1, 2023 must be the rent as of January 1, 2022, plus the maximum permissible increase under (1), and that management shall not be liable to a homeowner for any corresponding rent overpayment. (Civ. Code § 800.40.5(e).)
- Specifies that a waiver of the rights described in the above sections is void as contrary to public policy. (Civ. Code § 800.40.5(f).)
- Specifies that the above-described provisions do not apply to a tenancy for any of the following:
- a floating home berth restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for person and families of very low, low, or moderate income, as defined, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined;
- A floating home berth subject to any ordinance, rule, regulation, or initiative measure that restricts annual increases in the rental rate to an amount less than that provided in (1). (Civ. Code § 800.40.1(d).)
- Specifies that the above-described provisions only apply to floating home marinas located in Alameda, Contra Costa, and Marin Counties. (Civ. Code § 800.40.5(i).)
- Specifies that nothing in the above-described provisions affects the authority of a local government to adopt or maintain an ordinance, rule, regulation, or initiative measure that establishes a maximum amount that may be charged for rent or the rental rate for a new tenancy, including any ordinance, rule, regulation, or initiative measure adopted before the effective date of the above-described provisions. Specifies that, if a local ordinance, rule, regulation, or initiative measure allows for the rental rate for a new tenancy or a rental rate increase greater than that provided by (1), the above-described provisions shall apply. (Civ. Code § 800.40.5(h).)
- Defines, for the purposes of the above-described provisions, the following terms:
- “percentage change in the cost of living” to mean the percentage change in the applicable Consumer Price Index for all Urban Consumers for All Items, and computed as specified;
- “Consumer Price Index for All Urban Consumers for All Items” to mean the CPI-U for the San Francisco-Oakland-Hayward metropolitan area, or any successor metropolitan area index;
- “in place transfer” to mean the sale of a floating home where the floating home is transferred by a homeowner to a subsequent homeowner and remains docked at the same berth. (Civ. Code § 800.40.5(g).)
- Repeals the above-described provisions on January 1, 2030. (Civ. Code § 800.40.5(j).)
- Requires management of a floating home marina to give a floating home owner written notice of any increase in their rent at least 30 days before the date of the increase, and to include in this notice the reason for the increase, including the basis for any calculation used to determine the amount of the increase. (Civ. Code § 800.40.)
- Prohibits a floating home owner from being charged by a floating home marina a fee for other than rent, utilities, and incidental reasonable charges for services actually rendered, and prohibits a floating home owner from being charged a fee for obtaining a rental agreement on a floating home berth for either a term of 12 months or a lesser period as mutually agreed upon by both the homeowner and marina management. Permits a fee to be charged for a rental agreement of more than one year if the fee is mutually agreed upon by both the homeowner and management. (Civ. Code § 800.41.)
This bill:
- Prohibits floating home marina management from increasing over any 12-month period the gross rental rate for a tenancy in a floating home berth by more than the percent change in the cost of living, and specifies that, if the gross rental rate is increased, the increase must be a minimum of three percent and a maximum of 7.5%.
- Specifies that, if the annual percent change in the cost of living exceeds five percent, only half of the percent change in the cost of living beyond five percent may be used to increase the rental rate beyond five percent, up to the 7.5% maximum increase.
- Specifies that, if floating home marina management has increased, between July 1, 2025 and January 1, 2026, the rent by more than the amount permissible under (1) and (2), above, the applicable rent on January 1, 2026 must be rent charged on July 1, 2025, plus the maximum permissible increase under (1) and (2).
- Specifies that, for the purposes of the limitation for rent increases between July 1, 2025 and January 1, 2026, management may not be held liable to a homeowner for any corresponding rent overpayment.
- Requires the floating home marina management to provide a notice of any rental rate increase to the floating home owner at least 30 days before the increase, pursuant to existing law.
- Permits floating home marina management, in the event that ownership of a floating home is transferred and the floating home will remain in the marina, and the home was subject to an existing 10-year or longer lease, or that was offered a lease with a 10 year or longer lease term between two years and six months before the home sale, to establish an initial rental rate for the prospective homeowner that:
- does not exceed the lesser of either a 25% increase of the previous rental rate, or fifteen-hundredths of one percent of the sale price.
- Specifies that, if the formula in (6) results in a new initial rental rate that is less than a three percent increase over the previous rental rate, the new initial rental rate may not exceed the previous rental rate plus the percent change in the cost of living, at a minimum increase of three percent and a maximum increase of five percent.
- Requires the final sale price of the floating home, for the purposes of (6) and (7), to be certified and substantiated in writing by the buyer under penalty of perjury.
- Requires lease terms offered after an in-place transfer to be at least 10 years.
- Specifies that, in the event that a floating home sold pursuant to (6) is sold again within five years, the new total monthly initial rental rate may not exceed the lesser of either a 15% increase over the prior rent, or fifteen-hundredths of one percent of the sale price of the home.
