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Senate advances SB42 after extended debate over rental application fees and tenant impacts
Summary
Senate Bill 42, which would allow landlords or their agents to charge a reasonable application/background-check fee (and permit reuse of certified reports for a limited time), passed to third reading after extensive floor debate. Supporters argued fee rules protect landlords and potentially keep rents lower; opponents warned the policy could burden low‑income renters and raise discrimination and enforcement concerns.
The Utah Senate held an extended floor debate on Senate Bill 42, a measure that would permit a residential dwelling owner or designated agent to charge a nonrefundable application/background‑check fee and set conditions for when a previously obtained certified report may be reused.
Sponsor remarks (identified in debate as Senator Waddup) emphasized that the bill is permissive rather than mandatory: landlords may, but would not be required to, charge a reasonable fee. He told senators the goal is to standardize practice where some local ordinances preclude background‑check fees and to protect tenants by capping unreasonable charges. ‘‘We think that that is 100% true... We put in an amendment that says that it would be a reasonable amount and that they take them in order,’’ the sponsor said.
Opponents raised concerns the proposal would shift screening costs onto renters, disproportionately affecting students and low‑income households who may struggle to pay upfront fees. Senator Jones warned that tenants with past convictions or limited credit could be shut out of housing options. Senator Davis and others urged that background checks can create long‑term barriers for people who have served sentences and are trying to reenter society.
Several senators questioned enforcement mechanics, including how to track application order, whether applicants who are not selected would receive their money back, and whether landlords would retain copies of reports for later use. The sponsor said the bill provided for refunds if checks were not performed and that certified reports could be reused within a 60‑day period; the exact fee ceiling was not explicitly set in the text but floor discussion referenced available checks in the market from about $8 to $35 and anecdotal $50 examples.
Multiple senators disclosed conflicts of interest (ownership of rental units) during the roll call; floor tallies and individual explanations were recorded. The Senate reported that SB42 passed to the third‑reading calendar with 16 aye votes, 13 no votes and stated conflicts noted in the Journal.
The transcript shows senators agreed to pursue clarifying language (notification to applicants, definition of "reasonable," standardized forms and refund logistics) between second and third reading.
No final enactment was recorded in this session transcript; the bill was advanced for further consideration.
