California Legislature—2015–16 Regular Session

Assembly Bill No. 418

Introduced by Assembly Member Chiu

February 19, 2015

An act to amend Section 1950.5 of, and to amend and repeal Section 1946.7 of, the Civil Code, relating to tenancy.

LEGISLATIVE COUNSEL’S DIGEST

AB 418, as introduced, Chiu. Tenancy: termination: victims of violent crime.

(1) Existing law, until January 1, 2016, authorizes a tenant to notify the landlord in writing that he or she or a household member, as defined, was a victim of an act of domestic violence or sexual assault and that the tenant intends to terminate the tenancy. Existing law requires that the tenant attach to the notice to terminate a tenancy a copy of a temporary restraining order or protective order that protects the tenant or household member from further domestic violence or sexual assault or to attach a report by a peace officer stating that the tenant or household member has filed a report alleging he or she or the household member is a victim of domestic violence or sexual assault.

This bill would reduce the time limit for a tenant to give a notice of intent to vacate to the landlord under these provisions from 30 days to 14 days. The bill would reduce the time that the landlord has to return the tenant’s security deposit from 21 days to 14 days and would eliminate certain requirements regarding postvacancy inspections by the landlord when the tenant vacates the premises under these provisions. This bill would extend these provisions indefinitely.

(2) Existing law specifies the conditions required for a landlord to retain some or all of a tenant’s security deposit, based on specified criteria and authorizes the tenant to request an inspection of the premises by the landlord and to be present during the inspection used to assess whether some or all of the security deposit will be retained.

This bill would make these inspection provisions inapplicable when the tenancy is terminated by a victim of crime under the above provisions and would make nonsubstantive, organizational changes to these security deposit provisions.

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 1946.7 of the Civil Code, as amended
by Section 1 of Chapter 130 of the Statutes of 2013, is amended
to read:

1946.7.  

(a) A tenant may notify the landlord that he or she or
a household member was a victim of an act that constitutes an act
of domestic violence as defined in Section 6211 of the Family
Code, sexual assault as defined in Section 261, 261.5, 262, 286,
288a, or 289 of the Penal Code, stalking as defined in Section
1708.7, human trafficking as defined in Section 236.1 of the Penal
Code, or abuse of an elder or a dependent adult as defined in
Section 15610.07 of the Welfare and Institutions Code, and that
the tenant intends to terminate the tenancy.

(b) A notice to terminate a tenancy under this section shall be
in writing, with one of the following attached to the notice:

(1) A copy of a temporary restraining order, emergency
protective order, or protective order lawfully issued pursuant to
Part 3 (commencing with Section 6240) or Part 4 (commencing
with Section 6300) of Division 10 of the Family Code, Section
136.2 of the Penal Code, Section 527.6 of the Code of Civil
Procedure, or Section 213.5 or 15657.03 of the Welfare and
Institutions Code that protects the tenant or household member
from further domestic violence, sexual assault, stalking, human
trafficking, or abuse of an elder or a dependent adult.

(2) A copy of a written report by a peace officer employed by
a state or local law enforcement agency acting in his or her official
capacity stating that the tenant or household member has filed a
report alleging that he or she or the household member is a victim
of domestic violence, sexual assault, stalking, human trafficking,
or abuse of an elder or a dependent adult.

(3) (A) Documentation from a qualified third party based on
information received by that third party while acting in his or her
professional capacity to indicate that the tenant or household
member is seeking assistance for physical or mental injuries or
abuse resulting from an act of domestic violence, sexual assault,
stalking, human trafficking, elder abuse, or dependent adult abuse.

