| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the regulation of subdivisions in counties, including |
|
|
certain border and economically distressed counties. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 232.0031, Local Government Code, is |
|
|
amended to read as follows: |
|
|
Sec. 232.0031. STANDARD FOR ROADS IN SUBDIVISION. A county |
|
|
may not impose under Section 232.003 a higher standard for streets |
|
|
or roads in a subdivision than the county imposes on itself for the |
|
|
construction of new streets or roads with a similar type and amount |
|
|
of traffic. |
|
|
SECTION 2. Section 232.022(d), Local Government Code, is |
|
|
amended to read as follows: |
|
|
(d) This subchapter does not apply if all [each] of the lots |
|
|
of the subdivision are more than [is] 10 [or more] acres. |
|
|
SECTION 3. Section 232.023, Local Government Code, is |
|
|
amended by amending Subsection (a) and adding Subsection (a-1) to |
|
|
read as follows: |
|
|
(a) A subdivider of land must have a plat of the subdivision |
|
|
prepared if at least one of the lots of the subdivision is five |
|
|
acres or less. A commissioners court by order may require each |
|
|
subdivider of land to prepare a plat if at least one of the lots of a |
|
|
subdivision is more than five acres but not more than 10 acres. |
|
|
(a-1) A subdivision of a tract under this section |
|
|
[subsection] includes a subdivision of real property by any method |
|
|
of conveyance, including a contract for deed, oral contract, |
|
|
contract of sale, or other type of executory contract, regardless |
|
|
of whether the subdivision is made by using a metes and bounds |
|
|
description. |
|
|
SECTION 4. Section 232.033, Local Government Code, is |
|
|
amended by amending Subsections (a) and (h) and adding Subsections |
|
|
(a-1), (a-2), (a-3), (a-4), and (a-5) to read as follows: |
|
|
(a) Brochures, publications, [and] advertising of any form, |
|
|
and earnest money contracts relating to [subdivided] land required |
|
|
to be platted under this subchapter: |
|
|
(1) may not contain any misrepresentation; [and] |
|
|
(2) except for a for-sale sign posted on the property |
|
|
that is no larger than three feet by three feet, must accurately |
|
|
describe the availability of water and sewer service facilities and |
|
|
electric and gas utilities; and |
|
|
(3) if a plat for the land has not been finally |
|
|
approved and recorded, must include a notice that: |
|
|
(A) subject to Subsection (a-1), a contract for |
|
|
the sale of any portion of the land may not be entered into until the |
|
|
land receives final plat approval under Section 232.024; and |
|
|
(B) the land may not be possessed or occupied |
|
|
until: |
|
|
(i) the land receives final plat approval |
|
|
under Section 232.024; and |
|
|
(ii) all water and sewer service facilities |
|
|
for the lot are connected or installed in compliance with the model |
|
|
rules adopted under Section 16.343, Water Code. |
|
|
(a-1) This subsection applies in addition to other |
|
|
applicable law and prevails to the extent of a conflict with that |
|
|
other law. This subsection applies only to a person who is a seller |
|
|
or subdivider and who is a licensed, registered, or otherwise |
|
|
credentialed residential mortgage loan originator under applicable |
|
|
state law, federal law, and the Nationwide Mortgage Licensing |
|
|
System and Registry. A person may, before a plat has been finally |
|
|
approved and recorded for the land: |
|
|
(1) enter into an earnest money contract with a |
|
|
potential purchaser and accept payment under the contract in an |
|
|
amount of $250 or less; and |
|
|
(2) advertise in accordance with this section. |
|
|
(a-2) An earnest money contract entered into under |
|
|
Subsection (a-1) is void if the plat for the land has not been |
|
|
finally approved and recorded before the 91st day after the date the |
|
|
earnest money contract is signed by the potential purchaser, unless |
|
|
the potential purchaser agrees in writing to extend the period for |
|
|
plat approval and recording for an additional 90-day period. Only |
|
|
one extension may be granted under this subsection. |
|
|
(a-3) If an earnest money contract is void under Subsection |
|
|
(a-2), the seller shall refund all earnest money paid to the |
|
|
potential purchaser not later than the 30th day after the date the |
|
|
earnest money contract becomes void under Subsection (a-2). If the |
|
|
seller fails to refund the earnest money to the potential purchaser |
|
|
in violation of this subsection, the potential purchaser, in a suit |
|
|
to recover the earnest money, may recover an amount equal to three |
|
|
times the amount of the earnest money required to be refunded, plus |
|
|
reasonable attorney's fees. |
|
|
(a-4) Before entering into an earnest money contract under |
|
|
Subsection (a-1), a person must provide written notice to the |
|
|
attorney general and to the local government responsible for |
|
|
approving the plat. The notice must include: |
|
|
(1) a statement of intent to enter into an earnest |
