86R22248 PMO-F
By: Farrar H.B. No. 3564
Substitute the following for H.B. No. 3564:
By: Collier C.S.H.B. No. 3564
A BILL TO BE ENTITLED
AN ACT
relating to remedies after certain casualty losses to residential
rental premises.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 92.054, Property Code, is amended by
amending Subsections (b) and (c) and adding Subsections (b-1),
(b-2), (b-3), (b-4), (b-5), (d), (e), (f), (g), (h), and (i) to read
as follows:
(b) If after a casualty loss the rental premises are as a
practical matter totally unusable for residential purposes and if
the casualty loss is not caused by the negligence or fault of the
tenant, a member of the tenant's family, or a guest or invitee of
the tenant, either the landlord or the tenant may terminate the
lease by giving written notice to the other any time before repairs
are completed.
(b-1) A notice described by Subsection (b) must be sent:
(1) to a landlord:
(A) by hand delivery to the landlord or the
landlord's representative;
(B) on the same day by:
(i) e-mail to an e-mail address that the
tenant and the landlord regularly used to communicate about the
rental premises; and
(ii) the method described by Paragraph (C);
(C) by mail to:
(i) the forwarding address that the
landlord provided to the tenant by e-mail or otherwise; or
(ii) if the landlord did not provide a
forwarding address to the tenant, the place where the tenant
normally pays rent; or
(D) by any other method, manner, or means of
delivery to which the landlord and tenant agree after the casualty
loss; or
(2) to a tenant:
(A) by hand delivery;
(B) on the same day by:
(i) e-mail to an e-mail address that the
tenant and the landlord regularly used to communicate about the
rental premises; and
(ii) the method described by Paragraph (C);
(C) by mail to:
(i) the forwarding address that the tenant
provided to the landlord by e-mail or otherwise; or
(ii) if the tenant did not provide a
forwarding address to the landlord, the tenant's rental premises;
or
(D) by any other method, manner, or means of
delivery to which the landlord and tenant agree after the casualty
loss.
(b-2) A termination of a lease as authorized by Subsection
(b) may not take effect before the seventh day after the date the
notice is delivered. If more than one method under Subsection (b-1)
is used to provide notice, the method under which the notice was
delivered on the earliest date applies for purposes of this
subsection.
(b-3) A landlord may not charge rent for the rental premises
and rent for the rental premises may not accrue after the date:
(1) the lease is terminated under this section; and
(2) the tenant has vacated the rental premises.
(b-4) Subject to Subsection (b-5), the landlord, not later
than the 30th day after the date [If] the lease is terminated under
this section and the tenant has vacated the rental premises, shall
refund to the tenant any prepaid rent and prorated [is entitled only
to a pro rata refund of] rent and all deposits, less lawful
deductions. A landlord may not include in the lawful deductions any
damages incurred due to the casualty loss [from the date the tenant
moves out and to a refund of any security deposit otherwise required
by law].
(b-5) If a landlord is unable to send to the tenant a refund
under Subsection (b-4) because the tenant has not provided a
forwarding address to the landlord, the 30-day period under
Subsection (b-4) is tolled until the date the tenant provides a
forwarding address to the landlord.
(c) If after a casualty loss the rental premises are
partially unusable for residential purposes and if the casualty
loss is not caused by the negligence or fault of the tenant, a
member of the tenant's family, or a guest or invitee of the tenant,
the tenant is entitled to reduction in the rent in an amount that is
proportionate to the extent the premises are unusable because of
the casualty loss for the month in which the casualty loss occurs
and any subsequent months in the lease term in which the rental
premises are partially unusable for residential purposes[, but only
on judgment of a county or district court. A landlord and tenant may
agree otherwise in a written lease].
(d) A tenant entitled to a reduction in rent under
Subsection (c) must give written notice to the individual to whom or
the entity to which the tenant normally pays rent. The notice must:
(1) identify the portion of the rental premises that
is partially unusable for residential purposes;
(2) state the proposed amount of reduction in rent
that the tenant believes is appropriate; and
(3) state that the tenant intends to file suit against
the landlord if the landlord does not agree to the proposed
reduction in rent on or before the 10th day after the date the
landlord receives the notice under this subsection.
(e) Not later than the 10th day after the date the landlord
receives the notice under Subsection (d), the landlord must provide
to the tenant a written response agreeing or objecting to the
tenant's right to a reduction in rent due to casualty loss and the
proposed amount. A landlord's failure to timely provide a written
response under this subsection is considered an agreement by the
landlord to the tenant's right to a reduction in rent and the
proposed amount of the reduction and the tenant may withhold the
proposed amount from a rent payment.
(f) If the landlord and tenant are unable to agree on
whether the tenant is entitled to a reduction in rent or on the
amount of the proposed reduction, either party may file suit in
justice, county, or district court. The court shall determine
whether the tenant is entitled to a reduction in rent and, if so,
the amount of the reduction that is proportionate to the extent the
premises are unusable due to the casualty loss.
(g) If a suit is filed under Subsection (f), the tenant is
liable for rent due under the lease until the date the court enters
a final judgment in the action or the parties reach an agreement to
settle the dispute.
(h) If a suit is filed in a justice court under Subsection
(f), the justice court shall conduct a hearing on the matter not
earlier than the sixth day after the date of service of citation and
not later than the 10th day after that date.
(i) It is a defense in a proceeding to recover possession of
a rental premises after the landlord terminates a lease under
Subsection (b) that the premises are usable for residential
purposes.
SECTION 2. The changes to law made by this Act apply 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, 2019.