Sacramento Report

Where Are They Now? Mid-Year Legislative Report

by Debra Carlton

At this point in the year, the California Apartment Association (CAA) has taken a position on nearly 100 bills that have the potential to impact the rental housing industry. Here’s an update on a number of the bills that we have reported to you in recent articles.

AB 18 (D-Leno)
Civil Rights: Discrimination. As initially introduced, this bill allowed cities and counties to impose laws that provided greater protections against housing discrimination than current state or federal law. Assembly Member Leno has removed these provisions from the bill. It now impacts public employment. CAA Position: Oppose (on initial language).

AB 69 (D-Correa) Unfair Competition.
This bill was introduced to address abuses of California’s unfair competition law (Business & Professions Code Section 17200). The unfair competition law currently allows private attorneys to bring an action alleging an “unfair” business practice (1) without a client; (2) without evidence that anyone suffered a loss or was deceived; (3) without evidence of intent; and (4) even if a district attorney or private lawyer has already investigated and resolved a complaint related to the same activity. This bill amends the law by requiring that a complaint must be verified and accompanied by a statement under penalty of perjury attesting to specific information. It also imposes additional requirements on the lawyers who bring the case, including a requirement that they notify listed agencies of the filing of the complaint and any proposed judgment. The Attorney General must make these notifications publicly available via the Internet. The bill also prohibits a private person acting for the interests of the general public from soliciting a settlement or resolution of an alleged act of unfair competition without first filing a complaint with the court. AB 69 did not gain the votes necessary to move forward this year. The author plans to present the bill again in January. CAA position: Support.

AB 81 (R-Wyland) Insurance Underwriting.
This bill prohibits an insurance company from reaching an adverse underwriting decision based on the fact that an individual has previously inquired about the scope or nature of coverage under a residential fire or property insurance policy if the inquiry did not result in the filing of a claim. This bill passed the Assembly and is awaiting a hearing in the Senate Insurance Committee. CAA position: Support.

AB 95 (D-Corbett) Unfair Competition.
Similar to AB 69, explained above, this bill proposes to provide some reform to California’s Unfair Competition bill. This bill is linked to SB 122, outlined below, which requires that the governor sign both bills in order for them to become law. AB 95 requires trial attorneys to provide a standard consumer information notice to defendants. This bill successfully passed out of the Assembly and awaits a hearing in the Senate. CAA position: Oppose (due to its link to SB 122, see below).

AB 196 (D-Leno) Discrimination.
This bill prohibits discrimination in housing and employment based on an individual’s gender. The bill permits employers to require employees to comply with reasonable workplace appearance, grooming and dress standards provided that employees are allowed to appear or dress consistently with their gender identity. This bill successfully moved out of the Assembly and is awaiting a hearing in the Senate. CAA position: Support.

AB 209 (R-Leslie) Disabled Persons: Liability.
This bill specifies that a person cannot be held liable for damages under the Americans with Disabilities Act until they have been given a notice 60 days before the filing of a complaint by a plaintiff and have also been given the opportunity to correct the violation. The author was not successful in his attempts to move the bill this year. He has designated this bill as a “two-year bill” and will present it to the Legislature in January 2004. CAA position: Support.

AB 210 (D-Nation)
This law, among other things, prohibits the smoking of tobacco by anyone in the indoor and outdoor common areas of multifamily residential housing. It also prohibits, beginning January 1, 2006, the smoking of tobacco in all units of multifamily properties, except those units that have been specifically designated by the owner as units where smoking is permitted. This bill defines multifamily housing, as housing comprised of more than one unit, including both owner- and renter-occupied apartments and condominiums. A hearing was not held on AB 210 this year. Assemblyman Nation has not indicated whether or not he will present the bill next year. CAA position: Oppose.

AB 309 (D-Chu) Foreign Languages.
This bill requires a business or trade person who negotiates a contract in a foreign language to provide a copy of the agreement, prior to execution, to the other party in the foreign language. This bill has moved out of the Assembly and is awaiting a hearing in the Senate. CAA position: Oppose.
AB 647 (D-Nunez) Code Violations. AB 647 proposes to increase penalties against slumlords and forces them to repair conditions at the property more quickly than under existing law. As requested by CAA, AB 647 makes clear that an owner must have a written notice from an enforcement agency regarding the conditions of the property prior to a tenant claiming any penalties under the law. The conditions at the property must exist to an extent that endangers the life, limb, health, property, safety or welfare of the public or the occupants of the property. This bill successfully moved out of the Assembly and awaits a hearing in the Senate. CAA position: Neutral.

AB 831 (D-Goldberg) Unlawful Detainer.
This bill proposed to give tenants more time to respond to an eviction complaint and allowed them to gain access to the unit after they were removed by a sheriff, if they could show that the court made a mistake during the process. As a result of opposition by CAA members, this bill failed passage on the Assembly Floor. CAA position: Oppose.

AB 1059 (D-Lieber) Landlord-Tenant: Harassment.
As introduced, AB 1059 provided for jail time and penalties for rental property owners and managers who “annoyed” tenants. Among other things, the legislation specifically prohibited owners from abusing “a tenant with words that were offensive or inherently likely to provoke an immediate violent reaction.” In addition, owners who refused to acknowledge and provide a written receipt for a tenant’s rent payment could face jail time. As a result of strong opposition from members of the CAA, this language was removed from the bill. The author later amended the bill to increase penalties from $1,000 to $2,000 against rental property owners who retaliated against tenants exercising their rights under the law. The bill successfully moved off the Assembly Floor and awaits a hearing in the Senate. CAA position: Support.

