Bill Text: TX HB4039 | 2021-2022 | 87th Legislature | Introduced

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Bill Title: Relating to certain rights and duties of residential tenants and landlords; imposing civil penalties.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2021-03-29 - Referred to Business & Industry [HB4039 Detail]

Download: Texas-2021-HB4039-Introduced.html

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87R3860 DRS-F
By: Walle H.B. No. 4039

A BILL TO BE ENTITLED
AN ACT
relating to certain rights and duties of residential tenants and
landlords; imposing civil penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 24.005, Property Code, is
amended to read as follows:
Sec. 24.005. NOTICE TO CURE DEFAULT FOR NONPAYMENT OF RENT;
NOTICE TO VACATE PRIOR TO FILING EVICTION SUIT.
SECTION 2. Section 24.005, Property Code, is amended by
amending Subsection (a) and adding Subsections (a-1), (a-2), and
(a-3) to read as follows:
(a) Except as provided by Subsections (a-1) and (a-2), if
[If] the occupant is a tenant under a written lease or oral rental
agreement, the landlord must give a tenant who defaults or holds
over beyond the end of the rental term or renewal period at least
three days' written notice to vacate the premises before the
landlord files a forcible detainer suit, unless the parties have
contracted for a shorter or longer notice period in a written lease
or agreement. A landlord who files a forcible detainer suit on
grounds that the tenant is holding over beyond the end of the rental
term or renewal period must also comply with the tenancy
termination requirements of Section 91.001.
(a-1) The landlord must give a residential tenant who
defaults for nonpayment of rent 10 days' written notice and an
opportunity to cure the default by paying any delinquent rent
before issuing the notice to vacate under Subsection (a-2). The
written notice must include, in all capital letters in an easily
readable font and type size, the words "YOU ARE IN DEFAULT OF THE
LEASE FOR NONPAYMENT OF RENT. YOU HAVE 10 DAYS AFTER THE DATE THIS
NOTICE WAS DELIVERED TO PAY THE RENT BEFORE A NOTICE TO VACATE MAY
BE ISSUED. CALL THE STATE BAR OF TEXAS TOLL-FREE AT 1-877-9TEXBAR
IF YOU NEED HELP LOCATING AN ATTORNEY. IF YOU CANNOT AFFORD TO HIRE
AN ATTORNEY, YOU MAY BE ELIGIBLE FOR FREE OR LOW-COST LEGAL
ASSISTANCE."
(a-2) After a landlord gives a tenant an opportunity to cure
under Subsection (a-1), the landlord must give the tenant at least
14 days' written notice to vacate the premises before the landlord
files a forcible detainer suit. The notice to vacate must state the
reason for the notice and must include, in all capital letters in an
easily readable font and type size, the words "THIS IS NOT AN
EVICTION ORDER. THIS IS A DEMAND FOR POSSESSION OF THE PROPERTY.
AN EVICTION CASE MAY BE FILED AGAINST YOU 14 DAYS AFTER THE DATE
THIS NOTICE WAS DELIVERED. CALL THE STATE BAR OF TEXAS TOLL-FREE AT
1-877-9TEXBAR IF YOU NEED HELP LOCATING AN ATTORNEY. IF YOU CANNOT
AFFORD TO HIRE AN ATTORNEY, YOU MAY BE ELIGIBLE FOR FREE OR LOW-COST
LEGAL ASSISTANCE."
(a-3) If applicable, the written notice to vacate must
inform a residential tenant of the tenant's right to cure the
default for nonpayment of rent under Section 24.00605.
SECTION 3. Chapter 24, Property Code, is amended by adding
Sections 24.00605, 24.012, 24.013, and 24.014 to read as follows:
Sec. 24.00605. RESIDENTIAL TENANT'S RIGHT TO CURE BEFORE
WRIT OF POSSESSION ISSUED. (a) Except as provided by Subsection
(b), a residential tenant who is in default for nonpayment of rent
under a written or oral lease may cure the default and reinstate the
lease by paying all rent, court costs, and attorney's fees not later
than the date that a writ of possession is executed.
(b) Unless the lease provides otherwise, a tenant may not
cure a default if the tenant cured a default under this section in
the 12-month period preceding the date the writ of possession is
executed.
Sec. 24.012. ACCESS TO EVICTION CASE INFORMATION. (a) In
this section:
(1) "Eviction case" means a lawsuit brought under this
chapter to recover possession of leased or rented residential real
property from a tenant.
(2) "Eviction case information" means all records and
files related to a filing of an eviction case, including petitions
and dispositions.
(b) This section applies to an eviction case in which an
order granting limited dissemination of eviction case information
has not been entered under Section 24.013.