- Applies the provisions in (6) through (10) to all in-place transfers occurring between July 1, 2025 and July 1, 2026, regardless of whether the floating home was subject to an existing lease with a 10-year or longer lease term, or was offered a lease with a 10-year term or longer between two years and six months prior to the sale.
- Exempts its provisions from:
- A floating home berth restricted by deed, regulatory restriction, or other recorded document as affordable housing for low-income individuals;
- A floating home berth subject to an ordinance, rule, regulation, or initiative measure that allows annual increases in the rental rate up to an amount less that that provided.
- Specifies that a waiver of the rights described above is void as contrary to public policy.
- Specifies that nothing in these provisions affects the authority of local government to adopt or maintain an ordinance, rule, regulation, or initiative measure that establishes a maximum amount that may be charged for rent or rental rate for a new tenancy, as specified. However, specifies that, if a local ordinance, rule, regulation, or initiative measure allows for the rental rate for a new tenancy or rental rate increase greater than permitted under (6), these provisions apply.
- Specifies that nothing in the section is intended to express any policy regarding the appropriate, allowable rental rate increase limitations imposed by ordinance, rule, regulation, or initiative measure regulating rent increases adopted before or after the effective date.
- Specifies that the above-described provisions only apply to floating home marinas in Marin County, and that these provisions are repealed on January 1, 2038.
- Specifies, for floating home marinas in Marin county:
- Fees for utilities and incidental reasonable charges for services actually rendered to a floating home owner must reflect actual costs, and that the marina owner must demonstrate for all fees that the service was, or is, currently being rendered;
- That a marina owner may not charge a homeowner a fee for enforcement of a marina’s rules and regulations.
- That these provisions are repealed on January 1, 2038.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
SUPPORT: (Verified 8/19/25)
Marin County Board of Supervisors (source)
Chris Tellis, Harbormaster, Yellow Ferry Harbor
Commodore Marina & Seaplane Investment
Floating Homes Association
Kappas Marina
Waldo Point Harbor
OPPOSITION: (Verified 8/19/25)
None received
ARGUMENTS IN SUPPORT:
According to the Marin County Board of Supervisors, who are the sponsors of AB 754:
AB 252 (Bonta, 2022) was enacted in response to significant berth rental rate hikes in Alameda County, but its one-size-fits-all provisions created unique challenges in Marin, where the vast majority of the Bay Area’s floating homes are located. Marin County has 425 floating homes, compared with 42 in Alameda County and 11 in Contra Costa County.
In Marin, long-standing CPI-only lease structures and periodic rent realignments (pre-AB 252) tied to home sales had historically been in place to balance long-time homeowner rent stability with the infrastructure needs faced by marina operators amidst sea level rise and flooding events. AB 252 unintentionally changed the landscape in Marin. The 2022 law’s uniform rent cap of CPI plus 3%—up to 5%—often exceeded the lower CPI-based increases many Marin residents had experienced under existing long-term leases. At the same time, the prohibition on berth rent adjustments when homes changed hands (vacancy control) undermined marina owners’ ability to fund essential capital improvements such as raising parking lots, and dock and utility upgrades. In response to AB 252, some marinas shifted from 10- or 20-year leases to 1-year terms and introduced new fees to recoup lost revenue.
In response to changes after AB 252, the FHA formed a Legislative Action Committee (LAC) composed of homeowners from all of Marin’s floating home marinas. The LAC met regularly—often weekly—to explore Marin-tailored refinements to the existing state law.
At the same time, Marin’s marina owners—all of whom were not aware of AB 252 before its passage—also reached out to County and state officials to share their perspectives. They expressed their concern being left out of the AB 252 process and emphasized the challenges the new restrictions posed to long-term planning and needed capital improvements. County officials have been engaging deeply with both groups over this time to understand AB 252’s impacts in Marin and help facilitate a constructive path forward.
Recognizing their shared interest in the long-term viability of Marin’s floating home communities, the LAC and Marin’s marina owners came together in late 2024 for a series of direct, good-faith negotiations. Those efforts produced the balanced compromise now reflected in AB 754, which changes state law only for floating homes in the County of Marin.
The bill:
- Restores Balance in Annual Rent Caps: Replaces AB 252’s fixed 5% cap with a CPI-based formula (3% floor, 7.5% ceiling). Any CPI increase above 5% is halved to reduce volatility.
- Allows Limited Vacancy Decontrol: Permits marina owners to adjust rent at the time of sale if the outgoing tenant had—or was offered—a 10+ year lease, and the new tenant is offered one as well. Increases on an “in-place transfer” are capped at the lower of 25% above the prior rent or 0.15% of the home’s sale price. A lower 15% cap applies to homes resold within five years.
- Defines Allowed Fees: Requires that fees for utilities and services reflect actual costs and prohibits administrative enforcement charges.
- Extends Sunset Date: Replaces the 2030 sunset in AB 252 with a new expiration of January 1, 2038, providing significantly longer-term stability.
