83R11295 JTS-D
	By: Guillen	H.B. No. 611
	Substitute the following for H.B. No. 611:
	By:  Deshotel	C.S.H.B. No. 611

	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), and (a-4) 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.
	(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.