85R8204 BEE-F
	By: Clardy	H.B. No. 1821

	A BILL TO BE ENTITLED
	AN ACT
	relating to a late fee for failing to pay rent under a residential
	lease.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 92.019, Property Code, is amended by
	amending Subsections (a) and (e) and adding Subsection (a-1) to
	read as follows:
	(a)  A late fee under this section may include an initial fee
	and a daily fee for each day the rent continues to remain unpaid.
	(a-1)  A landlord may not charge a tenant a late fee for
	failing to pay rent unless:
	(1)  notice of the fee is included in a written lease;
	(2)  the initial fee does not exceed eight percent of
	one month's rent and each subsequent daily fee does not exceed two
	percent of one month's [is a reasonable estimate of uncertain
	damages to the landlord that are incapable of precise calculation
	and result from late payment of] rent; and
	(3)  the rent has remained unpaid one full day after the
	date the rent was originally due.
	(e)  This section relates only to a fee, charge, or other sum
	of money required to be paid under the lease if rent is not paid as
	provided by Subsection (a-1)(3) [(a)(3)], and does not affect the
	landlord's right to terminate the lease or take other action
	permitted by the lease or other law.  Payment of the fee, charge, or
	other sum of money by a tenant does not waive the right or remedies
	provided by this section.
	SECTION 2.  Section 92.019(b), Property Code, is repealed.
	SECTION 3.  Section 92.019, Property Code, as amended 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 January 1, 2018.