Colorado HB 19-1106 - Concerning the Rental Application Process for Prospective Tenants.
Seventy-second
General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO.
19-0582.01 Richard Sweetman x4333 HOUSE BILL
19-1106
HOUSE
SPONSORSHIP
Titone
and Gonzales-Gutierrez, Benavidez, Buckner, Coleman,
Duran, Galindo, Herod, Jackson,
Jaquez Lewis, Kennedy, Lontine, McLachlan, Singer, Sirota, Valdez A., Weissman
SENATE SPONSORSHIP
Pettersen,
House
Committees Senate
Committees
Business Affairs and Labor
A BILL FOR
AN ACT
101
CONCERNING THE RENTAL APPLICATION PROCESS FOR PROSPECTIVE
102
TENANTS.
Bill Summary
(Note: This summary applies to this bill as introduced and
does not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that applies
to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
The bill states
that a landlord may not charge a prospective tenant a rental application fee
unless the landlord uses the entire amount of the fee to cover the landlord's
costs in processing the rental application. A landlord also may not charge a
prospective tenant a rental application fee that is in a different amount than
a rental application fee charged to another prospective tenant who applies to
rent:
Shading denotes
HOUSE amendment. Double underlining denotes SENATE amendment.
Capital
letters or bold & italic numbers indicate new material to be added to
existing statute.
Dashes
through the words indicate deletions from existing statute.
!
If the landlord offers more than one
dwelling unit for rent at the same time, any other dwelling unit offered by the
landlord.
The bill requires a
landlord to provide to any prospective tenant who has paid a rental application
fee either a disclosure of the landlord's anticipated expenses for which the
fee will be used or a receipt that itemizes the landlord's actual expenses
incurred.
The bill requires
that, before accepting a rental application or collecting a rental application
fee from a prospective tenant, a landlord shall give the prospective tenant
written notice of the landlord's tenant selection criteria and the grounds upon
which a rental application may be denied. If a landlord uses rental history or
credit history as criteria in consideration of an application, the landlord
shall neither inquire into nor consider any rental history or credit history
beyond 7 years immediately preceding the date of the application.
If a landlord denies
a rental application based on any of certain described grounds, the landlord
shall provide the prospective tenant a written notice of the denial that states
the reasons for the denial.
A landlord who
violates any of the requirements created in the bill is liable to the person
who is charged a rental application fee for twice the amount of the rental
application fee, plus court costs and reasonable attorney fees.
1
Be it enacted by the General Assembly of the State of
Colorado:
2
SECTION 1. In Colorado Revised Statutes, add
part 9 to article
3 12 of title 38 as follows:
4
|
PART 9
|
5
|
RENTAL APPLICATION FAIRNESS ACT
|
6
38-12-901. Short title. THE SHORT
TITLE OF THIS PART 9 IS THE
7
"RENTAL APPLICATION FAIRNESS ACT".
8
38-12-902.
Definitions. AS USED IN THIS PART 9, UNLESS THE
9
CONTEXT OTHERWISE REQUIRES:
10
(1) "DWELLING UNIT" MEANS A
STRUCTURE OR THE PART OF A
11
STRUCTURE THAT IS USED AS A HOME, RESIDENCE, OR SLEEPING
PLACE.
12
(2) "LANDLORD" MEANS THE
OWNER,
MANAGER, LESSOR, OR
-2- HB19-1106
2
(3) "RENTAL AGREEMENT" MEANS ANY
AGREEMENT,
WRITTEN
OR
3
ORAL, BETWEEN A LANDLORD AND A TENANT EMBODYING THE TERMS AND
4
CONDITIONS CONCERNING THE USE AND OCCUPANCY OF A DWELLING
UNIT.
5
(4) "RENTAL APPLICATION" MEANS ANY
INFORMATION,
WRITTEN
6
OR ORAL, SUBMITTED TO A LANDLORD BY A PROSPECTIVE TENANT FOR THE
7
PURPOSE OF ENTERING INTO A RENTAL AGREEMENT.
