Texas 2021 - 87th Regular

Texas House Bill HB4039 Compare Versions

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

Old	New	Differences
1	1	87R3860 DRS-F
2	2	By: Walle H.B. No. 4039
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to certain rights and duties of residential tenants and
8	8	landlords; imposing civil penalties.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. The heading to Section 24.005, Property Code, is
11	11	amended to read as follows:
12	12	Sec. 24.005. NOTICE TO CURE DEFAULT FOR NONPAYMENT OF RENT;
13	13	NOTICE TO VACATE PRIOR TO FILING EVICTION SUIT.
14	14	SECTION 2. Section 24.005, Property Code, is amended by
15	15	amending Subsection (a) and adding Subsections (a-1), (a-2), and
16	16	(a-3) to read as follows:
17	17	(a) Except as provided by Subsections (a-1) and (a-2), if
18	18	[If] the occupant is a tenant under a written lease or oral rental
19	19	agreement, the landlord must give a tenant who defaults or holds
20	20	over beyond the end of the rental term or renewal period at least
21	21	three days' written notice to vacate the premises before the
22	22	landlord files a forcible detainer suit, unless the parties have
23	23	contracted for a shorter or longer notice period in a written lease
24	24	or agreement. A landlord who files a forcible detainer suit on
25	25	grounds that the tenant is holding over beyond the end of the rental
26	26	term or renewal period must also comply with the tenancy
27	27	termination requirements of Section 91.001.
28	28	(a-1) The landlord must give a residential tenant who
29	29	defaults for nonpayment of rent 10 days' written notice and an
30	30	opportunity to cure the default by paying any delinquent rent
31	31	before issuing the notice to vacate under Subsection (a-2). The
32	32	written notice must include, in all capital letters in an easily
33	33	readable font and type size, the words "YOU ARE IN DEFAULT OF THE
34	34	LEASE FOR NONPAYMENT OF RENT. YOU HAVE 10 DAYS AFTER THE DATE THIS
35	35	NOTICE WAS DELIVERED TO PAY THE RENT BEFORE A NOTICE TO VACATE MAY
36	36	BE ISSUED. CALL THE STATE BAR OF TEXAS TOLL-FREE AT 1-877-9TEXBAR
37	37	IF YOU NEED HELP LOCATING AN ATTORNEY. IF YOU CANNOT AFFORD TO HIRE
38	38	AN ATTORNEY, YOU MAY BE ELIGIBLE FOR FREE OR LOW-COST LEGAL
39	39	ASSISTANCE."
40	40	(a-2) After a landlord gives a tenant an opportunity to cure
41	41	under Subsection (a-1), the landlord must give the tenant at least
42	42	14 days' written notice to vacate the premises before the landlord
43	43	files a forcible detainer suit. The notice to vacate must state the
44	44	reason for the notice and must include, in all capital letters in an
45	45	easily readable font and type size, the words "THIS IS NOT AN
46	46	EVICTION ORDER. THIS IS A DEMAND FOR POSSESSION OF THE PROPERTY.
47	47	AN EVICTION CASE MAY BE FILED AGAINST YOU 14 DAYS AFTER THE DATE
48	48	THIS NOTICE WAS DELIVERED. CALL THE STATE BAR OF TEXAS TOLL-FREE AT
49	49	1-877-9TEXBAR IF YOU NEED HELP LOCATING AN ATTORNEY. IF YOU CANNOT
50	50	AFFORD TO HIRE AN ATTORNEY, YOU MAY BE ELIGIBLE FOR FREE OR LOW-COST
51	51	LEGAL ASSISTANCE."
52	52	(a-3) If applicable, the written notice to vacate must
53	53	inform a residential tenant of the tenant's right to cure the
54	54	default for nonpayment of rent under Section 24.00605.
55	55	SECTION 3. Chapter 24, Property Code, is amended by adding
56	56	Sections 24.00605, 24.012, 24.013, and 24.014 to read as follows:
57	57	Sec. 24.00605. RESIDENTIAL TENANT'S RIGHT TO CURE BEFORE
58	58	WRIT OF POSSESSION ISSUED. (a) Except as provided by Subsection
59	59	(b), a residential tenant who is in default for nonpayment of rent
60	60	under a written or oral lease may cure the default and reinstate the
61	61	lease by paying all rent, court costs, and attorney's fees not later
62	62	than the date that a writ of possession is executed.
63	63	(b) Unless the lease provides otherwise, a tenant may not
64	64	cure a default if the tenant cured a default under this section in
65	65	the 12-month period preceding the date the writ of possession is
66	66	executed.
67	67	Sec. 24.012. ACCESS TO EVICTION CASE INFORMATION. (a) In
68	68	this section:
69	69	(1) "Eviction case" means a lawsuit brought under this
70	70	chapter to recover possession of leased or rented residential real
71	71	property from a tenant.
72	72	(2) "Eviction case information" means all records and
73	73	files related to a filing of an eviction case, including petitions
74	74	and dispositions.
75	75	(b) This section applies to an eviction case in which an
76	76	order granting limited dissemination of eviction case information
77	77	has not been entered under Section 24.013.
78	78	(c) The court clerk shall allow access to eviction case
79	79	information only to:
80	80	(1) a party to the action, including a party's
81	81	attorney;
82	82	(2) a person who provides the clerk with:
83	83	(A) the names of at least one plaintiff and one
84	84	defendant; and
85	85	(B) the address of the premises, including the
86	86	apartment or unit number, if any;
87	87	(3) a resident of the premises who:
88	88	(A) provides the clerk with the name of one of the
89	89	parties or the case number; and
90	90	(B) shows proof of residency;
91	91	(4) a person in accordance with a court order, which
92	92	may be granted ex parte, issued on a showing of good cause;
93	93	(5) a person in accordance with a court order issued at
94	94	the time the judgment in the case is entered, if the judgment is
95	95	entered:
96	96	(A) for the plaintiff after a trial; and
97	97	(B) after the 60th day after the date the
98	98	complaint was filed; or
99	99	(6) any other person after the 60th day after the date
100	100	the complaint was filed:
101	101	(A) if the plaintiff prevailed in the action
102	102	before the 60th day after the date the complaint was filed; or
103	103	(B) if the case involved residential real
104	104	property purchased at a foreclosure sale and judgment against all
105	105	defendants was entered for the plaintiff after a trial.