(c) The court clerk shall allow access to eviction case
information only to:
(1) a party to the action, including a party's
attorney;
(2) a person who provides the clerk with:
(A) the names of at least one plaintiff and one
defendant; and
(B) the address of the premises, including the
apartment or unit number, if any;
(3) a resident of the premises who:
(A) provides the clerk with the name of one of the
parties or the case number; and
(B) shows proof of residency;
(4) a person in accordance with a court order, which
may be granted ex parte, issued on a showing of good cause;
(5) a person in accordance with a court order issued at
the time the judgment in the case is entered, if the judgment is
entered:
(A) for the plaintiff after a trial; and
(B) after the 60th day after the date the
complaint was filed; or
(6) any other person after the 60th day after the date
the complaint was filed:
(A) if the plaintiff prevailed in the action
before the 60th day after the date the complaint was filed; or
(B) if the case involved residential real
property purchased at a foreclosure sale and judgment against all
defendants was entered for the plaintiff after a trial.
(d) If a default or default judgment is set aside after the
60th day after the date the complaint was filed, this section
applies as if the complaint had been filed on the date the default
or default judgment is set aside.
(e) This section may not be construed to prohibit the court
from issuing an order that bars access to eviction case information
if stipulated by the parties to the case.
(f) For purposes of this section, good cause for access to
eviction case information includes the gathering of:
(1) newsworthy facts by a journalist as defined by
Article 38.11, Code of Criminal Procedure; and
(2) evidence by a party to the eviction case solely for
the purpose of making a request for judicial notice.
(g) After the filing of an eviction case, the court clerk
shall mail notice to each defendant named in the case. The notice
must be mailed to the address provided in the complaint. The notice
must contain a statement that an eviction case has been filed
against the defendant and that access to the eviction case
information will be delayed for 60 days except to a party, an
attorney for one of the parties, a person who has good cause for
access as determined by a court, or any other person who provides to
the clerk:
(1) the names of at least one plaintiff and one
defendant in the case and provides to the clerk the address,
including any applicable apartment or unit number, of the subject
premises; or
(2) the name of one of the parties in the case or the
case number and can establish through proper identification that
the person resides at the address identified in the case.
(h) The notice must also contain:
(1) the name and telephone number of the county bar
association for the county in which the case is filed;
(2) the name and telephone number of any entity that
requests inclusion on the notice and demonstrates to the
satisfaction of the court that the entity has been certified by the
State Bar of Texas as a lawyer referral service and maintains a
panel of attorneys qualified in the practice of landlord-tenant law
under the minimum standards for a lawyer referral service
established by the State Bar of Texas and Chapter 952, Occupations
Code;
(3) the following statement: "The State Bar of Texas
certifies lawyer referral services in Texas and publishes a list of
certified lawyer referral services. To locate a lawyer referral
service in your area, go to the State Bar's Internet website at
www.texasbar.com or call 1-877-9TEXBAR.";
(4) the names and telephone numbers of offices that
provide legal services at low or no cost to low-income persons in
the county in which the action is filed; and
(5) a statement that a person receiving the notice may
call the telephone numbers described in the notice for legal advice
regarding the case.
(i) The court clerk shall mail a notice required under this
section not earlier than the 24th hour and not later than the 48th
hour after the time the eviction case is filed, excluding weekends
and holidays.
(j) The court clerk shall mail separately to the subject
premises one copy of the notice addressed to "all occupants." The
notice does not constitute service of the summons and complaint.
Sec. 24.013. LIMITED DISSEMINATION OF EVICTION CASE
INFORMATION. (a) In this section, "eviction case" and "eviction
case information" have the meanings assigned by Section 24.012.
(b) Concurrently with a final judgment or dismissal in an
eviction case or on petition of a defendant in an eviction case
after a final judgment or dismissal in the case, a court shall enter
an order of limited dissemination of the eviction case information
pertaining to the defendant if:
(1) the judgment is or was entered in favor of the
defendant;
(2) the eviction case is or was dismissed without any
relief granted to the plaintiff;
(3) the defendant is or was a tenant not otherwise in
default and the eviction case was brought by the landlord's
successor in interest following foreclosure; or
(4) at least three years have elapsed from the date of
the final judgment in the eviction case.
(c) Concurrently with a final judgment or dismissal in an
eviction case or on petition of a defendant in an eviction case
after a final judgment or dismissal in the case, a court may order
the limited dissemination of eviction case information pertaining
to the defendant if the court finds that:
(1) the limited dissemination of the eviction case
information is in the interest of justice; and
(2) the interest of justice is not outweighed by the
public's interest in knowing the eviction case information.
(d) If an order is entered granting limited dissemination of
eviction case information pertaining to a defendant under this
section:
(1) all courts or court clerks shall delete or redact
all index references to the name of the defendant that relate to the
eviction case information from the public records; and
(2) except to the extent permitted by federal law, a
credit reporting agency, a person who regularly collects and
disseminates eviction case information, or a person who sells
eviction case information may not:
(A) disclose the existence of the eviction case;
or
(B) use the eviction case information as a factor
in determining a score or recommendation in a tenant screening
report regarding the defendant.
