Texas 2023 - 88th Regular

Texas House Bill HB3952 Latest Draft

Bill / House Committee Report Version Filed 04/26/2023

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                            88R11192 TSS-D
 By: Schofield H.B. No. 3952


 A BILL TO BE ENTITLED
 AN ACT
 relating to the jurisdiction of courts in cases of forcible entry
 and detainer and forcible detainer.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 25.0003, Government Code, is amended by
 adding Subsection (g) to read as follows:
 (g)  A statutory county court has concurrent jurisdiction
 with a justice court in cases of forcible entry and detainer and
 forcible detainer.
 SECTION 2.  Section 27.031, Government Code, is amended by
 amending Subsection (a) and adding Subsection (b-1) to read as
 follows:
 (a)  In addition to the jurisdiction and powers provided by
 the constitution and other law, the justice court has original
 jurisdiction of:
 (1)  civil matters in which exclusive jurisdiction is
 not in the district or county court and in which the amount in
 controversy is not more than $20,000, exclusive of interest;
 [(2)  cases of forcible entry and detainer;] and
 (2) [(3)]  foreclosure of mortgages and enforcement of
 liens on personal property in cases in which the amount in
 controversy is otherwise within the justice court's jurisdiction.
 (b-1)  A justice court has concurrent jurisdiction with a
 statutory county court in cases of forcible entry and detainer and
 forcible detainer.
 SECTION 3.  Section 24.004, Property Code, is amended by
 adding Subsection (a-1) and amending Subsection (b) to read as
 follows:
 (a-1)  Except as provided by Subsection (b), a statutory
 county court has concurrent jurisdiction with a justice court in
 forcible entry and detainer and forcible detainer suits.  A
 statutory county court has jurisdiction to issue a writ of
 possession under Sections 24.0054(a), (a-2), and (a-3).
 (b)  A justice court or statutory county court does not have
 jurisdiction in a forcible entry and detainer or forcible detainer
 suit and shall dismiss the suit if the defendant files a sworn
 statement alleging the suit is based on a deed executed in violation
 of Chapter 21A, Business & Commerce Code.
 SECTION 4.  Section 24.0051(a), Property Code, is amended to
 read as follows:
 (a)  In a suit [filed in justice court] in which the landlord
 files a sworn statement seeking judgment against a tenant for
 possession of the premises and unpaid rent, personal service on the
 tenant or service on the tenant under Rule 742a, Texas Rules of
 Civil Procedure, is procedurally sufficient to support a default
 judgment for possession of the premises and unpaid rent.
 SECTION 5.  Section 24.00511(a), Property Code, is amended
 to read as follows:
 (a)  In a residential eviction suit for nonpayment of rent,
 the statutory county court or justice court in which the suit is
 filed shall state in the court's judgment the amount of the appeal
 bond, taking into consideration the money required to be paid into
 the court registry under Section 24.0053.
 SECTION 6.  Section 24.00512, Property Code, is amended to
 read as follows:
 Sec. 24.00512.  CONTEST OF CERTAIN APPEAL BONDS.  (a)  This
 section does not apply to an appeal bond issued by a corporate
 surety authorized by the Texas Department of Insurance to engage in
 business in this state.
 (b)  If a party appeals the judgment of a statutory county
 court or justice court in a residential eviction suit for
 nonpayment of rent by filing an appeal bond, the opposing party may
 contest the bond amount, form of the bond, or financial ability of a
 surety to pay the bond by filing a written notice with the [justice]
 court that rendered the judgment contesting the appeal bond on or
 before the fifth day after the date the appeal bond is filed and
 serving a copy on the other party.  After the notice is filed, the
 [justice] court shall notify the other party and the surety of the
 contest.
 (c)  Not later than the fifth day after the date the contest
 is filed, the statutory county court or justice court in which the
 notice under Subsection (b) is filed shall hold a hearing to hear
 evidence to determine whether to approve or disapprove the amount
 or form of the bond or the surety.
