BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 2521|
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THIRD READING
Bill No: AB 2521
Author: Blumenfield (D)
Amended: 5/8/12 in Assembly
Vote: 21
SENATE JUDICIARY COMMITTEE : 4-0, 7/3/12
AYES: Evans, Blakeslee, Corbett, Leno
NO VOTE RECORDED: Harman
ASSEMBLY FLOOR : 76-0, 5/14/12 - See last page for vote
SUBJECT : Landlord and tenant: personal property
SOURCE : Author
DIGEST : This bill increases to $700, from $300, the
threshold amount of determining whether the landlord must
dispose of the departed tenant's unclaimed property via a
public sale, with the proceeds of the sale (less storage
and sale costs) held for the tenant, or whether the
landlord may dispose of the property in any manner or
retain it for his/her own use. This bill, among other
things, (1) requires a landlord to release the personal
property to the former tenant without paying the cost of
storage, if, the property remained in the dwelling and the
former tenant or other person reasonably believed by the
landlord to be its owner reclaims the property within two
days of vacating the dwelling; and (2) requires a landlord
to inform the tenant of his or her general right to recover
abandoned property in the notice to terminate a tenancy, or
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in the notice to request an initial inspection of the
property prior to termination.
ANALYSIS : Existing law requires a landlord to provide
written notice to a former tenant of the tenant's right to
reclaim personal property left behind when the tenancy was
terminated. The notice must inform the tenant whether the
landlord intends to hold a public sale for the property, or
to keep, sell, or destroy the property without further
notice because the landlord believes the property to be
worth less than $300. (Civil Code (CIV) Section 1984 and
1988)
Existing law provides the tenant at least 15 days to claim
the property if the notice is personally delivered, and at
least 18 days if the notice is mailed. If mailed, the
notice must be sent by first-class mail to the tenant at
his/her last known address and, if that mailing address is
reasonably believed to be deficient, to another address
known by the landlord where the tenant may reasonably be
expected to receive the notice. (CIV Section 1983)
Existing law authorizes a landlord to retain or dispose of
personal property left on the premises and unclaimed by the
former tenant if the landlord reasonably believes that the
property has a total resale value of less than $300. (CIV
Section 1988)
Existing law requires the landlord to hold a public sale
with competitive bidding for unclaimed personal property
left by a former tenant if the value of the property is
believed to be worth $300 or more. (CIV Section 1988)
Existing law generally defines "reasonable belief" as the
actual knowledge or belief a prudent person would have
without making an investigation. (CIV Section 1980(d))
This bill increases the above monetary threshold value from
$300 to $700, thereby allowing a landlord to keep, sell, or
destroy a tenant's unclaimed personal property if the total
resale value of the property is reasonably believed to be
less than $700.
This bill requires a landlord to release the personal
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property to the former tenant without paying the cost of
storage, if the property remained in the dwelling and the
former tenant or other person reasonably believed by the
landlord to be its owner reclaims the property within two
days of vacating the dwelling.
This bill revises the notice of the tenant's right to
reclaim personal property so as to include language
informing the tenant that if he/she claims the property by
a specified date (not less than two days after the tenant
vacated the premises), the tenant may minimize the costs of
storage.
This bill also requires the landlord to inform the tenant
of his/her general right to recover abandoned property in
the notice to terminate a tenancy, or in the notice to
request an initial inspection of the property prior to
termination.
This bill further allows the landlord to provide to the
former tenant by email, in addition to personal delivery or
first class mail, written notice describing personal
property left behind by the former tenant and how to
reclaim such property, but only if the former tenant had
provided the landlord with his or her email address.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 7/6/12)
Apartment Association, California Southern Cities
Apartment Association of Greater Los Angeles
Apartment Association of Orange County
East Bay Rental Housing Association
NORCAL Rental Property Association
San Diego County Apartment Association
Santa Barbara Rental Property Association
ARGUMENTS IN SUPPORT : According to the author:
AB 2521 would provide a one-time inflation adjustment in
the threshold for the handling of abandoned tenant
property by landlords to $700. The bill also requires a
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change in the notice to tenants consistent with the
threshold adjustment so tenants will be informed that
"�b]ecause this property is believed to be worth less
than $700, it may be kept, sold, or destroyed without
further notice if you fail to reclaim it within the time
indicated above."
AB 2521 would provide a reasonable adjustment in the
dollar value of abandoned tenant property that triggers a
public sale, which has not been increased since 1983.
Using the Consumer Price Index as a measure for
inflation, the proposed adjustment would raise the
threshold to $700.
This legislation reflects the compromise we worked out
with the apartment owners and Western Center on Law and
Poverty to ensure that this bill not only benefits
landlords but tenants as well. It would, for the first
time, allow tenants who act promptly to reclaim abandoned
personal property without charge.
Additionally, AB 2521 propels the process into the 21st
Century by allowing landlords to contact tenants by
e-mail about abandoned property found - in addition to
the current mailed notification process. AB 2521 would
also give tenants earlier notice of their rights to
reclaim abandoned property.
The bill does not change requirements that a landlord act
reasonably in removing and storing the tenant's abandoned
property. The bill does not change requirements that a
landlord act reasonably in removing and storing the
tenant's abandoned property. The landlord still must take
specified steps to notify a former tenant who abandoned
property at the rental unit and store the property at the
tenant's expense if the property is reclaimed. The
current costs of advertising, storage and sale paid by a
landlord may far exceed the value of the abandoned
property. According to the Apartment Association of
Greater Los Angeles, tenants often do not reclaim
abandoned property valued at under $300. Los Angeles
County reports receiving $26,149 as of January 31, 2012
from the public auction of abandoned tenant property with
few claims filed for proceeds from the sale of their
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property. AB 2521 would provide a much-needed update
that reflects today's economic realities.
ASSEMBLY FLOOR : 76-0, 5/14/12
AYES: Achadjian, Alejo, Allen, Ammiano, Beall, Bill
Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fong, Fuentes, Furutani, Beth
Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, Grove,
Hagman, Halderman, Hall, Harkey, Hayashi, Roger
Hern�ndez, Hill, Huber, Hueso, Huffman, Jeffries, Jones,
Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor,
Mendoza, Miller, Mitchell, Monning, Morrell, Nestande,
Nielsen, Norby, Olsen, Pan, V. Manuel P�rez, Portantino,
Silva, Skinner, Smyth, Solorio, Swanson, Torres, Wagner,
Wieckowski, Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Atkins, Fletcher, Perea, Valadao
RJG:m 7/6/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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