BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 418


                                                                    Page  1





          Date of Hearing:  March 24, 2015


                           ASSEMBLY COMMITTEE ON JUDICIARY


                                  Mark Stone, Chair


          AB 418  
          (Chiu) - As Introduced February 19, 2015


                              As Proposed to be Amended


          SUBJECT:  TENANCY: TERMINATION: VICTIMS OF VIOLENT CRIME


          KEY ISSUES:  


          1)should existing law, set to expire on january 1, 2016, that  
            has successfully helped SURVIVORs of domestic violence, human  
            trafficking, and other forms of abuse escape their abusers by  
            permitting them to terminate a residential lease, instead be  
            extended indefinitely without a sunset date?


          2)IN ORDER TO HELP SURVIVORS OF SUCH ABUSE FIND REPLACEMENT  
            HOUSING THEY CAN AFFORD, should THE MAXIMUM AMOUNT OF RENT  
            THAT HE OR SHE IS LIABLE FOR AFTER GIVING NOTICE TO TERMINATE  
            THE TENANCY BE DECREASED FROM 30 DAYS OF RENT TO 14 DAYS OF  
            RENT?


                                      SYNOPSIS










                                                                     AB 418


                                                                    Page  2





          Current law, Civil Code Section 1946.7, allows a survivor of  
          domestic violence, sexual assault, elder/dependent adult abuse,  
          human trafficking, or stalking to terminate a residential lease  
          early if he or she is able to provide the landlord with  
          documentation from a health professional, domestic violence  
          counselor, sexual assault counselor, or human trafficking  
          caseworker attesting that he or she is a survivor of abuse or  
          violence.  Among other things, current law also prohibits a  
          landlord from disclosing any information provided by a tenant  
          regarding his or her notice to terminate tenancy unless required  
          by law or court order or when the tenant has consented in  
          writing to the disclosure.  Section 1946.7 is due to sunset on  
          January 1, 2016 without further Legislative action.  This bill,  
          co-sponsored by the California Partnership to End Domestic  
          Violence, Western Center on Law and Poverty, and the National  
          Housing Law Project, seeks to remove the sunset date on this  
          section of law and extend these provisions indefinitely.   
          According to proponents, the early lease termination law has  
          successfully helped survivors of abuse and violence get away  
          from their abusers without evidence that the documentation rules  
          have been unfairly exploited or misused.  The bill also would  
          lower, from 30 days to 14 days, the number of days that the  
          survivor of abuse would be liable for rent after giving notice  
          to terminate the tenancy under these provisions.  Supporters  
          contend that this reduction in rent liability would greatly help  
          survivors afford replacement housing they desperately need to  
          avoid homelessness, which is too frequently the outcome of  
          getting away from their abusers.  Proposed amendments by the  
          author remove other provisions in the current version of the  
          bill that would require the accelerated return of the survivor's  
          security deposit and specify the procedure for doing so.  As  
          proposed to be amended, the bill instead simply clarifies that  
          existing security deposit law, Civil Code Section 1950.5, shall  
          apply when a survivor of abuse terminates a tenancy under these  
          provisions, and that the landlord may not consider such a  
          termination to constitute a default in payment of rent nor  
          deduct from the survivor's security deposit by reason of such  
          termination.  With these proposed amendments, the California  
          Apartment Association now joins an array of tenant advocates and  








                                                                     AB 418


                                                                    Page  3





          advocates for victims of domestic violence and human trafficking  
          in support of the bill.  There is no known opposition to the  
          bill.


          SUMMARY:  Extends indefinitely existing law that, until January  
          1, 2016, permits survivors of domestic violence, human  
          trafficking, and other crimes to terminate a residential lease  
          in order to escape their abusers.  Specifically, this bill:   


          1)Removes the sunset date of January 1, 2016 for provisions that  
            allow a survivor of domestic violence, sexual assault,  
            stalking, human trafficking, or abuse of an elder or dependent  
            adult to terminate a residential tenancy before the end of the  
            term, substantiated by documentation of abuse or violence, as  
            specified, from a health professional, counselor, or other  
            qualified third party.


