BILL ANALYSIS
C.S.S.B. 1334
By: Barrientos
Jurisprudence
5-10-95
Committee Report (Substituted)
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, C.S.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 BY SECTION ANALYSIS
SECTION 1. Amends Chapter 92A, 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 the landlord's normal
business hours or 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 from 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, rather than an amount equal to the sum of
the actual damages, one month's rent, or $500, whichever is
greater.
(i) Authorizes the tenant to recover, if a landlord violates
Subsection (f), an additional civil penalty of one month's
rent.
(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 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
certain entities 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 real estate commission to adopt rules as
required by Section 24(c) Article 6573a, V.T.C.S., by December 1,
1995.
SECTION 7. Effective date: September 1, 1995.
SECTION 8. Emergency clause.