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H.B. 290 Enrolled






Chief Sponsor: Gage Froerer

Senate Sponsor: Michael G. Waddoups

             8      LONG TITLE
             9      General Description:
             10          This bill modifies a Utah Municipal Code provision relating to rental dwellings.
             11      Highlighted Provisions:
             12          This bill:
             13          .    eliminates a provision exempting owners of buildings with two or fewer rental
             14      dwellings from regulatory business license or inspection requirements;
             15          .    eliminates a provision authorizing a municipality to impose a reasonable inspection
             16      fee for the inspection of a rental dwelling;
             17          .    prohibits a municipality from:
             18              .    imposing a fee on or after September 1, 2008 for the inspection of a rental
             19      dwelling;
             20              .    interfering with the ability of an owner of a rental dwelling to contract with a
             21      tenant concerning the payment of utility and municipal service costs;
             22              .    requiring the owner of a rental dwelling to retrofit a rental dwelling with or
             23      install in a rental dwelling a safety feature not required at the time the rental
             24      dwelling was constructed, except as required under the Utah Uniform Building
             25      Standards Act for a structural change to the rental dwelling, or as required in an
             26      ordinance adopted before January 1, 2008; and
             27          .    makes technical changes.
             28      Monies Appropriated in this Bill:
             29          None

             30      Other Special Clauses:
             31          None
             32      Utah Code Sections Affected:
             33      AMENDS:
             34          10-8-4, as last amended by Laws of Utah 1997, Chapter 267
             35          10-8-85.5, as last amended by Laws of Utah 2000, Chapter 172
             37      Be it enacted by the Legislature of the state of Utah:
             38          Section 1. Section 10-8-4 is amended to read:
             39           10-8-4. Special taxes and licenses.
             40          (1) Municipal legislative bodies may:
             41          (a) subject to Subsection (2) [and except as provided in Subsection 10-8-85.5 (3)], fix
             42      the amount, terms, and manner of issuing licenses; and
             43          (b) consistent with general law, provide the manner and form in which special taxes are
             44      levied and collected.
             45          (2) (a) Municipal legislative bodies may not discriminate between resident community
             46      businesses and nonresident community businesses in establishing license requirements.
             47          (b) Municipal legislative bodies may not impose motor vehicle delivery license fees on
             48      persons or entities who:
             49          (i) are licensed as dealers in another municipality; or
             50          (ii) do not have a permanent business location in the municipality.
             51          Section 2. Section 10-8-85.5 is amended to read:
             52           10-8-85.5. "Rental dwelling" defined -- Municipality may require a business
             53      license or a regulatory business license and inspections -- Exception.
             54          (1) As used in this section, "rental dwelling" means a building or portion of a building
             55      that is:
             56          (a) used or designated for use as a residence by one or more persons; and
             57          (b) (i) available to be rented, loaned, leased, or hired out for a period of one month or

             58      longer; or
             59          (ii) arranged, designed, or built to be rented, loaned, leased, or hired out for a period of
             60      one month or longer.
             61          (2) (a) The legislative body of a municipality may by ordinance require the owner of a
             62      rental dwelling located within the municipality:
             63          (i) to obtain a business license pursuant to Section 10-1-203 ; or
             64          [(ii) except as provided in Subsection (3):]
             65          (ii) (A) to obtain a regulatory business license to operate and maintain the rental
             66      dwelling; and
             67          (B) to allow inspections of the rental dwelling as a condition of obtaining a regulatory
             68      business license.
             69          (b) A municipality may not require an owner of multiple rental dwellings or multiple
             70      buildings containing rental dwellings to obtain more than one regulatory business license for the
             71      operation and maintenance of those rental dwellings.
             72          (c) (i) Notwithstanding Subsection (2)(b), a municipality may, until August 31, 2008,
             73      impose upon an owner subject to Subsection (2)(a) a reasonable inspection fee for the
             74      inspection of each rental dwelling owned by that owner.
             75          (ii) Beginning September 1, 2008, a municipality may not charge a fee for the inspection
             76      of a rental dwelling.
             77          (d) If a municipality's inspection of a rental dwelling, allowed under Subsection
             78      (2)(a)(ii)(B), approves the rental dwelling for purposes of a regulatory business license, a
             79      municipality may not inspect that rental dwelling during the next 36 months, unless the
             80      municipality has reasonable cause to believe that a condition in the rental dwelling is in violation
             81      of an applicable law or ordinance.
             82          (3) A municipality may not [impose the requirements of Subsection (2)(a)(ii) on the
             83      owner of a building containing two or fewer rental dwellings.]:
             84          (a) interfere with the ability of an owner of a rental dwelling to contract with a tenant
             85      concerning the payment of the cost of a utility or municipal service provided to the rental

             86      dwelling; or
             87          (b) except as required under Title 58, Chapter 56, Utah Uniform Building Act, for a
             88      structural change to the rental dwelling, or as required in an ordinance adopted before January
             89      1, 2008, require the owner of a rental dwelling to retrofit the rental dwelling with or install in
             90      the rental dwelling a safety feature that was not required when the rental dwelling was
             91      constructed.
             92          (4) Nothing in this section shall be construed to affect the rights and duties established
             93      under Title 57, Chapter 22, Utah Fit Premises Act, or to restrict a municipality's ability to
             94      enforce its generally applicable health ordinances or building code, a local health department's
             95      authority under Title 26A, Chapter 1, Local Health Departments, or the Utah Department of
             96      Health's authority under Title 26, Utah Health Code.

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