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<ns0:Id>20250AB__124897AMD</ns0:Id>
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<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-21</ns0:ActionDate>
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<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2025-03-24</ns0:ActionDate>
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<ns0:ActionDate>2025-06-02</ns0:ActionDate>
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<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Haney</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Haney</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title>An act to add Section 1950.2 to the Civil Code, relating to civil law. </ns0:Title>
<ns0:RelatingClause>civil law</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Hiring of real property: fees and charges.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>Existing law regulates the hiring of real property and imposes various requirements on landlords relating to the application for, and leasing of, residential rental property. Existing law prohibits a landlord or its agent from charging a tenant a fee for serving, posting, or otherwise delivering a notice of termination of a hiring of residential property, as specified. Existing law also prohibits a landlord or its agent from charging a tenant any fee for payment by check for rent or security deposit, as provided.</html:p>
<html:p>This bill would require on or after April 1, 2026, a landlord or landlord’s agent who advertises, displays, or offers residential property for rent to include in any advertisement, display, or offer the price, including all required fees or charges, and a description of all available optional housing services, as defined, including the associated fees for each optional housing service.</html:p>
<html:p>This bill would prohibit a landlord or landlord’s agent from using a ratio utility billing system to allocate, demand, or collect fees or charges from a tenant, except for fees or charges for water or sewer service, as provided. The bill would prohibit the landlord from charging any fee or charge other than required fees and charges, as defined, and fees or charges for optional housing services.</html:p>
<html:p>This
bill would also require that any payment received from, or on behalf of, a tenant be applied to rent, rental debt, and any outstanding fees in a specified order, and would prohibit late fees from being charged to a tenant whose only delinquency is attributable to nonpayment or late payment of a late fee. The bill would specify that a decrease in housing services, as defined, is an increase in rent.</html:p>
<html:p>The bill would provide that a landlord or landlord’s agent who violates these provisions is liable to a tenant in a civil action for damages, including treble damages. The bill would provide that its provisions do not prevent a landlord from recovering damages otherwise permitted by law. The bill would establish a
3-year statute of limitations to bring an action under these provisions.</html:p>
<html:p>The bill would provide that a waiver of its provisions is contrary to public policy and void and unenforceable, and the bill’s provisions are severable.</html:p>
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<ns0:Election>NO</ns0:Election>
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<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_50D8E8E6-E313-4006-BEC0-FE0A7D3B25F1">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:Content>
<html:p>The Legislature finds and declares all of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
It is essential that prospective and current tenants have a clear and complete understanding of the total monthly cost of renting a home. Traditionally, this has been accomplished by landlords advertising and charging a single amount for rent that covers all housing services provided to the tenant.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Instead of advertising and charging tenants a single amount for rent, some landlords break down the amount that tenants
pay into smaller amounts, such as by charging an amount labeled “rent” plus various fees. Tenants may be surprised to be charged required fees on top of their rent, including “convenience fees” to pay rent online, broker fees, utility connectivity fees, and even so-called “January fees” charged for no clear reason at the beginning of a new calendar year. Sometimes these fees purport to cover services that the law requires landlords to provide, such as pest control fees despite the landlord’s obligation to maintain the rental unit pest-free.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
By enhancing transparency and predictability in rental housing costs, this act seeks to promote housing stability, foster trust between tenants and landlords, and create a level playing field among landlords.
</html:p>
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<ns0:BillSection id="id_7DF8625B-34A4-4414-AF75-F233287608B1">
<ns0:Num>SEC. 2.</ns0:Num>
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Section 1950.2 is added to the
<ns0:DocName>Civil Code</ns0:DocName>
, to read:
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<ns0:Num>1950.2.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
For the purposes of this section, the following definitions apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Housing services” means all services provided by or on behalf of a landlord related or connected to the use, occupancy, or enjoyment of residential real property, or that are required to be provided by law or are a condition of tenancy in the residential real property, including, but not limited to, trash collection, electrical service, water service, sewer service, gas service, other utilities, elevator service, storage, parking, facilities, access to common areas, repairs, maintenance, heat, hot water, pest control, security, or any other benefits, privileges, or services, whether express or implied.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Optional housing service” means a service including, but not limited to, a parking space, event space, storage space, use of a laundry machine, or similar, that is all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Not required to be provided by a residential landlord to a tenant by local, state, or other applicable law.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Not a condition of the tenancy, required by the landlord or landlord’s agent as subject to a required fee or charge, or offered as one of two or more options when selecting at least one of the options is required.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Freely selectable or rejectable by the tenant on an opt-in basis, with no adverse action or impact to the tenant.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Cancelable by the tenant with no more than 30 days’ notice to the landlord, with no adverse action or
impact to the tenant.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Reasonably available to the tenant from a source other than the landlord or landlord’s agent.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
Not within or physically connected to the tenant’s dwelling unit.