(e) A person who knowingly violates Subsection (d) is liable
to an injured party for:
(1) actual damages;
(2) exemplary damages of $1,000; and
(3) reasonable attorney's fees and court costs.
(f) Notwithstanding Section 41.004(a), Civil Practice and
Remedies Code, a court shall award exemplary damages under
Subsection (e)(2) to the injured party irrespective of whether the
party is awarded actual damages.
Sec. 24.014. EVICTION CASE INFORMATION RELATED TO COVID-19
PANDEMIC. (a) In this section, "eviction case" has the meaning
assigned by Section 24.012.
(b) Except as provided by Subsection (d), a landlord may not
refuse to rent, negotiate for the rental of, or in any other manner
make unavailable or deny a dwelling to a person because of an
eviction case brought against the person during a state of disaster
declared by the governor under Section 418.014, Government Code,
related to the coronavirus disease (COVID-19) pandemic or before
the 180th day after the date of termination of the state of
disaster.
(c) A court may find that limited dissemination of
information related to an eviction case brought against a person
during the period described by Subsection (b) is in the interest of
justice for purposes of Section 24.013.
(d) This section does not apply to an eviction case based on
actions of the tenant that create an imminent threat to the health
or safety of the landlord, a member of the landlord's or tenant's
household, other tenants, or neighbors.
SECTION 4. Section 92.0081(b), Property Code, is amended to
read as follows:
(b) A landlord may not intentionally prevent a tenant from
entering the leased premises except by judicial process unless the
exclusion results from:
(1) bona fide repairs, construction, or an emergency;
or
(2) removing the contents of premises abandoned by a
tenant[; or
[(3) changing the door locks on the door to the
tenant's individual unit of a tenant who is delinquent in paying at
least part of the rent].
SECTION 5. The heading to Section 92.011, Property Code, is
amended to read as follows:
Sec. 92.011. [CASH] RENTAL PAYMENTS.
SECTION 6. Section 92.011, Property Code, is amended by
adding Subsection (b-1) to read as follows:
(b-1) A landlord shall apply any payment received from a
tenant to unpaid rent before applying the payment to a fee, charge,
or other sum of money owed by the tenant that is not rent. This
subsection applies without regard to the method of payment.
SECTION 7. Subchapter A, Chapter 92, Property Code, is
amended by adding Section 92.0111 to read as follows:
Sec. 92.0111. NON-UTILITY MANDATORY SERVICE FEES
PROHIBITED. (a) In this section, "mandatory service" means any
service other than water, gas, or electric utility services
provided to a tenant under a lease and for which the lease does not
allow the tenant to voluntarily opt out of receiving the service.
(b) A landlord shall include any charges for a mandatory
service in the rent and may not charge a tenant a separate fee for a
mandatory service.
SECTION 8. Subchapter A, Chapter 92, Property Code, is
amended by adding Section 92.0133 to read as follows:
Sec. 92.0133. NOTICE FOR DWELLING LOCATED IN FLOODPLAIN.
(a) In this section:
(1) "100-year floodplain" means any area of land
designated as a flood hazard area with a one percent or greater
chance of flooding each year by the Federal Emergency Management
Agency under the National Flood Insurance Act of 1968 (42 U.S.C.
Section 4001 et seq.).
(2) "Flooding" means a general or temporary condition
of partial or complete inundation of a dwelling caused by:
(A) the overflow of inland or tidal waters;
(B) the unusual and rapid accumulation of runoff
or surface waters from any established water source such as a river,
stream, or drainage ditch; or
(C) a ponding of water at or near the place where
heavy or excessive rain fell.
(b) A landlord shall provide to a tenant a written notice
substantially equivalent to the following:
"(Landlord) ( ) is or ( ) is not aware that the dwelling you
are renting is located in a 100-year floodplain. If neither box is
checked, you should assume the dwelling is in a 100-year
floodplain. Even if the dwelling is not in a 100-year floodplain,
the dwelling may still be susceptible to flooding. The Federal
Emergency Management Agency (FEMA) maintains a flood map on its
website that is searchable by address, at no cost, to determine if a
dwelling is located in a flood hazard area. Most tenant insurance
policies do not cover damages or loss incurred in a flood. You
should seek insurance coverage that would cover losses caused by a
flood."
(c) Notwithstanding Subsection (b), a landlord is not
required to disclose on the notice that the landlord is aware that a
dwelling is located in a 100-year floodplain if the elevation of the
dwelling is raised above the 100-year floodplain flood levels in
accordance with federal regulations.
