AB-1869 • 2026

Real Estate Investment Trusts: management duties.

Housing Labor Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Haney
Last action: 2026-05-14
Official status: In committee: Held under submission.
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Real Estate Investment Trusts: management duties.

AB 1869, as amended, Haney.

What This Bill Does

AB 1869, as amended, Haney.
Real Estate Investment Trusts: management duties.
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.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-05-14 California Legislative Information
In committee: Held under submission.
2026-05-06 California Legislative Information
In committee: Set, first hearing. Referred to APPR. suspense file.
2026-04-23 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 2.) (April 22). Re-referred to Com. on APPR.
2026-04-16 California Legislative Information
Re-referred to Com. on L. & E. pursuant to Assembly Rule 96.
2026-04-15 California Legislative Information
Re-referred to Com. on REV. & TAX.
2026-04-14 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
2026-04-13 California Legislative Information
In committee: Set, first hearing. Hearing canceled at the request of author.
2026-03-16 California Legislative Information
Referred to Com. on REV. & TAX.
2026-02-13 California Legislative Information
From printer. May be heard in committee March 15.
2026-02-12 California Legislative Information
Read first time. To print.

Official Summary Text

AB 1869, as amended, Haney.
Real Estate Investment Trusts: management duties.
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
clarify that exercising control over, or reserving the right to exercise control over, specified activities of a lodging facility, as defined, are actions that
constitute managing or operating real property. The bill would state that this provision does not constitute a change in, but is declaratory of, existing law. The bill would also
allow affected employees of a lodging
facility
facility, as defined,
or their representative to provide evidence to the
Franchise Tax Board
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
Franchise Tax Board
Labor Commissioner
to confirm receipt of that evidence and, within
____
45
days of receipt, would require the
Franchise Tax Board
Labor Commissioner
to provide the affected employee or representative a written response to the
submission.
submission, and would require the Labor Commissioner to forward that response to the Franchise Tax Board.

Current Bill Text

Read the full stored bill text

Download Bill PDF