EVERY LANDLORD INFORMED. EVERY TENANT

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Cody’s Law establishes a statewide system of landlord education, certification, and tenant‑protection mechanisms to ensure that every rental dwelling in Montana provides safe, lawful access to water, heat, power, and sanitation. The act memorializes Cody Hunter Sorenson (1999‑2024), whose death revealed a gap in Montana law concerning essential‑service obligations of landlords. The legislation creates:

•  a mandatory Landlord Certification program,

•  a public Certification Database linking water‑right and sanitation permits,

•  a Tenant Safety Period and rent‑escrow procedure when certification lapses,

•  a standardized lease addendum, and

•  the Office of Tenant and Landlord Compliance (OTLC) within the Department of Commerce to receive complaints, coordinate enforcement, and issue temporary habitability orders.

The program is self‑funded through certification fees; no taxpayer appropriations are required.

This act may be cited as “Cody’s Law – Every Landlord Informed, Every Tenant Protected.”

As used in this act, unless the context requires otherwise:

1.  Department – the Montana Department of Commerce, or any successor agency designated by law.

2.  Landlord – any person, partnership, corporation, limited‑liability company, trust, or other entity that rents, leases, subleases, or otherwise offers a dwelling unit for residential occupancy, and any person who collects rent, advertises the property, or exercises control over the rental premises.

3.  Tenant – a person entitled under a rental agreement or by law to occupy a dwelling unit for residential purposes.

4.  Dwelling unit – a structure or portion of a structure used or intended for use as a home, residence, or sleeping place, including houses, apartments, mobile homes, manufactured‑home lots, and recreational vehicles when occupied as a residence.

5.  Essential services – potable water; lawful sewage disposal and sanitation; electric service sufficient for lighting and appliances; heat adequate to maintain a safe indoor temperature; and reasonable access to cooking facilities.

6.  Certification – the official authorization issued by the Department allowing a landlord to rent or manage residential property, confirming successful completion of the required education, examination, and compliance review.

7.  Certified landlord – a landlord holding a current, valid certification issued under this act.

8.  Tenant Safety Period – the 60‑day temporary occupancy protection provided when a landlord’s certification is suspended, revoked, or expires.

9.  Responsible Managing Agent (RMA) – a natural‑person who (a) holds an active landlord certification and (b) is designated by a corporation, LLC, partnership, or trust as having actual control and responsibility for compliance with this act.

10.  OTLC – the Office of Tenant and Landlord Compliance created in Section 25.

11.  Rental agreement – any written, oral, or implied contract for the use or occupancy of a dwelling unit or residential lot.

12.  Property trustee – a temporary administrator appointed under Section 18 to manage a property while enforcement is pending.

13.  LEEF Fund – the Landlord Education and Enforcement Fund created in Section 23.

Except as provided in Section 4, the provisions of this act apply to all residential rental arrangements within Montana, including:

•  single‑family homes, duplexes, apartments, and condominiums;

•  mobile homes, manufactured homes, and lots in mobile‑home parks;

•  recreational vehicles, campers, or trailers used as a primary residence;

•  cabins, converted outbuildings, or accessory dwelling units; and

•  any structure, lot, or portion thereof used as a dwelling by agreement or exchange of consideration.

A rental arrangement is considered residential if the occupant resides in the unit for more than 30 days or the property serves as the occupant’s principal home. Certification is required for any person or entity engaging in residential leasing.

The following are exempt from certification, provided the exemption is not used to evade the purpose of this act:

a.  Owner‑occupied dwellings or those occupied by an immediate family member where no rent is charged.

b.  Short‑term rentals of 30 consecutive days or less that are not the tenant’s primary residence.

c.  Housing provided as a condition of employment (e.g., ranch hands, caretakers) when inspected under applicable labor or safety laws.

d.  Property owned or operated by a federal or tribal authority under exclusive jurisdiction.

e.  Charitable, religious, or nonprofit emergency or transitional shelters provided at no cost, provided local health and safety standards are met.

f.  Public institutions, hospitals, nursing homes, or group‑care facilities licensed under separate state law.

An exemption does not apply if the property is rented for profit, rent or consideration is collected, or the exemption is used to circumvent landlord‑tenant obligations. The burden of proof rests with the owner upon request by the Department.

1.  No landlord may rent, lease, sublease, manage, or otherwise offer a residential property without a valid certification issued under this act.

