BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 551


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          ASSEMBLY THIRD READING


          AB  
          551 (Nazarian)


          As Amended  May 14, 2015


          Majority vote


           ----------------------------------------------------------------- 
          |Committee       |Votes |Ayes                |Noes                |
          |                |      |                    |                    |
          |                |      |                    |                    |
          |----------------+------+--------------------+--------------------|
          |Judiciary       |7-0   |Mark Stone, Alejo,  |                    |
          |                |      |Chau, Chiu,         |                    |
          |                |      |Cristina Garcia,    |                    |
          |                |      |Holden, Maienschein |                    |
          |                |      |                    |                    |
          |                |      |                    |                    |
           ----------------------------------------------------------------- 


          SUMMARY:  Prescribes the duties of landlords and tenants with  
          regard to the treatment and control of bed bugs in residential  
          rental housing.  Specifically, this bill:   


          1)Requires a landlord, on and after July 1, 2016, prior to  
            creating a new tenancy for a dwelling unit, to provide a written  
            notice to the prospective tenant that includes, but is not  
            limited to:  a) general information about bed bug  
            identification, behavior and biology, the importance of  
            cooperation for prevention, treatment and prompt written  
            reporting of suspected infestations; b) the procedure to report  








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            suspected infestations to the landlord; c) whether the property  
            has a bed bug management plan.


          2)Prohibits a tenant from knowingly bringing personal furnishings  
            or belongings that are infested with bed bugs onto the property.


          3)Prohibits a landlord from renting or leasing, or offering to  
            rent or lease, any vacant dwelling unit that the landlord knows  
            or should reasonably know has a current bed bug infestation.


          4)Requires the tenant to notify the landlord in writing within  
            seven days upon finding or reasonably suspecting a bed bug  
            infestation at a property along with evidence of infestation.


          5)Requires the landlord, within five business days of being  
            notified by a tenant or a public agency of an infestation or  
            suspected infestation, to retain the services of a pest control  
            operator (PCO) to verify the complaint and to conduct an  
            inspection, if determined to be necessary by the PCO.


          6)Requires tenants to cooperate with the inspection to facilitate  
            the detection of bed bugs, including providing requested  
            information to facilitate the detection of bed bugs to the PCO.


          7)Requires the landlord, after a bed bug infestation is confirmed  
            by a pest control operator, to do all of the following: 


             a)   Provide written notification of the finding of infestation  
               to all tenants of units identified for treatment by the PCO  
               within 48 hours of receipt of the PCO's findings.  Further  
               requires such notification to be provided to all tenants for  
               confirmed infestations in common areas.








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             b)   Contract with a PCO to prepare and implement a bed bug  
               treatment program to begin within a reasonable time, where 10  
               days after the confirmed infestation is presumed to be a  
               reasonable time.


             c)   Provide to affected tenants at least seven calendar days  
               prior notice of:  i) the dates of treatment; ii) the deadline  
               for the tenant to prepare the unit; and iii) the date, time,  
               and length of time the tenant must be absent from the unit.  


             d)   Provide notice to the tenant of his or her right to ask  
               for an extension of time to prepare the premises and to have  
               a copy of the PCO's pretreatment checklist.


             e)   Prepare a written bed bug management plan for the property  
               and make it available to tenants upon request.


          8)Requires an affected tenant, after a bed bug infestation is  
            confirmed by a pest control operator, to do all of the  
            following: 
             a)   Fulfill his or her responsibilities for unit preparation  
               before the scheduled treatment, as described in the PCO's  
               pretreatment checklist, including responsibility for  
               management of belongings such as clothing and personal  
               furnishings.
             b)   Promptly notify the landlord if unable to fulfill the unit  
               preparation responsibilities.  For a tenant not entitled to a  
               reasonable accommodation under law who requests an extension  
               of time to prepare the unit, the landlord shall extend the  
               preparation time by three days.


             c)   Cooperate in vacating his or her unit as notified for  
               treatment purposes, and refrain from reentering the unit  
               until directed by the PCO to do so.








