84R23902 LEH-F By: Davis of Dallas H.B. No. 1009 Substitute the following for H.B. No. 1009: By: Oliveira C.S.H.B. No. 1009 A BILL TO BE ENTITLED AN ACT relating to application fees and deposits paid to a landlord of residential rental property. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 92.351, Property Code, is amended by amending Subdivisions (1) and (1-a) and adding Subdivision (3-a) to read as follows: (1) ["Application deposit" means a sum of money that is given to the landlord in connection with a rental application and that is refundable to the applicant if the applicant is rejected as a tenant. [(1-a)] "Application fee" means a [nonrefundable] sum of money that is given to the landlord to offset the costs of screening an applicant for acceptance as a tenant. (3-a) "Deposit" means a sum of money that is given to the landlord in connection with a rental application as a holding or application deposit to take a unit off the market while the rental application is processed. The term does not include an application fee. SECTION 2. Subchapter I, Chapter 92, Property Code, is amended by adding Section 92.3513 to read as follows: Sec. 92.3513. DEPOSIT. (a) An applicant is entitled to the refund of a deposit if the applicant: (1) is rejected as a tenant; or (2) withdraws the application before the application has been processed. (b) A landlord may retain the deposit if the applicant gives false information on the rental application. SECTION 3. Sections 92.3515(e) and (f), Property Code, are amended to read as follows: (e) Except as provided by Subsection (f), if [If] the landlord rejects an applicant and the landlord has not made the notice required by Subsection (a) available, the landlord shall return the application fee and any [application] deposit not later than the fifth day after the date the landlord rejects the applicant. (f) If an applicant requests a landlord to mail a refund of the applicant's deposit or application fee to the applicant, the landlord shall mail the refund check to the applicant at the address furnished by the applicant not later than the fifth day after the date the landlord rejected the applicant. SECTION 4. Section 92.352(a), Property Code, is amended to read as follows: (a) The applicant is deemed rejected by the landlord if the landlord does not give notice of acceptance of the applicant on or before the seventh day after the: (1) date the applicant submits a completed rental application to the landlord on an application form furnished by the landlord; or (2) date the landlord accepts a [an application] deposit if the landlord does not furnish the applicant an application form. SECTION 5. Section 92.353, Property Code, is amended by adding Subsection (a-1) and amending Subsections (b) and (c) to read as follows: (a-1) Except as provided by Subsection (b), if the landlord rejects an applicant, the landlord shall return any deposit not later than the fifth day after the date the application is rejected. (b) If a rental applicant requests that any acceptance of the applicant or any refund of the applicant's [application] deposit be mailed to the applicant, the landlord must mail the refund check to the applicant at the address furnished by the applicant not later than the fifth day after the date the landlord rejected the applicant. (c) If the date of required notice of acceptance or required refund of a [an application] deposit or application fee is a Saturday, Sunday, or state or federal holiday, the required date shall be extended to the end of the next day following the Saturday, Sunday, or holiday. SECTION 6. The changes in law made by this Act apply only to a rental application submitted on or after the effective date of this Act. A rental application submitted before the effective date of this Act is governed by the law in effect on the date the rental application was submitted, and the former law is continued in effect for that purpose. SECTION 7. This Act takes effect September 1, 2015.