2023 -- H 5690

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LC001305

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO PROPERTY -- RESIDENTIAL LANDLORD AND TENANT ACT

     Introduced By: Representatives Cruz, Potter, Batista, Speakman, Tanzi, Stewart, Boylan,
McNamara, Biah, and Voas

     Date Introduced: February 17, 2023

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 34-18-19 of the General Laws in Chapter 34-18 entitled "Residential

Landlord and Tenant Act" is hereby amended to read as follows:

     34-18-19. Security deposits.

     (a) A landlord may not demand or receive a security deposit, however denominated, in an

amount or value in excess of one month’s periodic rent.

     (b) Upon termination of the tenancy, the amount of security deposit due to the tenant shall

be the entire amount given by the tenant as a security deposit, minus any amount of unpaid accrued

rent, the amount due, if any, for reasonable cleaning expenses, the amount due, if any, for

reasonable trash disposal expenses and the amount of physical damages to the premises, other than

ordinary wear and tear, that the landlord has suffered by reason of the tenant’s noncompliance with

§ 34-18-24, all as itemized by the landlord in a written notice delivered to the tenant. The landlord

shall deliver the notice, together with the amount of the security deposit due to the tenant, within

twenty (20) days after the later of either termination of the tenancy, delivery of possession, or the

tenant’s providing the landlord with a forwarding address for the purpose of receiving the security

deposit.

     (c) If the landlord fails to comply with subsection (b), the tenant may recover the amount

due him or her, together with damages in an amount equal to twice the amount wrongfully withheld,

and reasonable attorney fees.

     (d) This section does not preclude the landlord or tenant from recovering other damages to

which he or she may be entitled under this chapter.

     (e) This section does not preclude any landlord who rents a furnished apartment from

demanding or receiving a furniture security deposit if the replacement value of the furniture being

furnished by the landlord valued at the time the lease is executed is five thousand dollars ($5,000)

or greater, in which instance the landlord may charge a separate furniture security deposit of up to

one month’s periodic rent.

     (f) Upon termination of the tenancy, the amount of furniture security deposit due to the

tenant shall be the entire amount given by the tenant as a furniture security deposit, minus the

amount due, if any, for reasonable cleaning expenses and repair and the amount of physical

damages to the furniture, other than ordinary wear and tear. The landlord shall deliver the notice,

together with the amount of the furniture security deposit due to the tenant, within twenty (20) days

after the later of either termination of the tenancy, delivery of possession, or the tenant’s providing

the landlord with a forwarding address for the purpose of receiving the furniture security deposit.

     (g) In the event the landlord transfers his or her interest in the premises, the holder of the

landlord’s interest in the premises at the time of the termination of the tenancy is bound by this

section.

     (h) No rental agreement shall contain any waiver of the provisions of this section.

     (i)(1) Any lessor or their agent who receives a security deposit, however denominated, in

accordance with this section, shall, beginning with the first day of tenancy, pay interest at the rate

of five percent (5%) per year or other such lesser amount of interest as has been received from the

bank where the deposit has been held. Such interest shall be paid over to the tenant each year as

provided in this section; provided, however, that in the event that the tenancy is terminated before

the anniversary date of such tenancy, the tenant shall receive all accrued interest within thirty (30)

days of such termination. If, after thirty (30) days from the end of each year of the tenancy, the

tenant has not received said interest due or said notice to deduct the interest from the next rental

payment, the tenant may deduct from their next rent payment the interest due.

     (2) If the lessor fails to pay any interest to which the tenant is then entitled within thirty

(30) days after the termination of the tenancy, the tenant, upon proof of the same in an action against

the lessor within the district court, shall be awarded damages in an amount equal to three (3) times

the amount of interest to which the tenant is entitled, together with court costs and reasonable

attorneys’ fees.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PROPERTY -- RESIDENTIAL LANDLORD AND TENANT ACT

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     This act would provide that landlords would pay interest on security deposits in residential

landlord-tenant matters. The rate of interest would generally be five percent (5%).

     This act would take effect upon passage.

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LC001305

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