BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 418| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 418 Author: Chiu (D), et al. Amended: 4/20/15 in Assembly Vote: 21 SENATE JUDICIARY COMMITTEE: 7-0, 6/16/15 AYES: Jackson, Moorlach, Anderson, Hertzberg, Leno, Monning, Wieckowski ASSEMBLY FLOOR: 78-0, 4/23/15 - See last page for vote SUBJECT: Tenancy: termination: victims of violent crime SOURCE: California Partnership to End Domestic Violence National Housing Law Project Western Center on Law & Poverty DIGEST: This bill extends indefinitely the authorization to use documentation from a qualified third party based on information received by that third party while acting in his or her professional capacity, as specified, to support a notice to terminate a tenancy when the tenant or a household member becomes the victim of domestic violence, sexual assault, stalking, human trafficking, or abuse of an elder or dependent adult. This bill reduces from 30 to 14 days the obligation of a tenant who becomes a victim, as specified, to pay rent after providing the landlord with notice to terminate the tenancy, and states that thereafter the tenant shall be released from any rent payment obligation under their lease or rental agreement without penalty. AB 418 Page 2 ANALYSIS: Existing law: 1)Defines the rights and duties of landlords and tenants, including presumptions regarding the terms of the hiring, the lawful means of terminating a lease or rental agreements, and the remedies available to the respective parties in the event of a breach of a lease or rental agreement. (Civ. Code Sec. 1940 et seq.) 2)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 damages, or continue to perform under the lease and seek rent as it becomes due. (Civ. Code Sec. 1951.2; 250 LLC v. Photopoint Corp. (2005) 131 Cal.App.4th 703.) 3)Allows a tenant to terminate his or her tenancy if the tenant, or a household member, was the victim of domestic violence, sexual assault, stalking, human trafficking, or dependent adult or elder abuse. The notice to terminate a tenancy must be in writing, with one of the following attached: (a) copy of a temporary restraining order, protective order, or emergency protective order, as specified; or (b) copy of a written report by a peace officer, as specified. (Civ. Code Sec. 1946.7(a)-(b).) 4)Provides, until January 1, 2016, that documentation from a qualified third party based on information received by that third party while acting in his or her professional capacity, as specified, may be used to support a notice to terminate a tenancy under the above provision. (Civ. Code Sec. 1946.7(b).) 5)Requires the notice to terminate a tenancy to be given within 180 days of the date that any order was issued, or within 180 AB 418 Page 3 days of the date that any written report was made, or the time period otherwise required for termination of tenancy. (Civ. Code Sec. 1946.7(c).) 6)States that if notice to terminate the tenancy is provided to the landlord under the above provisions, the tenant shall be responsible for payment of rent for 30 days following the giving of the notice, as specified, and thereafter shall be released from any rent payment obligation under the rental agreement without penalty. (Civ. Code Sec. 1946.7(d).) 7)Provides that, if within the 30 days following the giving of the notice under the above provisions 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. (Civ. Code Sec. 1946.7(e).) 8)States that the above provisions shall not relieve 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. (Civ. Code Sec. 1946.7(f).) This bill: 1)Extends indefinitely the authorization to use documentation from a qualified third party based on information received by that third party while acting in his or her professional capacity, as specified, to support a notice to terminate a tenancy under the above provisions. 2)States that if notice to terminate the tenancy is provided to the landlord under the above provisions, the tenant shall be responsible for payment of rent for no more than 14 calendar days following the giving of the notice, as specified, and thereafter shall be released from any rent payment obligation AB 418 Page 4 under the lease or rental agreement without penalty. This bill also states that if the premises are relet to another party prior to the end of the obligation to pay rent, the rent owed under this provision shall be prorated. 3)Makes other technical and conforming changes. Background Victims of domestic violence, sexual assault, human trafficking, elder and dependent adult abuse, and stalking face numerous challenges when seeking to regain control of their lives. Depending on the situation, a victim may need to change his or her telephone number, participate in the Safe at Home Program through the Secretary of State, or even move to create a safe environment for themselves and their family. Victims who rent their homes face additional challenges when attempting to leave a dangerous environment if they are a party to a long-term lease. Absent a voluntary release from their landlord, victims who are forced to relocate in order to find safety - prior to recent changes in state law - could find themselves subject to liability for breaching their leases. In response to concerns regarding the inability of victims to terminate leases without liability, AB 2052 (Lieu, Chapter 440, Statutes of 2008) authorized 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 the tenant, or household member, is a victim of domestic violence or stalking. AB 2052 also provided that a tenant who terminated his or her lease under this provision would be discharged from having to pay rent for any period following 30 days from the date the tenant notified the landlord of their intent to terminate. Subsequently, AB 588 (Perez, Chapter 76, Statutes of 2011) increased the allowable time to terminate upon issuance of a court order or police report from 60 to 180 days. SB 1403 (Yee, Chapter 516, Statutes of 2012) extended these protections to victims of elder or dependent adult abuse and included protective orders among the appropriate supporting documentation allowed when victims seek to terminate leases prematurely. SB 612 (Leno, Chapter 130, AB 418 Page 5 Statutes of 2013) further extended these protections to victims of human trafficking, and, until January 1, 2016, included documentation from a qualified third party indicating that the tenant or household member is seeking assistance for physical or mental injuries resulting from violence or abuse among the allowable types of supporting documentation. This bill extends indefinitely the provision recognizing documentation from a qualified third party as among the allowable