Honorable Helen Giddings, Chair, House Committee on Business & Industry
FROM:
John Keel, Director, Legislative Budget Board
IN RE:
HB2180 by Baxter (Relating to charges assessed by a landlord under a commercial lease.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would amend Chapter 93 of the Property Code by adding Section 93.004. The new section would state that a landlord may not assess a charge, excluding a charge for rent or physical damage to the leased premises, to a tenant unless the charge is permitted in the lease without including the method of computation, and the charge is computed in accordance with Subsection (b). Subsection (b) would state that the charge must be reasonable and must be a method customarily used by landlords in commercial leases of a similar duration and for a similar type of commercial property as the lease entered into by the landlord and tenant.
This bill would take effect September 1, 2003.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.