The proposed bill, Substitute House Bill No. 6891, seeks to limit the maximum security deposit that landlords can require from tenants to one month's rent, regardless of the tenant's age. This change replaces the current law, which allows landlords to demand a security deposit of 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 landlords who have collected a security deposit exceeding one month's rent must return the excess amount to the tenant upon request, a requirement that now applies to all tenants rather than just those who turn 62 after paying the deposit.

The bill is set to 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 previous age-based 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 residential landlord.