types of documentation supporting a tenant's notice to terminate a tenancy. This bill also reduces from 30 to 14 days the period during which a tenant is responsible for payment of rent following the giving of notice to a landlord of a tenant's intent to terminate their tenancy. Comments The author writes: For survivors of domestic violence, sexual assault, elder/dependent abuse, human trafficking or stalking, fleeing a dangerous situation could mean life or death. Unfortunately, many survivors are unable to leave their current situation because of their residential lease agreements and rent obligations. Assembly Bill 418 would remove the sunset date of an existing state law that allows a survivor of domestic violence to terminate a residential lease in order to move to safer housing without any economic ramifications. The bill would also decrease the survivors remaining rent obligation from 30 days to 14 days. If the existing sunset date is not removed, a survivor could only terminate a lease by going to court and obtaining a restraining order or by filing a police report. Many survivors cannot currently take either of those actions. In many cases, survivors who seek restraining orders or contact the police face a real risk of escalating violence by their perpetrators. Furthermore, in 2005, the California Attorney General's Task Force on Criminal Justice Response to Domestic Violence reported that there were significant burdens placed on survivors seeking family court restraining orders. These burdens included completing lengthy forms that were hard to AB 418 Page 6 understand. In addition, 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. Also, limited English proficient individuals continue to face language barriers when interacting with the court system. Removing the sunset would ensure that survivors can continue to terminate leases for safety reasons without having to turn to the courts or the police. Even with the streamlined procedure that AB 418 would make permanent, there are barriers to early termination because the survivor must still pay for 30 days of additional rent after he or she provides notice to the landlord and must wait 21 days after vacating the unit to get back the security deposit. Together, these time periods deprive survivors of funds they desperately need to secure new rental housing. AB 418 would additionally reduce a survivor's rent obligation from 30 days to 14 days. Related/Prior Legislation SB 612 (Leno, Chapter 130, Statutes of 2013) - See Background. SB 1403 (Yee, Chapter 516, Statutes of 2012) - See Background. AB 588 (V. Manuel Pérez, Chapter 76, Statutes of 2011) - See Background. AB 2052 (Lieu, Chapter 440, Statutes of 2008) - See Background. FISCAL EFFECT: Appropriation: No Fiscal Com.:NoLocal: No SUPPORT: (Verified6/16/15) California Partnership to End Domestic Violence (co-source) National Housing Law Project (co-source) Western Center on Law & Poverty (co-source) Advancing Justice - Asian Law Caucus American Civil Liberties Union of California American Federation of State, County and Municipal Employees AB 418 Page 7 California Apartment Association California Catholic Conference of Bishops California Coalition Against Sexual Assault California Communities United Institute California Women's Law Center Casa de Esperanza Catalyst Domestic Violence Services City and County of San Francisco Community Overcoming Relationship Abuse Greater Napa Valley Fair Housing Center Housing Equality Law Project Interface Children & Family Services Junior League of San Francisco Laura's House Law Foundation of Silicon Valley Los Angeles County District Attorney's Office Monarch Services National Association of Social Workers, California Chapter National Council of Jewish Women California Next Door Solutions to Domestic Violence Peace Over Violence; Rainbow Services Safe Alternatives to Violent Environments San Francisco Domestic Violence Consortium Shepherd's Door Domestic Violence Resource Center Strong Hearted Native Women's Coalition Tenants Together Wild Iris Family Counseling & Crisis Center YWCA of Glendale one individual OPPOSITION: (Verified6/16/15) Apartment Association, California Southern Cities Apartment Association of Orange County East Bay Rental Housing Association Nor Cal Rental Property Owners Association North Valley Property Owners Association ARGUMENTS IN SUPPORT: According to Tenants Together, current law allows a survivor of domestic violence, sexual assault, elder/dependent adult abuse, human trafficking, or stalking to AB 418 Page 8 terminate a residential lease early by providing a landlord with a qualified third party statement from a health professional, domestic violence counselor, a sexual assault counselor, or a human trafficking caseworker indicating that he or she is a survivor of abuse. This provision is due to sunset at the end of this year. Removing the sunset would ensure that survivors can continue to terminate leases for safety reasons without having to turn to the courts or the police. In addition, they support changes to the law to remove barriers to lease termination arising from excessive rent liability. AB 418 decreases the maximum rent liability following a notice to terminate from 30 days to 14 days. ARGUMENTS IN OPPOSITION: According to the East Bay Rental Housing Association, when multiple tenants rent a dwelling unit, each tenant is jointly and severally liable for the entire rent-they are all responsible for the full amount of rent. Because they are all responsible for the full rent amount, landlords typically only accept one rent check a month for the full amount. Tenants often make agreements with one another about how much each tenant pays toward the entire rent. Sometimes tenants agree that each owes an equal amount, like 50/50, or split into thirds if three tenants are renting a unit. More often than not, however, tenants split the rent into unequal shares depending on a variety of factors including who makes more money, or who gets the bigger room. Landlords are never privy to the agreements tenants make about how much of the rent each tenant is responsible for. A landlord in this circumstance would have no idea what share of the rent was paid by the terminating tenant. It would be unfair to the other tenants, and the subject of a lawsuit, if a landlord assumed the tenant's share of the rent was precisely 1/3 and paid her back accordingly. ASSEMBLY FLOOR: 78-0, 4/23/15 AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, AB 418 Page 9 Bonilla, Bonta, Brough, Brown, Burke, Calderon, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins NO VOTE RECORDED: Campos, Salas Prepared by:Tobias Halvarson / JUD. / (916) 651-4113 6/19/15 11:17:36 **** END ****