BILL ANALYSIS
C.S.H.B. 3027
By: Ehrhardt
5-2-95
Committee Report (Substituted)
BACKGROUND
Texas law and lease agreements provide tenants with rights and
privileges; however, the law does not generally protect tenants
against retaliating landlords. For example, Texas law protects
tenants from retaliation for requesting repairs from landlords,
however, there is no protection given to tenants who complain to
code enforcement officers about conditions of their home. As a
result, many tenants are discouraged from reporting health and
safety hazards, or exercising other rights provided by Texas law or
the lease agreement, for fear of retaliation.
PURPOSE
This bill would provide protection for tenants who, in good faith,
exercise rights granted to the tenant by the lease, by federal or
state statute or by municipal ordinance. This extends to
complaints that are made to code enforcement agencies or civic or
nonprofit organizations. This bill would also strengthen existing
law which protects tenants from retaliatory evictions which arise
out of requests for repairs. It also protects landlords from
actions under the statute which are intended to harass the landlord
or are filed or prosecuted in bad faith.
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 Chapter 92, Property Code, and creates a new
Subchapter H, entitled
"RETALIATION."
Sec. 92.280 RETALIATION BY LANDLORD.
(a) Details the scope under which a landlord is prohibited
from retaliating when a tenant:
(1) exercises, in good faith, rights which arise out of
statute or a lease
(2) gives the landlord a notice to repair, or
(3) complains to certain third parties, and
(A) the claim is for code violations or utility
problems, and
(B) the tenant believes in good faith that the claim
is valid.
(b) Specifies the term under which a landlord is prohibited
from retaliation and defines retaliatory actions as those
taken when a landlord:
(1) files an eviction not permitted under this
subsection
(2) Deprives the tenant of the use of the premises
(3) Decreases services
(4) Increases the tenant's rent or terminates the
tenant's lease
(5) Engages, in bad faith, in conduct which interferes
with the tenant's rights under the lease
Sec. 92.281 NONRETALIATION.
(a) Creates a defense for the landlord against a tenant's
claim of retaliation when the landlord can prove that an
action was not taken for the purpose of retaliation, or:
(1) rent was increased under a certain escalation
clause, or
(2) rent increases or reduced services applied to an
entire rental project.
(b) Specifies that certain situations under which a lease
termination or eviction would not constitute retaliation,
if:
(1) the tenant is delinquent in paying rent, or
(2) the tenant or tenant's family or guests
intentionally damage the property or threatens the
personal safety of the landlord, the landlord's
employees or other tenants
(3) violates written lease provisions prohibiting
serious misconduct or criminal acts.
(4) the tenant holds over after giving notice of
termination or intent to vacate.
(5) the tenant holds over and the landlord gives notice
of termination before the tenant takes the above
protected action.
(6) notice to terminate is given in good faith by a
landlord in order to prevent;
(A) disruption of quiet enjoyment by other tenants
or neighbors.
(B) material jeopardy of the health or safety of
the tenants, landlord or neighbors, or
(C) damage the property of the foregoing.
Sec. 92.282. TENANT REMEDIES.
Provides remedies under suit for retaliation and permits recovery
of a civil penalty of one months rent plus $500, and further sets
recoverable rent on subsidized housing at the fair market rent for
that dwelling. The tenant may also recover actual damages, court
costs, reasonable attorney's fees and declaratory or injunctive
relief.
Sec. 92.283. SUITS ON INVALID COMPLAINTS.
(a) Establishes remedies for the landlord who, in defense
against a retaliation suit, is able to prove that is was
brought in bad faith. A rebuttable presumption of bad faith
may be documented by a government building or housing
inspector or utility company representative, who by on-site
inspection determines that the violation does not exist.
(b) Permits the landlord to recover possession of the
dwelling in question and a civil penalty of one month's rent
(or fair market rent on subsidized housing) plus $500, court
costs and reasonable attorney's fees.
Sec. 92.284. EVICTION SUITS.
Establishes retaliation by a landlord under this chapter as a
defense against an eviction suit.
SECTION 2. Provides an effective date for the Act of September 1,
1995.
