BILL NUMBER: SB 1055	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 14, 2012
	AMENDED IN SENATE  MAY 15, 2012

INTRODUCED BY   Senator Lieu

                        FEBRUARY 9, 2012

    An act to add Section 1947.2 to the Civil Code, relating
to landlord and tenant.   An act to amend Section 1947.3
of the Civil Code, relating to landlord and tenant. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1055, as amended, Lieu. Landlord and tenant: payments. 
   Existing law provides that a landlord or a landlord's agent may
not demand or require cash as the exclusive form of payment of rent
or deposit of security, except as specified.  
   This bill would provide that, except as specified, a landlord or
landlord's agent shall allow a tenant to pay rent and deposit of
security by at least one form of payment that is neither cash nor
electronic funds transfer. The bill would define the term "electronic
funds transfer" for these purposes.  
   Existing law regulates the relationship between landlord and
tenant and the terms and conditions of tenancies. Existing law
requires a tenant to pay rent as it successively becomes due.
 
   This bill would prohibit a landlord or a landlord's agent from
requiring online Internet payments as the exclusive form of payment
of rent or deposit of security for any lease or rental agreement that
is first effective on or after January 1, 2013. The bill would
provide that a waiver of these provisions is contrary to public
policy, and is void and unenforceable. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 1947.3 of the   Civil
Code   is amended to read: 
   1947.3.  (a) (1) Except as provided in paragraph (2), a landlord
or a landlord's agent  may not demand or require cash as the
exclusive form of payment of rent or deposit of security 
 shall allow a tenant to pay rent and deposit of security by at
least one form of payment that is neither cash nor electronic funds
transfer  .
   (2) A landlord or a landlord's agent may demand or require cash as
the exclusive form of payment of rent or deposit of security if the
tenant has previously attempted to pay the landlord or landlord's
agent with a check drawn on insufficient funds or the tenant has
instructed the drawee to stop payment on a check, draft, or order for
the payment of money. The landlord may demand or require cash as the
exclusive form of payment only for a period not exceeding three
months following an attempt to pay with a check on insufficient funds
or following a tenant's instruction to stop payment. If the landlord
chooses to demand or require cash payment under these circumstances,
the landlord shall give the tenant a written notice stating that the
payment instrument was dishonored and informing the tenant that the
tenant shall pay in cash for a period determined by the landlord, not
to exceed three months, and attach a copy of the dishonored
instrument to the notice. The notice shall comply with Section 827 if
demanding or requiring payment in cash constitutes a change in the
terms of the lease.
   (3) Paragraph (2) does not enlarge or diminish a landlord's or
landlord's agent's legal right to terminate a tenancy.
   (b) For the purposes of this section, the issuance of a money
order or a cashier's check is direct evidence only that the
instrument was issued. 
   (c) For purposes of this section, "electronic funds transfer"
means any transfer of funds, other than a transaction originated by
check, draft, or similar paper instrument, that is initiated through
an electronic terminal, telephonic instrument, computer, or magnetic
tape so as to order, instruct, or authorize a financial institution
to debit or credit an account. "Electronic funds transfer" includes,
but is not limited to, point-of-sale transfers, direct deposits or
withdrawals of funds, transfers initiated by telephone, transfers via
an automated clearinghouse, transfers initiated electronically that
deliver a paper instrument, and transfers authorized in advance to
recur at substantially regular intervals.  
   (d) Nothing in this section shall be construed to prohibit the
tenant and landlord or agent to mutually agree that rent payments may
be made in cash or by electronic funds transfer, so long as another
form of payment is also authorized, subject to the requirements of
subdivision (a).  
    (c) 
    (e)  A waiver of the provisions of this section is
contrary to public policy, and is void and unenforceable. 
  SECTION 1.    Section 1947.2 is added to the Civil
Code, to read:
   1947.2.  (a) A landlord or a landlord's agent may not demand or
require online Internet payments as the exclusive form of payment of
rent or deposit of security in any lease or rental agreement that is
first effective on or after January 1, 2013.
   (b) Subdivision (a) does not enlarge or diminish a landlord's or
landlord's agent's legal right to terminate a tenancy.
   (c) A waiver of the provisions of this section is contrary to
public policy, and is void and unenforceable.