CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1345Introduced by Assembly Member HartFebruary 16, 2023 An act to add Section 1670.12 to the Civil Code, and to add Section 27280.6 to the Government Code, relating to contracts. LEGISLATIVE COUNSEL'S DIGESTAB 1345, as introduced, Hart. Contracts: Residential Exclusive Listing Agreements Act: prohibition.Existing law imposes limitations on various contracts, including by prohibiting a contract or proposed contract for the provision of a consumer service by a licensee regulated by a licensing board from including a provision limiting the consumers ability to file a complaint with that board or to participate in the boards investigation into the licensee.Existing law, the Consumers Legal Remedies Act, makes unlawful specified unfair methods of competition and unfair or deceptive acts or practices undertaken by any person in a transaction intended to result or that results in the sale or lease of goods or services to any consumer, including the passing off of goods or services as those of another. The act authorizes any consumer who suffers any damage as a result of the use or employment by any person of a method, act, or practice declared as unlawful under the act to bring an action against that person to recover or obtain certain remedies.This bill would enact the Residential Exclusive Listing Agreements Act. The act would make it unlawful for an exclusive listing agreement, as defined, to last longer than 12 months from the date the agreement was made and would make it unlawful to enforce, or to attempt to enforce, such an agreement. The act would make an exclusive listing agreement unrecordable and would make it unlawful to present for recordation, or otherwise attempt to record, an exclusive listing agreement or any memoranda or notice of the agreement.This act would provide that a contract or agreement made or recorded in violation of the above-described provisions is void and unenforceable and provides that the making, recording, or enforcing of a contract or agreement in violation of the above-described provisions constitutes a violation under the Consumers Legal Remedies Act, as described. The act would authorize a homeowner who entered into any such contract or agreement to retain any consideration received.Existing law requires the county recorder to accept, upon payment of proper fees and taxes, for recordation certain instruments, papers, notices, or other documents. Existing law provides that a recorder is liable to an aggrieved party for the amount of damages if the recorder, among other things, neglects or refuses to record the instrument, paper, or notice within a reasonable time after receiving it, unless the document is unrecordable. Under existing law, a person who receives a form from the recorder determining the document is unrecordable is guilty of a misdemeanor if the person attempts to subsequently record the unrecordable document without an order from the court requiring recordation of the document.This act would make exclusive listing agreements, or any memoranda or notice of the agreement, unrecordable. By expanding the scope of a crime and imposing limitations on the county recorder, the bill would impose a state-mandated local program.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 with regard to certain mandates no reimbursement is required by this act for a specified reason.With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. This act shall be known, and may be cited, as the Residential Exclusive Listing Agreements Act.SEC. 2. The Legislature finds and declares both of the following:(a) Long-term exclusive listing agreements and the recording of exclusive listing agreements unfairly encumber residential homeowners title, reduce their home equity, and have an anticompetitive effect on the sale of residential real estate.(b) To prevent these harms, it is the intent of the Legislature to prohibit exclusive listing agreements for the sale of residential real estate, including agreements to enter into any such agreement or arrangement, lasting longer than 12 months, and prohibit the recording of exclusive listing agreements for the sale of residential real estate, including agreements to enter into any such agreement or arrangement.SEC. 3. Section 1670.12 is added to the Civil Code, immediately following Section 1670.11, to read:1670.12. (a) For purposes of this section, exclusive listing agreement means a contract or agreement providing an exclusive right to list or sell residential real estate, including a contract or agreement to enter into any such agreement or arrangement.(b) It is unlawful for an exclusive listing agreement to last longer than 12 months from the date the agreement was made.(c) Exclusive listing agreements shall be unrecordable. It is unlawful to present for recordation, or otherwise attempt to record, an exclusive listing agreement or any memoranda or notice of such an agreement.(d) It is unlawful to enforce, or attempt to enforce, an exclusive listing agreement that violates this section.(e) (1) A contract or agreement made or recorded in violation of this section is void and unenforceable. A homeowner who entered into any such contract or agreement may retain any consideration received thereunder.(2) The making, recording, or enforcing of a contract or agreement in violation of this section constitutes a violation under Section 1770.SEC. 4. Section 27280.6 is added to the Government Code, to read:27280.6. (a) An exclusive listing agreement, or any memoranda or notice of such an agreement, shall be unrecordable.(b) For purposes of this section, exclusive listing agreement means a contract or agreement providing an exclusive right to list or sell residential real estate, including a contract or agreement to enter into any such agreement or arrangement.SEC. 5. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, 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.However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1345Introduced by Assembly Member HartFebruary 16, 2023 An act to add Section 1670.12 to the Civil Code, and to add Section 27280.6 to the Government Code, relating to contracts. LEGISLATIVE COUNSEL'S DIGESTAB 1345, as introduced, Hart. Contracts: Residential Exclusive Listing Agreements Act: prohibition.Existing law imposes limitations on various contracts, including by prohibiting a contract or proposed contract for the provision of a consumer service by a licensee regulated by a licensing board from including a provision limiting the consumers ability to file a complaint with that board or to participate in the boards investigation into the licensee.Existing law, the Consumers Legal Remedies Act, makes unlawful specified unfair methods of competition and unfair or deceptive acts or practices undertaken by any person in a transaction intended to result or that results in the sale or lease of goods or services to any consumer, including the passing off of goods or services as those of another. The act authorizes any consumer who suffers any damage as a result of the use or employment by any person of a method, act, or practice declared as unlawful under the act to bring an action against that person to recover or obtain certain remedies.This bill would enact the Residential Exclusive Listing Agreements Act. The act would make it unlawful for an exclusive listing agreement, as defined, to last longer than 12 months from the date the agreement was made and would make it unlawful to enforce, or to attempt to enforce, such an agreement. The act would make an exclusive listing agreement unrecordable and would make it unlawful to present for recordation, or otherwise attempt to record, an exclusive listing agreement or any memoranda or notice of the agreement.This act would provide that a contract or agreement made or recorded in violation of the above-described provisions is void and unenforceable and provides that the making, recording, or enforcing of a contract or agreement in violation of the above-described provisions constitutes a violation under the Consumers Legal Remedies Act, as described. The act would authorize a homeowner who entered into any such contract or agreement to retain any consideration received.Existing law requires the county recorder to accept, upon payment of proper fees and taxes, for recordation certain instruments, papers, notices, or other documents. Existing law provides that a recorder is liable to an aggrieved party for the amount of damages if the recorder, among other things, neglects or refuses to record the instrument, paper, or notice within a reasonable time after receiving it, unless the document is unrecordable. Under existing law, a person who receives a form from the recorder determining the document is unrecordable is guilty of a misdemeanor if the person attempts to subsequently record the unrecordable document without an order from the court requiring recordation of the document.This act would make exclusive listing agreements, or any memoranda or notice of the agreement, unrecordable. By expanding the scope of a crime and imposing limitations on the county recorder, the bill would impose a state-mandated local program.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 with regard to certain mandates no reimbursement is required by this act for a specified reason.With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Assembly Bill
No. 1345
Introduced by Assembly Member HartFebruary 16, 2023
Introduced by Assembly Member Hart
February 16, 2023
An act to add Section 1670.12 to the Civil Code, and to add Section 27280.6 to the Government Code, relating to contracts.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1345, as introduced, Hart. Contracts: Residential Exclusive Listing Agreements Act: prohibition.
Existing law imposes limitations on various contracts, including by prohibiting a contract or proposed contract for the provision of a consumer service by a licensee regulated by a licensing board from including a provision limiting the consumers ability to file a complaint with that board or to participate in the boards investigation into the licensee.Existing law, the Consumers Legal Remedies Act, makes unlawful specified unfair methods of competition and unfair or deceptive acts or practices undertaken by any person in a transaction intended to result or that results in the sale or lease of goods or services to any consumer, including the passing off of goods or services as those of another. The act authorizes any consumer who suffers any damage as a result of the use or employment by any person of a method, act, or practice declared as unlawful under the act to bring an action against that person to recover or obtain certain remedies.This bill would enact the Residential Exclusive Listing Agreements Act. The act would make it unlawful for an exclusive listing agreement, as defined, to last longer than 12 months from the date the agreement was made and would make it unlawful to enforce, or to attempt to enforce, such an agreement. The act would make an exclusive listing agreement unrecordable and would make it unlawful to present for recordation, or otherwise attempt to record, an exclusive listing agreement or any memoranda or notice of the agreement.This act would provide that a contract or agreement made or recorded in violation of the above-described provisions is void and unenforceable and provides that the making, recording, or enforcing of a contract or agreement in violation of the above-described provisions constitutes a violation under the Consumers Legal Remedies Act, as described. The act would authorize a homeowner who entered into any such contract or agreement to retain any consideration received.Existing law requires the county recorder to accept, upon payment of proper fees and taxes, for recordation certain instruments, papers, notices, or other documents. Existing law provides that a recorder is liable to an aggrieved party for the amount of damages if the recorder, among other things, neglects or refuses to record the instrument, paper, or notice within a reasonable time after receiving it, unless the document is unrecordable. Under existing law, a person who receives a form from the recorder determining the document is unrecordable is guilty of a misdemeanor if the person attempts to subsequently record the unrecordable document without an order from the court requiring recordation of the document.This act would make exclusive listing agreements, or any memoranda or notice of the agreement, unrecordable. By expanding the scope of a crime and imposing limitations on the county recorder, the bill would impose a state-mandated local program.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 with regard to certain mandates no reimbursement is required by this act for a specified reason.With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law imposes limitations on various contracts, including by prohibiting a contract or proposed contract for the provision of a consumer service by a licensee regulated by a licensing board from including a provision limiting the consumers ability to file a complaint with that board or to participate in the boards investigation into the licensee.