          2)Decreases the survivor's maximum rent liability following a  
            notice to terminate from 30 days to 14 days.


          3)Clarifies that a tenancy terminated under these provisions  
            shall not constitute a default in the payment of rent by the  
            tenant and no deduction may be made from the tenant's security  
            deposit to compensate a landlord for default in the payment of  
            rent by reason of a termination under this section.  Further  
            clarifies that existing law on security deposits shall  
            otherwise apply when a tenancy is terminated under this bill.


          EXISTING LAW:   


          1)Provides that if a tenant or lessee of real property breaches  
            the lease and abandons the property before the end of the  
            term, the landlord may deem the lease terminated and seek  








                                                                     AB 418


                                                                    Page  4





            damages, or continue to perform under the lease and seek rent  
            as it becomes due.  (Civil Code Sec. 1951.2.)


          2)Allows a tenant to notify the landlord that he or she or a  
            household member was a victim of domestic violence, sexual  
            assault, stalking, human trafficking, or abuse of an elder or  
            dependent adult, and that the tenant intends to terminate the  
            tenancy.  (Civil Code Section 1946.7(a).)


          3)Requires that the above notice shall be in writing and  
            attached to one of the following documents: 


             a)   A copy of a temporary restraining order or emergency  
               protective order that was lawfully issued and that protects  
               the tenant or household member from further domestic  
               violence, sexual assault, stalking, human trafficking, or  
               abuse of an elder or dependent adult. 


             b)   A copy of a written report by a peace officer employed  
               by a state or local law enforcement agency stating that the  
               tenant or household member is a victim of domestic  
               violence, sexual assault, stalking, human trafficking, or  
               abuse of an elder or dependent adult.  


             c)   Documentation from a qualified third party, based on  
               information received while acting in his or her  
               professional capacity, indicating that the tenant or  
               household member is seeking assistance for physical or  
               mental injuries or abuse as specified.  (Civil Code Section  
               1946.7(b).) 


          4)Requires that the notice to terminate a tenancy, as described  
            above, must be given within 180 days of that date that an  








                                                                     AB 418


                                                                    Page  5





            order was issued or the peace officer report was made.   
            Specifies that if the notice is provided as required, the  
            tenant shall be liable for payment of rent for the 30-day  
            period following notice and shall thereafter be released from  
            any rent payment obligation under the rental agreement without  
            penalty.  (Civil Code Section 1946.7 (c)-(d).)


          5)Provides that, if within the 30 days following the giving of  
            the notice to terminate, 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, and that  
            existing law governing the security deposit shall apply.   
            (Civil Code Section 1946.7(e).)


          6)Establishes a sunset date of January 1, 2016 that provisions  
            2) through 5) above will be repealed unless a later statute  
            enacted before that date deletes or extends that sunset date.   
            (Civil Code Section 1946.7(i).)


          7)Prohibits a landlord from terminating or failing to renew a  
            tenancy based upon an act or acts of domestic violence, sexual  
            assault, stalking, human trafficking, or abuse of an elder or  
            dependent adult against a tenant or a tenant's household  
            member, except as provided.  (Code of Civil Procedure Section  
            1161.3.)


          FISCAL EFFECT:  As currently in print this bill is keyed  
          non-fiscal.


          COMMENTS:  This bill, co-sponsored by the California Partnership  
          to End Domestic Violence, Western Center on Law and Poverty, and  
          the National Housing Law Project, seeks to remove the sunset  
          date for existing California law that, until January 1, 2016,  
          gives survivors of human trafficking, domestic violence, sexual  








                                                                     AB 418


                                                                    Page  6





          assault, stalking, and elder or dependent adult abuse the  
          ability to terminate a residential lease with documentation of  
          abuse or violence.  The bill also would lower, from 30 days to  
          14 days, the number of days that the survivor would be liable  
          for rent after giving notice to terminate the tenancy under  
          these provisions.


