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Criminal penalties could be coming to landlords misusing tenant funds

Last updated: June 13, 2025 4:37 pm
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Criminal penalties could be coming to landlords misusing tenant funds
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(The Center Square) — A bill that could provide penalties for misuse of tenant funds by landlords is headed to Gov. Jeff Landry’s desk for a possible signature.

Landlords could soon receive criminal penalties for misusing tenant funds. Both the Senate and the House approved legislation by Rep. Steven Jackson, D-Shreveport, this week securing it a place on the governor’s desk.

The legislation would require funds received by landlords be paid to the owed balance no later than 60 days after the tenant receives the utility bill.

If the misappropriation of funds is $25,000 or more, the accused would be imprisoned for no more than 20 years and face fines up to $50,000. If the misappropriation totals $5,000 or more but less than $25,000, the accused faces up to 10 years of imprisonment and fines up to $10,000. Those accused of misappropriating $1,000 to $4,999 face up to five years of imprisonment and up to $3,000 in fines.

Any misuse of less than $1,000 will result in up to six months of imprisonment and/or fines up to $1,000.

Those victimized by landlord misappropriation will receive restitution for financial losses.

Jackson has been fighting for tenant rights since February after speaking to the Shreveport City Council about the newly introduced bill. Issues of landlords misusing funds throughout Shreveport and Caddo Parish are not new, and city officials have continuously explored legislation, ordinances, and resolutions to help residents.

The proposed legislation will hold landlords responsible for misusing funds received by tenants in apartment complexes. Many residents have paid their water and utility bills in the past only to be evacuated from their homes after services were shut off.

The Shreveport City Council has sent in their support for many bills concerning Shreveport, including HB6.

“I see this as a solution for hardworking honest people who have been taken advantage of,” Jackson said previously.

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