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7 LONG TITLE
8 General Description:
9 This bill amends provisions governing municipal regulation of a residential rental
10 dwelling.
11 Highlighted Provisions:
12 This bill:
13 ▸ prohibits a municipality from requiring:
14 • that a rental dwelling be subject to inspection as a condition for licensure;
15 • that a rental dwelling meet higher standards than standards for other residential
16 housing; and
17 • that a landlord submit to a building inspection without cause and notice.
18 Money Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 None
22 Utah Code Sections Affected:
23 AMENDS:
24 10-1-203.5, as enacted by Laws of Utah 2012, Chapter 289
25 10-8-85.5, as last amended by Laws of Utah 2012, Chapter 289
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27 Be it enacted by the Legislature of the state of Utah:
28 Section 1. Section 10-1-203.5 is amended to read:
29 10-1-203.5. Disproportionate rental fee -- Good landlord training program -- Fee
30 reduction.
31 (1) As used in this section:
32 (a) "Business" means the rental of one or more residential units within a municipality.
33 (b) "Disproportionate rental fee" means a fee adopted by a municipality to recover its
34 disproportionate costs of providing municipal services to residential rental units compared to
35 similarly-situated owner-occupied housing.
36 (c) "Disproportionate rental fee reduction" means a reduction of a disproportionate
37 rental fee as a condition of complying with the requirements of a good landlord training
38 program.
39 (d) "Exempt business" means the rental of a residential unit within a single structure
40 that contains:
41 (i) no more than four residential units; and
42 (ii) one unit occupied by the owner.
43 (e) "Exempt landlord" means a residential landlord who demonstrates to a
44 municipality:
45 (i) completion of any live good landlord training program offered by any other Utah
46 city that offers a good landlord program;
47 (ii) that the residential landlord has a current professional designation of "property
48 manager"; or
49 (iii) compliance with a requirement described in Subsection (4).
50 (f) "Good landlord training program" means a program offered by a municipality to
51 encourage business practices that are designed to reduce the disproportionate cost of municipal
52 services to residential rental units by offering a disproportionate rental fee reduction for any
53 landlord who:
54 (i) (A) completes a landlord training program provided by the municipality; or
55 (B) is an exempt landlord;
56 (ii) implements measures to reduce crime in rental housing as specified in a municipal
57 ordinance or policy; and
58 (iii) operates and manages rental housing in accordance with an applicable municipal
59 ordinance.
60 (g) "Municipal services" means:
61 (i) public utilities;
62 (ii) police;
63 (iii) fire;
64 (iv) code enforcement;
65 (v) storm water runoff;
66 (vi) traffic control;
67 (vii) parking;
68 (viii) transportation;
69 (ix) beautification; or
70 (x) snow removal.
71 (h) "Municipal services study" means a study of the cost of all municipal services to
72 rental housing that:
73 (i) are reasonably attributable to the rental housing; and
74 (ii) exceed the municipality's cost to serve similarly-situated, owner-occupied housing.
75 (2) The legislative body of a municipality may charge and collect a disproportionate
76 rental fee on a business that causes disproportionate costs to municipal services if the
77 municipality:
78 (a) has performed a municipal services study; and
79 (b) adopts a disproportionate rental fee that does not exceed the amount that is justified
80 by the municipal services study on a per residential rental unit basis.
81 (3) A municipality may not:
82 (a) impose a disproportionate rental fee on an exempt business;
83 (b) require a landlord to deny tenancy to an individual released from probation or
84 parole whose conviction date occurred more than four years before the date of tenancy; or
85 (c) without cause and notice, require a landlord to submit to a [
86 inspection.
87 (4) In addition to a requirement or qualification described in Subsection (1)(e), a
88 municipality may recognize a landlord training described in its ordinance.
89 (5) (a) If a municipality adopts a good landlord program, the municipality shall provide
90 an appeal procedure affording due process of law to a landlord who is denied a
91 disproportionate rental fee reduction.
92 (b) A municipality may not adopt a new disproportionate rental fee unless the
93 municipality provides a disproportionate rental fee reduction.
94 Section 2. Section 10-8-85.5 is amended to read:
95 10-8-85.5. "Rental dwelling" defined -- Municipality may require a business
96 license or a regulatory business license and inspections -- Exception.
97 (1) As used in this section, "rental dwelling" means a building or portion of a building
98 that is:
99 (a) used or designated for use as a residence by one or more persons; and
100 (b) (i) available to be rented, loaned, leased, or hired out for a period of one month or
101 longer; or
102 (ii) arranged, designed, or built to be rented, loaned, leased, or hired out for a period of
103 one month or longer.
104 (2) (a) The legislative body of a municipality may by ordinance require the owner of a
105 rental dwelling located within the municipality:
106 (i) to obtain a business license pursuant to Section 10-1-203; or
107 (ii) (A) to obtain a regulatory business license to operate and maintain the rental
108 dwelling in accordance with Section 10-1-203.5; and
109 (B) to allow inspections of the rental dwelling if the rental dwelling contains more than
110 three units as a condition of obtaining a regulatory business license.
111 (b) A municipality may not require:
112 (i) an owner of multiple rental dwellings or multiple buildings containing rental
113 dwellings to obtain more than one regulatory business license for the operation and
114 maintenance of those rental dwellings[
115 (ii) an owner of a rental dwelling containing three or fewer units to submit to an
116 inspection of the rental dwelling as a condition of licensure; or
117 (iii) a rental dwelling to meet any standard that is stricter than a standard applied to
118 other residential housing in the municipality.
119 (c) A municipality may not charge a fee for the inspection of a rental dwelling.
120 (d) If a municipality's inspection of a rental dwelling, allowed under Subsection
121 (2)(a)(ii)(B), approves the rental dwelling for purposes of a regulatory business license, a
122 municipality may not inspect that rental dwelling except as provided for in Section 10-1-203.5.
123 (3) A municipality may not:
124 (a) interfere with the ability of an owner of a rental dwelling to contract with a tenant
125 concerning the payment of the cost of a utility or municipal service provided to the rental
126 dwelling; or
127 (b) except as required under the State Construction Code or an approved code under
128 Title 15A, State Construction and Fire Codes Act, for a structural change to the rental dwelling,
129 or as required in an ordinance adopted before January 1, 2008, require the owner of a rental
130 dwelling to retrofit the rental dwelling with or install in the rental dwelling a safety feature that
131 was not required when the rental dwelling was constructed.
132 (4) Nothing in this section shall be construed to affect the rights and duties established
133 under Title 57, Chapter 22, Utah Fit Premises Act, or to restrict a municipality's ability to
134 enforce its generally applicable health ordinances or building code, a local health department's
135 authority under Title 26A, Chapter 1, Local Health Departments, or the Utah Department of
136 Health's authority under Title 26, Utah Health Code.
Legislative Review Note
as of 12-12-14 1:48 PM
Office of Legislative Research and General Counsel