(B) The documentation shall contain, in substantially the same
form, the following:

 

Tenant Statement and Qualified Third Party Statement under Civil Code Section 1946.7
Part I. Statement By Tenant
I, [insert name of tenant], state as follows:
I, or a member of my household, have been a victim of:
[insert one or more of the following: domestic violence, sexual assault, stalking, human trafficking, elder abuse, or dependent adult abuse.]
The most recent incident(s) happened on or about:
[insert date or dates.]
The incident(s) was/were committed by the following person(s), with these physical description(s), if known and safe to provide:
[if known and safe to provide, insert name(s) and physical description(s).]
(signature of tenant)       (date)
Part II. Qualified Third Party Statement
I, [insert name of qualified third party], state as follows:
My business address and phone number are:
[insert business address and phone number.]
Check and complete one of the following:
____I meet the requirements for a sexual assault counselor provided in Section 1035.2 of the Evidence Code and I am either engaged in an office, hospital, institution, or center commonly known as a rape crisis center described in that section or employed by an organization providing the programs specified in Section 13835.2 of the Penal Code.
____I meet the requirements for a domestic violence counselor provided in Section 1037.1 of the Evidence Code and I am employed, whether financially compensated or not, by a domestic violence victim service organization, as defined in that section.
____I meet the requirements for a human trafficking caseworker provided in Section 1038.2 of the Evidence Code and I am employed, whether financially compensated or not, by an organization that provides programs specified in Section 18294 of the Welfare and Institutions Code or in Section 13835.2 of the Penal Code.
____I am licensed by the State of California as a:
[insert one of the following: physician and surgeon, osteopathic physician and surgeon, registered nurse, psychiatrist, psychologist, licensed clinical social worker, licensed marriage and family therapist, or licensed professional clinical counselor.] and I am licensed by, and my license number is:
[insert name of state licensing entity and license number.]
The person who signed the Statement By Tenant above stated to me that he or she, or a member of his or her household, is a victim of:
[insert one or more of the following: domestic violence, sexual assault, stalking, human trafficking, elder abuse, or dependent adult abuse.]
The person further stated to me the incident(s) occurred on or about the date(s) stated above.
I understand that the person who made the Statement By Tenant may use this document as a basis for terminating a lease with the person’s landlord.
(signature of qualified third party)  (date)

 

(C) The documentation may be signed by a person who meets
the requirements for a sexual assault counselor, domestic violence
counselor, or a human trafficking caseworker only if the
documentation displays the letterhead of the office, hospital,
institution, center, or organization, as appropriate, that engages or
employs, whether financially compensated or not, this counselor
or caseworker.

(c) The notice to terminate the tenancy shall be given within
180 days of the date that any order described in paragraph (1) of
subdivision (b) was issued, within 180 days of the date that any
written report described in paragraph (2) of subdivision (b) was
made, or within the time period described in Section 1946.

(d) If notice to terminate the tenancy is provided to the landlord
under this section, the tenant shall be responsible for payment of
rent for begin delete 30 end delete begin insert no more than 14 calendar end insert days following the giving
of the notice, or begin delete within the end delete begin insert for any shorter end insert appropriate period as
described in Section begin delete 1946, and thereafter end delete begin insert 1946 or the rental
agreement. The tenant end insert shall be released from any rent payment
obligation under the rental agreement without penalty. begin delete Existing
law governing the security deposit shall apply. end delete begin insert If the premises are
relet to another party prior to the end of the obligation to pay rent,
the rent owed under this subdivision shall be prorated. end insert

begin delete

(e) If within the 30 days following the giving of the notice under
this section the tenant quits the premises and the premises are
rented to another party, the rent due on the premises for that 30-day
period shall be prorated. Existing law governing the security
deposit shall apply.

end delete begin insert

(e) Existing law governing the security deposit shall apply,
subject to the following:

end insert begin insert

(1) Notwithstanding the 21-day time limit provided in
subdivision (g) of Section 1950.5, the statement and return of the
security as provided in that subdivision shall be furnished and
returned not later than 14 calendar days after the tenant vacated
the premises pursuant to a notice given under this section.

end insert begin insert

(2) Subdivision (f) of Section 1950.5 shall not apply if a tenant
gives notice under this section.

end insert

(f) Nothing in this section relieves a tenant, other than the tenant
who is, or who has a household member who is, a victim of
domestic violence, sexual assault, stalking, human trafficking, or
abuse of an elder or a dependent adult and members of that tenant’s
household, from their obligations under the rental agreement.

