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SB-1157 Tenancy: credit reporting: lower income households.(2019-2020)

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Date Published: 05/29/2020 09:00 PM
SB1157:v96#DOCUMENT

Amended  IN  Senate  May 29, 2020
Amended  IN  Senate  May 11, 2020
Amended  IN  Senate  March 24, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 1157


Introduced by Senator Bradford

February 20, 2020


An act to add Section 1954.06 to the Civil Code, relating to tenancy.


LEGISLATIVE COUNSEL'S DIGEST


SB 1157, as amended, Bradford. Tenancy: credit reporting: lower income households.
Existing law regulates the terms and conditions of residential tenancies, and requires a landlord to provide a tenant with various notices at the time the lease is executed and throughout the tenancy.
The Consumer Credit Reporting Agencies Act and the federal Fair Credit Reporting Act regulate consumer credit reporting agencies that collect credit-related information on consumers and report this information to subscribers and the persons who furnish that information to consumer credit reporting agencies, as provided.
This bill, beginning July 1, 2021, would require a landlord of an assisted housing development, as defined, to offer tenants obligated on the lease of units in the development the option of having their rental payments reported to at least one consumer reporting agency, as specified. The bill would authorize a landlord to charge a tenant that elects to have rent reported the lesser of $10 per month or the actual cost to the landlord to provide the service. The bill would prescribe requirements regarding how offers are to be made for new and existing leases. The bill would authorize a tenant who elects to have rent reported to file a written request to stop that reporting, provided that, in this case, the bill would prohibit the tenant from electing rent reporting again for at least 6 months. The bill would declare that a tenant who elects to have rent reported does not forfeit specified tenant rights and if a tenant makes deductions from rent or otherwise withholds it, as authorized, the deduction deductions or withholding does not constitute a late rental payment.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 1954.06 is added to the Civil Code, to read:

1954.06.
 (a) As specified in subdivision (b), beginning July 1, 2021, any landlord of an assisted housing development as defined in Section 65863.10 of the Government Code, shall offer the tenant or tenants obligated on the lease of each unit in that housing development the option of having the tenant’s rental payment information reported to at least one nationwide consumer reporting agency that meets the definition in Section 603(p) of the federal Fair Credit Reporting Act (15 U.S.C. Section 1681a(p)) or any other consumer reporting agency that meets the definition in Section 603(f) of the federal Fair Credit Reporting Act (15 U.S.C. Section 1681a(f)) so long as the consumer reporting agency resells or otherwise furnishes rental payment information to a nationwide consumer reporting agency that meets the definition in Section 603(p) of the federal Fair Credit Reporting Act (15 U.S.C. Section 1681a(p)). A tenant’s election to have rent reported under this subdivision shall be in writing.
(b) For leases entered into on and after July 1, 2021, the offer of rent reporting shall be made at the time of the lease agreement and at least once annually, thereafter. For leases outstanding as of July 1, 2021, the offer of rent reporting shall be made no later than October 1, 2021, and at least once annually thereafter.
(c) If a tenant elects to have that tenant’s rental payments reported to a consumer reporting agency under subdivision (a), the landlord may require that tenant to pay a fee not to exceed the lesser of the actual cost to the landlord to provide the service or $10.00 (ten dollars) per month.
(d) A tenant who elects to have rent reported as described in subdivision (a) may subsequently file a written request with their landlord to stop that reporting with which the landlord shall comply. A tenant who elects to stop reporting shall not be allowed to elect rent reporting again for a period of at least six months from the date of the tenant’s written request to stop reporting.
(e) A tenant who elects to have rent reported does not forfeit any rights under Sections 1941 to 1942, inclusive. If a tenant makes deductions from rent or otherwise withholds it rent as authorized by those sections, the deduction deductions or withholding of rent shall not constitute a late rental payment. A tenant invoking the right to repair and deduct or withhold rent under those sections shall notify their landlord of the deduction or withholding prior to the date rent is due. This subdivision shall not be construed to relieve a housing provider of the obligation to maintain habitable premises.