106	106	(d) If a default or default judgment is set aside after the
107	107	60th day after the date the complaint was filed, this section
108	108	applies as if the complaint had been filed on the date the default
109	109	or default judgment is set aside.
110	110	(e) This section may not be construed to prohibit the court
111	111	from issuing an order that bars access to eviction case information
112	112	if stipulated by the parties to the case.
113	113	(f) For purposes of this section, good cause for access to
114	114	eviction case information includes the gathering of:
115	115	(1) newsworthy facts by a journalist as defined by
116	116	Article 38.11, Code of Criminal Procedure; and
117	117	(2) evidence by a party to the eviction case solely for
118	118	the purpose of making a request for judicial notice.
119	119	(g) After the filing of an eviction case, the court clerk
120	120	shall mail notice to each defendant named in the case. The notice
121	121	must be mailed to the address provided in the complaint. The notice
122	122	must contain a statement that an eviction case has been filed
123	123	against the defendant and that access to the eviction case
124	124	information will be delayed for 60 days except to a party, an
125	125	attorney for one of the parties, a person who has good cause for
126	126	access as determined by a court, or any other person who provides to
127	127	the clerk:
128	128	(1) the names of at least one plaintiff and one
129	129	defendant in the case and provides to the clerk the address,
130	130	including any applicable apartment or unit number, of the subject
131	131	premises; or
132	132	(2) the name of one of the parties in the case or the
133	133	case number and can establish through proper identification that
134	134	the person resides at the address identified in the case.
135	135	(h) The notice must also contain:
136	136	(1) the name and telephone number of the county bar
137	137	association for the county in which the case is filed;
138	138	(2) the name and telephone number of any entity that
139	139	requests inclusion on the notice and demonstrates to the
140	140	satisfaction of the court that the entity has been certified by the
141	141	State Bar of Texas as a lawyer referral service and maintains a
142	142	panel of attorneys qualified in the practice of landlord-tenant law
143	143	under the minimum standards for a lawyer referral service
144	144	established by the State Bar of Texas and Chapter 952, Occupations
145	145	Code;
146	146	(3) the following statement: "The State Bar of Texas
147	147	certifies lawyer referral services in Texas and publishes a list of
148	148	certified lawyer referral services. To locate a lawyer referral
149	149	service in your area, go to the State Bar's Internet website at
150	150	www.texasbar.com or call 1-877-9TEXBAR.";
151	151	(4) the names and telephone numbers of offices that
152	152	provide legal services at low or no cost to low-income persons in
153	153	the county in which the action is filed; and
154	154	(5) a statement that a person receiving the notice may
155	155	call the telephone numbers described in the notice for legal advice
156	156	regarding the case.
157	157	(i) The court clerk shall mail a notice required under this
158	158	section not earlier than the 24th hour and not later than the 48th
159	159	hour after the time the eviction case is filed, excluding weekends
160	160	and holidays.
161	161	(j) The court clerk shall mail separately to the subject
162	162	premises one copy of the notice addressed to "all occupants." The
163	163	notice does not constitute service of the summons and complaint.
164	164	Sec. 24.013. LIMITED DISSEMINATION OF EVICTION CASE
165	165	INFORMATION. (a) In this section, "eviction case" and "eviction
166	166	case information" have the meanings assigned by Section 24.012.
167	167	(b) Concurrently with a final judgment or dismissal in an
168	168	eviction case or on petition of a defendant in an eviction case
169	169	after a final judgment or dismissal in the case, a court shall enter
170	170	an order of limited dissemination of the eviction case information
171	171	pertaining to the defendant if:
172	172	(1) the judgment is or was entered in favor of the
173	173	defendant;
174	174	(2) the eviction case is or was dismissed without any
175	175	relief granted to the plaintiff;
176	176	(3) the defendant is or was a tenant not otherwise in
177	177	default and the eviction case was brought by the landlord's
178	178	successor in interest following foreclosure; or
179	179	(4) at least three years have elapsed from the date of
180	180	the final judgment in the eviction case.
181	181	(c) Concurrently with a final judgment or dismissal in an
182	182	eviction case or on petition of a defendant in an eviction case
183	183	after a final judgment or dismissal in the case, a court may order
184	184	the limited dissemination of eviction case information pertaining
185	185	to the defendant if the court finds that:
186	186	(1) the limited dissemination of the eviction case
187	187	information is in the interest of justice; and
188	188	(2) the interest of justice is not outweighed by the
189	189	public's interest in knowing the eviction case information.
190	190	(d) If an order is entered granting limited dissemination of
191	191	eviction case information pertaining to a defendant under this
192	192	section:
193	193	(1) all courts or court clerks shall delete or redact
194	194	all index references to the name of the defendant that relate to the
195	195	eviction case information from the public records; and
196	196	(2) except to the extent permitted by federal law, a
197	197	credit reporting agency, a person who regularly collects and
198	198	disseminates eviction case information, or a person who sells
199	199	eviction case information may not:
200	200	(A) disclose the existence of the eviction case;
201	201	or
202	202	(B) use the eviction case information as a factor
203	203	in determining a score or recommendation in a tenant screening
204	204	report regarding the defendant.
205	205	(e) A person who knowingly violates Subsection (d) is liable
206	206	to an injured party for:
207	207	(1) actual damages;
208	208	(2) exemplary damages of $1,000; and
209	209	(3) reasonable attorney's fees and court costs.
