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A BILL TO BE ENTITLED
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AN ACT
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relating to a fee collected by a landlord in lieu of a security |
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deposit. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. SECTION 1. Subchapter A, Chapter 92, Property |
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Code, is amended by adding Section 92.111 to read as follows: |
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Sec. 92.111. FEE IN LIEU OF SECURITY DEPOSIT. |
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(a) If a security deposit is required by a residential |
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lease, the landlord may choose to offer the tenant an option to pay |
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a fee in lieu of a security deposit; |
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(b) If the tenant decides to pay a fee in lieu of a security |
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deposit, an agreement to collect a fee in lieu of a security deposit |
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must be in writing and signed by the landlord or their legal |
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representative and the tenant; |
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(c) A fee in lieu of a security deposit may be a recurring |
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monthly fee, or payable upon any schedule and in any amount that the |
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landlord and tenant choose; |
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(d) A fee collected under this section may be used to |
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purchase insurance coverage for damages and charges for which the |
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tenant is legally liable under the lease or as a result of breaching |
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the lease. |
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(e) A fee collected under this section is not a security |
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deposit as defined by Section 92.102. |
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SECTION 2. Section 92.111, Property Code, as added by this |
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Act, applies only to a lease entered into or renewed on or after the |
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effective date of this Act. A lease entered into or renewed before |
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the effective date of this Act is governed by the law as it existed |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2021. |