Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Maxey H.B. No. 3525
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to funding of the housing trust fund administered by the
1-3 Department of Housing and Community Affairs.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 2306.201, Government Code, is amended to
1-6 read as follows:
1-7 Sec. 2306.201. Housing Trust Fund. (a) The housing trust
1-8 fund is a fund:
1-9 (1) administered by the department through the housing
1-10 finance division; and
1-11 (2) placed with the Texas Treasury Safekeeping Trust
1-12 Company.
1-13 (b) The fund consists of:
1-14 (1) appropriations or transfers made to the fund;
1-15 (2) unencumbered fund balances; and
1-16 (3) public or private gifts or grants; and
1-17 (4) funds generated from security deposit accounts
1-18 under section 2306.499.
1-19 SECTION 2. Chapter 2306, Government Code, is amended by
1-20 adding Section 2306.499 to read as follows:
1-21 Sec. 2306.499. SECURITY DEPOSIT ACCOUNTS. (a) A landlord
1-22 or apartment owner who receives a security deposit pursuant to
1-23 Subchapter C, Texas Property Code, shall notify the department in
1-24 writing of the location, terms and account number of the account
2-1 holding the security deposit not later than 90 days after the date
2-2 the landlord receives the security deposit from a tenant.
2-3 (b) A landlord or apartment owner is not required to notify
2-4 the department of the location, terms and account number of the
2-5 account each time the landlord receives a new security deposit from
2-6 a tenant as long as the security deposit is placed into an account
2-7 previously disclosed according to subsection (a).
2-8 (c) A landlord or apartment owner who receives a security
2-9 deposit from a previous owner of a rental premises shall notify the
2-10 department of the location, terms and account number of the account
2-11 holding the security deposit not later than 30 days from the date
2-12 the landlord receives the deposit.
2-13 (d) The landlord or apartment owner shall direct the bank
2-14 holding a security deposit account to electronically transfer
2-15 accrued interest promptly on or before February 1 for each calendar
2-16 year following the opening date of the account into the housing
2-17 trust fund.
2-18 (e) This section does not apply to a landlord or apartment
2-19 owner who owns ten or fewer rental dwellings and does not use a
2-20 management company or managing agent to manage the rental
2-21 dwellings.
2-22 (f) In addition to other remedies provided by law, the
2-23 department may bring suit against a landlord or apartment owner
2-24 violating this section and be entitled to actual damages, a civil
2-25 penalty of $1,000, injunctive relief, reasonable attorney fees and
2-26 court costs.
2-27 SECTION 3. Chapter 92, Property Code, is amended by adding
2-28 Section 92.1021 to read as follows:
2-29 Sec. 92.1021. PLACEMENT IN SEPARATE ACCOUNT. (a) At the
2-30 expiration of 60 days from the receipt of a tenant's security
3-1 deposit from a tenant, a landlord shall not commingle a tenant's
3-2 security deposit with assets of the landlord or apartment owner.
3-3 The landlord may commingle the security deposits of multiple
3-4 tenants.
3-5 (b) On or before the expiration of 60 days from the receipt
3-6 of a tenant's security deposit from a tenant, the landlord shall
3-7 deposit a tenant's security deposit in an interest bearing account
3-8 in a bank in which the account accrues interest at a rate not less
3-9 than two percent per year.
3-10 (c) A landlord may not withdraw a tenant's security deposit
3-11 from the account unless:
3-12 (1) the landlord in refunding the deposit according to
3-13 Section 92.103;
3-14 (2) the landlord is retaining the deposit according to
3-15 Section 92.104 and 92.1031; or
3-16 (3) the landlord in transferring the deposit to
3-17 another account for good cause in accordance with the terms of this
3-18 section.
3-19 (d) Upon cessation of the owner's interest in the rental
3-20 premises, all funds in the security deposit account shall be
3-21 transferred to the new landlord, but remain in a separate account
3-22 accruing interest in accordance with subsection (a), (b) and (c) of
3-23 this section.
3-24 (e) This section does not apply to a landlord or apartment
3-25 owner who owns ten or fewer rental dwellings and does not use a
3-26 management company or agent to manage the rental dwellings.
3-27 SECTION 4. Section 92.109, Property Code, is amended by
3-28 adding Subsection (e) to read as follows:
3-29 (e) A landlord who violates 92.1021:
3-30 (1) forfeits the right to withhold any portion of the
4-1 deposit:
4-2 (2) is liable to the tenant or a governmental entity
4-3 or civic organization acting on behalf of the tenant for actual
4-4 damages, a civil penalty in an amount equal to the amount of the
4-5 security deposit, court costs and reasonable attorney's fees: and
4-6 (3) may be enjoined from future violations in a suit
4-7 brought by the tenant or a governmental entity or civic
4-8 organization acting on behalf of the tenant.
4-9 SECTION 5. This Act takes effect September 1, 1997. The
4-10 change in the law made by this Act applies to security deposit
4-11 funds received from a tenant after the effective date of this Act
4-12 Section 6. The importance of this legislation and the
4-13 crowded condition of the calendars in both houses create an
4-14 emergency and an imperative public necessity that the
4-15 constitutional rule requiring bills to be read on three several
4-16 days in each house be suspended, and this rule is hereby suspended