(g) (1) “Household member,” as used in this section, means a
member of the tenant’s family who lives in the same household
as the tenant.

(2) “Qualified third party,” as used in this section, means a
health practitioner, domestic violence counselor, as defined in
Section 1037.1 of the Evidence Code, a sexual assault counselor,
as defined in Section 1035.2 of the Evidence Code, or a human
trafficking caseworker, as defined in Section 1038.2 of the
Evidence Code.

(3) “Health practitioner,” as used in this section, means a
physician and surgeon, osteopathic physician and surgeon,
psychiatrist, psychologist, registered nurse, licensed clinical social
worker, licensed marriage and family therapist, or licensed
professional clinical counselor.

(h) (1) A landlord shall not disclose any information provided
by a tenant under this section to a third party unless the disclosure
satisfies any one of the following:

(A) The tenant consents in writing to the disclosure.

(B) The disclosure is required by law or order of the court.

(2) A landlord’s communication to a qualified third party who
provides documentation under paragraph (3) of subdivision (b) to
verify the contents of that documentation is not disclosure for
purposes of this subdivision.

begin delete

(i) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.

end delete

SEC. 2.  

Section 1946.7 of the Civil Code, as added by Section
2 of Chapter 130 of the Statutes of 2013, is repealed.

begin delete

1946.7.  

(a) A tenant may notify the landlord that he or she or
a household member was a victim of an act that constitutes an act
of domestic violence as defined in Section 6211 of the Family
Code, sexual assault as defined in Section 261, 261.5, 262, 286,
288a, or 289 of the Penal Code, stalking as defined in Section
1708.7, human trafficking as defined in Section 236.1 of the Penal
Code, or abuse of an elder or a dependent adult as defined in
Section 15610.07 of the Welfare and Institutions Code, and that
the tenant intends to terminate the tenancy.

(b) A notice to terminate a tenancy under this section shall be
in writing, with one of the following attached to the notice:

(1) A copy of a temporary restraining order, emergency
protective order, or protective order lawfully issued pursuant to
Part 3 (commencing with Section 6240) or Part 4 (commencing
with Section 6300) of Division 10 of the Family Code, Section
136.2 of the Penal Code, Section 527.6 of the Code of Civil
Procedure, or Section 213.5 or 15657.03 of the Welfare and
Institutions Code that protects the tenant or household member
from further domestic violence, sexual assault, stalking, human
trafficking, or abuse of an elder or a dependent adult.

(2) A copy of a written report by a peace officer employed by
a state or local law enforcement agency acting in his or her official
capacity stating that the tenant or household member has filed a
report alleging that he or she or the household member is a victim
of domestic violence, sexual assault, stalking, human trafficking,
or abuse of an elder or a dependent adult.

(c) The notice to terminate the tenancy shall be given within
180 days of the date that any order described in paragraph (1) of
subdivision (b) was issued, within 180 days of the date that any
written report described in paragraph (2) of subdivision (b) was
made, or within the time period described in Section 1946.

(d) If notice to terminate the tenancy is provided to the landlord
under this section, the tenant shall be responsible for payment of
rent for 30 days following the giving of the notice, or within the
appropriate period as described in Section 1946, and thereafter
shall be released from any rent payment obligation under the rental
agreement without penalty. Existing law governing the security
deposit shall apply.

(e) If within the 30 days following the giving of the notice under
this section the tenant quits the premises and the premises are
rented to another party, the rent due on the premises for that 30-day
period shall be prorated. Existing law governing the security
deposit shall apply.