2.  An application shall be submitted to the Department on the prescribed form and include:

a.  Applicant’s full legal name, mailing address, and contact information;

b.  Physical address and description of each property to be rented;

c.  Proof of lawful water‑right and sanitation authorization for each property, if applicable;

d.  Declaration of compliance with local building, zoning, and fire‑safety codes; and

e.  Payment of the certification fee established in Section 14.

3.  Prior to issuance, the applicant must:

a.  Complete the education and testing program described in Section 6;

b.  Acknowledge in writing the landlord’s duties and tenant’s rights under Title 70, chapter 24, MCA; and

c.  Affirm that all rental dwellings offered are supplied with lawful essential services.

4.  Certification shall be:

a.  Valid for two years from issuance;

b.  Non‑transferable; and

c.  Displayed on all rental advertisements, leases, and related postings as “Montana Certified Landlord No. _____ Exp. _____”.

5.  Operating without certification constitutes:

a.  A civil penalty of up to $10,000 per property per month;

b.  Inability to enforce any lease, rental agreement, or eviction until certification is obtained; and

c.  Potential rent refunds if essential services or safety standards were violated.

6.  The Department shall notify the appropriate county attorney after 30 days of non‑compliance; the county attorney may initiate civil or criminal enforcement.

7.  Certification may be denied or suspended for:

a.  Knowingly providing false information;

b.  Lack of lawful essential‑service access; or

c.  A record of unresolved enforcement actions or prior revocations within the preceding three years.

8.  Certification may be reinstated upon proof of compliance, successful remedial education, and payment of reinstatement fees.

1.  The Department shall establish a Landlord Education and Examination Program to ensure all certified landlords understand state and local requirements for safe, lawful rentals.

2.  The program shall include instruction on:

a.  Montana Residential Landlord and Tenant Act of 1977 (Title 70, chapter 24, MCA);

b.  Water‑right laws and domestic‑use authorizations administered by the DNRC;

c.  Sanitation and septic‑system requirements regulated by the DEQ and local health departments;

d.  Minimum habitability, building‑safety, and fire‑code standards;

e.  Tenant rights and landlord responsibilities, including prohibitions on retaliation and discrimination;

f.  Procedures for reporting and resolving essential‑service interruptions;

g.  Conflict‑resolution techniques and fair‑housing practices; and

h.  Operation of the OTLC and complaint processing.

3.  The Department may develop the curriculum in cooperation with the DNRC, DEQ, Department of Justice, county attorneys, and local health officials.

4.  The program shall be accessible online and in person, allow self‑paced completion, and provide reasonable accommodations for persons with disabilities.

5.  After completing the education, the applicant must pass a written or electronic examination (minimum 100 questions, scenario‑based). A passing score of 80 % is required for initial certification. Re‑examination fees of $25 apply for each additional attempt.

6.  Upon successful completion, the Department shall issue a Certificate of Completion, which serves as proof of eligibility for certification under Section 5.

7.  All materials, examinations, and certifications shall be retained electronically and linked to each landlord’s public certification record.

8.  The Department shall review and update the curriculum at least once every two years.

1.  Certification is valid for two years. The Department shall send renewal notifications at least 60 days before expiration. Failure to receive notice does not excuse the landlord.

2.  To renew, a landlord must:

a.  Complete a Department‑approved refresher education module;

b.  Attest that all managed properties remain compliant with habitability standards; and

c.  Pay the renewal fee established in Section 14.

3.  The Department may require a retest if certification has been expired for more than six months, the landlord has been found in violation of this act, or significant statutory amendments have occurred.

4.  Certification not renewed by its expiration date is deemed suspended; the landlord may not rent or collect rent until reinstated.

5.  If certification is suspended or expired for more than twelve months, the landlord must complete the full education and testing program and pay any applicable reinstatement or penalty fees.

6.  The Department shall maintain public access to renewal and expiration status via the online certification database.

7.  Operating after expiration without renewal subjects the landlord to the penalties described in Section 10.

1.  The Department shall create and maintain a secure, searchable online database of all certified landlords and registered rental properties.

2.  The database shall be publicly accessible and allow verification by landlord name, certification number, property address, or RMA.

3.  For each certified landlord, the database shall display:

a.  Certification number and expiration date;

b.  Certification status (active, suspended, revoked, expired);

c.  Name of any designated RMA;

d.  Physical addresses of all covered rental properties;

e.  Type of certification (individual, corporate, property manager); and

f.  A summary of substantiated violations or enforcement actions in the prior five years.