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          9)Permits entry into a tenant's unit for selected purposes,  
            including, among other things, for inspection of unit  
            preparation, bed bug treatment, and post-treatment inspection  
            and monitoring of all affected and surrounding units, as  
            recommended by the PCO.
          10) Provides that a landlord may not engage in any retaliatory  
            conduct against a tenant who has notified the landlord of  
            finding or reasonably suspecting a bed bug infestation on the  
            property, except that service of a three-day notice and filing  
            of an unlawful detainer action to enforce tenant  
            responsibilities under this bill shall not be considered  
            unlawful retaliation against a tenant.


          11)Provides that if a landlord has notice of the infestation and  
            follows the procedures of this bill, the property shall not,  
            with respect to bed bugs, be considered:  a) to be substandard  
            as defined in Health and Safety Code Section 17920.3; b) to be  
            untenantable as defined in Civil Code Section 1941.1; or c) to  
            be in breach of the implied warranty of habitability.


          12) Authorizes a landlord or tenant to sue for injunctive or  
            declaratory relief for violations of these provisions, and  
            shields a landlord from liability for any damages due to delays  
            in bed bug treatment and control that are outside the landlord's  
            control.


          13)Declares that, in the interest of providing a single, uniform  
            approach to the treatment of bed bug infestations in residential  
            tenancies in California, it is the intent of the Legislature to  
            occupy the field with regard to this subject, and prohibits  
            cities, counties, and other local entities from enacting a local  
            law on this subject.










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          FISCAL EFFECT:  None


          COMMENTS:  This bill seeks for the first time to establish the  
          duties of landlords and tenants with regard to the treatment and  
          control of bed bugs in rental housing.  According to the author,  
          bed bugs are a major problem in residential multifamily housing,  
          and several California cities rank in the top 50 in the nation in  
          terms of bed bug infestations, with Los Angeles now ranking at  
          number two.  The author states:  "Cooperation between landlords  
          and tenants is essential to effectively treat bed bugs.  AB 551 is  
          a critical step in providing landlords and tenants' processes and  
          procedures to address bedbug infestation and resolve the issue  
          expeditiously.  More often than not, a bedbug infestation is not  
          reported timely enough due to fear of accountability.  The absence  
          of bed bug protocols and management laws, leave landlords and  
          tenants, without clear direction on how to approach bed bug  
          situations.  This bill ensures landlords and tenants alike are  
          protected and work together to resolve the issue in an equitable  
          manner."


          Methods of control.  According to the National Pest Management  
          Association (NPMA), there are multiple methods of controlling bed  
          bugs that a professional can employ as part of a bed bug  
          management program, including vacuuming (physical removal), steam  
          treatment, heat treatment, mattress encasement, cold freeze  
          treatment, fumigation, and use of insecticides.  Bed bug treatment  
          can be particularly disruptive in multiunit buildings because a  
          treatment plan may not be truly effective unless all neighboring  
          apartments to the left, right, above, and below are also treated,  
          depending on the spread of bed bugs throughout the building.  


          Heat treatment of the entire room or apartment is an increasingly  
          popular method of treatment because it provides more flexibility  
          for use in cluttered environments than traditional pesticide  
          application.  Bed bugs can be killed by heating the areas that  
          harbor bed bugs in the apartment to a recommended 118 degrees  








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          Fahrenheit for a total of 90 minutes.  In most cases, a heat  
          treatment session occurs during the course of one day, and the  
          tenant may be able to return to the premises without being  
          displaced overnight; this is in contrast to a situation where  
          fumigation of an entire structure is sought, and a tenant may be  
          displaced for multiple days.  Treatment methods are just one  
          important part of an integrated pest management (IPM) plan, which  
          may also include things such as educating residents about bed bug  
          prevention and control, making recommendations to property  
          managers about sealing cracks and crevices, and correcting  
          structural deficiencies to reduce the likelihood of  
          re-infestation.


          Importance of cooperation needed between landlords and tenants to  
          effectively treat infestations of bed bugs.  According to the  
          author, cooperation among landlords, tenants, and pest control  
          operators is required for successful control of bed bugs,  
          particularly because the bugs have developed resistance to  
          insecticidal control measures.  Effective control is more likely  
          to occur when landlords and tenants are informed about the best  
          practices for bed bug control.  Early detection and reporting of  
          bed bugs is an important component required for preventing bed bug  
          infestations.  Tenants should not face retaliation for reporting a  
          problem.


