74R11321 PAM-F
By Rosson, Truan, Lucio S.B. No. 336
Substitute the following for S.B. No. 336:
By Brady C.S.S.B. No. 336
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to notice and cure provisions required for a defaulting
1-3 purchaser under a contract for deed and to requirements for and
1-4 loans associated with a contract for deed transaction in certain
1-5 counties.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. The legislature finds that:
1-8 (1) the proliferation of colonias and substandard
1-9 housing developments that lack adequate infrastructure creates
1-10 serious and unacceptable health risks for the residents in these
1-11 areas;
1-12 (2) many residents building homes in these areas do
1-13 not have access to traditional financing and the assistance of a
1-14 professional builder, which promotes expansion of substandard
1-15 housing;
1-16 (3) the contract-for-deed arrangement allows
1-17 low-income persons to purchase property and build homes on the
1-18 property;
1-19 (4) statutory law in this state does not ensure that:
1-20 (A) information about the property, including
1-21 whether utility service is available, whether the property is
1-22 located in a floodplain, or whether the title to the property is
1-23 encumbered by a lien, is disclosed to the purchaser;
1-24 (B) the contract is recorded to notify
2-1 subsequent creditors of the purchaser's interest in the property;
2-2 (C) legal title to the property is transferred
2-3 to the purchaser by the seller when the purchaser has paid all
2-4 amounts due under the contract; or
2-5 (D) the purchaser's equity in the property is
2-6 protected; and
2-7 (5) a purchaser under a contract-for-deed arrangement
2-8 is faced with significant problems requiring statutory protection
2-9 because of:
2-10 (A) the inadequacy of infrastructure in areas
2-11 where this arrangement is commonly used; and
2-12 (B) the unregulated status of the
2-13 contract-for-deed arrangement.
2-14 SECTION 2. Subchapter D, Chapter 5, Property Code, is
2-15 amended to read as follows:
2-16 SUBCHAPTER D. EXECUTORY CONTRACT FOR CONVEYANCE
2-17 Sec. 5.061. AVOIDANCE OF FORFEITURE AND ACCELERATION OR OF
2-18 RESCISSION. A seller may enforce the remedy of rescission or of
2-19 <a> forfeiture <of interest> and <the> acceleration against <of the
2-20 indebtedness of> a purchaser in default under an executory
2-21 contract for conveyance of real property used or to be used as the
2-22 purchaser's residence only if the seller notifies <after notifying>
2-23 the purchaser of:
2-24 (1) the seller's intent to enforce a remedy under this
2-25 section; <the forfeiture and acceleration> and
2-26 (2) the expiration of the following periods:
2-27 (A) <(1)> if the purchaser has paid less than 10
3-1 percent of the purchase price, 15 days after the date notice is
3-2 given;
3-3 (B) <(2)> if the purchaser has paid 10 percent
3-4 or more but less than 20 percent of the purchase price, 30 days
3-5 after the date notice is given; and
3-6 (C) <(3)> if the purchaser has paid 20 percent
3-7 or more of the purchase price, 60 days after the date notice is
3-8 given.
3-9 Sec. 5.062. NOTICE. (a) Notice under Section 5.061 of this
3-10 code must be in writing. If the notice is mailed, it must be by
3-11 registered or certified mail. The notice must be conspicuous and
3-12 printed in 14-point boldface <10-point boldfaced> type or 14-point
3-13 uppercase typewritten letters, and must include on a separate page
3-14 the statement:
3-15 NOTICE
3-16 YOU ARE NOT COMPLYING WITH THE TERMS OF <LATE IN MAKING
3-17 YOUR PAYMENT UNDER> THE CONTRACT TO BUY YOUR PROPERTY
3-18 <HOME>. UNLESS YOU TAKE THE ACTION SPECIFIED IN THIS
3-19 NOTICE <MAKE THE PAYMENT> BY (date) THE SELLER HAS THE
3-20 RIGHT TO TAKE POSSESSION OF YOUR PROPERTY <HOME AND TO
3-21 KEEP ALL PAYMENTS YOU HAVE MADE TO DATE>.
