Passed by the Senate February 10, 2012 YEAS 46   ________________________________________ President of the Senate Passed by the House February 27, 2012 YEAS 81   ________________________________________ Speaker of the House of Representatives | I, Thomas Hoemann, Secretary of the Senate of the State of Washington, do hereby certify that the attached is SUBSTITUTE SENATE BILL 6315 as passed by the Senate and the House of Representatives on the dates hereon set forth. ________________________________________ Secretary | |
Approved ________________________________________ Governor of the State of Washington | Secretary of State State of Washington |
State of Washington | 62nd Legislature | 2012 Regular Session |
READ FIRST TIME 02/02/12.
AN ACT Relating to the fair tenant screening act; amending RCW 59.18.030, 59.18.257, and 19.182.110; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 The legislature finds that residential
landlords frequently use tenant screening reports in evaluating and
selecting tenants for their rental properties. These tenant screening
reports purchased from tenant screening companies may contain
misleading, incomplete, or inaccurate information, such as information
relating to eviction or other court records. It is challenging for
tenants to dispute errors until after they apply for housing and are
turned down, at which point lodging disputes are seldom worthwhile.
The costs of tenant screening reports are paid by applicants.
Therefore, applicants who apply for housing with multiple housing
providers pay repeated screening fees for successive reports containing
essentially the same information.
Sec. 2 RCW 59.18.030 and 2011 c 132 s 1 are each amended to read
as follows:
As used in this chapter:
(1) "Certificate of inspection" means an unsworn statement,
declaration, verification, or certificate made in accordance with the
requirements of RCW 9A.72.085 by a qualified inspector that states that
the landlord has not failed to fulfill any substantial obligation
imposed under RCW 59.18.060 that endangers or impairs the health or
safety of a tenant, including (a) structural members that are of
insufficient size or strength to carry imposed loads with safety, (b)
exposure of the occupants to the weather, (c) plumbing and sanitation
defects that directly expose the occupants to the risk of illness or
injury, (d) not providing facilities adequate to supply heat and water
and hot water as reasonably required by the tenant, (e) providing
heating or ventilation systems that are not functional or are
hazardous, (f) defective, hazardous, or missing electrical wiring or
electrical service, (g) defective or hazardous exits that increase the
risk of injury to occupants, and (h) conditions that increase the risk
of fire.
(2) "Distressed home" has the same meaning as in RCW 61.34.020.
(3) "Distressed home conveyance" has the same meaning as in RCW
61.34.020.
(4) "Distressed home purchaser" has the same meaning as in RCW
61.34.020.
(5) "Dwelling unit" is a structure or that part of a structure
which is used as a home, residence, or sleeping place by one person or
by two or more persons maintaining a common household, including but
not limited to single-family residences and units of multiplexes,
apartment buildings, and mobile homes.
(6) "Gang" means a group that: (a) Consists of three or more
persons; (b) has identifiable leadership or an identifiable name, sign,
or symbol; and (c) on an ongoing basis, regularly conspires and acts in
concert mainly for criminal purposes.
(7) "Gang-related activity" means any activity that occurs within
the gang or advances a gang purpose.
(8) "In danger of foreclosure" means any of the following:
(a) The homeowner has defaulted on the mortgage and, under the
terms of the mortgage, the mortgagee has the right to accelerate full
payment of the mortgage and repossess, sell, or cause to be sold the
property;
(b) The homeowner is at least thirty days delinquent on any loan
that is secured by the property; or
(c) The homeowner has a good faith belief that he or she is likely
to default on the mortgage within the upcoming four months due to a
lack of funds, and the homeowner has reported this belief to:
(i) The mortgagee;
(ii) A person licensed or required to be licensed under chapter
19.134 RCW;
(iii) A person licensed or required to be licensed under chapter
19.146 RCW;
(iv) A person licensed or required to be licensed under chapter
18.85 RCW;
(v) An attorney-at-law;
(vi) A mortgage counselor or other credit counselor licensed or
certified by any federal, state, or local agency; or
(vii) Any other party to a distressed property conveyance.
(9) "Landlord" means the owner, lessor, or sublessor of the
dwelling unit or the property of which it is a part, and in addition
means any person designated as representative of the owner, lessor, or
sublessor including, but not limited to, an agent, a resident manager,
or a designated property manager.
(10) "Mortgage" is used in the general sense and includes all
instruments, including deeds of trust, that are used to secure an
obligation by an interest in real property.
(11) "Owner" means one or more persons, jointly or severally, in
whom is vested:
(a) All or any part of the legal title to property; or
(b) All or part of the beneficial ownership, and a right to present
use and enjoyment of the property.
(12) "Person" means an individual, group of individuals,
corporation, government, or governmental agency, business trust,
estate, trust, partnership, or association, two or more persons having
a joint or common interest, or any other legal or commercial entity.
(13) "Premises" means a dwelling unit, appurtenances thereto,
grounds, and facilities held out for the use of tenants generally and
any other area or facility which is held out for use by the tenant.
(14) "Property" or "rental property" means all dwelling units on a
contiguous quantity of land managed by the same landlord as a single,
rental complex.
(15) "Qualified inspector" means a United States department of
housing and urban development certified inspector; a Washington state
licensed home inspector; an American society of home inspectors
certified inspector; a private inspector certified by the national
association of housing and redevelopment officials, the American
association of code enforcement, or other comparable professional
association as approved by the local municipality; a municipal code
enforcement officer; a Washington licensed structural engineer; or a
Washington licensed architect.
