bill counting landlord damage fees as security deposits

The text as introduced · 333 words

By: Vo
H.B. No. 3497

A BILL TO BE ENTITLED

AN ACT

relating to certain deposits or fees required to be provided by a

tenant or prospective tenant in connection with a residential

lease.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 92.001, Property Code, is amended by

adding Subdivision (5-a) to read as follows:

(5-a) "Security deposit" means a security deposit

described by Section 92.102.

SECTION 2. Section 92.102, Property Code, is amended to

read as follows:

Sec. 92.102. SECURITY DEPOSIT. A security deposit is :

(1) any advance of money, other than a rental

application deposit or an advance payment of rent, that is intended

primarily to secure performance under a lease of a dwelling that has

been entered into by a landlord and a tenant or to secure payment

for future damage to the leased premises;

(2) any up front or recurring fee that a landlord

requires a tenant to pay to the landlord or third party to cover

future damages to the leased premises or to cover future lease

violations; and

(3) any fee that a landlord requires a tenant to pay to

the landlord as a result of a tenant's eviction history or credit

history prior to leasing the unit, not including application fees .

SECTION 3. The change in law made by this Act applies only

to a lease entered into or renewed on or after the effective date of

this Act. A lease entered into or renewed before the effective date

of this Act is governed by the law as it existed immediately before

the effective date of this Act, and that law is continued in effect

for that purpose.

SECTION 4. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.