 (d)  If a party contests the amount or form of the bond, the
 contesting party has the burden to prove, by a preponderance of the
 evidence, that the amount or form of the bond, as applicable, is
 insufficient.  If a party contests the financial ability of a surety
 to pay the bond, the party filing the bond must prove, by a
 preponderance of the evidence, that the surety has sufficient
 nonexempt assets to pay the appeal bond.  If the [justice] court
 determines that the amount or form of the bond is insufficient or
 the surety does not have sufficient nonexempt assets to pay the
 appeal bond, the [justice] court must disapprove the bond.  If the
 surety fails to appear at the contest hearing, the failure to appear
 is prima facie evidence that the bond should be disapproved.
 (e)  Not later than the fifth day after the date the
 statutory county court or justice court, as applicable, disapproves
 an appeal bond, the party appealing may make a cash deposit, file a
 sworn statement of inability to pay with the [justice] court, or
 appeal the decision disapproving the appeal bond to the county
 court, if the decision is made by a justice court, or to the court of
 appeals, if the decision is made by a statutory county court.  If
 the party appealing fails to make a cash deposit, file a sworn
 statement of inability to pay, or appeal the decision disapproving
 the appeal bond, the judgment of the [justice] court that rendered
 the original judgment becomes final and a writ of possession and
 other processes to enforce the judgment must be issued on the
 payment of the required fee.
 (f)  If an appeal is filed with the county court under
 Subsection (e), the justice court shall transmit to the county
 court the contest to the appeal bond and all relevant documents.
 The county court shall docket the appeal, schedule a hearing to be
 held not later than the fifth day after the date the appeal is
 docketed, notify the parties and the surety of the hearing time and
 date, and hear the contest de novo.
 (f-1)  If an appeal is filed with the court of appeals under
 Subsection (e), the statutory county court shall transmit to the
 court of appeals the contest to the appeal bond and all relevant
 documents. The court of appeals shall docket the appeal, and if
 oral argument is requested, schedule a hearing as soon as
 practicable and notify the parties and the surety of any hearing
 set.
 (f-2)  The failure of a [the county] court to hold a timely
 hearing is not grounds for approval or denial of the appeal.  A writ
 of possession may not be issued before the court hearing the appeal
 [county court] issues a final decision on the appeal bond.
 (g)  After the contest is heard by the [county] court in
 which an appeal is filed, the [county] clerk of the court shall
 transmit the transcript and records of the case to the [justice]
 court that rendered the original judgment in the case.  If the
 [county] court hearing the appeal disapproves the appeal bond, the
 party may, not later than the fifth day after the date the court
 disapproves the appeal bond, perfect the appeal of the judgment on
 the eviction suit by making a cash deposit in the [justice] court
 that rendered the original judgment in the case in an amount
 determined by the [county] court hearing the appeal or by filing a
 sworn statement of inability to pay with the [justice] court that
 rendered the original judgment in the case pursuant to the Texas
 Rules of Civil Procedure.  If the tenant is the appealing party and
 a cash deposit in the required amount is not timely made or a sworn
 statement of inability to pay is not timely filed, the judgment of
 the [justice] court that rendered the original judgment becomes
 final and a writ of possession and other processes to enforce the
 judgment must be issued on the payment of the required fee.  If the
 landlord is the appealing party and a cash deposit is not timely
 made or a sworn statement of inability to pay is not timely filed,
 the judgment of the [justice] court that rendered the original
 judgment becomes final.  If the appeal bond is approved by the
 [county] court hearing the appeal, the court shall transmit the
 transcript and other records of the case to the [justice] court that
 rendered the original judgment, and that [the justice] court shall
 proceed as if the appeal bond was originally approved.
 SECTION 7.  Section 24.0052, Property Code, is amended to
 read as follows:
 Sec. 24.0052.  TENANT APPEAL ON PAUPER'S AFFIDAVIT.  (a)  If
 a tenant in a residential eviction suit is unable to pay the costs
 of appeal or file an appeal bond as required by the Texas Rules of
 Civil Procedure, the tenant may appeal the judgment of the
 [justice] court that rendered the original judgment by filing with
 that [the justice] court, not later than the fifth day after the
 date the judgment is signed, a pauper's affidavit sworn before the
 clerk of the [justice] court or a notary public that states that the
 tenant is unable to pay the costs of appeal or file an appeal bond.