4.  A Tenant Verification Portal shall enable any tenant to confirm that their landlord/property is certified, view current enforcement notices, verify water‑right and sanitation permits, and download the standardized Cody’s Law Tenant Rights Addendum (Section 24).

5.  Personal identifiers (SSN, TIN, private contact information) and tenant lease terms shall not be displayed.

6.  The database shall be updated at least daily to reflect new certifications, renewals, revocations, or enforcement actions.

7.  County attorneys, health departments, and local housing authorities shall receive secure administrative access for enforcement purposes.

8.  The database shall integrate with the OTLC complaint system so that enforcement records are automatically linked to landlord profiles.

1.  The Department may suspend, revoke, or refuse to renew a certification for:

a.  Knowingly violating a tenant’s right to essential services;

b.  Renting without lawful water‑right, sanitation approval, or occupancy permit;

c.  Operating with a suspended or expired certification while collecting rent;

d.  Falsifying application or renewal information;

e.  Obstructing or refusing inspection;

f.  Fraud, misrepresentation, retaliation, or harassment;

g.  Conviction or civil liability for tenant endangerment, wrongful eviction, or housing‑code violations; or

h.  Repeatedly ignoring enforcement orders.

2.  Prior to any suspension or revocation, the Department shall provide written notice specifying the facts, applicable violations, and the landlord’s right to request an administrative hearing within 15 days. Failure to request a hearing makes the action final.

3.  The Department may issue a temporary suspension pending a hearing if an immediate health or safety threat exists.

4.  During suspension or revocation:

a.  The landlord may not lease, rent, or collect rent;

b.  Affected tenants shall be notified within five business days; and

c.  Tenants receive a Tenant Safety Period under Section 17.

5.  Revoked certifications may not be reapplied for for a minimum of two years; reinstatement requires remedial education, compliance verification, and payment of all penalties.

6.  Suspensions lasting less than six months may be lifted upon correction of the cause, a compliance audit, and payment of a reinstatement fee.

7.  All suspensions, revocations, and reinstatements shall be recorded in the public certification database within 24 hours.

8.  The Department shall immediately notify the appropriate county attorney, health department, and OTLC of any final revocation for coordination of tenant safety measures.

9.  Intentional violation of a suspension or revocation order constitutes a misdemeanor, punishable by a fine up to $10,000 per property per month, imprisonment up to six months, or both.

1.  The Department, through the OTLC, shall have primary administrative enforcement authority for all provisions of this act.

2.  The Department may:

a.  Investigate complaints;

b.  Issue Notices of Violation and Orders to Comply;

c.  Impose civil penalties;

d.  Refer cases to county attorneys or the Department of Justice for criminal prosecution; and

e.  Enter cooperative agreements with local governments for enforcement coordination.

3.  Upon receipt of a complaint, the Department shall acknowledge within five business days, determine within twenty business days whether sufficient evidence exists, and either dismiss or initiate a formal investigation.

4.  A substantiated violation shall result in an Order to Comply containing:

a.  Description of the violation;

b.  Corrective action plan and deadline;

c.  Statement of potential penalties; and

d.  Notice of the right to appeal under Section 12.

5.  Civil penalties:

a.  Up to $5,000 per property for a first violation;

b.  Up to $10,000 per property per month for continuing or repeated violations;

c.  Costs of investigation, inspection, and administrative enforcement; and

d.  Suspension or revocation of certification under Section 9.

6.  Conduct resulting in tenant endangerment, injury, or death shall be referred for criminal prosecution (e.g., negligent homicide, criminal endangerment).

7.  County attorneys have concurrent jurisdiction and may:

a.  Seek injunctions to halt unsafe rentals;

b.  Petition for appointment of a Temporary Property Trustee (Section 18);

c.  Recover civil penalties and restitution; and

d.  Seek reimbursement for public funds expended for emergency shelter or relocation.

8.  All fines and civil penalties shall be deposited into the LEEF Fund (Section 23).

9.  The Department shall publish an annual enforcement report to the Legislative Finance Committee.

10.  The Department may adopt administrative rules to implement procedures and due‑process standards.

1.  When the Department determines a violation has occurred, it shall issue a written Notice of Violation to the landlord or RMA, served by certified mail, personal service, or verified electronic delivery.

