Bill Summary – FastDemocracy

67th Legislature                                                                                                          HB 541.1
                                                      HOUSE BILL NO. 541
                                       INTRODUCED BY S. GALLOWAY, K. WHITMAN
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   A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING LANDLORD-TENANT LAWS;
   PROVIDING FOR REMOVAL OF UNAUTHORIZED PERSONS FROM A PREMISES; PROVIDING FOR
   MONETARY DAMAGES IN THE EVENT OF UNAUTHORIZED TERMINATION; REVISING LANDLORD
   DUTIES; REVISING NOTICE PROVISIONS; ALLOWING CHARGE FOR LABOR AS PECUNIARY DAMAGES;
   REVISING PROVISIONS REGARDING TENANT NONCOMPLIANCE WITH A RENTAL AGREEMENT;
   REVISING PROVISIONS REGARDING DISPOSAL OF PROPERTY; REVISING DEFINITIONS; AND
   AMENDING SECTIONS 70-24-103, 70-24-201, 70-24-303, 70-24-312, 70-24-401, 70-24-422, 70-24-430, 70-
   25-201, 70-33-103, 70-33-201, 70-33-303, 70-33-312, 70-33-321, 70-33-401, 70-33-422, AND 70-33-433,
   MCA.”
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   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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              NEW SECTION. Section 1.          Removal of unauthorized person. (1) An unauthorized person has no
   legal right to occupy, enter, or trespass on a premises. A person who cannot produce authorization allowing the
   person to occupy a premises is an unauthorized person for the purpose of this section and may be removed
   from the premises immediately by law enforcement.
              (2)   For the purposes of this section, authorization includes:
              (a)   a written rental agreement entitling the person to occupy the premises;
              (b)   written or verbal authorization from the landlord; or
              (c)   written or verbal authorization from a tenant if the person is a guest of the tenant.
              (3)   For the purposes of this section, verbal authorization is valid only if it is verified by the individual or
   entity entitled to give it under subsection (2)(b) or (2)(c).
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              Section 2. Section 70-24-103, MCA, is amended to read:
              "70-24-103. General definitions. Subject to additional definitions contained in subsequent sections
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   and unless the context otherwise requires, in this chapter the following definitions apply:
              (1)   "Abandon" means to give up possession of the premises as provided in 70-24-426.
              (1) (2)   "Action" includes recoupment, counterclaim, setoff suit in equity, and any other proceeding in
   which rights are determined, including an action for possession.
              (3)   "Actual and reasonable cost" means the actual amount of expenses and labor incurred or
   expended and the reasonable amount of expenses and labor estimated to be incurred or expended.
              (2) (4)   "Case of emergency" means an extraordinary occurrence beyond the tenant's control requiring
   immediate action to protect the premises or the tenant. A case of emergency may include the interruption of
   essential services, including heat, electricity, gas, running water, hot water, and sewer and septic system
   service, or life-threatening events in which the tenant or landlord has reasonable apprehension of immediate
   danger to the tenant or others.
              (3) (5)   "Court" means the appropriate district court, small claims court, justice's court, or city court.
              (4) (6)   "Dwelling unit" means a structure or the part of a structure that is used as a home, residence,
   or sleeping place by a person who maintains a household or by two or more persons who maintain a common
   household. Dwelling unit, in the case of a person who rents space in a mobile home park and rents the mobile
   home, means the mobile home itself.
              (5) (7)   "Good faith" means honesty in fact in the conduct of the transaction concerned.
              (6) (8)   "Guest" means a person staying with a tenant for a temporary period of time as defined in the
   rental agreement or, if not defined in the rental agreement, for a period of time no more than 7 days unless the
   tenant has received the landlord's written consent to a longer period of time.
              (7) (9)   "Landlord" means:
              (a)   the owner, lessor, or sublessor of the dwelling unit or the building of which it is a part; or
              (b)   a person who has written authorization from the owner to act as the owner's agent or assignee for
   purposes related to the premises or the rental agreement;
              (b) (c)   a manager of the premises who fails to disclose the managerial position a person who has
   written authorization from the owner to act as a manager of the premises for the purposes of the tenancy or the
   rental agreement; or
              (d)   a lessor who has written authorization from the owner of the premises to sublease the premises.
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              (8) (10)   "Organization" includes a corporation, government, governmental subdivision or agency,
   business trust, estate, trust, or partnership or association, two or more persons having a joint or common
   interest, and any other legal or commercial entity.
