By Dutton H.B. No. 1474 74R4611 PAM-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to providing certain tenants the opportunity to cure a 1-3 default under a lease. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 24, Property Code, is amended by adding 1-6 Sections 24.0051 and 24.0052 to read as follows: 1-7 Sec. 24.0051. RESIDENTIAL TENANT'S RIGHT TO CURE DEFAULT 1-8 BEFORE EVICTION SUIT FILED. (a) Except as provided by Subsection 1-9 (e), a residential tenant who defaults under a written or oral 1-10 lease may avoid termination of the lease by complying with the 1-11 lease terms not later than the third day after the date the notice 1-12 of default required by this section is delivered. 1-13 (b) A landlord who intends to terminate the lease of a 1-14 tenant in default must notify the tenant in writing. Delivery of 1-15 the notice is sufficient if it is: 1-16 (1) delivered by regular mail or by registered or 1-17 certified mail, return receipt requested; 1-18 (2) delivered in person to the tenant or to any person 1-19 residing at the premises who is at least 16 years of age; or 1-20 (3) affixed to the inside of the main entry door to 1-21 the premises. 1-22 (c) The notice must: 1-23 (1) state that the tenant is in default under the 1-24 lease; 2-1 (2) inform the tenant of the tenant's right to cure 2-2 the default; and 2-3 (3) specify the nature of the default, the action 2-4 required to cure the default, and the period available to cure the 2-5 default. 2-6 (d) If the tenant cures the default as required by the 2-7 notice, the landlord may not: 2-8 (1) terminate the lease; 2-9 (2) terminate the tenant's right to possession of the 2-10 premises; 2-11 (3) give the tenant notice to vacate; or 2-12 (4) file a forcible detainer suit based on the default 2-13 cured by the tenant. 2-14 (e) Unless the lease provides otherwise, a tenant does not 2-15 have a right to cure a default that resulted from violent criminal 2-16 activity or an illegal drug related activity. 2-17 Sec. 24.0052. RESIDENTIAL TENANT'S RIGHT TO CURE DEFAULT 2-18 AFTER EVICTION SUIT FILED. (a) If a landlord prevails in a 2-19 forcible detainer suit against a residential tenant and the court 2-20 enters a judgment awarding the landlord possession of the premises 2-21 based solely on nonpayment or late payment of rent, the court, 2-22 before issuing a writ of possession, shall: 2-23 (1) determine the payment amount required to cure the 2-24 default; 2-25 (2) enter the payment amount on the court docket; and 2-26 (3) notify the tenant at the hearing or, in the event 2-27 of a default judgment, by postcard notice, of: 3-1 (A) the tenant's right to cure the default; 3-2 (B) the payment amount required to cure the 3-3 default; and 3-4 (C) the period available to cure the default. 3-5 (b) The tenant may cure the default on or before the fifth 3-6 day after the date the judgment of the court is signed by 3-7 depositing the payment amount in the registry of the court. If the 3-8 court is closed on the last day available for the tenant to cure 3-9 the default, the period to cure is extended to the next day the 3-10 court is open for business. 3-11 (c) If a tenant complies with Subsection (b), the court: 3-12 (1) shall release the judgment, reinstate the tenant 3-13 under the lease, and transfer the deposited funds to the landlord; 3-14 and 3-15 (2) may not issue a writ of possession in favor of the 3-16 landlord. 3-17 (d) The payment amount necessary to cure the default is the 3-18 sum of: 3-19 (1) the delinquent rent, excluding any amount 3-20 accelerated because of the default; 3-21 (2) reasonable late fees owed to the landlord; and 3-22 (3) any court costs assessed against the tenant by the 3-23 court. 3-24 SECTION 2. This Act takes effect September 1, 1995. 3-25 SECTION 3. The change in law made by this Act applies only 3-26 to a tenant who defaults on or after the effective date of this 3-27 Act. A tenant who defaults before the effective date of this Act 4-1 is covered by the law in effect when the default occurred, and the 4-2 former law is continued in effect for that purpose. 4-3 SECTION 4. The importance of this legislation and the 4-4 crowded condition of the calendars in both houses create an 4-5 emergency and an imperative public necessity that the 4-6 constitutional rule requiring bills to be read on three several 4-7 days in each house be suspended, and this rule is hereby suspended.