The Louisiana Legislature got serious this year about landlords who pocket the money their tenants pay for utility bills. Will the boys at the Capitol do the same?
Louisiana State Representative Steven Jackson authored HB 6. The bill toughens criminal penalties for landlords who embezzle money from their tenants meant for utilities when the lease agreement requires tenants to pay utility fees to the landlord. The bill states:
Section 2. It is the intent of the legislature to establish a clear criminal offense forthe misappropriation of utility funds received under a lease or rental agreement. This statute is designed to address circumstances where payments collected for utility services are knowingly or fraudulently diverted, resulting in harm to tenants and utility providers. It is not intended to apply to isolated errors or good-faith disputes, but rather to conduct that reflects a pattern of intentional nonpayment, misrepresentation, or deception. The legislature further intends for this statute to apply to both natural and juridical persons, including entities, in line with other Louisiana statutes addressing contract-based financial misconduct.
The bill creates penalties for various levels of embezzlement:
* If the amount is >$25,000, the maximum penalty is 20 years in prison and/or $50,000 fine.
* If the amount is <$25,000 but >$5,000, the maximum penalty is 10 years in prison and/or $10,000 fine.
* If the amount is <$5,000 but >$1,000 the maximum penalty is 5 years in prison and/or $3,000 fine.
* If the misappropriation is less than $1,000, the maximum penalty is six months in prison and/or $1,000 fine.
HB 6 mandates the offender "shall" pay "full restitution" to the victim (s). The bill applies to all officers or agents of the landlord. It pierces the "corporate veil". The State Representative included the language after Shreveport tried to prosecute a landlord for pocketing his tenant's utility fees but found it could not do so as it was the company that was charged with the crimes.
The bill passed both chambers unanimously. Governor Jeff Landry signed the bill into law in June. It became effective on August 1.
Wayward landlords have become a real problem in Shreveport. The Shreveport-Bossier City Advocate reported this year:
Residents of three Shreveport apartment complexes — the Village Square, Southern Oaks and NMI Village Square apartments — this week lost full access to water at their apartments because the property owners owe the city for long-overdue bills. The city temporarily is allowing tenants access to water for four hours a day but will enact full disconnection in a matter of weeks. Last year, three other apartment complexes were emptied of tenants through similar city actions. Those apartment complexes run on master water meters, meaning tenants pay utility fees and the property owners pay the actual utility bills. ... The City of Shreveport, in its struggle to rein in problematic landlords, already has tried unsuccessfully to turn criminal blight charges into jailtime. The city charged Amar Shreveport Holdings LLC, the owner of several rundown complexes some of which also owed hefty amounts in overdue utility bills, with a smattering of property crimes last year. It took months to get anyone into a courtroom, and the result was much less than hoped for when that finally happened. Attorney Dhu Thompson represented Amar Shreveport Holdings LLC in court. The business owner the city hoped to jail, Yacov Smouha, never showed up and didn't have to. Thompson successfully argued it was the company, not Smouha, who'd been charged with the crimes and that a company couldn't be sent to jail. Article
The bill also allows courts to place the landlords on a payment plan as well as seize the properties.
14 comments:
The boys at the Capitol won't do the same if the landlords donate enough.
That’s shocking that Louisiana managed to pass this under Republican control and only 9 republicans voted against it. I’m truly shocked, good for them.
No, that would be too sensical-
Wasn't that something the mayor talked about to the committee this
week?
Go back and look final version was unanimous
Our State Legislature, who loves pissing Jackson leadership off, won't even pass no brainer legislation to form a regional entity to manage the Jackson water system. No way they'd pass any legislation to help poor tenants out.
That is a great idea. Hopefully we can do the same.
I want to know where the poor peoples campaign is? Are they still in business? This deal seems right up their alley.
Good call KF. Maybe this will help provide a roadmap for MS.
Wow. Those are some real criminal penalties with some real time attached. Good on Louisiana.
How many of the LBC are landlords doing the same thing? Look deeper.
There is no need for a "regional entity" to manage just one water system.
As I recall, the people behind Hotel O in Jackson tried to play games, but Judge Reynolds managed to drag them all into court.
Maybe some of the failures of this particular case could be laid at the feet of the Shreveport City Attorney, and/or perhaps a weak judge.
In any event, this law is clearly needed, as this appears to be a growing problem.
Thankfully once again another state has shown us what to do, it's so much safer and easier to follow rather than trailblaze.
Post a Comment