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Assembly Bill 94 (Rosenthal – 1977)

Chapter 971, Statutes of 1977 - AB 94

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Civil Code sections 1950.5 and 1950.7 were enacted and former Civil Code section 1950.5 was repealed in 1977 following legislative passage of Assembly Bill 94, which affected these sections only.  (See Exhibit #1h)  Assembly member Herschel Rosenthal introduced the bill on December 20, 1976.  (See Exhibit #1a)   

Assembly Bill 94 was heard in the Assembly Committee on Judiciary and the Senate Committee on Judiciary.  (See Exhibits #3 and #7)  Six amendments were made to Assembly Bill 94 during the legislative process.  (See Exhibits #1b through #1g and #2)  Assembly Bill 94 was approved by the Legislature on September 9, 1977, signed by the Governor on September 21, 1977, and then recorded on that date as Chapter 971 of the Statutes of 1977.  (See Exhibits #1g and #2)

Assembly Bill 94 as last amended on August 30, 1977 is summarized in the Senate Democratic Caucus analysis as follows:

This bill repeals existing law and creates new provisions governing
security deposits paid to the landlord of residential property;
This bill defines “security” and limits the amount of security that
can be demanded to an amount equal to two months rent for unfurnished residential property and three months for furnished property, in addition to any rent for the first month paid on or before initial occupancy, exempting specified cases, . . .
This bill limits the claims landlords can make on security deposits
to those amounts reasonably necessary to remedy rent defaults, to repair damages caused by the tenant, exclusive of ordinary wear and tear, or to clean the premises, if necessary, upon termination of the tenancy.
This bill prohibits any rental agreement clause which characterizes
any security deposit made as “non-refundable”.  The bill specifies that any action under these provisions may be maintained in small claims court if the amount of damages claimed, are within the court’s jurisdiction.
This bill restates existing law in regards to rental of non-residential
property.
(See Exhibit #9, page 1)