General Assembly Committee Bill No. 114
January Session, 2013 LCO No. 3128
*03128SB00114HSG*
Referred to Committee on HOUSING
Introduced by:
(HSG)
General Assembly
Committee Bill No. 114
January Session, 2013
LCO No. 3128
*03128SB00114HSG*
Referred to Committee on HOUSING
Introduced by:
(HSG)
AN ACT PROHIBITING LANDLORDS FROM REQUIRING TENANTS TO PAY RENT BY CASH OR ELECTRONIC FUNDS TRANSFER.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective October 1, 2013) (a) Except as provided in subsection (b) of this section, a landlord shall allow a tenant to pay rent and a security deposit by at least one form of payment that is not cash or electronic funds transfer. For purposes of this section, "electronic funds transfer" means any transfer of funds that is initiated through an electronic terminal, telephone or computer or magnetic tape so as to order, instruct or authorize a financial institution to debit or credit an account but shall not include any transfer originated by check, draft or similar paper instrument.
(b) A landlord may demand or require a cash payment for a security deposit or for rent if a tenant has previously (1) attempted to pay such landlord with a check drawn on insufficient funds, or (2) instructed the drawee to stop payment on a check, draft or order for the payment of money, provided no such landlord may demand or require any such cash rental payments for a period longer than three months after the date the tenant attempted to pay with a check drawn on insufficient funds or instructed a drawee to stop payment. If the landlord demands or requires such cash payments, the landlord shall give the tenant a written notice stating that a payment instrument was dishonored and informing the tenant that such tenant shall make (A) a security deposit payment in cash, or (B) rental payments in cash for a period determined by the landlord, but not exceeding three months. The landlord shall attach a copy of the dishonored instrument to such notice.
This act shall take effect as follows and shall amend the following sections:
Section 1 October 1, 2013 New section
This act shall take effect as follows and shall amend the following sections:
Section 1
October 1, 2013
New section
Statement of Purpose:
To prohibit landlords from requiring cash payments for rent and security deposits except where a tenant has previously attempted to make a rent or security deposit payment with a check drawn on insufficient funds or on which the tenant has stopped payment.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]
Co-Sponsors: REP. HOLDER-WINFIELD, 94th Dist.; SEN. LOONEY, 11th Dist.
Co-Sponsors:
REP. HOLDER-WINFIELD, 94th Dist.; SEN. LOONEY, 11th Dist.
S.B. 114