85R6691 PMO-F
By: Neave H.B. No. 3401
A BILL TO BE ENTITLED
AN ACT
relating to methods of payment of rent and security deposits to
residential landlords and authorizing associated service charges.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 92.011, Property Code, is amended to
read as follows:
Sec. 92.011. [CASH] RENTAL AND SECURITY DEPOSIT PAYMENTS;
SERVICE CHARGES. (a) In this section, "electronic funds transfer"
means any transfer of money, other than a transaction originated by
check, money order, or other traceable or negotiable instrument,
that is initiated through an electronic terminal, telephonic
instrument, computer, or magnetic tape and that orders, instructs,
or authorizes a financial institution to debit or credit an
account. The term includes a point-of-sale transfer, direct deposit
or withdrawal of money, transfer through an automated
clearinghouse, transfer initiated electronically that delivers a
paper instrument, and transfer authorized in advance to recur at
substantially regular intervals.
(b) Except as provided by Subsection (d), a landlord shall
permit a tenant to pay rent or a security deposit by at least one
method of payment other than cash or an electronic funds transfer.
(c) A landlord shall accept a tenant's timely cash rental
payment unless a written lease between the landlord and tenant
requires the tenant to make rental payments by a method other than
cash, provided that the written lease complies with Subsection (b)
[check, money order, or other traceable or negotiable instrument].
(d) A landlord may require cash as the exclusive method of
payment of rent or a security deposit for a tenant whose immediately
preceding payment to the landlord was by a method of payment that
was refused or dishonored for insufficient funds or canceled by the
tenant. The landlord may not require cash as the exclusive form of
payment for more than three months after the date the tenant
tendered the refused, dishonored, or canceled payment to the
landlord.
(e) A tenant must pay to a landlord that requires cash
payment under Subsection (d) the amounts due to the landlord in cash
for the period determined by the landlord, subject to Subsection
(d), only if the landlord:
(1) provides written notice to the tenant that the
tenant's previous payment was refused, dishonored, or canceled; and
(2) attaches to the notice a copy or other evidence of
the refused, dishonored, or canceled payment.
(f) [(b)] A landlord who receives a cash rental or security
deposit payment shall:
(1) provide the tenant with a written receipt; and
(2) enter the payment date and amount in a record book
maintained by the landlord.
(g) A landlord may collect a service charge for processing a
payment of rent or a security deposit by electronic funds transfer
in an amount not to exceed the amount of the service charge
authorized under Section 501.176, Transportation Code, for
processing a payment for a certificate of title or registration for
a motor vehicle by electronic funds transfer. A landlord may not
collect a service charge for processing a payment of rent or a
security deposit by any method of payment other than electronic
funds transfer.
(h) A provision of a lease that purports to waive a right or
exempt a party from a liability under this section is void.
[(c)] A tenant or a governmental entity or civic association
acting on the tenant's behalf may file suit against a landlord to
enjoin a violation of Subsection (c) [this section]. A party who
prevails in a suit brought under this subsection may recover court
costs and reasonable attorney's fees from the other party. In
addition to court costs and reasonable attorney's fees, a tenant
who prevails under this subsection may recover from the landlord
the greater of one month's rent or $500 for each violation of this
section.
SECTION 2. Section 92.011, Property Code, as amended by
this Act, applies only to a lease entered into or renewed on or
after the effective date of this Act. A lease entered into or
renewed before the effective date of this Act is governed by the law
as it existed immediately before the effective date of this Act, and
that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2017.