Committee advances landlord-tenant bill that allows electronic deposit returns and tightens court guidance

The House Business, Labor and Commerce Committee on Wednesday favorably recommended HB 480, the Landlord Communication Amendments, after hearing sponsor remarks and testimony from a tenant‑landlord attorney.

Representative Shallenberger, the bill sponsor, said the measure updates existing code to reflect current practices and to provide clearer guidance to judges handling eviction and restitution matters. The bill allows deposit returns to be delivered electronically when the tenant has provided an electronic address, standardizes the post-eviction timeline to three days unless the parties agree otherwise, and removes redundant language that gives judges broad discretion to handle additional matters.

The bill’s sponsor told the committee that current statute requires deposit returns to be mailed and that many landlords now use electronic payment and refund methods. "It just says it has to be mailed. A lot of people are sending electronically, so we're just adding in some language as payments can be made electronically," Representative Shallenberger said.

Attorney Nick Lloyd, who testified in support, described inconsistent application of the statute across counties and judges. "One of the hallmarks of our legal system is consistent application of the law," Lloyd said. He gave examples from his eviction practice in which judges granted tenants longer vacancy periods than the statute's three-day baseline, and said the bill would reduce that inconsistency by narrowing the exception language that has expanded in some courts.

Committee member Representative Sawyer asked a clarifying question about whether the electronic-delivery option applies to eviction notices or only to deposit returns; the sponsor and witness confirmed the electronic option is limited to deposit refunds when the tenant has provided an electronic address. "There is language in here that says, provided electronically by a manner provided by the tenant," Lloyd said. "So that has to be an email address that the tenant has given to the landlord in order to open up that avenue."

The committee adopted a technical substitute amendment by voice vote and then adopted the amended bill by voice vote. Representative Sawyer moved the amendment and later moved the favorable recommendation; the committee chair announced the bill passes after the voice vote.

The bill now moves forward as amended.