210	210	(f) Notwithstanding Section 41.004(a), Civil Practice and
211	211	Remedies Code, a court shall award exemplary damages under
212	212	Subsection (e)(2) to the injured party irrespective of whether the
213	213	party is awarded actual damages.
214	214	Sec. 24.014. EVICTION CASE INFORMATION RELATED TO COVID-19
215	215	PANDEMIC. (a) In this section, "eviction case" has the meaning
216	216	assigned by Section 24.012.
217	217	(b) Except as provided by Subsection (d), a landlord may not
218	218	refuse to rent, negotiate for the rental of, or in any other manner
219	219	make unavailable or deny a dwelling to a person because of an
220	220	eviction case brought against the person during a state of disaster
221	221	declared by the governor under Section 418.014, Government Code,
222	222	related to the coronavirus disease (COVID-19) pandemic or before
223	223	the 180th day after the date of termination of the state of
224	224	disaster.
225	225	(c) A court may find that limited dissemination of
226	226	information related to an eviction case brought against a person
227	227	during the period described by Subsection (b) is in the interest of
228	228	justice for purposes of Section 24.013.
229	229	(d) This section does not apply to an eviction case based on
230	230	actions of the tenant that create an imminent threat to the health
231	231	or safety of the landlord, a member of the landlord's or tenant's
232	232	household, other tenants, or neighbors.
233	233	SECTION 4. Section 92.0081(b), Property Code, is amended to
234	234	read as follows:
235	235	(b) A landlord may not intentionally prevent a tenant from
236	236	entering the leased premises except by judicial process unless the
237	237	exclusion results from:
238	238	(1) bona fide repairs, construction, or an emergency;
239	239	or
240	240	(2) removing the contents of premises abandoned by a
241	241	tenant[; or
242	242	[(3) changing the door locks on the door to the
243	243	tenant's individual unit of a tenant who is delinquent in paying at
244	244	least part of the rent].
245	245	SECTION 5. The heading to Section 92.011, Property Code, is
246	246	amended to read as follows:
247	247	Sec. 92.011. [CASH] RENTAL PAYMENTS.
248	248	SECTION 6. Section 92.011, Property Code, is amended by
249	249	adding Subsection (b-1) to read as follows:
250	250	(b-1) A landlord shall apply any payment received from a
251	251	tenant to unpaid rent before applying the payment to a fee, charge,
252	252	or other sum of money owed by the tenant that is not rent. This
253	253	subsection applies without regard to the method of payment.
254	254	SECTION 7. Subchapter A, Chapter 92, Property Code, is
255	255	amended by adding Section 92.0111 to read as follows:
256	256	Sec. 92.0111. NON-UTILITY MANDATORY SERVICE FEES
257	257	PROHIBITED. (a) In this section, "mandatory service" means any
258	258	service other than water, gas, or electric utility services
259	259	provided to a tenant under a lease and for which the lease does not
260	260	allow the tenant to voluntarily opt out of receiving the service.
261	261	(b) A landlord shall include any charges for a mandatory
262	262	service in the rent and may not charge a tenant a separate fee for a
263	263	mandatory service.
264	264	SECTION 8. Subchapter A, Chapter 92, Property Code, is
265	265	amended by adding Section 92.0133 to read as follows:
266	266	Sec. 92.0133. NOTICE FOR DWELLING LOCATED IN FLOODPLAIN.
267	267	(a) In this section:
268	268	(1) "100-year floodplain" means any area of land
269	269	designated as a flood hazard area with a one percent or greater
270	270	chance of flooding each year by the Federal Emergency Management
271	271	Agency under the National Flood Insurance Act of 1968 (42 U.S.C.
272	272	Section 4001 et seq.).
273	273	(2) "Flooding" means a general or temporary condition
274	274	of partial or complete inundation of a dwelling caused by:
275	275	(A) the overflow of inland or tidal waters;
276	276	(B) the unusual and rapid accumulation of runoff
277	277	or surface waters from any established water source such as a river,
278	278	stream, or drainage ditch; or
279	279	(C) a ponding of water at or near the place where
280	280	heavy or excessive rain fell.
281	281	(b) A landlord shall provide to a tenant a written notice
282	282	substantially equivalent to the following:
283	283	"(Landlord) ( ) is or ( ) is not aware that the dwelling you
284	284	are renting is located in a 100-year floodplain. If neither box is
285	285	checked, you should assume the dwelling is in a 100-year
286	286	floodplain. Even if the dwelling is not in a 100-year floodplain,
287	287	the dwelling may still be susceptible to flooding. The Federal
288	288	Emergency Management Agency (FEMA) maintains a flood map on its
289	289	website that is searchable by address, at no cost, to determine if a
290	290	dwelling is located in a flood hazard area. Most tenant insurance
291	291	policies do not cover damages or loss incurred in a flood. You
292	292	should seek insurance coverage that would cover losses caused by a
293	293	flood."
294	294	(c) Notwithstanding Subsection (b), a landlord is not
295	295	required to disclose on the notice that the landlord is aware that a
296	296	dwelling is located in a 100-year floodplain if the elevation of the
297	297	dwelling is raised above the 100-year floodplain flood levels in
298	298	accordance with federal regulations.
299	299	(d) If a landlord knows that flooding has damaged any
300	300	portion of a dwelling at least once during the five-year period
301	301	immediately preceding the effective date of the lease, the landlord
302	302	shall provide a written notice to a tenant that is substantially
303	303	equivalent to the following:
304	304	"(Landlord) ( ) is or ( ) is not aware that the dwelling you
305	305	are renting has flooded at least once within the last five years."
306	306	(e) The notices required by Subsections (b) and (d) must be
307	307	included in a separate written document given to the tenant before
308	308	execution of the lease.
