By Barrientos                                         S.B. No. 1334
       74R6514 PAM-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the relationship between landlords and tenants.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Chapter 24, Property Code, is amended by adding
    1-5  Sections 24.0051 and 24.0052 to read as follows:
    1-6        Sec. 24.0051.  RESIDENTIAL TENANT'S RIGHT TO CURE DEFAULT
    1-7  BEFORE EVICTION SUIT FILED.  (a)  Except as provided by Subsection
    1-8  (e), a residential tenant who defaults under a written or oral
    1-9  lease may avoid termination of the lease by complying with the
   1-10  lease terms not later than the third day after the date the notice
   1-11  of default required by this section is delivered.
   1-12        (b)  A landlord who intends to terminate the lease of a
   1-13  tenant in default must notify the tenant in writing.  Delivery of
   1-14  the notice is sufficient if it is:
   1-15              (1)  delivered by regular mail or by registered or
   1-16  certified mail, return receipt requested;
   1-17              (2)  delivered in person to the tenant or to any person
   1-18  residing at the premises who is at least 16 years of age; or
   1-19              (3)  affixed to the inside of the main entry door to
   1-20  the premises.
   1-21        (c)  The notice must:
   1-22              (1)  state that the tenant is in default under the
   1-23  lease;
   1-24              (2)  inform the tenant of the tenant's right to cure
    2-1  the default; and
    2-2              (3)  specify the nature of the default, the action
    2-3  required to cure the default, and the period available to cure the
    2-4  default.
    2-5        (d)  If the tenant cures the default as required by the
    2-6  notice, the landlord may not:
    2-7              (1)  terminate the lease;
    2-8              (2)  terminate the tenant's right to possession of the
    2-9  premises;
   2-10              (3)  give the tenant notice to vacate; or
   2-11              (4)  file a forcible detainer suit based on the default
   2-12  cured by the tenant.
   2-13        (e)  Unless the lease provides otherwise, a tenant does not
   2-14  have a right to cure a default that resulted from violent criminal
   2-15  activity or an illegal drug related activity.
   2-16        Sec. 24.0052.  RESIDENTIAL TENANT'S RIGHT TO CURE DEFAULT
   2-17  AFTER EVICTION SUIT FILED.  (a)  If a landlord prevails in a
   2-18  forcible detainer suit against a residential tenant and the court
   2-19  enters a judgment awarding the landlord possession of the premises
   2-20  based solely on nonpayment or late payment of rent, the court,
   2-21  before issuing a writ of possession, shall:
   2-22              (1)  determine the payment amount required to cure the
   2-23  default;
   2-24              (2)  enter the payment amount on the court docket; and
   2-25              (3)  notify the tenant at the hearing or, in the event
   2-26  of a default judgment, by postcard notice, of:
   2-27                    (A)  the tenant's right to cure the default;
    3-1                    (B)  the payment amount required to cure the
    3-2  default; and
    3-3                    (C)  the period available to cure the default.
    3-4        (b)  The tenant may cure the default on or before the fifth
    3-5  day after the date the judgment of the court is signed by
    3-6  depositing the payment amount in the registry of the court.  If the
    3-7  court is closed on the last day available for the tenant to cure
    3-8  the default, the period to cure is extended to the next day the
    3-9  court is open for business.
   3-10        (c)  If a tenant complies with Subsection (b), the court:
   3-11              (1)  shall release the judgment, reinstate the tenant
   3-12  under the lease, and transfer the deposited funds to the landlord;
   3-13  and
   3-14              (2)  may not issue a writ of possession in favor of the
   3-15  landlord.
   3-16        (d)  The payment amount necessary to cure the default is the
   3-17  sum of:
   3-18              (1)  the delinquent rent, excluding any amount
   3-19  accelerated because of the default;
   3-20              (2)  reasonable late fees owed to the landlord; and
   3-21              (3)  any court costs assessed against the tenant by the
   3-22  court.
   3-23        SECTION 2.  Chapter 91, Property Code, is amended by adding
   3-24  Section 91.006 to read as follows:
   3-25        Sec. 91.006.  RETALIATION BY LANDLORD PROHIBITED.  (a)  A
   3-26  landlord may not retaliate against a tenant after the tenant:
   3-27              (1)  exercises or attempts to exercise in good faith a
    4-1  right granted to the tenant by lease or by federal, state, or local
    4-2  law;
    4-3              (2)  complains about a building or housing code
    4-4  violation that materially affects health and safety to a
    4-5  governmental agency charged with the responsibility for enforcing
    4-6  building or housing codes; or
    4-7              (3)  organizes or becomes a member of a tenants union
    4-8  or similar organization.
