Amends TCA Section 66-28-301.

This bill requires landlords in counties that are subject to the Uniform Residential Landlord and Tenant Act (which are counties with a population of more than 75,000) to provide security deposit alternatives to tenants. Under this bill, upon a tenant's request, a landlord who requires a security deposit must offer and accept in lieu of the required security deposit rental security insurance or a bond that satisfies the following criteria: (1) The insurance provider is an approved carrier licensed by, and in good standing with, the department of commerce and insurance; (2) The coverage is effective upon the payment of the first premium and remains effective for the entire lease term; and (3) The coverage provided per claim is no less than the amount the landlord requires for security deposits; Prior to entering into a rental agreement, a landlord must provide the tenant written notice of the available security deposit alternatives above. This bill provides that if rental security insurance or a bond meeting the criteria listed above in (1)-(3) is not available, then the landlord does not have to offer the rental deposit alternative described above. This bill states that it will not apply to a deposit placed with a landlord to secure the availability of a rental unit more than 60 days prior to the commencement of the rental period. A tenant who elects to provide rental security insurance or a bond in lieu of a required security deposit will not be required to provide additional security or insurance coverage per claim in an amount greater than the amount required for security deposits. Currently, counties under the Act are Anderson, Blount, Bradley, Davidson, Hamilton, Knox, Madison, Maury, Montgomery, Rutherford, Sevier, Shelby, Sullivan, Sumner, Washington, Williamson, and Wilson.