Second 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 costs and attorney fees to the prevailing party if the court
25 determines that the opposing party acted in bad faith.

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

57 Subsection (2), the renter may serve the owner or the owner's agent, in accordance with
58 Subsection (4), a notice that:
59 (a) states:
60 (i) the names of the parties to the rental agreement;
61 (ii) the day on which the renter vacated the rental property;
62 (iii) that the owner or the owner's agent has failed to comply with the requirements
63 described in Subsection (2); and
64 (vi) the address where the owner or the owner's agent may send the items described in
65 Subsection (2); and
66 (b) is substantially in the following form:
67 TENANT'S NOTICE TO PROVIDE DEPOSIT DISPOSITION
68 TO: (insert owner or owner's agent's name)
69 RE: (insert address of rental property)
70 NOTICE IS HEREBY GIVEN THAT WITHIN FIVE (5) CALENDAR DAYS
71 pursuant to Utah Code Sections 57-17-3 et seq., the owner or the owner's agent must provide
72 the tenant, at the address below, a refund of the balance of any security deposit, the balance of
73 any prepaid rent, and a notice of any deductions from the security deposit or prepaid rent as
74 allowed by law.
75 NOTICE IS FURTHER GIVEN that failure to comply with this notice will require the
76 owner to refund the entire security deposit, the full amount of any prepaid rent, and a penalty of
77 $100. If the entire security deposit, the full amount of any prepaid rent, and the penalty of $100
78 is not tendered to the tenant, and the tenant is required to initiate litigation to enforce the
79 provisions of the statute, the owner may be liable for the tenant's court costs and attorney fees.
80 Tenant's Name(s):_____________________________________
81 Mailing Address_____________________ City____________ State_____ Zip_______
82 This is a legal document. Please read and comply with the document's terms.
83 Dated this ______ day of _____________, 20____
84 Return of Service
85 On this _____ day of ____________, 20____, I swear and attest that I served this notice
86 in compliance with Utah Code Section 57-17-3 by:
87 ____ Delivering a copy to the owner or the owner's agent personally at the address

88 provided in the lease agreement;
89 ____ Leaving a copy with a person of suitable age and discretion at the address
90 provided in the lease agreement because the owner or the owner's agent was absent from the
91 address provided in the lease agreement;
92 ____ Affixing a copy in a conspicuous place at the address provided in the lease
93 agreement because a person of suitable age or discretion could not be found at the address
94 provided in the lease agreement; or
95 ____ Sending a copy through registered or certified mail to the owner or the owner's
96 agent at the address provided in the lease agreement.
97 The owner's address to which the service was effected is:
98 Address________________________ City______________ State_____ Zip_______
99 _________________ (server's signature)
100 Self-Authentication Declaration
101 Pursuant to Utah Code Section 46-5-101 , I declare under criminal penalty of the State of Utah
102 that the foregoing is true and correct.
103 Executed this _____ day of _____________, 20____.
104 ___________________ (server's signature)
105 (4) A notice described in Subsection (3) shall be served:
106 (a) (i) by delivering a copy to the owner or the owner's agent personally at the address
107 provided in the lease agreement;
108 (ii) if the owner or the owner's agent is absent from the address provided in the lease
109 agreement, by leaving a copy with a person of suitable age and discretion at the address
110 provided in the lease agreement; or
111 (iii) if a person of suitable age or discretion cannot be found at the address provided in
112 the lease agreement, by affixing a copy in a conspicuous place at the address provided in the
113 lease agreement; or
114 (b) by sending a copy through registered or certified mail to the owner or the owner's
115 agent at the address provided in the lease agreement;
116 (5) Within five business days after the day on which the notice described in Subsection
117 (3) is served, the owner or the owner's agent shall comply with the requirements described in
118 Subsection (2).

119 Section 2. Section 57-17-5 is repealed and reenacted to read:
120 57-17-5. Failure to return deposit or prepaid rent or to give required notice --
121 Recovery of deposit, penalty, costs, and attorney fees.
122 (1) If an owner or the owner's agent fails to comply with the requirements described in
123 Subsection 57-17-4 (4), the renter may:
124 (a) recover from the owner:
125 (i) if the owner or the owner's agent failed to timely return the balance of the renter's
126 deposit, the full deposit;
127 (ii) if the owner or the owner's agent failed to timely return the balance of the renter's
128 prepaid rent, the full amount of the prepaid rent; and
129 (iii) a civil penalty of $100; and
130 (b) file an action in district court to enforce compliance with the provisions of this
131 section.
132 (2) In an action under Subsection (1)(b), the court shall award costs and attorney fees
133 to the prevailing party if the court determines that the opposing party acted in bad faith.
134 (3) A renter is not entitled to relief under this section if the renter fails to serve a notice
135 in accordance with Subsection 57-17-3 (3).
136 (4) This section does not preclude an owner or a renter from recovering other damages
137 to which the owner or the renter is entitled.