Chief Sponsor: Gage Froerer

Senate Sponsor: Daniel W. Thatcher


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

28     Utah Code Sections Affected:
29     AMENDS:
30          10-1-203.5, as enacted by Laws of Utah 2012, Chapter 289

32     Be it enacted by the Legislature of the state of Utah:
33          Section 1. Section 10-1-203.5 is amended to read:
34          10-1-203.5. Disproportionate rental fee -- Good landlord training program -- Fee
35     reduction.
36          (1) As used in this section:
37          (a) "Business" means the rental of one or more residential units within a municipality.
38          (b) "Disproportionate rental fee" means a fee adopted by a municipality to recover its
39     disproportionate costs of providing municipal services to residential rental units compared to
40     similarly-situated owner-occupied housing.
41          (c) "Disproportionate rental fee reduction" means a reduction of a disproportionate
42     rental fee as a condition of complying with the requirements of a good landlord training
43     program.
44          (d) "Exempt business" means the rental of a residential unit within a single structure
45     that contains:
46          (i) no more than four residential units; and
47          (ii) one unit occupied by the owner.
48          (e) "Exempt landlord" means a residential landlord who demonstrates to a
49     municipality:
50          (i) completion of any live good landlord training program offered by any other Utah
51     city that offers a good landlord program;
52          (ii) that the residential landlord has a current professional designation of "property
53     manager"; or
54          (iii) compliance with a requirement described in Subsection [(4)] (6).
55          (f) "Good landlord training program" means a program offered by a municipality to
56     encourage business practices that are designed to reduce the disproportionate cost of municipal
57     services to residential rental units by offering a disproportionate rental fee reduction for any
58     residential landlord who:

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

90          (3) A municipality may not:
91          (a) impose a disproportionate rental fee on an exempt business;
92          (b) require a residential landlord to deny tenancy to an individual released from
93     probation or parole whose conviction date occurred more than four years before the date of
94     tenancy; [or]
95          (c) without cause and notice, require a residential landlord to submit to a random
96     building inspection[.];
97          (d) unless agreed to by a residential landlord and in compliance with state and federal
98     law, collect from a residential landlord or retain:
99          (i) a tenant's consumer report, as defined in 15 U.S.C. Sec. 1681a, in violation of 15
100     U.S.C. Sec. 1681b as amended;
101          (ii) a tenant's criminal history record information in violation of Section 53-10-108; or
102          (iii) a copy of an agreement between the residential landlord and a tenant regarding the
103     tenant's term of occupancy, rent, or any other condition of occupancy;
104          (e) require that any documents required from the landlord be notarized; or
105          (f) prohibit a residential landlord from passing on to the tenant the license or
106     disproportionate fee.
107          (4) Nothing in this section shall limit:
108          (a) a municipality's right to audit and inspect an exempt residential landlord's records to
109     ensure compliance with a disproportionate rental fee reduction program; or
110          (b) the right of a municipality with a short-term or vacation rental ordinance to review
111     an owner's rental agreement to verify compliance with the municipality's ordinance.
112          (5) Notwithstanding Section 10-11-2, a residential landlord may provide the name and
113     address of a person to whom all correspondence regarding the property shall be sent. If the
114     landlord provides the name and address in writing, the municipality shall provide all further
115     correspondence regarding the property to the designated person. The municipality may also
116     provide copies of notices to the residential landlord.
117          [(4)] (6) In addition to a requirement or qualification described in Subsection (1)(e), a
118     municipality may recognize a good landlord training program described in its ordinance.
119          [(5)] (7) (a) If a municipality adopts a good landlord program, the municipality shall
120     provide an appeal procedure affording due process of law to a residential landlord who is

121     denied a disproportionate rental fee reduction.
122          (b) A municipality may not adopt a new disproportionate rental fee unless the
123     municipality provides a disproportionate rental fee reduction.
124          (8) A property manager who represents an owner of property that qualifies for a
125     municipal disproportionate rental fee may not be restricted from simultaneously representing
126     another owner of property that does not qualify for a municipal disproportionate rental fee.

Legislative Review Note
Office of Legislative Research and General Counsel