Senate Bill 0696c1

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    Florida Senate - 2000                            CS for SB 696

    By the Committee on Judiciary and Senator Grant





    308-1135-00

  1                      A bill to be entitled

  2         An act relating to landlord and tenant;

  3         amending s. 83.49, F.S.; prescribing amount of

  4         interest on rental deposits to be paid a

  5         tenant; providing for a landlord to retain

  6         remaining interest; providing conditions for

  7         payment to tenant; providing a condition for

  8         posting a surety bond by a landlord; notifying

  9         a tenant of his or her rights and objections by

10         a tenant; providing time for payment of

11         interest to tenant; amending s. 83.67, F.S.;

12         providing that a landlord is not required to

13         comply with s. 715.104, F.S.; amending ss.

14         715.105, 715.106, F.S.; increasing the value of

15         abandoned property that may be kept, sold, or

16         destroyed if not reclaimed on the form of

17         notice to a former tenant and the form of

18         notice to an owner other than a former tenant;

19         amending s. 715.109, F.S.; authorizing a

20         landlord to keep for his or her own use

21         abandoned property of less than a specified

22         value; providing an effective date.

23

24  Be It Enacted by the Legislature of the State of Florida:

25

26         Section 1.  Subsection (1), paragraphs (a) and (b) of

27  subsection (3), and subsection (9) of section 83.49, Florida

28  Statutes, are amended to read:

29         83.49  Deposit money or advance rent; duty of landlord

30  and tenant.--

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    Florida Senate - 2000                            CS for SB 696
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  1         (1)  Whenever money is deposited or advanced by a

  2  tenant on a rental agreement as security for performance of

  3  the rental agreement or as advance rent for other than the

  4  next immediate rental period, the landlord or the landlord's

  5  agent shall either:

  6         (a)  Hold the total amount of such money in a separate

  7  non-interest-bearing account in a Florida banking institution

  8  for the benefit of the tenant or tenants.  The landlord shall

  9  not commingle such moneys with any other funds of the landlord

10  or hypothecate, pledge, or in any other way make use of such

11  moneys until such moneys are actually due the landlord;

12         (b)  Hold the total amount of such money in a separate

13  interest-bearing account in a Florida banking institution for

14  the benefit of the tenant or tenants, and unless otherwise

15  agreed to in a written agreement separate from the rental

16  agreement, in which case the tenant shall receive and collect

17  interest in an amount of at least 50 75 percent of the

18  accumulated annualized average interest paid rate payable on

19  such account or interest at the rate of 5 percent per year,

20  simple interest, whichever the landlord elects. The landlord

21  may retain the remaining interest. Interest payable to the

22  tenant must be paid upon return of the security deposit. The

23  landlord shall not commingle such moneys with any other funds

24  of the landlord or hypothecate, pledge, or in any other way

25  make use of such moneys until such moneys are actually due the

26  landlord; or

27         (c)  Post a surety bond, executed by the landlord as

28  principal and a surety company authorized and licensed to do

29  business in the state as surety, with the clerk of the circuit

30  court in the county in which the dwelling unit is located in

31  the total amount of the security deposits and advance rent he

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    Florida Senate - 2000                            CS for SB 696
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  1  or she holds on behalf of the tenants or $50,000, whichever is

  2  less.  The bond shall be conditioned upon the faithful

  3  compliance of the landlord with the provisions of this section

  4  and shall run to the Governor for the benefit of any tenant

  5  injured by the landlord's violation of the provisions of this

  6  section.  In addition to posting the surety bond, the landlord

  7  shall pay to the tenant interest at the rate of 5 percent per

  8  year, simple interest.  A landlord, or the landlord's agent,

  9  engaged in the renting of dwelling units in five or more

10  counties, who holds deposit moneys or advance rent and who is

11  otherwise subject to the provisions of this section, may, in

12  lieu of posting a surety bond in each county, elect to post a

13  surety bond in the form and manner provided in this paragraph

14  with the office of the Secretary of State.  The bond shall be

15  in the total amount of the security deposit or advance rent

16  held on behalf of tenants or in the amount of $250,000,

17  whichever is less. The bond shall be conditioned upon the

18  faithful compliance of the landlord with the provisions of

19  this section and shall run to the Governor for the benefit of

20  any tenant injured by the landlord's violation of this

21  section. In addition to posting a surety bond, the landlord

22  shall pay to the tenant interest on the security deposit or

23  advance rent held on behalf of that tenant at the rate of 5

24  percent per year simple interest.

