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The Real Deal Los Angeles

The fate of a bill that would create a real estate transaction fee is still unknown

Just one nay vote could sink it
September 06, 2017 09:00AM

Senator Toni Atkins with Governor Jerry Brown (Getty)

Controversial Senate Bill 2 is facing more resistance than Democrats hoped for.

Three Democrats in the Assembly — Al Muratsuchi from Torrance, Tom Daly of Anaheim and Jacqui Irwin of Thousand Oaks — are undecided on the bill, the Los Angeles Times reported.

SB-2, which would charge a $75 to $225 fee on most real estate transactions, requires two-thirds majority vote to make it to Governor Jerry Brown’s desk. If as little as one Democrat votes nay, the bill would be shot down.

Sen. Toni Atkins’ bill has come with much opposition, most notably from the California Mortgage Association and California Escrow Association. Critics claim the bill — which aims to raise funds for low-income housing development — would discourage proper record keeping and put an extra burden on financially troubled homeowners.

The bill is expected to generate $229 to $258 million per year.

A much larger housing bill package, which includes other controversial bills such as Senate Bill 3, was slated for voting on Sept. 1, but was called off when it became clear there weren’t enough votes to pass SB 2. Leaders are now expecting the vote to happen as early as Friday, days before the legislative session is scheduled to end on Sept. 15. [LAT] – Natalie Hoberman