HB 1074 - Security Deposit Documentation Passes Senate
For your general update, HB 1074, Security Deposit Documentation bill, of which was on our “top priority” of bills we have been tracking just passed the Senate with an amendment offered by Sen. Mark Mullet. The Sponsors of the bill included Representatives Thai, Macri, Simmons, Ryu, Ramel, Peterson, Lekanoff, Alvarado, Pollet, Cortes, Gregerson, Kloba, Davis, and Ormsby.
The bill passed the Senate 29 to 19.
While we had asked for further amendments on HB 1074 to fix issues with carpet cleaning, many of our changes are reflected in the bill including the ability to do work oneself and the ability to use estimates in accounting for security deposits.
Additionally, we were able to extend the security deposit return time from 21 to 30 days.
HB 1074 – Security Deposit Documentation
- Extends the timeline for a landlord to provide a statement and documentation for retaining any portion of a tenant deposit from 21 days to 30 days.
- Requires a landlord to substantiate the cost of any damages withheld from a tenant deposit with repair estimates, invoices, or other documentation.
- Prohibits a landlord from withholding any portion of a tenant deposit for certain items.
- Establishes a three-year statute of limitations for a landlord to file a lawsuit against a tenant to recover sums exceeding the amount of the damage deposit.
- Modifies the time limit for a landlord to take action against a tenant for amounts owed in excess of the deposit from 1-year to 3-years.
- Applies the time limit only to lawsuits filed against the tenant, and to tenancies initiated on or after the new documentation requirements take effect.
Senate Floor Amendment
- Clarifies the definition for documentation as it relates to substantiating damage claims and ensures the definition is consistent throughout the act.
The bill is now on its way back to the House for concurrence on the Senate amendment.
We will further update you on this legislation.