HBA-JEK, CCH C.S.H.B. 2186 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2186 By: Davis, Yvonne Business & Industry 4/16/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Most leasing agents use standard lease contracts that list the rental costs and charges that a landlord may assess. However, landlords may charge fees other than those listed on the standard lease agreement and some landlords charge maintenance and filing fees without giving tenants written or oral notice at the beginning of the lease term. C.S.H.B. 2186 requires landlords of commercial properties to disclose all potential fees that may be assessed to a tenant prior to entering a lease agreement. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS C.S.H.B. 2186 amends the Property Code to prohibit a landlord of a commercial property from assessing a charge to a tenant unless the amount of the charge or the method by which the charge is to be computed is stated in the lease, an exhibit or attachment that is part of the lease, or an amendment to the lease. This provision does not apply to a charge for rent or physical damage to the leased premises and does not affect a landlord's right to assess a charge or obtain a remedy allowed under a statute or common law. EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2186 differs from the original bill by applying these provisions to commercial leases, rather than residential leases. The substitute removes the provision that authorized a landlord to assess a charge at the end of a lease term or after the tenant surrenders the premises if the landlord informed the tenant orally or in writing before the lease was entered into of the possibility of the assessment charges at the end of the lease term or the surrender of the premises. The substitute specifies that the provisions restricting certain changes do not affect a landlord's right to charge or obtain a remedy allowed under a statute or common law.