HBA-MPM C.S.H.B. 2202 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2202 By: McClendon Business & Industry 5/5/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, a tenant maybe evicted for nonpayment of rent resulting from an eviction suit. If a tenant does not prevail in the suit, the tenant may appeal the judgment, which requires the payment of additional fees. However, current law does not specifically address the procedures to be utilized in the eviction appeals process if the tenant is a pauper. In addition, landlords may face problems in the appeals process because there are no guidelines for the justice of the peace and county judge regarding what constitutes pauper's status. Some justices refuse to hold pauper's affidavit hearings after the landlord contests a pauper's affidavit in a timely manner. Additionally, making a motion to a county court for issuance of a writ of possession is both costly and protracted. C.S.H.B. 2202 specifies the information that is required to be in a pauper's affidavit in order to establish pauper status and establishes a time line during which a justice court is required to hold a hearing on a pauper's affidavit and to issue a writ of possession. 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. 2202 amends the Property Code to authorize a tenant in a residential eviction case based on nonpayment of rent who is unable to pay the costs of appeal or to file an appeal bond to appeal the justice court's judgment by filing with the justice court no later than the fifth day after a judgment is signed a sworn affidavit stating that the tenant is a pauper and unable to pay the costs of an appeal or to file an appeal bond. The bill provides that the pauper's affidavit (affidavit) must contain information regarding the tenant's identity, employment income, spouse's income, governmental entitlement income and all other income, cash, and savings and checking accounts, real and personal property, debts, monthly expenses, and information regarding the tenant's dependents. The bill requires a justice if a landlord contests a tenant's affidavit within the time frame permitted by law to hold a hearing and rule on the matter no later than the fifth day after the notice of contest is received. The bill provides that the tenant has the burden to prove by competent evidence other than the tenant's affidavit the inability to pay the costs of appeal or file an appeal bond. The bill requires the tenant after a determination that the tenant is unable to pay the costs or file an appeal bond to tender rent to the justice court and county court, respectively. The bill provides that if the payment of rent is shared by the tenant and a governmental agency in a rental agreement with the landlord, the rent required to be paid by the tenant into the justice or county court registry is the portion for which the tenant is liable under the lease agreement. C.S.H.B. 2202 requires the justice court, if a party to the suit files a motion with the court disputing the amount of rent to be tendered into the court registry on or before the fifth day after the justice signs the judgment, to hold a hearing and determine the amount owed in accordance with the terms of the lease agreement and applicable law. If a landlord contests a tenant's affidavit, a motion must be made at or before the hearing on the contest, and the court is required to hold the hearing on the motion at the same time as the hearing on the contest. The bill provides that a justice court's decision may be appealed to the county court by either party to the suit no later than the fifth day after the decision of the justice court. If a motion is filed, the tenant is not required to pay the disputed portion of the rent into the court registry until the fifth day after the date of the justice court's decision or if an appeal of the decision is filed until the fifth day after the date the county court makes a final decision. The bill provides that if the court approves the tenant's affidavit in an appeal of a nonpayment of rent eviction case to the county court, the county court filing fee or an additional tenant's affidavit in lieu of a county court filing fee is not required. If a tenant fails to timely tender rent to the required court, the bill authorizes the landlord to file a sworn motion of nonpayment with the county court, which upon verification is required to issue a writ of possession. The county court is authorized to issue a writ of possession immediately if the court finds that the tenant has not tendered rent to the justice or county court and the amount of the rent is not in dispute. If during the appeal a governmental agency is responsible for a part of the rent and does not pay it to the landlord or to the required court, the bill authorizes the landlord to file a motion with the county court requesting that the tenant be required to pay the full rent amount as a condition for remaining in possession. The bill authorizes the court to grant such motion if the landlord shows good cause, did not cause the governmental agency to cease paying the rental payments, and is unable to take action that will cause the agency to resume payments or pay all or part of the rent. EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2202 requires a justice court to conduct a hearing if a party to a suit files a motion with the court disputing the amount of rent to be tendered into the court registry and makes provisions for a hearing on the motion and a hearing contesting a tenant's affidavit to be conducted simultaneously. The substitute provides for an appeals process after the justice court's decision. The substitute authorizes the county court to issue a writ of possession immediately if the court finds that the tenant has not tendered rent to the justice or county court and the amount of the rent is not in dispute. The substitute authorizes the court to grant a motion to a landlord who filed a request asking that the tenant be required to pay the full rent amount as a condition for remaining in possession if the landlord is unable to take action that will cause the agency to resume payments or pay all or part of the rent.