(d) If a landlord knows that flooding has damaged any
portion of a dwelling at least once during the five-year period
immediately preceding the effective date of the lease, the landlord
shall provide a written notice to a tenant that is substantially
equivalent to the following:
"(Landlord) ( ) is or ( ) is not aware that the dwelling you
are renting has flooded at least once within the last five years."
(e) The notices required by Subsections (b) and (d) must be
included in a separate written document given to the tenant before
execution of the lease.
(f) If a landlord violates this section and a tenant suffers
a substantial loss or damage to the tenant's personal property as a
result of flooding, the tenant may terminate the lease by giving a
written notice of termination to the landlord not later than the
30th day after the date the loss or damage occurred. Termination of
a lease under this subsection is effective when the tenant
surrenders possession of the dwelling.
(g) Not later than the 30th day after the effective date of
the termination of a lease under Subsection (f), the landlord shall
refund to the tenant all rent or other amounts paid in advance under
the lease for any period after the effective date of the termination
of the lease.
(h) This section does not affect a tenant's liability for
delinquent, unpaid rent or other sums owed to the landlord before
the date the lease was terminated by the tenant under this section.
SECTION 9. Section 92.019, Property Code, is amended by
amending Subsection (a-1) and adding Subsection (b-1) to read as
follows:
(a-1) For purposes of this section, a late fee is considered
reasonable if[:
[(1)] the late fee is not more than the lesser of [:
[(A) 12 percent of the amount of rent for the
rental period under the lease for a dwelling located in a structure
that contains not more than four dwelling units; or
[(B)] 10 percent of the amount of rent for the
rental period under the lease or $75 [for a dwelling located in a
structure that contains more than four dwelling units; or
[(2) the late fee is more than the applicable amount
under Subdivision (1), but not more than uncertain damages to the
landlord related to the late payment of rent, including direct or
indirect expenses, direct or indirect costs, or overhead associated
with the collection of late payment].
(b-1) A landlord may not charge a tenant a late fee on an
unpaid amount that does not include unpaid rent and consists
entirely of a fee, charge, or other sum of money owed by the tenant
that is not rent, including a late fee charged under Subsection (a).
SECTION 10. Subchapter A, Chapter 92, Property Code, is
amended by adding Section 92.022 to read as follows:
Sec. 92.022. CERTAIN CRIMINAL MATTERS NOT DEFAULT.
Notwithstanding any terms of a lease to the contrary, the arrest,
charge, detention, or deferred adjudication or pretrial diversion
of a tenant for any crime does not constitute a default under the
lease by the tenant.
SECTION 11. Subchapter A, Chapter 92, Property Code, is
amended by adding Section 92.027 to read as follows:
Sec. 92.027. NOTICE REGARDING ENTRY TO DWELLING BY
LANDLORD. (a) Except as provided by Subsection (c), a landlord may
enter a dwelling only if the landlord has delivered to the tenant,
at least 48 hours before the entry, a written notice containing the
date and time the landlord will enter the tenant's dwelling and the
purpose for the entry.
(b) After giving notice as required by Subsection (a), a
landlord may enter a dwelling only:
(1) on the date and at the time contained in the
notice; and
(2) for the purpose stated in the notice.
(c) In the case of an emergency, a landlord may enter a
dwelling as necessary without providing the notice required by
Subsection (a).
(d) A provision of a lease that purports to waive a right or
to exempt a party from a liability or duty under this section is
void.
SECTION 12. Section 92.052, Property Code, is amended by
adding Subsections (a-1), (a-2), and (a-3) to read as follows:
(a-1) Before a lease is executed, a landlord or a landlord's
agent shall:
(1) inspect the premises;
(2) make a diligent effort to complete all repairs
necessary to make the premises habitable, including ensuring that
the premises:
(A) have a device to supply hot water of a minimum
temperature of 120 degrees Fahrenheit that is in good operating
condition; and
(B) comply with the requirements of applicable
building or housing codes material to the physical health and
safety of the ordinary tenant; and
(3) affirm in the lease that the landlord has complied
with this subsection.
(a-2) If, not later than the seventh day after the lease
start date and except as provided by Subsection (a-3), a tenant
discovers that the premises do not meet the requirements of
Subsection (a-1)(2)(A) or (B), the tenant, after notifying the
landlord by giving that notice to the person to whom or to the place
where the tenant's rent is normally paid, may:
(1) terminate the lease;
(2) withhold rent payments or have the condition
repaired or remedied according to Section 92.0561;
(3) deduct from the tenant's rent, without necessity
of judicial action, the cost of the repair or remedy according to
Section 92.0561; and
(4) obtain judicial remedies according to Section
92.0563.
(a-3) A tenant who elects to terminate the lease under
Subsection (a-2) is:
(1) entitled to a pro rata refund of rent from the date
of termination or the date the tenant moves out, whichever is later;
(2) entitled to deduct the tenant's security deposit
from the tenant's rent, without necessity of judicial action, or to
obtain a refund of the tenant's security deposit according to law;
and
(3) not entitled to the other repair and deduct
remedies under Section 92.0561 or the judicial remedies under
Sections 92.0563(a)(1) and (2).
