| 1 | 1 | | 89R5684 SCR-D |
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| 2 | 2 | | By: Simmons H.B. No. 2905 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to rental application fees; providing an administrative |
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| 10 | 10 | | penalty. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subchapter I, Chapter 92, Property Code, is |
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| 13 | 13 | | amended by adding Section 92.356 to read as follows: |
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| 14 | 14 | | Sec. 92.356. APARTMENT COMPLEX APPLICATION FEES. (a) In |
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| 15 | 15 | | this section: |
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| 16 | 16 | | (1) "Apartment complex" means five or more dwellings |
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| 17 | 17 | | in one or more buildings that are owned by the same owner, located |
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| 18 | 18 | | on the same lot or tract, and managed by the same owner, agent, or |
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| 19 | 19 | | management company. |
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| 20 | 20 | | (2) "Commission" means the Texas Workforce |
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| 21 | 21 | | Commission. |
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| 22 | 22 | | (b) A landlord of an apartment complex or the landlord's |
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| 23 | 23 | | manager or agent may not charge an application fee to an applicant |
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| 24 | 24 | | in an amount greater than the reasonable costs of processing the |
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| 25 | 25 | | applicant's rental application and screening the applicant's |
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| 26 | 26 | | eligibility according to the landlord's tenant selection criteria |
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| 27 | 27 | | made available under Section 92.3515. |
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| 28 | 28 | | (c) A landlord of an apartment complex or the landlord's |
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| 29 | 29 | | manager or agent that charges an application fee shall: |
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| 30 | 30 | | (1) file with the commission a detailed disclosure of |
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| 31 | 31 | | the fee, including the costs of processing the rental application, |
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| 32 | 32 | | screening an applicant, and any other costs; and |
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| 33 | 33 | | (2) at the time an applicant is provided with a rental |
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| 34 | 34 | | application and before accepting an application fee, provide to the |
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| 35 | 35 | | applicant the detailed disclosure of the fee described by |
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| 36 | 36 | | Subdivision (1). |
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| 37 | 37 | | (d) If the commission finds that a landlord of an apartment |
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| 38 | 38 | | complex or the landlord's manager or agent has violated this |
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| 39 | 39 | | section, the commission may assess an administrative penalty of: |
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| 40 | 40 | | (1) $1,000 for a first violation; and |
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| 41 | 41 | | (2) $2,000 for a second or subsequent violation. |
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| 42 | 42 | | SECTION 2. The changes in law made by this Act apply only to |
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| 43 | 43 | | an application fee charged on or after the effective date of this |
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| 44 | 44 | | Act. |
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| 45 | 45 | | SECTION 3. This Act takes effect September 1, 2025. |
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