Bill Text: TX HB2803 | 2021-2022 | 87th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to a commercial landlord's or tenant's remedies regarding certain unlawful activities in a multiunit commercial property.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Vetoed) 2021-06-18 - Vetoed by the Governor [HB2803 Detail]

Download: Texas-2021-HB2803-Comm_Sub.html

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By: Thompson of Harris, et al. H.B. No. 2803
(Senate Sponsor - Huffman)
(In the Senate - Received from the House May 12, 2021;
May 13, 2021, read first time and referred to Committee on
Jurisprudence; May 21, 2021, reported favorably by the following
vote: Yeas 5, Nays 0; May 21, 2021, sent to printer.)
Click here to see the committee vote

A BILL TO BE ENTITLED
AN ACT
relating to a commercial landlord's or tenant's remedies regarding
certain unlawful activities in a multiunit commercial property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 93.013(a), Property Code, is amended to
read as follows:
(a) Notwithstanding a provision in a lease to the contrary,
a tenant's right of possession terminates and the landlord has a
right to recover possession of the leased premises if the tenant is
using the premises or allowing the premises to be used for the
purposes of:
(1) prostitution, promotion of prostitution,
aggravated promotion of prostitution, or compelling prostitution,
as prohibited by the Penal Code;
(2) [, or] trafficking of persons as described by
Section 20A.02, Penal Code; or
(3) operating, maintaining, or advertising a massage
establishment, as defined by Section 455.001, Occupations Code,
that is not in compliance with:
(A) Chapter 455, Occupations Code; or
(B) an applicable local ordinance relating to the
licensing or regulation of a massage establishment.
SECTION 2. Chapter 93, Property Code, is amended by adding
Section 93.014 to read as follows:
Sec. 93.014. RIGHT TO VACATE DUE TO CERTAIN UNLAWFUL
ACTIVITIES IN MULTIUNIT COMMERCIAL PROPERTY. (a) In this section:
(1) "Multiunit commercial property" means a strip
mall, shopping center, office building, or other similar commercial
property with multiple contiguous or proximate rental units that
are owned or managed as a single property.
(2) "Unlawful activity" means:
(A) prostitution, promotion of prostitution,
aggravated promotion of prostitution, or compelling prostitution,
as prohibited under Chapter 43, Penal Code;
(B) trafficking of persons, as prohibited under
Section 20A.02, Penal Code; or
(C) operating, maintaining, or advertising a
massage establishment, as defined by Section 455.001, Occupations
Code, that is not in compliance with:
(i) Chapter 455, Occupations Code; or
(ii) an applicable local ordinance relating
to the licensing or regulation of a massage establishment.
(b) A landlord of a multiunit commercial property is in
breach of a lease with a tenant if:
(1) the tenant reasonably believes that another tenant
in the same multiunit commercial property is engaging in an
unlawful activity;
(2) the complaining tenant makes a report regarding
the activity described by Subdivision (1) to a local law
enforcement agency with jurisdiction over the unlawful activity;
(3) the complaining tenant gives the landlord written
notice of the offending tenant's engagement in the unlawful
activity, including:
(A) a statement of the basis for the complaining
tenant's reasonable belief that the offending tenant is engaging in
the activity; and
(B) a copy of the report described by Subdivision
(2); and
(4) the landlord does not file a forcible detainer
suit against the offending tenant under Section 93.013 before the
30th day after the date the notice is given.
(c) Notwithstanding a provision of the lease to the
contrary, if a landlord is in breach of a tenant's lease under
Subsection (b), the tenant may:
(1) terminate the tenant's rights and obligations
under the lease;
(2) vacate the leased premises; and
(3) avoid liability for future rent and any other sums
due under the lease for terminating the lease and vacating the
premises before the end of the lease term.
(d) This section does not prohibit a landlord from pursuing
a civil action against a complaining tenant for any amount due under
the complaining tenant's lease if, after the landlord investigates
the offending tenant, the landlord determines the complaining
tenant's belief regarding the unlawful activity, as stated in the
written notice under Subsection (b)(3), was not reasonable.
(e) In a civil action described by Subsection (d), there is
a rebuttable presumption that a complaining tenant's belief
regarding an offending tenant's engagement in unlawful activity is
reasonable if the complaining tenant gave the landlord the notice
required by Subsection (b)(3).
SECTION 3. The changes in law made by this Act apply only to
a commercial lease that is entered into or renewed on or after the
effective date of this Act. A commercial lease that is entered into
or renewed before the effective date of this Act is governed by the
law applicable to the lease immediately before the effective date
of this Act, and that law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2021.
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