- Ensures a Smooth Transition: Applies to rent increases and lease turnovers occurring on or after July 1, 2025. Homes sold before January 1, 2026, may remain under AB 252 terms, but marina owners are authorized to offer revised 10+ year leases starting in 2026 under AB 754’s new rental rate limits.
Following the agreement reached between the LAC and marina owners, the LAC led a comprehensive outreach effort. […] The results were overwhelmingly supportive: more than 400 floating home residents participated (a 67% response rate) and 93% voted in favor of the proposal. On the marina owner side, all of Marin’s floating home marinas supported the provisions in the final agreement.
ARGUMENTS IN OPPOSITION:
ASSEMBLY FLOOR: 69-0, 5/8/25
AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Bonta, Bryan, Calderon, Caloza, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Fong, Gabriel, Garcia, Gipson, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Ward, Wicks, Wilson, Zbur, Rivas
NO VOTE RECORDED: Arambula, Boerner, Carrillo, Flora, Gallagher, Jeff Gonzalez, Irwin, Celeste Rodriguez, Sanchez, Wallis
Prepared by: Ian Dougherty / JUD. / (916) 651-4113
8/20/25 23:22:44
**** END ****
Senator Thomas Umberg, Chair
2025-2026 Regular Session
Bill No: AB 754 (Author:Connolly)
Version: June 12, 2025
Hearing Date: July 15, 2025
Fiscal: Yes
Urgency: No
Consultant: ID
SUBJECT
Floating home marinas: rent caps: County of Marin
DIGEST
This bill limits increases, for floating home marinas in Marin county, in the gross rental rate for floating home berths within the marina to the percent change in the cost of living, not to exceed 7.5 percent, as specified, and permits a floating home owner to set an initial rental rate on a floating home berth upon the in-place transfer of the floating home, as specified.
EXECUTIVE SUMMARY
A floating home is a floating, stationary, and waterborne residential dwelling that has no mode of power of its own, depends on a continuous utility linkage to an onshore source, and that has a permanent continuous hookup to an onshore sewage system. Floating homes are a unique form of housing, as they must reside in a berth in a marina, and are reliant on the marina for utilities and sewage disposal. Floating home owners typically own the floating home, but pay rent to the marina to have their home docked in its floating home berth and be connected to utilities and sewage. Because floating homes are not easily moved, and vacant berths are uncommon, floating home owners often have a difficult time relocating when they have an issue with the marina or the rent being charged for their berth. In 2022, the Legislature passed AB 252 (Mia Bonta, Ch. 633, Stats. 2022) to enact rent caps and limits on increasing rent when a floating home owner sells their home and the home will remain in the marina. The provisions of AB 252 applied only to floating home marinas in Alameda, Contra Costa, and Marin counties.
AB 754 aims to adjust the rent cap limitation and the limitation on resetting rents upon a transfer in ownership of the floating home (vacancy control) only for floating home marinas in Marin county. AB 754 is sponsored by the Marin County Board of Supervisors, and is supported by multiple Marin floating home marinas, the Floating Homes Association, the harbormaster of Yellow Ferry Harbor, and Commodore Marina and Seaplane investment. The Committee has received no timely letters of opposition.
PROPOSED CHANGES TO THE LAW
Existing law:
- Prohibits management of a floating home marina from increasing, over any 12-month period, the gross rental rate for a tenancy for a floating home berth in a floating home marina by more than three percent plus the percentage change in the cost of living, or five percent, whichever is lower, of the lowest gross rental rate changed for a tenancy at any time during the 12 months prior to the effective date of the increase. Prohibits the gross rental rate for a homeowner who maintains a tenancy over any 12-month period from being increased in more than two increments over the 12-month period. (Civ. Code § 800.40.5.)
- Specifies that, for a new tenancy in a floating home marina berth in which no homeowner from the prior tenancy remains in lawful possession of the floating home berth, management may establish the initial rental rate, but that, if the applicable local agency or jurisdiction has adopted an ordinance, rule, regulation, or initiative measure that limits the allowable rental rate for a new tenancy, the ordinance, rule, regulation, or initiative measure shall apply. Specifies that the rent cap described in (1) applies to subsequent increases after the initial rental rate has been established. (Civ. Code § 800.40.5(b).)
- Requires management of a floating home marina to provide a notice of any rental rate increase to each homeowner in the marina, as specified. (Civ. Code § 800.40.)
- Specifies that the above provisions apply to all rent increases occurring on or after January 1, 2022, with the bill becoming operative January 1, 2023. Specifies that, if management has increased the rent by more than the amount permissible under (1) between January 1, 2022 and January 1, 2023, the rent on January 1, 2023 must be the rent as of January 1, 2022, plus the maximum permissible increase under (1), and that management shall not be liable to a homeowner for any corresponding rent overpayment. (Civ. Code § 800.40.5(e).)
- Specifies that a waiver of the rights described in the above sections is void as contrary to public policy. (Civ. Code § 800.40.5(f).)
