First Substitute S.B. 147

Senator Patricia W. Jones proposes the following substitute bill:

1 RESIDENTIAL RENTERS' DEPOSITS AMENDMENTS
2 2014 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Patricia W. Jones
5 House Sponsor: Brad R. Wilson
6
7 LONG TITLE
8 General Description:
9 This bill modifies Title 57, Chapter 17, Residential Renters' Deposits.
10 Highlighted Provisions:
11 This bill:
12 . provides that no later than 30 days after the day on which a renter vacates a rental
13 property, the owner or the owner's agent shall return to the renter the balance of any
14 deposit and the balance of any prepaid rent, and provide an itemized notice of any
15 deductions;
16 . establishes a procedure by which a renter may:
17 . notify the owner or the owner's agent of the owner or the owner's agent's failure
18 to comply with the provisions of the preceding paragraph; and
19 . provide the owner or the owner's agent a five-day opportunity to comply;
20 . provides that if the owner or the owner's agent fails to comply within five days after
21 the day on which a notice is served, the renter may recover the full deposit, the full
22 amount of any prepaid rent, and a civil penalty of $100; and
23 . provides that in an action to enforce compliance with the provisions of this bill, a
24 court shall award the renter costs and attorney fees if:
25 . the renter is the prevailing party; and

26 . the court determines that the owner or the owner's agent acted in bad faith.
27 Money Appropriated in this Bill:
28 None
29 Other Special Clauses:
30 None
31 Utah Code Sections Affected:
32 AMENDS:
33 57-17-3 , as enacted by Laws of Utah 1981, Chapter 74
34 REPEALS AND REENACTS:
35 57-17-5 , as enacted by Laws of Utah 1983, Chapter 208
36
37 Be it enacted by the Legislature of the state of Utah:
38 Section 1. Section 57-17-3 is amended to read:
39 57-17-3. Deductions from deposit -- Written itemization -- Time for return.
40 (1) Upon termination of [the] a tenancy, the owner or the owner's agent may apply
41 property or money held as a deposit [may be applied, at the owner's or designated agent's
42 option, to] toward the payment of [accrued] rent, damages to the premises beyond reasonable
43 wear and tear, other costs and fees provided for in the contract [and], or cleaning of the unit.
44 [The balance of any deposit and prepaid rent, if any, and a written itemization of any
45 deductions from the deposit, and reasons therefor, shall be delivered or mailed to the renter
46 within 30 days after termination of the tenancy or within 15 days after receipt of the renter's
47 new mailing address, whichever is later. The renter shall notify the owner or designated agent
48 of the location where payment and notice may be made or mailed. If there is damage to the
49 rented premises, this period shall be extended to 30 days.]
50 (2) No later than 30 days after the day on which a renter vacates and returns possession
51 of a rental property to the owner or the owner's agent, the owner or the owner's agent shall
52 deliver to the renter at the renter's last known address:
53 (a) the balance of any deposit;
54 (b) the balance of any prepaid rent; and
55 (c) if the owner or the owner's agent made any deductions from the deposit or prepaid
56 rent, a written notice that itemizes and explains the reason for each deduction.

57 (3) If an owner or the owner's agent fails to comply with the requirements described in
58 Subsection (2), the renter may serve the owner or the owner's agent, in accordance with Section
59 78B-6-805 , a notice that:
60 (a) states:
61 (i) the names of the parties to the rental agreement;
62 (ii) the day on which the renter vacated the rental property;
63 (iii) that the owner or the owner's agent has failed to comply with the requirements
64 described in Subsection (2); and
65 (vi) the address where the owner or the owner's agent may send the items described in
66 Subsection (2); and
67 (b) is substantially in the following form:
68 TENANT'S NOTICE TO PROVIDE DEPOSIT DISPOSITION
69 TO: (insert owner or owner's agent's name)
70 RE: (insert address of rental property)
71 NOTICE IS HEREBY GIVEN THAT WITHIN FIVE (5) CALENDAR DAYS
72 pursuant to Utah Code Sections 57-17-3 et seq., the owner or the owner's agent must provide
73 the tenant, at the address below, a refund of the balance of any security deposit, the balance of
74 any prepaid rent, and a notice of any deductions from the security deposit or prepaid rent as
75 allowed by law.
76 NOTICE IS FURTHER GIVEN that failure to comply with this notice will require the
77 owner refund the entire security deposit, the full amount of any prepaid rent, and a penalty of
78 $100. If the entire security deposit, the full amount of any prepaid rent, and the penalty of $100
79 is not tendered to the tenant, and the tenant is required to initiate litigation to enforce the
80 provisions of the statute, the owner may be liable for the tenant's court costs and attorney fees.
81 Tenant's Name(s):_____________________________________
82 Mailing Address_____________________ City____________ State_____ Zip_______
83 This is a legal document. Please read and comply with the document's terms.
84 Dated this ______ day of _____________, 20____
85 Return of Service
86 On this _____ day of ____________, 20____ I swear and attest that I served this notice
87 in compliance with Utah Code Sections 78B-6-805 et seq. by:

88 ____Delivering the notice to the owner or the owner's agent personally at the address
89 provided in the lease agreement or to the owner's registered agent; or
90 ____Mailing the notice by registered or certified mail addressed to the owner or the
91 owner's agent at the address provided in the lease agreement or to the owner's registered agent;
92 or
93 ____After finding no suitable person to serve, posting the notice at a conspicuous place
94 at the address provided in the lease agreement.
95 The owner's address to which the service was effected is:
96 Address________________________ City______________ State_____ Zip_______
97 _________________ (server's signature)
98 Self-authentication Declaration
99 Pursuant to Utah Code Section 46-5-101 , I declare under criminal penalty of the State of Utah
100 that the foregoing its true and correct.
101 Executed this _____ day of _____________, 20____.
102 ___________________ (server's signature)
103 (4) Within 5 days after the day on which the notice described in Subsection (3) is
104 served, the owner or the owner's agent shall comply with the requirements described in
105 Subsection (2).
106 Section 2. Section 57-17-5 is repealed and reenacted to read:
107 57-17-5. Failure to return deposit or prepaid rent or to give required notice --
108 Recovery of deposit, penalty, costs, and attorney fees.
109 (1) If an owner or the owner's agent fails to comply with the requirements described in
110 Subsection 57-17-4 (4), the renter may:
111 (a) recover from the owner:
112 (i) if the owner or the owner's agent failed to timely return the balance of the renter's
113 deposit, the full deposit;
114 (ii) if the owner or the owner's agent failed to timely return the balance of the renter's
115 prepaid rent, the full amount of the prepaid rent; and
116 (iii) a civil penalty of $100; and
117 (b) file an action in district court to enforce compliance with the provisions of this
118 section.

119 (2) If a renter files an action in accordance with Subsection (1)(b), the court shall
120 award the renter costs and attorney fees if:
121 (a) the renter is the prevailing party; and
122 (b) the court determines that the owner or the owner's agent acted in bad faith.
123 (3) A renter is not entitled to relief under this section if the renter fails to serve a notice
124 in accordance with Subsection 57-17-3 (3).
125 (4) This section does not preclude an owner or a renter from recovering other damages
126 to which the owner or the renter is entitled.