AB1963 - Hiring of real property: portable screening reports: disclosure of application materials.

Amended IN Assembly March 16, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 1963 Introduced by Assembly Member McKinnor February 13, 2026 An act to amend Section 1941.1 of add Section 1950.3 to, and to repeal and add Section 1950.1 of, the Civil Code, and to add Section 50514.7 to the Health and Safety Code, relating to tenancy. LEGISLATIVE COUNSEL'S DIGEST AB 1963, as amended, McKinnor. Hiring of real property: dwellings: untenantability. 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 landlord’s 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 tenant’s 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. Existing law requires that any building with a dwelling unit maintain certain characteristics to be tenantable, including, among other things, effective waterproofing and weather protection of roof and exterior walls, as specified. This bill would make a nonsubstantive change to the provisions described above relating to untenantability. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 1950.1 of the Civil Code is repealed. 1950.1. (a) A reusable tenant screening report shall include all of the following information regarding an applicant: (1) Name. (2) Contact information. (3) Verification of employment. (4) Last known address. (5) Results of an eviction history check in a manner and for a period of time consistent with applicable law related to the consideration of eviction history in housing. (b) A reusable tenant screening report shall prominently state the date through which the information contained in the report is current. (c) A landlord may elect to accept reusable tenant screening reports and may require an applicant to state that there has not been a material change to the information in the reusable tenant screening report. (d) Notwithstanding Section 1950.6, if an applicant provides a reusable tenant screening report to a landlord that accepts reusable tenant screening reports, the landlord shall not charge the applicant either of the following: (1) A fee for the landlord to access the report. (2) An application screening fee. (e) As used in this section: (1) “Applicant” has the same meaning as defined in Section 1950.6. (2) “Application screening fee” has the same meaning as defined in Section 1950.6. (3) “Consumer report” has the same meaning as defined in Section 1681a of Title 15 of the United States Code. (4) “Consumer reporting agency” means a person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties and that uses any means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports. (5) “Landlord” means an owner of residential rental property or the owner’s agent. (6) “Reusable tenant screening report” means a consumer report that meets all of the following criteria: (A) Was prepared within the previous 30 days by a consumer reporting agency at the request and expense of an applicant. (B) Is made directly available to a landlord for use in the rental application process or is provided through a third-party website that regularly engages in the business of providing a reusable tenant screening report and complies with all state and federal laws pertaining to use and disclosure of information contained in a consumer report by a consumer reporting agency. (C) Is available to the landlord at no cost to access or use. (f) This section does not affect any other applicable law related to the consideration of criminal history information in housing, including, but not limited to, Article 24 (commencing with Section 12264) of Subchapter 7 of Chapter 5 of Division 4.1 of Title 2 of the California Code of Regulations and local ordinances governing the information that landlords may review and consider when determining to whom they will rent. (g) If an ordinance, resolution, regulation, administrative action, initiative, or other policy adopted by a city, county, or city and county conflicts with this section, the policy that provides greater protections to applicants shall apply. (h) This section does not require a landlord to accept reusable tenant screening reports. SEC. 2. Section 1950.1 is added to the Civil Code, to read: 1950.1. (a) For the purposes of this section, the following terms have the following meanings: (1) “Application requirements” means any information, documentation, fees, deposits, or other materials that a landlord requires from a prospective tenant as part of the process of considering their application for tenancy. (2) “Consumer report” has the meaning set forth in Section 1681a of Title 15 of the United States Code. (3) “Portable screening report” means a consumer report prepared by a tenant screening company, which may include information about their current ability to pay that meets all of the following criteria: (A) Be dated within 45 days of submission to the landlord. (B) Comply with all applicable federal, state, and local laws governing the content of consumer reports and tenant screening reports. (C) Be obtained with proper written authorization from the prospective tenant. (D) Cost the prospective tenant no more than forty-five dollars ($45). (4) “Tenant screening company” means a consumer reporting agency, as defined in Section 1681a of Title 15 of the United States Code, that compiles and provides portable screening reports to landlords or prospective tenants. (b) A landlord shall accept from a prospective tenant a portable screening report prepared by a tenant screening company approved by the Department of Housing and Community Development pursuant to subdivision (g). (c) If a prospective tenant provides a portable screening report pursuant to subdivision (b), the landlord shall not do any of the following: (1) Notwithstanding Section 1950.6, charge the prospective tenant any of the following: (A) An application fee. (B) A screening fee. (C) Any fee to access, review, or process the portable screening report. (D) Any other fee associated with the rental application. (2) Require a prospective tenant to pay for or undergo an additional background check, credit check, or tenant screening. (3) Reject an application based solely on either of the following: (A) The applicant’s provision of a portable screening report pursuant to subdivision (b) rather than submitting to the landlord’s preferred screening process. (B) A score, recommendation, or rating generated by an automated system, algorithmic tool, or artificial intelligence that does not meet either of the following criteria: (i) Derived from factors empirically related to the likelihood that an applicant will fulfill the obligations of a tenancy. (ii) Tested periodically to ensure it does not produce a disparate impact on members of a protected class under applicable fair housing law. (d) A landlord shall advise a prospective tenant in an advertisement for a dwelling unit and before accepting any application materials for a dwelling unit of both of the following: (1) The landlord is required to accept portable screening reports provided by the prospective tenant pursuant to subdivision (b). (2) The landlord is prohibited from charging a prospective tenant, who provides a portable screening report pursuant to subdivision (b), any fee described in paragraph (1) of subdivision (c). (e) If a landlord rejects an application after reviewing a portable screening report provided by the prospective tenant pursuant to subdivision (b), the landlord shall, within three business days, provide the prospective tenant with the specific reasons for rejection in writing that complies with all of the following: (1) Identify the specific criteria that were not met. (2) Comply with the adverse action notice requirements specified in Section 1681m of Title 15 of the United States Code. (3) Comply with existing, applicable fair housing and consumer protection laws. (4) Inform the prospective tenant of their right to dispute inaccurate information that was used. (f) A portable screening report may be used for multiple rental applications during its 45-day validity period. (g) The Department of Housing and Community Development shall establish and maintain a publicly accessible list of approved tenant screening companies that prepare portable screening reports, pursuant to both of the following: (1) The Department of Housing and Community Development shall review and update the list at least annually. The Department of Housing and Community Development shall remove from the list any tenant screening company that does not prepare a portable screening report that meets the requirements described in paragraph (3) of subdivision (a). (2) The Department of Housing and Community Development shall establish procedures for tenant screening companies to apply for approval and inclusion on the list. (h) (1) A landlord who violates this section shall be liable to the prospective tenant in a civil action for any of the following: (A) Actual damages, including, but not limited to, application fees paid, economic harm, and costs incurred for seeking alternative housing. (B) Statutory damages of two thousand five hundred dollars ($2,500) per violation. (C) Reasonable attorney’s fees and costs. (D) Any other relief the court deems appropriate, including injunctive relief. (2) (A) Subject to subparagraph (C), before a prospective tenant brings a civil action pursuant to paragraph (1), the prospective tenant shall give notice of the violation to the landlord, with an opportunity to cure the violation, that includes all of the following: (i) Identifies the specific provision or provisions of this section that the landlord allegedly violated. (ii) Describes the facts giving rise to the alleged violation. (iii) States that the landlord has seven calendar days to cure the violation. (B) The landlord shall not be liable to the prospective tenant for a violation of this section if the landlord does both of the following: (i) Cures the violation within seven days of receiving the notice pursuant to subparagraph (A). (ii) Pays the prospective tenant a penalty of fifty dollars ($50). (C) This parag [Text truncated for display. Full text available on Congress.gov.]