S.B. 96

1

CITY AUTHORITY OVER CERTAIN RENTAL UNITS
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: David L. Buhler
5 AN ACT RELATING TO CITIES AND TOWNS; AUTHORIZING A MUNICIPALITY TO
6 IMPOSE CERTAIN REQUIREMENTS ON THE OWNER OF A RENTAL DWELLING;
7 PROVIDING AN EXCEPTION; AND MAKING TECHNICAL CORRECTIONS.
8 This act affects sections of Utah Code Annotated 1953 as follows:
9 AMENDS:
10 10-8-4, as last amended by Chapter 196, Laws of Utah 1993
11 ENACTS:
12 10-8-85.5, Utah Code Annotated 1953
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 10-8-4 is amended to read:
15 10-8-4. Special taxes and licenses.
16 (1) Municipal legislative bodies may:
17 (a) subject to Subsection (2) and except as provided in Subsection 10-8-85.5(3), fix the
18 amount, terms, and manner of issuing licenses; and
19 (b) consistent with general law, provide the manner and form in which special taxes are
20 levied and collected.
21 (2) (a) Municipal legislative bodies may not discriminate between resident community
22 businesses and nonresident community businesses in establishing license requirements.
23 (b) Municipal legislative bodies may not impose motor vehicle delivery license fees on
24 persons or entities who:
25 (i) are licensed as dealers in another municipality;
26 (ii) do not have a permanent business location in the municipality.
27 Section 2. Section 10-8-85.5 is enacted to read:

1 10-8-85.5. "Rental dwelling" defined -- Municipality may require regulatory business
2 license and inspections -- Exception.
3 (1) As used in this section, "rental dwelling" means a building or portion of a building that
4 is:
5 (a) used or designated for use as a residence by one or more persons; and
6 (b) (i) available to be rented, loaned, leased, or hired out for a period of one month or
7 longer; or
8 (ii) arranged, designed, or built to be rented, loaned, leased, or hired out for a period of one
9 month or longer.
10 (2) S (a) s Except as provided in Subsection (3), the legislative body of a municipality may by
11 ordinance require the owner of a rental dwelling located within the municipality h TO OBTAIN A
11a BUSINESS LICENSE PURSUANT TO SECTION 10-1-203 OR h :
12 S [(a)] (i) s to obtain a regulatory business license to operate and maintain the rental
12a dwelling; and
13 S [(b)] (ii) s to allow inspections of the rental dwelling as a condition of obtaining a
13a regulatory
14 business license.
14a S (b) A MUNICIPALITY MAY NOT REQUIRE AN OWNER OF MULTIPLE RENTAL DWELLINGS OR
14b MULTIPLE BUILDINGS CONTAINING RENTAL DWELLINGS TO OBTAIN MORE THAN ONE
14c REGULATORY BUSINESS LICENSE FOR THE OPERATION AND MAINTENANCE OF THOSE RENTAL
14d DWELLINGS.
14e (c) NOTWITHSTANDING SUBSECTION (2)(b), A MUNICIPALITY MAY IMPOSE UPON AN
14f OWNER SUBJECT TO SUBSECTION (2)(a) A REASONABLE INSPECTION FEE FOR THE INSPECTION OF
14g EACH RENTAL DWELLING OWNED BY THAT OWNER.
14h (d) IF A MUNICIPALITY'S INSPECTION OF A RENTAL DWELLING, ALLOWED UNDER
14i SUBSECTION (2)(a)(ii), APPROVES THE RENTAL DWELLING FOR PURPOSES OF A REGULATORY
14j BUSINESS LICENSE, A MUNICIPALITY MAY NOT INSPECT THAT RENTAL DWELLING DURING THE
14k NEXT 36 MONTHS, UNLESS THE MUNICIPALITY HAS REASONABLE CAUSE TO BELIEVE THAT A
14l CONDITION IN THE RENTAL DWELLING IS IN VIOLATION OF AN APPLICABLE LAW OR ORDINANCE. s
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Amend on 2_goldenrod February 18, 1997 15 (3) A municipality may not impose the requirements of Subsection (2) S (a) s on the owner
15a of a

lilac-March 4, 1997

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16 building containing S [four] TWO s or fewer rental dwellings.
17 (4) Nothing in this section shall be construed to affect the rights and duties established
18 under Title 57, Chapter 22, Utah Fit Premises Act, or to restrict a municipality's ability to enforce
19 its generally applicable health ordinances or building code S , A LOCAL HEALTH DEPARTMENT'S
19a AUTHORITY UNDER TITLE 26A, CHAPTER 1, OR THE UTAH DEPARTMENT OF HEALTH'S AUTHORITY
19b UNDER TITLE 26 s .





Legislative Review Note
as of 11-12-96 10:42 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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Amend on 2_goldenrod February 18, 1997
Amend on 3_February 19, 1997