- Specifies that the above-described provisions do not apply to a tenancy for any of the following:
- a floating home berth restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for person and families of very low, low, or moderate income, as defined, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined;
- A floating home berth subject to any ordinance, rule, regulation, or initiative measure that restricts annual increases in the rental rate to an amount less than that provided in (1). (Civ. Code § 800.40.1(d).)
- Specifies that the above-described provisions only apply to floating home marinas located in Alameda, Contra Costa, and Marin Counties. (Civ. Code § 800.40.5(i).)
- Specifies that nothing in the above-described provisions affects the authority of a local government to adopt or maintain an ordinance, rule, regulation, or initiative measure that establishes a maximum amount that may be charged for rent or the rental rate for a new tenancy, including any ordinance, rule, regulation, or initiative measure adopted before the effective date of the above-described provisions. Specifies that, if a local ordinance, rule, regulation, or initiative measure allows for the rental rate for a new tenancy or a rental rate increase greater than that provided by (1), the above-described provisions shall apply. (Civ. Code § 800.40.5(h).)
- Defines, for the purposes of the above-described provisions, the following terms:
- “percentage change in the cost of living” to mean the percentage change in the applicable Consumer Price Index for all Urban Consumers for All Items, and computed as specified;
- “Consumer Price Index for All Urban Consumers for All Items” to mean the CPI-U for the San Francisco-Oakland-Hayward metropolitan area, or any successor metropolitan area index;
- “in place transfer” to mean the sale of a floating home where the floating home is transferred by a homeowner to a subsequent homeowner and remains docked at the same berth. (Civ. Code § 800.40.5(g).)
- Repeals the above-described provisions on January 1, 2030. (Civ. Code § 800.40.5(j).)
- Requires management of a floating home marina to give a floating home owner written notice of any increase in their rent at least 30 days before the date of the increase, and to include in this notice the reason for the increase, including the basis for any calculation used to determine the amount of the increase. (Civ. Code § 800.40.)
- Prohibits a floating home owner from being charged by a floating home marina a fee for other than rent, utilities, and incidental reasonable charges for services actually rendered, and prohibits a floating home owner from being charged a fee for obtaining a rental agreement on a floating home berth for either a term of 12 months or a lesser period as mutually agreed upon by both the homeowner and marina management. Permits a fee to be charged for a rental agreement of more than one year if the fee is mutually agreed upon by both the homeowner and management. (Civ. Code § 800.41.)
This bill:
- Prohibits floating home marina management from increasing over any 12-month period the gross rental rate for a tenancy in a floating home berth by more than the percent change in the cost of living, and specifies that, if the gross rental rate is increased, the increase must be a minimum of three percent and a maximum of 7.5 percent.
- Specifies that, if the annual percent change in the cost of living exceeds five percent, only half of the percent change in the cost of living beyond five percent may be used to increase the rental rate beyond five percent, up to the 7.5 percent maximum increase.
- Specifies that, if floating home marina management has increased, between July 1, 2025 and January 1, 2026, the rent by more than the amount permissible under (1) and (2), above, the applicable rent on January 1, 2026 must be rent charged on July 1, 2025, plus the maximum permissible increase under (1) and (2).
- Specifies that, for the purposes of the limitation for rent increases between July 1, 2025 and January 1, 2026, management may not be held liable to a homeowner for any corresponding rent overpayment.
- Requires the floating home marina management to provide a notice of any rental rate increase to the floating home owner at least 30 days before the increase, pursuant to existing law.
- Permits floating home marina management, in the event that ownership of a floating home is transferred and the floating home will remain in the marina, and the home was subject to an existing 10-year or longer lease, or that was offered a lease with a 10 year or longer lease term between two years and six months before the home sale, to establish an initial rental rate for the prospective homeowner that:
- does not exceed the lesser of either a 25 percent increase of the previous rental rate, or fifteen-hundredths of one percent of the sale price.
- Specifies that, if the formula in (6) results in a new initial rental rate that is less than a three percent increase over the previous rental rate, the new initial rental rate may not exceed the previous rental rate plus the percent change in the cost of living, at a minimum increase of three percent and a maximum increase of five percent.
- Requires the final sale price of the floating home, for the purposes of (6) and (7), to be certified and substantiated in writing by the buyer under penalty of perjury.
- Requires lease terms offered after an in-place transfer to be at least 10 years.
- Specifies that, in the event that a floating home sold pursuant to (6) is sold again within five years, the new total monthly initial rental rate may not exceed the lesser of either a 15 percent increase over the prior rent, or fifteen-hundredths of one percent of the sale price of the home.
- Applies the provisions in (6) through (10) to all in-place transfers occurring between July 1, 2025 and July 1, 2026, regardless of whether the floating home was subject to an existing lease with a 10-year or longer lease term, or was offered a lease with a 10-year term or longer between two years and six months prior to the sale.
- Exempts its provisions from:
- A floating home berth restricted by deed, regulatory restriction, or other recorded document as affordable housing for low-income individuals;
- A floating home berth subject to an ordinance, rule, regulation, or initiative measure that allows annual increases in the rental rate up to an amount less that that provided.
- Specifies that a waiver of the rights described above is void as contrary to public policy.
