89R1685 PRL-D

By: Bell of Montgomery H.B. No. 1518

A BILL TO BE ENTITLED

AN ACT

relating to the issuance by the Texas Department of Housing and Community Affairs of verified residential rental applications.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. This Act shall be known as the Ready to Rent Texas Act.

SECTION 2. Chapter 92, Property Code, is amended by adding Subchapter J to read as follows:

SUBCHAPTER J. VERIFIED RESIDENTIAL RENTAL APPLICATION

Sec. 92.361. DEFINITIONS. In this subchapter:

(1) "Applicant" means a person who makes an application to a landlord for rental of a dwelling.

(2) "Department" means the Texas Department of Housing and Community Affairs.

(3) "Landlord" means a prospective landlord to whom a person makes an application for rental of a dwelling.

(4) "Portal" means the verified residential rental application Internet portal established and maintained by the department.

(5) "Verified application" means the verified residential rental application issued by the department through the portal.

Sec. 92.362. APPLICATION OF SUBCHAPTER. This subchapter applies to all applicants for and landlords of residential rental property in this state.

Sec. 92.363. CONSTRUCTION OF SUBCHAPTER. Nothing in this subchapter may be construed to prohibit a landlord from rejecting an applicant if the applicant does not meet the landlord's tenant selection criteria, including the applicant's:

(1) criminal history;

(2) previous rental history;

(3) current income;

(4) credit history; or

(5) guarantor information, as applicable.

Sec. 92.364. APPLICANT USE OF VERIFIED APPLICATION. An applicant for rental of a dwelling completely satisfies any application requirements of a landlord by submitting to the landlord a verified application issued not earlier than the 90th day before the date the application is submitted to the landlord.

Sec. 92.365. LANDLORD ACCEPTANCE OF VERIFIED APPLICATION. A landlord must accept a verified application as completely satisfying the landlord's application requirements if the application is issued not earlier than the 90th day before the date the application is submitted to the landlord by the applicant.

Sec. 92.366. PROHIBITED APPLICATION DOCUMENTS AND FEES. A landlord may not require an applicant to:

(1) submit a rental application other than a verified application; or

(2) pay an:

(A) application fee; or

(B) application deposit.

Sec. 92.367. VERIFIED RESIDENTIAL RENTAL APPLICATION INTERNET PORTAL. (a) In this section:

(1) "Consumer reporting agency" means any person that, for monetary fees or dues or on a cooperative nonprofit basis, regularly engages in the practice of assembling or evaluating credit information or other information on individuals for the purpose of furnishing consumer reports to third parties.

(2) "Credit report" means a written report of information by a consumer reporting agency that bears on an individual's creditworthiness, credit standing, or credit capacity.

(3) "Criminal history background check" means a written report of an individual's criminal history record information, as defined by Section 411.082, Government Code.

(b) The department shall develop and implement a portal through which an applicant may obtain a verified residential rental application that the applicant may use to apply for rental of a dwelling.

(c) The portal implemented under Subsection (b) shall provide for an applicant to:

(1) submit the applicant's:

(A) previous rental history;

(B) proof of current income; and

(C) guarantor information, if applicable;

(2) request and grant permission for the department to obtain the applicant's:

(A) criminal history background check; and

(B) credit report;

(3) pay any required fees; and

(4) access and share the applicant's verified application.

(d) The department may contract with a private vendor for the development and implementation of the portal required by Subsection (b).

(e) On submission of a request for a verified application and payment of required fees under Subsection (f), the department shall:

(1) obtain the applicant's:

(A) criminal history background check; and

(B) credit report;

(2) verify the applicant's:

(A) criminal history;

(B) previous rental history;

(C) current income;

(D) credit history; and

(E) guarantor information, as applicable;

(3) issue a verified application to the applicant through the portal; and

(4) enable the applicant to share the verified application through the portal.

(f) The department may charge a fee for a verified application in an amount reasonable and necessary to administer this subchapter. The department may not charge a fee for a criminal history background check or a credit report that exceeds the actual cost to the department of obtaining the document.

(g) A verified application issued under this section is valid for 90 days.

SECTION 3. Section 92.102, Property Code, is amended to read as follows:

Sec. 92.102. SECURITY DEPOSIT. A security deposit is any advance of money, other than [a rental application deposit or] an advance payment of rent, that is intended primarily to secure performance under a lease of a dwelling that has been entered into by a landlord and a tenant.

SECTION 4. Subchapter I, Chapter 92, Property Code, is repealed.

SECTION 5. Not later than December 31, 2025, the Department of Housing and Community Affairs shall make available to the public the verified residential rental application Internet portal required by Section 92.367, Property Code, as added by this Act.

SECTION 6. This Act takes effect January 1, 2026.