BILL ANALYSIS
S.B. 1334
By: Barrientos (Brady/Gray/Ehrhardt/Naishtat/Turner)
5-16-95
Committee Report (Amended)
BACKGROUND
Almost 50 percent of Texans are tenants, and increasing numbers of
them are finding it difficult to find affordable housing. In
addition, private landlords are able to engage in practices that
may cause tenants to lose their existing house or prevent them from
reporting substandard housing conditions.
PURPOSE
As proposed, S.B. 1334 sets forth regulations regarding the
relationship between landlords and tenants, including circumstances
under which a tenant may or may not have the tenant's utilities
interrupted or be excluded from the tenant's residence, and methods
for retaliation and remedies for both the tenant and the landlord.
RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is granted
to the Public Utility Commission of Texas under SECTION 1 (Section
92.008(c)(3), Property Code) and to the Texas Real Estate
Commission under SECTION 4 (Section 24(c), Article 6573a, V.T.C.S.)
of this bill. SECTION 6 states the Real Estate Commission shall
adopt rules as required by Section 24(c) not later than December 1,
1995.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Subchapter A, Chapter 92, Property Code, by
amending Section 92.008 and adding Section 92.0081, as follows:
Sec. 92.008. New heading: INTERRUPTION OF UTILITIES. (a)
Makes no changes.
(b) Prohibits a landlord from interrupting water, wastewater,
gas, or electric service furnished to a tenant as an incident of
the tenancy or by other agreement unless the interruption results
from bona fide repairs, construction, or an emergency.
(c) Authorizes a landlord to interrupt electrical service
furnished to a tenant if the service is individually metered for
the unit, the electrical service connection with the utility
company (connection) is in the name of the landlord or the
landlord's agent (agent), and the landlord complies with the rules
adopted by the Public Utility Commission of Texas (commission) for
discontinuance of submetered electrical service.
(d) Authorizes a landlord to interrupt electrical service
furnished to a tenant if the service is not individually metered
for the dwelling unit; the connection is in the name of the
landlord or an agent; the tenant is at least seven days late in
paying rent; the landlord has sent a notice with certain
information within a specified time period; and the interruption
does not begin before or after the landlord's normal business
hours; and on a day, or on a day immediately preceding a day, when
the landlord or other designee is not available or the on-site
management office is not open to accept rent and restore electrical
service.
(e) Requires a landlord who interrupts electrical service
under Subsection (c) or (d) to restore the service within a certain
time after the payment of the delinquent electric bill or rent owed
to the landlord.
(f) Sets forth authorized actions for a tenant if a landlord
or an agent violates this section.
(g) Provides that a provision of a lease that purports to
waive a right or to exempt a party from a liability under this
section is void.
Sec. 92.0081. REMOVAL OF PROPERTY AND EXCLUSION OF
RESIDENTIAL TENANT. (a)-(b) Redesignate existing Sections
92.008(b) and (c).
(c) Redesignates existing Section 92.008(d). Requires the
landlord to state in a notice on the tenant's front door, if a
landlord changes the door lock of a tenant who is delinquent in
paying rent, an on-site location where the tenant may go 24 hours
a day to obtain the new key or a phone number that is answered 24
hours a day that the tenant may call to have a key delivered within
two hours after calling the number, rather than the name of the
location of the individual from whom the new key may be obtained at
any hour and the amount of charges for which a tenant is
delinquent, among other requirements.
(d) Prohibits a landlord from intentionally preventing a
tenant from entering the leased premises unless certain
circumstances exist.
(e) Prohibits a landlord form changing the locks on the door
of a tenant's dwelling on a day, or a day immediately before a day,
on which the landlord or a designee is not available, or on which
any on-site management office is not open, for the tenant to tender
the delinquent rent.
(f) Requires a landlord who intentionally prevents a tenant
from entering the tenant's dwelling under Subsection (b)(3) to
provide the tenant with a key to the changed lock without regard to
whether the tenant pays the delinquent rent.
(g) Requires the landlord to leave a notice stating certain
information if the landlord arrives at the dwelling in a timely
manner in response to a tenant's call and the tenant is not present
to receive the key to the changed lock.
(h) Redesignates existing Section 92.008(e). Authorizes the
tenant to recover from the landlord, if the landlord, rather than
a landlord or an agent, violates this section, a civil penalty of
one month's rent plus $500, actual damages, court costs, and
attorney's fees in an action to recover property damages, actual
expenses, or civil penalties, less any delinquent rent or other
sums for which the tenant is liable to the landlord.
(i) Authorizes the tenant to recover, if a landlord violates
Subsection (f), an additional civil penalty of one month's rent, in
addition to remedies under subsection (h).
(j) Redesignates existing Section 92.008(f).
SECTION 2. Amends Sections 92.201-92.205 and 92.207, Property
Code, as follows:
Sec. 92.201. DISCLOSURE OF OWNERSHIP AND MANAGEMENT. (a)
Requires a landlord to disclose certain information to any
governmental official or employee acting in an official capacity,
in addition to a tenant. Makes conforming changes.
