By: Cyrier (Senate Sponsor - Zaffirini) H.B. No. 4374
(In the Senate - Received from the House May 12, 2021;
May 12, 2021, read first time and referred to Committee on Local
Government; May 22, 2021, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 6, Nays 0;
May 22, 2021, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 4374 By: Menéndez
A BILL TO BE ENTITLED
AN ACT
relating to the use of executory contracts for the purchase of land
to be used as a residence in certain counties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 5, Property Code, is
amended by adding Section 5.0622 to read as follows:
Sec. 5.0622. ADDITIONAL APPLICABILITY: CERTAIN COUNTIES.
(a) This section applies only to a county with a population of less
than 100,000 that is located in a metropolitan statistical area as
defined by the federal Office of Management and Budget:
(1) with a population of more than 1.5 million; and
(2) adjacent to a different metropolitan statistical
area as defined by the federal Office of Management and Budget with
a population of more than 2 million.
(b) The commissioners court of a county may adopt an order
requiring an executory contract for the conveyance of land used or
to be used as a residence located in the county to be subject to this
subchapter. The order must specify a method for determining
whether the land is used or to be used as a residence.
(c) The order may not include an executory contract for the
conveyance of land:
(1) described by Section 5.062(b), (c), or (d); or
(2) that is to be used primarily for agricultural use,
as defined by Section 1-d, Article VIII, Texas Constitution, or for
farm, ranch, wildlife management, or timber production use within
the meaning of Section 1-d-1, Article VIII, Texas Constitution, and
for which no part of the land is to be used as a residence.
(d) If a tract described by Subsection (c)(2) ceases to be
used primarily for agricultural use or for farm, ranch, wildlife
management, or timber production use, or any part of the land is
used as a residence, the executory contract for the conveyance of
the land may be included in an order authorized by this section.
SECTION 2. Subchapter D, Chapter 5, Property Code, is
amended by adding Section 5.087 to read as follows:
Sec. 5.087. ADDITIONAL PROVISIONS: CERTAIN COUNTIES. (a)
This section applies only to a county adopting an order under
Section 5.0622.
(b) The commissioners court may not modify the provisions of
this subchapter except the commissioners court may provide in the
order that an executory contract to which the order applies may not
be used to purchase land for residential purposes unless the
conversion authorized by Section 5.081 is required to occur not
later than three years after the date the executory contract is
entered into.
SECTION 3. Sections 5.0622 and 5.087, Property Code, as
added by this Act, apply only to an executory contract entered into
on or after the date the commissioners court adopts an order
authorized by this Act.
SECTION 4. This Act takes effect September 1, 2021.
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