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A BILL TO BE ENTITLED
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AN ACT
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relating to methods of payment of rent and security deposits to |
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residential landlords and authorizing associated service charges. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 92.011, Property Code, is amended to |
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read as follows: |
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Sec. 92.011. [CASH] RENTAL AND SECURITY DEPOSIT PAYMENTS; |
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SERVICE CHARGES. (a) In this section, "electronic funds transfer" |
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means any transfer of money, other than a transaction originated by |
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check, money order, or other traceable or negotiable instrument, |
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that is initiated through an electronic terminal, telephonic |
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instrument, computer, or magnetic tape and that orders, instructs, |
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or authorizes a financial institution to debit or credit an |
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account. The term includes a point-of-sale transfer, direct deposit |
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or withdrawal of money, transfer through an automated |
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clearinghouse, transfer initiated electronically that delivers a |
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paper instrument, and transfer authorized in advance to recur at |
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substantially regular intervals. |
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(b) Except as provided by Subsection (d), a landlord shall |
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permit a tenant to pay rent or a security deposit by at least one |
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method of payment other than cash or an electronic funds transfer. |
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(c) A landlord shall accept a tenant's timely cash rental |
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payment unless a written lease between the landlord and tenant |
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requires the tenant to make rental payments by a method other than |
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cash, provided that the written lease complies with Subsection (b) |
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[check, money order, or other traceable or negotiable instrument]. |
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(d) A landlord may require cash as the exclusive method of |
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payment of rent or a security deposit for a tenant whose immediately |
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preceding payment to the landlord was by a method of payment that |
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was refused or dishonored for insufficient funds or canceled by the |
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tenant. The landlord may not require cash as the exclusive form of |
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payment for more than three months after the date the tenant |
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tendered the refused, dishonored, or canceled payment to the |
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landlord. |
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(e) A tenant must pay to a landlord that requires cash |
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payment under Subsection (d) the amounts due to the landlord in cash |
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for the period determined by the landlord, subject to Subsection |
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(d), only if the landlord: |
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(1) provides written notice to the tenant that the |
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tenant's previous payment was refused, dishonored, or canceled; and |
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(2) attaches to the notice a copy or other evidence of |
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the refused, dishonored, or canceled payment. |
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(f) [(b)] A landlord who receives a cash rental or security |
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deposit payment shall: |
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(1) provide the tenant with a written receipt; and |
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(2) enter the payment date and amount in a record book |
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maintained by the landlord. |
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(g) A landlord may collect a service charge for processing a |
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payment of rent or a security deposit by electronic funds transfer |
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in an amount not to exceed the amount of the service charge |
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authorized under Section 501.176, Transportation Code, for |
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processing a payment for a certificate of title or registration for |
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a motor vehicle by electronic funds transfer. A landlord may not |
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collect a service charge for processing a payment of rent or a |
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security deposit by any method of payment other than electronic |
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funds transfer. |
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(h) [(c)] A tenant or a governmental entity or civic |
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association acting on the tenant's behalf may file suit against a |
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landlord to enjoin a violation of Subsection (c) [this section]. A |
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party who prevails in a suit brought under this subsection may |
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recover court costs and reasonable attorney's fees from the other |
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party. In addition to court costs and reasonable attorney's fees, a |
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tenant who prevails under this subsection may recover from the |
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landlord the greater of one month's rent or $500 for each violation |
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of this section. |
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(i) A provision of a lease that purports to waive a right or |
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exempt a party from a liability under this section is void. |
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SECTION 2. Section 92.011, Property Code, as amended by |
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this Act, applies only to a lease entered into or renewed on or |
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after the effective date of this Act. A lease entered into or |
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renewed before the effective date of this Act is governed by the law |
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as it existed immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2019. |