(b)-(c) Sets forth requirements for disclosure to a tenant.
(d) Requires disclosure of information to a governmental
official or employee to be made by giving the information in
writing to the person by the seventh day after the landlord
receives the request.
(e) Redesignates existing Subsection (d).
(f) Redesignates existing Subsection (e).
Sec. 92.202. LANDLORD'S FAILURE TO DISCLOSE INFORMATION.
Makes conforming changes.
Sec. 92.203. LANDLORD'S FAILURE TO CORRECT INFORMATION.
Makes a nonsubstantive change.
Sec. 92.204. BAD FAITH VIOLATION. Makes conforming changes.
Sec. 92.205. New heading: REMEDIES. (a) Created from
existing text.
(b) Sets forth remedies for which a governmental body whose
official or employee has requested information from a landlord who
is liable is authorized to obtain or exercise.
Sec. 92.207. AGENTS FOR DELIVERY OF NOTICE. (a) Created
from existing text. Provides that a managing or leasing agent is
the agent of the landlord for purposes of notice and communications
from a governmental body relating to a violation of health,
sanitation, safety, or nuisance laws on the landlord's property
where the dwelling is located, among other purposes.
(b) Provides that if the landlord's name and state business
address in this state have not been furnished in writing to the
tenant or government official or employee, the person who collects
the rent from a tenant is the landlord's authorized agent for
purposes of Subsection (a).
SECTION 3. Amends Chapter 92, Property Code, by adding
Subchapter H, transferring Sections 92.057 and 92.059 to new
Subchapter H, redesignating Section 92.057 as Sections 92.331-92.334 and redesignating Section 92.059 as Section 92.335, and
amending Sections 92.057 and 92.059, as transferred and
redesignated, as follows:
SUBCHAPTER H. RETALIATION
Sec. 92.331. RETALIATION BY LANDLORD. Redesignates existing
Section 92.057. (a) Prohibits a landlord from retaliating against
a tenant by taking an action described by Subsection (b) because
the tenant attempts to exercise against a landlord a right or
remedy granted to the tenant, gives the landlord a notice to repair
or exercise a remedy, or complains to a governmental entity
responsible for enforcing certain codes and the tenant claims
certain violations.
(b) Prohibits a landlord, within six months after the
tenant's action, from retaliating against the tenant by taking
certain actions. Deletes existing section.
Sec. 92.332. NONRETALIATION. (a) Redesignates existing
Section 92.331(b). Makes conforming changes.
(b) Redesignates existing Section 92.331(c). Sets forth
grounds for lease termination which do not constitute retaliation
by the landlord, including if the tenant has materially breached
the lease, other than by holding over, by an action such as
violating written lease provisions prohibiting serious misconduct
or criminal acts. Makes conforming changes.
Sec. 92.333. TENANT REMEDIES. Redesignates existing Section
92.331(d). Sets forth penalties and relief which the tenant is
authorized to recover from the landlord. Requires the civil
penalty granted to reflect the fair market rent of the dwelling
plus $500 if the tenant's rent payment to the landlord is
subsidized by a governmental entity.
Sec. 92.334. INVALID COMPLAINTS. (a) Provides that if a
tenant files or prosecutes a suit for retaliatory action and the
official entity visits the premises and determines in writing that
a violation of a code does not exist or that a utility problem does
not exist, there is a rebuttable presumption that the tenant acted
in bad faith.
(b) Authorizes the landlord to recover possession of the
dwelling unit and to recover from the tenant a civil penalty and
certain fees. Requires the civil penalty to reflect the fair
market rent of the dwelling plus $500 if the tenant's rent payment
is subsidized by a governmental entity.
Sec. 92.335. New heading: EVICTION SUITS. Redesignates
existing Section 92.059. Makes conforming changes.
SECTION 4. Amends Article 6573a, V.T.C.S. (Real Estate
License Act), by adding Section 24, as follows:
Sec. 24. RESIDENTIAL RENTAL LOCATORS. (a) Defines
"residential rental locator."
(b) Prohibits a person from engaging in business as a
residential rental locator (locator) unless the person holds a
license to operate as a real estate broker or salesman.
(c) Requires the Texas Real Estate Commission (real estate
commission), by rule, to adopt regulations and establish standards
relating to permissible forms of advertising by a person licensed
under this section.
(d) Requires each locator to post a statement that the
locator is licensed by the real estate commission and certain
information about the commission.
(e) Provides that a violation of this section by a locator
constitutes grounds for the suspension or revocation of the
person's license and for the assessment of an administrative
penalty under Section 19A.
(f) Provides that a person commits a Class B misdemeanor
offense if the person engages in business as a locator without a
license issued under this Act.
SECTION 5. Makes application of this Act prospective.
SECTION 6. Requires the Texas Real Estate Commission to adopt
rules as required by Section 24(c) Article 6537a, Vernon's Texas
Civil Statutes, by December 1, 1995.