    4-9        (b)  A rebuttable presumption of retaliation exists if the
   4-10  landlord, within one year after the date the tenant takes action
   4-11  described by Subsection (a):
   4-12              (1)  files an eviction action except for the grounds
   4-13  stated in Subsection (d);
   4-14              (2)  deprives the tenant of the use of the premises
   4-15  except for reasons authorized by law;
   4-16              (3)  decreases services to the tenant;
   4-17              (4)  increases the tenant's rent or terminates the
   4-18  tenant's lease; or
   4-19              (5)  engages in a pattern of harassment that interferes
   4-20  with the tenant's peaceful enjoyment of the premises.
   4-21        (c)  A landlord may rebut a presumption of retaliation if the
   4-22  landlord proves that the landlord did not take the action for the
   4-23  purpose of retaliation.
   4-24        (d)  The landlord may evict a tenant without violating this
   4-25  section if the tenant:
   4-26              (1)  is delinquent in paying rent when the landlord
   4-27  gives the tenant notice to vacate or files an eviction action; or
    5-1              (2)  has materially breached the lease other than by
    5-2  holding over.
    5-3        (e)  In addition to other remedies provided by law, a tenant
    5-4  who is subject to retaliation by a landlord:
    5-5              (1)  may file suit for declaratory or injunctive
    5-6  relief; and
    5-7              (2)  may file suit to recover from the landlord:
    5-8                    (A)  an amount equal to three times the average
    5-9  monthly rental payment in the area;
   5-10                    (B)  actual damages, including reasonable moving
   5-11  costs;
   5-12                    (C)  court costs; and
   5-13                    (D)  reasonable and necessary attorney's fees.
   5-14        (f)  The tenant may assert as an affirmative defense to an
   5-15  eviction action that the landlord engaged in retaliatory action.
   5-16        SECTION 3.  Sections 92.008(a), (c), (d), and (e), Property
   5-17  Code, are amended to read as follows:
   5-18        (a)  A landlord or a landlord's agent may not interrupt or
   5-19  cause the interruption of utility service paid for directly to the
   5-20  utility company by a tenant or furnished to the tenant as an
   5-21  incident of the tenancy unless:
   5-22              (1)  the interruption results from bona fide repairs,
   5-23  construction, or an emergency; or
   5-24              (2)  the utility service furnished to the tenant is
   5-25  individually metered by the landlord and the landlord complies with
   5-26  applicable law.
   5-27        (c)  A landlord may not intentionally prevent a tenant from
    6-1  entering the leased premises except by judicial process unless the
    6-2  exclusion results from:
    6-3              (1)  bona fide repairs, construction, or an emergency;
    6-4  or
    6-5              (2)  removing the contents of premises abandoned by a
    6-6  tenant<; or>
    6-7              <(3)  changing the door locks of a tenant who is
    6-8  delinquent in paying at least part of the rent>.
    6-9        (d)  <If a landlord or a landlord's agent changes the door
   6-10  lock of a tenant who is delinquent in paying rent, the landlord or
   6-11  the landlord's agent must:>
   6-12              <(1)  place a written notice on the tenant's front door
   6-13  stating the name and location of the individual from whom the new
   6-14  key may be obtained at any hour; and>
   6-15              <(2)  provide the new key to the tenant at any hour,
   6-16  regardless of whether or not the tenant pays any of the delinquent
   6-17  rent.>
   6-18        <(e)>  If a landlord or a landlord's agent violates this
   6-19  section, the tenant may:
   6-20              (1)  either recover possession of the premises or
   6-21  terminate the lease; and
   6-22              (2)  recover from the landlord an amount equal to the
   6-23  sum of the tenant's actual damages, an amount equal to three times
   6-24  the monthly <one month's> rent or $2,000 <$500>, whichever is
   6-25  greater, reasonable attorney's fees, and court costs, less any
   6-26  delinquent rents or other sums for which the tenant is liable to
   6-27  the landlord.
    7-1        (e)  In order to recover under Subsection (d)(2), a tenant
    7-2  may file:
    7-3              (1)  a suit against the landlord; or
    7-4              (2)  a counterclaim against the landlord in a suit,
    7-5  including a forcible detainer suit, filed by the landlord against
    7-6  the tenant.
