Legislative Session - 4th Legislative Update - 02/12/24

Monday, February 12, 2024

Nothing major has changed in week 4 at the legislature. The session is shaping up to be a successful one for our industry. Most of the issues we are supporting are marching through the legislative process, and we are continuing to monitor for any new issues that may arise. 

RHA Day-at-the-Hill

Right now, under Utah law, a tenant can have an eviction record expunged if they pay back any amount owed to a landlord and if the landlord agrees to have the eviction expunged. There are previous bills we have addressed that deal with this process. However, SB 184 looks to specifically create a path for drug-related evictions to be expungable.

There are some considerable concessions made in this bill; the landlord would have to consent, and the individual seeking expungement would have to be crime/drug-free for a specific amount of time; however, the RHA government affairs committee believes it is still a right for a future landlord to know about such records.

First, drug-related evictions are extremely rare. Second, drug-related evictions usually deal with extreme situations that pose significant risks to a future housing provider. This bill is newer, so updates will be provided as conversations and our efforts at the legislature address this issue. 

Senator Cullimore’s fair housing bill looks to address two things:

(1) remove the business/LLC barrier to the small landlord exemption of the Fair Housing Act. Under both the state and federal Fair Housing Act, small landlords are allowed SOME exemptions to the Fair Housing Act (to navigate these exemptions, please seek advice from your legal counsel). However, state law does not allow a small landlord to use these exemptions if they are operating under the protection of a state-registered business entity (i.e., C-Corp, LLC). This bill removes that language and brings the state law in line with the federal law. If passed, a small landlord can operate under an LLC and still be exempt (if they otherwise qualify).

(2) This bill addresses technical language that will make it clear that the Utah Attorney General’s office can negotiate with landlord attorneys if they are litigating a fair housing complaint. Under the current statute, there is some ambiguity about the authority of the AG’s office on their negotiation and settlement authority; this bill resolves that ambiguity. 

Summary of other Bills and Recent Activity

HB 169 – Rental Property Disclosure – this bill was pulled as part of our negotiations. The RHA will be creating education and forms to help housing providers understand their responsibilities and liability when it comes to the conditions of our property when a tenant moves in with dangerous conditions.

HB 174 – Automatic Contract Renewal Notices – the sponsor of this bill agreed to exempt lease agreements and management agreements. Those amendments were made in committee and we are now monitoring this bill.

SB 58 – Tax Assessor Administration Amendments – this bill passed it’s house committee and has been placed on the house “consent calendar” (basically a fast track to pass the bill quickly).

SB 171 – City Business License on Rentals Amendments – This bill restricts a city’s ability to charge for a business license for a rental that is not receiving rent income. This bill passed its Senate committee and is moving through the process.  

As usual, if you are interested in updates on all of our bills, click on the link above to access the RHA’s bill tracker excel sheet.

If you are interested in being involved in our government affairs committee, which meets every Friday at 10 am during the legislative session, let us know and we will get you involved. Committee information: https://www.rhautah.org/government-affairs-committee