Texas 2019 - 86th Regular

Texas Senate Bill SB518 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R6239 PMO-F
2	2	By: Zaffirini S.B. No. 518
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to remedies after certain casualty losses to residential
8	8	rental premises.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 92.054, Property Code, is amended by
11	11	amending Subsections (b) and (c) and adding Subsections (b-1),
12	12	(b-2), (b-3), (b-4), (b-5), (d), (e), (f), and (g) to read as
13	13	follows:
14	14	(b) If after a casualty loss the rental premises are as a
15	15	practical matter totally unusable for residential purposes and if
16	16	the casualty loss is not caused by the negligence or fault of the
17	17	tenant, a member of the tenant's family, or a guest or invitee of
18	18	the tenant, either the landlord or the tenant may terminate the
19	19	lease by giving written notice to the other any time before repairs
20	20	are completed.
21	21	(b-1) A notice described by Subsection (b) must be provided:
22	22	(1) to a landlord:
23	23	(A) by hand delivery or mail to a forwarding
24	24	address that the landlord provides to the tenant by e-mail or
25	25	otherwise; or
26	26	(B) if a forwarding address has not been provided
27	27	as described by Paragraph (A):
28	28	(i) by hand delivery to the landlord or the
29	29	landlord's representative at another location; or
30	30	(ii) by mail to the place where the tenant's
31	31	rent is normally paid; or
32	32	(2) to a tenant:
33	33	(A) by hand delivery or mail to a forwarding
34	34	address that the tenant provides to the landlord by e-mail or
35	35	otherwise; or
36	36	(B) if a forwarding address has not been provided
37	37	as described by Paragraph (A):
38	38	(i) by hand delivery to the tenant at
39	39	another location; or
40	40	(ii) by mail to the tenant's rental
41	41	premises.
42	42	(b-2) A termination of a lease as authorized by Subsection
43	43	(b) may not take effect before the 15th day after the date the
44	44	notice is delivered. If more than one method under Subsection (b-1)
45	45	is used to provide notice, the method under which the notice was
46	46	delivered on the earliest date applies for purposes of this
47	47	subsection.
48	48	(b-3) A landlord may not charge rent for the rental premises
49	49	and rent for the rental premises may not accrue after the date the
50	50	premises became as a practical matter totally unusable for
51	51	residential purposes as a result of a casualty loss.
52	52	(b-4) Subject to Subsection (b-5) and notwithstanding that
53	53	the termination of the lease has not taken effect under Subsection
54	54	(b-2), if a notice to terminate [If] the lease is provided under
55	55	this section [terminated], the landlord shall pay to the tenant not
56	56	later than the fifth day after the date the notice is delivered:
57	57	(1) a refund of any prepaid rent;
58	58	(2) [is entitled only to] a pro rata refund of rent
59	59	from the date the rental premises became as a practical matter
60	60	totally unusable for residential purposes as a result of a casualty
61	61	loss; [tenant moves out] and
62	62	(3) [to] a full refund of any security deposit
63	63	[otherwise required by law].
64	64	(b-5) If a tenant has not provided the landlord a forwarding
65	65	address as described by Subsection (b-1)(2)(A), the period for
66	66	providing the refund amounts specified by Subsection (b-4) is
67	67	tolled until the tenant provides the landlord a written statement
68	68	by e-mail or otherwise of the tenant's forwarding address for the
69	69	purpose of refunding those amounts. A tenant that provides notice
70	70	under Subsection (b) may provide the written statement of the
71	71	tenant's forwarding address in that notice. A landlord that
72	72	provides notice under Subsection (b) must include a statement
73	73	informing the tenant of the requirement of this subsection.
74	74	(c) If after a casualty loss the rental premises are
75	75	partially unusable for residential purposes and if the casualty
76	76	loss is not caused by the negligence or fault of the tenant, a
77	77	member of the tenant's family, or a guest or invitee of the tenant,
78	78	the tenant is entitled to reduction in the rent for the month in
79	79	which the casualty loss occurs and any subsequent months in the
80	80	lease term in which the rental premises are partially unusable for
81	81	residential purposes. The tenant is entitled to determine the
82	82	amount of the reduction in the rent, provided that the tenant must
83	83	determine [in] an amount that is proportionate to the extent the
84	84	premises are unusable because of the casualty loss [, but only on
85	85	judgment of a county or district court]. A tenant entitled to a
86	86	reduction in rent may deduct and withhold from a rent payment the
87	87	amount determined by the tenant [A landlord and tenant may agree
88	88	otherwise in a written lease].
89	89	(d) It is a defense in a proceeding to recover unpaid rent
90	90	for a rental premises, including a proceeding to recover possession
91	91	of a rental premises for nonpayment of rent, that a rent payment was
92	92	reduced, deducted, and withheld in accordance with Subsection (c).
93	93	(e) If a tenant asserts a defense under Subsection (d), the
94	94	court shall determine the amount of the reduction in the rent that
95	95	is proportionate to the extent the premises are unusable because of
96	96	the casualty. If the tenant withheld an amount less than the amount
97	97	determined by the court, the court shall enter a judgment for the
98	98	tenant in an amount equal to the amount the tenant overpaid. If the
99	99	tenant withheld an amount greater than the amount determined by the
100	100	court, the court:
101	101	(1) may assess late fees in accordance with the lease
102	102	if the court finds that the tenant acted in bad faith in reducing or
103	103	withholding the rent payment;
104	104	(2) shall order the tenant to pay into the registry of
105	105	the court or, if the landlord consents in writing, directly to the
106	106	landlord:
107	107	(A) an amount equal to the amount the tenant
108	108	underpaid; and
109	109	(B) any late fees assessed under Subdivision (1);
110	110	(3) may not enter a final judgment in the proceeding
111	111	before the 10th business day after the date the court issued the
112	112	order of payment under Subdivision (2); and
113	113	(4) shall dismiss the proceeding against the tenant if
114	114	the tenant complies with the order of payment under Subdivision (2)
115	115	before the 10th business day after the date the court issued the
116	116	order of payment under Subdivision (2).
117	117	(f) It is a defense in a proceeding to recover possession of
118	118	a rental premises after the landlord terminates a lease under this
119	119	section that the premises are totally or partially usable for
120	120	residential purposes.
121	121	(g) A provision of a lease is void if the provision purports
122	122	to:
123	123	(1) waive a right or exempt a party from a liability or
124	124	duty under this section; or
125	125	(2) expand a party's right to unilaterally terminate a
126	126	lease under this section.
127	127	SECTION 2. The changes to law made by this Act apply only to
128	128	a lease entered into or renewed on or after the effective date of
129	129	this Act. A lease entered into or renewed before the effective date
130	130	of this Act is governed by the law as it existed immediately before
131	131	the effective date of this Act, and that law is continued in effect
132	132	for that purpose.
133	133	SECTION 3. This Act takes effect September 1, 2019.