This bill establishes new provisions regarding assistance animals in residential rental housing, focusing on damage reimbursement, refundable income tax credits, and the creation of a landlord insurance risk pool. It allows landlords to seek compensation for unreimbursed damages caused by tenants' assistance animals, emotional support animals, service animals, or therapy animals through three methods: notifying the Department of Revenue for a setoff against the tenant's tax refund, claiming a refundable income tax credit for the damages, or participating in a state risk pool funded by contributions from landlords. The bill also specifies that landlords may require a refundable damage deposit for emotional support and therapy animals, but not for service animals, and clarifies that landlords are not obligated to allow non-dog emotional support or therapy animals unless required by federal law.

Additionally, the bill introduces penalties for individuals who intentionally misrepresent animals as assistance, therapy, or emotional support animals to gain rights or privileges under state or federal law, classifying such misrepresentation as a simple misdemeanor. The effective date for the bill is set for July 1, 2027.