AB 1869: Real Estate Investment Trusts: management duties.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

The Corporation Tax Law, in modified conformity with federal income tax law, allows a corporation, trust, or association that would otherwise be taxable as a domestic corporation to elect to be treated as a real estate investment trust (REIT) if specified requirements are met in relation to the character of income received by the entity, including a requirement that 95% of the entity’s income fits into several categories, including rents from real property. Existing law specifically excludes from the term “rents from real property” impermissible tenant service income, defined to include amounts received directly or indirectly for managing or operating real property.

This bill would allow affected employees of a lodging facility, as defined, or their representative to provide evidence to the Labor Commissioner of activities performed by a REIT that constitute direct or indirect operation or management of a lodging facility. The bill would require the Labor Commissioner to confirm receipt of that evidence and, within 45 days of receipt, would require the Labor Commissioner to provide the affected employee or representative a written response to the submission, and would require the Labor Commissioner to forward that response to the Franchise Tax Board.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. May 14, 2026In committee: Held under submission.
2. May 6, 2026In committee: Set, first hearing. Referred to APPR. suspense file.
3. April 23, 2026From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 2.) (April 22). Re-referred to Com. on APPR.
4. April 16, 2026Re-referred to Com. on L. & E. pursuant to Assembly Rule 96.
5. April 15, 2026Re-referred to Com. on REV. & TAX.
6. April 14, 2026From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
7. April 13, 2026In committee: Set, first hearing. Hearing canceled at the request of author.
8. March 16, 2026Referred to Com. on REV. & TAX.
9. February 13, 2026From printer. May be heard in committee March 15.
10. February 12, 2026Read first time. To print.