SECTION 3. Emergency Clause
COMPARISON OF ORIGINAL TO SUBSTITUTE
SECTION 1. The substitute amends Chapter 92 (the original amends
Chapter 91) of the Property Code by creating a new Subchapter H,
entitled "RETALIATION."
Sec. 92.280 RETALIATION BY LANDLORD.
(a) Broadens the existing law prohibiting retaliation as
specified in the original bill, except that it does not
protect against retaliation for joining or organizing a tenant
organization, and that:
(1) the words "statute" and "ordinance" replace
references to "federal, state, or local law";
(3) expands protected complaints to include those made
to public utilities and civic or nonprofit agencies,
and;
(A) removes the requirement that the complaint
regard a violation that materially affects health
and safety, but requires that the complaint be for
a building or housing code violation.
(B) requires a good faith belief by the tenant that
the complaint is valid.
(b) Removes the standard for a rebuttable presumption of
retaliation, and decreases the term of prohibition against
retaliation from one year to six months. Changes the
prohibited actions of a landlord by:
(1) changing the grounds for allowable evictions as
detailed in Sec. 92.281 (b)
(5) adding a prohibition against engaging, in bad faith,
in material interference with the tenants' rights under
the lease (the original bill prohibited a pattern of
harassment which interfered with the peaceful enjoyment
of the premises).
Sec. 92.281 NONRETALIATION.
(a) The substitute extends a defense against a charge of
retaliation to a landlord if he can prove that the action in
question was not made for the purpose of retaliation and,
unless the action violates a prior court order, exemptions are
included for;
(1) increasing rent under an escalation clause in a
written lease for utilities, taxes, or insurance; or
(2) increasing rent or reducing services as part of a
pattern for an entire multi-dwelling project.
(b) Broadens the exclusions for evictions and lease
terminations from retaliatory definition, when;
(2) the tenant, a family member or a guest of the tenant
intentionally damage the property or threaten the
personal safety of the landlord, the landlord's
employees, or another tenant.
(3) violates written lease provisions prohibiting
serious misconduct or criminal acts.
(4) the tenant holds over after giving notice of
termination or intent to vacate.
(5) the tenant holds over and the landlord gives notice
of termination before the tenant takes the above
protected action.
(6) notice to terminate is given in good faith by a
landlord in order to prevent;
(A) disruption of quiet enjoyment by other tenants
or neighbors.
(B) material jeopardy of the health or safety of
the tenants, landlord or neighbors, or
(C) damage the property of the foregoing.
Sec. 92.282. TENANT REMEDIES.
(a) The substitute changes the permissible recovery under suit
for retaliation from three times monthly rent to one months
rent plus $500, and further sets recoverable rent on
subsidized housing at the fair market rent for that dwelling.
The substitute adds civil penalties as a remedy.
All other remedies are substantially similar to the original bill.
Sec. 92.283. SUITS ON INVALID COMPLAINTS.
(a) The substitute creates reciprocal remedies for the
landlord who, in defense against a retaliation suit, is able
to prove that is was brought in bad faith. A rebuttable
presumption of bad faith may be documented by a government
building or housing inspector or utility company
representative, who by on-site inspection determines that the
violation does not exist.
(b) The substitute includes a right to recover possession of
the dwelling in question and a civil penalty of one month's
rent (or fair market rent on subsidized housing) plus $500,
court costs and reasonable attorney's fees.
Sec. 92.284. EVICTION SUITS.
This is clean up language that maintains the original bill's
provision that retaliation is a defense against an eviction action.
SUMMARY OF COMMITTEE ACTION
The Business and Industry Committee considered H.B. 3027 in a
public hearing on May 2, 1995. The committee considered a complete
committee substitute. No public testimony was taken on H.B. 3027.
Without objection, the committee substitute was withdrawn. H.B.
3027 was left pending before the committee. The committee
reconsidered H.B. 3027 on May 2, 1995. The committee considered a
complete committee substitute. The committee substitute was
adopted without objection. H.B. 3027, as substituted, was reported
favorably with the recommendation that it do pass and be printed by
a record vote of 6 (six) ayes, 0 (zero) absent, 0 (zero) present-not-voting, 3 (three) absent.