(f) Nothing in this section relieves a tenant, other than the tenant
who is, or who has a household member who is, a victim of
domestic violence, sexual assault, stalking, human trafficking, or
abuse of an elder or a dependent adult and members of that tenant’s
household, from their obligations under the rental agreement.

(g) “Household member” as used in this section means a member
of the tenant’s family who lives in the same household as the
tenant.

(h) A landlord shall not disclose any information provided by
a tenant under this section to a third party unless the disclosure
satisfies any one of the following:

(1) The tenant consents in writing to the disclosure.

(2) The disclosure is required by law or order of the court.

(i) This section shall be operative January 1, 2016.

end delete

SEC. 3.  

Section 1950.5 of the Civil Code is amended to read:

1950.5.  

(a) This section applies to security for a rental
agreement for residential property that is used as the dwelling of
the tenant.

(b) As used in this section, “security” means any payment, fee,
deposit, or charge, including, but not limited to, any payment, fee,
deposit, or charge, except as provided in Section 1950.6, that is
imposed at the beginning of the tenancy to be used to reimburse
the landlord for costs associated with processing a new tenant or
that is imposed as an advance payment of rent, used or to be used
for any purpose, including, but not limited to, any of the following:

(1) The compensation of a landlord for a tenant’s default in the
payment of rent.

(2) The repair of damages to the premises, exclusive of ordinary
wear and tear, caused by the tenant or by a guest or licensee of the
tenant.

(3) The cleaning of the premises upon termination of the tenancy
necessary to return the unit to the same level of cleanliness it was
in at the inception of the tenancy. The amendments to this
paragraph enacted by the act adding this sentence shall apply only
to tenancies for which the tenant’s right to occupy begins after
January 1, 2003.

(4) To remedy future defaults by the tenant in any obligation
under the rental agreement to restore, replace, or return personal
property or appurtenances, exclusive of ordinary wear and tear, if
the security deposit is authorized to be applied thereto by the rental
agreement.

(c) A landlord may not demand or receive security, however
denominated, in an amount or value in excess of an amount equal
to two months’ rent, in the case of unfurnished residential property,
and an amount equal to three months’ rent, in the case of furnished
residential property, in addition to any rent for the first month paid
on or before initial occupancy.

This subdivision does not prohibit an advance payment of not
less than six months’ rent if the term of the lease is six months or
longer.

This subdivision does not preclude a landlord and a tenant from
entering into a mutual agreement for the landlord, at the request
of the tenant and for a specified fee or charge, to make structural,
decorative, furnishing, or other similar alterations, if the alterations
are other than cleaning or repairing for which the landlord may
charge the previous tenant as provided by subdivision (e).

(d) Any security shall be held by the landlord for the tenant who
is party to the lease or agreement. The claim of a tenant to the
security shall be prior to the claim of any creditor of the landlord.

(e) The landlord may claim of the security only those amounts
as are reasonably necessary for the purposes specified in
subdivision (b). The landlord may not assert a claim against the
tenant or the security for damages to the premises or any defective
conditions that preexisted the tenancy, for ordinary wear and tear
or the effects thereof, whether the wear and tear preexisted the
tenancy or occurred during the tenancy, or for the cumulative
effects of ordinary wear and tear occurring during any one or more
tenancies.

