By: Hancock S.B. No. 1414
(In the Senate - Filed March 1, 2019; March 14, 2019, read
first time and referred to Committee on Business & Commerce;
April 10, 2019, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 8, Nays 1; April 10, 2019,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 1414 By: Hancock
A BILL TO BE ENTITLED
AN ACT
relating to fees regarding a residential tenant's failure to timely
pay rent.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 92.019, Property Code, is amended by
amending Subsections (a), (b), and (c) and adding Subsections (a-1)
and (a-2) to read as follows:
(a) A landlord may not collect from [charge] a tenant a late
fee for failing to pay any portion of the tenant's rent unless:
(1) notice of the fee is included in a written lease;
(2) the fee is [a] reasonable [estimate of uncertain
damages to the landlord that are incapable of precise calculation
and result from late payment of rent]; and
(3) any portion of the tenant's rent has remained
unpaid two [one] full days [day] after the date the rent was
originally due.
(a-1) A tenant may request that the landlord provide to the
tenant a written statement of whether the tenant owes a late fee to
the landlord and, if so, the amount of the late fee. The landlord
may provide the statement to the tenant by any established means
regularly used for written communication between the landlord and
the tenant. A landlord's failure to respond does not affect the
tenant's liability for any late fee owed to the landlord.
(a-2) For purposes of this section, a late fee is considered
reasonable if the late fee does not exceed 12 percent of the amount
of rent for the rental period under the lease. A late fee that
exceeds 12 percent of the amount of rent for the rental period under
the lease is considered reasonable if the late fee does not exceed
uncertain damages to the landlord related to late payment of rent,
including direct or indirect expenses, direct or indirect costs, or
overhead associated with the collection of late payment.
(b) A late fee under this section may include an initial fee
and a daily fee for each day any portion of the tenant's rent
continues to remain unpaid, and the combined fees are considered a
single late fee for purposes of this section.
(c) A landlord who violates this section is liable to the
tenant for an amount equal to the sum of $100, three times the
amount of the late fee collected [charged] in violation of this
section, and the tenant's reasonable attorney's fees.
SECTION 2. Section 92.019, Property Code, as amended by
this Act, applies only to a late fee under a lease entered into or
renewed on or after the effective date of this Act. A late fee under
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.
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