Texas Senate Bill SB 603

Texas 2025 - 89th Regular

• Filed: 12/13/24

Caption

Relating to a landlord's authority to collect from a tenant certain late fees for nonpayment or late payment for a utility.

Summary

SB 603 would limit when a landlord may pass through utility-related late fees to a tenant. The bill adds a new section to the Property Code providing that, in general, a landlord may not collect from a tenant a fee the landlord incurred because the landlord paid a utility company late or failed to pay a utility bill on time for utility service furnished to the tenant under a lease or other agreement. The bill defines landlord to include the landlord’s manager or agent. The bill creates an exception when the tenant is the one delinquent in paying the landlord for the utility service. In that circumstance, the landlord may still collect the related fee. The bill also makes clear that it does not limit a landlord’s ability to charge a tenant other late fees or charges that are otherwise owed under the lease or agreement.

Impact

SB 603 would amend Chapter 92 of the Texas Property Code by adding Section 92.0192, establishing a new restriction on utility-related pass-through fees in landlord-tenant relationships. It would prevent landlords from shifting to tenants fees that arise solely from the landlord’s own late payment or nonpayment to a utility provider, unless the tenant’s delinquency caused the landlord’s late payment. The change applies only to leases or other agreements entered into or renewed on or after September 1, 2025, so existing agreements would generally not be affected until renewal.

Sentiment

Based on the bill’s text and the absence of recorded committee discussion or votes in the provided materials, the measure appears to be a targeted consumer-protection bill with a straightforward policy purpose. Its framing suggests support for limiting charges that tenants may view as unfair or outside their control, while preserving landlords’ ability to recover charges when the tenant is actually responsible for the underlying utility delinquency. No recorded opposition or amendment activity is provided in the materials.

Contention

The main point of potential contention is whether landlords should be allowed to pass through utility late fees that result from their own billing or payment practices. Tenant advocates would likely favor the restriction as preventing tenants from being charged for a landlord’s mistake or delay, while landlord interests may argue that the rule could complicate utility billing arrangements or limit cost recovery in master-metered or landlord-provided utility setups. The bill addresses this concern by preserving collection rights when the tenant is delinquent, but the scope of what counts as tenant delinquency or a recoverable charge could still be a practical issue.