75R11316 CAS-F                           

         By Burnam                                             H.B. No. 2016

         Substitute the following for H.B. No. 2016:

         By Dukes                                          C.S.H.B. No. 2016

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to certain procedures concerning landlords and tenants of

 1-3     residential real property.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 92.056, Property Code, is amended to read

 1-6     as follows:

 1-7           Sec. 92.056. LANDLORD LIABILITY AND TENANT REMEDIES; NOTICE

 1-8     AND TIME FOR REPAIR.  (a)  A landlord's liability under this

 1-9     section  is  subject to Section 92.052(b) regarding conditions that

1-10     are caused by a tenant and Section 92.054 regarding conditions that

1-11     are insured casualties.

1-12           (b)  A landlord [has a duty to repair or remedy a condition

1-13     and] is liable to a tenant as provided by this subchapter if:

1-14                 (1)  [the condition materially affects the physical

1-15     health or safety of an ordinary tenant;]

1-16                 [(2)]  the tenant has given the landlord notice to

1-17     repair or remedy a [the] condition by giving that notice to the

1-18     person to whom or to the place where the tenant's rent is normally

1-19     paid [as  required by Subsection (a)  of Section 92.052];

1-20                 (2)  the condition materially affects the physical

1-21     health or safety of an ordinary tenant;

1-22                 (3)  the tenant has given the landlord a subsequent

1-23     written notice to repair or remedy the condition after a reasonable

1-24     time to repair or remedy the condition following the notice given

 2-1     under Subdivision (1) or the tenant has given the notice under

 2-2     Subdivision (1) by sending that notice by certified mail, return

 2-3     receipt requested, or by registered mail;

 2-4                 (4)  the landlord has had a reasonable time to repair

 2-5     or remedy the condition after the landlord received the tenant's

 2-6     notice under  Subdivision (1) and, if applicable, the tenant's

 2-7     subsequent notice under Subdivision (3) [, considering the nature

 2-8     of the problem and the reasonable availability of materials, labor,

 2-9     and utilities from a utility company];

2-10                 [(4)  the tenant has given subsequent written notice to

2-11     the landlord, stating that the tenant intends to terminate the

2-12     lease, exercise repair and deduct remedies, or pursue judicial

2-13     remedies;]

2-14                 (5)  the landlord has not made a diligent effort to

2-15     repair or remedy the condition after the landlord received the

2-16     tenant's notice under Subdivision (1) and, if applicable, the

2-17     tenant's notice under Subdivision (3); and

2-18                 (6)  the tenant was not delinquent in the payment of

2-19     rent at the time any notice [the notices] required by [Subdivisions

2-20     (2) and (4) of] this subsection was [were] given.

2-21           (c)  For purposes of Subsection (b)(4) or (5), a landlord is

2-22     considered to have received the tenant's notice when the landlord

2-23     or the landlord's agent or employee has actually received the

2-24     notice or when the United States Postal Service has attempted to

2-25     deliver the notice to the landlord.

2-26           (d)  For purposes of Subsection (b)(3) or (4), in determining

2-27     whether a period of time is a reasonable time to repair or remedy a

 3-1     condition, there is a rebuttable presumption that seven days is a

 3-2     reasonable time.  To rebut that presumption, the date on which the

 3-3     landlord received the tenant's notice, the severity and nature of

 3-4     the condition, and the reasonable availability of materials and

 3-5     labor and of utilities from a utility company must be considered.

 3-6           (e)  [The landlord's duty under this subsection is subject to

 3-7     the provisions of Subsection (b) of Section 92.052 regarding

 3-8     conditions which are caused by the tenant and Section 92.054

 3-9     regarding conditions which are insured casualties.]

3-10           [(b)]  Except as provided in Subsection (f) [(c) of this

3-11     section], a tenant to whom a landlord is liable under Subsection

3-12     (b) [(a)] of this section may:

3-13                 (1)  terminate the lease [if the condition is not

3-14     repaired or remedied within seven days after the tenant's notice of

3-15     intent to terminate];

3-16                 (2)  have the condition repaired or remedied according

3-17     to Section 92.0561;

3-18                 (3)  deduct from the tenant's rent, without necessity

3-19     of judicial action, the cost of the repair or remedy according to

3-20     Section 92.0561; and

3-21                 (4)  obtain judicial remedies according to Section

3-22     92.0563 [if the condition is not repaired or remedied within seven

3-23     days after the tenant's notice of intent to repair or remedy].