 The affidavit must contain the following information:
 (1)  the tenant's identity;
 (2)  the nature and amount of the tenant's employment
 income;
 (3)  the income of the tenant's spouse, if applicable
 and available to the tenant;
 (4)  the nature and amount of any governmental
 entitlement income of the tenant;
 (5)  all other income of the tenant;
 (6)  the amount of available cash and funds available
 in savings or checking accounts of the tenant;
 (7)  real and personal property owned by the tenant,
 other than household furnishings, clothes, tools of a trade, or
 personal effects;
 (8)  the tenant's debts and monthly expenses; and
 (9)  the number and age of the tenant's dependents and
 where those dependents reside.
 (b)  A statutory county court or [The] justice court shall
 make available an affidavit form that a person may use to comply
 with the requirements of Subsection (a).
 (c)  The [justice] court in which a pauper's affidavit is
 filed under this section shall promptly notify the landlord that
 [if] a pauper's affidavit has been [is] filed by the tenant.
 (d)  A landlord may contest a pauper's affidavit on or before
 the fifth day after the date the affidavit is filed.  If the
 landlord contests the affidavit, the [justice] court in which the
 affidavit was filed shall notify the parties and hold a hearing to
 determine whether the tenant is unable to pay the costs of appeal or
 file an appeal bond.  The hearing shall be held not later than the
 fifth day after the date the landlord notifies the court clerk of
 the landlord's contest.  At the hearing, the tenant has the burden
 to prove by competent evidence, including documents or credible
 testimony of the tenant or others, that the tenant is unable to pay
 the costs of appeal or file an appeal bond.
 (e)  If the [justice] court approves the pauper's affidavit
 of a tenant filed under this section, the tenant is not required to
 pay the [county court] filing fee in the court in which the appeal
 is filed or file an additional affidavit in the appellate [county]
 court under Subsection (a).
 SECTION 8.  Section 24.00521, Property Code, is amended to
 read as follows:
 Sec. 24.00521.  CONTEST OF CERTAIN APPEAL BONDS [IN COUNTY
 COURT].  (a)  A contest under Section 24.00512 filed in a justice
 court does not preclude a party from contesting the appeal bond in
 the county court after the county court has jurisdiction over the
 eviction suit.
 (b)  A contest under Section 24.00512 filed in a statutory
 county court does not preclude a party from contesting the appeal
 bond in the court of appeals after the court of appeals has
 jurisdiction over the appeal of an eviction suit.
 (c)  After the county court has jurisdiction over the appeal
 of an eviction suit or a court of appeals has jurisdiction over the
 appeal of an eviction suit, the county court or court of appeals, as
 applicable, may modify the amount or form of the bond and determine
 the sufficiency of the surety.
 SECTION 9.  Sections 24.0053(a), (a-1), (a-2), (a-3), (b),
 (c), (d), and (e), Property Code, are amended to read as follows:
 (a)  If a statutory county court or [the] justice court, as
 applicable, enters judgment for the landlord in a residential
 eviction case based on nonpayment of rent, the court shall
 determine the amount of rent to be paid each rental pay period
 during the pendency of any appeal and shall note that amount in the
 judgment.  If a portion of the rent is payable by a government
 agency, the court shall determine and note in the judgment the
 portion of the rent to be paid by the government agency and the
 portion to be paid by the tenant.  The court's determination shall
 be in accordance with the terms of the rental agreement and
 applicable laws and regulations.  This subsection does not require
 or prohibit payment of rent into the court registry or directly to
 the landlord during the pendency of an appeal of an eviction case
 based on grounds other than nonpayment of rent.
