HBA-JEK, CCH H.B. 2186 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2186
By: Davis, Yvonne
Business & Industry
6/14/2001
Enrolled



BACKGROUND AND PURPOSE 

Most leasing agents use standard lease contracts that list the rental costs
and charges that a landlord may assess.  Prior to the 77th Legislature,
landlords were able to charge fees other than those listed on the standard
lease agreement, and some landlords charged maintenance and filing fees
without giving tenants written or oral notice at the beginning of the lease
term.  House Bill 2186 requires landlords of commercial properties to
disclose all potential fees that may be assessed to a tenant prior to
entering a lease agreement.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 2186 amends the Property Code to prohibit a landlord of a
commercial property from assessing a charge to a tenant unless the amount
of the charge or the method by which the charge is to be computed is stated
in the lease, an exhibit or attachment that is part of the lease, or an
amendment to the lease.  This provision does not apply to a charge for rent
or physical damage to the leased premises and does not affect a landlord's
right to assess a charge or obtain a remedy allowed under a statute or
common law. 

EFFECTIVE DATE

September 1, 2001.