Existing law, the Consumers Legal Remedies Act, makes unlawful specified unfair methods of competition and unfair or deceptive acts or practices undertaken by any person in a transaction intended to result or that results in the sale or lease of goods or services to any consumer, including the passing off of goods or services as those of another. The act authorizes any consumer who suffers any damage as a result of the use or employment by any person of a method, act, or practice declared as unlawful under the act to bring an action against that person to recover or obtain certain remedies.
This bill would enact the Residential Exclusive Listing Agreements Act. The act would make it unlawful for an exclusive listing agreement, as defined, to last longer than 12 months from the date the agreement was made and would make it unlawful to enforce, or to attempt to enforce, such an agreement. The act would make an exclusive listing agreement unrecordable and would make it unlawful to present for recordation, or otherwise attempt to record, an exclusive listing agreement or any memoranda or notice of the agreement.
This act would provide that a contract or agreement made or recorded in violation of the above-described provisions is void and unenforceable and provides that the making, recording, or enforcing of a contract or agreement in violation of the above-described provisions constitutes a violation under the Consumers Legal Remedies Act, as described. The act would authorize a homeowner who entered into any such contract or agreement to retain any consideration received.
Existing law requires the county recorder to accept, upon payment of proper fees and taxes, for recordation certain instruments, papers, notices, or other documents. Existing law provides that a recorder is liable to an aggrieved party for the amount of damages if the recorder, among other things, neglects or refuses to record the instrument, paper, or notice within a reasonable time after receiving it, unless the document is unrecordable. Under existing law, a person who receives a form from the recorder determining the document is unrecordable is guilty of a misdemeanor if the person attempts to subsequently record the unrecordable document without an order from the court requiring recordation of the document.
This act would make exclusive listing agreements, or any memoranda or notice of the agreement, unrecordable. By expanding the scope of a crime and imposing limitations on the county recorder, the bill would impose a state-mandated local program.
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 with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. This act shall be known, and may be cited, as the Residential Exclusive Listing Agreements Act.SEC. 2. The Legislature finds and declares both of the following:(a) Long-term exclusive listing agreements and the recording of exclusive listing agreements unfairly encumber residential homeowners title, reduce their home equity, and have an anticompetitive effect on the sale of residential real estate.(b) To prevent these harms, it is the intent of the Legislature to prohibit exclusive listing agreements for the sale of residential real estate, including agreements to enter into any such agreement or arrangement, lasting longer than 12 months, and prohibit the recording of exclusive listing agreements for the sale of residential real estate, including agreements to enter into any such agreement or arrangement.SEC. 3. Section 1670.12 is added to the Civil Code, immediately following Section 1670.11, to read:1670.12. (a) For purposes of this section, exclusive listing agreement means a contract or agreement providing an exclusive right to list or sell residential real estate, including a contract or agreement to enter into any such agreement or arrangement.(b) It is unlawful for an exclusive listing agreement to last longer than 12 months from the date the agreement was made.(c) Exclusive listing agreements shall be unrecordable. It is unlawful to present for recordation, or otherwise attempt to record, an exclusive listing agreement or any memoranda or notice of such an agreement.(d) It is unlawful to enforce, or attempt to enforce, an exclusive listing agreement that violates this section.(e) (1) A contract or agreement made or recorded in violation of this section is void and unenforceable. A homeowner who entered into any such contract or agreement may retain any consideration received thereunder.(2) The making, recording, or enforcing of a contract or agreement in violation of this section constitutes a violation under Section 1770.SEC. 4. Section 27280.6 is added to the Government Code, to read:27280.6. (a) An exclusive listing agreement, or any memoranda or notice of such an agreement, shall be unrecordable.(b) For purposes of this section, exclusive listing agreement means a contract or agreement providing an exclusive right to list or sell residential real estate, including a contract or agreement to enter into any such agreement or arrangement.SEC. 5. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, 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.However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. This act shall be known, and may be cited, as the Residential Exclusive Listing Agreements Act.