309	309	(f) If a landlord violates this section and a tenant suffers
310	310	a substantial loss or damage to the tenant's personal property as a
311	311	result of flooding, the tenant may terminate the lease by giving a
312	312	written notice of termination to the landlord not later than the
313	313	30th day after the date the loss or damage occurred. Termination of
314	314	a lease under this subsection is effective when the tenant
315	315	surrenders possession of the dwelling.
316	316	(g) Not later than the 30th day after the effective date of
317	317	the termination of a lease under Subsection (f), the landlord shall
318	318	refund to the tenant all rent or other amounts paid in advance under
319	319	the lease for any period after the effective date of the termination
320	320	of the lease.
321	321	(h) This section does not affect a tenant's liability for
322	322	delinquent, unpaid rent or other sums owed to the landlord before
323	323	the date the lease was terminated by the tenant under this section.
324	324	SECTION 9. Section 92.019, Property Code, is amended by
325	325	amending Subsection (a-1) and adding Subsection (b-1) to read as
326	326	follows:
327	327	(a-1) For purposes of this section, a late fee is considered
328	328	reasonable if[:
329	329	[(1)] the late fee is not more than the lesser of [:
330	330	[(A) 12 percent of the amount of rent for the
331	331	rental period under the lease for a dwelling located in a structure
332	332	that contains not more than four dwelling units; or
333	333	[(B)] 10 percent of the amount of rent for the
334	334	rental period under the lease or $75 [for a dwelling located in a
335	335	structure that contains more than four dwelling units; or
336	336	[(2) the late fee is more than the applicable amount
337	337	under Subdivision (1), but not more than uncertain damages to the
338	338	landlord related to the late payment of rent, including direct or
339	339	indirect expenses, direct or indirect costs, or overhead associated
340	340	with the collection of late payment].
341	341	(b-1) A landlord may not charge a tenant a late fee on an
342	342	unpaid amount that does not include unpaid rent and consists
343	343	entirely of a fee, charge, or other sum of money owed by the tenant
344	344	that is not rent, including a late fee charged under Subsection (a).
345	345	SECTION 10. Subchapter A, Chapter 92, Property Code, is
346	346	amended by adding Section 92.022 to read as follows:
347	347	Sec. 92.022. CERTAIN CRIMINAL MATTERS NOT DEFAULT.
348	348	Notwithstanding any terms of a lease to the contrary, the arrest,
349	349	charge, detention, or deferred adjudication or pretrial diversion
350	350	of a tenant for any crime does not constitute a default under the
351	351	lease by the tenant.
352	352	SECTION 11. Subchapter A, Chapter 92, Property Code, is
353	353	amended by adding Section 92.027 to read as follows:
354	354	Sec. 92.027. NOTICE REGARDING ENTRY TO DWELLING BY
355	355	LANDLORD. (a) Except as provided by Subsection (c), a landlord may
356	356	enter a dwelling only if the landlord has delivered to the tenant,
357	357	at least 48 hours before the entry, a written notice containing the
358	358	date and time the landlord will enter the tenant's dwelling and the
359	359	purpose for the entry.
360	360	(b) After giving notice as required by Subsection (a), a
361	361	landlord may enter a dwelling only:
362	362	(1) on the date and at the time contained in the
363	363	notice; and
364	364	(2) for the purpose stated in the notice.
365	365	(c) In the case of an emergency, a landlord may enter a
366	366	dwelling as necessary without providing the notice required by
367	367	Subsection (a).
368	368	(d) A provision of a lease that purports to waive a right or
369	369	to exempt a party from a liability or duty under this section is
370	370	void.
371	371	SECTION 12. Section 92.052, Property Code, is amended by
372	372	adding Subsections (a-1), (a-2), and (a-3) to read as follows:
373	373	(a-1) Before a lease is executed, a landlord or a landlord's
374	374	agent shall:
375	375	(1) inspect the premises;
376	376	(2) make a diligent effort to complete all repairs
377	377	necessary to make the premises habitable, including ensuring that
378	378	the premises:
379	379	(A) have a device to supply hot water of a minimum
380	380	temperature of 120 degrees Fahrenheit that is in good operating
381	381	condition; and
382	382	(B) comply with the requirements of applicable
383	383	building or housing codes material to the physical health and
384	384	safety of the ordinary tenant; and
385	385	(3) affirm in the lease that the landlord has complied
386	386	with this subsection.
387	387	(a-2) If, not later than the seventh day after the lease
388	388	start date and except as provided by Subsection (a-3), a tenant
389	389	discovers that the premises do not meet the requirements of
390	390	Subsection (a-1)(2)(A) or (B), the tenant, after notifying the
391	391	landlord by giving that notice to the person to whom or to the place
392	392	where the tenant's rent is normally paid, may:
393	393	(1) terminate the lease;
394	394	(2) withhold rent payments or have the condition
395	395	repaired or remedied according to Section 92.0561;
396	396	(3) deduct from the tenant's rent, without necessity
397	397	of judicial action, the cost of the repair or remedy according to
398	398	Section 92.0561; and
399	399	(4) obtain judicial remedies according to Section
400	400	92.0563.
401	401	(a-3) A tenant who elects to terminate the lease under
402	402	Subsection (a-2) is:
403	403	(1) entitled to a pro rata refund of rent from the date
404	404	of termination or the date the tenant moves out, whichever is later;
405	405	(2) entitled to deduct the tenant's security deposit
406	406	from the tenant's rent, without necessity of judicial action, or to
407	407	obtain a refund of the tenant's security deposit according to law;
408	408	and
409	409	(3) not entitled to the other repair and deduct
410	410	remedies under Section 92.0561 or the judicial remedies under
411	411	Sections 92.0563(a)(1) and (2).
