HB 3497

relating to certain deposits or fees required to be provided by a
tenant or prospective tenant in connection with a residential
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
SECTION 2.  Section 92.102, Property Code, is amended to
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
(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
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.