              (9) (11)   "Owner" means one or more persons, jointly or severally, in whom is vested all or part of:
              (a)   the legal title to property; or
              (b)   the beneficial ownership and a right to present use and enjoyment of the premises, including a
   mortgagee in possession.
              (10) (12) "Person" includes an individual or organization.
              (11) (13) "Premises" means a dwelling unit and the structure of which it is a part, the facilities and
   appurtenances in the structure, and the grounds, areas, and facilities held out for the use of tenants generally
   or promised for the use of a tenant.
              (12) (14) "Rent" means all payments to be made to the landlord under the rental agreement, including
   rent, late fees, or other charges as agreed on in the rental agreement, except money paid as a security deposit.
              (13) (15) "Rental agreement" means all agreements, written or oral, and valid rules adopted under 70-
   24-311 embodying the terms and conditions concerning the use and occupancy of a dwelling unit and
   premises.
              (14) (16) "Roomer" means a person occupying a dwelling unit that does not include a toilet, a bathtub
   or a shower, a refrigerator, a stove, or a kitchen sink, all of which are provided by the landlord and one or more
   of which are used in common by occupants in the structure.
              (15) "Single-family residence" means a structure maintained and used as a single dwelling unit. A
   dwelling unit that shares one or more walls with another dwelling unit is a single-family residence if it has direct
   access to a street or thoroughfare and does not share heating facilities, hot water equipment, or any other
   essential facility or service with another dwelling unit.
              (16) (17) "Tenant" means:
              (a)   a person entitled under a rental agreement to occupy a dwelling unit to the exclusion of others; or
              (b)   a person who, with the written approval of the landlord and pursuant to the rental agreement, has
   a sublease agreement with the person who is entitled to occupy the dwelling unit under the rental agreement.
              (17) (18) "Unauthorized person" means a person who:
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67th Legislature                                                                                                      HB 541.1
              (a)   enters or remains for more than 24 hours after being asked to leave by the landlord and does not
   receive written permission by the landlord to remain on the premises;
              (b)   is in violation of 45-6-201;
              (c)   is in violation of 45-6-203; or
              (d)   is in violation of 70-27-102, other than a tenant or a guest, who is trespassing in violation of45-6-
   203."
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              Section 3. Section 70-24-201, MCA, is amended to read:
              "70-24-201. Rental agreement -- terms and conditions. (1) A landlord and a tenant may include in
   a rental agreement terms and conditions not prohibited by this chapter or other rule or law, including rent, term
   of the agreement, and other provisions governing the rights and obligations of the parties.
              (2)   Unless the rental agreement provides otherwise:
              (a)   the tenant shall pay as rent the rental value for the use and occupancy of the dwelling unit as
   determined by the landlord;
              (b)   rent is payable at the landlord's address or using electronic funds transfer to an account
   designated for the payment of rent by the landlord;
              (c)   periodic rent is payable at the beginning of a term of a month or less and otherwise in equal
   monthly installments at the beginning of each month;
              (d)   rent is uniformly apportionable from day to day; and
              (e)   the tenancy is week to week in the case of a roomer who pays weekly rent and in all other cases
   month to month. month; and
              (f)   if either party terminates the rental agreement without cause prior to the expiration date of the
   lease term, the aggrieved party is entitled to monetary damages up to 1 month's rent or an amount that is
   agreed on in the rental agreement, which may not exceed 1 month's rent. Landlords shall follow 70-24-426(3)
   and are entitled to rent from defaulting tenants up to the date a new tenancy starts or the date the rental
   agreement term expires.
              (3)   Rent is payable without demand or notice at the time and place agreed upon by the parties or
   provided for by subsection (2)."