412	412	SECTION 13. Section 92.054, Property Code, is amended by
413	413	amending Subsections (b) and (c) and adding Subsections (b-1),
414	414	(b-2), (b-3), (b-4), (b-5), (d), (e), (f), and (g) to read as
415	415	follows:
416	416	(b) If after a casualty loss the rental premises are as a
417	417	practical matter totally unusable for residential purposes and if
418	418	the casualty loss is not caused by the negligence or fault of the
419	419	tenant, a member of the tenant's family, or a guest or invitee of
420	420	the tenant, either the landlord or the tenant may terminate the
421	421	lease by giving written notice to the other any time before repairs
422	422	are completed.
423	423	(b-1) A notice described by Subsection (b) must be provided:
424	424	(1) to a landlord:
425	425	(A) by hand delivery or mail to a forwarding
426	426	address that the landlord provides to the tenant by e-mail or
427	427	otherwise; or
428	428	(B) if a forwarding address has not been provided
429	429	as described by Paragraph (A):
430	430	(i) by hand delivery to the landlord or the
431	431	landlord's representative at another location; or
432	432	(ii) by mail to the place where the tenant's
433	433	rent is normally paid; or
434	434	(2) to a tenant:
435	435	(A) by hand delivery or mail to a forwarding
436	436	address that the tenant provides to the landlord by e-mail or
437	437	otherwise; or
438	438	(B) if a forwarding address has not been provided
439	439	as described by Paragraph (A):
440	440	(i) by hand delivery to the tenant at
441	441	another location; or
442	442	(ii) by mail to the tenant's rental
443	443	premises.
444	444	(b-2) A termination of a lease as authorized by Subsection
445	445	(b) may not take effect before the 15th day after the date the
446	446	notice is delivered. If more than one method under Subsection (b-1)
447	447	is used to provide notice, the method under which the notice was
448	448	delivered on the earliest date applies for purposes of this
449	449	subsection.
450	450	(b-3) A landlord may not charge rent for the rental premises
451	451	and rent for the rental premises may not accrue after the date the
452	452	premises became as a practical matter totally unusable for
453	453	residential purposes as a result of a casualty loss.
454	454	(b-4) Subject to Subsection (b-5) and notwithstanding that
455	455	the termination of the lease has not taken effect under Subsection
456	456	(b-2), if a notice to terminate [If] the lease is provided under
457	457	this section [terminated], the landlord shall pay to the tenant not
458	458	later than the fifth day after the date the notice is delivered:
459	459	(1) a refund of any prepaid rent;
460	460	(2) [is entitled only to] a pro rata refund of rent
461	461	from the date the rental premises became as a practical matter
462	462	totally unusable for residential purposes as a result of a casualty
463	463	loss; [tenant moves out] and
464	464	(3) [to] a full refund of any security deposit
465	465	[otherwise required by law].
466	466	(b-5) If a tenant has not provided the landlord a forwarding
467	467	address as described by Subsection (b-1)(2)(A), the period for
468	468	providing the refund amounts specified by Subsection (b-4) is
469	469	tolled until the tenant provides the landlord a written statement
470	470	by e-mail or otherwise of the tenant's forwarding address for the
471	471	purpose of refunding those amounts. A tenant that provides notice
472	472	under Subsection (b) may provide the written statement of the
473	473	tenant's forwarding address in that notice. A landlord that
474	474	provides notice under Subsection (b) must include a statement
475	475	informing the tenant of the requirement of this subsection.
476	476	(c) If after a casualty loss the rental premises are
477	477	partially unusable for residential purposes and if the casualty
478	478	loss is not caused by the negligence or fault of the tenant, a
479	479	member of the tenant's family, or a guest or invitee of the tenant,
480	480	the tenant is entitled to reduction in the rent for the month in
481	481	which the casualty loss occurs and any subsequent months in the
482	482	lease term in which the rental premises are partially unusable for
483	483	residential purposes. The tenant is entitled to determine the
484	484	amount of the reduction in the rent, provided that the tenant must
485	485	determine [in] an amount that is proportionate to the extent the
486	486	premises are unusable because of the casualty loss [, but only on
487	487	judgment of a county or district court]. A tenant entitled to a
488	488	reduction in rent may deduct and withhold from a rent payment the
489	489	amount determined by the tenant [A landlord and tenant may agree
490	490	otherwise in a written lease].
491	491	(d) It is a defense in a proceeding to recover unpaid rent
492	492	for a rental premises, including a proceeding to recover possession
493	493	of a rental premises for nonpayment of rent, that a rent payment was
494	494	reduced, deducted, and withheld in accordance with Subsection (c).
495	495	(e) If a tenant asserts a defense under Subsection (d), the
496	496	court shall determine the amount of the reduction in the rent that
497	497	is proportionate to the extent the premises are unusable because of
498	498	the casualty. If the tenant withheld an amount less than the amount
499	499	determined by the court, the court shall enter a judgment for the
500	500	tenant in an amount equal to the amount the tenant overpaid. If the
501	501	tenant withheld an amount greater than the amount determined by the
502	502	court, the court:
503	503	(1) may assess late fees in accordance with the lease
504	504	if the court finds that the tenant acted in bad faith in reducing or
505	505	withholding the rent payment;
506	506	(2) shall order the tenant to pay into the registry of
507	507	the court or, if the landlord consents in writing, directly to the
508	508	landlord:
509	509	(A) an amount equal to the amount the tenant
510	510	underpaid; and
511	511	(B) any late fees assessed under Subdivision (1);
512	512	(3) may not enter a final judgment in the proceeding
513	513	before the 10th business day after the date the court issued the
514	514	order of payment under Subdivision (2); and
515	515	(4) shall dismiss the proceeding against the tenant if
516	516	the tenant complies with the order of payment under Subdivision (2)
517	517	before the 10th business day after the date the court issued the
518	518	order of payment under Subdivision (2).
