H-0887

AN ACT Relating to prospective residential tenants; amending RCW 59.18.240; adding a new section to chapter 59.18 RCW; creating a new section; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that tenant application fees often have the effect of excluding low-income people from applying for housing because many low-income people cannot afford these fees in addition to the rent and other deposits which may be required. The legislature further finds that application fees are frequently not returned to unsuccessful applicants for housing, which creates a hardship on low-income people. The legislature therefore finds and declares that it is the policy of the state that certain tenant application fees should be prohibited and guidelines should be established for the imposition of other tenant application fees.

The legislature also finds that it is important to both landlords and tenants that consumer information concerning prospective tenants is accurate. Many tenants are unaware of their rights under federal fair credit reporting laws to dispute information that may be inaccurate. The legislature therefore finds and declares that it is the policy of the state for prospective tenants to be informed of their rights to dispute information they feel is inaccurate in order to help prevent denials of housing based upon incorrect information.

NEW SECTION. Sec. 2. A new section is added to chapter 59.18 RCW to read as follows:

(1) It shall be unlawful for a landlord to require a fee from a prospective tenant for the privilege of being placed on a list to be considered as a tenant for a dwelling unit.

(2)(a) If a landlord uses a tenant screening service, then the landlord may charge for the costs incurred for using a tenant screening service under this section. If a landlord conducts his or her own screening of tenants, then the landlord may charge his or her actual costs in obtaining the background information, but the amount may not exceed the costs charged by an outside screening service. The landlord's actual costs include costs incurred for long distance phone calls and for time spent calling landlords, employers, and financial institutions. A landlord may not charge a prospective tenant a fee for obtaining background information under this section unless the landlord first notifies the prospective tenant of what a tenant screening entails, and his or her rights to dispute the accuracy of information provided by the tenant screening service or provided by the entities listed on the tenant application who will be contacted for information concerning the tenant. The landlord must give the prospective tenant the name and address of the tenant screening service used by the landlord.

(b) Nothing in this section shall require a landlord to disclose information to a prospective tenant that was obtained from a tenant screening service or from entities listed on the tenant application which is not required under the federal fair credit reporting act 15 U.S.C. Sec. 1681 et seq. For purposes of this section, a "tenant screening service" means a "consumer reporting agency" as defined in RCW 59.18.240.

(3) A landlord who charges a prospective tenant a fee or deposit to secure that the prospective tenant will move into a dwelling unit, after the dwelling unit has been offered to the prospective tenant, must provide the prospective tenant with a receipt for the fee or deposit, together with a statement of the conditions, if any, under which the fee or deposit is refundable. If the prospective tenant does occupy the dwelling unit, then the landlord must credit the amount of the fee or deposit to the tenant's first month's rent or to the tenant's security deposit.

(4) Any landlord who violates this section may be liable to the applicant for an amount not to exceed one hundred dollars. The prevailing party may also recover court costs and a reasonable attorneys' fee.

Sec. 3. RCW 59.18.240 and 1983 c 264 s 9 are each amended to read as follows:

So long as the tenant is in compliance with this chapter, the landlord shall not take or threaten to take reprisals or retaliatory action against the tenant because of any good faith and lawful:

(1) Complaints or reports by the tenant to a governmental authority concerning the failure of the landlord to substantially comply with any code, statute, ordinance, or regulation governing the maintenance or operation of the premises, if such condition may endanger or impair the health or safety of the tenant; or

(2) Assertions or enforcement by the tenant of his or her rights and remedies under this chapter.

"Reprisal or retaliatory action" shall mean and include but not be limited to any of the following actions by the landlord when such actions are intended primarily to retaliate against a tenant because of the tenant's good faith and lawful act:

(a) Eviction of the tenant;

(b) Increasing the rent required of the tenant;

(d) Increasing the obligations of the tenant; or

(e) Reporting a tenant to a consumer reporting agency. For purposes of this section, a "consumer reporting agency" means any person who, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties.

NEW SECTION. Sec. 4. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect June 1, 1991.