25         (3)(a)  Upon the vacating of the premises for

26  termination of the lease, the landlord shall have 30 15 days

27  to return the security deposit together with interest if

28  otherwise required, or in which to give the tenant written

29  notice by certified mail to the tenant's last known mailing

30  address of his or her intention to impose a claim on the

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    Florida Senate - 2000                            CS for SB 696
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  1  deposit and the reason for imposing the claim.  The notice

  2  shall contain a statement in substantially the following form:

  3

  4         This is a notice of my intention to impose a claim for

  5  damages in the amount of .... upon your security deposit, due

  6  to ..... It is sent to you as required by s. 83.49(3), Florida

  7  Statutes. You are hereby notified that you must object in

  8  writing to this deduction from your security deposit within 15

  9  days from the time you receive this notice or I will be

10  authorized to deduct my claim from your security deposit.

11  Your objection must be sent to ...(landlord's address)....

12

13  If the landlord fails to give the required notice within the

14  30-day 15-day period, he or she forfeits the right to impose a

15  claim upon the security deposit.

16         (b)  Unless the tenant objects to the imposition of the

17  landlord's claim or the amount thereof within 15 days after

18  receipt of the landlord's notice of intention to impose a

19  claim, the landlord may then deduct the amount of his or her

20  claim and shall remit the balance of the deposit to the tenant

21  within 30 days after the date of the notice of intention to

22  impose a claim for damages.

23         (9)  In those cases in which interest is required to be

24  paid to the tenant, the landlord shall pay the interest owed

25  directly to the tenant upon return of the security deposit, or

26  credit against the current month's rent, the interest due to

27  the tenant at least once annually.  However, no interest shall

28  be due a tenant who wrongfully terminates his or her tenancy

29  prior to the end of the rental term.

30         Section 2.  Subsection (3) of section 83.67, Florida

31  Statutes, is amended to read:

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    Florida Senate - 2000                            CS for SB 696
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  1         83.67  Prohibited practices.--

  2         (3)  No landlord of any dwelling unit governed by this

  3  part shall remove the outside doors, locks, roof, walls, or

  4  windows of the unit except for purposes of maintenance,

  5  repair, or replacement; nor shall the landlord remove the

  6  tenant's personal property from the dwelling unit unless said

  7  action is taken after surrender, abandonment, or a lawful

  8  eviction.  If provided in the rental agreement or a written

  9  agreement separate from the rental agreement, upon surrender

10  or abandonment by the tenant, the landlord is shall not

11  required to comply with s. 715.104 and is not be liable or

12  responsible for storage or disposition of the tenant's

13  personal property; if provided in the rental agreement there

14  must shall be printed or clearly stamped on such rental

15  agreement a legend in substantially the following form:

16

17  BY SIGNING THIS RENTAL AGREEMENT THE TENANT AGREES THAT UPON

18  SURRENDER OR ABANDONMENT, AS DEFINED BY THE FLORIDA STATUTES,

19  THE LANDLORD SHALL NOT BE LIABLE OR RESPONSIBLE FOR STORAGE OR

20  DISPOSITION OF THE TENANT'S PERSONAL PROPERTY.

21

22  For the purposes of this section, abandonment shall be as set

23  forth in s. 83.59(3)(c).

24         Section 3.  Section 715.105, F.S., is amended to read:

25         715.105  Form of notice to former tenant.--

26         (1)  A notice to the former tenant which is in

27  substantially the following form satisfies the requirements of

28  s. 715.104:

29

30         Notice of Right to Reclaim Abandoned Property

31         To:  ...(Name of former tenant)...

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    Florida Senate - 2000                            CS for SB 696
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  1    ...(Address of former tenant)...

  2         When you vacated the premises at ...(address of

  3  premises, including room or apartment number, if any)..., the

  4  following personal property remained:  ...(insert description

  5  of personal property)....

  6         You may claim this property at ...(address where

  7  property may be claimed)....

  8         Unless you pay the reasonable costs of storage and

  9  advertising, if any, for all the above-described property and

10  take possession of the property which you claim, not later

11  than ...(insert date not fewer than 10 days after notice is

12  personally delivered or, if mailed, not fewer than 15 days

13  after notice is deposited in the mail)..., this property may

14  be disposed of pursuant to s. 715.109.

15         (Insert here the statement required by subsection (2))

16         Dated:....                ...(Signature of landlord)...

17         ...(Type or print name of landlord)...

18         ...(Telephone number)...

19         ...(Address)...

20

21         (2)  The notice set forth in subsection (1) shall also

22  contain one of the following statements:

23         (a)  "If you fail to reclaim the property, it will be

24  sold at a public sale after notice of the sale has been given

25  by publication.  You have the right to bid on the property at

26  this sale.  After the property is sold and the costs of

27  storage, advertising, and sale are deducted, the remaining

28  money will be paid over to the county.  You may claim the

29  remaining money at any time within 1 year after the county

30  receives the money."

