89R5684 SCR-D By: Simmons H.B. No. 2905 A BILL TO BE ENTITLED AN ACT relating to rental application fees; providing an administrative penalty. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter I, Chapter 92, Property Code, is amended by adding Section 92.356 to read as follows: Sec. 92.356. APARTMENT COMPLEX APPLICATION FEES. (a) In this section: (1) "Apartment complex" means five or more dwellings in one or more buildings that are owned by the same owner, located on the same lot or tract, and managed by the same owner, agent, or management company. (2) "Commission" means the Texas Workforce Commission. (b) A landlord of an apartment complex or the landlord's manager or agent may not charge an application fee to an applicant in an amount greater than the reasonable costs of processing the applicant's rental application and screening the applicant's eligibility according to the landlord's tenant selection criteria made available under Section 92.3515. (c) A landlord of an apartment complex or the landlord's manager or agent that charges an application fee shall: (1) file with the commission a detailed disclosure of the fee, including the costs of processing the rental application, screening an applicant, and any other costs; and (2) at the time an applicant is provided with a rental application and before accepting an application fee, provide to the applicant the detailed disclosure of the fee described by Subdivision (1). (d) If the commission finds that a landlord of an apartment complex or the landlord's manager or agent has violated this section, the commission may assess an administrative penalty of: (1) $1,000 for a first violation; and (2) $2,000 for a second or subsequent violation. SECTION 2. The changes in law made by this Act apply only to an application fee charged on or after the effective date of this Act. SECTION 3. This Act takes effect September 1, 2025.