3-22 (b) The notice must also:
3-23 (1) identify and explain the remedy the seller intends
3-24 to enforce;
3-25 (2) if the purchaser has failed to make a timely
3-26 payment, specify:
3-27 (A) <(1)> the delinquent amount, itemized into
4-1 principal and interest;
4-2 (B) <(2)> any additional charges claimed, such
4-3 as late charges or attorney's fees; and
4-4 (C) <(3)> the period to which the delinquency
4-5 and additional charges relate; and
4-6 (3) if the purchaser has failed to comply with a term
4-7 of the contract, identify the term violated and the action required
4-8 to cure the violation.
4-9 (c) Notice by mail is given when it is mailed to the
4-10 purchaser's residence or place of business. Notice by other
4-11 writing is given when it is delivered to the purchaser at the
4-12 purchaser's residence or place of business. The affidavit of a
4-13 person knowledgeable of the facts to the effect that notice was
4-14 given is prima facie evidence of notice in an action involving a
4-15 subsequent bona fide purchaser for value if the purchaser is not in
4-16 possession of the real property and if the stated time to avoid the
4-17 forfeiture has expired. A bona fide subsequent purchaser for value
4-18 who relies upon the affidavit under this subsection shall take
4-19 title free and clear of the contract.
4-20 Sec. 5.063. Right to Cure Default. Notwithstanding an
4-21 agreement to the contrary, a purchaser in default under an
4-22 executory contract for the conveyance of real property used or to
4-23 be used as the purchaser's residence may, at any time before
4-24 expiration of the applicable period provided by Section 5.061 of
4-25 this code, avoid the enforcement of a remedy described by that
4-26 section <forfeiture of interest and acceleration of indebtedness>
4-27 by complying with the terms of the contract up to the date of
5-1 compliance.
5-2 Sec. 5.064. Placement of Lien for Utility Service.
5-3 Notwithstanding any terms of a contract to the contrary, the
5-4 placement of a lien for the reasonable value of improvements to
5-5 residential real estate for purposes of providing utility service
5-6 to the property shall not constitute a default under the terms of
5-7 an executory contract for the purchase of the real property.
5-8 Sec. 5.065. DEFAULT. In this subchapter, "default" means
5-9 the failure to:
5-10 (1) make a timely payment; or
5-11 (2) comply with a term of an executory contract.
5-12 SECTION 3. Chapter 5, Property Code, is amended by adding
5-13 Subchapter E to read as follows:
5-14 SUBCHAPTER E. REQUIREMENTS FOR EXECUTORY CONTRACT FOR CONVEYANCE
5-15 APPLICABLE TO CERTAIN COUNTIES
5-16 Sec. 5.091. APPLICABILITY. (a) This subchapter applies
5-17 only to an executory contract that covers real property located in
5-18 a county that, as determined by the Texas Department of Housing and
5-19 Community Affairs:
5-20 (1) has a per capita income that averaged 25 percent
5-21 below the state average for the most recent three consecutive years
5-22 for which statistics are available and an unemployment rate that
5-23 averaged 25 percent above the state average for the most recent
5-24 three consecutive years for which statistics are available; and
5-25 (2) is within 200 miles of an international border.
5-26 (b) This subchapter applies only to a transaction involving
5-27 an executory contract for conveyance of real property used or to be
6-1 used as the purchaser's residence. For purposes of this
6-2 subchapter, a lot measuring five acres or less is presumed to be
6-3 residential property.
6-4 (c) This subchapter does not apply to a transaction
6-5 involving a sale of land by the Veterans' Land Board under an
6-6 executory contract.
6-7 Sec. 5.092. DETERMINATION AND NOTICE OF APPLICABILITY.
6-8 (a) The Texas Department of Housing and Community Affairs shall
6-9 annually determine the counties in which this subchapter applies.
6-10 (b) The department shall:
6-11 (1) publish in the Texas Register a list of the
6-12 counties in which this subchapter applies; and
6-13 (2) notify the county clerk of each county to which
6-14 this subchapter applies.