2.  The notice shall include:

a.  Name of the violator;

b.  Property address and description;

c.  Specific facts constituting the violation with reference to the relevant statutory provision;

d.  Required corrective actions;

e.  Deadline for compliance (not less than 10 business days unless an immediate threat exists);

f.  Potential penalties or sanctions; and

g.  Notice of the right to request an administrative hearing under Section 12.

3.  For immediate health or safety threats, the Department may issue an Emergency Compliance Order requiring immediate remediation or cessation of occupancy.

4.  Failure to respond or comply within the specified time constitutes prima facie evidence of willful non‑compliance and may result in enforcement action under Section 10 or certification suspension under Section 9.

5.  Copies of each notice and any accompanying order shall be transmitted within five business days to the appropriate county attorney, health department, and affected tenants.

1.  A landlord may request an administrative hearing within 15 days of receiving a Notice of Violation.

2.  The hearing shall be conducted by an impartial hearing officer appointed by the Department.

3.  The hearing officer shall issue a written decision within 30 days of the hearing, stating findings of fact, conclusions of law, and any orders, including reinstatement, suspension, or revocation of certification.

4.  A party dissatisfied with the hearing officer’s decision may appeal to the Montana Supreme Court within 30 days of the decision, following the procedures set forth in MCA § 10‑5‑105.

1.  The Department shall coordinate enforcement with:

a.  DNRC – for verification of water‑right use;

b.  DEQ – for sanitation and septic‑system compliance;

c.  Department of Public Health and Human Services and local health departments – for habitability standards;

d.  Department of Justice – for criminal prosecution; and

e.  OTLC – for complaint intake and case management.

2.  Each agency shall designate a Landlord‑Tenant Liaison Officer as the primary point of contact.

3.  The agencies shall enter into a Memorandum of Understanding establishing procedures for referral, information sharing (consistent with privacy law), joint inspections, emergency response, and annual reporting.

4.  All Notices of Violation shall be entered into the certification database within 48 hours.

5.  County attorneys shall serve as local enforcement authority and may bring civil or criminal actions, seek injunctions, recover penalties, and coordinate tenant safety measures, including appointment of a Temporary Property Trustee.

6.  Local health departments and building inspectors shall promptly report illegal water or sanitation connections, unpermitted structures, or imminent health risks to the Department.

7.  The Department shall maintain a central enforcement record system within the OTLC to track inter‑agency actions.

8.  Annual inter‑agency enforcement summaries shall be submitted to the Economic Affairs Interim Committee.

1.  Certification fees shall be as follows:

a.  $75 for individual landlords with ≤3 units;

b.  $150 for landlords with 4–10 units;

c.  $300 for licensed or independent property managers; and

d.  $500 for corporations, partnerships, trusts, or other entities.

2.  Renewal fees shall not exceed two‑thirds of the initial fee and may be adjusted by rule to reflect administrative costs or inflation.

3.  Additional fees:

a.  $25 re‑examination fee for failed initial exam;

b.  $50 reinstatement fee for suspension ≤6 months;

c.  $150 reinstatement fee for suspensions or revocations requiring remedial education.

4.  All fees shall be deposited into the Landlord Education and Enforcement Fund (LEEF).

5.  LEEF may be used only for:

a.  Development and administration of the education and examination program;

b.  Maintenance of the public certification database;

c.  Enforcement and investigation activities;

d.  Tenant education materials and public outreach.

6.  The Department may adjust fees biennially, provided any increase does not exceed the percentage change in the Consumer Price Index for the preceding two calendar years.

7.  An annual report on LEEF revenues, expenditures, and balance shall be submitted to the Legislative Finance Committee.

8.  No portion of LEEF may be transferred to the state general fund.

1.  Every tenant has the right to safe, habitable, and lawful housing. No lease may waive or diminish the tenant’s rights or the landlord’s obligations under this act or Title 70, chapter 24, MCA.

2.  Tenants are entitled to essential services as defined in Section 2(5).

3.  A landlord may not:

a.  Willfully interrupt or cause interruption of any essential service;

b.  Deny access to water, electricity, or heat as retaliation;

c.  Interfere with a tenant’s reporting of unsafe conditions; or

d.  Retaliate against a tenant exercising rights under this act.

