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.