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Governor Vetoes Torrico Bill -- Refuses to Protect Tenants' Ability to Recover Their Security Deposits after Foreclosure

September 26th, 2008

The Governor has vetoed AB 2586.

Assemblymember Alberto Torrico's bill, AB 2586, which would have aided tenants during foreclosures, passed the state Senate on August 28, 2008.  The bill was sponsored by the Western Center on Law and Poverty. 

Originally, AB 2586 would have required 60 days notice for tenants who must move in foreclosure situations. That portion of the bill was removed by amendment, as it was achieved by SB 1137 which has now been signed into law.

AB 2586 has other provisions of importance to tenants in foreclosure situations.  The bill clarifies that post-foreclosure owners are treated as landlords for purposes of numerous tenant protection provisions of California law.  For example, the bill  clarifies that post-foreclosure owners are responsible for returning security deposits to tenants in the event of foreclosure, an issue that has been the subject of much dispute. 

For the text and history of the bill, visit http://www.leginfo.ca.gov/bilinfo.html and enter bill number 2586.

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