4.  If a landlord fails to supply essential services (and the failure is not beyond the landlord’s control), the tenant may:

a.  Procure substitute services and deduct actual costs from rent;

b.  File a complaint with OTLC or the local health department;

c.  Withhold rent and deposit it into escrow (Section 17); or

d.  Terminate the lease with written notice if the condition materially affects health or safety and remains uncorrected after a reasonable period.

5.  Violations of subsection 3 make the landlord liable for:

a.  Actual damages (relocation, emergency lodging, etc.);

b.  Civil penalties up to $5,000 per violation; and

c.  Reasonable attorney’s fees and court costs if the tenant prevails.

6.  Tenants acting in good faith under this section shall not be deemed to have abandoned the premises; any retaliatory eviction is void.

7.  The Department shall publish a plain‑language Tenant Rights and Responsibilities Handbook to be provided free of charge upon certification, renewal, or execution of a new lease.

8.  This act does not limit stronger protections granted by local ordinances or federal regulations.

1.  Every rental agreement for residential occupancy must include a Cody’s Law Lease Addendum (or an approved equivalent) containing:

a.  Landlord’s full legal name, mailing address, and contact information;

b.  Landlord’s certification number and expiration date;

c.  Physical address and legal description of the rental property;

d.  Verification of lawful water‑right authorization (DNRC record number and purpose);

e.  Verification of approved sanitation/septic permits (DEQ or county health department);

f.  Identification of the rental type (home, mobile home, RV, etc.) and applicable landlord‑tenant statutes;

g.  Name and contact information of any Responsible Managing Agent;

h.  Statement of tenant rights and remedies under this act, with contact information for OTLC, the county health department, and the county attorney; and

i.  Signatures of landlord and tenant acknowledging receipt and understanding.

2.  Leases lacking the required addendum are defective and unenforceable until corrected.

3.  The Department shall design a standardized addendum template, accessible via the certification database, which automatically populates certification number, status, expiration, water‑right, and sanitation data, and assigns a unique Addendum Identification Number (AIN) linked to the state database.

4.  The landlord must provide a printed or electronic copy of the completed addendum to the tenant before occupancy and retain a signed copy for at least five years after tenancy ends.

5.  Tenants may verify the authenticity of any addendum by entering the AIN into the public database.

6.  Falsifying, omitting, or altering required disclosures constitutes:

a.  A civil infraction fine up to $5,000 per lease; and

b.  Grounds for immediate suspension or revocation of certification (Section 9).

7.  Certified landlords must use the official addendum form or an approved substantially similar version.

8.  Pre‑act leases must be brought into compliance upon renewal, modification, or within 24 months of the effective date, whichever occurs first.

1.  When a landlord’s certification is suspended, revoked, or expires, any tenant lawfully occupying the property shall be granted a Tenant Safety Period of 60 calendar days beginning on the date the Department issues formal notice of the certification action.

2.  During the Tenant Safety Period:

a.  The tenant’s right to occupy continues under existing lease terms;

b.  The landlord remains responsible for providing all essential services;

c.  The landlord may not collect rent unless rent is deposited into escrow as provided herein; and

d.  No eviction, non‑renewal, or retaliation based on the certification status is permitted.

3.  Within ten business days of certification suspension or revocation, the landlord must provide written notice to all affected tenants describing the certification action, the start and end dates of the safety period, and instructions for paying rent into escrow with the county clerk. Failure to give notice triggers direct notice by the Department.

4.  Tenants shall deposit rent with the Clerk of District Court in the county where the property is located. The clerk shall:

a.  Hold all funds in escrow pending certification reinstatement;

b.  Release funds to the landlord only upon written confirmation of reinstatement; and

c.  Return any remaining funds to tenants if certification is not reinstated within the safety period.

5.  If certification remains revoked or suspended after 60 days, the Department or county attorney may:

a.  Petition the district court to appoint a Temporary Property Trustee (Section 18);

b.  Authorize an additional 30 day occupancy period if immediate relocation would cause hardship; and

c.  Seek civil penalties against the landlord for ongoing non‑compliance.

6.  Tenants may voluntarily terminate the lease and vacate during the safety period with at least seven days’ written notice to the landlord and Department.

7.  The safety period does not limit a tenant’s right to pursue damages, rent abatement, or other civil remedies under Title 70, chapter 24, MCA, or other law.

8.  The Department shall record all safety periods, escrow deposits, and outcomes in the OTLC database.

1.  If a landlord’s certification is suspended, revoked, or expired for more than 60 days and tenants remain in possession, the Department or county attorney may petition the district court to appoint a Temporary Property Trustee to manage the property for tenant protection and public‑health preservation.

