H.B. 336

1

COMMERCIAL LESSEES' DEPOSITS
2 2003 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Carol Spackman Moss
5 This act modifies the Real Estate Code by creating a new chapter regarding commercial
6 lessees' deposits. The act creates the requirement for return of a security deposit on a
7 commercial lease within a specified time.
8 This act affects sections of Utah Code Annotated 1953 as follows:
9 ENACTS:
10 57-17a-101, Utah Code Annotated 1953
11 57-17a-102, Utah Code Annotated 1953
12 57-17a-103, Utah Code Annotated 1953
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 57-17a-101 is enacted to read:
15 CHAPTER 17a. COMMERCIAL LESSEES' DEPOSITS ACT
16 57-17a-101. Title.
17 This chapter is known as the "Commercial Lessees' Deposits Act."
18 Section 2. Section 57-17a-102 is enacted to read:
19 57-17a-102. Definitions.
20 As used in this chapter:
21 (1) "Commercial property" means income producing property as opposed to residential
22 property.
23 (2) "Lease" means a contract by which one owning commercial property grants to
24 another the right to possess, use, and enjoy it for a specified period of time in exchange for
25 periodic payment of a stipulated price, referred to as lease payment.
26 (3) "Lessee" means the person to whom the commercial property is conveyed.
27 (4) "Owner" means the person who grants a lease.

28 Section 3. Section 57-17a-103 is enacted to read:
29 57-17a-103. Return of security deposit.
30 (1) Upon termination of the tenancy of commercial property, money or property held as
31 a deposit may be applied, at the owner's designated agent's option, to accrued lease payments,
32 damages to the premises beyond reasonable wear and tear, other costs provided for in the
33 contract, and cleaning of the commercial property.
34 (2) The balance of any deposit and prepaid lease payment, if any, and a written
35 itemization of any deductions from the deposit, and reasons for any deductions, shall be
36 delivered or mailed to the lessee within 30 days after termination of the tenancy or within 15
37 days after receipt of the lessee's new mailing address, whichever is later.
38 (3) The lessee shall notify the owner or designated agent of the location where payment
39 and notice may be delivered or mailed.




Legislative Review Note
as of 2-7-03 4:57 PM

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

Office of Legislative Research and General Counsel