          According to the Western Center on Law and Poverty, a co-sponsor  
          of the bill:


               Domestic violence and other abusive relationships lead  
               to homelessness. Over 80% of survivors entering  
               shelters identified "finding housing I can afford" as  
               a need, second only to "safety for myself" (85%).  
               Between 22 and 57% of all homeless women report that  
               domestic violence was the immediate cause of their  
               homelessness. The Centers for Disease Control's  
               National Intimate Partner and Sexual Violence Survey  
               found that, among both men & women, 2.4% will require  
               housing services as a result of DV at some point in  
               their lives. Over half of the women needing housing  
               services received none at all.





               AB 418 would address these problems in two ways.  
               First, it would remove the sunset date of December 31,  
               2015 for the ability for a survivor to terminate a  
               residential tenancy early, based upon giving a  
               statement to a healthcare and other enumerated  
               professionals. These provisions would become  
               permanent.  Second, it would decrease the maximum rent  
               liability following a notice to terminate from 30 days  
               to 14 days. This change will make the ability to  
               terminate far more effective in allowing victims to  








                                                                     AB 418


                                                                    Page  7





               escape abusive relationships. To the extent that  
               victims will have the financial resources to move  
               rather than stay, the change may be of benefit to  
               landlords and neighbors who might otherwise be in  
               proximity to further abusive acts.


          Background of previous legislation establishing protections for  
          victims of abuse.  In recent years, the Legislature has  
          recognized the importance of enabling victims of domestic  
          violence and other kinds of abuse to terminate a residential  
          lease without liability in order to escape their abusers.  This  
          bill is the latest in a number of previous successful efforts to  
          further this important policy goal.  In 2008, the Legislature  
          passed AB 2052 (Lieu), Ch. 440, Stats. 2008, which for the first  
          time allowed a tenant to terminate his or her lease within 60  
          days of the issuance of a temporary restraining order, emergency  
          protective order, or written report by a peace officer alleging  
          that he or she is a victim of domestic violence or stalking.   
          Absent that protection, victims who relocated may still have  
          been liable if the landlord did not agree to release the victim  
          from his or her obligations under the lease.  Subsequently, AB  
          588 (V. Manuel Pérez), Ch. 76, Stats. 2011, lengthened the above  
          time period from 60 days to 180 days.


          In 2010, the Legislature passed SB 782 (Yee), Ch. 626, Stats.  
          2010, which prohibited landlords from terminating or failing to  
          renew a tenancy based upon a documented act or acts against a  
          tenant or household member who is a victim of domestic violence,  
          sexual assault, or stalking.  SB 1403 (Yee), Ch. 516, Stats.  
          2012, further extended these protections to victims of elder or  
          dependent adult abuse, and included protective orders among the  
          appropriate supporting documentation allowed when a victim of  
          abuse seeks to terminate a lease before the end of its term.  In  
          2013, SB 612 (Leno), Ch. 130, Stats. 2013, extended these  
          protections to victims of human trafficking and authorized  
          documentation by a qualified third party professional to  
          establish that the tenant was a victim of abuse for the purpose  








                                                                     AB 418


                                                                    Page  8





          of terminating the tenancy.  SB 612 also established  
          confidentiality protections for the documentation, and  
          established a sunset date of January 1, 2016 for all of these  
          provisions.


          Summary of existing procedures for termination of tenancy set to  
          expire at the end of this year.  To help survivors of abuse get  
          away from their abusers, existing law permits tenants who are  
          victims of domestic violence, human trafficking, sexual assault,  
          stalking, or elder or dependent adult abuse to terminate their  
          rental or lease agreement before the end of its term.   
          Specifically, the tenant must provide written notice to the  
          landlord that he or she or a household member was a victim of  
          one of these types of abuse as well as documentation of the  
          abuse, in the form of a temporary restraining order, protective  
          order, emergency protective order, elder or dependent adult  
          abuse order, written report by a law enforcement agency or  
          officer, or documentation from a qualified third party, based on  
          information received while the qualified third party was acting  
          in his or her professional capacity.


