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


Office of House Bill AnalysisC.S.H.B. 2186
By: Davis, Yvonne
Business & Industry
4/16/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Most leasing agents use standard lease contracts that list the rental costs
and charges that a landlord may assess.  However, landlords may charge fees
other than those listed on the standard lease agreement and some landlords
charge maintenance and filing fees without giving tenants written or oral
notice at the beginning of the lease term.  C.S.H.B. 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

C.S.H.B. 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.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2186 differs from the original bill by applying these provisions
to commercial leases, rather than residential leases.  The substitute
removes the provision that authorized a landlord to assess a charge at the
end of a lease term or after the tenant surrenders the premises if the
landlord informed the tenant orally or in writing before the lease was
entered into of the possibility of the assessment charges at the end of the
lease term or the surrender of the premises.  The substitute specifies that
the provisions restricting certain changes do not affect a landlord's right
to charge or obtain a remedy allowed under a statute or common law.