BILL ANALYSIS Ó
AB 2521
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2521 (Blumenfield)
As Amended August 13, 2012
Majority vote
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|ASSEMBLY: |76-0 |(May 14, 2012) |SENATE: |37-0 |(August 23, |
| | | | | |2012) |
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Original Committee Reference: JUD.
SUMMARY : Revises procedures for the disposition of private
property left behind by former tenants of real property.
Specifically, this bill :
1)Increases the minimum value, from $300 to $700, of a former
tenant's unclaimed personal property that a landlord must
offer at a public sale rather than disposing of it or keeping
the property for his or her own use.
2)Authorizes the landlord to provide to the former tenant by
email, in addition to personal delivery or first class mail,
written notice describing personal property left behind by the
former tenant and how to reclaim such property, but only if
the former tenant had provided the landlord with his or her
email address.
3)Revises the above statutorily prescribed notices provided to
former tenants and other persons who the landlord reasonably
believes to be the owner of personal property left behind
after termination of the tenancy.
4)Requires the landlord to inform the tenant of his or her right
to recover abandoned property in the notice to terminate a
tenancy, or in the notice to request an initial inspection of
the property prior to termination.
5)Provides that the landlord shall release the unclaimed
personal property to the former tenant and shall not require
the former tenant to pay the cost of storage if such property
remained in the dwelling and is reclaimed by the former tenant
within two days of having vacated the dwelling.
The Senate amendments allow the landlord and tenant to mutually
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agree to have the landlord electronically deposit any remaining
portion of the tenant's security deposit in the tenant's bank
account and then e-mail an electronic copy of the accompanying
itemized statement to the tenant. In addition, the Senate
amendments include language to avoid chaptering out conflicts
with AB 1679 and AB 2303.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar
to the version approved by the Senate.
FISCAL EFFECT : None
COMMENTS : This bill seeks to revise statutory procedures
governing the disposition of unclaimed personal property left
behind on the premises by the former tenant after termination of
the tenancy. Among other things, this bill seeks to increase
the threshold amount under existing law that determines whether
a landlord has the option to keep or dispose of a former
tenant's unclaimed personal property, rather than being required
by law to hold a public sale for such property. Under this
bill, the current threshold amount would be increased from $300
to $700-an increase based on Consumer Price Index (CPI) data
that reflects the first adjustment of this figure for inflation
since 1983, according to the author. By reducing the number of
public sales that would be required by law to be held, this
adjustment would have the effect of relieving some of the
associated storage and sale costs that landlords contend is an
inefficient burden placed on them by the current law.
In addition, this bill seeks to implement important changes
intended to increase the rate that tenants reclaim and are
reunited with their personal property. First, this bill offers
a two-day "grace period" from storage fees whereby, in certain
circumstances, the former tenant is incentivized to reclaim his
or her property right away and thus avoid paying any storage
costs that would otherwise start accruing under current law. In
addition, this bill seeks to expand early notice given to the
former tenant so he or she clearly understands the options and
costs associated with reclaiming the personal property.
The bill is supported by a number of apartment associations, who
contend that the existing minimum value ($300) of unclaimed
property that requires a landlord to hold a public sale was
enacted almost 30 years ago, and is unreasonably low given
subsequent inflation. Moreover, they contend that it is neither
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practical nor economical for a landlord to hold a public sale
for unclaimed property worth less than $300 when the costs of
holding a public sale, including costs for storage, an
auctioneer, advertising, and publication of notice, may far
exceed the value of the property.
This bill seeks to raise the threshold amount triggering the
need for a public sale from $300 to $700. According to the
author, the proposed amount of $700 reflects the appropriate
increase based on using the CPI as a measure of inflation.
Although it is unknown what proportion of former tenants
currently leave behind property valued in excess of $300,
tenants often do not reclaim abandoned or forgotten property
valued at $300 or less, according to the Apartment Association
of Greater Los Angeles. By raising the threshold value to $700,
this bill is expected to significantly reduce the number of
instances where a landlord would be required to hold a public
sale if that property goes unclaimed.
Both tenant and landlord groups agree that a policy of reuniting
tenants with their property as soon as possible benefits
everyone involved. This bill expands early notice to tenants
about their general right to reclaim any property they may leave
behind after moving out. Disclosure of this right shall be
included in the termination notice itself as well as the notice
to request inspection of the unit prior to termination, pursuant
to existing landlord-tenant law. This bill also authorizes the
landlord, if provided with the former tenant's email address, to
email the specific notice to the former tenant required by Civil
Code Section 1983, describing property that has been left behind
after termination of tenancy, and advising the person of the
rights and procedures associated with reclaiming the property.
Western Center on Law and Poverty reports that when tenants
leave property behind after vacating the premises (particularly
large items like furniture), it is often the result of
unexpected difficulties with moving the property, transportation
issues, or simply running out of time and not necessarily the
intentional abandonment of the property. Unfortunately,
existing law is relatively inflexible because it requires the
tenant to pay storage costs that start accruing immediately
thereafter in order to reclaim his or her property. This may
provide a disincentive for the tenant to reclaim the property,
depending on its value, because storage and other associated
costs may quickly exceed the value of the property. If the
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property is worth more than the threshold value yet goes
unclaimed after the 15-day period of notice, then the landlord
is required to hold a public sale for the property, thus
incurring additional costs.
This bill for the first time offers tenants a limited
opportunity to reclaim property left behind without paying
storage fees, as long as it is reclaimed within two days since
the tenant vacated and the property remained in the dwelling
during that time (i.e., no costs were incurred moving the
property out of the unit or putting it into storage). Property
reclaimed after two days or that has been moved out of the unit
may still be reclaimed pursuant to existing law, which requires
its release if the tenant pays the reasonable cost of storage
and takes possession of the property no later than the date
specified in the notice (usually 15 days).
Presently, a former tenant who leaves personal property
reasonably worth more than the threshold value has a number of
options provided by existing law to reacquire the property if
not reclaimed within the initial 15-day period of notice.
First, the landlord must release the property to the former
tenant if the tenant claims it prior to the time it is sold and
pays the reasonable cost of storage, advertising, and sale
incurred prior to the time the property is withdrawn from sale.
Second, the former tenant has the right to bid on the property
at the public sale. Finally, the former tenant may claim any
proceeds remaining after the costs of storage, advertising, and
holding the sale have been deducted and paid into the county
treasury as long as the claim is made within one year from the
date of payment to the county. This bill does not change any of
these rights, although it does seek to encourage former tenants
to reclaim their property earlier so these less cost-effective
options would be exercised less frequently.
Analysis Prepared by : Anthony Lew / JUD. / (916) 319-2334
FN: 0004843