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              Section 4. Section 70-24-303, MCA, is amended to read:
              "70-24-303. Landlord to maintain premises -- agreement that tenant perform duties -- limitation
   of landlord's liability for failure of smoke detector or carbon monoxide detector. (1) A landlord:
              (a)   shall comply with the requirements of applicable building and housing codes materially affecting
   health and safety in effect at the time of original construction in all dwelling units where construction is
   completed after July 1, 1977;
              (b)   may not knowingly allow any tenant or other person to engage in any activity on the premises that
   creates a reasonable potential that the premises may be damaged or destroyed or that neighboring tenants
   may be injured;
              (c) (b)   shall make repairs and do whatever is necessary to put and keep the premises in a fit and
   habitable condition, except when it is the tenant's responsibility to maintain the dwelling unit pursuant to 70-24-
   321;
              (d) (c)   shall keep all common areas of the premises in a clean and safe condition;
              (e) (d)   shall maintain in good and safe working order and condition all electrical, plumbing, sanitary,
   heating, ventilating, air-conditioning, and other facilities and appliances, including elevators, supplied or
   required to be supplied by the landlord;
              (f) (e)   shall, unless otherwise provided in a rental agreement, provide and maintain appropriate
   receptacles and conveniences for the removal of ashes, garbage, rubbish, and other waste incidental to the
   occupancy of the dwelling unit and arrange for their removal;
              (g) (f)   shall supply running water and reasonable amounts of hot water at all times and reasonable
   heat between October 1 and May 1, except if the building that includes the dwelling unit is not required by law
   to be equipped for that purpose or the dwelling unit is so constructed that heat or hot water is generated by an
   installation within the exclusive control of the tenant; and
              (h) (g)   shall install in each dwelling unit under the landlord's control an approved carbon monoxide
   detector, in accordance with rules adopted by the department of labor and industry, and an approved smoke
   detector, in accordance with rules adopted by the department of justice. Upon commencement of a rental
   agreement, the landlord shall verify that the carbon monoxide detector and the smoke detector in the dwelling
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   unit are in good working order. The tenant shall maintain the carbon monoxide detector and the smoke detector
   in good working order during the tenant's rental period. For the purposes of this subsection, an approved
   carbon monoxide detector, as defined in 70-20-113, and an approved smoke detector, as defined in 70-20-113,
   bear a label or other identification issued by an approved testing agency having a service for inspection of
   materials and workmanship at the factory during fabrication and assembly.
              (2)   If the duty imposed by subsection (1)(a) is greater than a duty imposed by subsections (1)(b)
   through (1)(h) (1)(g), a landlord's duty must be determined by reference to subsection (1)(a).
              (3)   A landlord and tenant of a one-, two-, or three-family residence may agree in writing that the
   tenant perform the landlord's duties specified in subsections (1)(f) (1)(e) and (1)(g) (1)(f) and specified repairs,
   maintenance tasks, alteration, and remodeling but only if the transaction is entered into in good faith and not for
   the purpose of evading the obligations of the landlord.
              (4)   A landlord and tenant of a one-, two-, or three-family residence may agree that the tenant is to
   perform specified repairs, maintenance tasks, alterations, or remodeling only if:
              (a)   the agreement of the parties is entered into in good faith and not for the purpose of evading the
   obligations of the landlord and is set forth in a separate writing signed by the parties and supported by
   adequate consideration;
              (b)   the work is not necessary to cure noncompliance with subsection (1)(a); and
              (c)   the agreement does not diminish the obligation of the landlord to other tenants in the premises.
              (5)   The landlord is not liable for damages caused as a result of the failure of the carbon monoxide
   detector or the smoke detector required under subsection (1)(h) (1)(g)."
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              Section 5. Section 70-24-312, MCA, is amended to read:
              "70-24-312. Access to premises by landlord. (1) A tenant may not unreasonably withhold consent
   to the landlord or the landlord's agent to enter into the dwelling unit in order to inspect the premises, make
   necessary or agreed repairs, decorations, alterations, or improvements, supply necessary or agreed services,
   or exhibit the dwelling unit to prospective or actual purchasers, mortgagees, tenants, workers, or contractors.
              (2)   A landlord may enter the dwelling unit without consent of the tenant in the case of an emergency.
              (3)   (a) A landlord may not abuse the right of access or use it to harass the tenant. Except in the case
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   of an emergency or unless it is impracticable to do so, the landlord shall give the tenant at least 24 hours' notice
   of the intent to enter and may enter only at reasonable times.
              (b)   For the purposes of this subsection (3), in addition to the provisions of 70-24-108, a tenant has
   notice of the intent to enter if the landlord conspicuously posts the landlord's intent to enter on the main entry
   door of the dwelling unit.
              (4)   A landlord has no other right of access except:
              (a)   pursuant to court order;
              (b)   as permitted by 70-24-425 and 70-24-426(2); or
              (c)   when the tenant has abandoned or surrendered the premises.
              (5)   A tenant may not remove a lock or replace or add a lock not supplied by the landlord to the
   premises without the written permission of the landlord. If a tenant removes a lock or replaces or adds a lock
   not supplied by the landlord to the premises, the tenant shall provide the landlord with a key to ensure that the
   landlord will have the right of access as provided by this chapter."
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              Section 6. Section 70-24-401, MCA, is amended to read:
              "70-24-401. Administration of remedies -- enforcement. (1) The remedies provided by this chapter
   must be administered so that an aggrieved party may recover appropriate damages. The aggrieved party has a
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