|
|
money contract under Subsection (a-1); |
|
|
(2) a legal description of the land to be included in |
|
|
the subdivision; |
|
|
(3) each county in which all or part of the subdivision |
|
|
is located; and |
|
|
(4) the number of proposed individual lots to be |
|
|
included in the subdivision. |
|
|
(a-5) The attorney general may adopt rules regarding the |
|
|
notice to be provided under Subsection (a-4). |
|
|
(h) A person who is a seller of lots for which a plat is |
|
|
required under this subchapter [in a subdivision], or a subdivider |
|
|
or an agent of a seller or subdivider, commits an offense if the |
|
|
person knowingly authorizes or assists in the publication, |
|
|
advertising, distribution, or circulation of any statement or |
|
|
representation that the person knows is false concerning any |
|
|
[subdivided] land offered for sale or lease. An offense under this |
|
|
section is a Class A misdemeanor. |
|
|
SECTION 5. Subchapter B, Chapter 232, Local Government |
|
|
Code, is amended by adding Section 232.0375 to read as follows: |
|
|
Sec. 232.0375. NOTICE AND OPPORTUNITY TO CURE REQUIRED |
|
|
BEFORE FILING ENFORCEMENT ACTION. (a) Before a civil enforcement |
|
|
action may be filed against a subdivider under this subchapter, the |
|
|
subdivider must be notified in writing about the general nature of |
|
|
the alleged violation and given 90 days from the notification date |
|
|
to cure the violation. After the 90th day after the date of the |
|
|
notification, the enforcement action may proceed. |
|
|
(b) This section does not apply to a civil enforcement |
|
|
action if the attorney general, district attorney, or county |
|
|
attorney asserts that: |
|
|
(1) an alleged violation or threatened violation poses |
|
|
a threat to a consumer or to the health and safety of any person; or |
|
|
(2) a delay in bringing an enforcement action may |
|
|
result in financial loss or increased costs to any person, |
|
|
including the county. |
|
|
(c) This section does not apply if an enforcement action has |
|
|
previously been filed against the subdivider for the same or |
|
|
another alleged violation. |
|
|
(d) This section does not apply to an action filed by a |
|
|
private individual. |
|
|
SECTION 6. Subchapter B, Chapter 232, Local Government |
|
|
Code, is amended by adding Section 232.045 to read as follows: |
|
|
Sec. 232.045. EARNEST MONEY CONTRACTS. (a) An earnest |
|
|
money contract entered into under Section 232.033(a-1) must contain |
|
|
the following statement: |
|
|
"NOTICE: THIS IS AN EARNEST MONEY CONTRACT ONLY. THE MAXIMUM |
|
|
AMOUNT THAT THE SELLER MAY COLLECT UNDER THIS CONTRACT IS $250. THE |
|
|
SELLER MAY NOT DEMAND ANY ADDITIONAL PAYMENT UNTIL A PLAT OF THE |
|
|
SUBDIVISION HAS BEEN APPROVED." |
|
|
(b) An earnest money contract entered into under Section |
|
|
232.033(a-1) must contain the notice required by Section 232.033. |
|
|
SECTION 7. Section 232.072, Local Government Code, is |
|
|
amended by amending Subsection (a) and adding Subsection (a-1) to |
|
|
read as follows: |
|
|
(a) The owner of a tract of land that divides the tract in |
|
|
any manner that creates lots of five acres or less intended for |
|
|
residential purposes must have a plat of the subdivision prepared. |
|
|
A commissioners court by order may require each subdivider of land |
|
|
to prepare a plat if at least one of the lots of a subdivision is |
|
|
more than five acres but not more than 10 acres. |
|
|
(a-1) A subdivision of a tract under this section includes a |
|
|
subdivision of real property by any method of conveyance, including |
|
|
a contract for deed, oral contract, contract of sale, or other type |
|
|
of executory contract, regardless of whether the subdivision is |
|
|
made by using a metes and bounds description. |
|
|
SECTION 8. Subchapter C, Chapter 232, Local Government |
|
|
Code, is amended by adding Sections 232.0805 and 232.0806 to read as |
|
|
follows: |
|
|
Sec. 232.0805. NOTICE AND OPPORTUNITY TO CURE REQUIRED |
|
|
BEFORE FILING ENFORCEMENT ACTION. (a) In this section, |
|
|
"subdivider" has the meaning assigned by Section 232.021. |
|
|
(b) Before a civil enforcement action may be filed against a |
|
|
subdivider under this subchapter, the subdivider must be notified |
|
|
in writing about the general nature of the alleged violation and |
|
|
given 90 days from the notification date to cure the violation. |
|
|
After the 90th day after the date of the notification, the |
|
|
enforcement action may proceed. |
|
|
(c) This section does not apply to a civil enforcement |
|
|
action if the attorney general, district attorney, or county |
|
|
attorney asserts that: |
|
|
(1) an alleged violation or threatened violation poses |
|
|
a threat to a consumer or to the health and safety of any person; or |
|
|
(2) a delay in bringing an enforcement action may |
|
|
result in financial loss or increased costs to any person, |
|
|
including the county. |
|
|
(d) This section does not apply if an enforcement action has |
|
|
previously been filed against the subdivider for the same or |