6-15 (c) The notice required by Subsection (b) must state that
6-16 Subchapter E, Chapter 5, Property Code, regulates executory
6-17 contract transactions involving residential property located in the
6-18 county.
6-19 (d) The department shall make its determination not later
6-20 than May 1 of each year, based on consideration of statistics
6-21 excluding the year in which the determination is made. The
6-22 determination is effective beginning June 1 following the
6-23 determination.
6-24 (e) Immediately after receiving notice from the department,
6-25 the county clerk shall publish a copy of the notice on three
6-26 separate days in a newspaper of general circulation in the county.
6-27 If no newspaper is published in the county, the clerk shall post a
7-1 copy of the notice on three separate days on a bulletin board at a
7-2 place convenient to the public in the county courthouse.
7-3 Sec. 5.093. SPANISH LANGUAGE REQUIREMENT. If the
7-4 negotiations that precede the execution of an executory contract
7-5 are conducted primarily in Spanish, the seller shall provide a copy
7-6 in Spanish of all written documents relating to the transaction,
7-7 including the contract, disclosure notice, and annual accounting
7-8 statements required by this subchapter and a notice of default
7-9 required by Subchapter D.
7-10 Sec. 5.094. SELLER'S DISCLOSURE OF PROPERTY CONDITION.
7-11 (a) Before an executory contract is signed by the purchaser, the
7-12 seller shall provide the purchaser with:
7-13 (1) a survey or plat of the real property;
7-14 (2) a legible copy of any document that describes an
7-15 encumbrance or other claim, including a restrictive covenant or
7-16 easement, that affects title to the real property; and
7-17 (3) a written notice, which must be attached to the
7-18 contract, informing the purchaser of the condition of the property
7-19 that must, at a minimum, be executed by the seller and purchaser
7-20 and read substantially similar to the following:
7-21 WARNING
7-22 IF ANY OF THE ITEMS BELOW HAVE NOT BEEN CHECKED, YOU
7-23 MAY NOT BE ABLE TO LIVE ON THE PROPERTY.
7-24 SELLER'S DISCLOSURE NOTICE
7-25 CONCERNING THE PROPERTY AT (street address or legal
7-26 description and city)
7-27 THIS DOCUMENT STATES CERTAIN APPLICABLE FACTS ABOUT THE
8-1 LAND YOU ARE CONSIDERING PURCHASING.
8-2 CHECK ALL THE ITEMS THAT ARE APPLICABLE OR TRUE:
8-3 ___ The property is in a recorded subdivision.
8-4 ___ The property has water service that provides
8-5 potable water.
8-6 ___ The property has sewer service.
8-7 ___ The property has been approved by the appropriate
8-8 municipal, county, or state agency for installation of
8-9 a septic system.
8-10 ___ The property has electric service.
8-11 ___ The property is not in a floodplain.
8-12 ___ The roads to the boundaries of the property are
8-13 paved and maintained by:
8-14 ___ the seller;
8-15 ___ the owner of the property on which the road
8-16 exists;
8-17 ___ the municipality;
8-18 ___ the county; or
8-19 ___ the state.
8-20 ___ No individual or entity other than the seller:
8-21 (1) owns the property;
8-22 (2) has a claim of ownership to the property; or
8-23 (3) has an interest in the property.
8-24 ___ No individual or entity has a lien filed against
8-25 the property.
8-26 ___ There are no back taxes owed on the property.
8-27 ___ There are no restrictive covenants, easements, or
9-1 other title exceptions or encumbrances that prohibit
9-2 construction of a house on the property.
9-3 NOTICE: SELLER ADVISES PURCHASER TO:
9-4 (1) OBTAIN A TITLE ABSTRACT OR TITLE
9-5 COMMITMENT COVERING THE PROPERTY AND HAVE THE ABSTRACT
9-6 OR COMMITMENT REVIEWED BY AN ATTORNEY BEFORE SIGNING A
9-7 CONTRACT OF THIS TYPE; AND
9-8 (2) PURCHASE AN OWNER'S POLICY OF TITLE
9-9 INSURANCE COVERING THE PROPERTY.