SECTION 13. Section 92.054, Property Code, is amended by
amending Subsections (b) and (c) and adding Subsections (b-1),
(b-2), (b-3), (b-4), (b-5), (d), (e), (f), and (g) to read as
follows:
(b) If after a casualty loss the rental premises are as a
practical matter totally unusable for residential purposes and if
the casualty loss is not caused by the negligence or fault of the
tenant, a member of the tenant's family, or a guest or invitee of
the tenant, either the landlord or the tenant may terminate the
lease by giving written notice to the other any time before repairs
are completed.
(b-1) A notice described by Subsection (b) must be provided:
(1) to a landlord:
(A) by hand delivery or mail to a forwarding
address that the landlord provides to the tenant by e-mail or
otherwise; or
(B) if a forwarding address has not been provided
as described by Paragraph (A):
(i) by hand delivery to the landlord or the
landlord's representative at another location; or
(ii) by mail to the place where the tenant's
rent is normally paid; or
(2) to a tenant:
(A) by hand delivery or mail to a forwarding
address that the tenant provides to the landlord by e-mail or
otherwise; or
(B) if a forwarding address has not been provided
as described by Paragraph (A):
(i) by hand delivery to the tenant at
another location; or
(ii) by mail to the tenant's rental
premises.
(b-2) A termination of a lease as authorized by Subsection
(b) may not take effect before the 15th day after the date the
notice is delivered. If more than one method under Subsection (b-1)
is used to provide notice, the method under which the notice was
delivered on the earliest date applies for purposes of this
subsection.
(b-3) A landlord may not charge rent for the rental premises
and rent for the rental premises may not accrue after the date the
premises became as a practical matter totally unusable for
residential purposes as a result of a casualty loss.
(b-4) Subject to Subsection (b-5) and notwithstanding that
the termination of the lease has not taken effect under Subsection
(b-2), if a notice to terminate [If] the lease is provided under
this section [terminated], the landlord shall pay to the tenant not
later than the fifth day after the date the notice is delivered:
(1) a refund of any prepaid rent;
(2) [is entitled only to] a pro rata refund of rent
from the date the rental premises became as a practical matter
totally unusable for residential purposes as a result of a casualty
loss; [tenant moves out] and
(3) [to] a full refund of any security deposit
[otherwise required by law].
(b-5) If a tenant has not provided the landlord a forwarding
address as described by Subsection (b-1)(2)(A), the period for
providing the refund amounts specified by Subsection (b-4) is
tolled until the tenant provides the landlord a written statement
by e-mail or otherwise of the tenant's forwarding address for the
purpose of refunding those amounts. A tenant that provides notice
under Subsection (b) may provide the written statement of the
tenant's forwarding address in that notice. A landlord that
provides notice under Subsection (b) must include a statement
informing the tenant of the requirement of this subsection.
(c) If after a casualty loss the rental premises are
partially unusable for residential purposes and if the casualty
loss is not caused by the negligence or fault of the tenant, a
member of the tenant's family, or a guest or invitee of the tenant,
the tenant is entitled to reduction in the rent for the month in
which the casualty loss occurs and any subsequent months in the
lease term in which the rental premises are partially unusable for
residential purposes. The tenant is entitled to determine the
amount of the reduction in the rent, provided that the tenant must
determine [in] an amount that is proportionate to the extent the
premises are unusable because of the casualty loss [, but only on
judgment of a county or district court]. A tenant entitled to a
reduction in rent may deduct and withhold from a rent payment the
amount determined by the tenant [A landlord and tenant may agree
otherwise in a written lease].
(d) It is a defense in a proceeding to recover unpaid rent
for a rental premises, including a proceeding to recover possession
of a rental premises for nonpayment of rent, that a rent payment was
reduced, deducted, and withheld in accordance with Subsection (c).
(e) If a tenant asserts a defense under Subsection (d), the
court shall determine the amount of the reduction in the rent that
is proportionate to the extent the premises are unusable because of
the casualty. If the tenant withheld an amount less than the amount
determined by the court, the court shall enter a judgment for the
tenant in an amount equal to the amount the tenant overpaid. If the
tenant withheld an amount greater than the amount determined by the
court, the court:
(1) may assess late fees in accordance with the lease
if the court finds that the tenant acted in bad faith in reducing or
withholding the rent payment;
(2) shall order the tenant to pay into the registry of
the court or, if the landlord consents in writing, directly to the
landlord:
(A) an amount equal to the amount the tenant
underpaid; and
(B) any late fees assessed under Subdivision (1);
(3) may not enter a final judgment in the proceeding
before the 10th business day after the date the court issued the
order of payment under Subdivision (2); and
(4) shall dismiss the proceeding against the tenant if
the tenant complies with the order of payment under Subdivision (2)
before the 10th business day after the date the court issued the
order of payment under Subdivision (2).