 (a-1)  In an eviction suit for nonpayment of rent, if a
 tenant files a pauper's affidavit in the period prescribed by
 Section 24.0052 or an appeal bond pursuant to the Texas Rules of
 Civil Procedure, the [justice] court in which the affidavit or bond
 is filed shall provide to the tenant a written notice at the time
 the pauper's affidavit or [appeal] bond is filed that contains the
 following information in bold or conspicuous type:
 (1)  the amount of the initial deposit of rent stated in
 the judgment that the tenant must pay into the [justice] court
 registry;
 (2)  whether the initial deposit must be paid in cash,
 cashier's check, or money order, and to whom the cashier's check or
 money order, if applicable, must be made payable;
 (3)  the calendar date by which the initial deposit
 must be paid into the [justice] court registry;
 (4)  for a court that closes before 5 p.m. on the date
 specified by Subdivision (3), the time the court closes; and
 (5)  a statement that failure to pay the required
 amount into the [justice] court registry by the date prescribed by
 Subdivision (3) may result in the court issuing a writ of possession
 without a hearing.
 (a-2)  The date by which an initial deposit must be paid into
 the [justice] court registry under Subsection (a-1)(3) must be
 within five days of the date the tenant files the pauper's affidavit
 as required by the Texas Rules of Civil Procedure.
 (a-3)  If a tenant files an appeal bond to appeal an eviction
 for nonpayment of rent, the tenant must, not later than the fifth
 day after the date the tenant filed the appeal bond, pay into the
 [justice] court registry the amount of rent to be paid in one rental
 pay period as determined by the court under Subsection (a).  If the
 tenant fails to timely pay that amount into the [justice] court
 registry and the transcript has not yet been transmitted to the
 [county] court in which the appeal is filed, the plaintiff may
 request a writ of possession.  On request and payment of the
 applicable fee, the [justice] court that rendered the original
 judgment shall issue the writ of possession immediately and without
 a hearing.  Regardless of whether a writ of possession is issued:
 (1)  a [, the] justice court shall transmit the
 transcript and appeal documents to the county court for trial de
 novo on issues relating to possession, rent, or attorney's fees; or
 (2)  a statutory county court shall transmit the
 transcript and appeal documents to the court of appeals for an
 appeal conducted in the same manner as the appeal of any other order
 or other action of the court.
 (b)  If an eviction case is based on nonpayment of rent and
 the tenant appeals by filing a pauper's affidavit, the tenant shall
 pay the rent, as it becomes due, into the [justice] court [or the
 county court] registry[, as applicable,] during the pendency of the
 appeal, in accordance with the Texas Rules of Civil Procedure and
 Subsection (a).  If a government agency is responsible for all or a
 portion of the rent under an agreement with the landlord, the tenant
 shall pay only that portion of the rent determined by the [justice]
 court under Subsection (a) to be paid by the tenant during appeal,
 subject to either party's right to contest that determination under
 Subsection (c).
 (c)  If an eviction case is based on nonpayment of rent and
 the tenant's rent during the rental agreement term has been paid
 wholly or partly by a government agency, either party may contest
 the portion of the rent that the [justice] court determines must be
 paid into the [county] court registry by the tenant under this
 section.  The contest must be filed on or before the fifth day after
 the date the judge or justice, as applicable, signs the judgment.
 If a contest is filed, not later than the fifth day after the date
 the contest is filed the [justice] court shall notify the parties
 and hold a hearing to determine the amount owed by the tenant in
 accordance with the terms of the rental agreement and applicable
 laws and regulations.  After hearing the evidence, the [justice]
 court shall determine the portion of the rent that must be paid by
 the tenant under this section.
 (d)  If the tenant objects to a [the] justice court's ruling
 under Subsection (c) on the portion of the rent to be paid by the
 tenant during appeal, the tenant shall be required to pay only the
 portion claimed by the tenant to be owed by the tenant until the
 issue is tried de novo along with the case on the merits in county
 court. If the tenant objects to a statutory county court's ruling
 under Subsection (c) on the portion of the rent to be paid by the
 tenant during appeal, the tenant shall be required to pay only the
 portion claimed by the tenant to be owed by the tenant until the
 appeal is final. During the pendency of an [the] appeal taken from
 a justice court, either party may file a motion with the county
 court to reconsider the amount of the rent that must be paid by the
 tenant into the registry of the court.
 (e)  If either party files a contest under Subsection (c) and
 the tenant files a pauper's affidavit that is contested by the
 landlord under Section 24.0052(d), the [justice] court shall hold
 the hearing on both contests at the same time.
