BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 73| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 73 Author: Waldron (R) Amended: 8/16/16 in Senate Vote: 27 - Urgency SENATE JUDICIARY COMMITTEE: 6-0, 8/9/16 AYES: Jackson, Moorlach, Hertzberg, Leno, Monning, Wieckowski NO VOTE RECORDED: Anderson ASSEMBLY FLOOR: 77-0, 1/25/16 - See last page for vote SUBJECT: Real property: disclosure SOURCE: AIDS Project of Los Angeles Los Angeles LGBT Center DIGEST: This bill specifies that the owner of real property, his or her agent, or the agent of a transferee of real property, is not required to disclose that an occupant of the property being transferred was living with human immunodeficiency virus (HIV) or died from acquired immune deficiency syndrome (AIDS) related complications. ANALYSIS: Existing law: 1)Provides that all people have inalienable rights, including the right to pursue and obtain privacy. (Cal. Const., art. I, AB 73 Page 2 Sec. 1.) 2)States that to protect the privacy of individuals who are the subject of testing for HIV, no person shall be compelled in any state, county, city, or other local civil, criminal, administrative, legislative, or other proceedings to identify or provide identifying characteristics that would identify any individual who is the subject of an HIV test, as specified. (Health & Saf. Code Sec. 120975.) 3)Requires the transferor to deliver a statutory transfer disclosure statement and other disclosures as soon as practicable before transfer of title, or close of escrow, when transferring real property and manufactured homes or mobilehomes. (Civ. Code Sec. 1102.3a(a).) 4)States that no cause of action arises against an owner of real property or his or her agent, or any agent of a transferee of real property, for the failure to disclose to the transferee the occurrence of an occupant's death upon the real property or the manner of death where the death has occurred more than three years prior to the date the transferee offers to purchase, lease, or rent the real property, or that an occupant of that property was afflicted with, or died from, Human T-Lymphotropic Virus Type III/Lymphadenopathy-Associated Virus. (Civ. Code Sec. 1710.2(a).) 5)Specifies that the above provision shall not be construed to immunize an owner or his or her agent from making an intentional misrepresentation in response to a direct inquiry from a transferee or a prospective transferee of real property, concerning deaths on the real property. (Civ. Code Sec. 1710.2(d).) This bill: 1)Recasts the above provisions to state that an owner of real property or his or her agent, or any agent of a transferee of AB 73 Page 3 real property, is not required to disclose either of the following to the transferee, as these are not material facts that require disclosure: The occurrence of an occupant's death upon the real property or the manner of death where the death has occurred more than three years prior to the date the transferee offers to purchase, lease, or rent the real property; or That an occupant of that property was living with HIV or died from AIDS-related complications. 1)Makes related technical and conforming changes to existing law. Background According to NAM (National AIDS Manual), HIV is a type of retrovirus identified in the 1980s that attacks and gradually causes damage to the human immune system. [W]ithout treatment and care, a person with HIV is at risk of developing serious infections and cancers that a healthy immune system would fight off. Current treatment for HIV works by reducing the amount of HIV in the body so the immune system can work normally. This doesn't get rid of HIV completely, but with the right treatment and care, someone with HIV can expect to live a long and healthy life. . . . AIDS [acquired immune deficiency syndrome] is the name used to describe a combination of potentially life-threatening infections and cancers, which can develop when someone's immune system has been damaged by HIV. AB 73 Page 4 . . . Treatment with combinations of anti-HIV drugs can keep the immune system strong, and because of this the number of people who are diagnosed with AIDS has fallen. Thanks to effective HIV treatment, many people who developed AIDS are now very well and can look forward to a long and healthy life. (See http://www.aidsmap.com/hiv-basics/HIV-AIDS/page/1412437/ [as of Aug. 4, 2016].) HIV, the virus that can lead to AIDS, is found in certain body fluids, but does not survive long outside the human body, and it cannot reproduce outside a human host. Consequently, "[y]ou cannot get HIV from kissing, by hugging, or by shaking hands with somebody with HIV - or any other normal social contact. Nor can you get HIV by being in the same place as someone with HIV, or by sharing household items such as crockery, cutlery, or bed linen," and "HIV is not passed on by spitting, sneezing or coughing." (See http://www.aidsmap.com/hiv-basics/Transmission/page/1412438/ [as of Aug. 4, 2016].) The Legislature passed SB 2484 (Roberti, Chapter 498, Statutes of 1986) and SB 324 (Davis, Chapter 292, Statutes of 1987) in the 1980s to relieve transferors of property from any duty to disclose that an occupant of the property was infected with HIV. This bill recasts and clarifies those provisions by explicitly stating that the transferor of a property is not required to disclose that an occupant of the property being transferred was living with HIV or died from AIDS-related complications. Comments According to the author: Existing law states the Legislature's intent to occupy the field of regulation of disclosure related to deaths occurring upon real property and of AIDS in situations affecting the AB 73 Page 5 transfer of real property or any estate or interest in real property. California Civil Code section 1710.2, which refers to real estate disclosures, says that sellers and agents are protected from a cause of action for the failure to disclose a previous occupant's cause of death from HIV on that property that has occurred more than three years prior to the date the buyer offers to purchase, lease, or rent the real property. This section was originally written to protect people living with HIV from being discriminated against when selling or renting real estate. However, this section caused confusion for many homeowners and real estate agents because of the specific mention of HIV. This confusion leads many to believe that they are required to disclose that the previous occupant was HIV positive. AB 73 updates the California Civil Code to remove language that stigmatizes people living with HIV and clarify that there is no requirement to disclose a previous occupant's HIV status when selling, leasing, or renting a home. Prior Legislation SB 324 (Davis, Chapter 292, Statutes of 1987) provided that no cause of action arises against the owner of real property, or his or her agent, or the agent of the transferee of a property, for the failure to disclose that an occupant of that property died from the virus that causes AIDS. The bill also immunized owners of real property and their agents from causes of action based on their failure to disclose the fact or manner of the death of an occupant that occurred more than three years prior to transfer, but provided that such immunity did not extend to intentional misrepresentations concerning deaths on the property in response to a direct inquiry from a transferee. SB 2484 (Roberti, Chapter 498, Statutes of 1986) provided that no cause of action arises against the owner of real property, or his or her agent, or the agent of the transferee of a property, for the failure to disclose that an occupant of that property was afflicted with the virus that causes AIDS. AB 73 Page 6 FISCAL EFFECT: Appropriation: No Fiscal Com.:NoLocal: No SUPPORT: (Verified8/9/16) AIDS Project of Los Angeles (co-source) Los Angeles LGBT Center (co-source) American Civil Liberties Union of California California Apartment Association ViiV Healthcare OPPOSITION: (Verified8/9/16) None received ASSEMBLY FLOOR: 77-0, 1/25/16 AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins NO VOTE RECORDED: Dababneh, Eduardo Garcia Prepared by:Tobias Halvarson / JUD. / (916) 651-4113 8/16/16 17:33:27 **** END **** AB 73 Page 7