Texas 2013 - 83rd Regular

Texas House Bill HB611 Compare Versions

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1	1	83R11295 JTS-D
2	2	By: Guillen H.B. No. 611
3	3	Substitute the following for H.B. No. 611:
4	4	By: Deshotel C.S.H.B. No. 611
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the regulation of subdivisions in counties, including
10	10	certain border and economically distressed counties.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 232.0031, Local Government Code, is
13	13	amended to read as follows:
14	14	Sec. 232.0031. STANDARD FOR ROADS IN SUBDIVISION. A county
15	15	may not impose under Section 232.003 a higher standard for streets
16	16	or roads in a subdivision than the county imposes on itself for the
17	17	construction of new streets or roads with a similar type and amount
18	18	of traffic.
19	19	SECTION 2. Section 232.022(d), Local Government Code, is
20	20	amended to read as follows:
21	21	(d) This subchapter does not apply if all [each] of the lots
22	22	of the subdivision are more than [is] 10 [or more] acres.
23	23	SECTION 3. Section 232.023, Local Government Code, is
24	24	amended by amending Subsection (a) and adding Subsection (a-1) to
25	25	read as follows:
26	26	(a) A subdivider of land must have a plat of the subdivision
27	27	prepared if at least one of the lots of the subdivision is five
28	28	acres or less. A commissioners court by order may require each
29	29	subdivider of land to prepare a plat if at least one of the lots of a
30	30	subdivision is more than five acres but not more than 10 acres.
31	31	(a-1) A subdivision of a tract under this section
32	32	[subsection] includes a subdivision of real property by any method
33	33	of conveyance, including a contract for deed, oral contract,
34	34	contract of sale, or other type of executory contract, regardless
35	35	of whether the subdivision is made by using a metes and bounds
36	36	description.
37	37	SECTION 4. Section 232.033, Local Government Code, is
38	38	amended by amending Subsections (a) and (h) and adding Subsections
39	39	(a-1), (a-2), (a-3), and (a-4) to read as follows:
40	40	(a) Brochures, publications, [and] advertising of any form,
41	41	and earnest money contracts relating to [subdivided] land required
42	42	to be platted under this subchapter:
43	43	(1) may not contain any misrepresentation; [and]
44	44	(2) except for a for-sale sign posted on the property
45	45	that is no larger than three feet by three feet, must accurately
46	46	describe the availability of water and sewer service facilities and
47	47	electric and gas utilities; and
48	48	(3) if a plat for the land has not been finally
49	49	approved and recorded, must include a notice that:
50	50	(A) subject to Subsection (a-1), a contract for
51	51	the sale of any portion of the land may not be entered into until the
52	52	land receives final plat approval under Section 232.024; and
53	53	(B) the land may not be possessed or occupied
54	54	until:
55	55	(i) the land receives final plat approval
56	56	under Section 232.024; and
57	57	(ii) all water and sewer service facilities
58	58	for the lot are connected or installed in compliance with the model
59	59	rules adopted under Section 16.343, Water Code.
60	60	(a-1) This subsection applies in addition to other
61	61	applicable law and prevails to the extent of a conflict with that
62	62	other law. This subsection applies only to a person who is a seller
63	63	or subdivider and who is a licensed, registered, or otherwise
64	64	credentialed residential mortgage loan originator under applicable
65	65	state law, federal law, and the Nationwide Mortgage Licensing
66	66	System and Registry. A person may, before a plat has been finally
67	67	approved and recorded for the land:
68	68	(1) enter into an earnest money contract with a
69	69	potential purchaser and accept payment under the contract in an
70	70	amount of $250 or less; and
71	71	(2) advertise in accordance with this section.
72	72	(a-2) An earnest money contract entered into under
73	73	Subsection (a-1) is void if the plat for the land has not been
74	74	finally approved and recorded before the 91st day after the date the
75	75	earnest money contract is signed by the potential purchaser, unless
76	76	the potential purchaser agrees in writing to extend the period for
77	77	plat approval and recording for an additional 90-day period. Only
78	78	one extension may be granted under this subsection.
79	79	(a-3) If an earnest money contract is void under Subsection
80	80	(a-2), the seller shall refund all earnest money paid to the
81	81	potential purchaser not later than the 30th day after the date the
82	82	earnest money contract becomes void under Subsection (a-2). If the
83	83	seller fails to refund the earnest money to the potential purchaser
84	84	in violation of this subsection, the potential purchaser, in a suit
85	85	to recover the earnest money, may recover an amount equal to three
86	86	times the amount of the earnest money required to be refunded, plus
87	87	reasonable attorney's fees.