519	519	(f) It is a defense in a proceeding to recover possession of
520	520	a rental premises after the landlord terminates a lease under this
521	521	section that the premises are totally or partially usable for
522	522	residential purposes.
523	523	(g) A provision of a lease is void if the provision purports
524	524	to:
525	525	(1) waive a right or exempt a party from a liability or
526	526	duty under this section; or
527	527	(2) expand a party's right to unilaterally terminate a
528	528	lease under this section.
529	529	SECTION 14. Sections 92.056(b) and (e), Property Code, are
530	530	amended to read as follows:
531	531	(b) A landlord is liable to a tenant as provided by this
532	532	subchapter if:
533	533	(1) the tenant has given the landlord notice to repair
534	534	or remedy a condition by giving that notice to the person to whom or
535	535	to the place where the tenant's rent is normally paid;
536	536	(2) the condition materially affects the physical
537	537	health or safety of an ordinary tenant;
538	538	(3) the tenant has given the landlord a subsequent
539	539	written notice to repair or remedy the condition after a reasonable
540	540	time to repair or remedy the condition following the notice given
541	541	under Subdivision (1) or the tenant has given the notice under
542	542	Subdivision (1) by sending that notice by:
543	543	(A) a method specified in the lease;
544	544	(B) a method generally accepted by the landlord
545	545	in practice;
546	546	(C) certified mail, return receipt requested;
547	547	(D) [, by] registered mail; [,] or
548	548	(E) [by] another form of mail that allows
549	549	tracking of delivery from the United States Postal Service or a
550	550	private delivery service;
551	551	(4) the landlord has had a reasonable time to repair or
552	552	remedy the condition after the landlord received the tenant's
553	553	notice under Subdivision (1) and, if applicable, the tenant's
554	554	subsequent notice under Subdivision (3);
555	555	(5) the landlord has not made a diligent effort to
556	556	repair or remedy the condition after the landlord received the
557	557	tenant's notice under Subdivision (1) and, if applicable, the
558	558	tenant's notice under Subdivision (3); and
559	559	(6) the tenant was not delinquent in the payment of
560	560	rent at the time any notice required by this subsection was given.
561	561	(e) Except as provided by [in] Subsection (f), a tenant to
562	562	whom a landlord is liable under Subsection (b) [of this section]
563	563	may:
564	564	(1) terminate the lease;
565	565	(2) withhold rent payments or have the condition
566	566	repaired or remedied according to Section 92.0561;
567	567	(3) deduct from the tenant's rent, without necessity
568	568	of judicial action, the cost of the repair or remedy according to
569	569	Section 92.0561; and
570	570	(4) obtain judicial remedies according to Section
571	571	92.0563.
572	572	SECTION 15. The heading to Section 92.0561, Property Code,
573	573	is amended to read as follows:
574	574	Sec. 92.0561. TENANT'S REPAIR AND DEDUCT AND RENT
575	575	WITHHOLDING REMEDIES.
576	576	SECTION 16. Section 92.0561, Property Code, is amended by
577	577	amending Subsections (a), (d), (e), and (f) and adding Subsections
578	578	(l) and (m) to read as follows:
579	579	(a) If the landlord is liable to the tenant under Section
580	580	92.056(b), the tenant may:
581	581	(1) withhold rent payments; or
582	582	(2) have the condition repaired or remedied and may
583	583	deduct the cost from a subsequent rent payment as provided in this
584	584	section.
585	585	(d) Repairs under this section may be made or rent payments
586	586	may be withheld only if [all of the following requirements are met]:
587	587	(1) the [The] landlord has a duty to repair or remedy
588	588	the condition under Section 92.052, and the duty has not been waived
589	589	in a written lease by the tenant under [Subsection (e) or (f) of]
590	590	Section 92.006(e) or (f); [92.006.]
591	591	(2) the [The] tenant has given notice to the landlord
592	592	as required by Section 92.056(b)(1), and, if required, a subsequent
593	593	notice under Section 92.056(b)(3);
594	594	(3) if the tenant intends to repair or remedy the
595	595	condition, [and] at least one of the [those] notices under
596	596	Subdivision (2):
597	597	(A) states that the tenant intends to repair or
598	598	remedy the condition; and
599	599	(B) contains [. The notice shall also contain] a
600	600	reasonable description of the intended repair or remedy; and [.]
601	601	(4) any [(3) Any] one of the following events has
602	602	occurred:
603	603	(A) the [The] landlord has failed to remedy the
604	604	backup or overflow of raw sewage inside the tenant's dwelling or the
605	605	flooding from broken pipes or natural drainage inside the dwelling;
606	606	[.]
607	607	(B) the [The] landlord has expressly or impliedly
608	608	agreed in the lease to furnish potable water to the tenant's
609	609	dwelling and the water service to the dwelling has totally ceased;
610	610	[.]
611	611	(C) the [The] landlord has expressly or impliedly
612	612	agreed in the lease to furnish heating or cooling equipment, [;] the
613	613	equipment is producing inadequate heat or cooled air, [;] and the
614	614	landlord has been notified in writing by the appropriate local
615	615	housing, building, or health official or other official having
616	616	jurisdiction that the lack of heat or cooling materially affects
617	617	the health or safety of an ordinary tenant; or [.]
618	618	(D) the [The] landlord has been notified in
619	619	writing by the appropriate local housing, building, or health
620	620	official or other official having jurisdiction that the condition
621	621	materially affects the health or safety of an ordinary tenant.