(f) (1) Within a reasonable time after notification of either
party’s intention to terminate the tenancy, or before the end of the
lease term, the landlord shall notify the tenant in writing of his or
her option to request an initial inspection and of his or her right to
be present at the inspection. The requirements of this subdivision
do not apply when the tenancy is terminated pursuant to subdivision
(2), (3), or (4) of Section 1161 of the Code of Civil Procedure begin insert or
Section 1946.7 of this code end insert . At a reasonable time, but no earlier
than two weeks before the termination or the end of lease date, the
landlord, or an agent of the landlord, shall, upon the request of the
tenant, make an initial inspection of the premises prior to any final
inspection the landlord makes after the tenant has vacated the
premises. The purpose of the initial inspection shall be to allow
the tenant an opportunity to remedy identified deficiencies, in a
manner consistent with the rights and obligations of the parties
under the rental agreement, in order to avoid deductions from the
security. If a tenant chooses not to request an initial inspection,
the duties of the landlord under this subdivision are discharged. If
an inspection is requested, the parties shall attempt to schedule the
inspection at a mutually acceptable date and time. The landlord
shall give at least 48 hours’ prior written notice of the date and
time of the inspection if either a mutual time is agreed upon, or if
a mutually agreed time cannot be scheduled but the tenant still
wishes an inspection. The tenant and landlord may agree to forgo
the 48-hour prior written notice by both signing a written waiver.
The landlord shall proceed with the inspection whether the tenant
is present or not, unless the tenant previously withdrew his or her
request for the inspection. Written notice by the landlord shall
contain, in substantially the same form, the following:

“State law permits former tenants to reclaim abandoned personal
property left at the former address of the tenant, subject to certain
conditions. You may or may not be able to reclaim property without
incurring additional costs, depending on the cost of storing the
property and the length of time before it is reclaimed. In general,
these costs will be lower the sooner you contact your former
landlord after being notified that property belonging to you was
left behind after you moved out.”

(2) Based on the inspection, the landlord shall give the tenant
an itemized statement specifying repairs or cleanings that are
proposed to be the basis of any deductions from the security the
landlord intends to make pursuant to paragraphs (1) to (4),
inclusive, of subdivision (b). This statement shall also include the
texts of paragraphs (1) to (4), inclusive, of subdivision (b). The
statement shall be given to the tenant, if the tenant is present for
the inspection, or shall be left inside the premises.

(3) The tenant shall have the opportunity during the period
following the initial inspection until termination of the tenancy to
remedy identified deficiencies, in a manner consistent with the
rights and obligations of the parties under the rental agreement, in
order to avoid deductions from the security.

(4) Nothing in this subdivision shall prevent a landlord from
using the security for deductions itemized in the statement provided
for in paragraph (2) that were not cured by the tenant so long as
the deductions are for damages authorized by this section.

(5) Nothing in this subdivision shall prevent a landlord from
using the security for any purpose specified in paragraphs (1) to
(4), inclusive, of subdivision (b) that occurs between completion
of the initial inspection and termination of the tenancy or was not
identified during the initial inspection due to the presence of a
tenant’s possessions.

begin delete

(g) (1) No later than 21 calendar days after the tenant has
vacated the premises, but not earlier than the time that either the
landlord or the tenant provides a notice to terminate the tenancy
under Section 1946 or 1946.1, Section 1161 of the Code of Civil
Procedure, or not earlier than 60 calendar days prior to the
expiration of a fixed-term lease, the landlord shall furnish the
tenant, by personal delivery or by first-class mail, postage prepaid,
a copy of an itemized statement indicating the basis for, and the
amount of, any security received and the disposition of the security,
and shall return any remaining portion of the security to the tenant.
After either the landlord or the tenant provides notice to terminate
the tenancy, the landlord and tenant may mutually agree to have
the landlord deposit any remaining portion of the security deposit
electronically to a bank account or other financial institution
designated by the tenant. After either the landlord or the tenant
provides notice to terminate the tenancy, the landlord and the tenant
may also agree to have the landlord provide a copy of the itemized
statement along with the copies required by paragraph (2) to an
email account provided by the tenant.

end delete begin insert

(g) (1) (A) The landlord shall furnish the tenant, by personal
delivery or by first-class mail, postage prepaid, a copy of an
itemized statement indicating the basis for, and the amount of, any
security received and the disposition of the security, and shall
return any remaining portion of the security to the tenant within
both of the following time constraints:

end insert begin insert

(i) No later than 21 calendar days after the tenant has vacated
the premises, or, for a vacancy pursuant to Section 1946.7, not
later than 14 calendar days after the tenant has vacated the
premises.