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
Not unilaterally cancelable by the landlord, unless the tenant has failed to pay the fee for 30 days past the due date or the landlord is no longer offering the service to all tenants.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Ratio utility billing system” means the allocation of utilities including, but not limited to, trash, water, water heating, sewer, natural gas, liquid propane gas, electricity, or other utility costs to tenants through any billing method other than individual meters, submeters, or a flat fee.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“Required fee or
charge” means a fee or charge that is required by the landlord or landlord’s agent to be paid to, or for the benefit of, the landlord or landlord’s agent for use or occupancy of the residential real property, for housing services, or as a condition of the tenancy.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
On or after April 1, 2026, a landlord or landlord’s agent who advertises, displays, or offers residential property for rent shall include in any advertisement, display, or offer both of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The price required to be paid to or for the benefit of the landlord or landlord’s agent for use or occupancy of the residential real property and housing services, or as a condition of the tenancy, including all required fees or charges, except as provided in subdivision (c).
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The price shall be clear and conspicuous, and significantly more
prominent in type size, color, and placement than the amount of any fee or charge included in the price.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
For any dwelling unit where submeters are used to charge a tenant separately for water service pursuant to Chapter 2.5 (commencing with Section 1954.201), the price shall include the fee or charge for water service by providing the estimate of the monthly bill for water service described in subdivision (b) of Section 1954.204.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
A description of all available optional housing services and associated fees for each optional housing service.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The landlord or landlord’s agent shall not condition an offer to rent, a tenancy, or the terms of a tenancy on whether a tenant chooses any optional housing services or on whether the tenant later cancels any optional housing services.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
A landlord or landlord’s agent may exclude both of the following fees or charges from the advertised, displayed, or offered price:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The amount of any refundable security or application screening fee, as provided in Sections 1950.5 and 1950.6, if it is clearly and conspicuously disclosed in all advertisements, displays, and offers and in the rental agreement.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Fees or charges for individually metered utilities that a tenant pays directly to a third-party utility provider pursuant to a contractual agreement between the tenant and the utility provider.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
This section does not prevent a landlord from recovering a charge for lost key replacement or damages to the property caused by the tenant or the tenant’s guests or as otherwise permitted by
law.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
A landlord or landlord’s agent shall not use a ratio utility billing system to allocate, demand, or collect fees or charges, except for fees or charges for water or sewer service, as provided in subdivision (f).
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
A landlord or landlord’s agent shall not allocate, demand, or collect from a tenant fees or charges for water or sewer service through the use of a ratio utility billing system, unless all of the following requirements are met:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The fee or charge for water or sewer usage consists only of fees or charges assessed for the property by the water or sewer provider.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If common areas, landscape irrigation systems, or other areas under the control of the landlord are served by a master water meter that also provides water to dwelling
units covered by this subdivision, the landlord or landlord’s agent shall deduct the greater of the following amounts before water or sewer costs are divided among the dwelling units:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Twenty percent of the total water or sewer bills.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The actual cost of water or sewer usage for all common areas, landscaping, and all other areas under the control of the landlord, if all common areas, landscaping, and all other areas under the control of the landlord are separately metered or submetered for water.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The actual cost of water or sewer usage for all landscaping plus 10 percent of the total water or sewer bills, if all water used for landscaping is separately metered or submetered and water used for other common areas or areas under the control of the landlord are not separately metered or submetered.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
For new tenancies beginning on or after April 1, 2026:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The advertised, displayed, or offered price for a dwelling unit described in subdivision (b) includes the highest monthly cost of water or sewer charges over the prior 12 months or prior calendar year for the unit or for a unit of similar size on the property.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Before accepting any application fee, security deposit, or other payment from a prospective tenant, the landlord or landlord’s agent does both of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Provides the prospective tenant a paper or electronic copy of the two most recent water or sewer bills for the property and identifies the amounts the prospective tenant would have paid for the dwelling unit’s share of those bills, except in the case of new construction if
prior bills do not exist.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Provides the prospective tenant a paper or electronic statement that describes all of the following:
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
The percentages of the water or sewer costs that are allocated to tenants and to the landlord, as described in paragraph (2) of subdivision (f).
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
The method or formula used to allocate water or sewer costs among tenants.