|
|
another alleged violation. |
|
|
(e) This section does not apply to an action filed by a |
|
|
private individual. |
|
|
Sec. 232.0806. SUIT BY PRIVATE PERSON IN ECONOMICALLY |
|
|
DISTRESSED AREA. A person who has purchased or is purchasing a lot |
|
|
in a subdivision for residential purposes that does not have water |
|
|
and sewer services as required by this subchapter and is located in |
|
|
an economically distressed area, as defined by Section 17.921, |
|
|
Water Code, from a subdivider may bring suit in the district court |
|
|
in which the property is located or in a district court in Travis |
|
|
County to: |
|
|
(1) declare the sale of the property void, require the |
|
|
subdivider to return the purchase price of the property, and |
|
|
recover from the subdivider: |
|
|
(A) the market value of any permanent |
|
|
improvements the person placed on the property; |
|
|
(B) actual expenses incurred as a direct result |
|
|
of the failure to provide adequate water and sewer facilities; |
|
|
(C) court costs; and |
|
|
(D) reasonable attorney's fees; or |
|
|
(2) enjoin a violation or threatened violation of |
|
|
Section 232.072, require the subdivider to plat or amend an |
|
|
existing plat under Sections 232.011 and 232.081, and recover from |
|
|
the subdivider: |
|
|
(A) actual expenses incurred as a direct result |
|
|
of the failure to provide adequate water and sewer facilities; |
|
|
(B) court costs; and |
|
|
(C) reasonable attorney's fees. |
|
|
SECTION 9. Section 16.343(g), Water Code, is amended to |
|
|
read as follows: |
|
|
(g) Before an application for funds under Section 15.407 or |
|
|
Subchapter P, Chapter 15, or Subchapter K, Chapter 17, may be |
|
|
considered by the board, if the area for which the funds are |
|
|
proposed to be used is located: |
|
|
(1) in a municipality, the municipality must adopt the |
|
|
model rules pursuant to this section; |
|
|
(2) in the extraterritorial jurisdiction of a |
|
|
municipality, the applicant must demonstrate that the model rules |
|
|
have been adopted and are enforced in the extraterritorial |
|
|
jurisdiction by either the municipality or the county; or |
|
|
(3) outside the extraterritorial jurisdiction of a |
|
|
municipality, the county must adopt the model rules pursuant to |
|
|
this section [a political subdivision must adopt the model rules
|
|
|
pursuant to this section. If the applicant is a district, nonprofit
|
|
|
water supply corporation, or colonia, the applicant must be located
|
|
|
in a city or county that has adopted such rules. Applicants for
|
|
|
funds under Section 15.407 or Subchapter P, Chapter 15, or
|
|
|
Subchapter K, Chapter 17, may not receive funds under those
|
|
|
provisions unless the applicable political subdivision adopts and
|
|
|
enforces the model rules]. |
|
|
SECTION 10. Subchapter J, Chapter 16, Water Code, is |
|
|
amended by adding Section 16.3541 to read as follows: |
|
|
Sec. 16.3541. NOTICE AND OPPORTUNITY TO CURE REQUIRED |
|
|
BEFORE FILING ENFORCEMENT ACTION. (a) In this section, |
|
|
"subdivider" has the meaning assigned by Section 232.021, Local |
|
|
Government Code. |
|
|
(b) Before a civil enforcement action may be filed against a |
|
|
subdivider under this subchapter, the subdivider must be notified |
|
|
in writing about the general nature of the alleged violation and |
|
|
given 90 days from the notification date to cure the violation. |
|
|
After the 90th day after the date of the notification, the |
|
|
enforcement action may proceed. |
|
|
(c) This section does not apply to a civil enforcement |
|
|
action if the attorney general, district attorney, or county |
|
|
attorney asserts that: |
|
|
(1) an alleged violation or threatened violation poses |
|
|
a threat to a consumer or to the health and safety of any person; or |
|
|
(2) a delay in bringing an enforcement action may |
|
|
result in financial loss or increased costs to any person, |
|
|
including the county. |
|
|
(d) This section does not apply if an enforcement action has |
|
|
previously been filed against the subdivider for the same or |
|
|
another alleged violation. |
|
|
SECTION 11. Section 232.021(9), Local Government Code, is |
|
|
repealed. |
|
|
SECTION 12. The changes in law made by this Act to Sections |
|
|
232.022, 232.023, 232.033, and 232.072, Local Government Code, |
|
|
apply only to a subdivision plat application submitted for approval |
|
|
on or after the effective date of this Act. A subdivision plat |
|
|
application submitted for approval before the effective date of |
|
|
this Act is governed by the law in effect when the application was |
|
|
submitted, and the former law is continued in effect for that |
|
|
purpose. |
|
|
SECTION 13. This Act applies only to an enforcement action |
|
|
filed on or after the effective date of this Act. An enforcement |
|
|
action filed before the effective date of this Act is governed by |
|
|
the law as it existed when the action was filed, and the former law |
|
|
is continued in effect for that purpose. |
|
|
SECTION 14. This Act takes effect September 1, 2013. |