8
(5) "RENTAL
APPLICATION FEE" MEANS
ANY SUM OF MONEY,
9 HOWEVER DENOMINATED,
THAT IS CHARGED OR ACCEPTED BY A
10
LANDLORD FROM A PROSPECTIVE TENANT IN CONNECTION WITH THE
11
PROSPECTIVE TENANT'S SUBMISSION OF A RENTAL APPLICATION.
12
(6) "TENANT" MEANS A
PERSON ENTITLED UNDER A RENTAL
13
AGREEMENT TO OCCUPY A DWELLING UNIT TO THE EXCLUSION OF
OTHERS.
14 38-12-903. Rental application fee - limitations. (1) A
15
LANDLORD SHALL NOT CHARGE A PROSPECTIVE TENANT A RENTAL
16
APPLICATION FEE UNLESS THE LANDLORD USES THE ENTIRE AMOUNT
OF
17
THE FEE TO COVER THE LANDLORD'S COSTS IN
PROCESSING THE RENTAL
18
APPLICATION. THE LANDLORD'S COSTS MAY BE BASED ON:
19
(a) THE ACTUAL EXPENSE THE LANDLORD INCURS IN PROCESSING
20
THE RENTAL APPLICATION; OR
21
(b) THE AVERAGE
EXPENSE THE LANDLORD
INCURS PER
22
PROSPECTIVE TENANT IN THE COURSE OF PROCESSING MULTIPLE
RENTAL
23
APPLICATIONS.
24
(2) A LANDLORD SHALL NOT CHARGE A PROSPECTIVE TENANT A
25
RENTAL APPLICATION FEE THAT IS IN A DIFFERENT AMOUNT THAN A
26
RENTAL APPLICATION FEE CHARGED TO ANOTHER PROSPECTIVE TENANT
27
WHO APPLIES TO RENT:
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2
(b) IF THE LANDLORD OFFERS MORE THAN ONE DWELLING UNIT FOR
3
RENT AT THE SAME TIME, ANY OTHER DWELLING UNIT OFFERED BY
THE
4
LANDLORD.
5
(3) (a) A LANDLORD SHALL PROVIDE TO ANY PROSPECTIVE TENANT
6
WHO HAS PAID A RENTAL APPLICATION FEE EITHER A DISCLOSURE OF
THE
7
LANDLORD'S ANTICIPATED EXPENSES FOR WHICH THE FEE WILL BE USED OR
8
A RECEIPT THAT ITEMIZES THE LANDLORD'S ACTUAL
EXPENSES INCURRED.
9 IF A LANDLORD CHARGES AN
AMOUNT BASED ON THE AVERAGE COST OF
10
PROCESSING THE RENTAL APPLICATION, THE
LANDLORD SHALL INCLUDE
11
INFORMATION REGARDING HOW THAT AVERAGE RENTAL APPLICATION
FEE
12
IS DETERMINED.
13
(b) A LANDLORD
SHALL PROVIDE EVERY PROSPECTIVE TENANT
14
WITH A RECEIPT FOR ANY APPLICATION FEE RECEIVED. THE LANDLORD
15
MAY PROVIDE A PROSPECTIVE TENANT AN ELECTRONIC RECEIPT
UNLESS
16
THE PROSPECTIVE TENANT REQUESTS A PAPER RECEIPT, IN WHICH
CASE
17
THE LANDLORD SHALL PROVIDE THE PROSPECTIVE TENANT A PAPER
18
RECEIPT.