</html:p>
<html:p>
(III)
<html:span class="EnSpace"/>
A statement that tenants may inspect any documents or information as provided in paragraphs (4) and (5).
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The rental agreement clearly and conspicuously discloses the information described in subparagraphs (A) and (B).
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Upon written request by a tenant or a
tenant’s representative, the landlord permits a tenant or a tenant’s representative to inspect all water or sewer bills, the method or formula used to allocate water or sewer costs to dwelling units, and the percentages of the water or sewer costs that are allocated to dwelling units and to the landlord. The landlord is only required to comply with four requests per dwelling unit per 12-month period.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Upon written request by a tenant or a tenant’s representative, the landlord provides the total number of dwelling units billed each month and the number of bedrooms in each unit.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
During the course of a tenancy, the landlord or landlord’s agent does not alter the percentage of water or sewer costs that are allocated between the landlord and the tenants or the method or formula used to allocate water or sewer costs to the tenant in a way that increases the tenant’s share of
those costs. A change in the number of occupants of a tenant’s unit may result in a different cost to the tenant using a consistent formula.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
The fee or charge to any tenant is not greater as a result of vacancy in a dwelling unit on the property or the presence of other tenants at the property who do not pay for water or sewer pursuant to this subdivision.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
The use of a ratio utility billing system is not prohibited by local law.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
The dwelling unit does not use submeters to charge a tenant separately for water service pursuant to Chapter 2.5 (commencing with Section 1954.201).
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
For dwelling units and tenancies subject to the gross rental rate increase limits of Section 1947.12, any new required fee or charge, new fee or charge for optional
housing services that were previously provided in exchange for the tenant’s payment of rent, and any increases to a required or optional fee or charge shall, when combined with any other increases in the gross rental rate, comply with subdivision (a) of Section 1947.12. This subdivision is declarative of existing law.
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A landlord or landlord’s agent may charge a new required fee or charge for water if they are converting from a ratio utility billing system to the use of water submeters.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A decrease in housing services is an increase in the gross rental rate. This paragraph is declarative of existing law.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
A landlord or landlord’s agent who operates a ratio utility billing system in compliance with this section does not violate subdivision (a) of Section 1947.12, if water or sewer fees or charges increase
based on actual water or sewer usage or rates, so long as the landlord or landlord’s agent has complied with Section 1101.5.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
A landlord or landlord’s agent shall not charge any fee or charge, except for required fees and charges and fees and charges for optional housing services.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
A landlord or landlord’s agent shall not use a tenant’s failure to pay for an optional housing service as a basis for termination of tenancy.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Notwithstanding Section 1479, a payment received from, or on behalf of, a tenant shall be applied first to the current month’s rent, then to any outstanding rental debt that is less than 12 months past due, then to any other obligation due under the rental agreement other than rent, then to any other obligation between the two parties.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A late fee shall not be charged or collected for nonpayment or late payment of a previously charged late fee. This paragraph does not authorize the collection of late fees where they are not otherwise permitted by law.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
For the purposes of this subdivision, “rent” means periodic payment and all nonmonetary consideration to or for the benefit of the landlord in exchange for the use or occupancy of a dwelling unit and premises and the provision of housing services under a rental contract or agreement, oral, written, or implied.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
For the purposes of this subdivision, rent does not include optional housing services.
</html:p>
<html:p>
(
<html:i>l</html:i>
)
<html:span class="EnSpace"/>
This section does not enlarge or diminish any ability of local government to impose or enforce any
local laws or requirements upon a landlord or a landlord’s agent, that provide greater protection to tenants.
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
A landlord or landlord’s agent who violates this section shall be liable to a tenant in a civil action for all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Actual damages, but in no case shall the total award of actual damages be less than one thousand dollars ($1,000).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Injunctive and declaratory relief.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Reasonable attorney’s fees and costs.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Upon a showing that the landlord or landlord’s agent has acted willfully or with oppression, fraud, or malice, or with reckless or grossly negligent disregard of this section, three times the actual damages. An award may also be entered for punitive
damages for the benefit of the tenant.
</html:p>
<html:p>
(n)
<html:span class="EnSpace"/>
An action to enforce any cause of action pursuant to this section shall be commenced within three years after the cause of action accrued.
</html:p>
<html:p>
(o)
<html:span class="EnSpace"/>
The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
</html:p>
<html:p>
(p)
<html:span class="EnSpace"/>
Any waiver of the rights under this section shall be deemed contrary to public policy and void and unenforceable. This section shall be construed liberally to effect its purpose of protecting the public.
</html:p>
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