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A BILL TO BE ENTITLED
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AN ACT
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relating to application fees and deposits paid to a landlord of |
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residential rental property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 92.351, Property Code, is amended by |
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amending Subdivisions (1) and (1-a) and adding Subdivision (3-a) to |
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read as follows: |
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(1) ["Application deposit" means a sum of money that
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is given to the landlord in connection with a rental application and
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that is refundable to the applicant if the applicant is rejected as
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a tenant.
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[(1-a)] "Application fee" means a [nonrefundable] sum |
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of money that is given to the landlord to offset the costs of |
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screening an applicant for acceptance as a tenant. |
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(3-a) "Deposit" means a sum of money that is given to |
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the landlord in connection with a rental application as a holding or |
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application deposit to take a unit off the market while the rental |
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application is processed. The term does not include an application |
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fee. |
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SECTION 2. Subchapter I, Chapter 92, Property Code, is |
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amended by adding Section 92.3513 to read as follows: |
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Sec. 92.3513. DEPOSIT. (a) An applicant is entitled to the |
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refund of a deposit if the applicant: |
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(1) is rejected as a tenant; or |
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(2) withdraws the application before the application |
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has been processed. |
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(b) A landlord may retain the deposit if the applicant gives |
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false information on the rental application. |
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SECTION 3. Sections 92.3515(e) and (f), Property Code, are |
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amended to read as follows: |
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(e) Except as provided by Subsection (f), if [If] the |
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landlord rejects an applicant and the landlord has not made the |
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notice required by Subsection (a) available, the landlord shall |
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return the application fee and any [application] deposit not later |
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than the fifth day after the date the landlord rejects the |
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applicant. |
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(f) If an applicant requests a landlord to mail a refund of |
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the applicant's deposit or application fee to the applicant, the |
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landlord shall mail the refund check to the applicant at the address |
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furnished by the applicant not later than the fifth day after the |
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date the landlord rejected the applicant. |
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SECTION 4. Section 92.352(a), Property Code, is amended to |
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read as follows: |
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(a) The applicant is deemed rejected by the landlord if the |
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landlord does not give notice of acceptance of the applicant on or |
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before the seventh day after the: |
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(1) date the applicant submits a completed rental |
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application to the landlord on an application form furnished by the |
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landlord; or |
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(2) date the landlord accepts a [an application] |
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deposit if the landlord does not furnish the applicant an |
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application form. |
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SECTION 5. Section 92.353, Property Code, is amended by |
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adding Subsection (a-1) and amending Subsections (b) and (c) to |
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read as follows: |
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(a-1) Except as provided by Subsection (b), if the landlord |
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rejects an applicant, the landlord shall return any deposit not |
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later than the fifth day after the date the application is rejected. |
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(b) If a rental applicant requests that any acceptance of |
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the applicant or any refund of the applicant's [application] |
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deposit be mailed to the applicant, the landlord must mail the |
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refund check to the applicant at the address furnished by the |
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applicant not later than the fifth day after the date the landlord |
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rejected the applicant. |
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(c) If the date of required notice of acceptance or required |
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refund of a [an application] deposit or application fee is a |
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Saturday, Sunday, or state or federal holiday, the required date |
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shall be extended to the end of the next day following the Saturday, |
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Sunday, or holiday. |
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SECTION 6. The changes in law made by this Act apply only to |
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a rental application submitted on or after the effective date of |
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this Act. A rental application submitted before the effective date |
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of this Act is governed by the law in effect on the date the rental |
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application was submitted, and the former law is continued in |
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effect for that purpose. |
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SECTION 7. This Act takes effect September 1, 2015. |