          Existing law provides for a standard form document that may be  
          used for this purpose, or modified as long as it contains  
          substantially the same information.  This documentation must  
          include a signed statement by the tenant seeking to terminate  
          the tenancy attesting that he or she has been a victim of abuse  
          or violence, as specified, and identifying additional  
          information about the most recent incident and the person or  
          persons responsible for the acts of abuse or violence.  The  
          documentation also must include a signed statement by the  
          qualified third party identifying his or her qualified  
          profession, as specified; licensing information, if applicable;  
          and attesting that the tenant stated to the third party that the  
          tenant or a member of his or her household was a victim of one  
          of the specified forms of abuse or violence.  Under existing  
          law, qualified third parties include domestic violence  
          counselors, sexual assault counselors, human trafficking  








                                                                     AB 418


                                                                    Page  9





          caseworkers, and various health practitioners, such as  
          physicians, psychiatrists, and nurses.


          Existing law requires the notice to terminate the rental  
          agreement to be given within 180 days of the date the court  
          order, police report, or documentation from a qualified third  
          party was issued.  If the tenant provides documentation as  
          required and gives the proper notice of termination within the  
          required 180 days, he or she must pay rent only for the 30 days  
          following the date notice of termination to the landlord was  
          given.  After that, the tenant is released from the obligation  
          to pay rent and may vacate the residence without further  
          liability.


          Existing law also prohibits a landlord from disclosing any  
          information provided by a tenant regarding his or her notice to  
          terminate tenancy unless required by law or court order, or the  
          tenant consents in writing to the disclosure.  Confidentiality  
          is necessary because documentation of abuse can include  
          personal, sensitive information and may jeopardize the safety of  
          victims if disclosed to the wrong person (for example, the  
          current address of a relocated human trafficking victim if not  
          shielded from the trafficker or the trafficker's associates).


          The provisions described above are all set to expire on January  
          1, 2016.  The purpose of the sunset date was to allow the  
          Legislature to review the law in order to ascertain whether  
          there has been any misuse of qualified third-party documentation  
          by ineligible tenants or whether other unforeseen problems have  
          arisen.  According to the author and sponsor, there are no  
          reported issues of alleged fraud pertaining to the third party  
          documentation and they are not aware of any unforeseen problems  
          that have arisen since SB 612 was enacted in 2013.  Proponents  
          note that the federal Violence Against Women Act (VAWA) has  
          allowed the same third party documentation option for over a  
          decade, and they contend that landlords and housing authorities  








                                                                     AB 418


                                                                    Page  10





          have generally not had a problem with this form of verification  
          under VAWA, and in fact, some landlords actually request it as  
          an additional way to document or corroborate instances of abuse.  
           To date, Committee staff has not received any reports of fraud  
          or misuse of the documentation, from landlord associations or  
          any other stakeholders.  Accordingly, this bill would remove the  
          sunset date from current law in order to establish these  
          provisions indefinitely.


          After a notice to terminate is given, this bill lowers the  
          liability for rent from 30 days to 14 days.  As previously  
          described, existing law requires a survivor of abuse to pay rent  
          for 30 days after giving notice of termination to the landlord,  
          as long as the tenant provides required documentation and gives  
          the proper notice of termination within the prescribed statutory  
          period of 180 days.  This bill would decrease the period of  
          time, from 30 days to 14 days, that the survivor of abuse is  
          liable for the rent after giving notice to terminate the tenancy  
          under these provisions.  


          According to the author, reducing additional rent obligations  
          will help more survivors find safe and decent replacement  
          housing - something that is crucial to combatting homelessness  
          among survivors.  According to data from the National Sexual  
          Resource Violence Center, 52 percent of all sexual assaults  
          occur where the survivors live, and nearly 80 percent of sexual  
          assault survivors living in public housing wanted to relocate  
          because the perpetrator was nearby, but could not due to a lack  
          of funds and housing options.  In a 2006 report by the U.S.  
          Conference of Mayors, 44 percent of the cities surveyed  
          identified domestic violence as the primary cause of  
          homelessness.


