SENATE FILE 92

BY  BOLKCOM, DANIELSON, and DVORSKY

A BILL FOR

An Act increasing punitive damages that may be awarded for wrongful retention of certain rental deposits.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 562A.12, subsection 7, Code 2011, is amended to read as follows:
   7.  The bad faith wrongful retention of a deposit by a landlord, or any portion of the rental deposit, in violation of this section shall subject the landlord to punitive damages not to exceed two equal to double the amount of the deposit or the portion of the deposit wrongfully retained or five hundred dollars, whichever is more, in addition to actual damages.
   Sec. 2.  Section 562B.13, subsection 8, Code 2011, is amended to read as follows:
   8.  The bad faith wrongful retention of a deposit by a landlord, or any portion of the rental deposit, in violation of this section shall subject the landlord to punitive damages not to exceed two equal to double the amount of the deposit or the portion of the deposit wrongfully retained or five hundred dollars, whichever is more, in addition to actual damages.
EXPLANATION
   This bill increases the amount of punitive damages that can be awarded when a landlord wrongfully retains a rental deposit or a portion of a rental deposit made to secure performance of a residential rental agreement under Code section 562A.12 or a mobile home space rental agreement under Code section 562B.13.
   The bill requires that a landlord who violates these provisions shall be subject to punitive damages equal to double the amount of the deposit or portion of the deposit that is wrongfully retained or $500, whichever is more, in addition to actual damages.
   Currently, a violation of these sections cannot subject a landlord to punitive damages in excess of $200.