(f) It is a defense in a proceeding to recover possession of
a rental premises after the landlord terminates a lease under this
section that the premises are totally or partially usable for
residential purposes.
(g) A provision of a lease is void if the provision purports
to:
(1) waive a right or exempt a party from a liability or
duty under this section; or
(2) expand a party's right to unilaterally terminate a
lease under this section.
SECTION 14. Sections 92.056(b) and (e), Property Code, are
amended to read as follows:
(b) A landlord is liable to a tenant as provided by this
subchapter if:
(1) the tenant has given the landlord notice to repair
or remedy a condition by giving that notice to the person to whom or
to the place where the tenant's rent is normally paid;
(2) the condition materially affects the physical
health or safety of an ordinary tenant;
(3) the tenant has given the landlord a subsequent
written notice to repair or remedy the condition after a reasonable
time to repair or remedy the condition following the notice given
under Subdivision (1) or the tenant has given the notice under
Subdivision (1) by sending that notice by:
(A) a method specified in the lease;
(B) a method generally accepted by the landlord
in practice;
(C) certified mail, return receipt requested;
(D) [, by] registered mail; [,] or
(E) [by] another form of mail that allows
tracking of delivery from the United States Postal Service or a
private delivery service;
(4) the landlord has had a reasonable time to repair or
remedy the condition after the landlord received the tenant's
notice under Subdivision (1) and, if applicable, the tenant's
subsequent notice under Subdivision (3);
(5) the landlord has not made a diligent effort to
repair or remedy the condition after the landlord received the
tenant's notice under Subdivision (1) and, if applicable, the
tenant's notice under Subdivision (3); and
(6) the tenant was not delinquent in the payment of
rent at the time any notice required by this subsection was given.
(e) Except as provided by [in] Subsection (f), a tenant to
whom a landlord is liable under Subsection (b) [of this section]
may:
(1) terminate the lease;
(2) withhold rent payments or have the condition
repaired or remedied according to Section 92.0561;
(3) deduct from the tenant's rent, without necessity
of judicial action, the cost of the repair or remedy according to
Section 92.0561; and
(4) obtain judicial remedies according to Section
92.0563.
SECTION 15. The heading to Section 92.0561, Property Code,
is amended to read as follows:
Sec. 92.0561. TENANT'S REPAIR AND DEDUCT AND RENT
WITHHOLDING REMEDIES.
SECTION 16. Section 92.0561, Property Code, is amended by
amending Subsections (a), (d), (e), and (f) and adding Subsections
(l) and (m) to read as follows:
(a) If the landlord is liable to the tenant under Section
92.056(b), the tenant may:
(1) withhold rent payments; or
(2) have the condition repaired or remedied and may
deduct the cost from a subsequent rent payment as provided in this
section.
(d) Repairs under this section may be made or rent payments
may be withheld only if [all of the following requirements are met]:
(1) the [The] landlord has a duty to repair or remedy
the condition under Section 92.052, and the duty has not been waived
in a written lease by the tenant under [Subsection (e) or (f) of]
Section 92.006(e) or (f); [92.006.]
(2) the [The] tenant has given notice to the landlord
as required by Section 92.056(b)(1), and, if required, a subsequent
notice under Section 92.056(b)(3);
(3) if the tenant intends to repair or remedy the
condition, [and] at least one of the [those] notices under
Subdivision (2):
(A) states that the tenant intends to repair or
remedy the condition; and
(B) contains [. The notice shall also contain] a
reasonable description of the intended repair or remedy; and [.]
(4) any [(3) Any] one of the following events has
occurred:
(A) the [The] landlord has failed to remedy the
backup or overflow of raw sewage inside the tenant's dwelling or the
flooding from broken pipes or natural drainage inside the dwelling;
[.]
(B) the [The] landlord has expressly or impliedly
agreed in the lease to furnish potable water to the tenant's
dwelling and the water service to the dwelling has totally ceased;
[.]
(C) the [The] landlord has expressly or impliedly
agreed in the lease to furnish heating or cooling equipment, [;] the
equipment is producing inadequate heat or cooled air, [;] and the
landlord has been notified in writing by the appropriate local
housing, building, or health official or other official having
jurisdiction that the lack of heat or cooling materially affects
the health or safety of an ordinary tenant; or [.]
(D) the [The] landlord has been notified in
writing by the appropriate local housing, building, or health
official or other official having jurisdiction that the condition
materially affects the health or safety of an ordinary tenant.
