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Utah Senate Narrowly Approves Limits on Rental Application Fees After Floor Fight
Summary
The Utah Senate on Feb. 18 approved Senate Bill 42, which caps rental application charges at the landlord’s actual cost and adds tenant-notification requirements; the measure passed after floor amendments and a divided roll call.
The Utah State Senate on Feb. 18 approved Senate Bill 42, a measure that narrows what landlords may charge applicants for screening checks and requires notification to prospective tenants about reasons for rejection.
Senate sponsor Joseph Wadhams said the bill was designed to limit charges to the "actual cost" of background and credit checks and to reduce the financial burden on existing tenants. An amendment added on the floor requires that, after an application is filed, "the applicant has been notified of subsection 6" and that tenants be told the reasons for rejection, a change the sponsor said was made at Senator Knudson’s request. "This will give them that notification," Wadhams said on the floor.
Opponents warned the change still posed real harm to low-income renters. Senator Julander said the fee could worsen homelessness: "I am totally convinced that we are increasing the number of homeless. There are many people that cannot pay this $50 fee," she said. Senator Ron Allen argued the public perception of the measure risked appearing class-based and said voters would be "shocked and dismayed" when they learn of the bill. Several senators, including Senator Knudson, supported the tenant-notification language and said it made the bill more responsible by allowing applicants to present prior credit or background checks and thereby avoid fees.
After debate and a call to question, the Senate moved to a roll-call vote; the clerk recorded 16 aye votes and 13 nay votes with one absence, and the body advanced the bill to the next stage of consideration. The bill’s floor record shows two principal floor amendments enacted: (1) an insertion to require tenant notification of reasons for rejection, and (2) replacement of the phrase "estimated reasonable" fees with a limit to "actual" cost.
Next steps: the measure was carried to the third-reading calendar for final consideration and any subsequent action required by the legislative process.