SECTION 1. This act shall be known, and may be cited, as the Residential Exclusive Listing Agreements Act.
SECTION 1. This act shall be known, and may be cited, as the Residential Exclusive Listing Agreements Act.
### SECTION 1.
SEC. 2. The Legislature finds and declares both of the following:(a) Long-term exclusive listing agreements and the recording of exclusive listing agreements unfairly encumber residential homeowners title, reduce their home equity, and have an anticompetitive effect on the sale of residential real estate.(b) To prevent these harms, it is the intent of the Legislature to prohibit exclusive listing agreements for the sale of residential real estate, including agreements to enter into any such agreement or arrangement, lasting longer than 12 months, and prohibit the recording of exclusive listing agreements for the sale of residential real estate, including agreements to enter into any such agreement or arrangement.
SEC. 2. The Legislature finds and declares both of the following:(a) Long-term exclusive listing agreements and the recording of exclusive listing agreements unfairly encumber residential homeowners title, reduce their home equity, and have an anticompetitive effect on the sale of residential real estate.(b) To prevent these harms, it is the intent of the Legislature to prohibit exclusive listing agreements for the sale of residential real estate, including agreements to enter into any such agreement or arrangement, lasting longer than 12 months, and prohibit the recording of exclusive listing agreements for the sale of residential real estate, including agreements to enter into any such agreement or arrangement.
SEC. 2. The Legislature finds and declares both of the following:
### SEC. 2.
(a) Long-term exclusive listing agreements and the recording of exclusive listing agreements unfairly encumber residential homeowners title, reduce their home equity, and have an anticompetitive effect on the sale of residential real estate.
(b) To prevent these harms, it is the intent of the Legislature to prohibit exclusive listing agreements for the sale of residential real estate, including agreements to enter into any such agreement or arrangement, lasting longer than 12 months, and prohibit the recording of exclusive listing agreements for the sale of residential real estate, including agreements to enter into any such agreement or arrangement.
SEC. 3. Section 1670.12 is added to the Civil Code, immediately following Section 1670.11, to read:1670.12. (a) For purposes of this section, exclusive listing agreement means a contract or agreement providing an exclusive right to list or sell residential real estate, including a contract or agreement to enter into any such agreement or arrangement.(b) It is unlawful for an exclusive listing agreement to last longer than 12 months from the date the agreement was made.(c) Exclusive listing agreements shall be unrecordable. It is unlawful to present for recordation, or otherwise attempt to record, an exclusive listing agreement or any memoranda or notice of such an agreement.(d) It is unlawful to enforce, or attempt to enforce, an exclusive listing agreement that violates this section.(e) (1) A contract or agreement made or recorded in violation of this section is void and unenforceable. A homeowner who entered into any such contract or agreement may retain any consideration received thereunder.(2) The making, recording, or enforcing of a contract or agreement in violation of this section constitutes a violation under Section 1770.
SEC. 3. Section 1670.12 is added to the Civil Code, immediately following Section 1670.11, to read:
### SEC. 3.
1670.12. (a) For purposes of this section, exclusive listing agreement means a contract or agreement providing an exclusive right to list or sell residential real estate, including a contract or agreement to enter into any such agreement or arrangement.(b) It is unlawful for an exclusive listing agreement to last longer than 12 months from the date the agreement was made.(c) Exclusive listing agreements shall be unrecordable. It is unlawful to present for recordation, or otherwise attempt to record, an exclusive listing agreement or any memoranda or notice of such an agreement.(d) It is unlawful to enforce, or attempt to enforce, an exclusive listing agreement that violates this section.(e) (1) A contract or agreement made or recorded in violation of this section is void and unenforceable. A homeowner who entered into any such contract or agreement may retain any consideration received thereunder.(2) The making, recording, or enforcing of a contract or agreement in violation of this section constitutes a violation under Section 1770.
