BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 1679|
|Office of Senate Floor Analyses | |
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CONSENT
Bill No: AB 1679
Author: Bonilla (D)
Amended: 3/15/12 in Assembly
Vote: 21
SENATE JUDICIARY COMMITTEE : 4-0, 6/12/12
AYES: Evans, Harman, Corbett, Leno
NO VOTE RECORDED: Blakeslee
ASSEMBLY FLOOR : 78-0, 3/26/12 (Consent) - See last page
for vote
SUBJECT : Landlord-tenant relations: security deposits
SOURCE : California Apartment Association
DIGEST : This bill, after either a residential landlord
or tenant provides notice to terminate the tenancy, allows
the landlord and tenant to agree to
(1) have the landlord deposit the remaining portion of a
tenant's security deposit electronically to a bank account,
and (2) have the landlord provide a copy of specified
documents to an e-mail account provided by the tenant.
ANALYSIS : Existing law generally regulates the
landlord-tenant relationship, including the return of any
security deposit provided by the tenant. (Civil Code (CIV)
Section 1940 et seq.)
Existing law limits the amount of security deposit that may
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be required by a landlord and permits the landlord to only
claim amounts from that deposit which are reasonably
necessary for specified purposes. Those purposes include
compensating for a tenant's default in payment of rent,
repair of damages to the premises (exclusive of ordinary
wear and tear), and cleaning the premises, as specified.
(CIV Section 1950.5)
Existing law provides that no later than 21 calendar days
after the tenant has vacated the premises, as specified,
the landlord shall furnish the tenant with 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. (CIV Section 1950.5)
This bill, after either the landlord or tenant provides
notice to terminate the tenancy, permits the landlord and
tenant to agree to:
1. Have the landlord deposit any remaining portion of the
security deposit electronically to a bank account or
other financial institution designated by the tenant;
and
2. Have the landlord provide a copy of the itemized
statement along with the required copies of documents,
as specified, to an e-mail account provided by the
tenant.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 6/13/12)
California Apartment Association (source)
ARGUMENTS IN SUPPORT : According to the author, "Under
current law, rental property owners are required to return
tenant security deposits within 21 days only through a
physical check delivered personally or by first-class mail.
This requirement to return a security deposit by a
physical check was first placed in statute decades ago,
long before the advent of modern technology, electronic
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fund transfer options, and email. Today, more tenants are
asking that rental property owners return any remaining
security deposit directly into their bank account. This
request is consistent with the way in which many tenants
already chose to pay their rent - through an electronic
fund transfer (EFT)?"
The author further notes that by allowing security deposits
to be deposited electronically into a bank account, "AB
1679 will benefit both property owners and tenants�and
o]wners will be able to provide a service for those tenants
who seek it, while speeding up the process for returning
the tenant's deposit."
ASSEMBLY FLOOR : 78-0, 3/26/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani,
Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove,
Hagman, Halderman, Hall, Harkey, Hayashi, Roger
Hern�ndez, Hill, Huber, Hueso, Huffman, Jeffries, Jones,
Knight, Lara, Logue, Ma, Mansoor, Mendoza, Miller,
Mitchell, Monning, Morrell, Nestande, Nielsen, Norby,
Olsen, Pan, Perea, V. Manuel P�rez, Portantino, Silva,
Skinner, Smyth, Solorio, Swanson, Torres, Valadao,
Wagner, Wieckowski, Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Gorell, Bonnie Lowenthal
RJG:m 6/14/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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