9-10 ____________________ ____________________
9-11 (Date) (Signature of Seller)
9-12 ____________________ ____________________
9-13 (Date) (Signature of Purchaser)
9-14 (b) If the property is not located in a recorded
9-15 subdivision, the seller shall provide the purchaser with a separate
9-16 disclosure form stating that utilities may not be available to the
9-17 property until the subdivision is recorded as required by law.
9-18 (c) If the seller advertises property for sale under an
9-19 executory contract, the advertisement must disclose information
9-20 regarding the availability of water, sewer, and electric service.
9-21 (d) The seller's failure to provide information required by
9-22 this section:
9-23 (1) is a false, misleading, or deceptive act or
9-24 practice within the meaning of Section 17.46, Business & Commerce
9-25 Code, and is actionable in a public or private suit brought under
9-26 Subchapter E, Chapter 17, Business & Commerce Code; and
9-27 (2) entitles the purchaser to cancel and rescind the
10-1 executory contract and receive a full refund of all payments made
10-2 to the seller.
10-3 (e) Subsection (d) does not limit the purchaser's remedy
10-4 against the seller for other false, misleading, or deceptive acts
10-5 or practices actionable in a suit brought under Subchapter E,
10-6 Chapter 17, Business & Commerce Code.
10-7 Sec. 5.095. SELLER'S DISCLOSURE OF FINANCING TERMS. Before
10-8 an executory contract is signed by the purchaser, the seller shall
10-9 provide to the purchaser a written statement that specifies:
10-10 (1) the purchase price of the property;
10-11 (2) the interest rate charged under the contract;
10-12 (3) the dollar amount, or an estimate of the dollar
10-13 amount if the interest rate is variable, of the interest charged
10-14 for the term of the contract;
10-15 (4) the total amount of principal and interest to be
10-16 paid under the contract;
10-17 (5) the late charge, if any, that may be assessed
10-18 under the contract; and
10-19 (6) the fact that the seller may not charge a
10-20 prepayment penalty if the purchaser elects to pay the entire amount
10-21 due under the contract before the scheduled payment date under the
10-22 contract.
10-23 Sec. 5.096. CONTRACT TERMS PROHIBITED. A seller may not
10-24 include as a term of the executory contract a provision that:
10-25 (1) imposes an additional late-payment fee that
10-26 exceeds the lesser of:
10-27 (A) five percent of the monthly payment under
11-1 the contract; or
11-2 (B) the actual administrative cost of processing
11-3 the late payment;
11-4 (2) prohibits the purchaser from pledging the
11-5 purchaser's interest in the property as security to obtain a loan
11-6 to place improvements, including utility improvements or fire
11-7 protection improvements, on the property; or
11-8 (3) imposes a prepayment penalty if the purchaser
11-9 elects to pay the entire amount due under the contract before the
11-10 scheduled payment date under the contract.
11-11 Sec. 5.097. PURCHASER'S RIGHT TO CANCEL CONTRACT WITHOUT
11-12 CAUSE. (a) In addition to other rights or remedies provided by
11-13 law, the purchaser may cancel and rescind an executory contract for
11-14 any reason not later than the 14th day after the date of the
11-15 contract.
11-16 (b) The seller shall include in immediate proximity to the
11-17 space reserved in the executory contract for the purchaser's
11-18 signature a statement printed in 14-point boldface type or 14-point
11-19 uppercase typewritten letters that reads substantially similar to
11-20 the following:
11-21 YOU, THE PURCHASER, MAY CANCEL THIS CONTRACT AT ANY
11-22 TIME DURING THE NEXT TWO WEEKS. THE DEADLINE FOR
11-23 CANCELING THE CONTRACT IS (date). THE ATTACHED NOTICE
11-24 OF CANCELLATION EXPLAINS THIS RIGHT.
