NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC files

SUMMARY

Synopsis of HJC Substitute

The House Judiciary Committee substitute adds the definition of "amenity", further clarifies and organizes the definition of "substantial violations" and otherwise substitutes clearer and more suitable language for the purposes of the legislation.

Synopsis of Original Bill

House Bill 48 amends Section 47-8-3 NMSA (the Uniform Owner-Resident Relations Act) to clarify language defining the relationship between and responsibilities of property owners and renters and the jurisdiction of courts in matters of owner-renter disputes.

Significant Issues

The bill defines "substantial violations" of rental agreements as those including possession, sale or use of controlled substances, use of deadly weapons, assault or unintentional damage to property greater than $500.00.

The bill eliminates the ability to establish personal jurisdiction by civil proceeding, placing sole jurisdiction in district or magistrate courts (unless the court specifically has no jurisdiction).

The bill clarifies the definition of "notice" or "notification."

The bill requires that renters provide the owner with a written statement of disputed items deducted from rental deposits.

The bill provides that, if the owner fails to deliver possession of the premises to the prospective renter, rent abates and the renter may terminate the rental agreement.

If a rental agreement terminates for any reason other than a judgement, the owner must retain possessions left behind by the renter for 14 days. If the possessions remain unclaimed, the owner may then sell them. No property may be removed without the owner's consent if the owner holds a lien on the renter's property.

The bill establishes court hearing procedures in cases of the renter failing to pay.

ADMINISTRATIVE IMPLICATIONS

House Bill 48 has the potential to change the number of owner-renter disputes to be heard in magistrate and district courts.

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