Chief Sponsor: Steve Eliason

Senate Sponsor: Jacob L. Anderegg


8     General Description:
9          This bill amends provisions related to the Good Landlord Program.
10     Highlighted Provisions:
11          This bill:
12          ▸     prohibits a municipality from imposing a disproportionate rental fee on a residential
13     rental unit that is subject to an association; and
14          ▸     makes technical and conforming changes.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          None
19     Utah Code Sections Affected:
20     AMENDS:
21          10-1-203.5, as last amended by Laws of Utah 2017, Chapter 136

23     Be it enacted by the Legislature of the state of Utah:
24          Section 1. Section 10-1-203.5 is amended to read:
25          10-1-203.5. Disproportionate rental fee -- Good landlord training program -- Fee
26     reduction.
27          (1) As used in this section:

28          (a) "Business" means the rental of one or more residential units within a municipality.
29          (b) "Disproportionate rental fee" means a fee adopted by a municipality to recover its
30     disproportionate costs of providing municipal services to residential rental units compared to
31     similarly-situated owner-occupied housing.
32          (c) "Disproportionate rental fee reduction" means a reduction of a disproportionate
33     rental fee as a condition of complying with the requirements of a good landlord training
34     program.
35          (d) "Exempt business" means the rental of a residential unit [within a single structure
36     that contains] that:
37          (i) contains within a single structure:
38          [(i)] (A) no more than four residential units; and
39          [(ii)] (B) one unit occupied by the owner[.]; or
40          (ii) is subject to an association under Title 57, Chapter 8, Condominium Ownership
41     Act, or Title 57, Chapter 8a, Community Association Act.
42          (e) "Exempt landlord" means a residential landlord who demonstrates to a
43     municipality:
44          (i) completion of any live good landlord training program offered by any other Utah
45     city that offers a good landlord program;
46          (ii) that the residential landlord has a current professional designation of "property
47     manager"; or
48          (iii) compliance with a requirement described in Subsection (6).
49          (f) "Good landlord training program" means a program offered by a municipality to
50     encourage business practices that are designed to reduce the disproportionate cost of municipal
51     services to residential rental units by offering a disproportionate rental fee reduction for any
52     residential landlord who:
53          (i) (A) completes a landlord training program provided by the municipality; or
54          (B) is an exempt landlord;
55          (ii) implements measures to reduce crime in rental housing as specified in a municipal
56     ordinance or policy; and
57          (iii) operates and manages rental housing in accordance with an applicable municipal
58     ordinance.

59          (g) "Municipal services" means:
60          (i) public utilities;
61          (ii) police;
62          (iii) fire;
63          (iv) code enforcement;
64          (v) storm water runoff;
65          (vi) traffic control;
66          (vii) parking;
67          (viii) transportation;
68          (ix) beautification; or
69          (x) snow removal.
70          (h) "Municipal services study" means a study of the cost of all municipal services to
71     rental housing that:
72          (i) are reasonably attributable to the rental housing; and
73          (ii) exceed the municipality's cost to serve similarly-situated, owner-occupied housing.
74          (i) "Residential landlord" means:
75          (i) the owner of record of residential real property that is leased or rented to another; or
76          (ii) a third-party provider that has an agreement with the owner of record to manage the
77     owner's real property.
78          (2) The legislative body of a municipality may charge and collect a disproportionate
79     rental fee on a business that causes disproportionate costs to municipal services if the
80     municipality:
81          (a) has performed a municipal services study; and
82          (b) adopts a disproportionate rental fee that does not exceed the amount that is justified
83     by the municipal services study on a per residential rental unit basis.
84          (3) A municipality may not:
85          (a) impose a disproportionate rental fee on an exempt business;
86          (b) require a residential landlord to deny tenancy to an individual based on the
87     individual's criminal history unless a halfway house, as that term is defined in Section
88     51-9-412, is located within the municipality;
89          (c) without cause and notice, require a residential landlord to submit to a random

90     building inspection;
91          (d) unless agreed to by a residential landlord and in compliance with state and federal
92     law, collect from a residential landlord or retain:
93          (i) a tenant's consumer report, as defined in 15 U.S.C. Sec. 1681a, in violation of 15
94     U.S.C. Sec. 1681b as amended;
95          (ii) a tenant's criminal history record information in violation of Section 53-10-108; or
96          (iii) a copy of an agreement between the residential landlord and a tenant regarding the
97     tenant's term of occupancy, rent, or any other condition of occupancy;
98          (e) require that any documents required from the landlord be notarized; or
99          (f) prohibit a residential landlord from passing on to the tenant the license or
100     disproportionate fee.
101          (4) Nothing in this section shall limit:
102          (a) a municipality's right to audit and inspect an exempt residential landlord's records to
103     ensure compliance with a disproportionate rental fee reduction program; or
104          (b) the right of a municipality with a short-term or vacation rental ordinance to review
105     an owner's rental agreement to verify compliance with the municipality's ordinance.
106          (5) Notwithstanding Section 10-11-2, a residential landlord may provide the name and
107     address of a person to whom all correspondence regarding the property shall be sent. If the
108     landlord provides the name and address in writing, the municipality shall provide all further
109     correspondence regarding the property to the designated person. The municipality may also
110     provide copies of notices to the residential landlord.
111          (6) In addition to a requirement or qualification described in Subsection (1)(e), a
112     municipality may recognize a good landlord training program described in its ordinance.
113          (7) (a) If a municipality adopts a good landlord program, the municipality shall provide
114     an appeal procedure affording due process of law to a residential landlord who is denied a
115     disproportionate rental fee reduction.
116          (b) A municipality may not adopt a new disproportionate rental fee unless the
117     municipality provides a disproportionate rental fee reduction.
118          (8) A property manager who represents an owner of property that qualifies for a
119     municipal disproportionate rental fee may not be restricted from simultaneously representing
120     another owner of property that does not qualify for a municipal disproportionate rental fee.

Legislative Review Note
Office of Legislative Research and General Counsel