By: Hancock  S.B. No. 1414
         (In the Senate - Filed March 1, 2019; March 14, 2019, read
  first time and referred to Committee on Business & Commerce;
  April 10, 2019, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 8, Nays 1; April 10, 2019,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1414 By:  Hancock
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to fees regarding a residential tenant's failure to timely
  pay rent.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 92.019, Property Code, is amended by
  amending Subsections (a), (b), and (c) and adding Subsections (a-1)
  and (a-2) to read as follows:
         (a)  A landlord may not collect from [charge] a tenant a late
  fee for failing to pay any portion of the tenant's rent unless:
               (1)  notice of the fee is included in a written lease;
               (2)  the fee is [a] reasonable [estimate of uncertain
  damages to the landlord that are incapable of precise calculation
  and result from late payment of rent]; and
               (3)  any portion of the tenant's rent has remained
  unpaid two [one] full days [day] after the date the rent was
  originally due.
         (a-1)  A tenant may request that the landlord provide to the
  tenant a written statement of whether the tenant owes a late fee to
  the landlord and, if so, the amount of the late fee. The landlord
  may provide the statement to the tenant by any established means
  regularly used for written communication between the landlord and
  the tenant.  A landlord's failure to respond does not affect the
  tenant's liability for any late fee owed to the landlord.
         (a-2)  For purposes of this section, a late fee is considered
  reasonable if the late fee does not exceed 12 percent of the amount
  of rent for the rental period under the lease.  A late fee that
  exceeds 12 percent of the amount of rent for the rental period under
  the lease is considered reasonable if the late fee does not exceed
  uncertain damages to the landlord related to late payment of rent,
  including direct or indirect expenses, direct or indirect costs, or
  overhead associated with the collection of late payment.
         (b)  A late fee under this section may include an initial fee
  and a daily fee for each day any portion of the tenant's rent
  continues to remain unpaid, and the combined fees are considered a
  single late fee for purposes of this section.
         (c)  A landlord who violates this section is liable to the
  tenant for an amount equal to the sum of $100, three times the
  amount of the late fee collected [charged] in violation of this
  section, and the tenant's reasonable attorney's fees.
         SECTION 2.  Section 92.019, Property Code, as amended by
  this Act, applies only to a late fee under a lease entered into or
  renewed on or after the effective date of this Act. A late fee under
  a lease entered into or renewed before the effective date of this
  Act is governed by the law as it existed immediately before the
  effective date of this Act, and that law is continued in effect for
  that purpose.
         SECTION 3.  This Act takes effect September 1, 2019.
 
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