622	622	(e) If the requirements of Subsection (d) [of this section]
623	623	are met, a tenant may withhold rent payments or:
624	624	(1) have the condition repaired or remedied
625	625	immediately following the tenant's notice of intent to repair if
626	626	the condition involves sewage or flooding as described by [referred
627	627	to in Paragraph (A) of Subdivision (3) of] Subsection (d)(4)(A)
628	628	[(d) of this section];
629	629	(2) have the condition repaired or remedied if the
630	630	condition involves a cessation of potable water as described by
631	631	[referred to in Paragraph (A) of Subdivision (3) of] Subsection
632	632	(d)(4)(B) [(d) of this section] and if the landlord has failed to
633	633	repair or remedy the condition within three days following the
634	634	tenant's delivery of notice of intent to repair;
635	635	(3) have the condition repaired or remedied if the
636	636	condition involves inadequate heat or cooled air as described by
637	637	[referred to in Paragraph (C) of Subdivision (3) of] Subsection
638	638	(d)(4)(C) [(d) of this section] and if the landlord has failed to
639	639	repair the condition within three days after delivery of the
640	640	tenant's notice of intent to repair; or
641	641	(4) have the condition repaired or remedied if:
642	642	(A) the condition is not covered by Subsection
643	643	(d)(4)(A) [Paragraph (A)], (B), or (C);
644	644	(B) the condition [of Subdivision (3) of
645	645	Subsection (d) of this section and] involves a condition affecting
646	646	the physical health or safety of the ordinary tenant as described by
647	647	[referred to in Paragraph (D) of Subdivision (3) of] Subsection
648	648	(d)(4)(D); [(d) of this section] and
649	649	(C) [if] the landlord has failed to repair or
650	650	remedy the condition within seven days after delivery of the
651	651	tenant's notice of intent to repair.
652	652	(f) Repairs made pursuant to the tenant's notice must be
653	653	made by a company, contractor, or repairman listed in the yellow or
654	654	business pages of the telephone directory, on an Internet website
655	655	that aggregates and provides information about other businesses
656	656	that perform repair work, or in the classified advertising section
657	657	of a newspaper of the local city, county, or adjacent county at the
658	658	time of the tenant's notice of intent to repair. Unless the
659	659	landlord and tenant agree otherwise under Subsection (g) [of this
660	660	section], repairs may not be made by the tenant, the tenant's
661	661	immediate family, the tenant's employer or employees, or a company
662	662	in which the tenant has an ownership interest. Repairs may not be
663	663	made to the foundation or load-bearing structural elements of the
664	664	building if it contains two or more dwelling units.
665	665	(l) If the tenant chooses to withhold rent payments under
666	666	this section, the tenant may withhold rent until the repair is
667	667	completed. The tenant shall pay all rent owed not later than the
668	668	second business day after the date the repair is completed. The
669	669	tenant may not withhold rent payments that came due before the
670	670	tenant notified the landlord of the condition in need of repair or
671	671	remedy.
672	672	(m) A landlord may not charge a late fee for rent properly
673	673	withheld under this section.
674	674	SECTION 17. Section 92.331(b), Property Code, is amended to
675	675	read as follows:
676	676	(b) A landlord may not, because [within six months after the
677	677	date] of the tenant's action under Subsection (a), retaliate
678	678	against the tenant by:
679	679	(1) filing an eviction proceeding, except for the
680	680	grounds stated by Section 92.332;
681	681	(2) depriving the tenant of the use of the premises,
682	682	except for reasons authorized by law;
683	683	(3) decreasing services to the tenant;
684	684	(4) increasing the tenant's rent or terminating the
685	685	tenant's lease; or
686	686	(5) engaging, in bad faith, in a course of conduct that
687	687	materially interferes with the tenant's rights under the tenant's
688	688	lease.
689	689	SECTION 18. Section 92.351, Property Code, is amended by
690	690	adding Subdivisions (3-a) and (3-b) to read as follows:
691	691	(3-a) "Conditional offer" means an offer to rent or
692	692	lease a rental unit to an applicant that is contingent on the
693	693	landlord's subsequent inquiry into the applicant's criminal
694	694	history.
695	695	(3-b) "Conviction" means a verdict or plea of guilty
696	696	or nolo contendere. The term does not include deferred
697	697	adjudication or community supervision.
698	698	SECTION 19. Section 92.3515, Property Code, is amended by
699	699	amending Subsection (a) and adding Subsection (a-1) to read as
700	700	follows:
701	701	(a) At the time an applicant is provided with a rental
702	702	application and before accepting an application fee, the landlord
703	703	shall make available to the applicant printed notice of the
704	704	landlord's tenant selection criteria and the grounds for which the
705	705	rental application may be denied, including the applicant's:
706	706	(1) criminal history;
707	707	(2) previous rental history;
708	708	(3) current income;
709	709	(4) credit history; or
710	710	(5) failure to provide accurate or complete
711	711	information on the application form.
712	712	(a-1) The printed notice must state in writing that the
713	713	applicant may provide evidence showing:
714	714	(1) the inaccuracies in the applicant's criminal
715	715	history;
716	716	(2) the applicant's rehabilitation or rehabilitative
717	717	effort while incarcerated or after release; or
718	718	(3) other mitigating factors.
719	719	SECTION 20. Section 92.354, Property Code, is amended to
720	720	read as follows:
721	721	Sec. 92.354. LIABILITY OF LANDLORD. (a) A landlord who in
722	722	bad faith fails to refund an application fee or deposit in violation
723	723	of this subchapter is liable for an amount equal to the sum of $100,
724	724	three times the amount wrongfully retained, and the applicant's
725	725	reasonable attorney's fees.
726	726	(b) A landlord who violates Section 92.356 is liable for an
727	727	amount equal to the sum of $500 and the applicant's reasonable
728	728	attorney's fees.
729	729	SECTION 21. Subchapter I, Chapter 92, Property Code, is
730	730	amended by adding Section 92.356 to read as follows:
731	731	Sec. 92.356. CRIMINAL RECORD SCREENING. (a) A landlord
732	732	screening an applicant's criminal history may not inquire about or
733	733	consider a previous arrest of the applicant if the arrest did not
734	734	result in a conviction.
