SB 743 – Provides that a landlord must keep security deposits in a depository institution and changes the amount a tenant can recover when the security deposit is wrongfully withheld

• Sponsor: Curls
• LR Number: 4426S.01I
• Committee: Judiciary and Civil and Criminal Jurisprudence
• Last Action: 4/14/2016 - SCS Voted Do Pass S Judiciary and Civil and Criminal Jurisprudence Committee (4426S.02C)
• Effective Date: August 28, 2016

Current Bill Summary

SCS/SB 743 - This act states that landlords must keep all security deposits in a trust account and in a depository institution insured by an agency of the federal government, and shall not commingle the security deposits with personal funds. Any interest earned on a security deposit belongs to the landlord. These requirements shall not apply to public housing authorities or government entities acting as landlords.

Currently, if a landlord wrongfully withholds any portion of the security deposit then the tenant can recover as damages not more than twice the amount withheld. This act provides that a tenant shall recover as damages twice the amount wrongfully withheld by the landlord.

This act is identical to provisions in SS/SCS/HCS/HB 1862 (2016) and SB 717 (2016) and similar to SB 309 (2015), SB 182 (2015), HB 2283 (2014), and HB 884 (2013).

JESSI BAKER