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S.B. 42

             1     

RENTAL APPLICATION FEES

             2     
2000 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Michael G. Waddoups

             5      AN ACT RELATING TO REAL ESTATE; ALLOWING A LANDLORD TO CHARGE A FEE
             6      IN CONNECTION WITH AN APPLICATION FOR RENTAL; SETTING CERTAIN
             7      RESTRICTIONS WITH RESPECT TO THE FEE; AND PROVIDING FOR A PRIVATE RIGHT
             8      OF ACTION.
             9      This act affects sections of Utah Code Annotated 1953 as follows:
             10      ENACTS:
             11          57-17-6, Utah Code Annotated 1953
             12      Be it enacted by the Legislature of the state of Utah:
             13          Section 1. Section 57-17-6 is enacted to read:
             14          57-17-6. Rental application fee.
             15          (1) S [ An ] EXCEPT AS PROVIDED IN SUBSECTION (6), AN s owner of a residential dwelling
             15a      unit or the owner's designated agent may charge a
             16      nonrefundable rental application fee or processing fee in connection with an application for rental
             17      of the residential dwelling unit S AFTER THE APPLICANT HAS BEN NOTIFIED OF SUBSECTION (6) . s
             18           (2) The fee allowed by Subsection (1) may not exceed the S [estimated reasonable] ACTUAL s
             18a      cost of:
             19          (a) verifying the information provided by the applicant in a rental application; and
             20          (b) investigating the applicant's S CRIMINAL BACKGROUND, s credit worthiness, ability to
             20a      pay rent, and previous rental
             21      history.
             22          (3) If a fee is charged under Subsection (1) and more than one rental application for the
             23      same residential dwelling unit has been received by the owner or the owner's designated agent, the
             24      owner or the agent shall process the rental applications for that residential dwelling unit in the
             25      order of receipt.
             26          (4) If a fee is charged under Subsection (1) and the owner of the residential dwelling unit
             27      or the owner's designated agent enters into an agreement to rent that unit, the owner or the agent

             28      shall, within 15 days, return any fees paid by applicants for that unit for whom no investigation or
             29      verification has been performed.
             30          (5) (a) A person whose rental application fee or processing fee has not been returned in
             31      accordance with the provisions of Subsection (4) may bring an action in any court of competent
             32      jurisdiction to recover three times the amount of the rental application fee or processing fee paid
             33      by that person.
             34          (b) A plaintiff who brings a successful action under Subsection (5)(a) shall be entitled to
             35      recover court costs and reasonable attorney's fees as determined by the court.
             35a      S (6) A RENTAL APPLICATION FEE OR PROCESSING FEE SHALL NOT BE CHARGED IF, AT THE
             35b      TIME OF APPLICATION, THE PERSON SUBMITTING THE RENTAL APPLICATION FURNISHES THE
             35c      OWNER OF THE RESIDENTIAL DWELLING UNIT OR THE OWNER'S AGENT WITH A CERTIFIED COPY
             35d      OF THE APPLICANT'S CREDIT REPORT FROM A LICENSED CREDIT REPORTING AGENCY AND A
             35e      UTAH STATE CRIMINAL BACKGROUND REPORT ON THE APPLICANT WHICH HAVE BEEN ISSUED
             35f      WITHIN 60 DAYS FROM THE DATE OF APPLICATION. s




Legislative Review Note
    as of 1-5-00 11:45 AM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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