SECTION 7. Establishes the effective date as January 1, 1996.
SECTION 8. Emergency clause.
EXPLANATION OF AMENDMENTS
Amendment #1 adds a new SECTION 2, Section 92.152, Property Code,
Subsection (a), to state that a room in a hotel, motel, or inn,
residential housing owned or operated by a public or private
college or university, residential housing operated by preparatory
schools, any accrediting agency, or a temporary residential tenancy
does not apply to this subchapter. Section 92.152(b), adds
technical language to conform with the language added under
subsection (a) of this section.
Amendment #2 amends SECTION 4, Section 24, Subsection (a),
redefining "residential rental locator" as a person who offers, for
consideration, to locate a unit in an apartment complex, for lease
to a prospective tenant.
Amendment #3 strikes the original SECTIONS 7 and 8 and replaces
them with new SECTIONS 7-12, clarifying the landlord's duty to
install smoke detectors and to ensure that it is in working
condition prior to occupancy, in addition to making a tenant liable
for disabling a smoke detector. These SECTIONS also define remedies
available to both the landlord and the tenant.
SECTION 7. Amends (b) and (e), and adds (g), to Section
92.258, Property Code.
(b) Requires the landlord to make sure that the smoke
detector is in working order by testing with smoke, operating the
test button, or following other test procedures recommended by the
manufacturer, when a tenant moves into a dwelling.
(e) States that the landlord has fulfilled his duty to ensure
that the smoke detector is in working order if he tests it with
smoke, pushes the test button, or follows other test procedures
recommended by the manufacturer.
(g) Establishes that a smoke detector that is working at the
beginning of the tenant's occupancy is presumed to be working
unless the tenant requests its repair.
SECTION 8. Amends Section 92.259, Property Code.
Section 92.259. LANDLORD'S FAILURE TO INSTALL, INSPECT, OR
REPAIR. Provides that a landlord is liable for damages if a smoke
detector is not installed at the beginning of the tenant's
occupancy. Stipulates that a tenant who gives notice to seek a
civil penalty or unilaterally terminate a lease because the owner
has failed to install, inspect or repair the smoke detector, may be
required to submit written notice to the owner if the lease is in
writing.
SECTION 9. Amends Section 92.260, Property Code.
Section 92.260. TENANT REMEDIES. Relates to remedies a
resident may exercise to require that the resident must be in
possession of the dwelling unit to obtain a court order directing
the owner to comply; clarifying that the tenant may seek a civil
penalty or unilaterally terminate a lease if the landlord fails to
respond to a written notice to install, inspect or repair a smoke
detector and allows the tenant to seek attorney s fees in cases
where the tenant obtains an order for compliance or a civil penalty
against an owner.
SECTION 10. Adds Section 92.2611 to Subchapter F, Chapter 92,
Property Code.
Section 92.2611. TENANT'S DISABLING OF A SMOKE DETECTOR. (a)
Makes the tenant liable if the tenant removes a battery from a
smoke detector without immediately replacing it with a working
battery or knowingly disconnects or intentionally damages a smoke
detector.
(b) Allows a landlord to obtain a judgment for damages against
a tenant who violates subsection (a), except as provided by
subsection (c).
(c) States that the tenant is not liable if the landlord
failed to repair the smoke detector within a reasonable time of the
tenant's notice for repairs.
(d) States what the landlord of the tenant must include in
the notice of a smoke detector.
(e) If the tenant is liable under Subsection (a) and has not
complied with the landlord s notice in Subsection (d), the landlord
may obtain the following remedies:
(1) a court order directing the tenant to comply with the
landlord's request;
(2) a judgment against the tenant for one month's rent plus
$100;
(3) a judgment against the tenant for court costs; and
(4) a judgment against the tenant for reasonable attorney's
fees.
(f) Provides that a tenant's guest or invitee may recover a
judgement from the landlord, if the guest or invitee of the tenant
suffered damages from landlord's failure to install, inspect, or
repair a required smoke detector. If the guest or invitee suffered
damages because the tenant knowingly or intentionally damaged the
smoke detector, causing it to malfunction, may also recover a
judgement against the tenant.
SECTION 11. Establishes that SECTIONS 7 through 10 of this
Act relating to smoke detectors take effect September 1, 1995 and
apply only to a cause of action that accrues on or after that date.
All other SECTIONS take effect January 1, 1996.
SECTION 12. Emergency clause.
SUMMARY OF COMMITTEE ACTION
The Business and Industry Committee considered S.B. 1334 in a
public hearing on May 16, 1995. 3 (three) amendments were offered
to S.B. 1334. The 3 (three) amendments were adopted without
objection. The following witnesses testified in favor of S.B.
1334: David Mintz, representing Texas Apartment Association; and
Bettie Naylor, representing Advantage Properties.
S.B. 1334, as amended, was reported favorably with the
recommendation that it do pass and be printed by a record vote of
6 (six) ayes, 0 (zero) nays, 2 (two) present-not-voting, 1 (one)
absent.