Enrolled Copy S.B. 171
1 MUNICIPAL RENTAL DWELLING LICENSING AMENDMENTS
2024 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Karen Kwan House Sponsor: Andrew Stoddard
2
3 LONG TITLE
4 General Description:
5 This bill modifies provisions of the municipal code regarding rental dwellings.
6 Highlighted Provisions:
7 This bill:
8 ▸ provides that a municipal ordinance on the licensing of an owner of a rental dwelling
9 does not apply to an owner who does not receive compensation for the use of the rental
10 dwelling.
11 Money Appropriated in this Bill:
12 None
13 Other Special Clauses:
14 None
15 Utah Code Sections Affected:
16 AMENDS:
17 10-8-85.5, as last amended by Laws of Utah 2023, Chapter 327
18
19 Be it enacted by the Legislature of the state of Utah:
20 Section 1. Section 10-8-85.5 is amended to read:
21 10-8-85.5 . "Rental dwelling" defined -- Municipality may require a business
22 license or a regulatory business license and inspections -- Exception.
23 (1) As used in this section, "rental dwelling" means a building or portion of a building that
24 is:
25 (a) used or designated for use as a residence by one or more persons; and
26 (b) (i) available to be rented, loaned, leased, or hired out for a period of one month or
27 longer; or
28 (ii) arranged, designed, or built to be rented, loaned, leased, or hired out for a period
S.B. 171 Enrolled Copy
29 of one month or longer.
30 (2) (a) [The] Subject to Subsection (2)(e), the legislative body of a municipality may by
31 ordinance require the owner of a rental dwelling located within the municipality:
32 (i) to obtain a business license pursuant to Section 10-1-203; or
33 (ii) (A) to obtain a regulatory business license to operate and maintain the rental
34 dwelling in accordance with Section 10-1-203.5; and
35 (B) to allow inspections of the rental dwelling as a condition of obtaining a
36 regulatory business license.
37 (b) A municipality may not require an owner of multiple rental dwellings or multiple
38 buildings containing rental dwellings to obtain more than one regulatory business
39 license for the operation and maintenance of those rental dwellings.
40 (c) A municipality may not charge a fee for the inspection of a rental dwelling.
41 (d) If a municipality's inspection of a rental dwelling, allowed under Subsection
42 (2)(a)(ii)(B), approves the rental dwelling for purposes of a regulatory business
43 license, a municipality may not inspect that rental dwelling except as provided for in
44 Section 10-1-203.5.
45 (e) An ordinance under Subsection (2)(a) does not apply to an owner of a rental dwelling
46 who demonstrates by a signed affidavit that the owner does not receive compensation
47 from the use of the owner's rental dwelling.
48 (3) A municipality may not:
49 (a) interfere with the ability of an owner of a rental dwelling to contract with a tenant
50 concerning the payment of the cost of a utility or municipal service provided to the
51 rental dwelling; or
52 (b) except as required under the State Construction Code or an approved code under
53 Title 15A, State Construction and Fire Codes Act, for a structural change to the rental
54 dwelling, or as required in an ordinance adopted before January 1, 2008, require the
55 owner of a rental dwelling to retrofit the rental dwelling with or install in the rental
56 dwelling a safety feature that was not required when the rental dwelling was
57 constructed.
58 (4) Nothing in this section shall be construed to affect the rights and duties established
59 under Title 57, Chapter 22, Utah Fit Premises Act, or to restrict a municipality's ability
60 to enforce its generally applicable health ordinances or building code, a local health
61 department's authority under Title 26A, Chapter 1, Local Health Departments, or the
62 Department of Health and Human Service's authority under Title 26B, Utah Health and
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Enrolled Copy S.B. 171
63 Human Services Code.
64 Section 2. Effective date.
65 This bill takes effect on May 1, 2024.
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Statutes affected: Introduced: 10-8-85.5
Amended: 10-8-85.5
Enrolled: 10-8-85.5