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    Florida Senate - 2000                            CS for SB 696
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  1         (b)  "Because this property is believed to be worth

  2  less than $500 $250, it may be kept, sold, or destroyed

  3  without further notice if you fail to reclaim it within the

  4  time indicated above."

  5         Section 4.  Section 715.106, Florida Statutes, is

  6  amended to read:

  7         715.106  Form of notice to owner other than former

  8  tenant.--

  9         (1)  A notice which is in substantially the following

10  form given to a person who is not the former tenant and whom

11  the landlord reasonably believes to be the owner of any of the

12  abandoned personal property satisfies the requirements of s.

13  715.104:

14

15         Notice of Right to Reclaim Abandoned Property

16         To:  ...(Name)...

17    ...(Address)...

18         When ...(name of former tenant)... vacated the premises

19  at ...(address of premises, including room or apartment

20  number, if any)..., the following personal property remained:

21  ...(insert description of personal property)....

22         If you own any of this property, you may claim it at

23  ...(address where property may be claimed)....  Unless you pay

24  the reasonable costs of storage and advertising, if any, and

25  take possession of the property to which you are entitled, not

26  later than ...(insert date not fewer than 10 days after notice

27  is personally delivered or, if mailed, not fewer than 15 days

28  after notice is deposited in the mail)..., this property may

29  be disposed of pursuant to s. 715.109.

30         (Insert here the statement required by subsection (2))

31         Dated:....                ...(Signature of landlord)...

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    Florida Senate - 2000                            CS for SB 696
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  1         ...(Type or print name of landlord)...

  2         ...(Telephone number)...

  3         ...(Address)...

  4

  5         (2)  The notice set forth in subsection (1) shall also

  6  contain one of the following statements:

  7         (a)  "If you fail to reclaim the property, it will be

  8  sold at a public sale after notice of the sale has been given

  9  by publication.  You have the right to bid on the property at

10  this sale.  After the property is sold and the costs of

11  storage, advertising, and sale are deducted, the remaining

12  money will be paid over to the county.  You may claim the

13  remaining money at any time within 1 year after the county

14  receives the money."

15         (b)  "Because this property is believed to be worth

16  less than $500 $250, it may be kept, sold, or destroyed

17  without further notice if you fail to reclaim it within the

18  time indicated above."

19         Section 5.  Subsection (1) of section 715.109, Florida

20  Statutes, is amended to read:

21         715.109  Sale or disposition of abandoned property.--

22         (1)  If the personal property described in the notice

23  is not released pursuant to s. 715.108, it shall be sold at

24  public sale by competitive bidding.  However, if the landlord

25  reasonably believes that the total resale value of the

26  property not released is less than $500 $250, she or he may

27  retain such property for her or his own use or dispose of it

28  in any manner she or he chooses.  Nothing in this section

29  shall be construed to preclude the landlord or tenant from

30  bidding on the property at the public sale.  The successful

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    Florida Senate - 2000                            CS for SB 696
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  1  bidder's title is subject to ownership rights, liens, and

  2  security interests which have priority by law.

  3         Section 6.  This act shall take effect July 1, 2000.

  4

  5          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  6                              SB 696

  7

  8  Clarifies the bill's provision that landlords and tenants can
    agree to provisions regarding interest on security deposits
  9  other than those stated in s. 83.49(1)(b), F.S., when they
    agree to do so in a written instrument separate from the
10  rental agreement.

11  Removes the provisions from the bill which would allow
    landlords and tenants to agree in writing to conditions, other
12  than those specified in s. 83.49(1)(c), F.S., on bonds for
    security deposits.
13
    Removes the provisions from the bill which would change the
14  time a tenant has to object to a landlord's claim on the
    tenant's security deposit. The committee substitute does not
15  change the existing time of 15 days currently provided for in
    s. 83.49(3)(b), F.S. Also, the committee substitute removes
16  the provision from the bill which would require landlords to
    return security deposits to tenants within 45 days of the
17  notice to impose a claim on the security deposit and restores
    the 30 days currently provided for in s. 83.49(3)(b), F.S.
18
    Conforms subsection (9) of s. 83.49, F.S., with the bill's
19  provision in subsection (1)(b) of s. 83.49, F.S., which
    requires landlords to pay interest on security deposits to the
20  tenant when the security deposit is returned to the tenant.

21  Removes the bill's provision in s. 83.67(3), F.S., which would
    have allowed landlords, after a tenant has been evicted, to
22  avoid liability for the storage or disposition of the tenant's
    personal property if written notice of the same is given to
23  the tenant.

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