11-25 (c) The seller shall provide a notice of cancellation form
11-26 to the purchaser at the time the purchaser signs the executory
11-27 contract that is printed in 14-point boldface type or 14-point
12-1 uppercase typewritten letters and that reads substantially similar
12-2 to the following:
12-3 NOTICE OF CANCELLATION
12-4 (date of contract)
12-5 YOU MAY CANCEL THE EXECUTORY CONTRACT FOR ANY
12-6 REASON WITHOUT ANY PENALTY OR OBLIGATION BY (date).
12-7 (1) YOU MUST SEND A TELEGRAM OR MAIL OR DELIVER
12-8 A SIGNED AND DATED COPY OF THIS CANCELLATION NOTICE OR
12-9 ANY OTHER WRITTEN NOTICE TO (Name of Seller) AT
12-10 (Seller's Address) BY (date).
12-11 (2) THE SELLER SHALL, NOT LATER THAN THE 10TH
12-12 DAY AFTER THE DATE THE SELLER RECEIVES YOUR
12-13 CANCELLATION NOTICE:
12-14 (A) RETURN THE EXECUTED CONTRACT AND ANY
12-15 PROPERTY EXCHANGED OR PAYMENTS MADE BY YOU UNDER THE
12-16 CONTRACT; AND
12-17 (B) CANCEL ANY SECURITY INTEREST ARISING
12-18 OUT OF THE CONTRACT.
12-19 I ACKNOWLEDGE RECEIPT OF THIS NOTICE OF CANCELLATION
12-20 FORM.
12-21 ____________________ __________________
12-22 (Date) (Purchaser's Signature)
12-23 I HEREBY CANCEL THIS CONTRACT.
12-24 ____________________ __________________
12-25 (Date) (Purchaser's Signature)
12-26 (d) The seller may not request the purchaser to sign a
12-27 waiver of receipt of the notice of cancellation form required by
13-1 this section.
13-2 Sec. 5.098. PURCHASER'S RIGHT TO PLEDGE INTEREST IN PROPERTY
13-3 ON CONTRACTS ENTERED INTO BEFORE SEPTEMBER 1, 1995. (a) On an
13-4 executory contract entered into before September 1, 1995, a
13-5 purchaser may pledge the interest in the property, which accrues
13-6 pursuant to Section 5.101, only to obtain a loan for improving the
13-7 safety of the property or any improvements on the property.
13-8 (b) Loans that improve the safety of the property and
13-9 improvements on the property include loans for:
13-10 (1) improving or connecting a residence to water
13-11 service;
13-12 (2) improving or connecting a residence to a
13-13 wastewater system;
13-14 (3) building or improving a septic system;
13-15 (4) structural improvements in the residence; and
13-16 (5) improved fire protection.
13-17 Sec. 5.099. RECORDING REQUIREMENTS. (a) Except as provided
13-18 by Subsection (b), the seller shall record the executory contract,
13-19 including the attached disclosure statement required by Section
13-20 5.094, as prescribed by Title 3.
13-21 (b) Section 12.002(c) does not apply to an executory
13-22 contract filed for record under this section.
13-23 (c) If the executory contract is terminated for any reason,
13-24 the seller shall record the instrument that terminates the
13-25 contract.
13-26 (d) The county clerk shall collect the filing fee prescribed
13-27 by Section 118.011, Local Government Code.
14-1 Sec. 5.100. ANNUAL ACCOUNTING STATEMENT. (a) The seller
14-2 shall provide the purchaser with an annual statement in January of
14-3 each year for the term of the executory contract. If the seller
14-4 mails the statement to the purchaser, the statement must be
14-5 postmarked not later than January 31.
14-6 (b) The statement must include the following information:
14-7 (1) the amount paid under the contract;
14-8 (2) the remaining amount owed under the contract; and
14-9 (3) the number of payments remaining under the
14-10 contract.
14-11 (c) If the seller fails to comply with Subsection (a), the
14-12 purchaser may:
14-13 (1) notify the seller that the purchaser has not
14-14 received the statement and will deduct 15 percent of each monthly
14-15 payment due until the statement is received; and
14-16 (2) not earlier than the 25th day after the date the
14-17 purchaser provides the seller notice under this subsection, deduct
14-18 15 percent of each monthly payment due until the statement is
14-19 received by the purchaser.