- Specifies that nothing in these provisions affects the authority of local government to adopt or maintain an ordinance, rule, regulation, or initiative measure that establishes a maximum amount that may be charged for rent or rental rate for a new tenancy, as specified. However, specifies that, if a local ordinance, rule, regulation, or initiative measure allows for the rental rate for a new tenancy or rental rate increase greater than permitted under (6), these provisions apply.
- Specifies that nothing in the section is intended to express any policy regarding the appropriate, allowable rental rate increase limitations imposed by ordinance, rule, regulation, or initiative measure regulating rent increases adopted before or after the effective date.
- Specifies that the above-described provisions only apply to floating home marinas in Marin County, and that these provisions are repealed on January 1, 2038.
- Specifies, for floating home marinas in Marin county:
- Fees for utilities and incidental reasonable charges for services actually rendered to a floating home owner must reflect actual costs, and that the marina owner must demonstrate for all fees that the service was, or is, currently being rendered;
- That a marina owner may not charge a homeowner a fee for enforcement of a marina’s rules and regulations.
- That these provisions are repealed on January 1, 2038.
COMMENTS
- Author’s statement
According to the author:
AB 754 is the result of over two years of collaborative negotiations with both floating home residents and marina owners in Marin County. The thoughtful changes reflected in this bill are supported by both residents and marina owners and will resolve issues related to rental rates and home sales. Most importantly, AB 754 will allow floating home marinas to effectively finance infrastructure improvements to respond to climate change conditions like sea level rise and flooding.
- Floating home marinas
A floating home is a floating, stationary, and waterborne residential dwelling that has no mode of power of its own, depends on a continuous utility linkage to an onshore source, and that has a permanent continuous hookup to an onshore sewage system. (Health & Saf. Code § 18075.55.) Floating homes are typically not easy to move, and need to float in a floating home berth within a marina in order to have hook ups for utilities and sewage. Nevertheless, they have long been a colorful presence in the Bay Area. There are an estimated 425 floating homes in Marin County, on the northern edge of the Bay Area, and a smaller number of floating homes in Alameda and Contra Costa Counties, on the eastern edge of the Bay Area, and in other parts across the Bay. Many of the Bay Area’s floating home marinas grew after the end of World War II due to their proximity to military shipyards, and slowly became a community for artists, musicians, and many others in the decades since.[1]
Floating homes are a unique form of housing, as they must reside in a berth in a marina, and are reliant on the marina for utilities and sewage disposal. Like mobilehomes within a mobilehome park, floating home owners typically own the floating home, but pay rent to the marina to have their home docked in its floating home berth and be connected to utilities and sewage. Because floating homes are not easily moved, and vacant berths are uncommon, floating home owners often have a difficult time relocating when they have an issue with the marina or the rent being charged for their berth. This can place floating home owners in a vulnerable position with regard to the floating home marina, creating a power imbalance between the two parties. If, for example, the marina raises the rent more than the floating home owner can afford, the owner has little recourse, outside of selling their home altogether.
Recognizing this, floating home marinas are regulated by the state through the Floating Home Residency Law (FHRL), much in the same way that mobilehome parks are regulated. (Civ. Code §§ 800 et seq.) The FHRL regulates the relationship between floating home owners and marinas, including regarding the requirements and content of lease agreements for floating home berths, the rules of the marina, the permissible fees and rent that a marina may charge, the termination of a floating home tenancy in the marina, and the sale of floating homes in a marina or of the marina itself. The marina may not require a floating home that is sold during the owner’s rental agreement to be removed from the marina, but because any new floating home owner is also a tenant within the marina, the marina may require that they approve any new purchaser of a floating home that will remain within the marina. (Civ. Code §§ 800.84; 800.85.) A floating home marina also may only terminate a floating home owner’s tenancy in the marina for: a failure of the owner or resident to comply with a local ordinance or state law relating to floating homes after notice of noncompliance; conduct by the owner or resident that constitutes an annoyance to other floating home owners or residents; failure of the owner or resident to comply with a reasonable rule or regulation of the marina; non-payment of rent, utility charges, or reasonable incidental service charges, after being given notice and a five-day period to pay; condemnation of the floating home marina; or a change of use of the marina. (Civ. Code § 800.71.)
- AB 252 and limitations on rent increases for floating home berths
In 2022, the Legislature passed AB 252 (Mia Bonta, Ch. 633, Stats. 2022) to regulate permissible rent increases by floating home marinas. AB 252 aimed to cap excessive rent increases in floating home marinas, and came about after floating home owners saw their rents increase considerably in some marinas. In one example, a marina in Alameda that had recently been sold to new owners increased one floating home owner’s rent from $625 to $1,025 a month.[2] AB 252 capped rent increases in floating home marinas in Alameda, Contra Costa, and Marin counties at the lesser of three percent plus the percent increase in the cost of living, or five percent. (Civ. Code § 800.40.5.) It included some retroactive effect to help cover those floating home owners whose rent was raised during the period between the passage of the bill and when it went into effect.
