BILL ANALYSIS
C.S.H.B. 561
By: Turner, Sylvester
4-11-95
Committee Report (Substituted)
BACKGROUND
In recent years, Texas has become home to a great number of
apartment rental unit complexes. Some of these rental units are
owned and/or managed by business entities off-site, out of state or
even in another country. City and county authorities have found it
burdensome to reach and make direct contact with the responsible
ownership and management of rental units. Current law requires that
an owner or property manager disclose either an actual name or
assumed name if an assumed name certificate has been recorded with
the county clerk. However, such listings are sometimes little help
in locating an actual person who has authority to deal with a
problem.
PURPOSE
H.B. 561 requires apartment managers and owners in Texas to
file a current address or business address in order that tenants or
any government official or employee acting in an official capacity
may contact a person with authority to make decisions. Also,
provides for penalties on the part of the landlord if information
is incorrect or fails to be provided.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.
SECTION BY SECTION ANALYSIS
SECTION 1: Amends Section 92.201 through 92.208, Property
Code as follows:
Section 92.201. DISCLOSURE OF OWNERSHIP AND MANAGEMENT. (a)
Provides that a landlord must disclose to a tenant or any
government official or employee acting in an official capacity, the
name and address of the owner or management company of the rental
dwelling.
(b) Information requested by a tenant must be in writing and
be posted in a conspicuous place in the dwelling within seven day
of receiving the tenants request. Information must also be included
in a copy of the tenant's lease or in written rules given to the
tenant prior to the tenant's request.
(c) Information may be disclosed to the tenant before the
tenant requests the information.
(d) Information must be disclosed to a government official or
an employee acting in an official capacity, in writing within seven
days of receiving the request.
(e) Clarifies that revised information must be given in
writing, must be posted in a conspicuous place and in a copy of the
tenant's lease or written rules.
(f) Provides that the landlord must disclose the name of owner
or management/landlord.
Reletter subsections.
Section 92.202. LANDLORD'S FAILURE TO DISCLOSE INFORMATION.
Provides that a landlord is liable if the requested information is
not provided and the landlord does not give the information within
the seventh day of receiving the request. The tenant, governmental
body official or employee can exercise remedies under this
subchapter, if landlord does not meet request within the seven days
time. If the tenant's lease is in writing, the lease may require a
written request on the tenant's part, however, a request must be in
writing if it is sought by a governmental official or employee.
Section 92.203. LANDLORD'S FAILURE TO CORRECT INFORMATION.
A landlord who has provided the required information under Section
92.201(b)(2), and (b)(3) is liable to a tenant if the information
is incorrect because of name or address changes and the landlord
fails to correct the information within the seven days of the
tenant's written notice. Remedies may be exercised if information
is not corrected within seven days.
Section 92.204. BAD FAITH VIOLATION. Stipulates a landlord
acts in bad faith and is liable if the landlord gives an incorrect
name or address by wilfully disclosing incorrect information and
failing to correct the information that the landlord know is
incorrect.
Section 92.205. REMEDIES. (b) A government official or
employee may obtain or exercise the following remedies when a
landlord is found liable for failing to provide requested
information:
(1) a court order directing disclosure;
(2) a judgement against the landlord for an amount equal to
the requester's actual costs in discovering the information;
(3) a judgement against the landlord for $500;
(4) a judgement against the landlord for court costs and
attorney's fees.
Section 92.206. LANDLORD'S DEFENSE. Affords a landlords
defense to liability if the tenant owes rent on the date the tenant
gives a notice. Rent delinquency is not a defense for a violation
of Section 92.204.
SECTION 92.207. AGENTS FOR DELIVERY OF NOTICE. (a) States
the managing or leasing agent is the agent of the landlord for the
purposes of:
(1) notice and other required communication;
(2) notice and other communications from a government body in
regards to violation of health, sanitation, safety, or
nuisance laws on the property where the dwelling is located.
These notices include:
(A) demands for abatement of nuisances,
(B) repair of a substandard dwelling,
(C) remedy of dangerous conditions,
(D) reimbursement of costs incurred by the government
body in curing the violation,
(E) fines, and
(F) service of process.
(b) States the person who collects the rent from a tenant is
the landlord's authorized agent for all purposes contained in
subsection (a), if the landlord's name and business street address
in Texas have not been furnished in writing to the tenant or
government official or employee.
Section 92.208. ADDITIONAL ENFORCEMENT BY LOCAL ORDINANCE.
The duties of a landlord and the remedies of a tenant under this
subchapter are in lieu of the common law, other statutory law, and
local ordinances relating to the disclosure of ownership and
management of a dwelling by a landlord to a tenant. This
subchapter does not prohibit the adoption of a local ordinance that
conforms to this subchapter but which contains additional
enforcement provisions.
SECTION 2. This Act takes effect on September 1, 1995.
SECTION 3. Emergency Clause.
COMPARISON OF ORIGINAL TO SUBSTITUTE
The major points of difference between H.B. 561, as introduced
and the committee substitute are as follows:
SECTION 1. Section 92.201. (a) The substitute provides that
the landlord must disclose ownership and management information to
the tenant and adds "or to any government official or employee
acting in an official capacity". Cleans up language by deleting
reference to business or residential street address and maintains
that a street or post office address must be disclosed. Deletes
language requiring the landlord to disclose the name of each owner
of the management company. Other technical corrections are made to
clarify the information being disclosed and to whom it is being
disseminated.
(b) Adds disclosing information to a tenant. Leaves the
language "on or before the seventh day after the date the landlord
receives the tenant's request for the information". Leaves in
information the landlord must provide "before the tenants requests
the information".
(c) Adds disclosure of information may be made to a tenant
under subsection (b)(1) or subsection (b)(2) before the information
is requested by the tenant.
(d) Adds disclosure of information may be given to a tenant,
government official, or employee before the seventh day after the
landlord receives the request.
Leaves in original language of subsections (d) and (e), just
relettering them to (e) and (f). Deletes the subsection (g).
Section 92.202. Clarifies language under this section to
include a governmental body, official, or an employee. Reinstates
original language to specify the landlord's liability because of
the failure to disclose information and to provide remedy on the
part of the tenant in landlord's failure to comply with request.
Requires a request for information by a government official or
employee to be in writing.
Section 92.204. Technical corrections. Leaves in original
language.
Section 92.205. (a) Changes title from "Tenant Remedies" to
"Remedies".
(b) Adds language as to the remedies an official or employee
of a governmental body may obtain from a landlord to receive
requested information.
Section 92.206. Leaves in original language.
Section 92.207. Adds language of notice and other
communications from a government official.
Section 92.208. Under this subchapter, the duties of a
landlord and the remedies of a tenant supersede any other law
relating to the disclosure of ownership and management of a
dwelling by a landlord to a tenant. Allows for the adoption of
local ordinances, including those ordinances which may contain
additional enforcement provisions, provided they conform to this
subchapter.
SUMMARY OF COMMITTEE ACTION
H.B. 561 was considered by the Business and Industry Committee in
a public hearing on April 11, 1995. Testifying for H.B. 561 were:
Pamela Brown, representing Texas Legal Services Center; and Larry
Niemann, representing Texas Apartment Association. The committee
considered a complete committee substitute for the bill. Without
objection, the committee substitute was adopted. H.B. 561, as
substituted, was reported favorably with the recommendation that it
do pass and be printed, by a record vote of 8 (eight) ayes, 0
(zero) nays, 0 (zero) present-not-voting, 1 (one) absent.