Chief Sponsor: Gage Froerer

Senate Sponsor: ____________


8     General Description:
9          This bill amends provisions related to a good landlord program.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines "residential landlord";
13          ▸     prohibits a municipality from requiring a residential landlord to deny tenancy to
14     certain individuals;
15          ▸     prohibits a municipality from requiring a residential landlord to provide certain
16     information on or contracts with a tenant;
17          ▸     permits a municipality to require a copy of an agreement between the owner of
18     record of real property and a third-party provider who manages the property;
19          ▸     if a residential landlord owns multiple properties, requires a municipality to charge
20     a disproportionate rental fee reduction for each property that is in compliance; and
21          ▸     makes technical and conforming amendments.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          None
26     Utah Code Sections Affected:
27     AMENDS:

28          10-1-203.5, as enacted by Laws of Utah 2012, Chapter 289

30     Be it enacted by the Legislature of the state of Utah:
31          Section 1. Section 10-1-203.5 is amended to read:
32          10-1-203.5. Disproportionate rental fee -- Good landlord training program -- Fee
33     reduction.
34          (1) As used in this section:
35          (a) "Business" means the rental of one or more residential units within a municipality.
36          (b) "Disproportionate rental fee" means a fee adopted by a municipality to recover its
37     disproportionate costs of providing municipal services to residential rental units compared to
38     similarly-situated owner-occupied housing.
39          (c) "Disproportionate rental fee reduction" means a reduction of a disproportionate
40     rental fee as a condition of complying with the requirements of a good landlord training
41     program.
42          (d) "Exempt business" means the rental of a residential unit within a single structure
43     that contains:
44          (i) no more than four residential units; and
45          (ii) one unit occupied by the owner.
46          (e) "Exempt landlord" means a residential landlord who demonstrates to a
47     municipality:
48          (i) completion of any live good landlord training program offered by any other Utah
49     city that offers a good landlord program;
50          (ii) that the residential landlord has a current professional designation of "property
51     manager"; or
52          (iii) compliance with a requirement described in Subsection (4).
53          (f) "Good landlord training program" means a program offered by a municipality to
54     encourage business practices that are designed to reduce the disproportionate cost of municipal
55     services to residential rental units by offering a disproportionate rental fee reduction for any
56     residential landlord who:
57          (i) (A) completes a landlord training program provided by the municipality; or
58          (B) is an exempt landlord;

59          (ii) implements measures to reduce crime in rental housing as specified in a municipal
60     ordinance or policy; and
61          (iii) operates and manages rental housing in accordance with an applicable municipal
62     ordinance.
63          (g) "Municipal services" means:
64          (i) public utilities;
65          (ii) police;
66          (iii) fire;
67          (iv) code enforcement;
68          (v) storm water runoff;
69          (vi) traffic control;
70          (vii) parking;
71          (viii) transportation;
72          (ix) beautification; or
73          (x) snow removal.
74          (h) "Municipal services study" means a study of the cost of all municipal services to
75     rental housing that:
76          (i) are reasonably attributable to the rental housing; and
77          (ii) exceed the municipality's cost to serve similarly-situated, owner-occupied housing.
78          (i) "Residential landlord" means:
79          (i) the owner of record of residential real property that is leased or rented to another; or
80          (ii) a third-party provider that has an agreement with the owner of record to manage the
81     owner's real property.
82          (2) The legislative body of a municipality may charge and collect a disproportionate
83     rental fee on a business that causes disproportionate costs to municipal services if the
84     municipality:
85          (a) has performed a municipal services study; and
86          (b) adopts a disproportionate rental fee that does not exceed the amount that is justified
87     by the municipal services study on a per residential rental unit basis.
88          (3) A municipality may not:
89          (a) impose a disproportionate rental fee on an exempt business;

90          (b) require a residential landlord to deny tenancy to an individual released from
91     probation or parole:
92          (i) whose conviction date for an offense described in Section 58-37-8 or 76-3-203.5
93     occurred more than four years before the date of tenancy; or
94          (ii) whose conviction was for an offense other than an offense described in Section
95     58-37-8 or 76-3-203.5;
96          (c) without cause and notice, require a residential landlord to submit to a random
97     building inspection[.]; or
98          (d) require a residential landlord to:
99          (i) collect and provide to the municipality or an agent of the municipality a tenant's
100     consumer report, as defined in 15 U.S.C. Sec. 1681a, in violation of 15 U.S.C. Sec. 1681b as
101     amended;
102          (ii) further disseminate to the municipality or an agent of the municipality a tenant's
103     criminal history record information in violation of Section 53-10-108; or
104          (iii) provide a copy of an agreement between the residential landlord and a tenant
105     regarding the tenant's term of occupancy, rent, or any other condition of occupancy.
106          (4) A municipality:
107          (a) may require a copy of an agreement between the owner of record of real property
108     and a third-party provider who agrees to manage the owner's real property; and
109          (b) may not require that a copy provided under Subsection (4)(a) be notarized.
110          [(4)] (5) In addition to a requirement or qualification described in Subsection (1)(e), a
111     municipality may recognize a landlord training described in its ordinance.
112          [(5)] (6) (a) If a municipality adopts a good landlord program, the municipality shall
113     provide an appeal procedure affording due process of law to a residential landlord who is
114     denied a disproportionate rental fee reduction.
115          (b) A municipality may not adopt a new disproportionate rental fee unless the
116     municipality provides a disproportionate rental fee reduction.
117          (7) If a residential landlord whose business includes more than one property within a
118     municipality, excluding an exempt business on a property, completes, unless exempt, a
119     landlord training program in accordance with Subsection (1)(f)(i)(A), but fails to implement
120     measures to reduce crime as described in Subsection (1)(f)(ii) on a property or fails to operate

121     and manage a property in accordance with Subsection (1)(f)(iii), the municipality:
122          (a) may charge a disproportionate rental fee for each property for which the residential
123     landlord failed to implement measures to reduce crime under Subsection (1)(f)(ii) or failed to
124     operate and manage the rental housing in accordance with applicable municipal ordinance
125     under Subsection (1)(f)(iii); and
126          (b) shall charge a disproportionate rental fee reduction to any remaining property for
127     which the residential landlord has complied with Subsections (1)(f)(ii) and (iii).

Legislative Review Note
     as of 2-3-15 5:45 PM

Office of Legislative Research and General Counsel