AB 1963: Hiring of real property: portable screening reports: disclosure of application materials.

Existing law regulates the terms and conditions of residential tenancies, including imposing specified requirements on a security for a rental agreement for residential property. Existing law defines security as any payment, fee, deposit, or charge that is imposed to reimburse the landlord for costs associated with processing a new tenant or that is imposed as an advance payment of rent, used for any purpose, as provided. Existing law authorizes a landlord, or the landlords agent, who receives a request to rent a residential property from an applicant to charge that applicant an application screening fee to cover the costs of obtaining information about the applicant, as provided. Existing law authorizes a landlord to accept a reusable tenant screening report, as provided, and prohibits the landlord from charging the applicant specified fees, including an application screening fee, if the landlord accepts the reusable tenant screening report. Existing law defines a reusable tenant screening report as a consumer report that, among other things, was prepared within the previous 30 days by a consumer reporting agency at the request and expense of the applicant and is available to the landlord at no cost to access or use.

Existing law defines unfair competition to include any unlawful, unfair, or fraudulent business act or practice and unfair, deceptive, untrue, or misleading advertising and subjects a person who engages, has engaged, or proposes to engage in unfair competition to various remedies and penalties.

This bill would repeal the provisions authorizing a landlord to accept reusable tenant screening reports and would, instead, require a landlord to accept from a prospective tenant a portable screening report prepared by a tenant screening company approved by the Department of Housing and Community Development, as provided. The bill would define various terms for these purposes, including defining a portable screening report as a consumer report prepared by a tenant screening company that, among other things, is dated within 45 days before submission to the landlord and costs the prospective tenant no more than $45. The bill would prohibit a landlord from, among other things, charging the prospective tenant specified fees associated with processing the rental application, including an application fee, or requiring the prospective tenant to undergo or pay for an additional background check, credit check, or tenant screening, if the prospective tenant provides a portable screening report under these provisions. The bill would require a landlord to advise a prospective tenant in an advertisement for a dwelling unit and before accepting any application materials for a dwelling unit on certain obligations of the landlord regarding portable screening reports. If the landlord rejects an application after reviewing the portable screening report provided by the tenant under these provisions, the bill would require a landlord to provide the prospective tenant with the specific reasons for rejection in writing, as provided. The bill would require the Department of Housing and Community Development to post on its internet website information for prospective tenants about these provisions.

This bill would also require a landlord to provide in writing a complete and itemized disclosure of all application requirements to the prospective tenant before accepting any application materials. The bill would require that the disclosure, among other things, be provided in a clear, plain-language, and standardized format, as prescribed by the Department of Housing and Community Development. The bill would prohibit a landlord from adding, modifying, or requesting additional application requirements from a prospective tenant, except as provided, and prohibit a landlord from denying an application based a prospective tenants failure to provide an application requirement that was not disclosed. The bill would specify that a violation of these provisions is an act of unfair competition, as described above.

This bill would make a landlord who violates either of the above-described provisions liable to a prospective tenant in a civil action, as provided. The bill would require a prospective tenant to provide a landlord with an opportunity to cure the violation before bringing a civil action, as provided. The bill would additionally authorize the Attorney General to bring a civil action to seek specified remedies based on violations of its provisions. The bill would provide that these remedies are in addition to any other remedies.

This bill would declare that its provisions are severable.