2.  The petition must include:

a.  Evidence of the landlord’s certification status;

b.  Description of the property and current occupancy;

c.  Documentation of health, safety, or utility concerns; and

d.  Name and qualifications of a proposed trustee.

3.  The court shall appoint a trustee if:

a.  The landlord has failed to comply;

b.  Tenants face loss of essential services, unsafe conditions, or unlawful eviction; and

c.  Appointment is necessary to prevent further harm.

4.  A trustee must:

a.  Hold a valid landlord certification;

b.  Have no financial interest in the property or prior relationship with the landlord; and

c.  Meet any additional qualification standards adopted by rule.

5.  Upon appointment, the trustee shall:

a.  Take temporary control of the property and any escrowed rent;

b.  Ensure continuous provision of essential services;

c.  Collect and manage rents in trust, subject to court oversight;

d.  Pay necessary operating expenses to maintain habitability; and

e.  Provide monthly accountings to the court, Department, and tenants.

6.  The trustee may not sell, transfer, or encumber the property; may not alter lease terms or evict tenants except by court order; and may not collect personal management fees exceeding 10 % of rents without court approval.

7.  The trustee’s term shall not exceed 180 days, unless renewed by court order for good cause.

8.  The trustee’s duties terminate upon:

a.  Landlord reinstatement of certification and compliance;

b.  Sale or lawful transfer of the property to a certified owner; or

c.  Expiration of the term with tenants transitioned to alternative housing.

9.  All costs incurred by the trustee, including administrative and legal fees, are recoverable from rents collected or as a lien subordinate to taxes and recorded mortgages.

10.  The Department shall maintain a roster of qualified certified individuals available to serve as trustees and publish the list on its website.

1.  Each certified landlord shall file a Tenant Occupancy Notice with the Department within 15 days of the commencement of any new tenancy for a property covered by this act.

2.  The notice shall be submitted electronically via the certification database and include:

a.  Landlord’s certification number;

b.  Property address;

c.  Start date of tenancy and intended term;

d.  Name and contact information of one adult tenant designated for official notifications; and

e.  Landlord’s attestation that the information is true and complete.

3.  The Department shall maintain all notices in a confidential registry linked to each landlord’s certification record. Access shall be limited to the Department, county attorneys, local health departments, and OTLC for enforcement and safety notifications. Tenant names and contact information shall not be made public or used for non‑enforcement purposes.

4.  When a landlord’s certification is suspended, revoked, or expires, the Department shall use the registry to:

a.  Notify affected tenants directly of the certification status;

b.  Inform tenants of their rights under the Tenant Safety Period (Section 17);

c.  Provide contact information for OTLC, the county health department, and the county attorney; and

d.  Advise tenants of safe housing options, emergency services, or relocation assistance if applicable.

5.  Failure to file a Tenant Occupancy Notice constitutes a minor violation subject to a $250 administrative penalty per occurrence; continued failure for more than 30 days after notice constitutes a major violation subject to certification suspension.

6.  Tenants may voluntarily submit occupancy verification through the OTLC portal if they believe their landlord has failed to register; such submissions shall receive the same confidentiality protections.

1.  Privacy – All personal data collected under this act is confidential under Title 2, chapter 6, part 10, MCA. The Department shall adopt technical and administrative safeguards (encryption, access logs, privacy‑impact assessments) to prevent unauthorized disclosure.

2.  Grace Period – A two‑year compliance grace period (July 1 2026 – July 1 2028) allows existing landlords to obtain certification without immediate penalty, except where willful endangerment or refusal to participate is evident.

3.  Incentives – To encourage early participation:

a.  25 % fee reduction for certification completed within the first year of implementation;

b.  50 % discount for seniors (≥65 years) and veterans who personally manage their properties; and

c.  Fee waivers or hardship adjustments for low‑income owners upon verified application.

4.  Financial Incentives – In coordination with the Montana Housing Division, the Department may develop incentives for certified landlords, including eligibility for low‑interest rehabilitation loans, tax credits for code‑compliant upgrades, and priority for state or federal rental‑assistance programs that require certified landlord participation.

5.  Market Stability – No tenant may be evicted or denied renewal solely because a landlord is in the process of obtaining certification during the grace period. County attorneys and courts shall consider good‑faith participation as a mitigating factor when evaluating penalties. The Department may issue Temporary Operating Permits (valid up to six months) to landlords actively completing education and inspection requirements.