          Lack of cooperation by landlords and tenants can undermine pest  
          control operator efforts to identify the presence of bed bugs and  
          control an infestation.  Depending on the treatment strategy, it  
          is critical that tenants cooperate with pest control operators by  
          reducing clutter, washing clothes, or performing other activities.  
           Likewise, inadequate or untimely response or poor planning by  
          landlords may exacerbate an infestation.  For these reasons,  
          landlord and tenant groups that support this bill agree that it is  
          necessary to establish specific, enforceable duties for the  
          parties so that the failure of a tenant or landlord to cooperate  
          fully does not prevent effective investigation, treatment, and  
          monitoring of all infested and surrounding units.








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          Rights and responsibilities of tenants and landlords: summary of  
          timeline and procedure.  According to the author, the absence of  
          protocols for handling reported infestations of bed bugs in  
          existing law leaves landlords and tenants without clear direction  
          on how to proceed in such situations in a way that both ensures  
          the infestation is properly treated as soon as possible, but also  
          respects the rights of both tenants and landlords.  This bill is a  
          result of a working group of landlord and tenant groups that seeks  
          to find consensus in developing such protocols and clearly  
          establishing the respective rights and responsibilities of  
          landlords and tenants when a bed bug infestation is suspected or  
          identified.  These protocols are summarized below.


          Written bed bug management plan.  Under this bill, a "bed bug  
          management plan" is defined as a written plan prepared by a pest  
          control operator for a particular property.  The plan outlines the  
          responsibilities of the landlord, and is required to be consistent  
          with NPMA best practices and tailored to the conditions at the  
          property.  The plan includes, among other things:  1) housekeeping  
          and building maintenance procedures to help prevent bed bug  
          harborage; 2) the landlord's process for responding to complaints  
          and a brief statement of the requirements of the statute; and 3)  
          written documentation of any bed bug treatment program.  If a bed  
          bug infestation has been confirmed, this bill then requires the  
          landlord and a PCO to prepare a written bed bug management plan  
          for the property and make the plan available to tenants upon  
          request.


          Proponents contend that the NPMA best practice guidelines are  
          "nationally recognized" and "reflect the best and most current  
          knowledge with respect to bed bugs."  In support, California  
          Apartment Association (CAA) explains the NPMA guidelines help  
          address a problem that many property owners face - namely, what to  
          consider when choosing a pest control operator and how to select a  
          control method.  CAA states:  "Often property owners receive  








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          several bids.  Not all property owners have the knowledge to  
          select between those bids provided by the pest control operators,  
          other than based on cost.  This bill resolves this by specifying  
          that all inspections, controls, and other work required by this  
          bill must be done in accordance with the NPMA Guidelines."  The  
          bill is opposed, however, by some apartment associations on the  
          basis that the bill improperly abdicates state health and safety  
          standards to the NPMA, a private industry association.  Because  
          the bill requires a bed bug management plan to be consistent with  
          NPMA best practices, opponents contend that the bill potentially  
          allows for the disregard of the government's own health and safety  
          standards developed to address bed bugs, in favor of the NPMA.   
          Opponents also contend that because PCOs are state-licensed,  
          trained and tested to treat pests, it is inappropriate for the  
          bill to then direct PCOs to uphold NPMA guidelines instead of the  
          existing state regulations on bed bug treatment that may conflict  
          or otherwise prescribe a different course of action.


          Informational notices to prospective tenants.  First, this bill  
          requires the landlord to provide prospective tenants with  
          information about bed bugs generally, as well as a notice  
          describing the landlord's procedure for reporting a suspected bed  
          bug infestation and disclosing whether a bed bug management plan  
          (as described above) exists for the property.  This requirement  
          applies to all new tenancies created on or after July 1, 2016, but  
          would also require the bed bug informational notice to be provided  
          to all existing tenants by January 1, 2017.


          Report of suspected bed bug infestation.  Under this bill, a  
          tenant who finds or reasonably suspects a bed bug infestation on  
          the rental property must notify the landlord in writing within  
          seven days.  As currently in print, this bill requires the  
          landlord, within five business days of receiving such notice, to  
          retain the services of a pest control operator to verify the  
          tenant's complaint and conduct an inspection, if deemed necessary  
          by the PCO.  This bill further requires the tenant to cooperate  
          with the inspection to facilitate the detection of bed bugs,  








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          including providing requested information to facilitate such  
          detection.  Again, this obligation reflects the importance of  
          cooperation by both the landlord and tenant to help the PCO  
          identify and treat the bed bug infestation as soon as possible.