19
38-12-904. Rental
applications - required disclosures to
20
prospective tenants - eligibility requirements - denial
notice -
21
acknowledgment of receipt. (1) BEFORE ACCEPTING
A RENTAL
22
APPLICATION OR COLLECTING
A RENTAL APPLICATION FEE
FROM A
23
PROSPECTIVE TENANT, A LANDLORD SHALL GIVE THE
PROSPECTIVE TENANT
24
WRITTEN NOTICE OF THE LANDLORD'S TENANT
SELECTION CRITERIA AND
25
THE GROUNDS UPON WHICH A RENTAL APPLICATION MAY BE DENIED. IF
26
ANY OF THE FOLLOWING ARE GROUNDS FOR DENIAL, THEY MUST
BE
27
CLEARLY STATED IN THE NOTICE:
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2
(I) CRIMINAL HISTORY;
3
(II) ADDRESS HISTORY;
4
(III) RENTAL HISTORY;
5
(IV) CREDIT HISTORY; OR
6
(V) CURRENT INCOME;
7
(b) THE PROSPECTIVE TENANT'S FAILURE TO PROVIDE ACCURATE
8
OR COMPLETE INFORMATION IN THE RENTAL APPLICATION; OR
9
(c) THE PROSPECTIVE
TENANT'S FAILURE TO
PAY THE RENTAL
10
APPLICATION FEE IN THE AMOUNT SPECIFIED IN THE NOTICE.
11
(2) IF A LANDLORD USES RENTAL HISTORY OR CREDIT HISTORY AS
12
CRITERIA IN CONSIDERATION OF AN APPLICATION, THE
LANDLORD SHALL
13
NEITHER INQUIRE INTO NOR CONSIDER ANY RENTAL HISTORY OR
CREDIT
14
HISTORY BEYOND SEVEN YEARS IMMEDIATELY PRECEDING THE DATE OF
15
THE APPLICATION.
16
(3) IF A LANDLORD
DENIES A RENTAL APPLICATION BASED ON
17
GROUNDS DESCRIBED IN SUBSECTION (1) OF THIS
SECTION, THE
LANDLORD
18
SHALL PROVIDE THE PROSPECTIVE TENANT A WRITTEN NOTICE OF THE
19
DENIAL THAT STATES THE REASONS FOR THE DENIAL. IF THE
SPECIFIC
20
SCREENING CRITERIA CANNOT BE DIRECTLY CITED BECAUSE OF THE
USE OF
21
A PROPRIETARY SCREENING SYSTEM, THE
LANDLORD SHALL INSTEAD
22
PROVIDE THE PROSPECTIVE TENANT WITH A COPY OF THE REPORT
FROM
23
THE SCREENING COMPANY THAT USES THE PROPRIETARY SCREENING
24
SYSTEM. A LANDLORD MAY PROVIDE
A PROSPECTIVE TENANT
AN
25
ELECTRONIC
VERSION OF THE
DENIAL NOTICE REQUIRED
IN THIS
26
SUBSECTION (3) UNLESS THE PROSPECTIVE TENANT REQUESTS A PAPER
27
DENIAL NOTICE, IN WHICH CASE THE LANDLORD SHALL
PROVIDE THE
-5- HB19-1106
2
38-12-905. Violations - penalties. A LANDLORD WHO
VIOLATES
3
ANY PROVISION OF THIS PART 9 IS LIABLE
TO THE PERSON WHO IS CHARGED
4
A RENTAL APPLICATION FEE FOR TWICE THE AMOUNT OF THE RENTAL
5
APPLICATION FEE, PLUS COURT COSTS AND REASONABLE
ATTORNEY FEES.
6 SECTION 2. Act subject to petition - effective date
-
7
applicability. (1) This act takes effect at 12:01
a.m. on the day following
8 the expiration of the
ninety-day period after final adjournment of the
9 general assembly (August 2, 2019, if
adjournment sine die is on May 3,
10
2019); except that, if a referendum petition is filed
pursuant to section 1
11
(3) of article V of the state constitution against this act
or an item, section,
12
or part of this act within such period, then the act, item,
section, or part
13
will not take effect unless approved by the people at the
general election
14
to be held in November 2020 and, in such case, will take
effect on the
15
date of the official declaration of the vote thereon by the
governor.
16
(2) This act applies to rental applications submitted on or
after the
17
applicable effective date of this act.
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