Sacramento Report

2003-04 California legislative Session: First Landlord/Tenant Bills

by Debra Carlton

At the time of this writing, there are still two weeks remaining before all bills must be introduced at the State Capitol. The following is a list of the first bills that the CAA (California Apartment Association) has identified as having a potential impact on the rental housing industry.

AB 18 (D-Leno) Civil Rights and Discrimination
This bill allows cities and counties to impose laws that provide greater protections against discrimination than state or federal law.

AB 69 (D-Correa) Business and Unfair Competition
This bill addresses abuses of California’s unfair competition law (Business & Professions Code Section 17200). As introduced, AB 69 is simply a spot bill, containing general findings regarding the law. The unfair competition law currently allows private attorneys to bring an action alleging an “unfair” business practice without a client; without evidence that anyone suffered a loss or was deceived; and without evidence of intent; even if a district attorney or private lawyer has already investigated and resolved a complaint related to the same activity. The business community has experienced a significant rise in the number of mass-produced representative actions over baseless or highly questionable allegations—many founded on administrative actions that have already been concluded by the regulatory agency.

AB 81 (R-Wyland) Insurance Underwriting
This bill prohibits an insurance institution 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. This applies specifically to both information received from an insurance-support organization whose primary source of information is insurance institutions and to inquiries that did not result in the filing of a claim.

AB 82 (R-Dutton) Homeowners’ Property Exemption: Renter’s Credit
This bill increases the amount of the homeowners’ exemption from $7,000 to $32,000 and will annually increase that amount by an inflation factor as provided, beginning with the January 1, 2004, property tax lien date. This bill also increases the renters’ tax credit from $120 to $370 for married couples, heads of household, and surviving spouses; and increases the renters’ tax credit from $60 to $185 for all other individuals. In both cases, the bill provides for an adjustment to the credit amount for inflation for taxable years beginning on or after January 1, 2004.

AB 95 (Committee on Judiciary) Unfair Competition
This bill includes limited liability companies in the list of “persons” who are subject to actions under California’s unfair competition law (Business & Professions Code Section 17200). The definition of “persons” currently includes “natural persons, corporations, firms, partnerships, joint stock companies, associations and other organizations of persons.”

AB 102 (R-Pacheco) Unfair Competition
This bill addresses abuses of California’s unfair competition law (Business & Professions Code Section 17200 – see explanation of existing law under AB 69 earlier in this column). It imposes various limitations on unfair competition actions brought by private enforcers. Specifically, AB 102 states that a plaintiff must provide 90-days’ notice to the defendant prior to filing suit; the notice must specify the acts of unfair competition; and the plaintiff must have suffered a distinct and palpable injury as a result of prohibited practices. No action may be commenced if a private or public enforcer has brought an action alleging substantially similar facts and theories of liability. The bill also limits discovery in unfair competition actions and authorizes the judge hearing the action to consider mitigating actions of the defendant.

AB 162 (D-Cohn) Tax Credits
This bill makes a declaration of legislative intent to provide tax credits to landlords who rent their residential property to public school teachers at below market rates.

AB 196 (D-Leno) Gender Discrimination
This bill prohibits discrimination in housing and employment based on an individual’s gender. It permits employers to require employees to comply with reasonable workplace standards of appearance, grooming, and dress provided that employees are allowed to appear or dress
consistently with their gender identity.

AB 209 (R-Leslie) Disabled Persons and 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 and have been given the opportunity to correct it.

AB 210 (D-Nation)
This law, among other things, prohibits the smoking of tobacco by anyone in the indoor multifamily residential housing. Beginning January 1, 2006, it also prohibits 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. Multifamily housing is defined in this bill, as housing comprised of more than one unit, including both owner- and renter-occupied apartments and condominiums.

SB 64 (D-Speier) Insurance
This bill prohibits any insurance company from refusing to offer or refusing to renew coverage on property because of an 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.

SB 69 (R-Oller) Disability Access
This bill sets forth the duty of an individual with a disability who in good faith believes that a public accommodation or housing accommodation does not provide full and equal access, to notify the owner or manager of that accommodation. SB 69 also requires the owner or manager to notify the individual of planned improvements to the building and to make those improvements within a specified period of time, during which period the individual with a disability is prohibited from commencing a cause of action under any state disable access law.

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. Legislators will certainly introduce more bills over the next several weeks. Check CAA’s web site for updates. CAA’s State Government Committee members will meet in mid-March to take positions on all bills that will impact the industry.