Relating to certain deposits, fees, or charges required to be provided by a tenant or prospective tenant in connection with a residential lease.

This bill clarifies that any fee or charge a landlord requires for damages (whether refundable or not) must be treated as a security deposit under Texas law. It directly affects tenants paying these fees and landlords collecting them, ensuring all such charges follow standard security deposit rules. The definition applies only to new or renewed residential leases entered into on or after September 1, 2025 (or sooner if passed with a two-thirds vote), leaving existing leases unchanged. The bill does not alter maximum deposit limits but ensures damage-related fees are uniformly classified as security deposits.