Start at the city/county building department. 

For starters, the slab will never be considered good for a 'living space'...... no vapor barrier, not enough steel.Better to have a contractor come in and make sure the electrical is ok and then leave it at that.You could go down to the city building department and ask vaguely about converting a garage and see what they say.

This agreement covers things like the SD, back rent, back utilities, personal property, who pays what, who gets what moving forward etc....so there is no debate on who owes what or that the departing spouse has all their stuff out of the home and they need to talk to the staying spouse, not us, if anything is missing etc.....also cover off keys/locks changes who pays (get it upfront) and garage door opener codes blah blah blah.  

Contact the city or county planning department in each area you're looking at.

@Jon Dahl You might try looking for major employers within a three mile radius and contact their HR departments. 

The rest it is either explicitly illegal in the entire state (Such as California), or part of the state (Such as Texas where it is illegal in Dallas and Austin).Specifically in California where the question is being asked about, both the prospective tenants, as well as DEFH (Department of Fair Employment and Housing) can bring suit against the landlord and collect "seeking remedies that may include recovery of out-of-pocket losses, an injunction prohibiting the unlawful practice, access to housing that the landlord denied, damages for emotional distress, civil penalties or punitive damages, and attorney’s fees."

I am in the process of filing a complaint with the licensing department and attorney general.

If you call the city they usually have an occupancy or habitability dept in their Permitting department, who can help answer your question.

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Contact the building department, explain the situation and see what they require to convert to residential.