14-20 (d) A purchaser who makes a deduction under Subsection (c)
14-21 is not required to reimburse the seller for the amount deducted.
14-22 Sec. 5.101. EQUITY PROTECTION; SALE OF PROPERTY. (a) If a
14-23 purchaser defaults after the purchaser has paid 40 percent or more
14-24 of the amount due or the equivalent of 48 monthly payments under
14-25 the executory contract, the seller is granted the power to sell,
14-26 through a trustee designated by the seller, the purchaser's
14-27 interest in the property as provided by this section. The seller
15-1 may not enforce the remedy of rescission or of forfeiture and
15-2 acceleration.
15-3 (b) The seller shall notify a purchaser of a default under
15-4 the contract and allow the purchaser at least 60 days after the
15-5 date notice is given to cure the default. The notice must be
15-6 provided as prescribed by Section 5.062 except that the notice must
15-7 substitute the following statement:
15-8 NOTICE
15-9 YOU ARE NOT COMPLYING WITH THE TERMS OF THE CONTRACT TO
15-10 BUY YOUR PROPERTY. UNLESS YOU TAKE THE ACTION
15-11 SPECIFIED IN THIS NOTICE BY (date) A TRUSTEE DESIGNATED
15-12 BY THE SELLER HAS THE RIGHT TO SELL YOUR PROPERTY AT A
15-13 PUBLIC AUCTION.
15-14 (c) The trustee or a substitute trustee designated by the
15-15 seller must post, file, and serve a notice of sale and the county
15-16 clerk shall record and maintain the notice of sale as prescribed by
15-17 Section 51.002. A notice of sale is not valid unless it is given
15-18 after the period to cure has expired.
15-19 (d) The trustee or a substitute trustee designated by the
15-20 seller must conduct the sale as prescribed by Section 51.002. The
15-21 seller must convey to a purchaser at a sale conducted under this
15-22 section fee simple title to the real property.
15-23 (e) The remaining balance of the amount due under the
15-24 executory contract is the debt for purposes of a sale under this
15-25 section. If the proceeds of the sale exceed the debt amount, the
15-26 seller shall disburse the excess funds to the purchaser under the
15-27 executory contract. If the proceeds of the sale are insufficient
16-1 to extinguish the debt amount, the seller's right to recover the
16-2 resulting deficiency is subject to Sections 51.003, 51.004, and
16-3 51.005 unless a provision of the executory contract releases the
16-4 purchaser under the contract from liability.
16-5 (f) The affidavit of a person knowledgeable of the facts
16-6 that states that the notice was given and the sale was conducted as
16-7 provided by this section is prima facie evidence of those facts in
16-8 an action involving a bona fide purchaser at the sale or a
16-9 subsequent bona fide purchaser for value if the purchaser under the
16-10 executory contract is not in possession of the property and if the
16-11 period to cure the default has expired. A bona fide purchaser for
16-12 value who relies on an affidavit under this subsection acquires
16-13 title to the property free and clear of the executory contract.
16-14 (g) If a purchaser defaults before the purchaser has paid 40
16-15 percent of the amount due or the equivalent of 48 monthly payments
16-16 under the executory contract, the seller may enforce the remedy of
16-17 rescission or of forfeiture and acceleration of the indebtedness if
16-18 the seller complies with the notice requirements of Sections 5.061
16-19 and 5.062.
16-20 Sec. 5.102. TITLE TRANSFER. (a) The seller shall transfer
16-21 recorded, legal title of the property covered by the executory
16-22 contract to the purchaser not later than the 30th day after the
16-23 date the seller receives the purchaser's final payment due under
16-24 the contract.
16-25 (b) A seller who violates Subsection (a) is subject to a
16-26 penalty of:
16-27 (1) $250 a day for each day the seller fails to
17-1 transfer the title to the purchaser during the period that begins
17-2 the 31st day and ends the 90th day after the date the seller
17-3 receives the purchaser's final payment due under the contract; and
17-4 (2) $500 a day for each day the seller fails to
17-5 transfer title to the purchaser after the 90th day after the date
17-6 the seller receives the purchaser's final payment due under the
17-7 contract.
