Bill > AB3260

This bill would require landlords to allow tenants to satisfy security deposits in one of two ways: by obtaining and maintaining rental security insurance or a surety bond, or by paying the security deposit in monthly installments over a period of at least six months. The bill sets out specific requirements for the insurance or bond, such as being from an approved and licensed insurance provider and providing coverage equal to the full security deposit amount. For shorter lease terms of less than nine months, the landlord and tenant can negotiate the number of installment payments. The bill also states that a tenant would be in violation of their lease if they fail to renew the security deposit insurance or pay the remaining security deposit amount.

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http://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=201920200AB3260