end insert begin insert

(ii) Not earlier than the time that either the landlord or the
tenant provides a notice to terminate the tenancy under Section
1946 or 1946.1 of this code or Section 1161 of the Code of Civil
Procedure, or not earlier than 60 calendar days prior to the
expiration of a fixed-term lease.

end insert begin insert

(B) After either the landlord or the tenant provides notice to
terminate the tenancy, the landlord and tenant may mutually agree
to do either of the following:

end insert begin insert

(i) Have the landlord deposit any remaining portion of the
security deposit electronically to a bank account or other financial
institution designated by the tenant.

end insert begin insert

(ii) Have the landlord provide a copy of the itemized statement
along with the copies required by paragraph (2) to an email
account provided by the tenant.

end insert

(2) Along with the itemized statement, the landlord shall also
include copies of documents showing charges incurred and
deducted by the landlord to repair or clean the premises, as follows:

(A) If the landlord or landlord’s employee did the work, the
itemized statement shall reasonably describe the work performed.
The itemized statement shall include the time spent and the
reasonable hourly rate charged.

(B) If the landlord or landlord’s employee did not do the work,
the landlord shall provide the tenant a copy of the bill, invoice, or
receipt supplied by the person or entity performing the work. The
itemized statement shall provide the tenant with the name, address,
and telephone number of the person or entity, if the bill, invoice,
or receipt does not include that information.

(C) If a deduction is made for materials or supplies, the landlord
shall provide a copy of the bill, invoice, or receipt. If a particular
material or supply item is purchased by the landlord on an ongoing
basis, the landlord may document the cost of the item by providing
a copy of a bill, invoice, receipt, vendor price list, or other vendor
document that reasonably documents the cost of the item used in
the repair or cleaning of the unit.

(3) If a repair to be done by the landlord or the landlord’s
employee cannot reasonably be completed within 21 calendar days
after the tenant has vacated the premises, or if the documents from
a person or entity providing services, materials, or supplies are not
in the landlord’s possession within 21 calendar days after the tenant
has vacated the premises, the landlord may deduct the amount of
a good faith estimate of the charges that will be incurred and
provide that estimate with the itemized statement. If the reason for
the estimate is because the documents from a person or entity
providing services, materials, or supplies are not in the landlord’s
possession, the itemized statement shall include the name, address,
and telephone number of the person or entity. Within 14 calendar
days of completing the repair or receiving the documentation, the
landlord shall complete the requirements in paragraphs (1) and (2)
in the manner specified.

(4) The landlord need not comply with paragraph (2) or (3) if
either of the following applies:

(A) The deductions for repairs and cleaning together do not
exceed one hundred twenty-five dollars ($125).

(B) The tenant waived the rights specified in paragraphs (2) and
(3). The waiver shall only be effective if it is signed by the tenant
at the same time or after a notice to terminate a tenancy under
Section 1946 or 1946.1 has been given, a notice under Section
1161 of the Code of Civil Procedure has been given, or no earlier
than 60 calendar days prior to the expiration of a fixed-term lease.
The waiver shall substantially include the text of paragraph (2).

(5) Notwithstanding paragraph (4), the landlord shall comply
with paragraphs (2) and (3) when a tenant makes a request for
documentation within 14 calendar days after receiving the itemized
statement specified in paragraph (1). The landlord shall comply
within 14 calendar days after receiving the request from the tenant.

(6) Any mailings to the tenant pursuant to this subdivision shall
be sent to the address provided by the tenant. If the tenant does
not provide an address, mailings pursuant to this subdivision shall
be sent to the unit that has been vacated.

