BILL ANALYSIS

H.B. 697

By: Holland

Business & Industry

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Corrugated stainless steel tubing is one of several products on the market used to deliver natural gas and propane in residential, commercial, and industrial buildings. Many builders choose this tubing because it is flexible and requires significantly fewer fittings than traditional black iron pipe or copper pipe, making it easier to connect appliances. However, gas released from tubing that is punctured or improperly installed can be dangerous and cause deadly house fires if combined with high levels of electric charge caused by an event such as lightning or electrical arcing. H.B. 697 seeks to ensure that home buyers are allowed to consider the risks posed by fuel gas piping consisting of corrugated stainless steel tubing by including it, along with black iron pipe and copper pipe, among the property features disclosed in a seller's disclosure statement.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 697 amends the Property Code to include fuel gas piping consisting of either black iron pipe, copper, or corrugated stainless steel tubing in the checklist of known property features required to be disclosed in a seller's disclosure of the condition of residential real property.

H.B. 697 applies only to a transfer of property that occurs on or after the bill's effective date and provides that such a transfer occurs before such date if the contract binding the purchaser to purchase the property is executed before that date.

EFFECTIVE DATE

September 1, 2023.