    7-7        SECTION 4.  Subchapter A, Chapter 92, Property Code, is
    7-8  amended by adding Section 92.012 to read as follows:
    7-9        Sec. 92.012.  LATE FEES.  (a)  Except as provided by
   7-10  Subsection (b), a landlord may charge as a late fee not more than:
   7-11              (1)  50 cents a day for each day a payment is late plus
   7-12  three percent of the monthly rental payment under the lease during
   7-13  the period that begins the first day and ends the 30th day after
   7-14  the date the payment is due under the lease; and
   7-15              (2)  50 cents a day for each day a payment is late plus
   7-16  six percent of the monthly rental payment under the lease during
   7-17  the period that begins the 31st day and ends the 60th day after the
   7-18  date the payment is due under the lease.
   7-19        (b)  If a portion of the amount of rent owed under the lease
   7-20  is paid after the 60th day after the date the payment is due under
   7-21  the lease, the landlord may charge as a late fee not more than:
   7-22              (1)  50 cents a day for each day a payment is late plus
   7-23  six percent of the monthly rental payment under the lease during
   7-24  the period that begins the first day and ends the 60th day after
   7-25  the date the payment is due under the lease; and
   7-26              (2)  10 percent of the amount of rent owed under the
   7-27  lease that is not paid before the 60th day after the date the
    8-1  payment is due under the lease.
    8-2        (c)  A tenant may recover from a landlord who accepts or
    8-3  requests from a tenant or contracts with a tenant to receive a fee
    8-4  in violation of this section:
    8-5              (1)  all late fees received by the landlord in
    8-6  violation of this section;
    8-7              (2)  actual damages;
    8-8              (3)  an amount equal to the greater of three times the
    8-9  monthly rental payment under the lease or $2,000; and
   8-10              (4)  reasonable and necessary attorney's fees.
   8-11        SECTION 5.  Sections 92.201, 92.202, 92.203, 92.204, 92.205,
   8-12  and 92.206, Property Code, are amended to read as follows:
   8-13        Sec. 92.201.  Disclosure of Ownership and Management.  (a)  A
   8-14  landlord shall disclose to a tenant according to this subchapter:
   8-15              (1)  the name, business or residential <and either a>
   8-16  street address, and <or> post office box address of each <the>
   8-17  holder of record title, according to the deed records in the county
   8-18  clerk's office, of the dwelling rented by the tenant; and
   8-19              (2)  if an entity located off-site from the tenant's
   8-20  dwelling is primarily responsible for managing the dwelling, the
   8-21  name and street address of the management company and the name of
   8-22  each owner of the management company.
   8-23        (b)  Disclosure under Subsection (a) must be made by:
   8-24              (1)  giving the information in writing to the tenant on
   8-25  or before the seventh day after the day the landlord receives the
   8-26  tenant's request for the information;
   8-27              (2)  continuously posting the information in a
    9-1  conspicuous place in the dwelling or the office of the on-site
    9-2  manager or on the outside of the entry door to the office of the
    9-3  on-site manager <on or before the seventh day after the date the
    9-4  landlord receives the tenant's request for the information>; and
    9-5  <or>
    9-6              (3)  including the information in a copy of the
    9-7  tenant's lease or in written rules given to the tenant <before the
    9-8  tenant requests the information>.
    9-9        (c)  Disclosure of information may be made under Subdivision
   9-10  (1) <or (2)> of Subsection (b) before the tenant requests the
   9-11  information.
   9-12        (d)  A correction to the information must <may> be made by
   9-13  all <any> of the methods required by Subsection (b) <authorized for
   9-14  providing the information>.
   9-15        (e)  For the purposes of this subchapter <section>, the
   9-16  landlord must <an owner or property manager may> disclose the
   9-17  <either an actual> name of a natural person unless provided
   9-18  otherwise <or names or an assumed name if an assumed name
   9-19  certificate has been recorded with the county clerk>.
   9-20        (f)  If a holder of record title or an owner of a management
   9-21  company is not a natural person, the landlord must disclose:
   9-22              (1)  the name, including any assumed name, street
   9-23  address, and post office box address of the entity;
   9-24              (2)  the name, title, business or residential street
   9-25  address, and post office box address of the registered agent,
   9-26  general partner, joint venturer, president, officer, or owner of
   9-27  the entity; and
   10-1              (3)  a description of the entity.