(e) If the requirements of Subsection (d) [of this section]
are met, a tenant may withhold rent payments or:
(1) have the condition repaired or remedied
immediately following the tenant's notice of intent to repair if
the condition involves sewage or flooding as described by [referred
to in Paragraph (A) of Subdivision (3) of] Subsection (d)(4)(A)
[(d) of this section];
(2) have the condition repaired or remedied if the
condition involves a cessation of potable water as described by
[referred to in Paragraph (A) of Subdivision (3) of] Subsection
(d)(4)(B) [(d) of this section] and if the landlord has failed to
repair or remedy the condition within three days following the
tenant's delivery of notice of intent to repair;
(3) have the condition repaired or remedied if the
condition involves inadequate heat or cooled air as described by
[referred to in Paragraph (C) of Subdivision (3) of] Subsection
(d)(4)(C) [(d) of this section] and if the landlord has failed to
repair the condition within three days after delivery of the
tenant's notice of intent to repair; or
(4) have the condition repaired or remedied if:
(A) the condition is not covered by Subsection
(d)(4)(A) [Paragraph (A)], (B), or (C);
(B) the condition [of Subdivision (3) of
Subsection (d) of this section and] involves a condition affecting
the physical health or safety of the ordinary tenant as described by
[referred to in Paragraph (D) of Subdivision (3) of] Subsection
(d)(4)(D); [(d) of this section] and
(C) [if] the landlord has failed to repair or
remedy the condition within seven days after delivery of the
tenant's notice of intent to repair.
(f) Repairs made pursuant to the tenant's notice must be
made by a company, contractor, or repairman listed in the yellow or
business pages of the telephone directory, on an Internet website
that aggregates and provides information about other businesses
that perform repair work, or in the classified advertising section
of a newspaper of the local city, county, or adjacent county at the
time of the tenant's notice of intent to repair. Unless the
landlord and tenant agree otherwise under Subsection (g) [of this
section], repairs may not be made by the tenant, the tenant's
immediate family, the tenant's employer or employees, or a company
in which the tenant has an ownership interest. Repairs may not be
made to the foundation or load-bearing structural elements of the
building if it contains two or more dwelling units.
(l) If the tenant chooses to withhold rent payments under
this section, the tenant may withhold rent until the repair is
completed. The tenant shall pay all rent owed not later than the
second business day after the date the repair is completed. The
tenant may not withhold rent payments that came due before the
tenant notified the landlord of the condition in need of repair or
remedy.
(m) A landlord may not charge a late fee for rent properly
withheld under this section.
SECTION 17. Section 92.331(b), Property Code, is amended to
read as follows:
(b) A landlord may not, because [within six months after the
date] of the tenant's action under Subsection (a), retaliate
against the tenant by:
(1) filing an eviction proceeding, except for the
grounds stated by Section 92.332;
(2) depriving the tenant of the use of the premises,
except for reasons authorized by law;
(3) decreasing services to the tenant;
(4) increasing the tenant's rent or terminating the
tenant's lease; or
(5) engaging, in bad faith, in a course of conduct that
materially interferes with the tenant's rights under the tenant's
lease.
SECTION 18. Section 92.351, Property Code, is amended by
adding Subdivisions (3-a) and (3-b) to read as follows:
(3-a) "Conditional offer" means an offer to rent or
lease a rental unit to an applicant that is contingent on the
landlord's subsequent inquiry into the applicant's criminal
history.
(3-b) "Conviction" means a verdict or plea of guilty
or nolo contendere. The term does not include deferred
adjudication or community supervision.
SECTION 19. Section 92.3515, Property Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) At the time an applicant is provided with a rental
application and before accepting an application fee, the landlord
shall make available to the applicant printed notice of the
landlord's tenant selection criteria and the grounds for which the
rental application may be denied, including the applicant's:
(1) criminal history;
(2) previous rental history;
(3) current income;
(4) credit history; or
(5) failure to provide accurate or complete
information on the application form.
(a-1) The printed notice must state in writing that the
applicant may provide evidence showing:
(1) the inaccuracies in the applicant's criminal
history;
(2) the applicant's rehabilitation or rehabilitative
effort while incarcerated or after release; or
(3) other mitigating factors.
SECTION 20. Section 92.354, Property Code, is amended to
read as follows:
Sec. 92.354. LIABILITY OF LANDLORD. (a) A landlord who in
bad faith fails to refund an application fee or deposit in violation
of this subchapter is liable for an amount equal to the sum of $100,
three times the amount wrongfully retained, and the applicant's
reasonable attorney's fees.
(b) A landlord who violates Section 92.356 is liable for an
amount equal to the sum of $500 and the applicant's reasonable
attorney's fees.
SECTION 21. Subchapter I, Chapter 92, Property Code, is
amended by adding Section 92.356 to read as follows:
Sec. 92.356. CRIMINAL RECORD SCREENING. (a) A landlord
screening an applicant's criminal history may not inquire about or
consider a previous arrest of the applicant if the arrest did not
result in a conviction.