(16) "Reasonable attorneys' fees," where authorized in this
chapter, means an amount to be determined including the following
factors: The time and labor required, the novelty and difficulty of
the questions involved, the skill requisite to perform the legal
service properly, the fee customarily charged in the locality for
similar legal services, the amount involved and the results obtained,
and the experience, reputation and ability of the lawyer or lawyers
performing the services.
(17) "Rental agreement" means all agreements which establish or
modify the terms, conditions, rules, regulations, or any other
provisions concerning the use and occupancy of a dwelling unit.
(18) A "single-family residence" is a structure maintained and used
as a single dwelling unit. Notwithstanding that a dwelling unit shares
one or more walls with another dwelling unit, it shall be deemed a
single-family residence if it has direct access to a street and shares
neither heating facilities nor hot water equipment, nor any other
essential facility or service, with any other dwelling unit.
(19) A "tenant" is any person who is entitled to occupy a dwelling
unit primarily for living or dwelling purposes under a rental
agreement.
(20) "Tenant screening" means using a consumer report or other
information about a prospective tenant in deciding whether to make or
accept an offer for residential rental property to or from a
prospective tenant.
(21) "Tenant screening report" means a consumer report as defined
in RCW 19.182.010 and any other information collected by a tenant
screening service.
(22) "Prospective landlord" means a landlord or a person who
advertises, solicits, offers, or otherwise holds a dwelling unit out as
available for rent.
(23) "Prospective tenant" means a tenant or a person who has
applied for residential housing that is governed under this chapter.
Sec. 3 RCW 59.18.257 and 1991 c 194 s 3 are each amended to read
as follows:
(1) ((If a landlord uses a tenant screening service, then the
landlord may only charge for the costs incurred for using the tenant
screening service under this section.)) (a) Prior to obtaining any
information about a prospective tenant, the prospective landlord shall
first notify the prospective tenant in writing, or by posting, of the
following:
(i) What types of information will be accessed to conduct the
tenant screening;
(ii) What criteria may result in denial of the application; and
(iii) If a consumer report is used, the name and address of the
consumer reporting agency and the prospective tenant's rights to obtain
a free copy of the consumer report in the event of a denial or other
adverse action, and to dispute the accuracy of information appearing in
the consumer report.
(b)(i) The landlord may charge a prospective tenant for costs
incurred in obtaining a tenant screening report only if the prospective
landlord provides the information as required in (a) of this
subsection.
(ii) If a prospective landlord conducts his or her own screening of
tenants, ((then)) the prospective landlord may charge his or her actual
costs in obtaining the background information((, but)) only if the
prospective landlord provides the information as required in (a) of
this subsection. The amount charged may not exceed the customary costs
charged by a screening service in the general area. The prospective
landlord's actual costs include costs incurred for long distance phone
calls and for time spent calling landlords, employers, and financial
institutions.
(((2) A landlord may not charge a prospective tenant for the cost
of obtaining background information under this section unless the
landlord first notifies the prospective tenant in writing of what a
tenant screening entails, the prospective tenant's 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, and the name and
address of the tenant screening service used by the landlord.)) (c) If a prospective landlord takes an adverse action, the
prospective landlord shall provide a written notice of the adverse
action to the prospective tenant that states the reasons for the
adverse action. The adverse action notice must contain the following
information in a substantially similar format, including additional
information as may be required under chapter 19.182 RCW:
(3) Nothing in this section requires 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.
(4)
Name
Address
City/State/Zip Code
This notice is to inform you that your application has been:
..... Rejected
..... Approved with conditions:
..... Residency requires an increased deposit
..... Residency requires a qualified guarantor
..... Residency requires last month's rent
..... Residency requires an increased monthly rent of $........
..... Other:
Adverse action on your application was based on the following:
..... Information contained in a consumer report (The prospective
landlord must include the name, address, and phone number of the
consumer reporting agency that furnished the consumer report that
contributed to the adverse action.)
..... The consumer credit report did not contain sufficient information
..... Information received from previous rental history or reference
..... Information received in a criminal record
..... Information received in a civil record
..... Information received from an employment verification
Dated this ..... day of ........, 20....
Agent/Owner Signature"
(2) Any landlord or prospective landlord who violates this section
may be liable to the prospective tenant for an amount not to exceed one
hundred dollars. The prevailing party may also recover court costs and
reasonable attorneys' fees.
(3) A stakeholder work group comprised of landlords, tenant
advocates, and representatives of consumer reporting and tenant
screening companies shall convene for the purposes of addressing the
issues of tenant screening including, but not limited to: A tenant's
cost of obtaining a tenant screening report; the portability of tenant
screening reports; criteria used to evaluate a prospective tenant's
background, including which court records may or may not be considered;
and the regulation of tenant screening services. Specific
recommendations on these issues are due to the legislature by December
1, 2012.
(4) This section does not limit a prospective tenant's rights or
the duties of a screening service as otherwise provided in chapter
19.182 RCW.
Sec. 4 RCW 19.182.110 and 1993 c 476 s 13 are each amended to
read as follows:
If a person takes an adverse action with respect to a consumer that
is based, in whole or in part, on information contained in a consumer
report, the person shall:
(1) Provide written notice of the adverse action to the consumer,
except verbal notice may be given by a person in an adverse action
involving a business regulated by the Washington utilities and
transportation commission ((or involving an application for the rental
or leasing of residential real estate)) if such verbal notice does not
impair a consumer's ability to obtain a credit report without charge
under RCW 19.182.100(2); and
(2) Provide the consumer with the name, address, and telephone
number of the consumer reporting agency that furnished the report to
the person.