(h) Upon termination of the landlord’s interest in the premises,
whether by sale, assignment, death, appointment of receiver, or
otherwise, the landlord or the landlord’s agent shall, within a
reasonable time, do one of the following acts, either of which shall
relieve the landlord of further liability with respect to the security
held:

(1) Transfer the portion of the security remaining after any
lawful deductions made under subdivision (e) to the landlord’s
successor in interest. The landlord shall thereafter notify the tenant
by personal delivery or by first-class mail, postage prepaid, of the
transfer, of any claims made against the security, of the amount
of the security deposited, and of the names of the successors in
interest, their addresses, and their telephone numbers. If the notice
to the tenant is made by personal delivery, the tenant shall
acknowledge receipt of the notice and sign his or her name on the
landlord’s copy of the notice.

(2) Return the portion of the security remaining after any lawful
deductions made under subdivision (e) to the tenant, together with
an accounting as provided in subdivision (g).

(i) Prior to the voluntary transfer of a landlord’s interest in the
premises, the landlord shall deliver to the landlord’s successor in
interest a written statement indicating the following:

(1) The security remaining after any lawful deductions are made.

(2) An itemization of any lawful deductions from any security
received.

(3) His or her election under paragraph (1) or (2) of subdivision
(h).

This subdivision does not affect the validity of title to the real
property transferred in violation of this subdivision.

(j) (1) In the event of noncompliance with subdivision (h), the
landlord’s successors in interest shall be jointly and severally liable
with the landlord for repayment of the security, or that portion
thereof to which the tenant is entitled, when and as provided in
subdivisions (e) and (g). A successor in interest of a landlord may
not require the tenant to post any security to replace that amount
not transferred to the tenant or successors in interest as provided
in subdivision (h), unless and until the successor in interest first
makes restitution of the initial security as provided in paragraph
(2) of subdivision (h) or provides the tenant with an accounting as
provided in subdivision (g).

(2) This subdivision does not preclude a successor in interest
from recovering from the tenant compensatory damages that are
in excess of the security received from the landlord previously
paid by the tenant to the landlord.

(3) Notwithstanding this subdivision, if, upon inquiry and
reasonable investigation, a landlord’s successor in interest has a
good faith belief that the lawfully remaining security deposit is
transferred to him or her or returned to the tenant pursuant to
subdivision (h), he or she is not liable for damages as provided in
subdivision (l), or any security not transferred pursuant to
subdivision (h).

(k) Upon receipt of any portion of the security under paragraph
(1) of subdivision (h), the landlord’s successors in interest shall
have all of the rights and obligations of a landlord holding the
security with respect to the security.

(l) The bad faith claim or retention by a landlord or the
landlord’s successors in interest of the security or any portion
thereof in violation of this section, or the bad faith demand of
replacement security in violation of subdivision (j), may subject
the landlord or the landlord’s successors in interest to statutory
damages of up to twice the amount of the security, in addition to
actual damages. The court may award damages for bad faith
whenever the facts warrant that award, regardless of whether the
injured party has specifically requested relief. In an action under
this section, the landlord or the landlord’s successors in interest
shall have the burden of proof as to the reasonableness of the
amounts claimed or the authority pursuant to this section to demand
additional security deposits.

(m) No lease or rental agreement may contain a provision
characterizing any security as “nonrefundable.”

(n) An action under this section may be maintained in small
claims court if the damages claimed, whether actual, statutory, or
both, are within the jurisdictional amount allowed by Section
116.220 or 116.221 of the Code of Civil Procedure.

(o) Proof of the existence of and the amount of a security deposit
may be established by any credible evidence, including, but not
limited to, a canceled check, a receipt, a lease indicating the
requirement of a deposit as well as the amount, prior consistent
statements or actions of the landlord or tenant, or a statement under
penalty of perjury that satisfies the credibility requirements set
forth in Section 780 of the Evidence Code.

(p) The amendments to this section made during the 1985
portion of the 1985-86 Regular Session of the Legislature that are
set forth in subdivision (e) are declaratory of existing law.

(q) The amendments to this section made during the 2003
portion of the 2003-04 Regular Session of the Legislature that are
set forth in paragraph (1) of subdivision (f) are declaratory of
existing law.