(b) Before making a conditional offer, a landlord may not
inquire about or require an applicant to disclose or reveal a
pending criminal charge.
(c) Notwithstanding Subsection (b), a landlord may require
an applicant to authorize the landlord to perform an inquiry or any
other check related to the landlord's tenant selection criteria in
deciding whether to rent or lease to an applicant.
(d) After making a conditional offer, a landlord screening
an applicant's criminal history may not consider a criminal
conviction that occurred more than three years before the date of
the conditional offer.
(e) A landlord may withdraw a conditional offer based on an
applicant's criminal conviction that has occurred less than three
years before the date of the conditional offer only if the landlord
determines that the withdrawal achieves a substantial, legitimate,
nondiscriminatory interest. The landlord's determination must be
reasonable after consideration of:
(1) the nature and severity of the criminal offense;
(2) the age of the applicant at the time of the
occurrence of the criminal offense;
(3) the time that has elapsed since the occurrence of
the criminal offense;
(4) any information produced by the applicant, or
produced on the applicant's behalf, in regard to the applicant's
rehabilitation and good conduct since the occurrence of the
criminal offense;
(5) the degree to which the criminal offense, if it
reoccurred, would negatively impact the safety of the landlord's
other tenants or property; and
(6) whether the criminal offense occurred on or was
connected to property that was rented or leased by the applicant.
(f) The landlord may not have a policy to ban renting or
leasing to tenants with a criminal conviction history. A
determination to withdraw a conditional offer must be based on an
individualized assessment considering the factors described by
Subsection (e).
(g) If a landlord withdraws a conditional offer, the
landlord shall provide the applicant with written notification that
includes, with specificity, the reasons for the withdrawal of the
conditional offer. Not later than the 20th day after the date
notice is provided, the applicant may request that the landlord
provide the applicant a copy of all information on which the
landlord relied in considering the applicant, including criminal
records. A landlord shall provide the information, free of charge,
not later than the 10th day after the date the request is received.
(h) This section may not be construed to allow a landlord to
inquire about or require an applicant to disclose:
(1) a pending criminal accusation against any
prospective tenant; or
(2) that a child, as defined by Section 51.02, Family
Code, who will reside in the rental unit was found to have engaged
in delinquent conduct or conduct indicating a need for supervision.
(i) This section does not apply:
(1) to a landlord who owns and occupies a multiunit
complex that has three or fewer dwelling units; or
(2) if a federal law or regulation or other law:
(A) requires the consideration of an applicant's
criminal history for the purposes of obtaining housing; or
(B) allows for denial of an applicant due to
certain criminal convictions.
SECTION 22. Section 94.251, Property Code, is amended to
read as follows:
Sec. 94.251. RETALIATION BY LANDLORD. (a) A landlord may
not retaliate against a tenant by taking an action described by
Subsection (b) because the tenant:
(1) in good faith exercises or attempts to exercise
against a landlord a right or remedy granted to the tenant by the
lease agreement, a municipal ordinance, or a federal or state
statute;
(2) gives the landlord a notice to repair or exercise a
remedy under this chapter; [or]
(3) complains to a governmental entity responsible for
enforcing building or housing codes, a public utility, or a civic or
nonprofit agency, and the tenant:
(A) claims a building or housing code violation
or utility problem; and
(B) believes in good faith that the complaint is
valid and that the violation or problem occurred; or
(4) establishes, attempts to establish, or
participates in a tenant organization.
(b) A landlord may not, because [within six months after the
date] of the tenant's action under Subsection (a), retaliate
against the tenant by:
(1) filing an eviction proceeding, except for the
grounds stated by Subchapter E;
(2) depriving the tenant of the use of the premises,
except for reasons authorized by law;
(3) decreasing services to the tenant;
(4) increasing the tenant's rent;
(5) terminating the tenant's lease agreement; or
(6) engaging, in bad faith, in a course of conduct that
materially interferes with the tenant's rights under the tenant's
lease agreement.
SECTION 23. Sections 92.0081(c), (d), (e), (e-1), (f), (g),
(i), and (k), Property Code, are repealed.
SECTION 24. The changes in law made by this Act apply only
to a lease or rental agreement entered into or renewed on or after
the effective date of this Act. A lease or rental agreement entered
into or renewed before the effective date of this Act is governed by
the law in effect immediately before the effective date of this Act,
and the former law is continued in effect for that purpose.
SECTION 25. Not later than January 1, 2022, the Texas
Supreme Court shall adopt the rules necessary to implement Sections
24.012 and 24.013, Property Code, as added by this Act.
SECTION 26. (a) Except as provided by Subsection (b) of
this section, this Act takes effect January 1, 2022.
(b) Section 25 of this Act takes effect September 1, 2021.