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.