1670.12. (a) For purposes of this section, exclusive listing agreement means a contract or agreement providing an exclusive right to list or sell residential real estate, including a contract or agreement to enter into any such agreement or arrangement.(b) It is unlawful for an exclusive listing agreement to last longer than 12 months from the date the agreement was made.(c) Exclusive listing agreements shall be unrecordable. It is unlawful to present for recordation, or otherwise attempt to record, an exclusive listing agreement or any memoranda or notice of such an agreement.(d) It is unlawful to enforce, or attempt to enforce, an exclusive listing agreement that violates this section.(e) (1) A contract or agreement made or recorded in violation of this section is void and unenforceable. A homeowner who entered into any such contract or agreement may retain any consideration received thereunder.(2) The making, recording, or enforcing of a contract or agreement in violation of this section constitutes a violation under Section 1770.
1670.12. (a) For purposes of this section, exclusive listing agreement means a contract or agreement providing an exclusive right to list or sell residential real estate, including a contract or agreement to enter into any such agreement or arrangement.(b) It is unlawful for an exclusive listing agreement to last longer than 12 months from the date the agreement was made.(c) Exclusive listing agreements shall be unrecordable. It is unlawful to present for recordation, or otherwise attempt to record, an exclusive listing agreement or any memoranda or notice of such an agreement.(d) It is unlawful to enforce, or attempt to enforce, an exclusive listing agreement that violates this section.(e) (1) A contract or agreement made or recorded in violation of this section is void and unenforceable. A homeowner who entered into any such contract or agreement may retain any consideration received thereunder.(2) The making, recording, or enforcing of a contract or agreement in violation of this section constitutes a violation under Section 1770.
1670.12. (a) For purposes of this section, exclusive listing agreement means a contract or agreement providing an exclusive right to list or sell residential real estate, including a contract or agreement to enter into any such agreement or arrangement.
(b) It is unlawful for an exclusive listing agreement to last longer than 12 months from the date the agreement was made.
(c) Exclusive listing agreements shall be unrecordable. It is unlawful to present for recordation, or otherwise attempt to record, an exclusive listing agreement or any memoranda or notice of such an agreement.
(d) It is unlawful to enforce, or attempt to enforce, an exclusive listing agreement that violates this section.
(e) (1) A contract or agreement made or recorded in violation of this section is void and unenforceable. A homeowner who entered into any such contract or agreement may retain any consideration received thereunder.
(2) The making, recording, or enforcing of a contract or agreement in violation of this section constitutes a violation under Section 1770.
SEC. 4. Section 27280.6 is added to the Government Code, to read:27280.6. (a) An exclusive listing agreement, or any memoranda or notice of such an agreement, shall be unrecordable.(b) For purposes of this section, exclusive listing agreement means a contract or agreement providing an exclusive right to list or sell residential real estate, including a contract or agreement to enter into any such agreement or arrangement.
SEC. 4. Section 27280.6 is added to the Government Code, to read:
### SEC. 4.
27280.6. (a) An exclusive listing agreement, or any memoranda or notice of such an agreement, shall be unrecordable.(b) For purposes of this section, exclusive listing agreement means a contract or agreement providing an exclusive right to list or sell residential real estate, including a contract or agreement to enter into any such agreement or arrangement.
27280.6. (a) An exclusive listing agreement, or any memoranda or notice of such an agreement, shall be unrecordable.(b) For purposes of this section, exclusive listing agreement means a contract or agreement providing an exclusive right to list or sell residential real estate, including a contract or agreement to enter into any such agreement or arrangement.
27280.6. (a) An exclusive listing agreement, or any memoranda or notice of such an agreement, shall be unrecordable.(b) For purposes of this section, exclusive listing agreement means a contract or agreement providing an exclusive right to list or sell residential real estate, including a contract or agreement to enter into any such agreement or arrangement.
27280.6. (a) An exclusive listing agreement, or any memoranda or notice of such an agreement, shall be unrecordable.
(b) For purposes of this section, exclusive listing agreement means a contract or agreement providing an exclusive right to list or sell residential real estate, including a contract or agreement to enter into any such agreement or arrangement.
SEC. 5. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, 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.However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 5. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, 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.However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 5. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, 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.
### SEC. 5.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.