   10-2        (g)  The landlord must also disclose the information required
   10-3  by Subsection (f) for each entity disclosed as required by
   10-4  Subsection (f).
   10-5        Sec. 92.202.  Landlord's Failure to Disclose Information.
   10-6  <(a)>  A landlord is liable to a tenant according to this
   10-7  subchapter if the landlord fails to provide the information as
   10-8  required by Section 92.201.<:>
   10-9              <(1)  after the tenant makes a request for information
  10-10  under Section 92.201, the landlord does not provide the
  10-11  information; and>
  10-12              <(2)  the landlord does not give the information to the
  10-13  tenant before the eighth day after the date the tenant gives the
  10-14  landlord written notice that the tenant may exercise his remedies
  10-15  under this subchapter if the landlord does not comply with the
  10-16  tenant's request for the information within seven days.>
  10-17        <(b)  If the tenant's lease is in writing, the lease may
  10-18  require the tenant's initial request for information to be
  10-19  written.>
  10-20        Sec. 92.203.  LANDLORD'S FAILURE TO CORRECT INFORMATION.  A
  10-21  landlord who has provided information under Subdivision (2) or (3)
  10-22  of Subsection (b) of Section 92.201 is liable to a tenant according
  10-23  to this subchapter if:
  10-24              (1)  the information becomes incorrect because a name
  10-25  or address changes; and
  10-26              (2)  the landlord fails to correct the information on
  10-27  or before the 30th <seventh> day after the date <the tenant gives>
   11-1  the landlord knows or reasonably should know the information is
   11-2  incorrect <written notice that the tenant may exercise his remedies
   11-3  under this subchapter if the corrected information is not provided
   11-4  within seven days>.
   11-5        Sec. 92.204.  BAD FAITH VIOLATION.  A landlord acts in bad
   11-6  faith and is liable according to this subchapter if the landlord
   11-7  gives an incorrect name or address under Subsection (a) of Section
   11-8  92.201 by wilfully:
   11-9              (1)  disclosing incorrect information under
  11-10  <Subdivision (1) or (2) of Subsection (b) of> Section 92.201; or
  11-11              (2)  failing to correct information given under
  11-12  <Subdivision (1) or (2) of Subsection (b) of> Section 92.201 that
  11-13  the landlord knows or reasonably should know is incorrect.
  11-14        Sec. 92.205.  TENANT REMEDIES.  (a)  A tenant of a landlord
  11-15  who is liable under Section 92.202, 92.203, or 92.204 may obtain or
  11-16  exercise one or more of the following remedies:
  11-17              (1)  a court order directing the landlord to make a
  11-18  disclosure required by this subchapter;
  11-19              (2)  a judgment against the landlord for an amount
  11-20  equal to the tenant's actual costs in discovering the information
  11-21  required to be disclosed by this subchapter;
  11-22              (3)  a judgment against the landlord for one month's
  11-23  rent plus $1,000 <$100>;
  11-24              (4)  a judgment against the landlord for court costs
  11-25  and attorney's fees; and
  11-26              (5)  unilateral termination of the lease without a
  11-27  court proceeding.
   12-1        (b)  If a landlord acts in bad faith, a tenant may obtain a
   12-2  judgment against the landlord for an additional $1,000.
   12-3        Sec. 92.206.  RENT PAYMENT NOT REQUIRED <LANDLORD'S DEFENSE>.
   12-4  <A landlord has a defense to liability under Section 92.202 or
   12-5  92.203 if the tenant owes rent on the date the tenant gives a
   12-6  notice required by either of those sections.>  Rent delinquency is
   12-7  not a defense for a violation of this subchapter <Section 92.204>.
   12-8        SECTION 6.  This Act takes effect September 1, 1995.
   12-9        SECTION 7.  The change in law made by Section 1 of this Act
  12-10  applies only to a tenant who defaults on or after the effective
  12-11  date of this Act.  A tenant who defaults before the effective date
  12-12  of this Act is covered by the law in effect when the default
  12-13  occurred, and the former law is continued in effect for that
  12-14  purpose.
  12-15        SECTION 8.  The importance of this legislation and the
  12-16  crowded condition of the calendars in both houses create an
  12-17  emergency and an imperative public necessity that the
  12-18  constitutional rule requiring bills to be read on three several
  12-19  days in each house be suspended, and this rule is hereby suspended.