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