H.B. 290

1

MUNICIPAL OVERSIGHT OF RENTAL
2 DWELLINGS
3 2008 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Gage Froerer
6 Senate Sponsor: Michael G. Waddoups
7
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 for the inspection of a rental dwelling;
19 . interfering with the ability of an owner of a rental dwelling to contract with a
20 tenant concerning the payment of utility and municipal service costs;
21 . regulating the practice of submetering, ratio utility billing, or other utility cost
22 allocation method;
23 . requiring the owner of a rental dwelling to retrofit a rental dwelling with or
24 install in a rental dwelling a safety feature not required at the time the rental
25 dwelling was constructed, other than a smoke detector; or
26 . imposing a civil or criminal penalty on the owner of a rental dwelling for a
27 safety device controlled by a tenant; and

28 . makes technical changes.
29 Monies Appropriated in this Bill:
30 None
31 Other Special Clauses:
32 None
33 Utah Code Sections Affected:
34 AMENDS:
35 10-8-4, as last amended by Laws of Utah 1997, Chapter 267
36 10-8-85.5, as last amended by Laws of Utah 2000, Chapter 172
37
38 Be it enacted by the Legislature of the state of Utah:
39 Section 1. Section 10-8-4 is amended to read:
40 10-8-4. Special taxes and licenses.
41 (1) Municipal legislative bodies may:
42 (a) subject to Subsection (2) [and except as provided in Subsection 10-8-85.5 (3)], fix
43 the amount, terms, and manner of issuing licenses; and
44 (b) consistent with general law, provide the manner and form in which special taxes are
45 levied and collected.
46 (2) (a) Municipal legislative bodies may not discriminate between resident community
47 businesses and nonresident community businesses in establishing license requirements.
48 (b) Municipal legislative bodies may not impose motor vehicle delivery license fees on
49 persons or entities who:
50 (i) are licensed as dealers in another municipality; or
51 (ii) do not have a permanent business location in the municipality.
52 Section 2. Section 10-8-85.5 is amended to read:
53 10-8-85.5. "Rental dwelling" defined -- Municipality may require a business
54 license or a regulatory business license and inspections -- Exception.
55 (1) As used in this section, "rental dwelling" means a building or portion of a building
56 that is:
57 (a) used or designated for use as a residence by one or more persons; and
58 (b) (i) available to be rented, loaned, leased, or hired out for a period of one month or

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

90 constructed, other than a smoke detector; or
91 (d) impose a civil or criminal penalty on an owner of a rental dwelling for a safety
92 device controlled by a tenant of the rental dwelling.
93 (4) Nothing in this section shall be construed to affect the rights and duties established
94 under Title 57, Chapter 22, Utah Fit Premises Act, or to restrict a municipality's ability to
95 enforce its generally applicable health ordinances or building code, a local health department's
96 authority under Title 26A, Chapter 1, Local Health Departments, or the Utah Department of
97 Health's authority under Title 26, Utah Health Code.




Legislative Review Note
as of 1-10-08 6:47 AM

Office of Legislative Research and General Counsel