 SECTION 10.  Sections 24.0054(a), (a-2), (a-3), (a-4), (b),
 (c), (e), and (f), Property Code, are amended to read as follows:
 (a)  During an appeal of an eviction case for nonpayment of
 rent, the [justice] court that rendered the original judgment, on
 request, shall immediately issue a writ of possession, without
 hearing, if:
 (1)  a tenant fails to pay the initial rent deposit into
 the [justice] court registry within five days of the date the tenant
 filed a pauper's affidavit as required by Rule 749b(1), Texas Rules
 of Civil Procedure, and Section 24.0053;
 (2)  the [justice] court has provided the written
 notice required by Section 24.0053(a-1); and
 (3)  the [justice] court has not yet forwarded the
 transcript and original papers to the [county] court in which the
 appeal is filed as provided by Subsection (a-2).
 (a-2)  The [justice] court that rendered the original
 judgment shall forward the transcript and original papers in an
 appeal [of an eviction case] to the [county] court hearing the
 appeal but may not forward the transcript and original papers
 before the sixth day after the date the tenant files a pauper's
 affidavit, except that, if the court confirms that the tenant has
 timely paid the initial deposit of rent into the [justice] court
 registry in accordance with Section 24.0053, the court may forward
 the transcript and original papers immediately.  If the tenant has
 not timely paid the initial deposit into the [justice] court
 registry, the [justice] court, on request, shall issue a writ of
 possession notwithstanding the fact that the tenant has perfected
 an appeal by filing a pauper's affidavit that has been approved by
 the court.  If the court that rendered the original judgment is a
 justice court, the [The] justice court shall forward the transcript
 and original papers in the case to the county court for trial de
 novo, notwithstanding the fact that a writ of possession under this
 section has already been issued. If the court that rendered the
 original judgment is a statutory county court, the county court
 shall forward the transcript and original papers in the case to the
 court of appeals, notwithstanding the fact that a writ of
 possession under this section has already been issued.
 (a-3)  Notwithstanding Subsections (a) and (a-2), the
 [justice] court that rendered the original judgment may not issue a
 writ of possession if the tenant has timely deposited the tenant's
 portion of the rent claimed by the tenant under Section 24.0053(d).
 (a-4)  During an appeal of an eviction case for nonpayment of
 rent, if a tenant fails to pay rent into the [justice] court [or
 county court] registry as the rent becomes due under the rental
 agreement in accordance with the Texas Rules of Civil Procedure and
 Section 24.0053, the landlord may file with the [county] court
 hearing the appeal a sworn motion that the tenant failed to pay rent
 as required.  The landlord shall notify the tenant of the motion and
 the hearing date.
 (b)  If the [county] court hearing the appeal finds that the
 tenant has not complied with the payment requirements of the Texas
 Rules of Civil Procedure and Section 24.0053, the [county] court
 shall immediately issue a writ of possession unless on or before the
 day of the hearing the tenant pays into the court registry:
 (1)  all rent not paid in accordance with the Texas
 Rules of Civil Procedure and Section 24.0053; and
 (2)  the landlord's reasonable attorney's fees, if any,
 in filing the motion.
 (c)  If the court finds that a tenant has failed to timely pay
 the rent into the court registry on more than one occasion:
 (1)  the tenant is not entitled to stay the issuance of
 the writ by paying the rent and the landlord's reasonable attorney's
 fees, if any; and
 (2)  the [county] court hearing the appeal shall
 immediately issue a writ of possession.
 (e)  In a motion or hearing under Subsection (a-4), or in a
 motion to dismiss an appeal of an eviction case [in county court],
 other than a motion to dismiss an appeal filed in a court of
 appeals, the parties may represent themselves or be represented by
 their authorized agents, who need not be attorneys.