17-8 (c) In this section, "seller" includes a successor,
17-9 assignee, personal representative, executor, or administrator of
17-10 the seller.
17-11 Sec. 5.103. LIABILITY FOR DISCLOSURES. For purposes of this
17-12 subchapter, a disclosure required by this subchapter that is made
17-13 by a seller's agent is a disclosure made by the seller.
17-14 SECTION 4. Section 2306.092, Government Code, is amended to
17-15 read as follows:
17-16 Sec. 2306.092. Duties. The department, through the
17-17 community affairs division, shall:
17-18 (1) maintain communication with local governments and
17-19 act as an advocate for local governments at the state and federal
17-20 levels;
17-21 (2) assist local governments with advisory and
17-22 technical services;
17-23 (3) provide financial aid to local governments and
17-24 combinations of local governments for programs that are authorized
17-25 to receive assistance;
17-26 (4) provide information about and referrals for state
17-27 and federal programs and services that affect local governments;
18-1 (5) administer, conduct, or jointly sponsor
18-2 educational and training programs for local government officials;
18-3 (6) conduct research on problems of general concern to
18-4 local governments;
18-5 (7) collect, publish, and distribute information
18-6 useful to local governments, including information on:
18-7 (A) local government finances and employment;
18-8 (B) housing;
18-9 (C) population characteristics; and
18-10 (D) land-use patterns;
18-11 (8) encourage cooperation among local governments as
18-12 appropriate;
18-13 (9) advise and inform the governor and the legislature
18-14 about the affairs of local governments and recommend necessary
18-15 action;
18-16 (10) assist the governor in coordinating federal and
18-17 state activities affecting local governments;
18-18 (11) administer, as appropriate:
18-19 (A) state responsibilities for programs created
18-20 under the federal Economic Opportunity Act of 1964 (42 U.S.C.
18-21 Section 2701 et seq.);
18-22 (B) programs assigned to the department under
18-23 the Omnibus Budget Reconciliation Act of 1981 (Pub.L. No. 97-35);
18-24 and
18-25 (C) other federal acts creating economic
18-26 opportunity programs assigned to the department;
18-27 (12) develop a consumer education program to educate
19-1 consumers on executory contract transactions for conveyance of real
19-2 property used or to be used as the consumer's residence;
19-3 (13) adopt rules that are necessary and proper to
19-4 carry out programs and responsibilities assigned by the legislature
19-5 or the governor; and
19-6 (14) <(13)> perform other duties relating to local
19-7 government that are assigned by the legislature or the governor.
19-8 SECTION 5. The change in law made by Section 2 of this Act
19-9 applies to enforcement, cancellation, or rescission of executory
19-10 contracts on which the purchaser defaults on or after the effective
19-11 date of this Act regardless of when the contract was entered. A
19-12 purchaser who is in default before the effective date of this Act
19-13 is covered by the law in effect when the default occurred, and the
19-14 former law is continued in effect for that purpose.
19-15 SECTION 6. This Act takes effect September 1, 1995, except
19-16 that:
19-17 (1) Subchapter E, Chapter 5, Property Code, as added
19-18 by this Act, applies in a county beginning on a date designated by
19-19 the Texas Department of Housing and Community Affairs, which date
19-20 must be at least 30 days after the date on which notice is given to
19-21 the county clerk under that subchapter, but not later than November
19-22 1, 1995; and
19-23 (2) the Texas Department of Housing and Community
19-24 Affairs shall act as soon as practicable to make the initial
19-25 determinations under Subchapter E, Chapter 5, Property Code, as
19-26 added by this Act, and shall publish and give notice of those
19-27 determinations not later than October 1, 1995.
20-1 SECTION 7. The importance of this legislation and the
20-2 crowded condition of the calendars in both houses create an
20-3 emergency and an imperative public necessity that the
20-4 constitutional rule requiring bills to be read on three several
20-5 days in each house be suspended, and this rule is hereby suspended.