The proposed bill, Substitute House Bill No. 6891, seeks to limit the amount of security deposit that landlords can require from tenants to a maximum of one month's rent, regardless of the tenant's age. This change replaces the current law, which allows landlords to demand up to two months' rent for tenants under the age of 62 and one month's rent for those aged 62 and older. Additionally, the bill mandates that if a landlord has collected a security deposit exceeding one month's rent from any tenant, they must return the excess amount upon the tenant's request, a requirement that previously only applied to tenants who turned 62 after paying the deposit.

The bill will take effect on July 1, 2025, and will apply to rental agreements entered into on or after that date. The legislative changes include the deletion of the age-specific security deposit limits and the insertion of a uniform cap of one month's rent for all tenants. The bill is expected to have no fiscal impact on the state or municipalities, as the state does not act as a direct residential landlord.