Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Burnam                                       H.B. No. 2852

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to tenant reporting and tenant reporting services.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Chapter 92, Property Code, is amended by adding

 1-5     Subchapter I, to read as follows:

 1-6                      SUBCHAPTER I.  TENANT REPORTING. 

 1-7           Sec. 92.350.  TENANT REPORTING SERVICES.  As used in this

 1-8     Subchapter "tenant reporting service" means a person or

 1-9     organization engaging in the practice of assembling or reporting

1-10     information regarding individual residential tenants, for the

1-11     purpose of furnishing such tenant information to third parties.

1-12           Sec. 92.351.  PROHIBITION AGAINST SUBMITTING FALSE OR

1-13     DISPUTED MATTERS.  (a)  A person who knowingly furnishes false

1-14     tenant information regarding another person to a tenant reporting

1-15     service is liable to the tenant for actual damages, plus a civil

1-16     penalty of $500, court costs and reasonable and necessary

1-17     attorney's fees.

1-18           (b)  If a tenant has exercised a right to unilaterally

1-19     terminate the lease, withhold rent, use the security deposit for

1-20     rent, or repair and deduct, according to this Chapter, the landlord

1-21     and management company may not issue statements to a tenant

1-22     reporting service regarding any claim the landlord or management

1-23     company may have against the tenant based upon an alleged improper

1-24     exercise unless such a claim has been judicially determined.

 2-1           Sec. 92.352.  RIGHT TO NOTICE OF REPORT USED.  If a landlord

 2-2     or management company rejects a prospective tenant based in whole

 2-3     or in part on information provided by a tenant reporting service,

 2-4     the landlord or management company must inform the tenant, upon

 2-5     request within five days, of the name, address and telephone number

 2-6     of the tenant reporting service and the information obtained from

 2-7     the tenant reporting service, and give a copy of any written report

 2-8     without charge to the tenant.

 2-9           Sec. 92.353.  REMEDIES FOR VIOLATION.  (a)  In addition to

2-10     other remedies provided by law, a landlord or management company

2-11     who violates any provision of this Subchapter is liable to the

2-12     tenant for actual damages, plus a civil penalty of $500, court

2-13     costs and reasonable and necessary attorney's fees.

2-14           (b)  In addition to the remedies provided in Subsection (a)

2-15     of this Section, if a landlord or management company is notified of

2-16     a violation of any provision of this Subchapter in writing, and

2-17     fails to withdraw or otherwise correct the information given to the

2-18     tenant reporting service within 10 days, then the tenant is further

2-19     entitled to injunctive relief, and an additional civil penalty of

2-20     $1,000.

2-21           SECTION 2.  This Act takes effect September 1, 1997.

2-22           SECTION 3.  The importance of this legislation and the

2-23     crowded condition of the calendars in both houses create an

2-24     emergency and an imperative public necessity that the

2-25     constitutional rule requiring bills to be read on three several

2-26     days in each house be suspended, and this rule is hereby suspended.