SECTION 1. Chapter 22D of the General Laws is hereby amended by adding the following section:-

Section 7. (a) There shall be established and set up on the books of the commonwealth a Tenant Fire Safety Trust Fund to be expended, without further appropriation, by the state fire marshal for the purposes of establishing and administering a program to assist landlords and lessors with providing fire safety education and fire prevention measures in multi-unit residential properties. There shall be credited to the trust fund: (i) any funds deposited in the trust fund pursuant to paragraphs (2) and (3) of subsection (b) of section 101 of chapter 143; (ii) any funds that may be appropriated or transferred for deposit into the trust fund; and (iii) any income derived from investment of amounts credited to the trust fund. Any balance in the fund at end of the fiscal year shall not revert to the General Fund, but shall remain available for expenditure in subsequent fiscal years. No expenditure made from the fund shall cause the fund to become deficient at any point during a fiscal year.

(b) Annually, not later than October 1, a report shall be filed with the clerks of the house of representatives and the senate and the house and senate committees on ways and means that shall include expenditures made and income received by the fund.

SECTION 2. Chapter 143 of the General Laws is hereby amended by adding the following section:-

Section 101. (a) An apartment or dwelling unit in any structure containing 3 or more dwelling units in any municipality that accepts this section in the manner provided in section 4 of chapter 4 shall not be occupied for human habitation, after a vacancy, until a certificate of occupancy has been issued by the building inspector, certifying that such apartment or dwelling unit: (i) conforms to the requirements of the applicable housing ordinances of the municipality; (ii) the state building code, as codified in 780 CMR, and (iii) until necessary fire safety inspections have been completed pursuant to chapter 148; provided, however, that this section shall not apply to any structure occupied by the owner thereof and containing 3 or less dwelling units; provided, further, that this section shall not prohibit human occupancy of such apartment or dwelling unit during the pendency of an application for a certificate of occupancy.

The state fire marshal, head of the fire department as defined in section 1 of said chapter 148, or any person to whom the marshal or head of the fire department may delegate the authority to perform fire safety inspections pursuant to section 4 of said chapter 148 shall notify the building inspector of the completion of necessary fire inspections pursuant to this subsection.

(b) (1) Any owner or lessor who recovers rent for the occupation of any apartment or dwelling unit for which a certificate of occupancy has not been obtained or for which necessary fire safety inspections have not been completed prior to the rental thereof in violation of subsection (a) shall be subject to a civil fine of not more than $20 per day per violation for not more than 200 days for such period of unlawful occupation.

(2) Notwithstanding 105 CMR 410.900 of the state sanitary code, any owner or lessor of a structure not occupied by the owner or lessor who refuses entry to any apartment or dwelling unit for the purposes of completing an inspection for the issuance of a certificate of occupancy or fire safety inspection shall receive a warning for the first offense and be subject to a civil fine of not more than $250 for the second offense and $500 for a third or subsequent offense; provided, however, that an owner or lessor may not be subject to an escalated penalty if the owner or lessor has shown good faith in complying with this section. All fines imposed pursuant to this paragraph and unpaid after 45 days shall become a lien upon the property, which shall have priority over all other liens. 

(3) Notwithstanding 105 CMR 410.900 of the state sanitary code, any owner or lessor of a structure who refuses entry to any apartment or dwelling unit of a structure that is occupied by the owner or lessor for the purposes of completing an inspection for the issuance of a certificate of occupancy or fire safety inspection shall receive a warning for the first offense and be subject to a civil fine of not more than $100 for the second offense and $250 for a third or subsequent offense; provided, however, that an owner or lessor may not be subject to an escalated penalty if the owner or lessor has shown good faith in complying with this section. All fines imposed pursuant to this paragraph and unpaid after 45 days shall become a lien upon the property, which shall have priority over all other liens. 

(4) Fifty per cent of any fine collected pursuant to this subsection shall be deposited in a fund established for each municipality collecting such fine to be used for inspections for the issuance of a certificate of occupancy or fire safety inspection and the remaining 50 per cent of any fine collected shall be deposited in the tenant fire safety trust fund established pursuant to section 7 of section 22D.

SECTION 3. Section 99 of chapter 175 of the General Laws, as so appearing in the 2018 Official Edition, is hereby amended by striking out clause fifteenth A and inserting in place thereof the following clause:- Fifteenth A, Every policy which insures multi-unit residential property against loss or damage by fire shall provide additional benefits, by endorsement attached to the policy, up to a limit of $750, without deductible, for each rental unit to cover the actual costs of relocation of any tenant or lawful occupant displaced by fire or by damage resulting from fire; provided, however, that every policy which insures a multi-unit residential property containing 6 or more units against loss or damage by fire shall provide additional benefits, by endorsement attached to the policy, of not less than $1,500, without deductible, for each rental unit to cover the actual costs of relocation of any tenant or lawful occupant displaced by fire or by damage resulting from fire.

The actual costs of relocation shall include, but not be limited to, hotel room rental, a security deposit and first month's rent for a new rental unit if the security deposit or last month's rent is not already due and owing from the landlord to the tenant, clothing replacement, furniture replacement and other reasonable costs and living expenses as a result of being displaced or damaged by fire. Benefits under this clause shall be paid by the insurer to the tenant or lawful occupant after taking into account benefits available under any other policy. The terms and conditions of such clause shall be approved or prescribed by the commissioner. The landlord or lessor of the property shall notify each tenant or lawful occupant in writing of the benefits payable under this clause at the beginning of the lease or tenancy period. A waiver of this provision in any lease or other rental agreement shall be void and unenforceable.