Summary of Bill S 947

Overview

Bill Number: S 947

Title: Prohibits residential landlords from charging tenants fees for the payment of rent through an automated clearing house or online payment system

Status: Ordered to Third Reading Rules CAL. 261

Introduced: January 08, 2025

Classification: Bill

Purpose and Intent

The primary intent of Bill S 947 is to protect tenants from additional financial burdens associated with the payment of rent. Specifically, the bill aims to prohibit residential landlords from imposing fees on tenants who choose to pay their rent using automated clearing house (ACH) transfers or online payment systems. This legislation seeks to promote fair housing practices and ensure that tenants are not penalized for utilizing modern payment methods.

Key Provisions

• Fee Prohibition: The bill explicitly prohibits landlords from charging any fees related to the use of ACH or online payment systems for rent payments.
• Applicability: This prohibition applies to all residential landlords, ensuring that tenants across various housing situations are protected from these fees.

Impact

• Tenants: The bill directly benefits tenants by eliminating extra costs associated with rent payments, making housing more affordable and accessible.
• Landlords: While landlords may lose the ability to charge fees for electronic payments, the bill encourages the adoption of convenient payment methods, which can streamline rent collection processes.

Legislative Actions

• January 08, 2025: Bill introduced and referred to the Judiciary Committee.
• March 25, 2025: The bill was reported for the first time (1st Report CAL. 590).
• March 26, 2025: Advanced to the second reading (2nd Report CAL.).
• April 01, 2025: Passed in the Senate and delivered to the Assembly, where it was referred to the Housing Committee.
• May 27, 2025: Substituted for A 3121 and ordered to third reading.

Related Bills

• S 9070: A related bill from a prior session that may address similar issues.
• A 3121: A companion bill that aligns with the objectives of S 947.

Conclusion

Bill S 947 represents a significant step towards ensuring that tenants are not subjected to unfair fees for using electronic payment methods for rent. By prohibiting such charges, the bill aims to foster a more equitable rental market and enhance the financial well-being of tenants. As the bill progresses through the legislative process, its potential impact on both tenants and landlords will continue to be a point of discussion.