          Confirmation of bed bug infestation.  If the PCO confirms that a  
          bed bug infestation exists, then a whole range of new obligations  
          are set into motion under this bill.  First, the landlord is  
          required within 48 hours to notify all tenants of units identified  
          for treatment of the PCO's finding of a confirmed infestation.   
          Next, this bill requires the landlord to contract with a PCO to  
          prepare and implement a bed bug treatment program to begin within  
          a reasonable time - presumed under this bill to be 10 days after  
          confirmation of an infestation.  At least seven days before the  
          treatment is to occur, the landlord is required to provide  
          affected tenants with an important notice that discloses the dates  
          and times of the proposed treatment, and the length of time, if  
          any, that the tenant shall be absent from the unit in order to  
          allow the treatment to be conducted.  This notice also provides  
          the tenant with an opportunity to ask for an extension of time to  
          prepare the unit for treatment, or for a reasonable accommodation,  
          if disabled.  Tenants are responsible for the management of their  
          own furniture and other belongings, as well as for preparing their  
          unit for treatment before the scheduled date.  Finally, this bill  
          requires the landlord and PCO to prepare a written bed bug  
          management plan for the property and make the plan available to  
          tenants upon request when a bed bug infestation has been confirmed  
          by the PCO or by a local code enforcement officer or health  
          officer.  


          Proper notice for entry always observed.  Importantly, this bill  
          clarifies that any entry to inspect the tenant's unit for bed bugs  
          must still comply with the 24-hour advance notice required under  
          Civil Code Section 1954, whether the entry is sought by the  
          landlord or by the PCO, or is for an initial inspection, or a  
          follow-up inspection.  For the purpose complying with Civil Code  
          Section 1954, this bill clarifies that inspection of unit  








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          preparation, bed bug treatment, post treatment inspection, and  
          monitoring of affected surrounding areas are all necessary  
          services authorizing entry into the premises by the landlord.   
          Furthermore, this bill clarifies that the landlord must provide  
          separate written notice of entry for treatments if more than one  
          entry is needed by the PCO.


          Tenants protected from retaliatory eviction for reporting bed bug  
          problems.  In order to encourage tenants to report early  
          indications of bed bug infestation, rather than failing to report  
          for possible fear of retaliation, this bill protects tenants who  
          report signs of infestation from retaliatory eviction under Civil  
          Code Section 1942.5.  Specifically, this bill provides that the  
          landlord may not take retaliatory action against a tenant who has  
          provided written notice to the landlord of finding or reasonably  
          suspecting a bed bug infestation.  In addition, this bill  
          clarifies that service of a three-day notice and filing of an  
          unlawful detainer action against the tenant to enforce tenant  
          responsibilities under this bill shall likewise not be considered  
          unlawful retaliation under Civil Code Section 1942.5.  


          Liability provisions.  Existing law, Health and Safety Code  
          Section 17290.3, provides that a building shall be deemed to be  
          substandard if certain specified conditions exist to an extent  
          that it endangers the life, limb, health, property, safety, or  
          welfare of the public or the occupants.  Among other things, an  
          infestation of insects, vermin, or rodents on the premises, as  
          determined by a health officer or a code enforcement officer, is  
          one of the conditions that can lead to the determination that the  
          building be considered substandard housing.  Recent amendments  
          clarify that if a landlord has notice of the infestation and  
          follows the procedures of this chapter, the property shall not be  
          considered to be substandard with respect to bed bugs, including  
          during the time when a landlord is making arrangements for  
          inspection and treatment pursuant to these provisions.  In  
          addition, this bill authorizes a landlord or tenant to sue for  
          injunctive or declaratory relief for violations of these  








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          provisions, and shields a landlord from liability for any damages  
          due to delays in bed bug treatment and control that are outside  
          the landlord's control.




          Analysis Prepared by:                                               
          Anthony Lew / JUD. / (916) 319-2334  FN: 0000409