By: Anchia H.B. No. 2526 A BILL TO BE ENTITLED AN ACT relating to the notice required regarding the application of certain residential rental payments. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 92, Property Code, is amended by adding Section 92.0191 to read as follows: Sec. 92.0191. APPLICATION OF RENTAL PAYMENT TO OTHER FEES. (a) Except as stated in subsection (b), a landlord shall apply all funds received to the rent owed and then to any other charges lawfully owed to the landlord under the lease unless the tenant specifies otherwise in a written notice. (b) If the lease allows a landlord to apply funds received to nonrent charges first, a landlord is authorized to do so as long as the landlord has given the tenant a separate written notice with three days of the receipt of the funds that specifies: (1) the amount of the funds received; (2) the amount applied to nonrent charges with a description of each charge; (3) the amount applied to rent if applicable; and (4) the amount of rent or other charges still owed, if applicable. (c) A landlord who applies funds received to nonrent charges first as provided in subsection (b) may not charge the tenant a late fee for not timely tendering the current month's rent if (1) the funds were received before the conclusion of any grace period provided by law or the lease whichever is greater; and (2) the amount of the funds received would equal or exceed the rent currently owed the landlord, excluding all other charges. (d) A provision of a lease agreement that attempts to waive any provision of this section not authorized by this section is void. SECTION 2. This Act takes effect September 1, 2009.