 (f)  During the appeal of an eviction case, if a government
 agency is responsible for payment of a portion of the rent and does
 not pay that portion to the landlord or into the [justice] court [or
 county court] registry, the landlord may file a motion with the
 [county] court hearing the appeal requesting that the tenant be
 required to pay into the [county] court registry, as a condition of
 remaining in possession, the full amount of each rental period's
 rent, as it becomes due under the rental agreement.  After notice
 and hearing, the court shall grant the motion if the landlord proves
 by credible evidence that:
 (1)  a portion of the rent is owed by a government
 agency;
 (2)  the portion of the rent owed by the government
 agency is unpaid;
 (3)  the landlord did not cause wholly or partly the
 agency to cease making the payments;
 (4)  the landlord did not cause wholly or partly the
 agency to pay the wrong amount; and
 (5)  the landlord is not able to take reasonable action
 that will cause the agency to resume making the payments of its
 portion of the total rent due under the rental agreement.
 SECTION 11.  Section 24.0062(i), Property Code, is amended
 to read as follows:
 (i)  Before the sale of the property by the warehouseman, the
 tenant may file suit in the [justice] court in which the eviction
 judgment was rendered, or in another court of competent
 jurisdiction in the county in which the rental premises are
 located, to recover the property described by Subsection (e) on the
 ground that the landlord failed to return the property after timely
 demand and payment by the tenant, as provided by this section.
 Before sale, the tenant may also file suit to recover all property
 moved or stored by the warehouseman on the ground that the amount of
 the warehouseman's moving or storage charges is not reasonable.
 All proceedings under this subsection have precedence over other
 matters on the court's docket.  The [justice] court that issued the
 writ of possession has jurisdiction under this section regardless
 of the amount in controversy.
 SECTION 12.  Section 24.007, Property Code, is amended to
 read as follows:
 Sec. 24.007.  APPEAL.  (a)  A final judgment of a county
 court in an eviction suit originally filed in a justice court may
 not be appealed on the issue of possession unless the premises in
 question are being used for residential purposes only.  A judgment
 of a county court in an eviction case originally filed in a justice
 court may not under any circumstances be stayed pending appeal
 unless, within 10 days of the signing of the judgment, the appellant
 files a supersedeas bond in an amount set by the county court.  In
 setting the supersedeas bond the county court shall provide
 protection for the appellee to the same extent as in any other
 appeal, taking into consideration the value of rents likely to
 accrue during appeal, damages which may occur as a result of the
 stay during appeal, and other damages or amounts as the court may
 deem appropriate.
 (b)  A final judgment of a court of appeals in an eviction
 suit originally filed in a statutory county court may not be further
 appealed on the issue of possession unless the premises in question
 are being used for residential purposes only.  A judgment of a court
 of appeals in an appeal taken from an eviction case originally filed
 in a statutory county court may not under any circumstances be
 stayed pending appeal unless, within 10 days of the signing of the
 judgment, the appellant files a supersedeas bond in an amount set by
 the court of appeals.  In setting the supersedeas bond the court of
 appeals shall provide protection for the appellee to the same
 extent as in any other appeal, taking into consideration the value
 of rents likely to accrue during appeal, damages which may occur as
 a result of the stay during appeal, and other damages or amounts as
 the court may deem appropriate.
 SECTION 13.  Section 24.011(a), Property Code, is amended to
 read as follows:
 (a)  In eviction suits in a statutory county court or justice
 court for nonpayment of rent or holding over beyond a rental term,
 the parties may represent themselves or be represented by their
 authorized agents, who need not be attorneys.  In any eviction suit
 in a statutory county court or justice court, an authorized agent
 requesting or obtaining a default judgment need not be an attorney.
 SECTION 14.  Section 501.0521(a), Transportation Code, is
 amended to read as follows:
 (a)  A justice of the peace or municipal court judge may not
 issue an order related to a title except as provided by Chapter 47,
 Code of Criminal Procedure, or Section 27.031(a)(2)
 [27.031(a)(3)], Government Code.
 SECTION 15.  The changes in law made by this Act apply only
 to a forcible entry and detainer or a forcible detainer suit filed
 on or after the effective date of this Act.  A suit filed before the
 effective date of this Act is governed by the law in effect on the
 date the suit was filed, and the former law is continued in effect
 for that purpose.
 SECTION 16.  This Act takes effect September 1, 2023.