88	88	(a-4) Before entering into an earnest money contract under
89	89	Subsection (a-1), a person must provide written notice to the
90	90	attorney general and to the local government responsible for
91	91	approving the plat. The notice must include:
92	92	(1) a statement of intent to enter into an earnest
93	93	money contract under Subsection (a-1);
94	94	(2) a legal description of the land to be included in
95	95	the subdivision;
96	96	(3) each county in which all or part of the subdivision
97	97	is located; and
98	98	(4) the number of proposed individual lots to be
99	99	included in the subdivision.
100	100	(h) A person who is a seller of lots for which a plat is
101	101	required under this subchapter [in a subdivision], or a subdivider
102	102	or an agent of a seller or subdivider, commits an offense if the
103	103	person knowingly authorizes or assists in the publication,
104	104	advertising, distribution, or circulation of any statement or
105	105	representation that the person knows is false concerning any
106	106	[subdivided] land offered for sale or lease. An offense under this
107	107	section is a Class A misdemeanor.
108	108	SECTION 5. Subchapter B, Chapter 232, Local Government
109	109	Code, is amended by adding Section 232.0375 to read as follows:
110	110	Sec. 232.0375. NOTICE AND OPPORTUNITY TO CURE REQUIRED
111	111	BEFORE FILING ENFORCEMENT ACTION. (a) Before a civil enforcement
112	112	action may be filed against a subdivider under this subchapter, the
113	113	subdivider must be notified in writing about the general nature of
114	114	the alleged violation and given 90 days from the notification date
115	115	to cure the violation. After the 90th day after the date of the
116	116	notification, the enforcement action may proceed.
117	117	(b) This section does not apply to a civil enforcement
118	118	action if the attorney general, district attorney, or county
119	119	attorney asserts that:
120	120	(1) an alleged violation or threatened violation poses
121	121	a threat to a consumer or to the health and safety of any person; or
122	122	(2) a delay in bringing an enforcement action may
123	123	result in financial loss or increased costs to any person,
124	124	including the county.
125	125	(c) This section does not apply if an enforcement action has
126	126	previously been filed against the subdivider for the same or
127	127	another alleged violation.
128	128	(d) This section does not apply to an action filed by a
129	129	private individual.
130	130	SECTION 6. Subchapter B, Chapter 232, Local Government
131	131	Code, is amended by adding Section 232.045 to read as follows:
132	132	Sec. 232.045. EARNEST MONEY CONTRACTS. (a) An earnest
133	133	money contract entered into under Section 232.033(a-1) must contain
134	134	the following statement:
135	135	"NOTICE: THIS IS AN EARNEST MONEY CONTRACT ONLY. THE MAXIMUM
136	136	AMOUNT THAT THE SELLER MAY COLLECT UNDER THIS CONTRACT IS $250. THE
137	137	SELLER MAY NOT DEMAND ANY ADDITIONAL PAYMENT UNTIL A PLAT OF THE
138	138	SUBDIVISION HAS BEEN APPROVED."
139	139	(b) An earnest money contract entered into under Section
140	140	232.033(a-1) must contain the notice required by Section 232.033.
141	141	SECTION 7. Section 232.072, Local Government Code, is
142	142	amended by amending Subsection (a) and adding Subsection (a-1) to
143	143	read as follows:
144	144	(a) The owner of a tract of land that divides the tract in
145	145	any manner that creates lots of five acres or less intended for
146	146	residential purposes must have a plat of the subdivision prepared.
147	147	A commissioners court by order may require each subdivider of land
148	148	to prepare a plat if at least one of the lots of a subdivision is
149	149	more than five acres but not more than 10 acres.
150	150	(a-1) A subdivision of a tract under this section includes a
151	151	subdivision of real property by any method of conveyance, including
152	152	a contract for deed, oral contract, contract of sale, or other type
153	153	of executory contract, regardless of whether the subdivision is
154	154	made by using a metes and bounds description.
155	155	SECTION 8. Subchapter C, Chapter 232, Local Government
156	156	Code, is amended by adding Sections 232.0805 and 232.0806 to read as
157	157	follows:
158	158	Sec. 232.0805. NOTICE AND OPPORTUNITY TO CURE REQUIRED
159	159	BEFORE FILING ENFORCEMENT ACTION. (a) In this section,
160	160	"subdivider" has the meaning assigned by Section 232.021.
161	161	(b) Before a civil enforcement action may be filed against a
162	162	subdivider under this subchapter, the subdivider must be notified
163	163	in writing about the general nature of the alleged violation and
164	164	given 90 days from the notification date to cure the violation.
165	165	After the 90th day after the date of the notification, the
166	166	enforcement action may proceed.
167	167	(c) This section does not apply to a civil enforcement
168	168	action if the attorney general, district attorney, or county
169	169	attorney asserts that:
170	170	(1) an alleged violation or threatened violation poses
171	171	a threat to a consumer or to the health and safety of any person; or
172	172	(2) a delay in bringing an enforcement action may
173	173	result in financial loss or increased costs to any person,
174	174	including the county.
175	175	(d) This section does not apply if an enforcement action has
176	176	previously been filed against the subdivider for the same or
177	177	another alleged violation.
