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Committee advances bill clarifying local governments cannot cap rental application fees
Summary
Senate Bill 91 clarifies that local governments may not regulate rental application fees or deposits beyond a separate state statute capping security deposits, proponents said. The committee approved the measure by voice vote.
The City, County & Local Affairs Committee — Senate on Tuesday advanced Senate Bill 91, a bill its sponsor said clarifies existing state law to bar local regulation of rental application fees and deposits.
"There is a statute already in title 18 that deals with security deposits," Joshua Bryant, of Senate District 32, told the committee. Bryant said the referenced section, "18 16 3 0 4," caps security deposits at two months of the lease rate; the bill is intended to make clear that, outside that statute, municipalities may not enact separate rules governing application fees or deposits.
Supporters told the committee the bill responds to differences in interpretation among local authorities. Bryant said an opinion from the attorney general's office supported a broad reading that application fees are a consumer service and thus not subject to local caps. He also said deceptive practices—such as charging application fees when no unit is available—remain actionable under existing deceptive trade practices laws.
Committee members raised common concerns. Senator English asked whether the bill covered short‑term rentals; Bryant replied it did not. Senator Bridal and others noted that application fees often pay for background checks and administrative processing; Bryant and other committee members said standard consumer‑protection tools remain available if fees are charged deceptively.
A motion to pass was made and carried by voice vote; no roll‑call was recorded in the committee transcript.
The bill does not change the state statute that caps security deposits, according to testimony; it clarifies the separate treatment of application fees and deposits for local regulation purposes.
