| 1 | 1 | | 85R6599 BEE-D |
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| 2 | 2 | | By: West S.B. No. 1202 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the rehabilitation, demolition, or change in use of |
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| 8 | 8 | | residential property occupied by a tenant. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter A, Chapter 92, Property Code, is |
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| 11 | 11 | | amended by adding Section 92.026 to read as follows: |
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| 12 | 12 | | Sec. 92.026. REHABILITATION, DEMOLITION, OR CHANGE IN USE. |
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| 13 | 13 | | (a) Unless there is a casualty loss making a rental premises |
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| 14 | 14 | | unusable for residential purposes, a landlord may not refuse to |
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| 15 | 15 | | renew a tenant's lease to allow the landlord to rehabilitate, sell |
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| 16 | 16 | | or close for demolition and redevelopment, or change the use of the |
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| 17 | 17 | | rental unit or premises unless the landlord delivers a notice to the |
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| 18 | 18 | | tenant that: |
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| 19 | 19 | | (1) states the date on which the rehabilitation of the |
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| 20 | 20 | | rental unit or premises will begin, the rental unit or premises will |
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| 21 | 21 | | be offered for sale or closed, or the use of the rental unit or |
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| 22 | 22 | | premises will change, as applicable; |
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| 23 | 23 | | (2) informs the tenant that the tenant must relocate |
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| 24 | 24 | | on a specific date, which may not be earlier than the later of: |
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| 25 | 25 | | (A) the 120th day after the date the landlord |
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| 26 | 26 | | delivers the notice; |
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| 27 | 27 | | (B) the day after the last day of the current |
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| 28 | 28 | | school year, if any occupant of the rental unit is a school-age |
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| 29 | 29 | | child and school is in session; or |
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| 30 | 30 | | (C) the 180th day after the date the landlord |
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| 31 | 31 | | delivers the notice to the tenant, if the rental unit is a |
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| 32 | 32 | | single-family house or duplex; and |
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| 33 | 33 | | (3) if the rental unit is a single-family house or |
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| 34 | 34 | | duplex that the landlord intends to sell for demolition and |
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| 35 | 35 | | redevelopment, informs the tenant that the tenant has the right of |
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| 36 | 36 | | first refusal to purchase the property. |
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| 37 | 37 | | (b) A landlord may not: |
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| 38 | 38 | | (1) change the use of the rental unit or premises, |
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| 39 | 39 | | terminate or modify a lease, or require a tenant to relocate under |
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| 40 | 40 | | this section before the expiration of a lease term; |
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| 41 | 41 | | (2) require a tenant to relocate before the applicable |
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| 42 | 42 | | date described by Subsection (a)(2); |
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| 43 | 43 | | (3) refuse to offer the tenant the right of first |
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| 44 | 44 | | refusal to purchase the property, if the rental unit is a |
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| 45 | 45 | | single-family house or duplex that the landlord intends to sell for |
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| 46 | 46 | | demolition and redevelopment; or |
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| 47 | 47 | | (4) intentionally attempt to deter or deter a tenant |
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| 48 | 48 | | from renewing a lease to avoid application of this section by |
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| 49 | 49 | | raising the tenant's rent, depriving the tenant of the use of the |
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| 50 | 50 | | premises, or decreasing services to the tenant. |
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| 51 | 51 | | (c) If a tenant is required to relocate under this section, |
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| 52 | 52 | | the landlord shall promptly return the tenant's security deposit |
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| 53 | 53 | | if: |
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| 54 | 54 | | (1) all fixtures and appliances of the rental unit |
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| 55 | 55 | | remain in the rental unit; and |
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| 56 | 56 | | (2) all property of the tenant is removed from the |
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| 57 | 57 | | premises by the tenant on or before the date the tenant moves out of |
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| 58 | 58 | | the rental unit. |
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| 59 | 59 | | (d) A tenant may recover from a landlord who violates this |
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| 60 | 60 | | section: |
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| 61 | 61 | | (1) actual damages; |
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| 62 | 62 | | (2) injunctive relief; |
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| 63 | 63 | | (3) exemplary damages of $1,000 plus an amount equal |
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| 64 | 64 | | to one month's rent; and |
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| 65 | 65 | | (4) court costs and reasonable attorney's fees. |
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| 66 | 66 | | (e) Notwithstanding Section 41.004(a), Civil Practice and |
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| 67 | 67 | | Remedies Code, a court shall award exemplary damages under |
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| 68 | 68 | | Subsection (d)(3) to a prevailing tenant irrespective of whether |
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| 69 | 69 | | the tenant is awarded actual damages. |
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| 70 | 70 | | (f) To the extent that a local ordinance provides greater |
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| 71 | 71 | | protection to a tenant than is provided by this section, the local |
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| 72 | 72 | | ordinance prevails. |
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| 73 | 73 | | (g) A provision of a lease that purports to waive a right or |
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| 74 | 74 | | exempt a party from liability or a duty under this section is void. |
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| 75 | 75 | | SECTION 2. The changes in law made by this Act apply only to |
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| 76 | 76 | | a lease agreement entered into or renewed on or after the effective |
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| 77 | 77 | | date of this Act. A lease agreement entered into or renewed before |
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| 78 | 78 | | the effective date of this Act is governed by the law as it existed |
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| 79 | 79 | | immediately before the effective date of this Act, and the former |
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| 80 | 80 | | law is continued in effect for that purpose. |
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| 81 | 81 | | SECTION 3. This Act takes effect January 1, 2018. |
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