H.B. No. 1299 amends the Texas Property Code to clarify the definition and treatment of security deposits in residential leases. The bill introduces a new definition of "security deposit" in Section 92.001, which specifies that it refers to any advance of money intended to secure performance under a lease or to cover damages to the leased premises. Additionally, it establishes that any deposit required by a landlord from a prospective tenant or during the lease term is presumed to be a security deposit, including any fees or charges for damages, regardless of their designation.

The changes made by this bill will only apply to leases entered into or renewed after its effective date, ensuring that existing leases remain governed by the previous law. The bill is set to take effect immediately upon receiving a two-thirds majority vote from both houses of the legislature; otherwise, it will take effect on September 1, 2025.

Statutes affected:
Introduced: Property Code 92.001, Property Code 92.102 (Property Code 92)