AB 252 also partially instituted what is called “vacancy control,” which specified that the marina can only charge a new owner of a floating home that is remaining within the marina what the marina was charging the previous owner, plus the cost of living-tied caps specified in the bill. (Civ. Code § 800.40.5(b)(2).) If the floating home berth became completely vacant, as in, the floating home was moved out of the berth, AB 252 allowed the marina to set the rent for any new floating home owner who comes to occupy the berth at any amount they wished. However, since floating homes are difficult to move and few vacant berths exist, this provision is likely hardly used. The inclusion of these vacancy control provisions was seen as essential to proponents of AB 252 because the sale price a floating home owner may be able to obtain for their floating home is directly tied to how much rent a potential buyer would have to pay the marina.
- AB 754 adjusts the AB 252 limitations for Marin County
According to the author, there have been numerous adverse consequences as a result of AB 252 for floating home marinas and floating home owners in Marin. These consequences are a result, according to the author, of the unique nature of floating home marina arrangements in Marin. Marin marinas operate on a different model than those in other areas of the Bay Area, as most of Marin’s floating homes are on long-term leases of 10 years or more that already limited rent increases to the percentage change in the cost of living. This arrangement already provided many floating home owners in Marin with stability and certainty, while allowing the Marin marinas to increase base rents when an owner sold their floating home.
According to the author, AB 252 thus locked Marin marina owners into rents set decades ago, since it enacted vacancy control and limited marinas’ ability to reset rents when a floating home is sold. These increases, according to the author, helped Marin marinas receive some income they lost by having low rent increases and long-term leases, allowing for the financing of necessary capital improvements. AB 252 resulted in many Marin marinas switching their leases to shorter-term leases, and charging new ancillary fees to recoup the income the marinas would have received without vacancy control. It also, according to the author, resulted in higher rent increases for Marin floating home owners, since the permissible rent increases under AB 252 were higher than the limits on rent increases typically found in Marin floating home marina leases.
AB 754 attempts to provide a solution for Marin floating home marinas by changing the limits placed by AB 252. AB 754 prohibits marina management from increasing the gross rental rate over any 12-month period by more than the percentage change in the cost of living. If the rent is to be increased pursuant to the change in the cost of living, it may not be by less than three percent or more than 7.5 percent. AB 754 specifies that, if the annual percent change in the cost of living exceeds five percent, only half of any percent increase beyond five percent may be charged, up to the 7.5 percent maximum. AB 754 includes limited retroactive provisions that work similar to those in AB 252. They specify that, if the marina increases rent by more than what would be allowed under AB 754 between July 1, 2025 and January 1, 2026, the rent applicable on January 1, 2026 will reset to what the rent was on July 1, 2025, plus any permissible change in the cost of living. To make this retroactivity workable, AB 754 shields marina management from liability for any overpayment during that period.
AB 754 also changes the vacancy control provisions of AB 252. It specifies that, when a floating home that will remain in the marina is sold after January 1, 2026, and the floating home is subject to a 10-year or longer lease or was offered such a lease anytime between two years and six months before the sale, the new rental rate may only be increased by a specified formula. This formula allows for increases not to exceed the lesser of a 25 percent increase of the previous rental, or 0.15 percent of the sale price of the floating home. If this formula results in a new initial rental rate that is less than a three percent increase over the previous rental rate, AB 754 permits the rent increase to be the previous rental rate plus the percentage change in the cost of living of a minimum of three percent and a maximum of five percent. These limits would apply to any in-place sale that occurs between July 1, 2025 and July 1, 2026. AB 754 exempts from its requirements floating home berths that are subject to certain affordability restrictions.
Lastly, AB 754 places some limits on other fees that a floating home marina in Marin may charge. These limits require fees for utilities and incidental reasonable charges to reflect the actual costs of services actually rendered. It also prohibits a floating home marina owner from charging a floating home owner a fee for enforcement of a marina’s rules and regulations.
Through these changes, AB 754 imposes potentially more restrictive rent increase limits as were imposed by AB 252, but weakens the vacancy control provisions. It also requires that new leases for an in-place transfer be for at least 10 years. These changes provide a give-and-take on the reforms enacted by AB 252 They help keep much of the low rent increases that Marin floating home owners enjoyed before AB 252 went into effect, along with the historical 10-year or longer leases, but also provide a marina more flexibility in increasing the base rent when a floating home owner sells their home. Importantly, AB 754 only applies to Marin county; the regime enacted under AB 252 will remain untouched for floating home marinas in Alameda and Contra Costa counties.
- Arguments in support
According to the Marin County Board of Supervisors, who are the sponsors of AB 754:
AB 252 (Bonta, 2022) was enacted in response to significant berth rental rate hikes in Alameda County, but its one-size-fits-all provisions created unique challenges in Marin, where the vast majority of the Bay Area’s floating homes are located. Marin County has 425 floating homes, compared with 42 in Alameda County and 11 in Contra Costa County.
