HB1518 - Relating to the issuance by the Texas Department of Housing and Community Affairs of verified residential rental applications.

  89R1685 PRL-D     By: Bell of Montgomery H.B. No. 1518       A BILL TO BE ENTITLED   AN ACT   relating to the issuance by the Texas Department of Housing and   Community Affairs of verified residential rental applications.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  This Act shall be known as the Ready to Rent   Texas Act.          SECTION 2.  Chapter 92, Property Code, is amended by adding   Subchapter J to read as follows:   SUBCHAPTER J. VERIFIED RESIDENTIAL RENTAL APPLICATION           Sec. 92.361.  DEFINITIONS. In this subchapter:                 (1)     "Applicant" means a person who makes an   application to a landlord for rental of a dwelling.                 (2)     "Department" means the Texas Department of Housing   and Community Affairs.                 (3)     "Landlord" means a prospective landlord to whom a   person makes an application for rental of a dwelling.                 (4)     "Portal" means the verified residential rental   application Internet portal established and maintained by the   department.                 (5)     "Verified application" means the verified   residential rental application issued by the department through the   portal.           Sec.   92.362.     APPLICATION OF SUBCHAPTER. This subchapter   applies to all applicants for and landlords of residential rental   property in this state.           Sec.   92.363.     CONSTRUCTION OF SUBCHAPTER. Nothing in this   subchapter may be construed to prohibit a landlord from rejecting   an applicant if the applicant does not meet the landlord's tenant   selection criteria, including the applicant's:                 (1)  criminal history;                 (2)  previous rental history;                 (3)  current income;                 (4)  credit history; or                 (5)  guarantor information, as applicable.           Sec.   92.364.     APPLICANT USE OF VERIFIED APPLICATION. An   applicant for rental of a dwelling completely satisfies any   application requirements of a landlord by submitting to the   landlord a verified application issued not earlier than the 90th   day before the date the application is submitted to the landlord.           Sec.   92.365.     LANDLORD ACCEPTANCE OF VERIFIED APPLICATION.   A landlord must accept a verified application as completely   satisfying the landlord's application requirements if the   application is issued not earlier than the 90th day before the date   the application is submitted to the landlord by the applicant.           Sec.   92.366.     PROHIBITED APPLICATION DOCUMENTS AND FEES. A   landlord may not require an applicant to:                 (1)     submit a rental application other than a verified   application; or                 (2)  pay an:                       (A)  application fee; or                       (B)  application deposit.           Sec.   92.367.     VERIFIED RESIDENTIAL RENTAL APPLICATION   INTERNET PORTAL. (a) In this section:                 (1)     "Consumer reporting agency" means any person that,   for monetary fees or dues or on a cooperative nonprofit basis,   regularly engages in the practice of assembling or evaluating   credit information or other information on individuals for the   purpose of furnishing consumer reports to third parties.                 (2)     "Credit report" means a written report of   information by a consumer reporting agency that bears on an   individual's creditworthiness, credit standing, or credit   capacity.                 (3)     "Criminal history background check" means a   written report of an individual's criminal history record   information, as defined by Section 411.082, Government Code.           (b)     The department shall develop and implement a portal   through which an applicant may obtain a verified residential rental   application that the applicant may use to apply for rental of a   dwelling.           (c)     The portal implemented under Subsection (b) shall   provide for an applicant to:                 (1)  submit the applicant's:                       (A)  previous rental history;                       (B)  proof of current income; and                       (C)  guarantor information, if applicable;                 (2)     request and grant permission for the department to   obtain the applicant's:                       (A)  criminal history background check; and                       (B)  credit report;                 (3)  pay any required fees; and                 (4)     access and share the applicant's verified   application.           (d)     The department may contract with a private vendor for   the development and implementation of the portal required by   Subsection (b).           (e)     On submission of a request for a verified application   and payment of required fees under Subsection (f), the department   shall:                 (1)  obtain the applicant's:                       (A)  criminal history background check; and                       (B)  credit report;                 (2)  verify the applicant's:                       (A)  criminal history;                       (B)  previous rental history;                       (C)  current income;                       (D)  credit history; and                       (E)  guarantor information, as applicable;                 (3)     issue a verified application to the applicant   through the portal; and                 (4)     enable the applicant to share the verified   application through the portal.           (f)     The department may charge a fee for a verified   application in an amount reasonable and necessary to administer   this subchapter. The department may not charge a fee for a criminal   history background check or a credit report that exceeds the actual   cost to the department of obtaining the document.           (g)     A verified application issued under this section is   valid for 90 days.          SECTION 3.  Section 92.102, Property Code, is amended to   read as follows:          Sec. 92.102.  SECURITY DEPOSIT. A security deposit is 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.          SECTION 4.  Subchapter I, Chapter 92, Property Code, is   repealed.          SECTION 5.  Not later than December 31, 2025, the Department   of Housing and Community Affairs shall make available to the public   the verified residential rental application Internet portal   required by Section 92.367, Property Code, as added by this Act.          SECTION 6.  This Act takes effect January 1, 2026.