An Act to allow a dealer in motor homes or recreational park trailers to construct and operate campsites at a dealership location revise procedures for returning and withholding security deposits and to change the maximum allowable punitive damages.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That § 43-32-24 be AMENDED:

43-32-24. Every lessor of residential premises shall, within two weeks twenty-eight days after the termination of the tenancy and receipt of the tenant's mailing address or delivery instructions, return the security deposit to the tenant, or furnish to the tenant, a written statement showing the specific reason for the withholding of the deposit or any portion thereof of the deposit. The lessor may withhold from such the deposit only such the amounts as are reasonably necessary to remedy tenant defaults in the payment of rent or of other funds due to the landlord pursuant to an agreement or to restore the premises to their the condition at the commencement of the tenancy, ordinary wear and tear excepted. Within forty‑five days after termination of the tenancy, upon request of the lessee, the lessor shall provide the lessee with an itemized accounting of any deposit withheld.

Any lessor of residential premises who fails to comply with this section shall forfeit all rights to withhold any portion of such the deposit.

The bad faith retention of a deposit or any portion of a deposit by a lessor of residential premises in violation of this section, including failure to provide the written statement and itemized accounting required by this section, shall subject the lessor to punitive damages not to exceed two hundred dollars the total amount of the security deposit.