Hiring of real property: portable screening reports: disclosure of application materials.
What changed between versions
Landlords are now required to accept a 'portable screening report' prepared by a DHCD-approved tenant screening company. The report must be dated within 45 days, cost the tenant no more than $45, and can be reused across multiple applications during its validity period.
If a prospective tenant provides a portable screening report, the landlord is prohibited from charging any application fee, screening fee, access fee, or other rental-application-related fee, and cannot require an additional background check, credit check, or tenant screening.
Landlords are prohibited from rejecting an application based solely on the tenant's use of a portable screening report instead of the landlord's preferred process, or based on a score from an automated system or AI tool that is not empirically validated and periodically tested for disparate impact on protected classes.
Landlords must provide a complete, itemized written disclosure of all application requirements (documentation, qualification criteria, deposits, timeline) before accepting any application materials. The disclosure must use a DHCD-prescribed plain-language format, be publicly posted where the unit is advertised, and be available in the same languages as the advertisement.
After providing the application requirements disclosure, landlords cannot add, modify, or request additional requirements except if the tenant provided materially false information or the landlord discovers a bona fide error (in which case affected tenants must be notified and offered a full refund).
DHCD must establish and maintain a publicly accessible list of approved tenant screening companies, review and update it at least annually, and post information about the portable screening report requirements on its website (new Health and Safety Code Section 50514.7).
Violations of both new sections carry civil liability including actual damages, $2,500 statutory damages per violation, attorney's fees, and injunctive relief. A first-time landlord gets a 7-day cure period plus must pay a $50 penalty to avoid full liability. The Attorney General can also bring civil actions seeking up to $2,500 per violation in civil penalties.
Violations of the application requirements disclosure section (new Section 1950.3) are additionally classified as acts of unfair competition under the Business and Professions Code, opening an additional enforcement pathway.
The bill's scope expanded from a single nonsubstantive edit to Civil Code Section 1941.1 (changing 'shall be deemed' to 'is') into a multi-section act adding new provisions to the Civil Code and Health and Safety Code covering tenant screening, application transparency, and enforcement.
New defined terms include 'portable screening report,' 'tenant screening company,' 'application requirements,' and 'consumer reporting agency.' The old term 'reusable tenant screening report' (30-day validity, optional for landlords) is replaced by the new mandatory framework.
The fiscal committee designation changed from 'no' to 'yes,' indicating the amendment introduced a state fiscal impact that was not present in the original technical-only version.