AB 1217 (D-Leno) Rental Property: Residential Units.
This bill allows a local government to compel the owner of guest-rooms or efficiency units within a residential hotel to keep the units available for rent indefinitely. The building would no longer be protected by the state’s Ellis Act, which prohibits any local ordinance that requires property owners to keep the units available for rent. As a result of opposition from members of the CAA, the author amended the legislation to apply only if: (1) the rental units are located in a city and/or county with a population of one million or more; (2) the owner of the property has not sent a notice of intent to withdraw the units from rent or lease prior to January 1, 2004; and (3) the units have a certificate of occupancy dated prior to January 1, 1986. CAA position: Oppose.

AB 1256 (D-Koretz) Rent Control.
This bill guts most of the original language of the state’s Costa-Hawkins Rental Housing Act and replaces it with provisions that allow local communities to regulate rents and evictions on all housing where there is a certificate of occupancy on the building that is 26 years old or older. A hearing was not scheduled for AB 1256 this year. The author has stated his intent to present the bill in 2004. CAA position: Oppose.

AB1384(R-Maddox)Initial Inspection.
This CAA-sponsored legislation amends existing law that governs the responsibility of owners to provide tenants with a notification regarding their right to request an inspection of the unit prior to the termination of the tenancy. AB 1384 specifically provides that a tenant is not entitled to a walk-through of the rental units when the owner serves the tenant with a three-day termination notice. The bill successfully moved out of the Assembly and is awaiting a hearing in the Senate Judiciary Committee. CAA position: Support.

SB 64 (D-Speier) Insurance.
This bill prohibits any insurance company from refusing to offer or refusing to renew coverage on property because of any inquiry about policy coverage or because of a notification of a loss by the insured to an insurer, when the notification is not intended by the insured to be a claim under the policy. It successfully moved out of the Senate and awaits a hearing in the Assembly Insurance Committee. CAA position: Support.
SB 90 (D-Torlakson) Security Deposits. This bill requires rental property owners to include a receipt for any labor or material the owner has paid for and has deducted from the security deposit. It also changes the way in which the owner is required to return the security deposit. The owner may satisfy his or her obligation to provide any remaining security deposit, the itemized statement and copies of receipts in one of the following ways: (1) by personal delivery within 21 days after the tenant has vacated the premises; (2) by first-class mail, postage prepaid, sent within 16 days after the tenant has vacated the premises; or (3) by prepaid overnight delivery, sent within 20 days after the tenant has vacated the premises. CAA is working with the author to amend the bill. SB 90 successfully moved off the Senate Floor and awaits a hearing in the Assembly Judiciary Committee. CAA position: Oppose Unless Amended.

SB122(D-Escutia)Unfair Competition.
This bill adds “disgorgement” to the remedies available to trial lawyers under California’s Unfair Competition Law, which means that lawyers can collect large amounts of money from a business when the business violates a minor regulation. AB 95 is joined with SB 122, which requires that the governor signs both bills in order for them to become law. SB 122 successfully moved out of the Senate and awaits a hearing in an Assembly committee. CAA position: Oppose.

SB 178 (D-Cedillo) Rent Control.
This bill amends the state’s Costa-Hawkins Rental Housing Act by allowing local governments to control the rents on new or rehabilitated units. This bill successfully moved out of the Senate and is awaiting a hearing in the Assembly. CAA position: Oppose.

SB 345 (Kuehl) Tenants’ Rights.
This bill accomplishes the following:

When a rental property owner (in a rent control jurisdiction) terminates a tenancy in order to move into the rental unit, the owner cannot increase the rent on a new tenant who later moves in if the owner has lived in the unit for less than five years.
It seals eviction records for 60 days following the date that final judgment is rendered in favor of the plaintiff after trial or motion for summary judgment.
It requires plaintiffs (rental property owners) in an eviction action to attach to the complaint a copy of any notice of termination served on the tenant or any public entity, any proof of service of the notice served on the defendant or any public entity, any written rental agreement or lease regarding the premises, and proof of registration with any local rent stabilization entity, if registration is required by local law.
It permits a tenant to regain legal possession of the rental unit up through and including the date of an eviction hearing so long as the tenant pays the rent due, pays any reasonable attorneys’ fees incurred by the plaintiff (if fees are provided for in a written lease or rental agreement), and pays the cost of filing the action with the court.
It directs housing authorities, in exercising their discretion regarding drug-related criminal activity or other criminal activity of certain public housing tenants and people connected to them, to terminate a tenancy or a subsidy or evict only a tenant (a) who could have reasonably foreseen the activity; (b) who failed to take any reasonable steps to prevent it; and (c) who was not the victim of the criminal activity, including activity reported by law enforcement agencies, or housing authority personnel. This bill successfully moved out of the Senate and is awaiting a hearing in the Assembly Judiciary Committee. CAA position: Oppose.

For a complete list of the legislation tracked by the CAA, please go to caanet.org

The opinions expressed in this article are those of the author and do not necessarily reflect the viewpoint of the SFAA or the SF Apartment Magazine. Debra CarltonistheVice President of Policy and Research and is CAA’s chief lobbyist.