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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