| 1 | 1 | | 85R8204 BEE-F |
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| 2 | 2 | | By: Perry S.B. No. 921 |
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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 a late fee for failing to pay rent under a residential |
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| 8 | 8 | | lease. |
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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 92.019, Property Code, is amended by |
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| 11 | 11 | | amending Subsections (a) and (e) and adding Subsection (a-1) to |
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| 12 | 12 | | read as follows: |
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| 13 | 13 | | (a) A late fee under this section may include an initial fee |
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| 14 | 14 | | and a daily fee for each day the rent continues to remain unpaid. |
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| 15 | 15 | | (a-1) A landlord may not charge a tenant a late fee for |
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| 16 | 16 | | failing to pay rent unless: |
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| 17 | 17 | | (1) notice of the fee is included in a written lease; |
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| 18 | 18 | | (2) the initial fee does not exceed eight percent of |
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| 19 | 19 | | one month's rent and each subsequent daily fee does not exceed two |
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| 20 | 20 | | percent of one month's [is a reasonable estimate of uncertain |
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| 21 | 21 | | damages to the landlord that are incapable of precise calculation |
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| 22 | 22 | | and result from late payment of] rent; and |
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| 23 | 23 | | (3) the rent has remained unpaid one full day after the |
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| 24 | 24 | | date the rent was originally due. |
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| 25 | 25 | | (e) This section relates only to a fee, charge, or other sum |
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| 26 | 26 | | of money required to be paid under the lease if rent is not paid as |
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| 27 | 27 | | provided by Subsection (a-1)(3) [(a)(3)], and does not affect the |
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| 28 | 28 | | landlord's right to terminate the lease or take other action |
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| 29 | 29 | | permitted by the lease or other law. Payment of the fee, charge, or |
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| 30 | 30 | | other sum of money by a tenant does not waive the right or remedies |
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| 31 | 31 | | provided by this section. |
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| 32 | 32 | | SECTION 2. Section 92.019(b), Property Code, is repealed. |
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| 33 | 33 | | SECTION 3. Section 92.019, Property Code, as amended by |
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| 34 | 34 | | this Act, applies only to a lease entered into or renewed on or |
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| 35 | 35 | | after the effective date of this Act. A lease entered into or |
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| 36 | 36 | | renewed before the effective date of this Act is governed by the law |
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| 37 | 37 | | as it existed immediately before the effective date of this Act, and |
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| 38 | 38 | | that law is continued in effect for that purpose. |
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| 39 | 39 | | SECTION 4. This Act takes effect January 1, 2018. |
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