6.  The Department shall conduct an annual market‑impact review during the grace period and report to the Economic Affairs Interim Committee, including numbers of certified landlords, properties brought into compliance, rental‑housing availability or pricing changes, and recommendations to maintain balance between tenant protection and landlord viability.

1.  No person, partnership, corporation, LLC, trust, or other entity may engage in residential rental through a proxy or substitute certification that does not belong to the individual or entity exercising direct management authority.

2.  Direct management authority includes any person who:

a.  Collects or receives rent;

b.  Negotiates or signs leases;

c.  Communicates with tenants regarding repairs, maintenance, or compliance;

d.  Enforces lease terms or initiates eviction; or

e.  Controls or supervises any of the above activities through an employee or agent.

3.  Each person exercising direct management authority must hold an active, valid landlord certification.

4.  Prohibited practices:

a.  Using another person’s certification to appear compliant;

b.  Employing or authorizing an uncertified person to perform landlord duties;

c.  Listing a certification belonging to a friend, family member, or employee who does not control the property; or

d.  Operating under a property‑management company’s certification unless the certified representative directly oversees the property and tenant relationship.

5.  Violations constitute fraudulent certification use and are subject to:

a.  Civil fine up to $5,000 per property per month;

b.  Immediate suspension or revocation of the misused certification; and

c.  Referral to the county attorney for criminal prosecution if willful misrepresentation is found.

6.  Anyone knowingly allowing their certification to be used by an uncertified landlord for the purpose of appearing compliant is equally liable.

7.  Upon determination of fraudulent use, the Department shall record the violation in the public database, notify affected tenants, and may pursue additional civil or criminal remedies.

1.  Corporations, LLCs, partnerships, and trusts that own or manage rental property must designate a Responsible Managing Agent (RMA) who holds an active landlord certification and is listed in the certification database.

2.  The entity shall file a Statement of Responsibility with the Department, including:

a.  Names of all owners or members;

b.  The RMA’s name, certification number, and contact information; and

c.  Physical address of the rental property(ies).

3.  The RMA assumes joint and several liability for all violations of this act committed by the entity.

4.  Certification automatically suspends if no active RMA is designated or if the RMA’s certification lapses.

5.  The entity may not hide behind shell companies or trusts to evade certification; any attempt to do so shall result in immediate suspension, revocation, and civil penalties of up to $10,000 per property per month.

1.  A Landlord Education and Enforcement Fund (LEEF) is created as a special revenue account administered by the Department.

2.  All certification fees, renewal fees, re‑examination fees, reinstatement fees, and penalties collected under this act shall be deposited into LEEF.

3.  LEEF may be used exclusively for:

a.  Development and administration of the education and examination program (Section 6);

b.  Maintenance of the certification database (Section 8);

c.  Enforcement investigations, inspections, and OTLC operations (Sections 10‑13);

d.  Tenant education materials, public outreach, and the Tenant Rights Handbook (Section 15).

4.  No appropriations from the State General Fund shall be used for LEEF, and no portion of LEEF may be transferred to the General Fund.

1.  The Department shall develop a digital portal that generates a Cody’s Law Lease Addendum for every filed lease, automatically populating certification ID, water‑right, and sanitation data, and assigning a unique Addendum Identification Number (AIN).

2.  Landlords must provide a printed or electronic copy of the completed addendum to the tenant before occupancy and retain a signed copy for at least five years after tenancy ends.

3.  Tenants may verify the addendum’s authenticity by entering the AIN into the public certification database.

1.  An Office of Tenant and Landlord Compliance (OTLC) is established within the Department of Commerce to:

a.  Receive and investigate tenant complaints statewide;

b.  Coordinate enforcement with county attorneys, DNRC, DEQ, and local health departments;

c.  Issue Notices of Non‑Compliance and Temporary Habitability Orders to protect tenants while investigations are pending;

d.  Operate a toll‑free hotline (1‑800‑CODY‑MT) and an online complaint portal; and

e.  Assign a Tenant Assistance Liaison in each county.

2.  The OTLC shall maintain a case‑management system that links complaints to landlord certification records, enforcement actions, and the certification database.

3.  The OTLC shall file an annual report with the Legislature summarizing complaints received, investigations conducted, enforcement actions taken, and outcomes.