178	178	(e) This section does not apply to an action filed by a
179	179	private individual.
180	180	Sec. 232.0806. SUIT BY PRIVATE PERSON IN ECONOMICALLY
181	181	DISTRESSED AREA. A person who has purchased or is purchasing a lot
182	182	in a subdivision for residential purposes that does not have water
183	183	and sewer services as required by this subchapter and is located in
184	184	an economically distressed area, as defined by Section 17.921,
185	185	Water Code, from a subdivider may bring suit in the district court
186	186	in which the property is located or in a district court in Travis
187	187	County to:
188	188	(1) declare the sale of the property void, require the
189	189	subdivider to return the purchase price of the property, and
190	190	recover from the subdivider:
191	191	(A) the market value of any permanent
192	192	improvements the person placed on the property;
193	193	(B) actual expenses incurred as a direct result
194	194	of the failure to provide adequate water and sewer facilities;
195	195	(C) court costs; and
196	196	(D) reasonable attorney's fees; or
197	197	(2) enjoin a violation or threatened violation of
198	198	Section 232.072, require the subdivider to plat or amend an
199	199	existing plat under Sections 232.011 and 232.081, and recover from
200	200	the subdivider:
201	201	(A) actual expenses incurred as a direct result
202	202	of the failure to provide adequate water and sewer facilities;
203	203	(B) court costs; and
204	204	(C) reasonable attorney's fees.
205	205	SECTION 9. Section 16.343(g), Water Code, is amended to
206	206	read as follows:
207	207	(g) Before an application for funds under Section 15.407 or
208	208	Subchapter P, Chapter 15, or Subchapter K, Chapter 17, may be
209	209	considered by the board, if the area for which the funds are
210	210	proposed to be used is located:
211	211	(1) in a municipality, the municipality must adopt the
212	212	model rules pursuant to this section;
213	213	(2) in the extraterritorial jurisdiction of a
214	214	municipality, the applicant must demonstrate that the model rules
215	215	have been adopted and are enforced in the extraterritorial
216	216	jurisdiction by either the municipality or the county; or
217	217	(3) outside the extraterritorial jurisdiction of a
218	218	municipality, the county must adopt the model rules pursuant to
219	219	this section [a political subdivision must adopt the model rules
220	220	pursuant to this section. If the applicant is a district, nonprofit
221	221	water supply corporation, or colonia, the applicant must be located
222	222	in a city or county that has adopted such rules. Applicants for
223	223	funds under Section 15.407 or Subchapter P, Chapter 15, or
224	224	Subchapter K, Chapter 17, may not receive funds under those
225	225	provisions unless the applicable political subdivision adopts and
226	226	enforces the model rules].
227	227	SECTION 10. Subchapter J, Chapter 16, Water Code, is
228	228	amended by adding Section 16.3541 to read as follows:
229	229	Sec. 16.3541. NOTICE AND OPPORTUNITY TO CURE REQUIRED
230	230	BEFORE FILING ENFORCEMENT ACTION. (a) In this section,
231	231	"subdivider" has the meaning assigned by Section 232.021, Local
232	232	Government Code.
233	233	(b) Before a civil enforcement action may be filed against a
234	234	subdivider under this subchapter, the subdivider must be notified
235	235	in writing about the general nature of the alleged violation and
236	236	given 90 days from the notification date to cure the violation.
237	237	After the 90th day after the date of the notification, the
238	238	enforcement action may proceed.
239	239	(c) This section does not apply to a civil enforcement
240	240	action if the attorney general, district attorney, or county
241	241	attorney asserts that:
242	242	(1) an alleged violation or threatened violation poses
243	243	a threat to a consumer or to the health and safety of any person; or
244	244	(2) a delay in bringing an enforcement action may
245	245	result in financial loss or increased costs to any person,
246	246	including the county.
247	247	(d) This section does not apply if an enforcement action has
248	248	previously been filed against the subdivider for the same or
249	249	another alleged violation.
250	250	SECTION 11. Section 232.021(9), Local Government Code, is
251	251	repealed.
252	252	SECTION 12. The changes in law made by this Act to Sections
253	253	232.022, 232.023, 232.033, and 232.072, Local Government Code,
254	254	apply only to a subdivision plat application submitted for approval
255	255	on or after the effective date of this Act. A subdivision plat
256	256	application submitted for approval before the effective date of
257	257	this Act is governed by the law in effect when the application was
258	258	submitted, and the former law is continued in effect for that
259	259	purpose.
260	260	SECTION 13. This Act applies only to an enforcement action
261	261	filed on or after the effective date of this Act. An enforcement
262	262	action filed before the effective date of this Act is governed by
263	263	the law as it existed when the action was filed, and the former law
264	264	is continued in effect for that purpose.
265	265	SECTION 14. This Act takes effect September 1, 2013.