In Marin, long-standing CPI-only lease structures and periodic rent realignments (pre-AB 252) tied to home sales had historically been in place to balance long-time homeowner rent stability with the infrastructure needs faced by marina operators amidst sea level rise and flooding events. AB 252 unintentionally changed the landscape in Marin. The 2022 law’s uniform rent cap of CPI plus 3%—up to 5%—often exceeded the lower CPI-based increases many Marin residents had experienced under existing long-term leases. At the same time, the prohibition on berth rent adjustments when homes changed hands (vacancy control) undermined marina owners’ ability to fund essential capital improvements such as raising parking lots, and dock and utility upgrades. In response to AB 252, some marinas shifted from 10- or 20-year leases to 1-year terms and introduced new fees to recoup lost revenue.
In response to changes after AB 252, the FHA formed a Legislative Action Committee (LAC) composed of homeowners from all of Marin’s floating home marinas. The LAC met regularly—often weekly—to explore Marin-tailored refinements to the existing state law.
At the same time, Marin’s marina owners—all of whom were not aware of AB 252 before its passage—also reached out to County and state officials to share their perspectives. They expressed their concern being left out of the AB 252 process and emphasized the challenges the new restrictions posed to long-term planning and needed capital improvements. County officials have been engaging deeply with both groups over this time to understand AB 252’s impacts in Marin and help facilitate a constructive path forward.
Recognizing their shared interest in the long-term viability of Marin’s floating home communities, the LAC and Marin’s marina owners came together in late 2024 for a series of direct, good-faith negotiations. Those efforts produced the balanced compromise now reflected in AB 754, which changes state law only for floating homes in the County of Marin.
The bill:
- Restores Balance in Annual Rent Caps: Replaces AB 252’s fixed 5% cap with a CPI-based formula (3% floor, 7.5% ceiling). Any CPI increase above 5% is halved to reduce volatility.
- Allows Limited Vacancy Decontrol: Permits marina owners to adjust rent at the time of sale if the outgoing tenant had—or was offered—a 10+ year lease, and the new tenant is offered one as well. Increases on an “in-place transfer” are capped at the lower of 25% above the prior rent or 0.15% of the home’s sale price. A lower 15% cap applies to homes resold within five years.
- Defines Allowed Fees: Requires that fees for utilities and services reflect actual costs and prohibits administrative enforcement charges.
- Extends Sunset Date: Replaces the 2030 sunset in AB 252 with a new expiration of January 1, 2038, providing significantly longer-term stability.
- Ensures a Smooth Transition: Applies to rent increases and lease turnovers occurring on or after July 1, 2025. Homes sold before January 1, 2026, may remain under AB 252 terms, but marina owners are authorized to offer revised 10+ year leases starting in 2026 under AB 754’s new rental rate limits.
Following the agreement reached between the LAC and marina owners, the LAC led a comprehensive outreach effort. […] The results were overwhelmingly supportive: more than 400 floating home residents participated (a 67% response rate) and 93% voted in favor of the proposal. On the marina owner side, all of Marin’s floating home marinas supported the provisions in the final agreement.
SUPPORT
Chris Tellis, Harbormaster, Yellow Ferry Harbor
Commodore Marina & Seaplane Investment
County of Marin
Floating Homes Association
Kappas Marina
Waldo Point Harbor
OPPOSITION
None received
RELATED LEGISLATION
Pending Legislation: None known.
Prior Legislation:
AB 252 (Mia Bonta, Ch. 633, Stats. 2022) prohibited a floating home marina from increasing rent on a floating home berth by more than three percent plus the change in the cost of living, or five percent, whichever is lower, in any 12-month period. AB 252 also placed “vacancy control” on applicable floating home berths, limiting the amount that the marina may increase rent when the floating home owner sells their home. AB 252 only applied to floating home marinas in Alameda, Contra Costa, and Marin counties.
AB 1482 (Chiu, Ch. 597, Stats. 2019) placed an upper limit on annual rent increases in residential real property to five percent plus inflation, up to a hard cap of 10 percent. To prevent landlords from engaging in rent-gouging by evicting tenants, the bill also required that a landlord have and state a just cause, as specified, in order to evict tenants who have occupied the premises for more than 12 months. Both the rent cap and the just cause provisions are subject to exemptions including, among others: housing built in the past 15 years and single family residences unless owned by a real estate trust or a corporation. AB 1482 sunsets after ten years and does not preempt any local rent control ordinances.
AB 3139 (Filante, Ch. 1505, Stats. 1990) established the Floating Home Residency Law.
PRIOR VOTES:
This bill was amended on June 12, 2025 to completely change the bill’s provisions, and therefore any prior votes are irrelevant.
