The proposed bill revises laws concerning residential rental application fees in Montana. It mandates that landlords or managers must reimburse applicants the application fee within 30 days if the applicant does not enter into a rental agreement. The bill allows landlords to deduct specific out-of-pocket costs from the refund, provided they give written notice of these costs at the time of fee collection. Additionally, landlords may waive the application fee if they accept a credit or criminal background check from the applicant that is less than six months old.

Furthermore, the bill establishes that credit and criminal background checks must be provided to applicants within seven days and remain valid for six months. It also stipulates that landlords who wrongfully withhold application fees can be liable for damages in a civil action, with the burden of proof resting on the landlord. The bill includes definitions for "application fee" and "cost," clarifying the parameters of allowable deductions. The act is set to take effect immediately upon passage and will apply to application fees collected after its effective date.