3-24           (f) [(c)]  A tenant who elects to terminate the lease under

3-25     Subsection (e) [(b) of this section] is:

3-26                 (1)  entitled to a pro rata refund of rent from the

3-27     date of termination or the date the tenant moves out, whichever is

 4-1     later;

 4-2                 (2)  entitled to deduct the tenant's security deposit

 4-3     from the tenant's rent without necessity of lawsuit or obtain a

 4-4     refund of the tenant's security deposit according to law; and

 4-5                 (3)  not entitled to the other repair and deduct

 4-6     remedies under Section 92.0561 or the judicial remedies under

 4-7     Subdivisions (1) and (2) of Subsection (a)  of Section 92.0563.

 4-8           SECTION 2.  Sections 92.0561(a)-(d), Property Code, are

 4-9     amended to read as follows:

4-10           (a)  If the landlord is liable to the tenant under

4-11     [Subsection (a) of] Section 92.056(b), the tenant may have the

4-12     condition repaired or remedied and may deduct the cost from a

4-13     subsequent rent payment as provided in this section.

4-14           (b)  The tenant's deduction for the cost of the repair or

4-15     remedy may not exceed the amount of one month's rent under the

4-16     lease or $500, whichever is greater.  However, if the tenant's rent

4-17     is subsidized in whole or in part by a governmental agency, the

4-18     deduction limitation of one month's rent shall mean the fair market

4-19     rent for the dwelling and not the rent that the tenant pays.  The

4-20     fair market rent shall be determined by the governmental agency

4-21     subsidizing the rent, or in the absence of such a determination, it

4-22     shall be a reasonable amount of rent under the circumstances.

4-23           (c)  Repairs and deductions under this section may be made as

4-24     often as necessary so long as the total repairs and deductions in

4-25     any one month do not exceed one month's rent or $500, whichever is

4-26     greater.

4-27           (d)  Repairs under this section may be made only if all of

 5-1     the following requirements are met:

 5-2                 (1)  The landlord has a duty to repair or remedy the

 5-3     condition under Section 92.052, and the duty has not been waived in

 5-4     a written lease by the tenant under Subsection (e) or (f) of

 5-5     Section 92.006.

 5-6                 (2)  The tenant has given notice [notices] to the

 5-7     landlord as required by Section 92.056(b)(1), and, if required, a

 5-8     subsequent  notice under Section 92.056(b)(3), and at least one of

 5-9     those notices [the second or last notice by the tenant to the

5-10     landlord] states that the tenant intends to repair or remedy the

5-11     condition.  The notice shall also contain a reasonable description

5-12     of the intended repair or remedy.

5-13                 (3)  Any one of the following events has occurred:

5-14                       (A)  The landlord has failed to remedy the backup

5-15     or overflow of raw sewage inside the tenant's dwelling or the

5-16     flooding from broken pipes or natural drainage inside the dwelling.

5-17                       (B)  The landlord has expressly or impliedly

5-18     agreed in the lease to furnish potable water to the tenant's

5-19     dwelling and the water service to the dwelling has totally ceased.

5-20                       (C)  The landlord has expressly or impliedly

5-21     agreed in the lease to furnish heating or cooling equipment;  the

5-22     equipment is producing inadequate heat or cooled air; and the

5-23     landlord has been notified in writing by the appropriate local

5-24     housing, building, or health official or other official having

5-25     jurisdiction that the lack of heat or cooling materially affects

5-26     the health or safety of an ordinary tenant.

5-27                       (D)  The landlord has been notified in writing by

 6-1     the appropriate local housing, building, or health official or

 6-2     other official having jurisdiction that the condition materially

 6-3     affects the health or safety of an ordinary tenant.

 6-4           SECTION 3.  (a)  This Act takes effect January 1, 1998.

 6-5           (b)  The changes in law made by this Act apply only to

 6-6     residential leases entered into or renewed on or after January 1,

 6-7     1998.  Residential leases entered into or renewed before that date

 6-8     are covered by the law as it existed at the time the lease was

 6-9     entered into or renewed, and the former law is continued in effect

6-10     for that purpose.

6-11           SECTION 4.  The importance of this legislation and the

6-12     crowded condition of the calendars in both houses create an

6-13     emergency and an imperative public necessity that the

6-14     constitutional rule requiring bills to be read on three several

6-15     days in each house be suspended, and this rule is hereby suspended.