By Nixon                                               S.B. No. 436
         76R4307 SMH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a disclosure required in certain offers by mail to
 1-3     purchase mineral interests.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 5, Property Code, is amended by adding
 1-6     Subchapter F to read as follows:
 1-7      SUBCHAPTER F.  REQUIREMENTS FOR CONVEYANCES OF MINERAL INTERESTS
 1-8           Sec. 5.151.  DISCLOSURE IN OFFER BY MAIL TO PURCHASE MINERAL
 1-9     INTEREST.  (a) A person who mails to the owner of a mineral
1-10     interest an offer to purchase the mineral interest and encloses an
1-11     instrument of conveyance of the interest and a draft or other
1-12     instrument providing for payment for that interest shall include in
1-13     the offer a conspicuous statement, printed in 14-point boldfaced
1-14     type or 14-point uppercase typewritten letters in substantially the
1-15     following form:
1-16           BY EXECUTING AND DELIVERING THE (TYPE OF INSTRUMENT OF
1-17           CONVEYANCE) AND ACCEPTING THE (TYPE OF INSTRUMENT
1-18           PROVIDING FOR PAYMENT FOR THE INTEREST BEING CONVEYED),
1-19           YOU ARE SELLING (PORTION OF OWNER'S INTEREST BEING
1-20           CONVEYED) OF YOUR (TYPE OF INTEREST BEING CONVEYED)
1-21           INTEREST IN (DESCRIPTION OF PROPERTY BEING CONVEYED).
1-22           (b)  A person who conveys a mineral interest as provided by
1-23     Subsection (a) may rescind the conveyance not later than the fifth
1-24     anniversary of the date the person executed the conveyance if:
 2-1                 (1)  the purchaser did not give the notice required by
 2-2     Subsection (a); and
 2-3                 (2)  the person was 65 years of age or older when the
 2-4     person executed the instrument of conveyance.
 2-5           SECTION 2.  This Act takes effect September 1, 1999, and
 2-6     applies only to an offer to purchase a mineral interest mailed on
 2-7     or after that date.  An offer to purchase a mineral interest mailed
 2-8     before that date is governed by the law in effect on the date the
 2-9     offer was mailed, and that law is continued in effect for that
2-10     purpose.
2-11           SECTION 3.  The importance of this legislation and the
2-12     crowded condition of the calendars in both houses create an
2-13     emergency and an imperative public necessity that the
2-14     constitutional rule requiring bills to be read on three several
2-15     days in each house be suspended, and this rule is hereby suspended.