**************
Jennifer Massoni Pardini, “Designer docks and rock-solid community among the floating homes of Sausalito,” Nob Hil Gazette (Jul. 24, 2024) https://www.nobhillgazette.com/style_and_design/interior_design/designer-docks-among-the-floating-homes-of-sausalito/article_3bdf5504-42d5-11ef-beee-17c2fbba2b0b.html. ↑
Rachel Swan, “Bay Area ‘floating home’ dwellers got rent control passed. Their landlord says many don’t need it,” San Francisco Chronicle (Dec. 9, 2022) https://www.sfchronicle.com/bayarea/article/floating-homes-rent-control-17638590.php. ↑
Date of Hearing: April 29, 2025
ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
Damon Connolly, Chair
ABPCA Bill Id:AB 754 (
Author:Connolly) – As Amended Ver:April 21, 2025
SUBJECT: Water quality: pollution prevention plans
SUMMARY: Repeals an obsolete provision of law relating to pollution prevention plans (Plans) submitted by an entity when required by the State Water Resources Control Board (State Water Board), a Regional Water Quality Control Board (Regional Water Board), or a publicly owned treatment works (POTW). Makes other conforming, non-substantive changes. Specifically, this bill:
EXISTING LAW:
- Establishes the federal Clean Water Act (CWA) to regulate discharges of pollutants into the waters of the United States and to regulate quality standards for surface waters. (33 United States Code (USC) §1251 et seq.)
- Establishes the National Pollutant Discharge Elimination System (NPDES) permit program which requires the State Water Board and the nine Regional Water Boards to prescribe waste discharge requirements that, among other things, regulate the discharge of pollutants into stormwater, including municipal stormwater systems. (33 USC § 1342)
- Establishes the Porter-Cologne Water Quality Control Act (Water Quality Act), which prohibits the discharge of pollutants to surface waters unless the discharger obtains a permit from the State Water Board. (Water Code (WC) § 13000 et seq.)
- Requires the State Water Board, a Regional Water Board, or a POTW, to complete and implement a Plan if certain conditions apply. (WC § 13263.6 as added by Chapter 92, Statutes of 1999)
- Requires the State Water Board, a Regional Water Board, or a POTW, to complete and implement a Plan if certain conditions apply. (WC § 13263.6 as added by Chapter 807, Statutes of 2000)
FISCAL EFFECT: Unknown.
COMMENTS:
Need for the bill: According to the author, "This is a clean-up bill to repeal an obsolete provision of law relating to pollution prevention plans."
Federal Clean Water Act (CWA): The Federal Water Pollution Control Act of 1948 was the first major United States law to address water pollution. The law was amended in 1972, and became commonly known as the Clean Water Act (CWA). The federal CWA establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters. Under the CWA, the United States Environmental Protection Agency has implemented pollution control programs, including setting wastewater standards for industrial facilities, as well as setting water quality standards for all contaminants in surface waters. The CWA made it unlawful to discharge any pollutant from a point source into navigable waters without a permit. Industrial, municipal, and other facilities must obtain a permit under NPDES in order to discharge into surface water.
State regulation of water pollution: The State Water Board is responsible for administering the federal CWA and California’s Water Quality Act, enacted in 1969, which set up the statewide structure for water quality control. The Water Quality Act designates the State Water Board as the water pollution control agency for all purposes stated in the CWA, and it authorizes the State Water Board to exercise any powers that the federal CWA delegates to the State. The State Water Board and Regional Water Boards are charged with preventing and reducing water pollution in rivers, streams, lakes, beaches, bays, and groundwater.
National Pollution Discharge Elimination System (NPDES): As authorized by the CWA, the NPDES Permit Program controls water pollution by regulating point sources that discharge pollutants into waters of the United States. Point sources are discrete conveyances such as pipes or man-made ditches. Examples of pollutants include, but are not limited to, rock, sand, dirt, and agricultural, industrial, and municipal waste discharged into waters of the United States. The NPDES Program is a federal program which has been delegated to the State of California for implementation through the State Water Board and Regional Water Boards.
This bill: AB 754 repeals an obsolete provision of law relating to Plans that are required to be submitted by an entity, when that entity is subject to a requirement to submit a Plan under the State Water Board, a Regional Water Board, or a POTW. The code section the bill is repealing is actually in the codes twice; therefore, this bill resolves an unnecessary duplication in current law. Specifically, this code section, Water Code section 13236.3 was added by Chapter 92, Statues of 1999 and was added by Chapter 807, Statutes of 2000. This bill repeals the section that was added by Chapter 92, Statutes of 1999.
Arguments in support: None on file.
Arguments in opposition: None on file.
Related legislation:
AB 565 (Lee, 2023). Would have repealed an obsolete provision of law relating to pollution prevention plans (Plans) that are required to be submitted by an entity, when that entity is required to submit a Plan by the State Water Board, a Regional Water Board or a POTW; also would have made conforming, non-substantive changes. This bill was held in the Senate Environmental Quality Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file.
Opposition
None on file.
Analysis Prepared by: Josh Tooker / E.S. & T.M. / (916) 319-3965
Discussed in Hearing
2MIN
Assembly Floor
6MIN
Assembly Standing Committee on Housing and Community Development
2MIN
Senate Floor
7MIN
Senate Standing Committee on Judiciary
Bill Author
Bill Co-Author(s):