| 1 | 1 | | 85R6691 PMO-F |
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| 2 | 2 | | By: West S.B. No. 1445 |
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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 methods of payment of rent and security deposits to |
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| 8 | 8 | | residential landlords and authorizing associated service charges. |
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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. Section 92.011, Property Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | Sec. 92.011. [CASH] RENTAL AND SECURITY DEPOSIT PAYMENTS; |
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| 13 | 13 | | SERVICE CHARGES. (a) In this section, "electronic funds transfer" |
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| 14 | 14 | | means any transfer of money, other than a transaction originated by |
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| 15 | 15 | | check, money order, or other traceable or negotiable instrument, |
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| 16 | 16 | | that is initiated through an electronic terminal, telephonic |
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| 17 | 17 | | instrument, computer, or magnetic tape and that orders, instructs, |
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| 18 | 18 | | or authorizes a financial institution to debit or credit an |
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| 19 | 19 | | account. The term includes a point-of-sale transfer, direct deposit |
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| 20 | 20 | | or withdrawal of money, transfer through an automated |
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| 21 | 21 | | clearinghouse, transfer initiated electronically that delivers a |
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| 22 | 22 | | paper instrument, and transfer authorized in advance to recur at |
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| 23 | 23 | | substantially regular intervals. |
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| 24 | 24 | | (b) Except as provided by Subsection (d), a landlord shall |
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| 25 | 25 | | permit a tenant to pay rent or a security deposit by at least one |
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| 26 | 26 | | method of payment other than cash or an electronic funds transfer. |
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| 27 | 27 | | (c) A landlord shall accept a tenant's timely cash rental |
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| 28 | 28 | | payment unless a written lease between the landlord and tenant |
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| 29 | 29 | | requires the tenant to make rental payments by a method other than |
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| 30 | 30 | | cash, provided that the written lease complies with Subsection (b) |
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| 31 | 31 | | [check, money order, or other traceable or negotiable instrument]. |
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| 32 | 32 | | (d) A landlord may require cash as the exclusive method of |
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| 33 | 33 | | payment of rent or a security deposit for a tenant whose immediately |
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| 34 | 34 | | preceding payment to the landlord was by a method of payment that |
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| 35 | 35 | | was refused or dishonored for insufficient funds or canceled by the |
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| 36 | 36 | | tenant. The landlord may not require cash as the exclusive form of |
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| 37 | 37 | | payment for more than three months after the date the tenant |
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| 38 | 38 | | tendered the refused, dishonored, or canceled payment to the |
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| 39 | 39 | | landlord. |
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| 40 | 40 | | (e) A tenant must pay to a landlord that requires cash |
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| 41 | 41 | | payment under Subsection (d) the amounts due to the landlord in cash |
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| 42 | 42 | | for the period determined by the landlord, subject to Subsection |
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| 43 | 43 | | (d), only if the landlord: |
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| 44 | 44 | | (1) provides written notice to the tenant that the |
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| 45 | 45 | | tenant's previous payment was refused, dishonored, or canceled; and |
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| 46 | 46 | | (2) attaches to the notice a copy or other evidence of |
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| 47 | 47 | | the refused, dishonored, or canceled payment. |
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| 48 | 48 | | (f) [(b)] A landlord who receives a cash rental or security |
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| 49 | 49 | | deposit payment shall: |
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| 50 | 50 | | (1) provide the tenant with a written receipt; and |
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| 51 | 51 | | (2) enter the payment date and amount in a record book |
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| 52 | 52 | | maintained by the landlord. |
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| 53 | 53 | | (g) A landlord may collect a service charge for processing a |
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| 54 | 54 | | payment of rent or a security deposit by electronic funds transfer |
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| 55 | 55 | | in an amount not to exceed the amount of the service charge |
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| 56 | 56 | | authorized under Section 501.176, Transportation Code, for |
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| 57 | 57 | | processing a payment for a certificate of title or registration for |
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| 58 | 58 | | a motor vehicle by electronic funds transfer. A landlord may not |
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| 59 | 59 | | collect a service charge for processing a payment of rent or a |
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| 60 | 60 | | security deposit by any method of payment other than electronic |
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| 61 | 61 | | funds transfer. |
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| 62 | 62 | | (h) A provision of a lease that purports to waive a right or |
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| 63 | 63 | | exempt a party from a liability under this section is void. |
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| 64 | 64 | | [(c)] A tenant or a governmental entity or civic association |
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| 65 | 65 | | acting on the tenant's behalf may file suit against a landlord to |
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| 66 | 66 | | enjoin a violation of Subsection (c) [this section]. A party who |
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| 67 | 67 | | prevails in a suit brought under this subsection may recover court |
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| 68 | 68 | | costs and reasonable attorney's fees from the other party. In |
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| 69 | 69 | | addition to court costs and reasonable attorney's fees, a tenant |
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| 70 | 70 | | who prevails under this subsection may recover from the landlord |
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| 71 | 71 | | the greater of one month's rent or $500 for each violation of this |
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| 72 | 72 | | section. |
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| 73 | 73 | | SECTION 2. Section 92.011, Property Code, as amended by |
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| 74 | 74 | | this Act, applies only to a lease entered into or renewed on or |
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| 75 | 75 | | after the effective date of this Act. A lease entered into or |
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| 76 | 76 | | renewed before the effective date of this Act is governed by the law |
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| 77 | 77 | | as it existed immediately before the effective date of this Act, and |
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| 78 | 78 | | that law is continued in effect for that purpose. |
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| 79 | 79 | | SECTION 3. This Act takes effect September 1, 2017. |
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