Texas 2019 - 86th Regular

Texas Senate Bill SB1414 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 1414
	1	+	By: Hancock S.B. No. 1414
	2	+	(Phelan)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5	7		relating to fees regarding a residential tenant's failure to timely
6	8		pay rent.
7	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	10		SECTION 1. Section 92.019, Property Code, is amended by
9	11		amending Subsections (a), (b), and (c) and adding Subsection (a-1)
10	12		to read as follows:
11	13		(a) A landlord may not collect from [charge] a tenant a late
12	14		fee for failing to pay any portion of the tenant's rent unless:
13	15		(1) notice of the fee is included in a written lease;
14	16		(2) the fee is [a] reasonable [estimate of uncertain
15	17		damages to the landlord that are incapable of precise calculation
16	18		and result from late payment of rent]; and
17	19		(3) any portion of the tenant's rent has remained
18	20		unpaid two [one] full days [day] after the date the rent was
19	21		originally due.
20	22		(a-1) For purposes of this section, a late fee is considered
21	23		reasonable if:
22	24		(1) the late fee is not more than:
23	25		(A) 12 percent of the amount of rent for the
24	26		rental period under the lease for a dwelling located in a structure
25	27		that contains not more than four dwelling units; or
26	28		(B) 10 percent of the amount of rent for the
27	29		rental period under the lease for a dwelling located in a structure
28	30		that contains more than four dwelling units; or
29	31		(2) the late fee is more than the applicable amount
30	32		under Subdivision (1), but not more than uncertain damages to the
31	33		landlord related to the late payment of rent, including direct or
32	34		indirect expenses, direct or indirect costs, or overhead associated
33	35		with the collection of late payment.
34	36		(b) A late fee under this section may include an initial fee
35	37		and a daily fee for each day any portion of the tenant's rent
36	38		continues to remain unpaid, and the combined fees are considered a
37	39		single late fee for purposes of this section.
38	40		(c) A landlord who violates this section is liable to the
39	41		tenant for an amount equal to the sum of $100, three times the
40	42		amount of the late fee collected [charged] in violation of this
41	43		section, and the tenant's reasonable attorney's fees.
42	44		SECTION 2. Subchapter A, Chapter 92, Property Code, is
43	45		amended by adding Section 92.0191 to read as follows:
44	46		Sec. 92.0191. STATEMENT OF LATE FEES. A tenant may request
45	47		that the landlord provide to the tenant a written statement of
46	48		whether the tenant owes a late fee to the landlord and, if so, the
47		-	amount of the late fee. ~~On request of~~ the ~~tenant, the landlord~~
48		-	~~shall provide the statement to~~ the tenant by any established means
49		-	~~regularly used for written~~ communication between the landlord and
50		-	~~the tenant. A landlord's~~ failure to respond does not affect the
51		-	~~tenant's liability for any~~ late fee owed to the landlord.
	49	+	amount of the late fee. The landlord may provide the statement to
	50	+	the tenant by any established means regularly used for written
	51	+	communication between the landlord and the tenant. A landlord's
	52	+	failure to respond does not affect the tenant's liability for any
	53	+	late fee owed to the landlord.
52	54		SECTION 3. Section 92.019, Property Code, as amended by
53	55		this Act, applies only to a late fee under a lease entered into or
54	56		renewed on or after the effective date of this Act. A late fee under
55	57		a lease entered into or renewed before the effective date of this
56	58		Act is governed by the law as it existed immediately before the
57	59		effective date of this Act, and that law is continued in effect for
58	60		that purpose.
59	61		SECTION 4. This Act takes effect September 1, 2019.
60		-	______________________________ ______________________________
61		-	President of the Senate Speaker of the House
62		-	I hereby certify that S.B. No. 1414 passed the Senate on
63		-	April 17, 2019, by the following vote: Yeas 26, Nays 5; and that
64		-	the Senate concurred in House amendment on May 23, 2019, by the
65		-	following vote: Yeas 27, Nays 4.
66		-	______________________________
67		-	Secretary of the Senate
68		-	I hereby certify that S.B. No. 1414 passed the House, with
69		-	amendment, on May 21, 2019, by the following vote: Yeas 94,
70		-	Nays 52, one present not voting.
71		-	______________________________
72		-	Chief Clerk of the House
73		-	Approved:
74		-	______________________________
75		-	Date
76		-	______________________________
77		-	Governor