          Under current law, victims of abuse renting under a  
          month-to-month lease may already relocate from a property within  
          a 30-day period without further liability simply by giving  








                                                                     AB 418


                                                                    Page  11





          notice and failing to renew for the next month.  Therefore the  
          current 30-day rent liability period primarily benefits those  
          victims who have obligations under a long-term lease, rather  
          than under a month-to-month lease.  It should be noted that by  
          establishing a shorter 14-day period, this bill would  
          potentially benefit all victims of abuse under a rental  
          agreement or lease, whether it be month-to-month or for a longer  
          term.


          Author's amendments regarding return of security deposits.  As  
          currently in print, the bill would require an accelerated  
          process for the return of a survivor's security deposit upon  
          termination of the lease or rental agreement.  Discussions with  
          both landlord and tenant advocates identified a number of  
          complex logistical issues associated with return of the deposit  
          when, for example, a single deposit is made jointly for all the  
          occupants of the household, but only some portion of the deposit  
          is required to be returned to the vacating survivor of abuse  
          because the other occupants intend to continue to rent the  
          property under the existing lease.  


          The author now proposes to amend the bill to remove all  
          provisions related to the accelerated return of the security  
          deposit.  As proposed to be amended, the bill instead simply  
          clarifies that existing security deposit law, Civil Code Section  
          1950.5, applies when a survivor of abuse terminates a tenancy  
          under these provisions, and that the landlord may not consider  
          such a termination to constitute a default in payment of rent,  
          nor deduct from the survivor's security deposit by reason of a  
          termination of tenancy under these provisions.  With these  
          proposed amendments, the California Apartment Association now  
          supports the bill and there is no known opposition to the bill.


          ARGUMENTS IN SUPPORT:  The bill enjoys support from a wide range  
          of groups, including tenant advocates and advocates for victims  
          of domestic violence and human trafficking, among others.  For  








                                                                     AB 418


                                                                    Page  12





          example, Safe Alternatives to Violent Environments (SAVE) writes  
          in support:


               In 2005, the California Attorney General's Task Force  
               on Criminal Justice Response to Domestic Violence  
               reported that there were significant burdens placed on  
               victims seeking family court restraining orders.  
               Furthermore, immigrant survivors are often reluctant  
               to contact the authorities due to their cultural  
               aversion to involving outsiders in family matters or  
               prior negative experiences with the police and the  
               justice systems in their native countries.  
               Additionally, limited English proficient individuals  
               continue to face language barriers when interacting  
               with the court system. Removing the sunset would  
               ensure that survivors continue to have access to lease  
               terminations without having to turn to the courts or  
               the police.


          Other advocates, including Next Door Solutions to Domestic  
          Violence, state that:
                                                            

               Even with the provisions that AB 418 would make  
               permanent, there are barriers to early termination  
               because the survivor must still pay for 30 days of  
               further rent after he or she leaves . . .  This time  
               period deprives survivors of funds they desperately  
               need to secure new rental housing.  Reducing  
               additional rent obligations will help more survivors  
               find replacement housing-crucial to combating the  
               homelessness survivors often experience.


          The California Apartment Association (CAA) also supports the  
          bill, as proposed to be amended.  CAA states: "(Our) members  
          don't believe that a landlord should hold victims liable for  








                                                                     AB 418


                                                                    Page  13





          extended rent when they are fleeing a dangerous domestic  
          situation.  In many cases, a move from the property is the best  
          decision for the victim and the family as well as for other  
          tenants at the property."


          REGISTERED SUPPORT / OPPOSITION:




          Support


          California Partnership to End Domestic Violence (co-sponsor)


          Western Center on Law and Poverty (co-sponsor)
          National Housing Law Project (co-sponsor)


          AFSCME


          California Apartment Association


          California Catholic Conference


          California Communities United Institute


          Casa de Esparanza


          Interface Children and Family Services










                                                                     AB 418


                                                                    Page  14





          National Council of Jewish Women California State Policy  
          Advocates


          Next Door Solutions to Domestic Violence


          Rainbow Services


          Strong Hearted Native Women's Coalition


          Zella Knight, Housing Commissioner, County of Los Angeles  
          Housing Authority


          Over 15 individuals




          Opposition


          None on file




          Analysis Prepared by:Anthony Lew / JUD. / (916) 319-2334
















                                                                     AB 418


                                                                    Page  15