By Maxey H.B. No. 1615 75R5570 CAS-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to a tenant's security deposit held by a landlord. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter C, Chapter 92, Property Code, is 1-5 amended by adding Section 92.1021 to read as follows: 1-6 Sec. 92.1021. PLACEMENT OF SECURITY DEPOSIT IN SAVINGS 1-7 ACCOUNT. (a) A landlord shall place each security deposit into an 1-8 interest-bearing savings account in a financial institution as soon 1-9 as practicable after receiving the security deposit from the 1-10 tenant. 1-11 (b) The landlord shall maintain the security deposit in an 1-12 interest-bearing savings account in a financial institution until a 1-13 reasonable time before the landlord returns the security deposit to 1-14 the tenant as required by this subchapter or until the time the 1-15 landlord is entitled to retain the security deposited under this 1-16 subchapter. 1-17 SECTION 2. Section 92.104, Property Code, is amended by 1-18 adding Subsection (d) to read as follows: 1-19 (d) Except as authorized by this section or Section 92.1031 1-20 for a landlord to retain a security deposit, a landlord shall 1-21 return to a tenant all or part of the tenant's security deposit in 1-22 accordance with this section or Section 92.1031, as applicable, 1-23 plus interest earned on the entire security deposit while the 1-24 security deposit was maintained in a savings account as required by 2-1 Section 92.1021. 2-2 SECTION 3. Section 92.1021, Property Code, as added by this 2-3 Act, applies only to a tenant's security deposit placed with a 2-4 landlord on or after the effective date of this Act. 2-5 SECTION 4. This Act takes effect September 1, 1997. 2-6 SECTION 5. The importance of this legislation and the 2-7 crowded condition of the calendars in both houses create an 2-8 emergency and an imperative public necessity that the 2-9 constitutional rule requiring bills to be read on three several 2-10 days in each house be suspended, and this rule is hereby suspended.