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Committee hears bill to allow email and electronic transfers for security-deposit returns
Summary
A short, bipartisan hearing on HB 444 drew landlord and realtor support for modernizing notice and remittance rules to allow email and electronic fund transfers; the Montana Landlord Association urged a technical amendment clarifying which statutes govern notice.
Representative Paul Tuss (House District 27) opened the hearing on HB 444, saying the bill would update Montana law to permit landlords and tenants to use electronic mail and electronic funds transfer for required notices and the return of security deposits.
The bill’s supporters said the change is procedural and aimed at speeding refunds. Daniel Cox of the Montana Association of Realtors told the committee the bill “just makes things a little easier” when a forwarding address is not provided and can help get deposits back to departing tenants more quickly. Charles Lapp, a Flathead Valley landlord, said he had lost a deposit in the mail and called the electronic-return option “a super addition.”
John Sinrude of the Montana Landlord Association said the association has no conceptual objection but urged a friendly drafting amendment to avoid duplicative notice language across statutes. Sinrude recommended defining exactly where notice rules belong so landlords and tenants do not face inconsistent procedures across the Tenant-Landlord Act (chapters cited in testimony, including references to chapter 24 and chapter 33) and the Security Deposit Act references in chapter 25.
Committee members asked practical questions about how landlords would know if a tenant’s bank or forwarding address changes. The sponsor said the bill equalizes options for both parties and that the committee could work through any drafting issues. The hearing closed with the sponsor saying he would support committee technical fixes.
Next steps: HB 444 was heard; the committee did not take a final vote in the hearing record and left procedural and drafting issues to committee amendment.