735	735	(b) Before making a conditional offer, a landlord may not
736	736	inquire about or require an applicant to disclose or reveal a
737	737	pending criminal charge.
738	738	(c) Notwithstanding Subsection (b), a landlord may require
739	739	an applicant to authorize the landlord to perform an inquiry or any
740	740	other check related to the landlord's tenant selection criteria in
741	741	deciding whether to rent or lease to an applicant.
742	742	(d) After making a conditional offer, a landlord screening
743	743	an applicant's criminal history may not consider a criminal
744	744	conviction that occurred more than three years before the date of
745	745	the conditional offer.
746	746	(e) A landlord may withdraw a conditional offer based on an
747	747	applicant's criminal conviction that has occurred less than three
748	748	years before the date of the conditional offer only if the landlord
749	749	determines that the withdrawal achieves a substantial, legitimate,
750	750	nondiscriminatory interest. The landlord's determination must be
751	751	reasonable after consideration of:
752	752	(1) the nature and severity of the criminal offense;
753	753	(2) the age of the applicant at the time of the
754	754	occurrence of the criminal offense;
755	755	(3) the time that has elapsed since the occurrence of
756	756	the criminal offense;
757	757	(4) any information produced by the applicant, or
758	758	produced on the applicant's behalf, in regard to the applicant's
759	759	rehabilitation and good conduct since the occurrence of the
760	760	criminal offense;
761	761	(5) the degree to which the criminal offense, if it
762	762	reoccurred, would negatively impact the safety of the landlord's
763	763	other tenants or property; and
764	764	(6) whether the criminal offense occurred on or was
765	765	connected to property that was rented or leased by the applicant.
766	766	(f) The landlord may not have a policy to ban renting or
767	767	leasing to tenants with a criminal conviction history. A
768	768	determination to withdraw a conditional offer must be based on an
769	769	individualized assessment considering the factors described by
770	770	Subsection (e).
771	771	(g) If a landlord withdraws a conditional offer, the
772	772	landlord shall provide the applicant with written notification that
773	773	includes, with specificity, the reasons for the withdrawal of the
774	774	conditional offer. Not later than the 20th day after the date
775	775	notice is provided, the applicant may request that the landlord
776	776	provide the applicant a copy of all information on which the
777	777	landlord relied in considering the applicant, including criminal
778	778	records. A landlord shall provide the information, free of charge,
779	779	not later than the 10th day after the date the request is received.
780	780	(h) This section may not be construed to allow a landlord to
781	781	inquire about or require an applicant to disclose:
782	782	(1) a pending criminal accusation against any
783	783	prospective tenant; or
784	784	(2) that a child, as defined by Section 51.02, Family
785	785	Code, who will reside in the rental unit was found to have engaged
786	786	in delinquent conduct or conduct indicating a need for supervision.
787	787	(i) This section does not apply:
788	788	(1) to a landlord who owns and occupies a multiunit
789	789	complex that has three or fewer dwelling units; or
790	790	(2) if a federal law or regulation or other law:
791	791	(A) requires the consideration of an applicant's
792	792	criminal history for the purposes of obtaining housing; or
793	793	(B) allows for denial of an applicant due to
794	794	certain criminal convictions.
795	795	SECTION 22. Section 94.251, Property Code, is amended to
796	796	read as follows:
797	797	Sec. 94.251. RETALIATION BY LANDLORD. (a) A landlord may
798	798	not retaliate against a tenant by taking an action described by
799	799	Subsection (b) because the tenant:
800	800	(1) in good faith exercises or attempts to exercise
801	801	against a landlord a right or remedy granted to the tenant by the
802	802	lease agreement, a municipal ordinance, or a federal or state
803	803	statute;
804	804	(2) gives the landlord a notice to repair or exercise a
805	805	remedy under this chapter; [or]
806	806	(3) complains to a governmental entity responsible for
807	807	enforcing building or housing codes, a public utility, or a civic or
808	808	nonprofit agency, and the tenant:
809	809	(A) claims a building or housing code violation
810	810	or utility problem; and
811	811	(B) believes in good faith that the complaint is
812	812	valid and that the violation or problem occurred; or
813	813	(4) establishes, attempts to establish, or
814	814	participates in a tenant organization.
815	815	(b) A landlord may not, because [within six months after the
816	816	date] of the tenant's action under Subsection (a), retaliate
817	817	against the tenant by:
818	818	(1) filing an eviction proceeding, except for the
819	819	grounds stated by Subchapter E;
820	820	(2) depriving the tenant of the use of the premises,
821	821	except for reasons authorized by law;
822	822	(3) decreasing services to the tenant;
823	823	(4) increasing the tenant's rent;
824	824	(5) terminating the tenant's lease agreement; or
825	825	(6) engaging, in bad faith, in a course of conduct that
826	826	materially interferes with the tenant's rights under the tenant's
827	827	lease agreement.
828	828	SECTION 23. Sections 92.0081(c), (d), (e), (e-1), (f), (g),
829	829	(i), and (k), Property Code, are repealed.
830	830	SECTION 24. The changes in law made by this Act apply only
831	831	to a lease or rental agreement entered into or renewed on or after
832	832	the effective date of this Act. A lease or rental agreement entered
833	833	into or renewed before the effective date of this Act is governed by
834	834	the law in effect immediately before the effective date of this Act,
835	835	and the former law is continued in effect for that purpose.
836	836	SECTION 25. Not later than January 1, 2022, the Texas
837	837	Supreme Court shall adopt the rules necessary to implement Sections
838	838	24.012 and 24.013, Property Code, as added by this Act.
839	839	SECTION 26. (a) Except as provided by Subsection (b) of
840	840	this section, this Act takes effect January 1, 2022.
841	841	(b) Section 25 of this Act takes effect September 1, 2021.