CALIFORNIA

Below is information regarding the processing of employment background checks in California We recommend that you review the legislation and confer with your counsel to review the legislation and to develop a strategy in the best interest of your operations.

As you may be aware, the California Legislature passed legislation amending the California’s Code of Civil Procedure which impacts the rental housing industry within the state of California. That legislation appears to be effective upon its signing on January 29, 2021.

• Among the provisions impacting the rental housing industry, this bill includes the following provision, which we are highlighting for your specific reference as it could impact rental screening of prospective tenants in California. Please be reminded that this is only an excerpt and you should review the entire legislation:
  
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• *This bill would prohibit a housing provider, tenant screening company, or other entity that evaluates tenants on behalf of a housing provider from using an alleged COVID-19 rental debt, as defined, as a negative factor for the purpose of evaluating a prospective housing application or as the basis for refusing to rent a dwelling unit to an otherwise qualified prospective tenant.
  
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• The bill, in part, defines “Covid-19 Rental Debt” as unpaid rent or other unpaid financial obligation of a tenant that came due during the “Covered Period” between March 1, 2020, and June 30, 2021.
  

In response to this legislation, TransUnion is making the following changes to the data provided during rental screening:

1. If you are a customer of TransUnion’s eviction records, please note that evictions records that can be identified in California during the Covered Period will be suppressed. These records will not be returned in the evictions report. This change is complete.
   
2. If you are a customer of TransUnion’s credit reports and scores, please note that COVID-19 Rental Debts that can be identified in California during the covered period will be suppressed and not used in ResidentScore or VantageScore.