Bill Text: TX SB1685 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to methods of payment of rent and security deposits to residential landlords and authorizing associated service charges.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-03-14 - Referred to Business & Commerce [SB1685 Detail]
Download: Texas-2019-SB1685-Introduced.html
86R13711 PMO-F | ||
By: West | S.B. No. 1685 |
|
||
|
||
relating to methods of payment of rent and security deposits to | ||
residential landlords and authorizing associated service charges. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 92.011, Property Code, is amended to | ||
read as follows: | ||
Sec. 92.011. [ |
||
SERVICE CHARGES. (a) In this section, "electronic funds transfer" | ||
means any transfer of money, other than a transaction originated by | ||
check, money order, or other traceable or negotiable instrument, | ||
that is initiated through an electronic terminal, telephonic | ||
instrument, computer, or magnetic tape and that orders, instructs, | ||
or authorizes a financial institution to debit or credit an | ||
account. The term includes a point-of-sale transfer, direct deposit | ||
or withdrawal of money, transfer through an automated | ||
clearinghouse, transfer initiated electronically that delivers a | ||
paper instrument, and transfer authorized in advance to recur at | ||
substantially regular intervals. | ||
(b) Except as provided by Subsection (d), a landlord shall | ||
permit a tenant to pay rent or a security deposit by at least one | ||
method of payment other than cash or an electronic funds transfer. | ||
(c) A landlord shall accept a tenant's timely cash rental | ||
payment unless a written lease between the landlord and tenant | ||
requires the tenant to make rental payments by a method other than | ||
cash, provided that the written lease complies with Subsection (b) | ||
[ |
||
(d) A landlord may require cash as the exclusive method of | ||
payment of rent or a security deposit for a tenant whose immediately | ||
preceding payment to the landlord was by a method of payment that | ||
was refused or dishonored for insufficient funds or canceled by the | ||
tenant. The landlord may not require cash as the exclusive form of | ||
payment for more than three months after the date the tenant | ||
tendered the refused, dishonored, or canceled payment to the | ||
landlord. | ||
(e) A tenant must pay to a landlord that requires cash | ||
payment under Subsection (d) the amounts due to the landlord in cash | ||
for the period determined by the landlord, subject to Subsection | ||
(d), only if the landlord: | ||
(1) provides written notice to the tenant that the | ||
tenant's previous payment was refused, dishonored, or canceled; and | ||
(2) attaches to the notice a copy or other evidence of | ||
the refused, dishonored, or canceled payment. | ||
(f) [ |
||
deposit payment shall: | ||
(1) provide the tenant with a written receipt; and | ||
(2) enter the payment date and amount in a record book | ||
maintained by the landlord. | ||
(g) A landlord may collect a service charge for processing a | ||
payment of rent or a security deposit by electronic funds transfer | ||
in an amount not to exceed the amount of the service charge | ||
authorized under Section 501.176, Transportation Code, for | ||
processing a payment for a certificate of title or registration for | ||
a motor vehicle by electronic funds transfer. A landlord may not | ||
collect a service charge for processing a payment of rent or a | ||
security deposit by any method of payment other than electronic | ||
funds transfer. | ||
(h) [ |
||
association acting on the tenant's behalf may file suit against a | ||
landlord to enjoin a violation of Subsection (c) [ |
||
party who prevails in a suit brought under this subsection may | ||
recover court costs and reasonable attorney's fees from the other | ||
party. In addition to court costs and reasonable attorney's fees, a | ||
tenant who prevails under this subsection may recover from the | ||
landlord the greater of one month's rent or $500 for each violation | ||
of this section. | ||
(i) A provision of a lease that purports to waive a right or | ||
exempt a party from a liability under this section is void. | ||
SECTION 2. Section 92.011, Property Code, as amended by | ||
this Act, applies only to a lease entered into or renewed on or | ||
after the effective date of this Act. A lease entered into or | ||
renewed before the effective date of this Act is governed by the law | ||
as it existed immediately before the effective date of this Act, and | ||
that law is continued in effect for that purpose. | ||
SECTION 3. This Act takes effect September 1, 2019. |